budget | The Contracting Education Academy

February 17, 2012 By AMK

President requests ‘more disciplined’ $613 billion Defense budget

President Obama’s defense budget of $613.9 billion for fiscal 2013 reflects the downsizing of America’s wars abroad and the size of its military, as well as its plans to increase and entrench smaller counter terrorism, special operations and high-tech capabilities globally.

The cut — a reduction of $40 billion, or six percent, from current year spending — includes a 20 percent slash in Afghanistan war spending, increasing weaponry intended for Asian-Pacific security, while deferring legacy weapons purchases and personnel costs into future years.

“We are redoubling our efforts to make better use of the taxpayer’s defense dollar,” Defense Secretary Leon Panetta said, in a statement released with budget documents at the Pentagon on Monday. Panetta is not expected to appear Monday, going instead to three hearings scheduled before Congress this week.

The White House wants $525.4 billion for the regular defense budget and $88.5 billion for the separate war account. The war request includes $85.6 billion for Afghanistan, which is down from $105 billion in 2012, and $2.5 billion for Iraq. Most of the decline in Afghan war spending reflects the operational savings from pulling out the remaining 23,000 surge forces by September.

DOD also requests $178.8 billion for acquisitions, or $109.1 billion for procurement and $67.9 billion for research and development, a crucial account for the nervous defense industry.

A greater total spending cut is forecast for 2014, appearing to come entirely from war accounts. But the Pentagon forecasts its base spending will increase by roughly $10 billion in each of the following four years after 2013. That’s a 0.3 percent decrease in spending for the next five years.

There were no surprises in the increased budgets for U.S. priority accounts, include special operations forces, at $10.4 billion next year, as well as drones, cybersecurity, and missile defense. DOD slashed $15 billion from the still-breathing Joint Strike Fighter’s development, due to forced delays in planned purchases. The Army’s search for a next generation ground combat vehicle and Navy shipbuilding also were cut.

Cutting 72,000 soldiers, 20,000 Marines and thousands more sailors and airmen accounts for $50 billion savings over five years.

The Pentagon claims $60 billion of its total savings next year will come from “efficiencies”, an ongoing DOD effort to trim its own expenses and waste that watchdogs have complained was hard to track and verify.

— by Kevin Baron, National Journal, February 13, 2012, at http://www.govexec.com/defense/2012/02/president-requests-more-disciplined-613-billion-defense-budget/41179/.

February 16, 2012 By AMK

Budget requests, agency by agency

in spending by a wide margin will be absorbed by the Justice Department, where the president is proposing a 33.4 percent cut, from $26.9 billion to $17.9 billion. The next-largest cut goes to the Health and Human Services Department, which would see an 8.8 percent reduction in total discretionary authority.

View our chart below to see how the major agencies fared in Obama’s proposal. We looked at total discretionary authority for each agency.

Discretionary budget authority (billions of dollars)
Departments	2011 Actual	2013 Request	Percent Change
Agriculture	23.2	23	-0.9%
Commerce	5.6	8	41.9%
Defense (DoD — Excluding Overseas Contingency Operations)	528.3	525.4	-0.5%
Education	68.3	69.8	2.2%
Energy (Excluding National Nuclear Security Administration)	15.2	15.6	2.8%
Health and Human Services	76.5	69.7	-8.8%
Homeland Security	41.9	39.5	-5.8%
Housing and Urban Development	37.1	35.3	-4.8%
Interior	11.7	11.4	-2.7%
Justice	26.9	17.9	-33.4%
Labor	12.5	12	-4%
State and Other International Programs (Excluding Non-Security Funding)	48.8	54.8	12.3%
Transportation	13.7	13.8	0.6%
Treasury	13.5	12.6	-7%
Veterans Affairs	56.4	61	8.1%

Major Agencies
Corps of Engineers — Civil Works	4.9	4.7	-4.3%
Environmental Protection Agency	8.7	8.3	-3.90%
National Aeronautics and Space Administration	18.4	17.7	-4%
National Science Foundation	6.8	7.4	8.3%
Small Business Administration	0.7	0.9	30.2%
Social Security Administration	10.7	11.0	2.8%
Corporation for National and Community Service	1.1	1.1	-1%

— by Andrew Lapin and Caitlin Fairchild, Government Executive, February 13, 2012 at http://www.govexec.com/management/2012/02/discretionary-budget-authority-billions-dollars/41189/.

February 16, 2012 By AMK

Army to double its specialized acquisition workforce

Despite looming cuts to its budget and troop levels, the Army will continue to grow in some areas, including contracting, according to a Defense Department release.

Officials from the Army Acquisition Support Center said the number of soldiers in the contracting military occupational specialty, which is open to officers and enlisted soldiers, will double by the end of 2013.

Those who are selected join the Army Acquisition Corps, which has different areas that need officers, noncommissioned officers and enlisted soldiers. Once selected and assigned, soldiers specializing in contracting deploy with units and help relay soldiers’ needs in the field to commanders and up the chain of command.

“You are the procurement guy for the guys in the field,” said Army Acquisition Support Center’s Maj. Anthony Maneri. “You also are a business advisor to the battalion or brigade or division commander.”

That means that although no unit deploys with every last item it may need, the contract specialists work in teams of four – a major, a captain and two non-commissioned officers – to get the soldiers whatever is necessary, whether it’s more water or new technology.

According to the DOD release, it was contracting specialists who helped deployed troops quickly get improvised explosive device jammers back in 2003 and 2004. It was a catalyst for the trade, Maneri noted.

“In the early days, commanders weren’t sure what we could do for them,” he said. “After a few successes, warfighters started understanding the other aspects that we could offer to help them do their jobs.”

About the Author: Amber Corrin is a staff writer covering defense and national security for Federal Computer Week. This article appeared Feb. 9, 2012 at http://fcw.com/articles/2012/02/09/army-growing-contractor-specialty-workforce.aspx.

January 16, 2012 By AMK

Defense technology to grow despite Pentagon budget cuts

As the Defense Department slashes its budget by at least $487 billion in 10 years, technology investment is one of the few areas that will continue to grow, according to a new military strategy that President Obama and Pentagon officials released Thursday.

The increased spending will focus on cyberspace, intelligence systems, space and science research, according to the review.

President Obama told a Pentagon press briefing that Defense has to develop “smart, strategic priorities.” Specifically, he called for enhanced intelligence, surveillance and reconnaissance systems.

In his written introduction to the review, Obama said the new strategy will “ensure that our military is agile, flexible and ready for the full range of contingencies.” He added this includes investments to ensure that the United States can prevail in all domains of military operations, including cyberspace.

Defense Secretary Leon Panetta said broad cuts in the new Defense budget, due for release in late January, do not apply to investments in technology, including unmanned systems, space capabilities and “particularly cyberspace capabilities.”

Defense budgeted $3.2 billion for cybersecurity in 2012. The Pentagon, Panetta said, must continue to invest “in new capabilities to maintain a decisive edge.”

He declined to provide specific funding figures for any military programs, deferring that action until release of the 2013 Defense budget. But, Panetta said, the strategy will drive the structure of the budget.

Deputy Secretary of Defense Ashton B. Carter said the new strategy envisions budget increases in “all aspects of cyber,” along with science and technology research. Defense cannot abandon that research, Carter said, as it would be akin to “eating our seed corn.”

Highlighting the importance of networks and space systems in the future, the strategy document said: “Modern armed forces cannot conduct high-temp, effective operations without reliable information and communication networks and assured access to cyberspace and space. Today space systems and their supporting infrastructure face a range of threats that may degrade, disrupt or destroy assets. Accordingly, DoD will continue to work with domestic and international allies and partners and invest in advanced capabilities to defend its networks, operational capability and resiliency in cyberspace and space.”

Trey Hodgkins, vice president of national security and procurement policy at TechAmerica, an industry trade group, said the new military strategy reflects an increasing awareness within Defense that technology, including information technology, sits at the core of multiple missions, and the Pentagon has to continue to beef up investments in this area.

Obama pointed out that the new military strategy shifts the Pentagon focus from Europe and the Mideast to the Asia-Pacifc region, including a beefed-up U.S. force presence in Australia that he announced in November 2011.

“As we end today’s wars, we will focus on a broader range of challenges and opportunities, including the security and prosperity of the Asia-Pacific [region],” Obama wrote in his introduction to the review. This shift includes dealing with the growth of the military power of China, which should be balanced by greater U.S. military presence in the region, the document said.

Hodgkins said this increased focus on the Asia-Pacific region will boost the importance of the U.S. Pacific Command headquartered in Honolulu and will require greater Defense network capacity in the region.

– by Bob Brewin – NextGov – 01/05/12 at http://www.nextgov.com/nextgov/ng_20120105_8406.php?oref=rss?zone=NGtoday

January 3, 2012 By AMK

Contractors get insourcing warning under defense bill

As Defense Department officials consider insourcing work, Congress wants them to notify contractors of their decision to bring the work inhouse.

The fiscal 2012 National Defense Authorization Act includes a provision requiring DOD to notify companies before insourcing particular jobs. Congress wants officials to give contractors a “timely notification” of their decision.

One expert said the timely notification is a step forward in informing companies that they are losing their contracts. But the provision’s usefulness depends on DOD’s interpretation of the provision.

“How ‘timely’ is defined determines whether this is of any value or not,” said Robert Burton, former deputy OFPP administrator and now partner at the Venable law firm.

Having worked with small contracting companies that lose their business because of insourcing, a timely notification may be a six-month heads-up. Still he said the small businesses often struggle to stay afloat after a decision to insource work.

For the best option, Burton said government officials should talk with companies about the effect of insourcing on their future. Officials should then consider it as a factor in their decision.

Also in the bill, the provision would add slightly to the blurry term of “critical function.”

A critical function is a duty “necessary to maintain sufficient government expertise and technical capabilities” and “entails operational risk associated with contractor performance.”

The Office of Federal Procurement Policy this year defined a critical function as work that’s “necessary to the agency being able to effectively perform and maintain control of its mission and operations.”

Congress also is telling defense officials to give special consideration in taking back these critical functions, as well as acquisition workforce functions and even work that DOD employees have done at some point during the past decade.

Officials would need to test whether to insource certain functions based on guidance in a memo on comparing the estimated costs of civilian, military and contractor support. Officials would also have to decide if insourcing a function would be either 10 percent lower or $10 million less expensive than the contractor’s cost. The choice would not apply to inherently governmental functions, which should only be done by federal employees.

The authorization bill cleared Congress Dec. 15, and now awaits President Barack Obama’s signature or his veto.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Dec. 22, 2011 at http://washingtontechnology.com/articles/2011/12/22/ndaa-timely-notification-insourcing.aspx.

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