CBO | The Contracting Education Academy

February 28, 2017 By AMK

Navy’s 355-ship fleet goal would cost $25 billion per year

A new analysis from the Congressional Budget Office (CBO) finds the Navy would have to spend $25 billion a year for 30 years to reach its stated goal of a 355-ship fleet, $6 billion a year more than if it stayed on its current track for a 308-ship fleet.

The report, released this month, assessed the costs of the service’s 2017 30-year shipbuilding plan, finding the Navy would need to spend $566 billion to build a fleet of 308 ships, up from the current 274. But the service can expect to spend much more to reach the new goal of 355 ships, announced in December, the report found.

While the full cost implications of the 355-ship fleet will be addressed in a future CBO report, the study laid out broad estimates for the ambitious shipbuilding goal.

The Navy could reach a fleet of 353 ships by 2046 by increasing ship production, CBO staff found. Building 321 ships over 30 years would cost the service $25 billion a year, compared with $19 billion a year if the Navy stayed on its current path.

Keep reading this article at: https://www.dodbuzz.com/2017/02/25/navys-355-ship-fleet-25-billion-per-year/

March 27, 2015 By AMK

Even CBO is stumped on the size of the contractor workforce

How many contractor employees does the federal government rely on, at what cost per person, and how does that compare with the cost of assigning the same task to a full-time hire?

When asked by Rep. Chris Van Hollen, D-Md., ranking member of the House Budget Committee, the Congressional Budget Office took a shot but left the $64,000 question unresolved.

“Regrettably, CBO is unaware of any comprehensive information about the size of the federal government’s contracted workforce,” the nonpartisan analysts wrote in response. “However, using a database of federal contracts, CBO determined that federal agencies spent over $500 billion for contracted products and services in 2012.”

Spending on contracting grew between 2000 and 2012 more quickly than inflation and as a percentage of total federal spending, the response said. The fastest-growing category in dollars was contracts for professional, administrative and management services, CBO wrote—the top-expanding category being medical services.

Keep reading this article at: http://www.govexec.com/contracting/2015/03/even-cbo-stumped-size-contractor-workforce/107436/

November 18, 2014 By AMK

Pentagon seeks $60 billion increase for FY16 budget

As the White House and Pentagon pass drafts of the fiscal 2016 defense budget back and forth before submitting it to Congress early next year, the base budget request possibly could exceed Congressionally-mandated spending caps by as much as $60 billion, according to a former defense official with knowledge of the discussions.

Administration and defense officials have said for months that the 2011 Budget Control Act (BCA), which limits how much the Pentagon can spend, wouldn’t fully constrain the 2016 request. But a source with knowledge of a meeting between President Barack Obama and the Joint Chiefs of Staff said the chiefs have pushed for an increase of $60 billion over the $535 billion cap for defense, with another $10 billion for Department of Energy programs.

While the number might appear high, Pentagon and administration plans to push past the cap are no surprise.

Keep reading this article at: http://www.defensenews.com/article/20141116/DEFREG02/311160020

December 2, 2013 By AMK

Five-year cost of IT procurement reform estimated at $145 billion

The Congressional Budget Office (CBO) estimates the cost to amend laws regulating how the federal agencies acquire and manage information technology projects would cost nearly $145 billion to implement for fiscal years 2014 through 2018.

That bill would use pay-as-you-go procedures for funding, and agencies not affected by annual appropriations could feel effects on direct spending, the CBO said Nov. 12, 2013. (See cost estimate at: http://cbo.gov/sites/default/files/cbofiles/attachments/hr1232.pdf. )

Under current law, the CBO estimates the federal government spends $50 billion per year to acquire IT products and services through interagency contracts.

A new analysis from the Congressional Budget Office (CBO) finds the Navy would have to spend $25 billion a year for 30 years to reach its stated goal of a 355-ship fleet, $6 billion a year more than if it stayed on its current track for a 308-ship fleet.

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