Posts tagged "Fy2013"
Oct 3, 2012

Agency chief acquisition officers are not playing a big role in planning for sequestration or even future budget cuts.

An exclusive Federal News Radio survey of federal CAOs and senior procurement executives found 57 percent of the respondents said they are not preparing for smaller budgets.
 
Joe Jordan, the administrator of the Office of Federal Procurement Policy, said the survey responses weren't that surprising.
 
"With the budget situation overall, agencies have some good foreknowledge usually into what their agency's budget will look like," Jordan said in an exclusive interview on In-Depth with Francis Rose. "The important thing is to make sure that planning is integral to the acquisition process overall, make sure agencies are doing good acquisition forecasting, creating robust plans and conducting the appropriate market research, so they can cast a wide net for new businesses that can deliver the goods and services they need in the best possible way." Read full article.

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Jul 17, 2012
Sequestration - the automatic across-the-board cuts that will occur if an agreement cannot be reached regarding the nation's deficit.  These cuts would go into effect on January 1, 2012.  These defense cuts would take place over the span of a decade, amounting to $500 billion.

Prime Contractors in the defense industry are warning of massive layoffs, with Lockheed Martin threatening to layoff up to 123,000 personnel should sequestration occur.  Meanwhile, lobbying expenses from military contractors has increased by 11.5%, for a total of $15.9 million, in the first quarter of 2012 compared to the same quarter in 2011.  Northrop Grumman and Lockheed Martin increased their spending by 51% and 25% respectively.

Defense Secretary Leon Panetta made a plea to Congress in the end of June urging Congress to prevent sequestration budget cuts from threatening "the programs critical to our nation's security." 

Acting Office of Management and Budget (OMB) Director Jeffrey Zients has agreed to testify before his committee on the looming defense cuts.  This hearing will occur two weeks after the scheduled July 18 hearing in which members of the defense industry will discuss the impact of sequestration cuts on U.S. companies.

A majority of Democrats and Republicans (which includes the Obama administration) are opposed to the sequestration cuts, but both parties have so far failed to reach an agreement on the alternatives they could implement to replace the cuts.

By: Ira Evangelista, GovPartners Market Analyst

 

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