A new report by the Congressional Budget Office says that sequestration is not required for fiscal year 2015 as budget appropriations for defense and nondefense programs do not exceed caps on discretionary budget authority.
CBO said Monday that the enacted defense funding for fiscal 2015 is equal to the limit of $585.8 billion, while the nondefense budget of $513.8 billion is slightly below the cap of $514.1 billion.
The caps have been adjusted to include a total of $86.3 billion for overseas contingency operations, disaster relief, Ebola outbreak emergency requirements as well as Medicare, Social Security Disability Insurance and Supplemental Security Income program integrity initiatives, CBO noted.
The report states that if Congress later adds appropriations that breach the budget caps before the end of the fiscal year, CBO will reduce its estimated limits on discretionary spending for fiscal 2016.
CBO also said that automatic spending reductions included in the Budget Control Act of 2011 will reduce the discretionary budget caps for fiscal years 2016 through 2021, but the amount will still gradually increase from $1.02 trillion in fiscal 2016 to $1.14 trillion in fiscal 2021.Reference Article
WASHINGTON — Despite budget cuts requiring most federal agencies to furlough workers, the State Department says it will not have to force any of its employees to take unpaid leave.
The automatic budget cutting set for March 1 would hamper the government’s ability to protect the public in a range of areas, according to several warnings that were sounded Wednesday.
Presidential Debates – On Sequestration
Sequestration is set to take place a little more than two months from now. Both President Obama and Mitt Romney have gone on the record with their intent to prevent sequestration from occurring. Here’s what each of the candidates said regarding the topic on the third and last presidential debate held on October 22, 2012.
President Obama: “First of all, the sequester is not something that I've proposed. It is something that Congress has proposed. It will not happen. The budget that we are talking about is not reducing our military spending. It is maintaining it.”
Governor Romney: “Former chief of the -- Joint Chiefs of Staff said that -- Admiral Mullen said that our debt is the biggest national security threat we face. This -- we have weakened our economy. We need a strong economy. We need to have as well a strong military. Our military is second to none in the world. We're blessed with terrific soldiers, and extraordinary technology and intelligence. But the idea of a trillion dollar in cuts through sequestration and budget cuts to the military would change that. We need to have strong allies.”
“Our Navy is old -- excuse me, our Navy is smaller now than at any time since 1917. The Navy said they needed 313 ships to carry out their mission. We're now at under 285. We're headed down to the low 200s if we go through a sequestration. That's unacceptable to me.”
It remains to be seen how the result of the election, if any, will factor into the impending January 2, 2013 sequestration.
Agency chief acquisition officers are not playing a big role in planning for sequestration or even future budget cuts.
Using Sequestration to Your (GSA) Advantage
In addition to the political outcome this winter, there is something else that people are concerned with, but don’t totally understand: Sequestration. The OMB has plans to reduce the budget by nearly 10.3% by January 3, 2013.
For organizations involved with defense spending, difficult decisions will need to be made. If the Department of Defense cuts approximately 108,000 Federal employees, Contractors will be forced to make some cuts to their staff as well. Some defense contractors have already issued 60-day notices to a portion of the workforce. Even though the budget cuts won’t immediately reflect the 10.3% decrease in spending, now is the time to start thinking about a few things:
First, what are your current staffing levels? If you’ve been running lean for the last few years, do you have room in the budget for new talent? There will be some very accomplished professionals released from the public and private sectors. Think about your staffing needs and some of the changes you can make that you may not have considered before.
Are you taking advantage of all of the set-asides available to you? Are you bidding on every contract that has a high probability of win? Have you formulated a new Marketing Plan for the next ten (10) years, with these budgetary changes into account? Are you on the GSA Schedule?
These are all important things to look at right now. GovPartners understands the coming challenges and are assisting many clients navigate the uncertain future we’re facing. Here are some areas we may be able to help:
· Market Research and Capture Management: GovPartners will research the opportunities that are available for your organization to help alleviate some of the uncertainty in the market.
· If you’re not on the GSA schedule, GovPartners can assist you in determining which schedule is right for your company, prepare the submission and follow it through to completion.
· Teaming: GovPartners has recently relaunched the SubTeamPartners (STP) network. Through this network, GovPartners can assist you in facilitating teaming partnerships for targeted government opportunities. STP matches your teaming needs with other contractors complementing each company's areas of service and/ or socio economic statuses for set-aside requirements. This provides you with the visibility and capabilities to bid on opportunities that may not have been available to you before.
· Proposal Preparation: In the past, most companies had staff that were dedicated to preparing their company proposals. The environment and economic climate has changed, and more companies are utilizing 3rd parties to assist with each proposal effort. GovPartners develops lasting relationships and partnerships on integrity. Our proposal preparation team allows our clients to experience a service that provides proposal with the ambiance of your own in-house proposal department.
· Once you’ve acquired the contract, GovPartners provides Acquisition and Contract Management and Administration to include kick-off meeting attendance, invoicing, Quality Control, Performance Evaluation, deliverables, close-out reporting, etc.
Let GovPartners help you Prepare to Win and Perform to Expand.