Defense Budget Alert

As House and Senate conferees near an agreement on the fiscal year 2013 defense authorization bill, Defense Secretary Leon Panetta is making a final push to advocate changes the White House proposed earlier this year for both chambers' versions of the legislation.

A legislative provision adopted last week by the Senate calls on the Defense Department to provide a comprehensive accounting of the U.S. force posture in the Asia-Pacific region, calculate costs associated with executing the full range of planned missions there and conduct a risk assessment of its overall plans.

The
Pentagon's decision to halt Defense Contract Audit Agency reviews of lower-cost
contracts will cost taxpayers nearly $250 million per year in lost potential
return on investment, the Defense Department inspector general contends in a
new report that has been strongly refuted by senior DOD officials.

The Navy and the Air Force have missed nearly half of their short-term audit-readiness deadlines over the past six months, but the Pentagon believes it is still on track to reach its upcoming goals, according to a new Defense Department report.

The Defense Department ended fiscal year 2012 with $105.7 billion in unobligated funds, exposing modernization accounts to a larger portion of a potential $54.7 billion sequestration bill if lawmakers and the president do not agree to a long-term, deficit-reduction plan by Jan. 2.

With lawmakers returning to Capitol Hill next week for the lame-duck session, the biggest advocacy groups for the U.S. military services are urging Congress to keep sequestration from being triggered in January.

The Ground Combat Vehicle, one of the Army's premier modernization efforts, is being targeted by Pentagon cost-cutters in ways that could lead to a broad program restructuring or force a down-select to a single contractor earlier than expected, Inside the Army has learned.

To better use modernization funding in an era of declining budgets, the service will push for greater alignment between its science and technology base and its programs of record, the Army's acquisition chief announced last week.

Lockheed Martin will issue WARN Act notices to employees impacted by sequestration should the measure take effect in the new year, the company's chief executive officer said today.