Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Connected Government
- Consolidating Mission-critical Systems
- Constituent Servicing
- Continuous Monitoring: Tools and Techniques for Trustworthy Government IT
- The Data Privacy Imperative: Safeguarding Sensitive Data
- Eliminating the Pitfalls: Steps to Virtualization in Government
- Federal Executive Forum
- Federal Tech Talk
- Government Cloud Brokerage: Who, What, When, Where, Why?
- Government Mobility
- Mission-critical Apps in the Cloud
- Mobile Device Management
- The Modern Federal Threat Landscape
- The Path from Legacy Systems
- Understanding the Intersection of Customer Service and Security in the Cloud
Shows & Panels
The Project on Government Oversight reviewed the size of five of the largest defense contractors and found three of the five were reducing their workforces even as the Defense Department's procurement budget ballooned between 2006 and 2011.
Army Under Secretary Joseph Westphal said if the automatic spending cuts known as sequestration go into effect, the impact to the Defense Department will be "devastating." At the same time, the DoD still must plan for cuts as tight budget continue and combat operations shrink.
Agencies should not change their spending plans for this year or next, but need to start assessing which programs would be impacted by automatic sequestration cuts if Congress doesn't cancel them, OMB acting Director Jeff Zients told Congress Wednesday.
With a tighter defense budget and the threat of sequestration, defense contractors say they may have to lay off thousands of workers and look for business overseas.
Small and medium-sized contractors and suppliers receive 75 percent of appropriated dollars for defense or military programs. But these small businesses, who lack the lobbying power of top- tier defense contractors, may suffer more from sequestration than big companies.
The largest federal contractor is struggling to prepare for about $1 trillion in cuts that are due to take effect in January. Retiring-CEO Robert Stevens said agencies will ask vendors to modify contracts and that in turn will drive up the costs of those programs. Lockheed Martin already is taking steps to reduce its spending by consolidating facilities and reducing staff.
Defense contractors are growing increasingly worried about the automatic, across-the-board budget cuts, known as sequestration, which are set to take effect in January. Marion Blakey, the president and CEO of the Aerospace Industries Association, said the cuts would hit the defense industry particularly hard.
The Office of Management and Budget estimates that $83.5 billion in previous years' Department of Defense funds will remain unobligated on Sept. 30, the end of fiscal 2012, reports Kevin Brancato and Robert Levinson of Bloomberg Government.
Sequestration would kill hundreds of thousands of defense industry jobs, the Pentagon warns. Frank Kendall told senators during his nomination hearing to be the DoD acquisition chief that personnel accounts would be shielded so lower-tiered contractors would feel the brunt of cuts.