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With the announcement from Defense Secretary Chuck Hagel recalling most Defense Department civilians from furloughs, some large defense companies, which had been planning to furlough their employees, have canceled or scaled back their initial plans. However, DoD's move could wind up having only a limited impact on contractors more broadly.
As sequestration draws nearer, contractor groups have pointed to alarming studies that show the 9 percent in across-the-board Defense cuts would throw at least 1 million people out of work and potentially cripple the defense and aerospace industries. But in a new report, the Center for International Policy, a nonprofit group which advocates reducing military spending, presented evidence that far fewer defense-sector jobs would be lost than industry has claimed and that defense companies would likely be able to absorb the defense cuts.
In an analysis prepared for the American Federation of Government Employees, contracting expert Charles Tiefer said that agency managers have a number of tools at their disposal to legally scale back service-contract spending and that doing so would be preferable to federal furloughs.
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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.
Administration collecting industry input before issuing four guidances by Sept. 30. Acquisition workforce remains biggest challenge.
Tags: contracting , David Drabkin , Jeff Liebman , OMB , OFPP , GSA , DoD , Coalition for Government Procurement , Lockheed Martin , Acquisition Solutions , John Palatiello and Associates , John Palatiello , Larry Allen , Trey Hodgkins , Alan Chvotkin , Eleanor Spector , acquisition reform , acquisition workforce , competition
Marion Blakey, the president and CEO of the Aerospace Industries Association a former FAA administrator, joined the Federal Drive with Tom Temin and Amy Morris to discuss what aerospace contractors should keep their eyes open for.