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The three military department's top acquisition officials say they are each undergoing examinations of their contract spending on services. The goal is to ensure that the current, highly-decentralized service contracting process is serving valid military missions.
Virtually every one of DoD's acquisition programs took a hit from sequestration in the first year of sequestration, officials from each of the military services told lawmakers this week. But the next few years of the 10-year spending restrictions could be much more painful, especially if Congress doesn't return to the process of enacting regular appropriations bills.
Small firms already have taken a disproportionate hit from DoD's pullback in 2013 spending, Pentagon officials say. Military acquisition leaders worry the sudden cuts will bankrupt small businesses that provide one-of-a-kind capabilities.
Army says its implementation of DoD's Better Buying Power directives saved hundreds of millions of dollars last year, but this year's budget chaos will undo much of the progress.
The service's new acquisition strategy tries to imagine the Army's needs over the next three decades as the focus shifts away from large counterinsurgency and stability operations.
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.
President Barack Obama announced Friday his plans to nominate Joseph Jordan, a former Small Business Administration official, to head the Office of Federal Procurement Policy.
The Army has filled two of its highest acquisition jobs. Heidi Shyu has been appointed principal deputy assistant secretary for acquisition, logistics and technology. Scott Fish is its new chief scientist.