The 2015 NDAA enacts measures to curtail rising DoD personnel costs, such as increasing co-pays related to prescription drugs by $3, decreasing pay raises to 1% - below the current rate of inflation, and prohibiting further wage raises for flag officers. Departing Chairman of the Senate Armed Services Committee Carl Levin expressed his concern that the spending caps imposed by sequestration, in conjunction with rising of personnel costs will erode military readiness.
The Carl Levin and Howard P. McKeon National Defense Authorization Act (NDAA) for fiscal year (FY) 2015 passed the Senate Friday night by a bipartisan vote of 89-11, after the House passed the measure 300-119. The bill includes $495.9 billion for the Department of Defense’s (DoD) base budget, $63.7 billion overseas contingency operations (OCO) budget, and $17.9 billion for the Department of Energy related to maintaining the nation’s nuclear arsenal (Alexander, 2014). The FY 2015 NDAA also institutes a host of provisions related to curbing military benefits, creates a new DoD leadership position – the Under Secretary of Defense for Business Management and Information (USDBMI), and provides the Navy with billions in extra procurement funding.
The 2015 NDAA enacts measures to curtail rising DoD personnel costs, such as increasing co-pays related to prescription drugs by $3, decreasing pay raises to 1% - below the current rate of inflation, and prohibiting further wage raises for flag officers. Departing Chairman of the Senate Armed Services Committee Carl Levin expressed his concern that the spending caps imposed by sequestration, in conjunction with rising of personnel costs will erode military readiness.
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The House Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies & the Subcommittee on Research and Technology recently held a joint hearing on the potential re-authorization of the Department of Homeland Security’s (DHS) Science and Technology (S&T) directorate. S&T’s objective is to develop new technologies for agencies under DHS such as the Transportation Security Administration, Coast Guard, Federal Emergency Management Agency, etc. to better protect the homeland from a wide variety of threats. Representatives from both committees were concerned on the level of redundant research programs within S&T’s $1.2 billion budget across DHS; Chairman Lamar Smith highlighted a government accountability office report which described S&T’s R&D management approach as “fragmented and overlapping.”
Undersecretary Brothers responded by providing an overview of S&T’s current R&D priorities, which are guided by the quadrennial homeland security review and the direction of DHS Secretary Johnson: In fiscal year 2014 (FY14) the Defense Information Systems Agency (DISA) bought $8 billion worth of information technology and cyber products and services for the Department of Defense. During the DISA 2014 forecast to industry event, Major General (MG) Alan Lynn, Vice Director and Senior Procurement Executive at DISA, recently outlined his five main objectives with respect to ongoing and future procurement programs:
1) Meet small business goals 2) Increase competition 3) Foster greater discipline in acquisition planning 4) Leverage buying power via consolidation of like type items 5) Review all procurements exceeding $10 million MG Lynn explained that these measures will help DISA cope with sequestration, and expected future budget cuts, “…the future is our budget is going to be decreasing. It’s been pretty significant from what we’ve seen so far. What that means is competition is good for us, and we are going to try and compete as much of the contracts as we have coming out as much as possible…we’ve found that if we compete them, then it drives down prices which is good for us.” With a net gain of at least seven seats in the Senate and the possibility of gaining another seat during the December runoff election in Louisiana, Republicans are expected to make several key Senate committee appointments in January, including:
The appointment of John McCain to SASC Chairman, in particular, has the potential to affect several defense related procurement programs and budget appropriations. Senator McCain has been supportive of increased US military involvement in both Syria and Ukraine, while simultaneously scrutinizing perceived budgetary waste by the Pentagon: The Obama Administration has requested $1 billion in Department of Defense (DoD) reappropriations to augment efforts to contain the outbreak of Ebola in West Africa. As of late October, the House Appropriations, House Armed Services, and Senate Armed Services committees have approved $750 million dollars in DoD reappropriations, which will come from the overseas contingency operations (OCO) budget, though the Senate Appropriations Committee (SAC) has yet to approve this request. Chairwoman Barbara Mikulski (D-Md.) announced the SAC will hold a hearing on Ebola reappropriations on November 6th, shortly after the midterm elections.
Department of Defense officials have been increasingly concerned with the deteriorating state of the US military’s technological superiority as a result of low cost disruptive technologies. The proliferation of low cost, disruptive technologies coincides with a dramatic decrease in publicly funded defense Research Development Test and Evaluation (RDT&E) spending from the DoD: the FY 2014 budget allocated just $63 billion to RDT&E, compared to the nearly $80 billion allocated in FY 2009. Additionally, US private sector RDT&E defense spending has fallen dramatically in terms of percentage, as well, with the largest US Defense contractors reinvesting only 1-2% of sales back into R&D. In response, senior DoD leadership has developed new initiatives to foster innovation and maximize reduced budgets through new technological offset strategies, cost sharing between close US allies, and acquisition reforms.
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