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sequestration

Program Keeps Defense Companies Viable Through International Trade

December 23, 2013
By Rita Boland

The Virginia Economic Development Partnership (VEDP) instituted the Going Global Defense Initiative in August to assist defense contractors with signing international clients, making up for lost domestic revenue.

Resource Reductions Dominate Planning

July 1, 2013
By Maryann Lawlor

Today’s financial skimping will lead to military forces and equipment that are short on readiness for future conflicts. Cutbacks in training and travel to conferences where service members network, learn about the latest in technologies and benefit from educational courses is one way to meet mandated budget cuts; but in the long term, they will result in service members who are ill-prepared to meet the challenges of what some believe will be a volatile future. Simultaneously, reductions in maintenance of vehicles, networks and ships will result in higher repair bills much like a car that is not routinely taken to the shop ends up costing the owner more to fix in the long run.

This was the general consensus of the military, government and industry experts who spoke at the East: Joint Warfighting 2013 conference at the Virginia Beach Convention Center in Virginia Beach, Virginia, in May. The participants represented all of the military services as well as the international community.

Adm. William E. Gortney, USN, commander, U.S. Fleet Forces Command, opened the event saying that the military and industry are facing a decade of change and choices. As the services are ramping down from combat mode, they are refocusing on the Pacific theater, which is more of an intellectual shift in Washington, D.C., than a military change, Adm. Gortney said. While resources are on the decline now, the admiral believes economics is and always has been a sine wave, up at times and down at others. The U.S. Defense Department’s budget will increase again, and the department must be ready. “The only way we’re going to get through this is to lead our way to the other side,” the admiral said.

Austerity Breeds Innovation

May 16, 2013
By Maryann Lawlor

East: Joint Warfighting 2013 Online Show Daily, Day 3
East: Joint Warfighting 2013 at the Virginia Beach Convention Center, Virginia, wrapped up today with discussions about the challenges in counterinsurgency wars, rapid acquisition and fiscal crisis.
Lt. Col. John A. Nagl, USA (Ret.), author of Learning to Eat Soup with a Knife: Counterinsurgency Lessons from Malaya and Vietnam, said that U.S. leaders turned away from the lessons that were learned in Vietnam when they began fighting in Iraq and Afghanistan. It was not until Gen. David Patraeus, USA (Ret.), former commander, U.S. Central Command, took over the mission that progress started to be seen in the region. “We can’t afford to get it so far wrong again,” Col. Nagl stated.
 
While some success has been seen in Iraq in terms of stability, the same cannot be said about Afghanistan, he added. Absent American support, the country could still be overtaken by insurgents, and it is yet to be determined if Afghanistan will end up like the Vietnam War or be an “untidy” success like Iraq. “The best we can hope for is an age of unsatisfying wars,” the colonel noted. “Counterinsurgency wars are long and messy, but they are the most likely type of wars we’ll fight in the future.”
 
Lt. Gen. Jeffrey A. Sorenson, USA (Ret.), former U.S. Army chief information officer (G-6), led the final panel of the conference. The topic was one that has been hot for some time and is now coming to a boil in light of tightening budgets: acquisition. However, members of the panel did not so much discuss less money as they did an aspect of the issue that has been the focus of numerous panels: how to speed delivery of solutions to warfighters.
 

Experts Focus on the Effects of Sequestration

May 14. 2013
By Maryann Lawlor

East: Joint Warfighting 2013 Online Show Daily, Day 1

Adm. William E. Gortney, USN, commander, U.S. Fleet Forces Command, set the tone for East: Joint Warfighting 2013 taking place at the Virginia Beach Convention Center, Virginia, May 14-16, when he opened the conference by talking about changes and choices in today’s morning keynote address. Although the obvious change is the reduction in financial resources, the other is one that has been mentioned at previous AFCEA International conferences: the shift in focus from Southwest Asia to the entire Pacific region.

Guest Blog: Budget Impact on Developing COTS Systems

March 25, 2013
By Michael Carter

The current driving force in the military and defense environment is to keep legacy systems operating longer, or the replacement of legacy systems with new systems that emulate one or more legacy systems with commercial-off-the-shelf (COTS) technology. However, there is insufficient budget to fund development of these COTS systems, and the burden of development falls upon private industry. The current sequestration environment adds another burden on industry to perform to the needs of the military, but without the benefit of nonrecurring engineering (NRE) costs being reimbursed. Programs although already funded (but not the NRE, as it is not initially funded) are being put on hold, cancelled, or are in a state of non-deterministic outcome.

Military and defense program managers and private industry face an uphill battle to find the intersection of needs, available resources and the expenditure of development costs. Small companies are at a distinct disadvantage when they develop technology to support the replacement of legacy systems when they are forced to use their own development resources without compensation and are not awarded a contract for production.

Whether a fixed-price, cost-plus, or IDIQ contract, the above scenario is increasingly commonplace in the face of budget constraints and sequestration. The burden on small companies doesn’t stop there; military program managers are also demanding engineering support without compensation for engineering-sustaining efforts, again without the presence of a production contract.

Although many systems are characterized as COTS, there are demands on the developer to perform military environment qualification testing, again without funding and no guarantee of a production contract.

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