Frank Kendall, the U.S. undersecretary of defense for acquisition, technology and logistics issued a memo on February 21 allowing Defense Department program managers to discuss the potential impact of sequestration on acquisition programs, reports Marcus Weisgerber for Federal Times.
The memo is part of DoD’s austerity measures in preparation for the automatic spending cuts called sequestration which are set to take place on March 1.
It will result in cuts worth $46 billion in the Pentagon’s fiscal 2013 budget.
In addition to sequestration, DoD is operating under a continuing resolution which provides 2012 budget levels for 2013 expenditures. This has already led to $11 billion deficit from the original plans for 2013.
“Even if sequestration is averted, challenging CR impacts may remain,†Kendall said.
“Moreover, feedback from industry will provide valuable insights as government managers decide how best to move forward in attempting to meet the war-fighter requirements and DoD needs under severely constrained budgetary conditions,†he added.
Being informed on the issue will also help contractors formulate their own strategies to cope with the current fiscal landscape, Kendall added.
He also wrote that the discussion is crucial since the effects of CR will remain even if sequestration will be averted.
