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Senators Asking Contractors For Sequestration Impact Outlines

Six Republican senators and one independent senator want several contractors to submit written information on the potential impact of defense cuts under sequestration.

Sen. John McCain’s (R-Ariz.) released the letter Thursday, addressed to companies such as ATK, BAE Systems’ U.S. subsidiary, Boeing, Computer Sciences Corp., General Dynamics, ITT Exelis, L-3 Communications, Lockheed Martin, Raytheon and SAIC Inc.

Under the Budget Control Act, sequestration cuts are scheduled to begin taking effect Jan. 2, 2013.

The lawmakers asked companies to give an estimate of the total number and total dollar value of Defense Department contracts that could be cancelled or restructured under sequestration.

Impacts of cancelled or restructured contracts on employees, partners and suppliers should also be included as well, the letter says.

The lawmakers requested estimates of when companies would send layoff notices to workers, as required under the Worker Adjustment and Retraining Notification Act.

That law requires most employers with 100 or more employees to provide 60-day advance notice of plant closings and mass layoffs.

Respondents should estimate the impact of any slowdowns in new contract awards and whether the slowdowns can be attributed to uncertainty surrounding sequestration.

Additionally, responses should also include potential impacts on a company’s strategic plan, capital and research investments, and workforce recruiting and development.

A separate report from Defense Secretary Leon Panetta is due to Congress by Aug. 15, detailing potential impacts of sequestration on national security.

Including McCain, co-signers of the letter were Joe Lieberman (I-Conn.), James Inhofe (R-Okla.), Saxby Chambliss (R-Ga.), Kelly Ayotte (R-N.H.), Lindsey Graham (R-S.C.) and John Cornyn (R-S.C.).

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