Frank Kendall: Defense Industry to See FY 2014 Sequester Impacts

frank kendallFrank Kendall, the Defense Department’s top acquisition officer, expects the Pentagon to delay or cancel some programs under sequestration cuts for fiscal year and the defense industry suffering some impacts as a result, the Washington Post reported Monday.

Marjorie Censer writes DoD has already reduced operational costs and furloughed civilian workers but could also cut in other areas such as acquisition and production of military equipment.

“I don’t know what’s going to happen next year, and I don’t want to make major commitments to contracts that we may terminate,” Kendall told the Post.

“We’re going to have to make some hard choices, I think, in the next few weeks about what we do with some of our programs,” he added.

Kendall suggested to the Post that there could be merger-and-acquisition activity among smaller contractors as a response to further spending cuts next fiscal year.

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