Deputy Defense Secretary Bill Lynn on Wednesday called on Congress to complete work on a defense spending bill for Fiscal 2011. “Unfortunately, if the Congress leaves the department on a year-long continuing resolution for Fiscal 2011 at reduced funding levels, we will likely see a drop in both effectiveness and efficiency this year,” Lynn told the House Armed Services Committee while testifying on the Pentagon’s efficiency initiative and budget matters. The continuing resolution, if it remains in place, will provide $530 billion for national defense this fiscal year, down about $18 billion from the Pentagon’s original budget request. Lynn said the reduced level “would cause severe problems, likely requiring us to curtail critical activities needed to support our troops and carry out our national security mission.” (Lynn’s prepared remarks) (See also Budget Outlook from the Daily Report archives)
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.