The Pentagon could be placing itself at further risk by refusing to plan for the draconian spending cuts mandated by the 2011 Budget Control Act’s sequestration clause, said Todd Harrison, a senior fellow for defense budget studies at the Center for Strategic and Budgetary Assessments. Harrison outlined four options for tackling the issue during a budget briefing with reporters in Washington, D.C., on Wednesday, just days before the release of the Pentagon’s Fiscal 2013 spending proposal. The first is to simply let sequestration happen—DOD’s current path. The second option specifically targets cuts through a budget amendment that Congress would have to approve before the January 2013 deadline for sequestration taking effect. The third option—a short-term approach—is to utilize war funding to soften the blow. Finally, Harrison proposed backloading the spending cuts by reducing the budget 2.2 percent each year over the next 10 years. Continue
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.