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Our top story this week shares DoD's latest plan to counter the ill effects of continuing resolutions. As Secretary of the Air Force Frank Kendall explains, a recent DoD legislative proposal includes language providing funding for pending new starts whose delay would threaten national security.
In a separate Congressional hearing this week, Secretary of the Army Christine Wormuth testified that a continuing resolution would deny the Army $5.3 billion slated for modernization efforts key to competing with China.
Meanwhile, the House Republican proposal to raise the debt ceiling released this week is tied, as promised, to a FY24 budget capped at FY22 levels. President Biden so far remains committed to his stance that the debt ceiling be raised without strings attached. We'll be watching to see how this potential stalemate ends.
A number of research reports of note in the past week:
Last week, Defense Pricing and Contracting (DPC) released its Defense Contract Finance Study, which was supported with research from NPS as well as other universities and a FFRDC.
- Key findings: "in aggregate, the defense industry is financially healthy" and generally outperforms non-defense large companies in financial metrics like cash flow return and shareholder return. For prime contractors, current financing policies are helping cash flow. Favorable cash flow can be an incentive to attract new entrants into the defense industrial base while retaining existing participants. But these benefits are not necessarily filtering down to subcontractors, suppliers, or small businesses.
- One of the report's recommendation relates to leveraging the DoD Contract Cash Flow Model, a tool developed by DoD and tested by two NPS research teams. This effort was coordinated by NPS faculty Amilcar Menichini, Rene Rendon, and Juanita Rendon, who advised thesis research conducted by LCDR Faithann M. Hawkins (USN), LCDR Christopher M. Battagello (USN), LCDR Alexander M. Julian (USN), Maj. Anndrea E. Brimhall (USMC), and Capt. Ebony Martin (USAF).
- Kudos to these students and faculty for integrating thesis research projects into this larger, and significant, endeavor.
GAO released its High Risk List, with a hearing yesterday to discuss the evaluations. Still on the list: DoD weapon systems acquisition and DoD contract management.
A report from the Partnership for Public Service offers four strategies for innovative acquisition, drawn from recent demonstrated success stories from various agencies. All four strategies depend on collaboration: internally, with other agencies, with the public, and with industry.
In other acquisition news, Space Command is seeing results from its Combined Joint Commercial Integration Office. The command has partnered with 10 commercial companies and is pursuing agreements with another eight. Technologies are focused primarily on space domain awareness and satellite communication.
We're in the final countdown for the symposium, which is now only three weeks away. Block off May 10-11 on your schedule.
20th Annual Acquisition Research Symposium
10-11 May 2023
Monterey, CA
On Wednesday, join us for Panel #03: Assessing Progress of the Adaptive Acquisition Framework, chaired by James P. Woolsey, President, Defense Acquisition University, with research from RAND, CSIS, and GAO.
- Presented in-person and broadcast to virtual attendees via Zoom for Government.
Already registered? Have you let us know if you'll be in Monterey?
- Take our quick survey to let us know whether you'll be in person or virtual. (We've heard from many of you, but not all!)
This Week's Top Story
Pentagon Wants ‘Rapid Response’ Authority for New Starts Without Budget
Chris Gordon, Air and Space Force Magazine
Secretary of the Air Force Frank Kendall speaks at the Space Symposium in Colorado Springs, Colo., April 19, 2023. Source: Space Foundation
The Department of Defense is pushing Congress to give it the authority to start new developmental programs before a budget is approved—a change the Pentagon argues would make critical new programs less vulnerable to Washington gridlock.
“Time is going by, and all those things that we worked hard to understand and formulate good solutions to, we’re not able to act on them yet,” Secretary of the Air Force Frank Kendall told reporters at the Space Symposium in Colorado Springs, Colo. April 19. “That’s a lot to give away to an adversary when it’s totally unnecessary.”
The legislative proposal, sent to Capitol Hill by the Pentagon on April 12, is called “Rapid Response to Emergent Technology Advancement or Threats.” The DOD wants up to $300 million per year in development funds that could be used “in response to urgent operational need”—creating a discretionary pool of money and the Congressional authority to get started on vital projects.
Kendall has set an ambitious program of modernization for the Air Force and Space Force to ensure the U.S. stays ahead of China, a main concern for the Biden administration, the U.S. military, and lawmakers. In its 2024 budget alone, the Air Force has 12 brand new programs, sometimes called new starts.
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