Rapid Fire 2011-12-07: FYDP Not Sequestered

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* It’s not just the pending US FY13 President Budget that won’t reflect sequestration, the 5-year Future Years Defense Program (FYDP) projection won’t either, based on an Office of Management and Budget (OMB) document seen by Bloomberg. OMB states this is still “pre-decisional material” though, but this matches our expectation that budgets made of a relatively flat DoD baseline and a reduced OCO (i.e. war spending) line item are the mostly likely outcome in the next few years. But because of that cloud of uncertainty some firms plan to increase the share of their revenue coming from civilian customers. * The Aerospace Industries Association (AIA) sent a letter to US SecDef Leon Panetta to push back against the Pentagon’s attempt to shift more project risk on contractors. The latest F-35 contract negotiations are no doubt prominently in their mind. * US Naval Air Systems Command (NAVAIR) is using predictive modeling to “compare manpower to flight rate [and recommend] employee workloads and tracks daily activity to proactively identify bottlenecks or constraints” on the CH-53K program. * The US DoD will host a public meeting in Washington DC on Jan. 12, 2012 on the use of open source software in its contracts. […]

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