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Rapid Fire March 19, 2013: CBO Maps Paths to BCA Execution

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* The Congressional Budget Office (CBO) examined 4 options [PDF] that should allow the Pentagon to remain within budget growth constraints set by the Budget Control Act once translated to constant dollars (i.e. once inflation has taken its toll). Their scenarios play with how much is asked from each main budget category: acquisition (i.e. RDT&E + procurement + military construction), operations, and/or cuts in force cuts to force structure. They think there is a significant shortfall: “Because the inflation-adjusted costs of DoD’s plan will rise over time much more rapidly than the budget caps will, the reductions that DoD will have to make relative to its 2013 plan to comply with the caps will be larger in later years (see figure below). From 2018 through 2021, the caps will be about 12 percent below an extrapolation of DoD’s five-year plan and 19 percent below CBO’s projection of the cost of that plan.” * The US Senate hopes to wrap up HR 933 today. Or at least before the end of the week as Congressional recess would get in the way of funding the federal government past March 27. * From the start of FY2015, using cost-type contracts to acquire the […]

* The Congressional Budget Office (CBO) examined 4 options [PDF] that should allow the Pentagon to remain within budget growth constraints set by the Budget Control Act once translated to constant dollars (i.e. once inflation has taken its toll). Their scenarios play with how much is asked from each main budget category: acquisition (i.e. RDT&E + procurement + military construction), operations, and/or cuts in force cuts to force structure. They think there is a significant shortfall:

“Because the inflation-adjusted costs of DoD’s plan will rise over time much more rapidly than the budget caps will, the reductions that DoD will have to make relative to its 2013 plan to comply with the caps will be larger in later years (see figure below). From 2018 through 2021, the caps will be about 12 percent below an extrapolation of DoD’s five-year plan and 19 percent below CBO’s projection of the cost of that plan.”

* The US Senate hopes to wrap up HR 933 today. Or at least before the end of the week as Congressional recess would get in the way of funding the federal government past March 27.

* From the start of FY2015, using cost-type contracts to acquire the production of major US defense programs (aka MDAPs) is prohibited by default, unless the Pentagon first justifies doing so Congress. DARS 2013-O0009 [PDF]. Cost-plus contracts have fallen out of favor because they shift the risk [PDF] on the buyer and don’t give vendors any cost control incentive.

* United Nations members are gathered again in New York to negotiate the implementation of an Arms Trade Treaty. The last round of such talks was stalled by the US and other large weapons exporters in July last year. Reuters | US Dept of State position.

* Denmark’s Prime Minister Thorning-Schmidt announced their troops will leave Afghanistan by the end of the summer and not at the end of next year. Copenhagen Post | Video [in Danish].

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