?>

DOD Releases Defense Reviews, 2011 Budget Proposal, and 2010 War Funding Supplemental Request

DOD Releases Defense Reviews, 2011 Budget Proposal, and 2010 War Funding Supplemental Request - Update
Department of Defense
February 1, 2010

President Barack Obama today sent to Congress a proposed defense budget of $708 billion for fiscal 2011. The budget request for the Department of Defense (DoD) includes $549 billion in discretionary budget authority to fund base defense programs and $159 billion to support overseas contingency operations (OCO), primarily in Afghanistan and Iraq. This proposal continues the reform agenda established in last year's DoD budget request and builds on the initiatives identified by the 2010 Quadrennial Defense Review (QDR) and 2010 Ballistic Missile Defense Review (BMDR).

The QDR examines DoD strategies and priorities. It assesses the threats and challenges that the nation faces and re-balances DoD’s strategies, capabilities, and forces to ensure the U.S. military has the flexibility to address today’s conflicts and tomorrow’s threats. The BMDR evaluates the ballistic missile threat to the U.S. and its allies and articulates policy. It determines the appropriate role of ballistic missile defense in the country’s national security and military strategies.

“The fiscal 2011 budget request builds on the reforms begun in last year's defense budget,” said Defense Secretary Robert Gates. “These substantial changes to allocate defense dollars more wisely and reform the department’s processes were broadened and deepened by the analysis and conclusions contained in the Quadrennial Defense Review.”

The fiscal 2011 base budget request represents an increase of $18 billion over the $531 billion enacted for fiscal 2010. This is an increase of 3.4 percent, or 1.8 percent real growth after adjusting for inflation. The DoD needs modest real growth to maintain, train, and equip the forces that sustain our wartime efforts.

The fiscal 2011 OCO request will provide additional resources needed to sustain U.S. forces in Operation Enduring Freedom – in Afghanistan and elsewhere – and Operation Iraqi Freedom. Included are funds for pay and benefits, logistics and other support, force protection, continuing efforts to counteract improvised explosive devices, as well as funding to fully support the buildup in Afghanistan and to carry out a responsible drawdown in Iraq.

“The choices made and priorities set in these budget requests and strategic defense reviews reflect America's commitment to succeed in the wars we are in while making the investments necessary to prepare for threats on or beyond the horizon,” said Gates.

Also accompanying the 2011 budget proposal is a fiscal 2010 supplemental request of $33 billion to support the added costs of the President's new strategy in Afghanistan and strengthen U.S. force levels with approximately 30,000 additional troops.

“To make sure we have the resources needed to support our troops deploying to the Afghanistan theater, I will be asking the Congress to enact the supplemental by spring 2010,” said Gates.

Key highlights of the proposed DoD budget are outlined in the attached summary and charts. For more information and to view the entire fiscal 2011 budget proposal, please visit http://www.budget.mil and download the "FY 2011 Budget Request Overview Book."

The 2010 QDR and BMDR are available online at www.defense.gov/DefenseReviews.

Transcripts from applicable budget and strategic defense review briefings can also be viewed at www.defense.gov/transcripts.

Technorati Tags:
, ,



SI International purchased by UK company

Serco, a large service provider from the UK with worldwide operations, announced that it had purchased the US defense contractor, SI International. The $400 M deal expands Serco into the US defense market and represents another broadening of their market base. This continues the trend of European companies buying US ones in order to reach the large DoD budget here. By buying a US company many of the technology transfer and security requirements that impact foreign companies doing business can be minimized. SI International has 4,500 employees and primarily supports the US Air Force, an area that Serco does not do much business with.

The Guardian has the story here.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

GD good to Massachusetts

According to this article, GD is rapidly expanding their facility in Pittsfield, MA due to several contracts from DoD. The Advanced Information Systems Division is responsible for developing weapon control systems and other electronic networks for Navy ships. They have recently built a new facility and have created over 140 jobs. This again illustrates how important the DoD budget is in creating high paid, high skilled jobs all over the country.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Another post on Seekingalpha.com

An article I wrote about Force Protection was posted on SeekingAlpha.com here. It has received a good response, although most people don’t agree with what I wrote. The main point was that due to the cyclic nature of the DoD budget some companies are caught with a hot product that is procured in large amounts for a few years and then ends. It is not the fault of the company or DoD it is just how the budget works.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Congress, the media and the KC-45 award

I made the mistake of watching Lou Dobbs on CNN this Saturday who had a rant about the KC-45 award to Northrop Grumman and EADS. The only guest he had on was the head of the machinist union from Boeing who was obviously not unbiased. He had no guest from DoD or Northrop to talk about the award. It was clear that Mr. Dobbs does not understand how DoD buys things. Here is the video from Mr. Dobbs blog on this issue. Read more

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

>