essay-XXX sitemap
essay-XXX sitemap online
essay-XXX sitemap free
descargar adobe premiere pro cc mac
microsoft office word 2007 download romana
microsoft windows server 2012 standard 2cpu
snagit 11 not capturing scrolling window
vmware workstation 8.0.3 full download
microsoft office for mac home and business 2011 upgrade
microsoft outlook 2013 keeps asking for credentials
adobe after effects cs4 mac softonic
adobe creative suite 5 design standard deutsch mac
adobe audition 3 for mac
microsoft windows xp sp3 professional genuine bootable msdn iso 2012
microsoft office access 2007 password recovery
vmware workstation 10 boot from iso
hazel 3 osx
microsoft office professional plus 2013 rearm
web page maker 3.22 registration code
download autodesk 3ds max 2010 portable
eset smart security 6 username and password may 2013
autodesk autocad 2013 windows 8 compatibility
adobe premiere elements 10 laggy
microsoft office 2007 enterprise requirements
norton partition magic 8.05 deutsch incl key
microsoft windows 8.1 release date
adobe premiere elements 4 transcoding error
which softwares are bundled with adobe elearning suite 2.5
download vmware workstation 6.5 for windows
corel painter x3 service pack 1
autodesk autocad map 3d enterprise 2012 x32 x64 isz enru
nik software viveza 2 descargar gratis
adobe after effects cs4 o 5
eset smart security 5 username and password mai 2013
autodesk autocad architecture 2012 grundlagen schulung selbststudium arbeitshilfe
microsoft windows 8 usb install
autodesk maya 2012 offline english documentation
adobe premiere pro cc download full version
edycja i obrbka zdj w programie adobe photoshop lightroom 3
adobe captivate 4 upgrade
acronis disk director suite 10 windows 7 download
lynda.com essential training maya 6.5
adobe indesign cs5.5 language pack
adobe creative suite 5 design premium host
chief architect premier x5 rutracker
que formatos de video acepta sony vegas pro 9
adobe captivate 5 download mac
zaxwerks plugins collection for adobe after effects cs6 mac
is adobe photoshop elements 11 64 bit
mathworks matlab 7.9 r2009b windows
key para instalar camtasia studio 8
adobe pagemaker 7.0 windows 7 64
acdsee pro 4 license key
will quarkxpress 8 run on mountain lion
quarkxpress 8 license server
pinnacle studio 14 ultimate collection hd full version
microsoft office powerpoint 2007 pdf
adobe illustrator cs5 classroom in a book exercise files
sony vegas pro 13 patch
adobe premiere elements 12 nl
microsoft internet explorer 8 for windows 7 64 bit download
ashampoo burning studio 8 magyar letlts ingyen
adobe creative suite 6 master collection pirate
vmware workstation 8 upgrade
sony movie studio platinum 12 windows 8
corel windvd pro 11 espaol
cyberlink powerdirector 9 za darmo
altova xmlspy 2009 key
microsoft windows embedded 8.1 industry enterprise msdn ita
adobe contribute cs4 update
avid media composer 5.5 training
nero 8 ultra edition 8.3 6.0 espaol
microsoft sql server 2008 enterprise cost
vmware workstation 9 cannot enter license key
sony vegas pro 12 563 download
adobe indesign cs5 keyboard shortcuts mac
descargar parallels desktop 6 para mac gratis
adobe acrobat x pro 64 bit download
adobe photoshop lightroom 5.2 portable
adobe flash cs4 professional gratuit
microsoft office excel 2007 training
roxio creator 2012 pro bak
autodesk building design suite ultimate 2014 service pack
microsoft office professional plus 2013 activator tpb
microsoft word 2013 quicksteps
adobe premiere elements 12 color correction
eset smart security 6 2013
descargar adobe premiere pro cs4 portable espaol gratis
corel aftershot pro documentation
digital painting in photoshop beginners
microsoft word 2013 key code
adobe dreamweaver cs4 buy
please wait while windows configures microsoft office standard 2007
sony vegas pro 12 vs movie studio platinum 12
picture yourself learning corel paintshop photo pro x4 pdf
microsoft windows xp professional sp3 retail
chief architect x2 basics
autodesk inventor view 2014 download
adobe dreamweaver cs5.5 manual
adobe photoshop elements 9 vs 10
corel videostudio pro x6 2014
dragon naturallyspeaking 11 premium mobile edition
adobe captivate 3 features

House Begins to Cut Defense Budget

The House Armed Services Committee (HASC) approved by a 60 to 1 vote their version of the 2012 Defense Budget. This is basically similar to what was requested by the Obama Administration and reflects the first real reduction to U.S. defense spending since the attacks of 9/11.

As in previous budgets it was split into three parts: first, the base budget which funds the U.S. military and its investment, production, training and support activities; second, the cost of “Overseas Contingency Operations” (OCO) which used to be called the Global War on Terror (GWOT) which are the costs associated with operations in Iraq and Afghanistan and finally it also includes money for the Department of Energy (DOE) support to the U.S. military which is primarily related to nuclear weapons.

The base budget was about $535 billion which was a slight increase on the $533.8 billion programmed in 2010 for such activities. Due to the fact that no 2011 budget was officially passed by Congress until late in the year the Department of Defense relied on continuing resolution which restricted spending to 2010 levels. When the final budget deal was struck funding the rest of the year total planned spending remained consistent with 2010 levels. The Obama Administration had requested $548 billion with almost $160 billion for OCO. This amount was not approved or provided.

The HASC bill approved amounts to a reduction as the OCO funding was reduced to only $119 billion from the $130 billion in 2010 and the $160 billion proposed in 2011. Total spending in 2012 based on the HASC will be $690 billion including the DOE funding of $18 billion. This is a net increase over 2010 but almost $20 billion less then the planned spending in 2011.

What does this all mean for defense contractors? If the House totals hold, and after the work with the Appropriations Committee and the Senate there may be many changes in what the money is spent on, it will be the first net reduction in U.S. defense spending in 10 years. This will mean that some contracts won’t get funded and some companies will see their revenue and earnings reduced.

The cuts to OCO mean those companies heavily involved in providing support and equipment for Iraq and Afghanistan will see the first cuts. The Army’s LOGCAP IV contract provides much of this support for deployed forces and companies like DynCorp International, Fluor and KBR have received large contracts as part of it. The reduction to OCO may affect LOGCAP and those companies involved in it.

It will also mean less bullets, beans and gas will be bought to support the troops in Iraq especially. Suppliers of basic items may see reductions in the amount of items purchased from them. This includes ATK who make ammunition as well as the various gasoline refiners and providers. As the fighting in Iraq and Afghanistan winds down the DoD will be concentrating on making new weapon systems and repairing and refitting the equipment used by the military in those operations.

If and when all of the U.S. and Allied forces return from the fight there will be no need for OCO funding at all. This seems to indicate that the base U.S. defense budget will sink to about $500 – $600 billion a year. This will provide opportunities for those companies providing new, advanced weapons as well as supporting the U.S. military in its bases in the U.S., Asia and Europe. The next round of cuts though will be to this base budget. That will affect the entire U.S. defense industry and may lead to reductions in the number of contractors either through M&A or just moving to other business lines.

Defense spending has been a major prop to the U.S. economy as a whole as it supports businesses and jobs across all of the states. If the civil market has not recovered sufficiently cuts to this money will have a negative effect on many local economies across the U.S. already being experienced as some contracts are eliminated or reduced.
This HASC vote may be the first step into a period like the Nineties which saw wholesale changes to the U.S. defense industry and the countries’ industrial base as a whole.

Photo from David Paul Ohmer’s Flickr Photostream.

Article first published as House Begins to Cut Defense Budget on Technorati.

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

>