CONTINUING RESOLUTION WOULD FORCE DOD PROJECT CANCELLATIONS

Approximately 50 programs designed to strengthen the Air Force in some way would face postponement and possible cancellation if DOD starts the 2016 fiscal year under a Continuing Resolution, as currently seems likely.  Should each service branch face similar issues, over 150 national defense projects of some importance would be at risk.  Cuts would cause degradation of national security overall and lead to reduced projects on which contractors would be able to work.  For the Air Force, the reduction would come at a time when it is trying to increase overall strength from 483,000 to 492,000 airmen, having concluded it has taken far too many personnel cuts to meet its missions.  The Army has previously announced substantial cuts in the size of its ranks and several Navy surface ship programs are known to be at risk for cancellation.  There is little contractors can do to get Congress to pass key appropriations bills on time and avoid a CR.   Instead, companies need to prepare as best they can for the possible cuts.  This means honest and frequent discussions with current and potential customers as well as internal planning to re-program resources or make decisions about how and where offset business will be found.  Don’t even get us started on a possible sequestration.