25 March 2015

HOW CONGRESS IS HAMSTRINGING THE DEFENSE INDUSTRIAL SECTOR

March 24, 2015 

Since 2010, the Department of Defense has been stuck grappling with a rising tide of uncertainty, as changing events continually throw carefully laid plans into chaos. Unfortunately for the Pentagon, the source of this uncertainty isn’t China or the Islamic State, but Capitol Hill. The past several years have seen government dominated by a Congress unable or unwilling to pass funding legislation absent some sort of crisis or looming deadline. Congress’s failure to provide predictable spending and planning information has created uncertainty that has put unnecessary strain on the defense industrial base. This failure has stymied competition and innovation by making doing business with the Department of Defense less attractive. It has driven up costs through delayed and disrupted delivery schedules. Finally, Congress’s inability to work through regular legislative procedures and agree to levels of funding through a normal budget and appropriations process led to the implementation of the 2011 Budget Control Act and, eventually, sequestration. In the aftermath of the 2014 elections, leadership in both the House and the Senate seemed committed to restoring “regular order” and working through the normal budget process. However, internal tensions in the Republican caucus in both chambers, combined with a Democratic White House, make it extremely difficult to see how a budget resolution and all twelve appropriations bills will make it through the legislative process and be signed into law.

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