White House Wants Funds for New Industrial Base Support Program

The White House's budget request for fiscal year 2014 includes $14 million for the Defense Department to start a new program aiming to help defense companies manage breaks in production.

This program also intends to help defense vendors avoid reconstitution costs for capability after either a defense procurement hiatus for a large program, according to Inside Defense.

Vendors would receive assistance on working with producers during a production break, the report said.

Citing budget documents, Jordana Mishory writes the Pentagon would prioritize industry projects that support multiple programs or services that do not have a specified primary beneficiary.

The Pentagon would use tools to examine the defense industrial base by sector and by tier to follow potential problems with suppliers in case some acquisition programs do not have enough investments in production or research, Mishory reports.

Multiple services and agencies can collaborate with the Pentagon to intervene and mitigate risks to the defense industrial base, Mishory writes.

Leave a Comment

Leave a comment

Leave a Reply