Dream Team - The awaited hour may have arrived as the Pentagon finds Capitol
Hill allies in the right positions to increase the defense budget. Reps. Tom
DeLay (R-TX) and Bob Livingston (R-LA) have established a "good working
relationship," but DeLay is viewed as "the man to see on the nitty
gritty," according to congressional observers. Both men are expected to
keep budget hawks at bay, with Speaker Livingston and his former appropriations
committee colleagues Bill Young (R-FL) and Jerry Lewis (R-CA) pulling to win
over moderate Democrats...
May I Buy an R? - Pentagon observers expect the Defense Department's Fiscal
Year 2000 funding to equal its Fiscal Year 1999 budget, including the almost
$9 billion increase that Congress pushed through at the end of last session.
However, much of the extra funds will be spent on recruitment, retention, retirement,
and readiness initiatives. As a result, the procurement budget may not receive
the expected boost to $54 billion.
Purse Strings-Sen. Ted Stevens (R-AK), chairman of the Senate Committee on Appropriations,
is leaving the chair on the defense appropriations subcommittee to Sen. Thad
Cochran (R-MS), according to congressional watchers.
Run the Bases - Operations at all four bases in the Army Test and Evaluation
Command (TECOM) are being assessed for possible outsourcing, Maj. Gen. Edward
L. Andrews, commander of TECOM told industry executives at the Army Small Business
Conference in McLean, Virginia. He said all jobs are on the table, although
he joked that his job is safe.
Joint Strike Finances - If the Pentagon can build the joint strike fighter
(JSF) for less than $30 million a copy, the plan is to buy these airplanes "like
you buy a TV," says the military program manager. "If it's lasted
20 years and is not broken down, you've got your money's worth. Then you throw
it away."
Maj. Gen. Michael A. Hough, USMC, program manager of the joint strike fighter
believes the government will save billions of dollars if it can pull off this
program. The reason is that JSF will drastically cut back on maintenance requirements,
he told a conference on expeditionary warfare in Panama City, Florida, sponsored
by the National Defense Industrial Association.
Embedded Disaster - Rep. Stephen Horn (R-CA) gave the Pentagon a "D-"
for its handling of the Y2K problem in the last quarter of Fiscal Year 1998.
"The Defense Department must focus on its embedded chip problem as well
as its strategic systems," said Horn, who regards the issue with "zero
tolerance for error when you are dealing with the defense of the nation."...
Pay Now, Not Later - Delays in federal payments are slowing the cash flow of
many defense companies, and many industry chiefs are worried that Y2K will turn
the situation into chaos, when all payments stop. "I wouldn't be surprised
if Congress looks into the situation soon," said a Hill insider.
Our Cousins Across the Pond - There is an increasing sensitivity to
trans-Atlantic mergers. U.S. businessmen say they could be frozen out of the
European market unless they become part of the mergers, acquisitions, and joint
ventures being formed there. Protecting technology and working with state-owned
companies are formidable barriers to overcome for full integration into the
market.
Produce Weapons of Mass Destruction - The United States should produce
biological weapons, according to Dr. Hans Mark, director of the
Defense Research and Engineering Office. These weapons would not
be offensive, he told defense reporters, "but my view is that
we have to understand how they work." He explained that defensive
systems can only be made when the weapon is known and understood.