Current DOD contracts will not be cut for savings

Cuts will come from unexercised options, not making new awards

The Defense Department will not cancel contracts if sequestration happens, but will instead refrain from funding contract options and from awarding new contracts, according to

Even with employee furloughs, the department will continue making payments on current contracts on time, a top Defense Department official said. These furloughs could save the department between $4 billion and $5 billion, but since the department needs to cut a total of $45 billion to $46 billion if sequestration occurs, most of the cuts will have to be taken in other areas, FCW said.

“There will be very substantial effects on the private sector as well,” said Defense Department Controller Robert Hale as saying. The department issued a notice on Feb. 20, which served to begin a 45-day countdown to when the furloughs can begin. This will be followed by a 30-day notification, sent to all employees who may face furlough, in March.

Reader Comments

Mon, Feb 25, 2013

Interesting headline and totally false....tell the 30+ people at my company (I'm not one so this comment isn't related to being personally impacted) who will lose their jobs on Thurs specifically because of the combination of sequestration and the CR and the TOTAL failure of leadership in the federal government that "Current DOD contracts will not be cut for savings."

Mon, Feb 25, 2013

Given the military maintains a permanent base with 50,000 troops in Germany (why?), and squanders 60,000,000,000 per year maintaining the ability to kill everyone, everywhere, in under a half hour, it's pretty obvious it's past time to review their insanely dangerous, immoral, and expensive spending. We need to move them from 'world domination' to 'self defense.' Expect a long term savings of at least 80%. If we should ask why borrow $1 to support Big Bird, we should ask which of the 50,000 troops in Germany is doing *anything* we should borrow from China for, and under what circumnstances would extinguishing the light of humanity forever (with our 5,000 nukes) be good foreign policy.

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