Pentagon: No More Big Defense Mergers
The Defense Department will try to stop consolidation among the nation’s biggest weapons contractors, who are bracing for potentially far-reaching cuts in defense spending because of the nation’s yawning budget deficit, a top Pentagon official said in an interview.
Ashton Carter, the Pentagon’s top acquisitions official, said he expected the defense industry to go through a period of profound change as it adjusts to a new era of austerity. But he cautioned that the department would take steps to prevent mergers and acquisitions within the ranks of major defense contractors like Raytheon and Boeing, whose numbers have fallen sharply since the end of the Cold War.
“We would not allow any further mergers of the big ones,” Carter, the Pentagon’s undersecretary of Defense for acquisition, technology, and logistics, told National Journal . “On occasion we will intervene by blocking a transaction if we thought it was excessively short-term focused and had done a poor long-term risk analysis.”
In 1993, during a very different era for defense contracting, Carter was one of the participants at what became to be known as the “Last Supper.”
Then-Defense Secretary Les Aspin summoned the chief executive officers of the nation’s 15 biggest defense contractors to the Pentagon and bluntly told them they needed to start consolidating.
Carter, who served as an assistant secretary of Defense during the Clinton administration, noted that the industry had roughly 40 major players during its Cold War peak. Within a few years of the Last Supper, the industry had shrunk to barely a half-dozen large companies players. In the interview, Carter said the number of major defense firms shouldn’t be allowed to fall any further, particularly since the coming cuts won’t be as pronounced as had been the case after the end of the Cold War.
“It won’t be like in the 1990s,” he said. “I don’t expect [the industry] to contract any further.”
Still, Carter said it could no longer be business as usual at the Pentagon. The Defense Department’s base budget has nearly doubled since 2001, but the Obama administration and Congress have made clear in recent months that the Pentagon budget will be held steady—and possibly even cut—in the years ahead. On Monday, for instance, the House Armed Services Committee recommended cutting $9 billion from the department’s fiscal 2012 request. In the interview, Carter said the department will work to reduce the $200 billion it spends each year on logistics and maintenance by about 5 percent, savings he described as “real money.” He estimated that such efficiencies could save the department as much as $100 billion in coming years.
Blocking And Bracing - News
The Defense Department will try to stop consolidation among the nation's biggest weapons contractors, who are bracing for potentially far-reaching cuts in defense spending because of the nation's yawning budget deficit,
WMO said the abnormal weather was caused by a persistent ridge of high pressure over western and central Europe, blocking more normal patterns of rainfall and temperature. "This situation is climatologically a very stable constellation,
Because for as much as Bosh plays sound defense, he doesn't disrupt very much by being physical or actually blocking shots. At least not Nowitzki's shots. Joel Anthony is one of those. He has successfully made like difficult for Thaddeus Young,
At Forsyth County's Adult Division, Director Diane Wimmer is also bracing for the spillover of the Medicaid-program changes. "We are just starting to get calls from those that were notified, wondering what they can do now," Wimmer said.
Los Angeles authorities are bracing for a full-blown traffic nightmare when a section of vital I-405 undergoes a weekend closure this summer. County Supervisor Zev Yaroslavsky said Monday that motorists should stay away from the area to prevent what he
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Blocking And Bracing - Bookshelf
Inland and maritime transportation of unitized cargo, a comparative economic analysis of break-bulk and unit load systems for maritime general cargo from shipper to consignee
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Blocking and Bracing
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