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Frank Kendall: Sequestration Means 11% Line Item Cuts, R&D Included

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Frank Kendall

If sequestration cuts take effect in January, the Defense Department would have to uniformly cut 11 percent uniformly from each of its estimated 2,500 budget items, Pentagon acquisition lead Frank Kendall recently said, according to Reuters.

Kendall made the remarks Wednesday at the ComDef defense industry conference, Jim Wolf and David Alexander report for Reuters.

Military pay is exempt from the sequester, the report says.

The sequestration cuts to defense, totaling at least $500 billion over the next decade, would come on top of the $487 billion the Pentagon is required to cut over that same timeframe.

Cuts under sequestration would affect the Pentagon’s investment accounts covering weapons purchases and research and development contracts.

Those funds contribute to earnings of major contracting firms such as Boeing, General Dynamics, Lockheed Martin, Northrop Grumman and Raytheon, according to the report.

According to Kendall, the most likely scenario is Congress will approve a six-month continuing resolution to temporarily head off sequestration.

Wolf and Alexander report lawmakers are discussing ways to delay the sequester, or at least the defense half of it.

Lockheed Martin Corp, Boeing Co, Northrop Grumman Corp, Raytheon Co and General Dynamics

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