NDIA NATIONAL LOGISTICS FORUM JUNE 13, 2013

HONORABLE ALAN F. ESTEVEZ | ASSISTANT SECRETARY OF DEFENSE LOGISTICS & MATERIEL READINESS

1

Sequestration and the FY14 Budget

Sequestration • $37B in cuts across the board • Furloughs of 11 days

President’s FY14 Budget Rollout • Asked for $526.6B

~7% higher than what we’re executing in FY13 at sequestration level

House and Senate Budget resolutions are similar

• Budget exceeds the Budget Control Act mandated budget cap by $50B, so could target another sequestration

• Overseas Contingency Operations Budget request is currently $79.4B

Strategic Choices and Management Review

2

3

Defense Budgets Past and Future (Base Budget)

250.0

300.0

350.0

400.0

450.0

500.0

550.0

600.0

650.0

700.0

FY 2001

FY 2003

FY 2005

FY 2007

FY 2009

FY 2011

FY 2013

FY 2015

FY 2017

FY 2019

FY 2021

FY 2023

PB12 (Submitted Feb 2011)

PB13 (Submitted Feb 2012)

PB14 (Submitted Apr 2013)

Sequester Continues

Then Year Dollars, Billions Discretionary Budget Authority

Total -$1,079B

Logistics After a Decade of War

CHANGING ENVIRONMENTS

RESPONSIVE ACQUISITION

LOGISTICS

4

5

Afghanistan Drawdown and Transition

Operational Contract Support (OCS)

6

Institutionalizing OCS for the future: Oversight to prevent

and detect fraud

Training for military overseeing contractors

Updated policy and doctrine

Better Buying Power 2.0

Incentivize Productivity

and Innovation in Industry and

Government

Control Costs throughout the Product

Lifecycle

Improve Tradecraft in Acquisition of Services

Achieve Affordable Programs

Government

Industry

Eliminate Unproductive Processes and Bureaucracy

Promote Effective Competition

7

Improve the Professionalism of the

Total Acquisition Workforce

8

Industrial Base

Industrial Base

Concerns: Loss of

Capability

Data Vulnerability

Counterfeit

QUESTIONS

9