Contractors Will Remain in Limbo During Debates Over Automatic Defense Cuts
January 18, 2012
"Fasten your seat belts," a panelist told Defense Department contractors ahead of likely sparring between lawmakers and the White House over the details of automatic budget cuts slated to hit the Pentagon in January 2013.
"Defense contractors are hostages in the showdown between the president and Congress over funding decisions on taxing and spending." John Cooney, a partner at Venable LLP law form and a former Office of Management and Budget general counsel, told a panel convened Tuesday by the Professional Services Council, a contractors trade group.
Despite the failure last fall of a group of lawmakers dubbed the super committee to agree on $1.2 trillion in savings, the Congressional Budget Office and the Office of Management and Budget have determined that no automatic cuts -- called sequestration under the 2011 Budget Control Act -- are necessary immediately.