Pentagon Buyers Authorized to Discuss Budget Cuts with Industry

February 21, 2013

The Pentagon's top weapons buyer on Thursday authorized Defense Department purchasers and program managers to begin talking to industry partners about plans for implementing $46 billion in budget cuts on March 1 and what impact it may have on business.
The directions from Frank Kendall, the undersecretary of defense for acquisition, were the first time Pentagon contracting and acquisitions personnel have been authorized to consult with their industry counterparts about the upcoming spending cuts, known as sequestration.

Kendall said in a February 21 memorandum obtained by Reuters that Pentagon purchasers and program managers were "encouraged" to begin making contact with industry counterparts at the discretion of their managers and chains of command.

"It is important we keep industry informed about our plans and involved in our decision-making process to the maximum extent possible, particularly when ongoing or upcoming contract awards may be affected," Kendall said in the memo.

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