FROM THE AAE


FROM THE ARMY ACQUISITION EXECUTIVE THE HONORABLE HEIDI SHYU


In Hard TRUTH, NEW OPPORTUNITY


Changing times call for Army and industrial base to collaborate on solutions


Changing times call for Arm industrial base to collaborat


MISSION FOCUS


Soldiers assigned to 6th Squadron, 4th Cavalry Regiment (6-4 CAV), 3rd Brigade Combat Team, 1st Infantry Division launch a mortar Nov. 10, 2013, in Baghlan province, Afghanistan, during a training exercise. Even as fiscal and economic conditions change, the Army remains committed to providing the best equipment to the warfighter at the best value for the taxpayer. (Photo by 1LT Cory Titus, 6-4 CAV)


A


s we enter a new calendar year, the Army faces chal- lenges of an evolving fiscal reality and the transition from wartime production to peacetime requirements. Te Army and its industrial base must work together


to address these issues head-on. Te hard truth—sustaining readiness in this fiscally constrained environment—necessar- ily means fewer investments in the future. Budget uncertainty complicates the procurement landscape, but communication and cooperation will allow the Army and industrial base to meet our respective goals.


Defense spending is projected to make up only 12 percent of the federal budget in FY17, down from 17 percent in FY13. Tose numbers are a world away from the 49 percent of the federal budget consumed by defense during the 1960s. At the same time, the budget for research, development and acquisi- tion (RDA) is declining faster than the overall defense budget.


Nothing highlights this more concretely than the Army’s total obligation authority (TOA) for FY14, which, at $129.7 billion, is 15 percent lower than the FY12 Army TOA of $152.6 bil- lion. Compare this to the FY14 Army RDA budget of $23.95


ASC.ARMY.MIL


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FROM THE AAE


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