Identifying and Mitigating the Impact of the Budget Control Act on High Risk Sectors and Tiers of the Defense Industrial Base: Assessment Approach to Industrial Base Risks

Report Number: SYM-AM-16-045

Series: Acquisition Management

Category: Defense Industrial Base (DIB)

Report Series: Symposium Proceedings

Authors: Lirio Avil

Title: Identifying and Mitigating the Impact of the Budget Control Act on High Risk Sectors and Tiers of the Defense Industrial Base: Assessment Approach to Industrial Base Risks

Published: 2016-05-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: Other Research Faculty

Full Text URL: http://acquisitionresearch.org/files/FY2016/SYM-AM-16-045.pdf

Keywords: Budget Control Act, Defense Industrial Base

Abstract:

The Department of Defense (DoD) requires insight into the risks that the Budget Control Act (BCA) is placing on the defense industrial base (DIB), particularly in those sectors that have been previously identified as critical and at high-risk of losing critical capabilities. The Office of the Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy (ODASD[MIBP]) has developed a methodology to identify the impact of budget cuts on the DIB. During 2014 and 2015, the MIBP identified capabilities provided by the DIB that were at high risk of being compromised or unavailable to the warfighter using the fragility and criticality methodology and implemented mitigation plans to sustain the industrial base. Funding to execute mitigation plans was included in the FY16 Presidential Budget. The MIBP created an assessment approach to evaluate the impact of the BCA on the DIB. Only the sectors and tiers previously identified as high risk were assessed. The framework evaluates the loss of design and manufacturing skills, loss of innovation, loss of competition, and loss of infrastructure. In addition, potential DoD steps to sustain high risk sectors, sub-sectors, and tiers under a BCA environment were identified. DoD leadership is using the results to inform resource decision making.