Is the Pentagon Recession-Proof?

January 30th, 2009 - by admin

Janes & The Washington Post – 2009-01-30 21:32:47

http://www.janes.com/news/defence/business/jdw/jdw090130_2_n.shtml

Gates Warns Ethics Rules
Could Hurt Pentagon Recruiting

Caitlin Harrington / Janes

( January 30, 2009) — US Secretary of Defense Robert Gates questioned on 27 January [about] the growing push in Washington for ethics rules that limit the ability of government personnel to rotate between government and industry.

“All of us need to look at this to see if we’re not cutting off our nose to spite our face,” he told lawmakers at a Senate Armed Services Committee hearing to lay out his top priorities for the new administration.

Gates said the problem with ethics reforms aimed at closing the revolving door between government and industry is that it can prevent the most qualified people – those with years of management and budget experience in the private sector – from taking high-level government jobs in which that type of experience is highly desirable.

Such experience is particularly important when seeking to recruit senior acquisition officials, Gates said.

“These people manage billions of dollars and you need people with real-world experience to be able to make those decisions and those recommendations … getting people at that level and more senior levels, who have the credentials to be able to do the job, is very tough.”

[Longer version available to subscribers.]


Military Contractors Expect to Beat Layoff Trend
Wall Street Journal

(January 30, 2009) — Even as companies across the U.S. are laying off thousands of workers, defense companies expect to maintain much of the momentum they built up during the Bush administration’s sharp increase in weapons spending.

While defense-industry growth is cresting after the previous president’s military-budget expansion, some executives believe the industry might be able to extend its strong run into the Obama administration.

In part, executives are betting that the new president will be reluctant to slash weapons programs that are propping up employment in such hard-hit areas as manufacturing.
recruit senior acquisition officials, Gates said.

“These people manage billions of dollars and you need people with real-world experience to be able to make those decisions and those recommendations … getting people at that level and more senior levels, who have the credentials to be able to do the job, is very tough.”

[Longer version available to subscribers.]

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