Type: Law Bulletins
Date: 09/25/2013

FY 2014 Sequestration Impact on Support Contractors

A House Armed Services Committee hearing was held on Sept. 18, 2013, to discuss the military services’ preparation for sequestration in FY 2014. During the hearing, the heads of all military services testified that they are seriously considering cutting contractor support in FY 2014 as a way to save money under sequestration:

  • Although the Navy has already reduced its number of support contractors, they continue to be factored into the Navy’s goal of reducing overhead by 28 percent.
  • The Army’s plan to reduce its headquarters budget by 25 percent includes a reduction in knowledge-based and other types of contractors.
  • The Air Force is in the same situation as the Army.
  • The Marine Corps is “looking very seriously at contractors” to make cuts commensurate with those made in its civilian workforce.

Although the service heads noted the danger of losing highly-skilled professionals, they consistently testified that a reduction in contractor support is a serious possibility. Support contractors who made it through FY 2013 with little impact from sequestration should be aware that they may not be as fortunate in FY 2014.

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