Quick Hit – December 5, 2014

Update on where we are today with defense bills: NDAA passed the House this week 300-119, authorizing $585B, split as roughly $521B for defense and $64B for Overseas Contingency Ops. The authorization bill is the result of a House/Senate conference and should pass the Senate easily as soon as next week.

The combined Omnibus / CR or “cromnibus” is gaining momentum. It is expected to originate in the House next week and would fund the government for the full year via the “omnibus” portion of the bill; DHS funding would be an extension of the FY14 Continuing Resolution into March 2015. The CR for DHS is a direct response to President Obama’s recent executive actions on immigration.

CI has fielded some questions regarding the impact of sequestration on the bills in motion. Recall that the Balanced Budget Agreement (Ryan-Murray), passed in December 2013, provided temporary relief from sequestration through 2015. The NDAA and “crominbus” being debated this week and next reflect this temporary relief.

Without legislative relief in FY16, we will return to the previous sequestration formula from FY16-FY23. As recently as this week, leaders in Congress and DoD highlight the need for some form of compromise on sequestration in FY16. Incoming SASC Chairman McCain, HASC SeaPower Chairman Randy Forbes and OSD CAPE Director Morin all suggest in public forums that a compromise can be achieved. More to follow throughout the next year on this topic.

Repeat alert from previous Quick Hit

Looking forward for FY16 and FY17 opportunities

– The window is all but closed to get your product or program into the FY16 President’s Budget before it arrives in Congress in February 2015.
– FY17 budget drills are well underway in the Executive branch.
– How does your plan for FY16 and FY 17 align with the budget process?

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