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#KEM Quarterly on Defense: FY2018 PBR – Fixing Military Readiness First, then Military Growth

The President’s Fy2018 Budget Request (PBR) was delivered May 23, 2017 focused on rebuilding the U.S. Armed Forces according to the following themes:

  • Improving warfighter readiness
  • Address evolving national security challenges
  • Recapitalize and modernize nuclear enterprise
  • Prioritize key investments in cyber and space capabilities
  • Focus on innovation to maintain technological advantage
  • Sustain the finest fighting force in the world
  • Identify reforms to improve efficiencies and achieve savings
KEM Defense Quarterly_Jun 2017

Featured Image Source: Defense.gov

The #KEM Team Supports Washington Defense Week 2017

KEM Team at Norwegian Ambassador’s Residence: Lauren Longwell, Denise Holmes, Ken Miller, and Dave Carlson (from left to right)

#KEM was Proud to Attend, Support, and Present at a Full Week of Norwegian-American Defense-Industrial Activities in the Heart of the World’s Largest Defense Market!

  • Participated in the NADIC B2B Matchmaker meeting series, aimed at developing Norwegian-American business relationships
  • Presenter at Kongsberg Defense Systems Seapower Conference

#KEM’s Ken Miller & ADM Nathman are honored to support #NADIC’s Vidar Skjelstad at #NADIC2017

In the face of significant security landscape shifts, #KEM’s team is honored to continue supporting NADIC in order to build and sustain Superior, Mature, Agile, Ready & Technological driven (SMART) alliances. 

 

#KEM Continues to Monitor the 2018 “Skinny Budget” and Its Prospects of Getting Through Congress

Able to Strike a Defense Balance? Defense Increases for 2018, $30 Billion Supplemental for 2017

Proposed Changes to Agency Discretionary Budgets in 2018 (Bloomberg Politics)

President Trump released his 2018 Budget, known as “the skinny budget” in Washington, which includes defense spending of $639 billion, including $65 billion for ongoing emergency war-fighting. This represents a $54 billion increase in defense spending, to be offset by corresponding reductions to non-Defense programs. In addition, the Trump Administration sent a $30 billion 2017 defense supplemental budget request to add $25 billion into 2017 Department of Defense base budget bringing it to $576 billion and adding $5 billion to the emergency wartime spending fund.

#KEM continues to monitor the 2018 “skinny budget’s” prospect of getting through Congress as it seems to not please the left, middle, and far right.  In addition, #KEM continues to track the extent to which budget deliberations ultimately strike a balance between readiness, modernization, and acquisition programs to support the base-budget programs, cyber and intelligence, and counter terrorism capabilities of the current defense strategy.  The full budget will be released in May and needs Congressional approval to become law.

Katherine Blakeley, research fellow at the Center for Strategic and Budgetary Assessments (CSBA) on the Defense and Aerospace Report: CSBA Blakely on Trump Budget Proposal

Featured Image (Defense.gov)

#KEM 2017 Letter From President: Focus on Cyber Defense and International Markets

“KEM and Associates’ vision is to solve complex problems for our U.S. and Global Aerospace, Defense, and Supporting Commercial Clients.  We are dedicated to the highest standards of performance and ethics advising our clients on a solid strategies achieving their full growth potential.  We are extremely proud of all that our KEM Partners have accomplished together this past year, and we look forward to building on our joint success together.”  — Kenneth E. Miller, CEO and President KEM and Associates LLC

KEM Letter from the President

KEM 2017 Letter from the Presidentv2

 

 

#KEM Supports US and Norway’s Expanding Alliance: Proud Norwegian-American Defense and Homeland Security Industry Council (NADIC) Member

KEM Team at the NADIC Navy League Sea Air Space Show Booth 2016

KEM and Associates LLC is committed to strengthening relationships between the United States and Norway.  KEM employs our strategy practice to support strengthening maritime-surveillance alliance, developing the best capabilities, and expanding strategic relationships to provide dependable situational awareness and collaborative operations.  We look forward to continued work with our strategic partners to strengthen the operational capability, deepen U.S.-Norwegian relations, and stay committed to global security.

NADIC’s purpose is to strengthen relations between the United States and Norway.

NADIC seeks to enhance existing relationships by promoting awareness of capabilities, products and services offered by the Norwegian defense and security community.  NADIC is a trade association that has been established to develop and promote the business and commercial interests of the Norwegian/American defense and homeland security industries within the United States. It studies relevant opportunities and facilitates stronger ties between Norway and the U.S., while encouraging a “fair” competitive environment in U.S. markets.

#KEM is a Proud Member of NADIC.

The KEM executive leadership team looks forward to once again attending NADIC’s signature event, the Norwegian-American Defense Conference 2017.  This conference will be held at The National Press Club, Washington D.C., on April 6, 2017.  Our team with key partners will continue to collaborate with representatives from the American and Norwegian industries, military, and government to discuss opportunities for improved bilateral relations between the U.S. and Norway.

#KEM Quarterly on Defense: What is a Continuing Resolution & Why Does it Matter?

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#KEM with top defense budget experts continues to monitor the start of FY 2107 on 1 October with DoD and the wider federal government’s funding from yet another continuing resolution (CR) through the opening months of the fiscal year.

Congress approved a simple stop-gap budget measure, the CR, on 28 September 2016 to keep DoD funded when FY 2017 began on 1 October.  The timing of this CR creates even more constrained and uncertain budget conditions further impacted by the ongoing impacts of sequestration, the November elections, and the inauguration and change of administrations in January 2017 with the attendant turnover of key personnel.

So What is a Continuing Resolution & Why Does it Matter?

kem-defense-quarterly_oct-2016

 

(Feature Image, “Today’s Word” Source: www.whitehouse.gov)

#KEM Quarterly on Defense: FY 2016 Defense Budget Strategy vs. “Agile, Efficient, Ready & Lethal” U.S. Forces

KEM continues to monitor and work with partners on the FY 2016 Defense Budget Strategy’s ability to ensure that U.S. Armed Forces are “agile, efficient, ready, and lethal” and able to sustain national defense capacities in a complex and unsafe world.

This ability is eroding due to a combination of (but not limited to) the following:

  • Acquisition system dysfunctions and growing budget uncertainty (Sequestration, BCA Caps, CR again & using OCO to fill the gaps
  • Emerging and unprecedented global threats including sophistication of cyber capabilities and military intelligence
  • Rapid technology changes and a closing technology gap
  • Required 21st Century U.S. DoD personnel reforms
Ashton Carter

Secretary Carter, 10/14/2015 (Defense.gov)

As Defense Secretary Ash Carter remarked at the Association of the U.S. Army in Washington, D.C., October 14, 2015, “We cannot as a nation allow this to become the new normal,” he said. “In today’s security environment we need to be dynamic and we need to be responsive. What we have now is a straitjacket.”

Add to this that for the 7th year in a row Congress has failed to pass a defense appropriations bill while for 4 years The Department of Defense (DoD) has worked against sequestration impacts, as noted by Secretary Carter, further impacts DoD’s ability to preserve agility and responsiveness.  In addition to providing for the common defense, it is key for the U.S. to provide funding for identified platforms and programs noted in the National Defense Authorization Act for Fiscal Year 2016  above and beyond the necessary operations and maintenance activities.

The National Defense Authorization Act for Fiscal Year 2016 is a bill that does not appropriate funding but sets the funding.  The NDAA creates the authority to spend money on a wider range of programs across the different services; however, due to the continuing resolution (CR) passed on 9/30/2015, this stop gap measure keeps spending at FY 2015 levels with a slight bump due to the temporary war fund.

KEM continues to monitor and work with partners on the FY 2016 Defense Budget Strategy especially over the next week as the President is expected to veto the NDAA FY 2016 mainly due to funding concerns in the overseas contingency operations (OCO) account.

KEM DEFENSE QUARTERLY – October 2015: 

kem-defense-quarterly_oct-2015

 

 

#KEM Congratulates Vice Admiral Jospeh P. Aucoin & Thanks for invite to U.S. 7th Fleet’s Change of Command (Japan)

With great pride, KEM congratulates Vice Admiral Joseph P. Aucoin as he assumes command of the U.S. Seventh Fleet on September 7, 2015.

7th Fleet Invite

With an understanding of the complexities of the Asia-Pacific region, Ken Miller, CEO, KEM and Associates LLC, highlights:

“Vice Admiral Aucoin is a good friend and strategic, high performance leader. He will add tremendous capability for the U.S. Navy while supporting the long term commitment to the Asia-Pacific rebalance. It was a true honor to be invited to Japan for his Change of Command.”Kenneth E. Miller

The selection of U.S. defense leaders for this region, such as Vice Admiral Aucoin is key as DoD focuses on the Asia-Pacific rebalance and its forward presence.

(U.S. Navy photo by Mass Communication Specialist 1st Class Joshua Karsten/RELEASED)

These efforts focus on building relationships, alliances, and modernization of maritime capabilities in order to secure U.S. interests and leadership globally and respond rapidly to maritime crises in the 21st century.

To learn more about the DoD’s three Asia-Pacific region maritime objectives to build greater regional capacity and mitigate risk by:

  • Safeguard the Freedom of the Seas
  • Deter conflict and coercion
  • Promote adherence to international laws and standards

Check out the Asia Pacific Maritime Security Strategy

Asia Pacific Book Cover

#KEM’s 4th of July Defense Spotlight: New National Military Strategy & Defense Acquisition Reform Focus

KEM’s Defense Spotlight:  New National Military Strategy & Defense Acquisition Reform Focus
 
KEM has been monitoring the drivers in the release of the new National Military Strategy and heightened focus on acquisition reform.  Experts in the defense and acquisition field point to a global security crisis reflecting simultaneous security challenges increasing for the long term.  The United States faces 1) increasing global threats from near peer to militant groups combined with, 2) cyber espionage growth, 3) budgets caps & cost overruns, 4) and technology superiority erosion.  This dangerous reality, the warfighter’s advanced capability needs, and our outdated acquisition system have created an urgency for the roll out of a new National Military strategy and created an innovation opportunity in Defense Acquisition Reform to position the United States “to protect and advance U.S. national and security interests”.
 
As KEM focuses on this new strategy & reform, we celebrate Independence Day – sharing our gratitude with our service members and their families that do so much to keep our nation safe.  We are reminded always that America’s freedoms do not come without sacrifice or cost.
Flag and fireworks-American fourth of July
To Learn More about the design for how the U.S. military will utilize resources to protect & advance:   http://www.defense.gov/news/newsarticle.aspx?id=129191
 
For a Spotlight on Acquisition Reform, here is Senator John Cornyn’s Speech on Defense Acquisition Reform at the Lexington Institute’s Capitol Hill Defense Acquisition Reform even on June 24, 2015:  http://lexingtoninstitute.org/senator-john-cornyns-speech-on-defense-acquisition-reform/
 

#KEM Global Market News: Whiskey, Middle East & Putin

LATEST NEWS AND INSIGHTS FROM KEM’S GLOBAL MARKET:

  • Cheers to our Partner’s Success!  Boston Harbor Distillery Ribbon Cutting 
  • Emerging Defense Trends – $110 billion in Middle East Opportunities
  • Recommended Thought Leadership – Putin & Russian Literature with our friend ADM Stavridis

#KEM PARTNER’S SUCCESS

All roads – even KEM’s Washington D.C. road – leads to Boston Harbor Distillery!  

Congratulations to our partners at BHD on this successful journey & Ribbon Cutting.  CHEERS!

Follow us at @KEMllc on twitter to learnmore about our Strategy & Leadership:  Business Development Services

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#KEM EMERGING DEFENSE TRENDS

The Middle East is likely to present $110 billion in military-export opportunities in the coming decade per Bloomberg.com. Check out the latest #KEM Defense Trends:

http://www.arabianbusiness.com/saudi-arabia-said-raise-military-spending–60bn-by-2020-594944.html

(Photo for illustrative purposes only)

The Gulf kingdom is forecast to boost its arms budget to $60 billion by 2020 from a current level of $49 billion, following a slowdown in the short-term caused by the lower price of oil, reported Bloomberg which cited the study.

Follow us at @KEMllc on twitter to learn more about our Global Network

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#KEM THOUGHT LEADERSHIP

Insightful thought from Ken Miller’s (CEO of KEM) friend, retired ADMIRAL Stavridis, that Russia’s great authors put the country’s aggression in context better than an intel briefing:

What Russian Literature Tells Us About Vladimir Putin’s World

What Russian Literature Tells Us About Vladimir Putin’s World

James Stavridis is a retired four-star U.S. Navy admiral who serves today as the dean of the Fletcher School of Law and Diplomacy at Tufts University.

Follow us at @KEMllc on twitter to learn more about our Thought Leadership

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