#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

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


#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?



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#KEM Quarterly on Defense: 2016 Defense Trend & 2017 Budget Request

With 2017 defense budget request release ($582.7 billion base budget and overseas contingent operations, 2/2/2016) & the President’s last State of the Union address (1/12/2016), it is key to take a moment for the A&D market to reflect and understand the trend for the rest of the year and his administration.

2017 Defense Budget Proposal


As #KEM looks to the future and growing global challenges, we focus on Secretary Carter’s comments regarding trade-offs between force structure for modernization to support the U.S.’s technological innovation edge across air, land, sea, cyber, space, and electronic warfare.

Carter further outlined five challenges for budget planning including Russia, China, North Korea, Iran, and terrorism that will focus DoD for FY 2017.

SD spoke at the Economic Club of Washington, D.C.


“Where trade-offs among force structure, modernization and readiness posture needed to be made, we generally pushed to favor the latter two. This is important, because our military has to have the agility and ability to win not only the wars that could happen today, but also the wars that could happen in the future,” SECDEF Carter, Economic Club of Washington.


#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 (

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 Quarterly on Defense: President’s DoD FY 2016 Budget Proposal & Sequestration Impacts

The President’s DoD FY 2016 DoD Budget Proposal (PBR) provides $534B for the base budget and $51B in Overseas Contingency Operations (OCO) funding for a total of $585B. 

The PBR strives to reverse the decline in national defense spending over the past 5 years in order to counter threats while ensuring force readiness, capacity, capability & modernization.

KEM believes Sequestration’s funding levels degrade military readiness, force size & lives of our troops.


#KEM Quarterly on Defense: DoD Current Landscape

KEM experienced an exciting October providing Strategic Training Services globally focused on an Overview of Defense Trends, Winning Capture and Competition Processes and Strategic Business Development.

Our training focuses on accelerating our client’s growth while supporting the warfighter and strong National Defense.

KEM Defense Quarterly


The KEM team is looking forward to a successful remainder of 2014.