{"id":32956,"date":"2015-12-02T14:54:39","date_gmt":"2015-12-02T14:54:39","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/12\/02\/kendall-disproportionate-cuts-planned-to-modernization-r-d\/"},"modified":"2026-08-07T22:44:18","modified_gmt":"2026-08-07T22:44:18","slug":"kendall-disproportionate-cuts-planned-to-modernization-r-d","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/breaking-news\/2015\/12\/02\/kendall-disproportionate-cuts-planned-to-modernization-r-d\/","title":{"rendered":"Kendall: &#8216;Disproportionate&#8217; Cuts Planned to Modernization, R&#038;D"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Clarification:<\/strong><em>Due to a quote being written down incorrectly,\u00a0an earlier version of this article&#8217;s fifth paragraph directly quoted Kendall speaking about the\u00a0Third Offset, but he actually used a pronoun.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The Pentagon expects to make &#8220;disproportionate&#8221; cuts to modernization and research and development funding in its fiscal 2017 budget request, while personnel and readiness remain stable, according to the department&#8217;s top acquisition official \u2014 cuts which may well include a slowdown in F-35 production.<\/p>\n\n\n\n<p>Those decisions could slow down <span class=\"rte rte-comment\">lead to a slow start in <\/span>the much ballyhooed &#8220;Third Offset&#8221; strategy, identified by Defense Secretary Ash Carter as key to maintaining America&#8217;s military technological dominance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking Wednesday, Frank Kendall, undersecretary for acquisition, technology and logistics, said &#8220;what you&#8217;ll see in &#8217;17 is disproportionate hits to modernization, R&#038;D and procurement.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While acknowledging that the budget deal reached by Congress was &#8220;much better than it could have been,&#8221; he still warned that the budget decisions will have an impact on the ability to push forward with the Third Offset strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Given the pressure on our budget and given the things we talked about earlier, the best we&#8217;re going to be able to do is to start the earlier phases of [the\u00a0technology programs that make up the Third Offset],&#8221; Kendall said. &#8220;We don&#8217;t have the money to make the major investments.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kendall&#8217;s comments match with those made by Comptroller Mike McCord on Monday, which warned that modernization is likely to get hit in the budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;I think that you&#8217;ll probably see one of the ways we&#8217;ll accommodate this $15 billion cut or so is there will probably be some slowdowns in modernization programs,&#8221; McCord said then.<\/p>\n\n\n\n<style>.oembed-asset-link { background: #fff; border-bottom: 1px solid #e1e1e1; }.oembed-link-anchor { display: block; clear: both; }.oembed-link-thumbnail{ float: left; padding: 14px; }.oembed-link-thumbnail img { max-width: 78px; max-height: 60px; display: block; }p.oembed-link-title { font-size: 75%; color: #009BFF; margin: 0 14px; padding-top: 12px; font-weight:normal; text-align: left; line-height: 120%;  }p.oembed-link-desc { font-size: 100%; color: #666; font-weight: normal; margin: 0 14px 14px 14px; font-family: 'Futura Today Light'; text-align: left; line-height: 120%; }<\/style>\n\n\n\n\n\n<p><span class=\"rte rte-comment\">[EMBED http:\/\/www.defensenews.com\/story\/defense\/policy-budget\/budget\/2015\/11\/30\/european-funding-fy17-budget-pentagon-russia-f35\/76565666\/ ]<\/span><br\/> Kendall concurred, adding later in his speech that &#8220;The disproportionate hits on &#8217;17 are going to be on modernization. I think that will probably be more on production than R&amp;D.&#8221;<\/p>\n\n\n\n<p>Asked after his speech if production of the F-35 joint strike fighter <span class=\"rte rte-comment\">was one area that <\/span>could be <span class=\"rte rte-comment\">see production <\/span>slowed down, Kendall indicated it was likely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The F-35 is not \u2014 it is impossible in these budget to entirely protect it, just put it that way,&#8221; Kendall responded. &#8220;Dollar for dollar, it probably gives us more combat capability than any other investment we&#8217;re making but we have a lot of other things that we have to do as well. So it&#8217;s not entirely fenced. I can&#8217;t say it&#8217;s entirely fenced [off from cuts].&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, he did say programs that make up the nuclear triad \u2014 the Ohio-class submarine, Long Range Strike-Bomber and new ICBM designs \u2014 would be a &#8220;priority&#8221; in the budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the hit going most to production, Kendall told the audience, hosted by the Potomac Officers Club, that he was &#8220;most concerned about R&#038;D&#8221; funding in the FY17 budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;If you don&#8217;t do the R&#038;D you won&#8217;t have a product at all,&#8221; Kendall said. &#8220;It&#8217;s a fixed cost. Once you take the R&#038;D out you are denying yourself future products, in any quantity, period.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After the event, Kendall stressed to reporters that the Pentagon has not finalized the budget decisions, but again reiterated his concerns over R&#038;D funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;We&#8217;re trying to fit as much of that in the budget as we can, at least to move the technology forward to position ourselves for starting EMD in a few years from now,&#8221; he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, the way the Pentagon uses R&#038;D may need to be reworked. Kendall said he is &#8220;getting worried&#8221; the Pentagon has protected its science and technology accounts too much as other parts of R&#038;D, in particular the accounts that fuel the new product pipeline, have shrunk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: <a href=\"mailto:amehta@defensenews.com\">amehta@defensenews.com<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Twitter: <a href=\"https:\/\/twitter.com\/AaronMehta\">@AaronMehta<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pentagon expects to make &#8220;disproportionate&#8221; cuts to modernization and R&#038;D funding in its fiscal 2017 budget<\/p>\n","protected":false},"author":7,"featured_media":12440,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":37,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[37],"tags":[],"coauthors":[3378],"class_list":["post-32956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news"],"acf":{"subheadline":"","legacy_arc_id":"5J5TNC7LRNCH7OJCJ6KI7VAMEQ","arc_canonical_url":"\/breaking-news\/2015\/12\/02\/kendall-disproportionate-cuts-planned-to-modernization-r-d\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- 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