DOD Invoice Modifications to Add $3B Cash Flow to Industrial Base
Posted on Apr 20, 2020 06:58 pm
Pentagon acquisition officials expect that temporary changes to its invoicing processes will help pump $3 billion into the defense industrial base to support the supply chain during the COVID-19 crisis, the undersecretary of defense for acquisition and sustainment said Monday.
“We continue to carefully and methodically track the state of the defense industrial base,” Ellen Lord said at a Pentagon press conference.
She encouraged the largest contractors to ensure that is shared down the supply line to their smaller vendors, as Boeing and Lockheed Martin have committed to doing. Lord said those assurances will not be immediately monitored but will be tracked through DOD’s standard auditing process.
As the Pentagon shifts to supplying medical supplies and monitoring public safety, its weapons acquisitions will likely be on hold for about three months, Lord said.
“We follow very carefully where the highest number of cases are throughout the country,” Lord said. “We look at the defense industrial base, where they are located, so we try to anticipate the problems and work with the companies to keep going to the greatest degree possible,” Lord said.
Congress provided DOD an additional $1 billion in acquisition funding. Lord said $750,000 of that will be used for items such as medical equipment, pharmaceuticals and test kits. The remainder of the funding will go toward other needs such as ground systems, munitions and aircraft.
DOD photo by U.S. Air Force Staff Sgt. Jack Sanders
Post courtesy of the Association of Defense Communities