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Army Warns of Nunn-McCurdy Breaches Under Budget Cuts

Army officials warned yesterday that progress the service made to improve its wayward acquisition programs could be hampered by potential “sequestration” budget cuts. Army Secretary John McHugh predicted if Congress does not prevent those spending reductions, of $500 billion over a decade, from starting next year the Army would have to “declare Nunn-McCurdy breaches on hundreds, if not thousands, of contracts.” Such breaches occur when weapon systems’ unit costs rise to a level requiring a reanalysis and recertification of the programs under…

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Congress Updates

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