By Geoff Fein
Deputy Secretary of Defense Gordon England earlier this week issued a memorandum outlining criteria for determining which activities will continue as exempt from shutdown, and which must cease operations, in the absence of FY ’08 supplemental funding for the Global War on Terror (GWOT).
“Our fiscal challenge will not be resolved until an adequate GWOT supplemental appropriation is enacted by the Congress and signed by the President. While the Secretary and I have every expectation of receiving adequate appropriations, it is prudent to begin planning for possible exhaustion of the Department’s Military Personnel and Operation and Maintenance (O&M) appropriations,” England said in his June 10 memo.
Congress has yet to appropriate FY ’08 supplemental funding for the GWOT.
This week, Congress signed off on part of the Pentagon’s reprogramming request to internally shift billions of dollars in the absence of a war supplemental funding bill. The Pentagon asked lawmakers May 27 for permission to shift $9.66 billion to cover Army personnel and operational costs as it waits for the supplemental funds (Defense Daily, June 12).
The Pentagon has been warning that the Army personnel account would run out of funds to pay soldiers by June 15 without the internal rejiggering.
The House Armed Services Committee (HASC) and Senate Armed Services Committees (SASC) both approved the full reprogramming last week. However, the House Appropriations Defense subcommittee (HAC-D) and Senate Appropriations Defense subcommittee (SAC-D) agreed last week to allow the Pentagon to reprogram $5.7 billion–the full amount of one of the reprogramming requests, intended to cover uniform personnel’s pay. The money shift, that has already gone through, moves the funds from Navy and Air Force personnel accounts to Army and Army National Guard accounts (Defense Daily, June 12).
England noted that the Comptroller has submitted to Congress reprogramming requests that would realign funds into accounts at the highest risk for depletion. “These reprogramming requests will only delay exhaustion of funds,” England added.
England assured personnel the Department of Defense (DoD) will continue to prosecute the GWOT and prepare forces for deployment into that conflict.
“The [DoD] must, as well, continue many other operations necessary for the safety of human life and protection of property, including operations essential for the security of our nation. These activities will be ‘exempt’ from cessation; all other activities would need to be shut down in an orderly and deliberate fashion,” England said.
All military personnel will continue in a normal duty status regardless of their affiliation with exempt or non-exempt activities. Military personnel will serve without pay until such time as appropriated funds are available to compensate them for this period of service. Civilian personnel who are engaged in exempt activities will also continue to work, but will continue to be paid until all available O&M (operation and maintenance) funds are expended. Civilian employees not engaged in exempt activities will be furloughed, such as placed in a non-work, non-pay status, England added.
Responsibility for determining what functions would be exempt from shutting down resides with the service secretaries and heads of DoD components, who may delegate this authority as they deem appropriate,” England said.
Component heads are to submit reports by June 30, describing the activities exempt from shutdown, those that will be shut down, and an estimate of the number of employees who could be furloughed should funding not be received, England said.
While military personnel will not be furloughed, they could be called upon to carry out activities in place of furloughed civilian personnel, England said.
According to England’s memo: “Contractors funded by an exhausted appropriation who are employed under a contract which was fully obligated upon contract execution (or renewal) may continue to provide contract services, whether in support of exempt activities or not. However, new contracts (including contract renewals or extensions, issuance of task orders, exercise of options) may not be executed unless the contractor is supporting an exempt activity.”
“The exhaustion of an appropriation does not require the termination of contracts (or issuance of stop work orders) funded by that appropriation unless a new obligation of funds is required under the contract and the contract is not required to support an exempt activity. In cases where a new obligation of funds Is required and the contract Is not required to support an exempt activity, the issuance of a stop work order or the termination of the contract will be required,” the memo said.
“The Department may continue to enter into new contracts, or place task order under existing contracts, to obtain supplies and services necessary to carry out or support exempt activities, even though the funding appropriation Is exhausted. It is emphasized that this authority is to be exercised only when determined to be necessary -where delay in contracting would endanger national security or create a risk to life or property, England added.