Lawrence F. Skibbie, President, National Defense Industrial Association (NDIA)
(June 22, 1998)

Mr. Skibbie did not appear before the Commission. A summary of his written statement on capital
budgeting follows.

Written Testimony: NDIA surveyed its members and provided a summary of responses from the eight companies that replied. About half of the respondents generally did not comment due to their lack of knowledge about how capital budgeting would affect them; however, two of these companies opposed major changes to the current process. The two companies believe that the current process is flawed, but it's at least understood. One respondent strongly supported a separate capital budget that would be free from budgetary caps and debt ceilings, because the capital budget would bring stability to defense acquisitions. Most of these companies also noted that they can not definitely comment until clear details of the capital budgeting proposal are available. In closing, NDIA emphasized the need for a full, open discourse to better inform the defense industry and the need for a clear definition of capital expenditures.

The following list summarizes the major views of the survey respondents in detail:

Definition of capital expenditures

Capital budgeting process Concerns Recommendations

President's Commission to Study Capital Budgeting