NDIA: National Defense Industrial Association
2111 Wilson Bouldvard, Suite 400
Arlington, Virginia 22201-3061
Tel: (703) 522-1820Fax: (703) 522-1885
Web Page: http://www.ndia.org
 
June 22, 1998
 
Commission to Study Capital Budgeting
258 Old Executive Office Building
Washington, D.C. 20503

Dear Commissioners:

Earlier this year, NDIA was invited to testify before the commission on behalf of the defense industry. The commission was interested in receiving the views of the industry on the issue. At the time, I advised the commission that NDIA would survey our members for their views.

You will find attached a synopsis of the major views we received from our members. There is no consensus on a definition of capital budgeting; there are multiple concerns and views expressed about its implications; and a range of thoughts about its impact on defense. Perhaps, the most telling point is the expressed lack of information or understanding of how such a system would work.

This latter finding strongly suggests that before any significant action is taken there needs to be full and open discourse. Moreover, it is evident that a clear definition of what constitutes a capital budget item or expenditure is in order. Finally, it is imperative that careful thought and consideration is given to the implications such budgeting would have on our national security structure and posture.

I hope the attached information is helpful. If you have any questions, please feel free to contact me.
 
 

                                                                                       Sincerely,

                                                                                       (Signed)

                                                                                       Lawrence F. Skibbie
                                                                                       President
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
CAPITAL BUDGETING, DEFENSE INDUSTRY VIEWS
 
 

GENERAL COMMENTS

Company A

Company B Company C Company D Company E Company F Company G Company H  

DEFINITION OF CAPITAL EXPENDITURES

Company A

Company B Company C Company D Company E Company F Company G Company H  

NATURE OF A CAPITAL BUDGET PROCESS

COMPANY A

COMPANY B COMPANY C COMPANY D COMPANY E COMPANY F COMPANY G COMPANY H  

EXTENT TO WHICH CAPITAL BUDGET CAN BE APPLIED AT THE FEDERAL LEVEL TO PRIORITIZE SPENDING

COMPANY G

 

ROLE OF DEPRECIATION IN GOVERNMENT FINANCE

COMPANY G

 

RECOMMENDATIONS

COMPANY A

COMPANY B COMPANY C
Items to be included: COMPANY D COMPANY E COMPANY F COMPANY G COMPANY H  

IMPACT ON BUSINESS

COMPANY A

COMPANY B COMPANY C COMPANY D COMPANY E COMPANY F COMPANY G COMPANY H  

CONCERNS

COMPANY F




President's Commission to Study Capital Budgeting