Lexington Chief Operating Officer Loren Thompson was quoted in the Washington Business Journal’s piece on DoD downsizing its modernization programs due to the COVID-19 pandemic. “Because Covid-19 is spreading in places like Texas where there are a lot of Defense plants, the cost to the defense industry is probably rising by something like $3 billion a month,” said Thompson.
He then pointed to analysis that puts the CARES Act cost at around $24 billion and rising. Without supplemental funding, said Thompson, the DOD is unlikely to cut spending on readiness operations, leaving the modernization budget to make up the difference. “If the money came from readiness, there could quickly be consequences,” Thompson commented. “But if the money came out of some program that hasn’t been fielded yet, the operational consequences would be muted.”
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