WASHINGTON — The choice by Congress to boost the economic base job within the Pentagon hierarchy will assist prioritize key points for the division, however questions stay concerning the construction of the workplace, in accordance with analysts.
As a part of the 2021 Nationwide Protection Authorization Act, the place of deputy assistant secretary of protection for industrial coverage shall be modified to assistant secretary of protection. The brand new function makes it the 61st job on the division to require Senate affirmation, a mirrored image of significance Congress is now placing on a job that has traditionally stayed underneath the radar.
The economic coverage job was an assistant secretary of defense-level function years in the past. However when Congress started seeking to reduce down the variety of ASD jobs, it grew to become first a deputy undersecretary job, after which a deputy assistant secretary spot — not excessive sufficient to require Senate affirmation. Following the breakup of the Acquisition, Sustainment and Logistics workplace, the economic coverage job ended up a number of ranges underneath the undersecretary of protection for acquisition and sustainment.
However a wonky job recognized largely contained in the protection business gained a serious enhance in consideration over the Trump administration, due largely to a few components.
First, an government order to review the well being of the protection industrial base led to a 2018 report, largely put collectively by then-industrial base head Eric Chewning, warning of “home extinction” for protection suppliers. Then, the Trump administration started a extra aggressive stance towards China, one which coincided with empowering the Committee on International Funding in america, or CFIUS; that went hand in hand with considerations about China investing strategically in America’s provide chain.
Lastly, the federal government’s response to the coronavirus pandemic started working by way of the Protection Manufacturing Act, managed by the economic base workplace. Out of the blue, this workplace was answerable for dispersing cash for very important medical provides, in addition to pushing cash to the protection business to maintain key suppliers operational — the latter of which drew ire from Congress.
Jerry McGinn, a longtime official on the industrial base workplace who’s now government director of the Heart for Authorities Contracting at George Mason College, stated the transfer is an efficient factor, significantly for the smaller industrial initiatives which might be nonetheless very important for the division’s mission.
“I believe it’s a reflection of the significance of that portfolio, which covers CFIUS, mergers and acquisitions, the entire industrial base, the Protection Manufacturing Act, in addition to small enterprise coverage,” McGinn stated. “A lot of the issues that the broad industrial base wants don’t have an actual champion — not the best way the F-35 [fighter jet] does, for instance. The good-to-have stuff generally will get reduce by [the Cost Assessment and Program Evaluation office] or a committee. Having an ASD may help in these sorts of internecine bureaucratic battles.”
Invoice Greenwalt, who served as deputy undersecretary of protection for industrial coverage in the course of the George W. Bush administration, stated elevating the function is “completely the suitable determination.” However he expressed considerations about placing the job underneath the Acquisition & Sustainment workplace, given the wide-ranging subjects that that industrial coverage chief should cowl.
“The fact is, the job has ties to the undersecretary for coverage, to analysis and engineering, with manufacturing and manufacturing on the A&S facet,” Greenwalt stated. Placing it underneath A&S will “suboptimize the advantages of creating it an ASD-level job as a result of it must work throughout a number of undersecretaries.”
As an alternative, Greenwalt recommended making the economic coverage official instantly report back to the deputy secretary of protection. Doing so would additionally give extra juice to the job, which might assist when coping with different stakeholders, such because the Commerce, Homeland Safety and Well being and Human Providers departments, which may have shared equities going ahead.
“The largest factor industrial coverage must take care of is China,” particularly understanding the place Beijing-linked corporations are investing within the provide chain, Greenwalt stated. “An ASD-level job may have the ability to take care of commerce and DHS and HHS to have a look at industrial coverage from a much bigger nationwide safety viewpoint, as a substitute of simply taking good care of the provision chain.”
However McGinn raised a unique concern, questioning whether or not the brand new ASD workplace will obtain the staffing it must succeed.
“Making it an ASD is one factor, however staffing the group is one other. One of many massive challenges after Congress break up AT&L is in addition they did a discount in authorities billets,” McGinn stated. “That workplace is already thinly staffed. They don’t must develop thrice in dimension, however they want just a little bit extra staffing.
“So if Congress goes to do that, they should be resourced by way of personnel to do the work. You possibly can’t simply wave your hand at this; whenever you do that there needs to be some form of leveling for that.”