FYI Number 81: July 27, 2007

FY 2008 House Defense Appropriations Bill Would Cut DOD S&T

The House Defense Appropriations Subcommittee has recommended an 8.5 percent cut in total spending for the 6.1 Basic Research, 6.2 Applied Research, and 6.3 Advanced Technology Development programs in FY 2008. All three programs for the Army, Navy, and Air Force would see budget reductions next year under this legislation. Only 6.1 Defense Wide spending under the Office of the Secretary of Defense would see an increase. In all but one case, the committee's recommended funding levels are higher than those requested by the Administration.

Also of note is a provision in the bill that limits the payment of indirect cost rates for basic research to 20%.

The Defense Appropriations Subcommittee is chaired by Rep. John Murtha (D-PA); the Ranking Member is Rep. C.W Bill Young (R-FL).

The following numbers were compiled by the Coalition for National Security Research to which AIP and several of its Member Societies belong. The bill and its accompanying committee report have not yet been posted (see http://thomas.loc.gov/home/approp/app08.html .) Information on the Administration's FY 2008 request for the defense science and technology programs can be found at http://www.aip.org/fyi/2007/023.html The House is scheduled to consider this bill the week of July 30.

AGGREGATE 6.1 (basic research) funding would decline 0.7% to $1,553.4 million. The Administration requested 1,428.1 million.
AGGREGATE 6.2 (applied research) funding would decline 4.7% to $5,080.9 million. The Administration requested $4,356.7 million.
AGGREGATE 6.3 (advanced technology development) funding would decline 13.6% to $5,558.0 million. The Administration requested $4,986.9 million.
TOTAL AGGREGATE 6.1, 6.2, and 6.3 funding would decline 8.5% from $13,325.2 million to $12,192.2 million. The Administration requested $10,771.6 million.

ARMY 6.1 funding would decline 3.3% to $354.0 million. The Administration requested $305.9 million.
ARMY 6.2 funding would decline 7.4% to $1,114.3 million. The Administration requested $686.2 million.
ARMY 6.3 funding would decline 5.0% to $1,200.7 million. The Administration requested $735.9 million.
TOTAL AGGREGATE ARMY 6.1, 6.2, and 6.3 funding would decline 5.8% to $2,668.9 million. The Administration requested $1,728.0 million.

NAVY 6.1 funding would decline 0.4% to $489.8 million. The Administration requested $467.3 million.
NAVY 6.2 funding would decline 4.4% to $751.6 million. The Administration requested $677.5 million.
NAVY 6.3 funding would decline 19.4% to $619.1 million. The Administration requested $521.8 million.
TOTAL AGGREGATE NAVY 6.1, 6.2, and 6.3 funding would decline 9.1% to $1,860.5 million. The Administration requested $1,666.6 million.

AIR FORCE 6.1 funding would decline 6.3% to $382.7 million. The Administration requested $375.2 million..
AIR FORCE 6.2 funding would decline 2.7% to $1,124.6 million. The Administration requested $1,011.1 million.
AIR FORCE 6.3 funding would decline 46.6% to $553.9 million. The Administration's request was greater at $577.3 million.
TOTAL AGGREGATE AIR FORCE 6.1, 6.2, and 6.3 funding would decline 20.8% to $2,061.2 million. The Administration requested $1,963.5 million.

DEFENSE-WIDE (DARPA, etc.) 6.1 funding would INCREASE 9.9% to $326.9 million. The Administration requested $279.9 million.
DEFENSE-WIDE 6.2 funding would decline 4.3% to $2,090.4 million. The Administration requested $1,981.8 million.
DEFENSE WIDE 6.3 funding would decline 5.3% to $3,184.3 million. The Administration requested $3,151.8 million.
TOTAL AGGREGATE DEFENSE-WIDE funding would decline 4.2% to $5,601.6 million. The Administration requested $5,413.5 million.

INDIRECT COST RATE:
The following is from the forthcoming bill and the accompanying committee report:

BILL LANGUAGE:

"Sec. 8105 -- Notwithstanding any other provision of law, none of the funds made available in this Act may be used to pay negotiated indirect costs rates on a contract, grant, or cooperative agreement (or similar arrangement) entered into by the Department of Defense and an entity in excess of 20 percent of the total direct cost of the contract, grant, or agreement (or similar arrangement) if the purpose of such contract, grant, or agreement (or similar arrangement) is to carry out a program or programs of mutual interest between the two parties: Provided, That this limitation shall apply only to funds made available in this Act for basic research."

REPORT LANGUAGE:

"Basic Research: In testimony received by the Committee, and through information provided by the Department and third-party groups, the Committee learned that the percent of basic research funding allocated to Department and research organizations' overhead costs has grown to unwarranted levels. To reverse this trend and ensure that the Department's basic research dollars are being used for the purposes intended by Congress, the Committee recommends a general provision limiting the percentage of overhead costs that can be covered in basic research contracts."

and as a further explanation of the bill language:

"Section 8105 provides limitations on the use of funds made available in this Act to pay negotiated indirect cost rates on agreements or arrangements between the Department of Defense and certain entities conducting basic research."

Richard M. Jones
Media and Government Relations Division
American Institute of Physics
fyi@aip.org
301-209-3095

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