Budget instability impacts defense contractors’ ability to plan, particularly when it comes to technical workforce management, Air Force Chief of Staff Gen. David Goldfein told lawmakers Thursday. “They’ve got to keep a certain amount of that workforce engaged over time, and so then when I go to them with one-year budgets and tell them my procurement quantities now are going to be here and then the next year, because of trades, they’re going to be down here, and I go jack them around, back and forth, it causes an incredible challenge for industry to be able to sustain their workforce that we need,” Goldfein said while testifying before the Senate Armed Services Committee. “So everything that we deal with in terms of unstable budget, and one-year budgets, actually gets accelerated into industry as well.” Goldfein said the Air Force relies on industry partners to support acquisition programs with research and development. “This all adds up to an increased risk,” Goldfein said. (See also: R&D Dollars Drop for Major Contractors)
The Department of the Air Force wants to launch a construction boom with its fiscal 2027 budget, more than doubling its request over 2026, according to budget documents.