Pentagon takes steps to reinforce Defense Department supply chain managementIn an effort to streamline its supply chain management, the Pentagon recently announced an assessment of the Defense Department's manufacturing frameworks in an effort to identify and repair areas of risk, according to Aviation Week and Space Technology.

The initiative will develop a database of supply chain connections to identify specific areas of concern, namely markets where suppliers are limited or at risk of either scaling back operations or relocating abroad to foreign markets.

Deputy assistant secretary of defense for manufacturing and industrial base policy Brett Lambert noted that the Pentagon will use tools like Title III, which can provide incentives to develop, expand or otherwise maintain domestic manufacturing in at-risk areas.

Title III, which has seen significant budget cuts in recent years, can grant low-interest, government subsidized loans to manufacturers critical to defense development who are in need of financial assistance or are otherwise categorized as critical areas of the Department of Defense's supply chain.

“Title III is very broad and it’s controlled not by the armed services committees but by the banking committees,” Lambert told the source. “It can do things like invest in 40,000-ton presses that have no commercial use now, but will have in the future.”

The Defense Department's budget was more than $600 billion in fiscal 2010.  
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