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Cost Estimating NewsBrief: April 11, 2025
Trump signs executive order aimed at providing boon to American shipbuilders
(Breaking Defense) President Donald Trump today signed an executive order tasking the heads of the defense, commerce, labor, transportation and homeland security departments with developing a “Maritime Action Plan” (MAP) that will invest in the shipbuilding industrial base and disentangle the government’s clumsy procurement processes. “Up until now, government procurement processes and over-regulation have hindered private industry’s ability to build vessels on time and on-budget — this order reverses that trend,” according to a fact sheet from the White House. “It instructs the Secretary of Defense to assess options, including the Defense Production Act Title III authorities, to invest in and expand the Maritime Industrial Base.” Read More
GAO Heightens Focus on Deferred Maintenance in Federal Buildings
(FEDweek) The GAO has said it added the condition of federal buildings to its most recent high-risk report because of the increase in deferred maintenance in federal buildings, saying that “Unless this trend reverses, federal assets will continue to deteriorate and need premature replacement, which can be significantly more expensive than the cost of repairs had they not been delayed.” Management of federal real property has been on that list since 2003, a witness told a House hearing, but the cost for deferred maintenance increased from $216 billion in 2022 to $370 billion in 2024, and is more than double the $171 billion of 2017. Read More
Fraud and Improper Payments: Data Quality and a Skilled Workforce Are Essential for Unlocking the Benefits of Artificial Intelligence
(U.S. Government Accountability Office) The federal government loses $233 billion–$521 billion annually to fraud, based on data from 2018-2022. We testified about AI and other tools the government can use to combat fraud. Federal agencies have existing tools to combat fraud and other improper payments. Our prior work offered recommendations on improving and using these tools. AI-enabled tools could also help by sifting through large volumes of data to find anomalous patterns or relationships. But they require error-free, unadulterated data. This can be hard to come by for some federal programs. And it requires a skilled workforce, another area where we have found gaps. Read More
In first industry address, Navy Secretary Phelan says service must change the way it buys
(Breaking Defense) In his first major address to industry, Navy Secretary John Phelan promised to use his business acumen to break through the Navy’s “rigid adherence to the old way of doing things” that has led to “complacency, bureaucracy, and in some cases, sub-optimal policy.” “We have to really change the way that we buy things. Change the way we make decisions. We have to be quicker,” he told attendees at the Sea Air Space Exposition today. The new secretary was confirmed by the Senate last month and spent the first weeks in the job touring facilities at Quonset Point, R.I., and Groton, Conn. Hung Cao, President Donald Trump’s nominee to be under secretary of the Navy, is awaiting Senate confirmation. Read More
Trump’s AI policy shifts focus to ‘high impact’ use cases
(Federal News Network) The Trump White House is focusing federal artificial intelligence efforts on “high impact” use cases and directing agency chief AI officers to accelerate the adoption of AI technologies. The new AI policy is laid out in a pair of April 3 memos signed by Office of Management and Budget Director Russell Vought. One focuses on the acquisition of AI, while the other memo focuses on the “federal use” of AI. The latter memo gives agencies 180 days to develop an AI strategy for “identifying and removing barriers to their responsible use of AI and for achieving enterprise-wide improvements in the maturity of their applications.” Read More
Experts suggest AI could address FOIA backlogs, even as public records staff are terminated
(NextGov/FCW) The adoption of modernized information technology systems and capabilities — including artificial intelligence tools — can help federal agencies more efficiently process Freedom of Information Act requests, several Republican lawmakers said during a Senate hearing on Tuesday, even as governmentwide layoffs have gutted some of the offices responsible for fulfilling these appeals for public records. Sen. Chuck Grassley, R-Iowa, the chairman of the Senate Judiciary Committee, noted during the hearing that the number of FOIA requests filed in fiscal year 2024 surpassed 1.5 million — a 25% increase from FY 2023. The number of processed public records requests during the same period was just under 1.5 million, although that figure also included requests from previous years. Read More
Why AI Demands a New Breed of Leaders
(MIT Sloan Management Review) Artificial intelligence is fundamentally transforming how organizations operate, but this transformation extends far beyond technical implementation. Modern AI systems are increasingly taking on roles that previously would have been filled by human workers. People working alongside these AI systems often need reskilling, upskilling, and training in behavioral traits such as critical thinking. To successfully manage this blend of AI tools and humans working together in new ways, leaders need to understand complex human and organizational factors, such as agility and cultural change, personality dynamics, and emotional intelligence. Read More
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