Military Spending Archives

Probe Started into Camo Colors Selected for Afghanistan Military by the Pentagon

Military spending by the Department of Defense is sometimes a source of controversy. The subject recently took an unusual turn when a criminal probe was launched regarding the purchase of uniforms for Afghan troops.

“This Is About Reason and Common Sense”

John Sopko, the Special Inspector General for Afghanistan Reconstruction, opened the investigation this past July. Sopko made the announcement when he recently appeared before a House Armed Services subcommittee.

According to Sopko, there are two significant problems with the purchase:

• Although Afghanistan is largely covered by desert, the uniforms feature a woodland pattern.

• The expensive and proprietary pattern was purchased from a private contractor when the Defense Department had their own patterns available for use.

In the IG’s 17-page report, it was implied that the pattern was selected based on a whim expressed by the Afghan defense minister rather than a formal assessment to determine an appropriate choice.

The Government Reacts

While the Pentagon and the IG are often at odds, Secretary of Defense Jim Mattis criticized the “ineffective and wasteful manner” of spending taxpayer dollars. Rep. Vicky Hartzler (R-MO), chair of the oversight and investigations panel, stated, “We cannot afford to make avoidable mistakes.”

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Are There Ways to Better Manage Department of Defense Spending?

Are There Better Ways to Handle Military Budgets?

While President Donald Trump’s proposed budget includes a significant increase in defense spending, many feel that it’s still not enough to make up for what was viewed as years of underspending. Center for American Progress, an independent bipartisan think tank, suggests the following ways for the Pentagon to manage funds more efficiently.

1. Downsize Administrative Staff

The Pentagon staff has grown by 38% since 2001. A recent report found that personnel cuts would produce $125 billion in savings over the next five years.

2. Reduce Cost Overruns

In 2015, multinational consulting firm Deloitte issued a report stating that overruns for major acquisition programs amounted to a staggering total of $468 billion.

3. Re-Examine Aircraft and Ship Spending

Senator John McCain, chairman of the Armed Services Committee, has recommended maintaining a more fiscally responsible number and mix of military vehicles, including aircraft carriers and combat ships.

4. Prioritize Nuclear Spending

Former Defense Secretary William Perry and Gen. James Cartwright, former Vice Chairman of the Joint Chiefs of Staff, have proposed that the government cancel the land-based missile and air-launched cruise missile parts of the ongoing multibillion-dollar nuclear modernization program.

5. Authorize a Round of Base Closings

No Base Realignment and Closure (BRAC) commissions have been held since 2005; some sources suggest there’s up to 30% excess base capacity.

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Trump’s Historic Defense Budget Increases Will Boost Defense Contracting

Military Defense Contractors Are Eager to Book New Orders.

With his recent budget proposal, President Donald Trump is requesting a “historic” defense spending boost to make good on his promise to strengthen the U.S. military. Still, some lawmakers are questioning whether the amount is truly enough to maintain our country’s position as the world’s strongest military power.

“Making America Great”

Trump’s plan calls for the Pentagon to receive a total budget of $603 billion, which is 10 percent over Congressional caps instituted in 2011 but just three percent more than defense spending during the last fiscal year. Three percent is also only slightly higher than the country’s rate of inflation, which currently sits at 2.5 percent.

Much of the increase is intended for shipbuilding and military aircraft, which would provide a major influx of defense contracting. Trump believes the new budget will strengthen the reputation of “American strength, security and resolve” among the rest of the world.

What Happens Next?

The President’s budget now requires approval from Congress, which could involve several months of negotiations. Lawmakers such as Sen. John McCain, Republican chairman of the Senate Armed Services Committee, object to what they feel is an insufficient increase. On the other hand, Democrats are taking issue with the cuts in domestic programs that are being requested to fund the increase in military spending.

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Will the Trump Presidency Boost Military Bomb Purchases from DOD Contractors?

Increase in Military Spending

While President-elect Donald Trump has been a powerful business man for decades, he has limited experience in the political arena. Much of the direction of Trump’s administration will be defined by his inner circle of advisors, with arms control being an area of particular interest.

Predicting Arms Control Under the New Administration

Experts believe Trump may adopt a position similar to that of former President Richard Nixon, who felt that demonstrating a willingness to use nuclear weapons is a crucial negotiating tactic. Trump’s aggressive personality alone could cause enemies to back down, but if he begins making nuclear threats, it could damage the U.S. relationship with its allies.

Unlike past presidents, who were familiar with the nuances of foreign relations, Trump hasn’t shown predisposition to strategic thinking. His response to challenges will most likely depend on whether the voices surrounding him recommend acceleration or negotiation.

Will CTBT Be Revived?

Trump could silence his critics, at least partially, by calling upon the Senate to proceed with hearings and ratification of the Comprehensive Nuclear-Test-Ban Treaty (CTBT). China, Pakistan, India and Israel, who have been biding their time, would most likely follow the lead of the U.S.

Russia, the traditional opponent of the U.S. when it comes to the arms race, ratified the CTBT during Boris Yeltsin’s time as president. Unfortunately, Russia’s continued observance of the treaty cannot be assumed.

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The Trump Presidency May Boost Department of Defense Contracting Purchases

A new world must prepare for a new presidency.

President-elect Donald Trump has yet to be sworn into office, but he’s already having an effect on some sectors. As Trump prepares to take office, major defense firms are anticipating a surge in defense spending.

Effects of the Election on Defense Firms

Actually, defense firms were expecting an uptick in business even if Hillary Rodham Clinton had won the election. Signs such as solid third-quarter earnings for Northrop Grumman were seen as predictors of healthy defense spending.

While the stock market initially suffered a sharp drop immediately following Trump’s victory, it quickly rebounded to post a record high of 18,808. Gains by defense contractors such as Northrop Grumman, Lockheed Martin, and Boeing led the rally.

Positive Signs Pointing to Increased Defense Spending

Factors behind this surge in optimism include:

• The 2013 budget sequestration implemented significant cuts in military spending. Analysts expect the Republican administration and Republican-controlled House and Senate to work together on eliminating these financial caps.

• During his campaign, Trump vowed to make significant additions to all military branches and argued for fast-track modernization of the country’s nuclear force. At this point, however, there is no specific outline as to how the spending will be funded.

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Understanding the Big Dollars Involved: How the Military Uses Its Budget

When people talk about military spending, the conversation often revolves around an expensive new fighter jet or futuristic technology. Often, those investments total billions of dollars at a time. But how does the sizable U.S. military budget really break down?

Business Insider has demystified military spending with a series of simple infographics about the 2015 budget. It’s an interesting read and you may be surprised at how money gets spread across each branch of service, and among different purposes.

Notable highlights of the budget analysis include:

The base budget comprises 80% of spending. This includes equipment and operations. Overseas contingencies and growth initiatives make up much of the rest.

Out of the $496 base budget, about half pays for personnel and operations. About 13% goes toward R&D.

The Navy takes the lion’s share of the budget, followed by the Air Force. These branches also spend the largest amounts on big-ticket investments such as the $8.3 billion F-35 fighter jet and the $6.3 billion SSN 774 Virginia submarine.

On one hand, it’s true that the military spends the vast majority of its money on day-to-day operations. On the other hand, a single fighter plane cost almost 2% of the annual budget.

Military spending receives special scrutiny, and everyone can appreciate smart steps to improve the efficiency of operations.

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Oshkosh Shakes Up Military Contracting by Winning Humvee Replacement Contract

As the U.S. Army looks to replace a well-traveled fleet of Humvees, the DOD has awarded a $6.75 billion contract to Oshkosh Corp. The agreement calls for the Wisconsin-based manufacturer to produce 16,901 light trucks.

Losing out on the bid were Lockheed Martin and AM General, the latter of which makes Humvees. Lockheed Martin has filed an official protest of the bid, requiring the government to review the selection process. Oshkosh will most likely prevail as the winner, but production will wait until after the protest has been resolved.

The Future of Army Light Trucks

The Joint Light Tactical Vehicles to be produced by Oshkosh will generally fit the mold of the familiar Humvee — light enough for aircraft transport, strong enough to resist explosions.

Oshkosh stock had fallen 20% since the start of the year, but has rebounded aggressively following news of the massive contract, which could ultimately grow to $30 billion. The DOD retains the right to switch suppliers for future production runs.

The new JLTVs are designed to keep costs down by using common parts including GM engines and Allison transmissions. The Army, which will acquire the vast majority of the JLTVs, had set a price-slashing goal to help offset recent overspending.

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Tag: Military Spending