Pentagon looks to save billions with smarter spending
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| Washington
The last time the Pentagon tried to order up a presidential helicopter, it abandoned its plan after reports surfaced that the cost of test aircraft had doubled and would run into the billions of dollars.
Now, the Pentagon is once again aiming to buy a new presidential helicopter and, in the process, putting new measures in place throughout the Defense Department to rein in skyrocketing contracting costs.
To that end, they are calling on defense officials to begin providing estimates of not just what new planes, weapons, and, say, internet services will cost 鈥 but what these items should cost as well. 鈥淪o we don鈥檛 end up,鈥 as Secretary of Defense Robert Gates explained in a press briefing Tuesday, 鈥渨ith another half-billion dollar presidential helicopter.鈥
Of the nearly three quarters of a trillion dollars that the Pentagon now spends each year, defense officials allot some $400 billion for contracts for goods 鈥 including weapons 鈥 and services such as computer systems. It is in this realm that defense officials estimate they can save $100 billion over the next five years.
The Pentagon is asking officials to weigh in on budgetary matters and say, 鈥淲e shouldn鈥檛 do that; we shouldn鈥檛 pay that,鈥 says Ashton Carter, Undersecretary of Defense for Acquisition, Technology, and Logistics, who also briefed reporters.
Reducing costs may also mean 鈥渞educing ambition鈥 in some areas, he added. On ships, for example, defense officials might ask, 鈥淚s it really worth it to go one knot faster?鈥 Mr. Carter added.
The Pentagon may also need to bring in more experienced acquisition experts, who have long been in short supply there. Gates was reportedly 鈥渁mazed鈥 at the 鈥渏unior people negotiating these huge contracts鈥 on behalf of the Defense Department for services, according to Pentagon spokesman Geoff Morrell. Carter explained many defense officials who buy weapons systems 鈥渂uy them for a living.鈥 But the less experienced defense officials who often pay large sums of money for services simply 鈥渁re trying to get something else done,鈥 he said. 鈥淭hey鈥檙e amateurs.鈥
In an effort to reward contractors who consistently stay on budget, the Pentagon is also rolling out what it likens to a 鈥渇requent flier program.鈥 Those who 鈥渄o a good job 鈥 we鈥檒l give preferential treatment to,鈥 Carter said.
A number of programs have been canceled recently by Gates in an effort to rein in costs during a time in which the defense budget is leveling off after years of wartime growth post-9/11. 鈥淚n that era,鈥 Carter said, 鈥渇at has crept in.鈥
Defense officials say they are also concerned about private defense corporations like Blackwater that operate under some two dozen names, raising issues of accountability.
鈥淲e are optimistic we can do well,鈥 Carter said of the cost-cutting measures, 鈥渂ecause we haven鈥檛 really applied ourselves in the past.鈥