“Crisis” Will Drive Strategy Changes

“Crisis” Will Drive Strategy Changes

The international financial crisis, compounded by the poor quality of strategic decision making over years, will force the United States to scale back its global commitments and revise its global strategy.

“We are really out of money and we just can’t do this any more,” said Loren Thompson, defense analyst and COO of the Lexington Institute. “The world has to get used to taking care of itself.”

One might call this the transformation of America from the “indispensable nation,” in former Secretary of State Madeleine Albright’s memorable phrase, to the insolvent nation.

“With the exception of special operations forces, all of our military forces are in crisis today,” Gregory Martin, a defense consultant and retired Air Force general, said. Martin, pointing to the mix of airplanes needed to sustain America’s national goals and warfighting needs, made it clear that the country has solemn and painful choices to make as it mulls the fate of the F-22, F-35 and other combat aircraft. “If you can’t afford that [mix], then your national objectives have to be scaled back,” told the audience.

In a clear indication of just how battered and uncertain the Air Force is, Rebecca Grant, director of the Mitchell Institute and author of its new study “Combat Air Forces in Crisis,” said “we don’t really know where we are going.”

Grant, Thompson and Martin were among four analysts speaking at a seminar on air power put on by the Mitchell Institute for Air Power Studies.

Barry Watts, an analyst at the Center for Strategic and Budgetary Assessment and former head of PA and E, said part of the reason the US faces these grim choices — beyond the onerous financial situation — is that the nation has lost the capacity to make clear and effective strategic choices.

As proof of the poor quality of strategic policy making, Watts pointed to the recent policy suggestion from the Office of Management and Budget that the Pentagon push the tanker buy out five years and scrap the next generation bomber. To get out of this fix, “the US needs to make clear strategic choices and do them well,” he said.

But the paucity of clear thinking has left us, Grant noted, with a combat air force comprised of 80 percent legacy airplanes by 2014, an unparalleled force of aging planes. The force will slowly recover to 62 percent legacy planes by 2020. But none of the analysts were terribly upbeat about the future of the F-35, which would provide the bulk of the new planes. Grant said the country must stick to plans to build 80 aircraft a year in order to keep costs low and ensure we replace those old planes.

How bad are things for the Air Force? Thompson, in a soliloquy of program cuts, put the service’s future this way: “The bottom line is this for the Air Force. There isn’t going to be a Transformational Communications Satellite, a Joint Tactical Radio and a next generation bomber; and there will be no production of the F-22 beyond 2011.”

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One has to wonder if the United States is going the way of England, a has been. I hate to say it. In fifty years, India and China will be the worlds two super powers. The cause of demise. Economic decisions we made in the latter half of the twentyth century. Exporting our manufacturing base, becoming a debtor nation and running trade imbalance. What you are seeing now is a phase of this decline. Just think about this China holds one trillion of our debt. If other countries did not buy of treasury bonds, our economy would fall.

great article!! The days of Defense(?retired miliary) greed hopefully are over. The Defense department waste and Defense contractor bonuses and salaries when exposed will saw the current AIG bonuses are nothing. Americans are diverted for the moment but when the Defense Department fraud, misuse, mismanagement and outright fraud being used to support defense program spending they will be shocked and awed. At AIG we are talking about a couple hundred billion BUT AT THE DEFENSE DEPARTMENT we are talking about trillions of dollars. I have asked a few senators and congressmen to testify about but it but so far no takers. I have been employed in the industry for 30 years I have seen it all and have the facts to back it up.

Well, Mike…
You have the facts to back it up, then give the public the information…Talk to the media, let them expose it. Keeping it to yourself will not help the nation. The people need the facts, how else will Americans get the information, unless people like YOU bring it out in the open for all to see?

I have and will continue to so. I have written Senators and Congressman and willing to testify under oath, so far no takers. Support acquisition overhaul. Congressman I really appreciate your efforts to overhaul the wasteful ways that the pentagon comes up for reasons they need money for the many so called programs. I have many years of insight on many DOD and NASA programs that I have worked on. I have been involved with many Army, Navy and Air Force and also BMDO(MDA) contracts and I could write a book and will do so. I am able to itemize out specifically what I know about acquisition issues and root causes of problems with the way the POM is put together and the lack of engaged oversight personnel in the process of just being paper tigers. I am willing to testify under oath on all that I know and here are some of my suggestions and a lot of backup to the reasons why can be provided. I support the Rapid Equipping Force and the way the MRAPs were put into action. I watched the testimony that the “old guard”(i.e., Gansler) gave before the hearings on the McCain Levin bill. First of all there is no need for more acquisition “oversight” personnel, Congressman Duncan was right about that. Second, the military should be kept out of the program management and procurement business and instead keep the military employed in needed military jobs, reason, they serve two or three years in a program office or contract admin office and leave with no accountability and then move on to civilians jobs in the acquisition industry and government; Third, get rid of cost plus contracts and the useless Earned Value Management processes that has allowed a $400 billion dollar plus over run in the top major contracts and has allowed more games with program Estimate To Complete EAC numbers on countless other cost plus programs,. Forth, if a cost plus contract is needed, use a tailored contract that uses firm fixed price for LOE positions and isolating the fixed costs and cost plus portions of a new development program; Forth, go back to the American way of fixed price contracts and competition to get them. Congress made a big mistake in the 1940s in allowing cost plus contracts and now is the time to end them. The reasons leading up to allowing cost plus contracts is not applicable to today’s defense industry technology (see congressional hearings held back then). The billions now being spent on non producing military acquisition can be instead given to more producible consumers to help the world economy and society, not to retired military officers who now hold a major number of the defense agency and military contractor top management positions. Congress keeps listening to the “old guard” who are still focused on cold war systems and old ways of doing business. It is time to move the defense acquisition business from the 1950s to the new business strategies of the 21st century.

Well, it’s all true. I worked for the largest of the defense contractors and it is, indeed, rife with snake charmers and liars. Bids are submitted against solicitations that are obviously flawed in the specification stage. The contractor bids the requested item then sits back and waits for the “change stream”. The real profits are derived from the non-stop change orders needed by bad acquisition practices. Defense PMs think that a quick school is going to equip them to outsmart teams that are incredibly more experienced then they are. There is a finesse involved in knowing when to seem like the program savior and when to let it sustain serious wounds that can be fixed with a change of scope. It borders on the absurd.

Thanks, Sen McCain for no tankers. But the good news is that there will be nothing to refuel in air. Everything worked out OK. Obama’s Chicago Gang, Saul Olinsky’s deciple, plan to de-power the US financially, militarily is succeeding. If he didn’t have a plan than it is mere stupidity that his “great idea for America” will first bankrupt us and then permit enemies to outclass us militarily by starving military budgets. Obama will have done from within what no external enemy has been able to do….

No F-22 production beyond 2011? No tankers? No B-3, and possibly no F-35?

Dear God, give us someone like Reagan who will restart F-22 production, get the USAF what they need, and stop the destruction of the military that Obama has started.

Crisis will drive strategy change but the USA did do more in WWII and in many other conflicts there after. The USA must begin to charge other countries more when it comes to assisting that country or at least the USA should not being paying certain fees to utilize land in some countries since USa is providing security support for the country. The USA pays to much money when assisting other countries when there are very rich neighbors stilling all the goods that may come from efforts the USA military bares. The USA can support countries in need but must obtain payment or at least hold that country financial assets within the USA to help pay for the cost of securing stability in that country.

The USAF Cleared the books of officers with 63ax and 62Ax AFSCs in 2006 (including reserve officers)…I assume the commissions were recycled to the Army and Marines…

RIGHT ON MIKE! You are dead ON!! I have also been in DoD contracting and seen the Government contract and ex-military “professionals” jocky for “gold stars” at the expense of the military’s real need. Unfortunately we have no reality in military standards (read: “desires”)

What happend to Henry Ford’s great plan?
We should build great weapon systems, useable and adaptable by all combat forces, with easy replacement parts. AND YES - At competive firm fixed prices!!

mike:
“Congress keeps listening to the “old guard” who are still focused on cold war systems and old ways of doing business. ”

I love how you say this while simultaneously advocating for a return to fixed-price contracts which went out of style SIXTY YEARS AGO. “old ways” indeed.

Look, if you want fixed-price, that’s fine. But you get what you pay for–and ONLY what you pay for. And if the end product isn’t what you wanted, well, you paid us the fee, kthxbye. I can’t really see people falling on their daggers to fix a system that you didn’t spec properly the first go-round.

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