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Operation Overrun
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Tue Jun. 23, 2009 2:00 AM PDT
This is Part II of a Mother Jones special report on the defense budget. Click the links for Parts I, III, IV and V.
Let's start with the biggest no-brainer of a problem: the Pentagon's mind-boggling budget blowouts. That is, setting aside for a moment the question of which weapons the DOD should or shouldn't buy, how much money does it waste?
In 2008, the Pentagon calculated that its existing weapons commitments will ultimately cost the government $1.6 trillion. A big chunk of that total—$296 billion, to be exact—is cost overruns.
Continues Below
Continued From Above
Source: GAO
That $296 billion doesn't come from a few big programs running over budget and messing up the balance sheet, either. Blowouts are the norm, not the exception.
http://www.motherjones.com/files/CostOverrunChart2.jpg " alt="" />
Source: GAO
And the overruns are frequently significant—in fact, on average weapons programs cost 26 percent more than the initial estimates. Missed deadlines are also standard practice:
Source: GAO
In other words, almost nothing about Pentagon contracting works as it should.
It would be tempting to blame all of these excesses on the Bush administration's lax attitude toward oversight: Overruns and delays definitely got worse between 2000 and 2008. But if you take a look further back, you see that overruns have increased at a predictable clip over the past 15 years—an average of 1.86 percent a year, to be exact. If Pentagon spending continues at its current rate, average overruns will reach 46 percent in 10 years.
Source: Deloitte Consulting LLP
There has been much fanfare about Gates' spending "cuts," and there will be a brief obsession with whatever Congress approves when it eventually passes a defense budget. But even if Congress resists the urge to stuff the bill with pork and gives Gates everything he wants, real Pentagon spending will inevitably be far, far higher.
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Just think if we spent as
Submitted by Bill Guerrero (not verified) on Tue Jun. 23, 2009 4:08 PM PDT.
Just think if we spent as much mony on education for our children as we do on defense how safer our country would be . Oh I forgot as Noam Chomsky says we do not have any political will in this country.
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But...but...health care will costs trillions
Submitted by ETSpoon (not verified) on Wed Jun. 24, 2009 5:38 AM PDT.
If the Defense budget were brought in line and stupidly wasteful programs cut, this nation could afford health care for every citizen for years to come.
But of course if money sewers like the F-22 Raptor or the Osprey were ended, thousands of unionized workers, whom the Democrats tap for campaign donations then promptly stab in the back, would be laid-off and stock prices of the major defense contractors would plummet.
Well, too bad.
Cut out the overrun and you
Submitted by Anonymous (not verified) on Thu Jul. 30, 2009 12:48 PM PDT.
Cut out the overrun and you eliminate $415 Billion off the deficit. This is what makes me question the intelligence of conservatives in government (Republican & Democrat) who argue that raising THEIR taxes will bring about the collapse in our economy. I see every penny of THEIR taxes paying for the programs that they support. I know of no one person that pays $1.6 Trillion in taxes. There are many liberals in this country that feel that the pentagon eats up too much of the federal budget so THEIR taxes pay for the programs they support. Yet no one (conservative or liberal) rants and raves about cutting THEIR wasteful spending. Hawks say we need every penny allocated to the defense and say the "liberal" programs should be cut to save money. Liberals say that the pentagon budget should be trimmed first. You can easily pay for all "necessary" programs, not raise anyone's taxes and possibly end up with a balanced budget just by cutting the waste already in the budget. But no one sees their programs as containing any waste. If a defense contractor gets all of their contracts and is only expected to trim WASTE why would they have to lay off anyone? Their bid should have taken into account current costs, anticipated cost overruns, accurate (realistic) completion schedules and their PROFIT. At least that is how it SHOULD be done. So either the defense contractor doesn't know what they are doing and the people reviewing the bid also don't know what they are doing. Or the defense contractor knowingly lies about the price for their project and the people reviewing the bid don't care. I'm leaning toward option 2.
You should question why the
Submitted by Anonymous (not verified) on Thu Aug. 6, 2009 1:43 PM PDT.
You should question why the overuns exist not that they do. Our acquisition system is designed so that the Congress can play football with funds. Anytime you remove funds form a program you slow it down and increase overall cost. Look at all the over runs and see how many times money was pulled from the program. Not saying that the Acquisition community gets everything right, but stable budgets would help remove the problems. Kadish observed that to fix about 40% of the overuns the Congress would be barred from reprograming money once a program was initiated.
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The fact that our cost overruns exceed the military budget of China makes the article worth reading by itself. burun estetiği, göğüs büyütme Finance the military with bake sales, and finance health care on the national budget. göğüs estetiği, göğüs küçültme Our Overruns That $296 billion in cost overruns is so staggering that I wanted to put it in some perspective. vajina estetiği, lazer epilasyon There is no single country whose entire military costs even close to what the US has wasted to date on big-ticket weapons programs. karın germe, estetik, karın estetiği, saç ekimi
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