Professional Documents
Culture Documents
Comparing Defense Savings Plans Across The Political Spectrum
Comparing Defense Savings Plans Across The Political Spectrum
Comparative Matrix
Cato CNAS (7D CNAS (!C
Comparing Defense Savings Plans Across the Political Spectrum - By Brendan Lin NC"## NSN N$%&# Street SD$" Stimson ('a Stimson (SA Co(urn
Procurement and #)D* Revise or cancel procurement plans for programs not requested by DoD Revise or cancel procurement plans for F-35 Joint Strike Fighter Revise or cancel procurement plans for -!! "sprey Revise or cancel procurement plans for #round $ombat ehicle Revise or cancel procurement plans for %ittoral $ombat Ship Reduce R&D spending Reduce '"ther (rocurement' Reduce procurement for other programs "orce Structure* Reduce si)e of *avy fleet by retiring active platforms Reduce si)e of *avy fleet by limiting ne+ procurement Reduce number of ,ir Force aircraft by retiring active platforms Reduce number of ,ir Force aircraft by limiting ne+ procurement -e.cept F-35/ Reduce nuclear force by shrinking current force structure Reduce nuclear force by limiting ne+ procurement0 infrastructure or research +fficiency #eforms* 1.tricate uniformed personnel from non-military tasks Reduce command0 support0 and infrastructure spending ,dopt more efficient business practices Reduce si)e of DoD agencies 2nitiate ne+ 3R,$ round ,dopt Department of Defense4s efficiency recommendations "ther efficiency reforms Benefits and Compensation* Reform 5R2$,R1 Reform military retirement Reform compensation Personnel Levels* Reduce ,rmy personnel Reduce 6arine $orps personnel Reduce troop levels in 1urope and ,sia Reduce number of generals and admirals Reduce civilian DoD +orkforce Reduce contractor staff augumentees ,ther Savings* $urtail missile defense and space spending Reduce or hold constant intelligence spending ,udit the (entagon7improve financial management
Table of Contents:
1. Cato: The Cato Institute - "Budgetary Savings From Military Restraint".............................................................................................................................................4 2. CNAS (7D): Center for a New American Security - "The Seven Deadly Sins of Defense Spending".................................................................................................5 3. CNAS (HC): Center for a New American Security - "Hard Choices: Responsible Defense in an Age of Austerity...........................................................................6 4. NCFRR: National Committee for Fiscal Responsibility and Reform Report.......................................................................................................................................7 5. NSN: National Security Network - "Reshaping Pentagon Spending and Capabilities: Setting Priorities for the Future"...................................................................8 6. NTU/R Street: National Taxpayers Union/R Street Institute "Defending America, Defending Taxpayers: How Pentagon Spending Can Better Reflect Conservative Values"........................................................9 7. SDTF: Sustainable Defense Task Force - "Debts, Deficits, and Defense: A Way Forward".............................................................................................................10 8. Stimson (Ma): The Henry L. Stimson Center - "Strong National Defense for Today's Global and Fiscal Realities"........................................................................11 9. Stimson (SA): The Henry L. Stimson Center - "Strategic Agility: Strong National Defense for Today's Global and Fiscal Realities"...........................................12 10. Coburn: United States Senator Tom Coburn, M.D. (R-OK) - "Back In Black: A Deficit Reduction Plan"....................................................................................13 11. Appendix (Summaries of Other Reports).........................................................................................................................................................................................14
Personnel Levels
Other Savings
Reduce the number of Reform DoD maintenance and Marine Corps expeditionary supply systems - $13b saved strike groups from 10 to 6 over 10 years $7b saved over 10 years
Cut the active-duty Army to 360,000 personnel - $222b saved over 10 years
Make national missile defense a research program - $60b saved over 10 years
Keep a nuclear weapons arsenal of 500 deployed warheads - Savings Estimate Below*
Cut military construction and family gousing spending by 20% - $30b saved over 10 years
Cut the size of the Marine Corps Reduce intelligence spending from 202,000 to 145,000 - $67b by 15% - $112b saved over saved over 10 years 10 years
Cancel Littoral Combat Ship and develop a less expensive alternative - $14b saved over 10 years
50% cut in delivery platforms, including elimination of the bomber leg of the nuclear triad - Savings Estimate Below*
Cut the Pentagon civilian workforce by 30% over a 10year period - $105b saved over 10 years
Consolidation of nuclear Forgo procurement of 60 Flaboratory and testing 35 Joint Strike Fighters and facilities - *All three reduce associated reforms: $87b saved over personnel - $22b saved 10 years Air Force should eliminate six strike wing equvalents; accelerate the retirement of aging airframes - $89b saved over 10 years
Retain six SSBNs, which would allow for at least four to be deployed at any one time - $3b saved over 10 years Forgo the purchase of Trident II missiles for SSBNs and upgrades to nuclear cruise missiles; shelve plans to deploy nuclear weapons on F-35 - No Savings Decommission the Nimitz, Eisenhower, and Vinson $5b saved over 10 years
Reduce the number of Navy aircraft carriers to eight $40b saved saved over 10 years
Cancel procurement of CVN 79 and all future Ford Class CVNs - $16b saved over 10 years
Page 4
Fold AFRICOM back into Prevent 5% of waste in acquisitions EUCOM - $1.4b saved over 10 funding over 10 years - $98b saved years over 10 years
Bring basic pay back in line with civilian pay increases - $14b saved over 10 years
Reduce the DoD civilian workforce by 75,000 people - $37.4b saved over 10 years
Avoid repeating weapons systems failures of the past decade - $46b saved over 10 years
Streamline the process for Shift to a defined contribution generating requirements and make system for all new recruits - $38b real trade-offs on systems up-front saved over 10 years Unknown Savings Adjust TRICARE free to reflect Continue to develop the acquisitions growth in health care costs - $30b workforce - Unknown Savings saved over 10 years Foster a productive two-way dialogue with industry - Unknown Savings Keep the rapid acquisitions process for fast-changing capabilities while fixing the "normal" process Unknown Savings Pursue strategic sourcing options $20b saved over 10 years Use reverse auctioning for contracts $26b saved over 10 years Reduce redundancy of IT management system - Unknown Savings Improve business alignment and auditability - Unknown Savings Authorize and conduct a new BRAC round - $10b saved over 10 years, significant savings over 20 years Close DoD schools in the United States - $1.1b saved in 2015 Consolidate the base and post exchange systems - $2.5b saved over 10 years Increase cost sharing for TRICARE for Life - $6.7b saved over 10 years Increase pharmaceutical cost sharing - $27b saved over 10 years
Reduce spending on base support and facilities maintenance - $3.6b saved through FY 2015, with increased potential for further savings through FY 2020 Consolidate the military service medical commands- $292-478m per year Reduce duplication and overall funding for counter-IED initiatives $1.2b saved over 10 years Reduce redundancy in military service intelligence organizations Unknown Savings Reduce all overhead spending by 5% - $100b saved over 10 years Reduce all overhead spending by 10% - $200b saved over 10 years
"The Department of Defense (DOD) faces a stark choice. With reductions in defense spending looming, decisions made during the next year will chart one of two paths: one that avoids tough choices about cutting excess and inefficiencies, or one that embraces painful but necessary reforms to the structural underpinnings of the department. The first path will inevitably follow the precedent of past defense budget drawdowns and lead to deep cuts in force structure, readiness and modernization, and produce a much-diminished U.S.military. The other, more difficult, path preserves these capabilities by fundamentally reforming the underlying causes of DOD cost growth. With the right choices for reform, the U.S. defense establishment can consume fewer resources and still meet Americas global strategy requirements for many decades to come but bold and resolute action is required now." Barno, David, Nora Bensahel, Jacob Stokes, Joel Smith, and Katherine Kidder. The Seven Deadly Sins of Defense Spending. The Center for a New American Security. Cnas.org. June 2013. http://www.cnas.org/files/documents/publications/CNAS_SevenDeadlySIns.pdf.
Page 5
!ermanentl" reduce #$% From FY12 to FY21, hold fleet from 11 to 1&, active From FY1- to FY21, hold spending for Research dut" air wings from 1& to spending on base support and Development 12.5% ', and 5,(&& sailors b" and facilities mainenance at below FY11 level plus retiring the )** +eorge 12.5% below FY11 level plus inflation $93.7b saved ,ashington in 2&1( inflation $32.5b saved
*tarting in FY15, reduce .rm" From FY12 to FY21, hold active dut" to /(&,&&&, spending on atomic energ" 0arine #orps active dut" to defense activities at 12.5% 1(2,5&&, and reduce 12,&&& below FY11 level plus reservists $63.8b saved inflation $21.0b saved
over 10 years
over 10 years
over 10 years
over 10 years
#ancel $ 22 1spre" in FY1(, stopping total procurement at -(aircraft 2-1/ 0$ 22s, /' #$ 22s3 $7.9b saved
Depots5 .lter pricing Reduce strategic airlift structure for repairs, and re4uirement from -1( to ease restrictions on -&1 aircraft, and retire 15 contracting for maintenance # 5.s $2.4b saved
over 10 years
over 10 years
Reduce the wor6force of From FY12 to FY21, hold 78/,&&& DoD civilian spending on other defense emplo"ees b" 75,&&& over 1& related activities at 12.5% below FY11 level plus "ears b" not replacing some inflation $7.7b saved retirees $36.7b saved
over 10 years
over 10 years
9nd :ittoral #ombat *hip #ancel 0; /# <road .rea program in FY17 after 27 0aritime *urviellance total ships have been 2<.0*3 )nmanned .ircraft procured $7.0b saved *"stem 2).*3 $10.0b
over 10 years
?ncrease b" 2&% the From FY1- to FY21, hold previousl" announced -&% intelligence spending 12.5% reduction in spending on below FY11 level plus contractor augmentees for inflation $88.5b saved head4uarters staff $20.4b
over 10 years
Aold procurement to one From FY1- to FY21, $irginia class **% 2attac6 *hut down Boint ?mprovised holding spending for submarine3 per "ear, 9>plosive Device Defeat @1ther !rocurement@ 1rganiCation in FY17 reducing planned bu" from 12.5% below FY11 level 1' to 1& ships during FY12 $1.2b saved over 10 plus inflation $39.4b 21 $25.0b saved over years
#ancel the !recision Drac6ing *pace *"stem 2!D**3 program and reduce spending on e>perimental national missile defense programs $37.5b saved
10 years
over 10 years
Dela" fielding +round From FY1- to FY21, hold #ombat $ehicle 2+#$3 #ancel two :A. (s and overhead spending for until after FY21 and three :*D2E3s scheduled commercial activities 12.5% reinvest some savings into for procurement during below FY11 level plus upgrading <radle" FY1( 21 $13.0b saved inflation $67.4b saved Fighting $ehicles $7.0b over 10 years
over 10 years
Page 6
Cancel the Navy's Future Maritime Prepositioning Force - $2.7b saved from FY2012-FY2015
Replace military personnel performing commercial activities with civilians - $5.4b saved in 2015
Freeze non-combat military pay Double Secretary Gates' cuts to at 2011 levels for 3 years defense contracting - $5.4b $9.2b saved in 2015 saved in 2015
Apply the overhead savings Reduce military personnel Secretary Gates has promised Modernize Tricare, DoD health - stationed at overseas bases in to deficit reduction - $28.0b $6.0b saved in 2015 Europe and Asia by one-third saved in 2015 $8.5b saved in 2015
Freeze federal salaries, bonuses, and other compensation for the civilian workforce at the DoD for three years - $28.0b saved in 2015
Substitute F-16 and F/A18Es for half of the Air Force and Navy's planned buys of F-35 fighter aircraft $9.5b saved from FY2011FY2015
Cancel the Marine Corps version of the F-35 - $17.5b saved from FY2012FY2015
Cancel the new Joint Light Tactical Vehicle, the Ground Combat Vehicle, and the Joint Tactical Radio- $2.3b saved in 2015
Integrate children of military personnel into local schools in the U.S. - $1.1b saved in 2015
Reduce spending on Research, Development, Test & Evaluation by 10% $7.0b saved in 2015
"President Obama created the bipartisan National Commission on Fiscal Responsibility and Reform to address our nation's fiscal challenges. The Commission is charged with identifying policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run. Specifically, the Commission shall propose recommendations designed to balance the budget, excluding interest payments on the debt, by 2015. In addition, the Commission shall propose recommendations that meaningfully improve the long-run fiscal outlook, including changes to address the growth of entitlement spending and the gap between the projected revenues and expenditures of the Federal Government." FiscalCommission.gov. The National Commission on Fiscal Responsibility and Reform. http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/Illustrative_List_11.10.2010.pdf.
Page 7
Reduce planned buy of F-35s by 25-50%, upgrade legacy aircraft No Savings Estimate Given
Reduce nuclear arsenal to 1,050 strategic warheads and 1,000 launchers; retire the bomber portion of the nuclear triad - $113.5b saved over 10 years
TRICARE Reform: Offer incentives for not overusing care, peg fees to inflation, higher fees on working Reduce DoD service enrollees, and encourage contracts by 15% - $372b retirees to use plans saved over 10 years through other employers if available - $15b saved per year
Retirement Reform: Institute a 401K style system in Reduce Army end strength which the Pentagon would to 420,000 and Marine end contribute about twice the strength to 160,000 - No private sector average Savings Estimate Given $13b saved per year
"This paper contributes to the growing body of work on strategic reshaping by presenting a particular progressive-realist approach that has tacitly evolved in the literature but has not yet been explicitly articulated." French, Bill. Reshaping Pentagon Spending and Capabilities: Setting Priorities for the Future. The National Security Network. NSNetwork.org. March 2013. http://nsnetwork.org/wp-content/uploads/2013/03/Reshaping-Pentagon-Spending-and-Capabilities_Future-Priorities_FINAL-0313132.pdf.
Page 8
10 years
10 years
$e&uire 'A() to share Adjust military pension benefit Consolidate data centers and $educe o%erseas military in costs for *+, nuclear Unify military medical system - multiplier from 2 !" of base embrace cloud computingbombs in Europe personnel - $69.5b $4.6b saved in 10 years pay to 2 #" - $25b saved in
10 years
saved in 10 years
Eliminate noncompetiti%e and Consolidate foreign language cost-plus contracts - $2.0b contracts - $1.0b saved in
years
10 years
saved in 10 years
10 years
Adjust military pension calculation from a%erage of highest three annual salaries to a%erage of highest fi%e annual salaries - $5.5b
saved in 10 years
1old defense discretionary spending to 2#" of se&uester in 2#,3 plus inflation in outyears - $220.0b saved
per year
1 year
$educe minimum airlift in%entory from 3,+ aircraft to 3#, - $1.2b over 5 years
saved in 10 years
10 years
Cut -o- ci%ilian positions -o8nblend and sell excess uranium - $23b by attrition - $36.7b
saved in 1 year
years
saved in 10 years
in 10 years
saved in 10 years
saved in 10 years
saved in 10 years
:mpro%e supply chain $eform ($:CA$E by increasing cost-sharing - $205.4b management - $9.7b saved
years
over 10 years
10 years
in 10 years
saved in 10 years
Cut number of consultants and (erminate 7recision contractors at (rac.ing Space System head&uarters - $15.0b $1.7b saved in 1 year
saved in 10 years
$educe acti%e-duty military personnel $educe or eliminate ground-based missile defense systems -
years
10 years
years
$educe construction projeccts $educe 0@2#,4 ci%ilian pay throughout Air 0orce - $2.2b raise to ," - $2.2b saved in $10.0b saved in 10 years saved in 1 year 1 year $educe -o- tra%el budget -
over 10 years
Cancel future satellites of Space-*ased :nfrared System - $6.0b over
Use less expensi%e boosters for Air 0orce E%ol%ed Expendable Launch =ehicle - $1.1b over 1
year
Consolidate military health $educe Army military care ser%ices - $2.8b saved construction projects - $0.4b in 10 years saved in 1 year
saved in 10 years
10 years
$eplace ArmyAs 9round Combat =ehicle purchase 8ith 9erman 7uma - $8.4b over 10 years
Adopt ?sea s8ap? policies for cruisers4 destroyers4 amphibious ships - $100.0b
saved in 10 years
End orders for obsolete spare parts and supplies for -efense Logistics Agency4 Army4 'a%y4 Air 0orce -
10 years
10 years
Standardi;e per troop spending4 reduce maintenance costs - $34b
saved in 10 years
$eplace =-22 )sprey 8ith /1+# and C1-!3 helicopter $educe spending on military bands - $1.8b saved in 10
years
years
in 10 years
As conservative organizations, the R Street Institute and National Taxpayers Union (NTU) believe strongly in a robust national defense. However, our groups also believe strongly in exercising fiscal discipline in all areas of the federal budget. As by far the largest portion of discretionary spending, Pentagon expenditures must not escape scrutiny as conservatives examine methods for reducing our staggering debt. Sepp, Pete, and Andrew Moylan. Defending America, Defending Taxpayers: How Pentagon Spending Can Better Reflect Conservative Values. National Taxpayers Union/R Street Institute. NTU.org. http://www.ntu.org/news-and-issues/defense/defending-america-defending-taxpayers.pdf.
Page 9
Phase in compensation reforms (ex. Include tax Cap routine U.S. military advantages and Require commensurate housing/subsistence presence in Europe at Selectively curtail missile Reduce U.S. Navy fleet savings in command, allowances in calculating 35,000 personnel and in defense & space spending pay raises) as Asia at 65,000 troops, and to 230 ships - $126.6b support, and infrastructure - $55b saved over 10 recommended by the then reducing force $100b saved over 10 saved over 10 years years Quadrennial Review of structure accordingly - $80b years Military Compensation saved over 10 years (QRMC) - $55b saved over 10 years
Improve the efficiency of Cancel USN & USMC FOnly retire two Navy Roll back Army & USMC military depots, 35, buy replacement - aircraft carriers and naval Prevent military retirees who growth as wars in Iraq and commissaries, and $9.85b saved over 10 air wings - $50b saved Afghanistan end - $147b exchanges - $13b saved are earning fulltime salaries years over 10 years saved over 10 years on top of their full military over 10 years pensions from opting for TRICARE when they can get health Cancel MV-22 Osprey, Retire two Air Force Reduce military recruiting coverage through their expenditures as wars field alternatives - $10b- fighter wings, reduce Femployer, along the lines 35 buy - $40.3b saved recede - $5b saved over $12b saved over 10 suggested by the QRMC over 10 years 10 years years $60b saved over 10 years
Reduce nuclear weapons to a level of 1,000 warheads deployed on 7 Delay KC-X Tanker, Ohio-class submarines interim upgrade of some and 160 Minuteman KC-135s - $9.9b saved missiles. Shift to nuclear over 10 years "dyad" of land- and seabased missiles - $113.5b saved over 10 years Limit modernization of nuclear weapons infrastructure and research - $26b saved over 10 years
Cancel Expeditionary Fighting Vehicle, field alternatives - $8b-$9b saved over 10 years
At a time of growing concern over federal deficits, it is essential that all elements of the federal budget be subjected to careful scrutiny. The Pentagon budget should be no exception. As Secretary of Defense Robert Gates noted in a recent speech, paraphrasing President Dwight D. Eisenhower, 'The United States should spend as much as necessary on national defense, but not one penny more.' Debts, Deficits and Defense: A Way Forward. The Sustainable Defense Task Force. Comw.org. June 11, 2010. http://www.comw.org/pda/fulltext/1006SDTFreport.pdf.
Page 10
Better balancing between the Streamlining redundancy and Modernize military retirement Constructing Contracts active and reserve components duplication - $25b saved $5b-$40b saved over 10 No Savings Estimate - $35b saved over 10 years over 10 years years
Adjust the formulas for cash Managing the compensation growth - $20b- Contracting Workforce $30b saved over 10 years No Savings Estimate
Concentrating service members on inherently military functions - $50b saved over 10 years
Extricate 10% of uniformed personnel from non-military (commercial) tasks- $2.7b saved in FY2015
Transfer non-cash compensation into cash compensation - $10b saved over 10 years
Increase health care fees and cost sharing - $40b-$110b saved over 10 years
"This report is a compilation of recommendations made in recent years by many boards, commissions and study groups that have proposed efficiencies in how the U.S. Department of Defense spends money. If implemented fully, the recommendations would save nearly $1 trillion over a decade, though it is virtually impossible they will all be adopted. The proposals face varying degrees of political opposition some intense and some recommendations are contradictory. We are not endorsing any of the specific options but, by compiling the proposals, we have created a resource that frames the many calls for efficiencies, providing context that the broader debate on defense spending is currently missing." Leatherman, Matthew, Barry Blechman, and Russell Rumbaugh. Managing the Military More Efficiently: Potential Savings Separate from Strategy. The Henry L. Stimson Center. Stimson.org. May 2013. http://www.stimson.org/images/uploads/research-pdfs/Managing_the_Military_More_Efficiently.pdf.
Page 11
Transfer remaining operational F16 squadrons in the active force to the reserve component. The active force would still maintain 500 operational high-end fighters, Cancel the Ground Combat Vehicle including F-22s and F-15s, more (GCV) and Joint Light Tactical than 100 A-10s, some special Vehicle (JLTV) - $1.2b saved per purpose F-16s, as well as an year additional 250 F-16s in the active component for training and development and large-scale operational contingencies that might arise - $5.4b saved per year
20% reduction in DoDs headquarters Implement a variation of the personnel by broadening the span of Defense Business Boards control and eliminating low-priority proposed defined-contribution and duplicative tasks and reporting military retirement plan - $1.5b requirements - $4.5b saved in FY saved by FY2015 2015
Slow procurement of F-35s for two years by cutting the planned aircraft purchase each year by about 1/2. The Navy and Marine Corps variants are already slated for purchase in small lots, 4 and 6 respectively. Trim that to 2 and 3. The Air Force plans to acquire 19 of its A variant in fiscal year 2014, and 30 in fiscal year 2015. Hold that to 9 each in the fiscal years 2014 and 2015. All three variants would return to their planned rampup in fiscal year 2016 - $4.0b saved in FY 2015
Currently, the Navy operates 10 aircraft carriers. It intends to increase that number in 2016 with the commissioning of the USS Gerald Ford. Forgo that increase by retiring the USS George Washington in fiscal year 2014 and maintaining a fleet of 10 carriers over the long term. This recommendation would also cut a carrier air wing in accord with the number of carriers. - $2.3b saved per year
Reduce size of DoD agencies such as the Defense Contract Audit Agency, Defense Contract Management Agency, and Defense Logistics Agency - $1.0b saved in FY2015
Increase means-tested beneficiary cost sharing requirements for TRICARE for Life, which provides secondary coverage for Medicare-eligible Reduce Marine Corps endretirees, and TRICARE, the strength to 160,000 personnel standard health plan for retirees - $2.0b saved per year and dependents, as well as higher cost-sharing for pharmaceuticals for dependents and retirees. - $4.7b saved in FY2015
Reduce the funding levels for the Cut the planned buy of ballistic Guard and Reserves somewhat, missile submarines (SSBN-X) from but not in proportion to the 12 to 10 - $1.2b saved per year reduction in the active force $0.7b saved per year
58,000 DoD civilian positions should be cut by fiscal year 2015 - $4.7b saved in FY2015
Cut spending on programs costing Maintain the Triad of delivery less than $85 million a year by an systems including bombers and amount proportionate to the the current force of ballistic missile Extricate 10% of uniformed personnel reductions in manpower resulting submarines, but retire one ICBM from non-military (commercial) tasksfrom the changes we called for in wing and reduce the non-strategic $2.7b saved in FY2015 nuclear weapons inventory force structure and management reforms - $0.9b saved per year $0.4b saved in FY2015
Decrease number of contractors at least 20% to be commensurate with the other personnel cuts -No separate savings estimate
Stop funding commissaries and post exchanges in the United States $1.2b saved in FY2015
A new BRAC round could focus on relocating units to existing bases and facilities and provide additional savings over the long-term. Defense industrial facilities also need to be consolidated. All such actions should be taken together with robust programs to aid local communities affected by the closures Significant long-term savings
"We continue to believe that Strategic Agility best achieves US interests. It seeks to avoid US involvement in protracted ground wars and emphasizes the importance of technologically superior assets that can quickly and decisively eliminate threats to the United States and its allies. The strategys value already has been demonstrated by events of the past year, including the rapid movement of air and naval assets in response to North Korean provocations, US support of the French intervention in Mali, and the US response to the Syrian conflict. The growing relevance of cyberwarfare and the remarkable advantages provided by US space-based assets underscore the need to invest in advanced technologies." Strategic Agility: Strong National Defense for Todays Global and Fiscal Realities. The Henry L. Stimson Center. Stimson.org. September 2013. http://www.stimson.org/images/uploads/Strategic_Agility_Report.pdf.
Page 12
Air Force: full support of Reduce aircraft carriers Consolidate DoD Adopt Secretary Gates' F-35 Joint Strike Fighter, from 11 to 10, Navy Air administered grocery and Efficiency negotiate a multi-year Wings from 10 to 9 - $7b retail stores - $9.1b saved Recommendations - $100b procurement - $7b saved over 10 years over 10 years saved over 10 years saved over 10 years
Reduce military personnel overseas in Europe and Audit the Pentagon - $25b Asia- $69.5b saved over saved over 10 years 10 years
Navy and Marine Corps: Close Department of cancel the Joint Strike Reduce nuclear weapons Defense elementary Fighter and replace with force structure- $79b F/A-18 Super Hornet schools - $1.1b saved in saved over 10 years $18b saved over 10 FY2015 years
Freeze federal salaries for Reverse the Grow the Army Keep intelligence spending DoD employees - $15.5b Initiative - $92b saved over constant - $26b saved saved over 10 years 10 years over 10 years
Delay fielding of the Army's Ground Combat Vehicle - $7b saved over 10 years
Close DoD-run Science, Technology, Education, Reduce the civilian Reduce spending on DoD and Mathematics programs workforce by 5% beginning Tuition Assistance Program for elementary school in 2014 - $22.5b saved $4.9b saved over 10 years students - $1.7b saved over 10 years over 10 years
Terminate the Medium Extended Air Defense System (MEADS) Program - $13b saved over 10 years
Reduce planned future purchases of the V-22 Osprey - $6b saved over 10 years
Reduce spending at the Congressionally Directed Double Secretary Gates Consolidate military health Medical Research Program reductions to contracting for care services - $2.8b (CDMRP) on non-military staff augumentees - $37.8b saved over 10 years specific diseases - $250m saved over 10 years saved over 10 years
Reduce funding for the National Guard Counterdrug Program $250m saved over 10 years
Reform TRICARE Standard and Prime for military retirees and dependents $115b saved over 10 years
Reduce spending on other options including JLENS, VTUAV, and PTSS - $35.5b saved over 10 years Reduce 10% of research and development funding - $79b saved over 10 years
Reduce travel expenditures at the Department of Defense - $14b saved over 10 years
Increase cost sharing for pharmaceuticals under TRICARE - $26b saved over 10 years
Replace military personnel Introduce minimum out-ofperforming commercial pocket requirements under activities with civilians TRICARE for Life - $43b $53b saved over 10 saved over 10 years years Standardize per troop spending and reduce spending on maintenance due to base closures $34b saved over 10 years Adopt Secretary Gates' Efficiency Recommendations $100b saved over 10 years
"A thorough review of the entire federal budget is long overdue. Such an evaluation should not be seen through political or ideological lenses, but as a practical evaluation: What works and what does not? What is a priority and what is not? What is in the national interest and is a special interest? What is necessary today and what has become obsolete? And what is efficient and what is wasteful?" Coburn, Tom. Back in Black: A Deficit Reduction Plan. United States Senator Tom Coburn, M.D. (R-OK). Coburn.Senate.gov. http://www.coburn.senate.gov/public//index.cfm?a=Files.Serve&File_id=bc1e2d45-ff24-4ff3-8a11-64e3dfbe94e1.
Page 13
Page 15
Deferred and In-Kind Compensation for Military and Civilian Personnel. Many reports in Washington examine the rising, and ultimately unsustainable, costs of military personnel absent change. While the cost of military personnel as a percentage of the defense budget has remained relatively flat in recent years, the cost of military pay, allowances, and health care has risen over 90 percent and the size of the active duty force has grown by only less than 3 percent since 2001. This is due in large part to congressionally mandated annual pay raises half a percent higher than inflation; three rounds of pay table reform designed to improve retention of experienced personnel; and substantial increases in basic housing allowance, health care, and retirement benefits.
Eaglen, Mackenzie. Shrinking Bureaucracy, Overhead, and Infrastructure: Why This Defense Drawdown Must Be Different for the Pentagon. The American Enterprise Institute. AEI.org. March 2013. http://www.aei.org/files/2013/03/21/-shrinking-bureaucracy-overhead-and-infrastructure-why-this-defense-drawdown-must-be-different-for-the-pentagon_083503530347.pdf.
Page 16
Page 17
Historically, the report argues, defense-spending drawdowns have not had as severe an effect on the economy as predicted; these claims are "grossly overblown." For given taxes and other federal spending, the defense spending cut lowers the federal deficit. Hence, the public debt is lower than otherwise, and this reduction means that, in the long run, taxes will decrease correspondingly when compared to a benchmark path (if other federal spending does not change). "a dollar increase in federal defense spending results in a less-than-a-dollar increase in GDP when the spending increase is deficit-financed. Combining this with a tax multiplier that is negative and greater than one, we estimate that over five years each $1 in federal defense-spending cuts will increase private spending by roughly $1.30."
"the adverse effects on real GDP will be minor even in the short runin the longer run, when reduced public debt and taxes are factored in, real GDP should be higher than otherwise."
From 1987 to 2000, under the first Bush administration and the Clinton administration, the share of defense spending in GDP fell from 7.4 percent of GDP to 3.7 percent. The average growth rate of real GDP over this period was a respectable 3.3 percent per year, despite the 1991 recession.
Barro, Robert, and Veronique De Rugy. Defense Spending and the Economy. The Mercatus Center at George Mason University. Mercatus.org. May 7, 2013. http://mercatus.org/sites/default/files/Barro_DefenseSpending_v2.pdf.
Page 18
2.
Congress should amend the FAIR Acts service contracts reporting requirements to include: The occupational classification(s) of the person(s) performing the service. The actual number of all contractor and all subcontractor employees performing the service by occupational classification. The actual billing rate(s) for each occupational classification of persons performing the service.
3. Congress should pass legislation requiring OMB to submit to Congress and make publicly available an annual report on federal service contracts providing the following information and analysis: How much money the federal government spent outsourcing services, broken down by agency and legislative program. How many contractor and subcontractor employees provided services to the federal government, broken down by agency, legislative program, and occupational category.
4. Congress should amend the Office of Federal Procurement Policy Act (41 U.S.C. 1127) to ensure that the maximum benchmark compensation amount applicable to contractor employees shall not exceed the compensation paid to Level I positions pursuant to 5 U.S.C. 5312 and the Office of Personnel Managements rates of basic pay for the Executive Schedule. 5. Agencies should: Periodically consider hiring federal employees for short-term projectsexisting personnel authorities are very flexible and more than adequate for this purpose. Place much more emphasis on cost analyses in their decisions to utilize contractors. Cost analyses will provide significantly greater insight into how much contractors should charge for the work to be performed and will serve as a benchmark for project costing, whether performed by contractors or federal employees.
Bad Business: Billions of Dollars Wasted on Hiring Contractors. The Project On Government Oversight. POGO.org. September 13, 2011. http://pogoarchives.org/m/co/igf/bad-business-report-only-2011.pdf.
Page 19