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August 3, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Potential defense budget cuts demand a new calculus

By: and Douglas A. Birkey

With the U.S. election around the corner and the economic impact of COVID-19 mounting, calls for defense spending cuts are on the rise. The practicality of reductions is questionable given the scale and scope of the threat environment, the reality that key elements of the military are decaying, and that defense jobs represent one bright spot in an otherwise bleak economy. If cuts are coming, it is crucial to execute them in a fashion that prioritizes the most effective, efficient and valuable capabilities within the Department of Defense. This requires a new approach to assessing weapon systems' value.

Defense programs are traditionally measured in a service-centric fashion based primarily upon two metrics: unit cost, and individual operating and support costs. Think about this in the context of buying a car and expenses associated with gas and maintenance. However, not all vehicles are created equal, with a compact car far different than a large SUV. Relative capabilities are essential when understanding how to best meet mission goals effectively and efficiently. To this point, when it comes to military systems, a much more relevant determination of merit is “cost per effect” — measuring the expense associated with achieving desired mission results.

These sorts of comparisons are far from theoretical. On the first night of Desert Storm, it took 41 non-stealth aircraft to hit one target. At the same time, 20 F-117 stealth fighters struck 28 separate targets. Without the protection afforded by stealth, it took a large airborne team to protect the eight bomb-carrying aircraft striking one target. This gets to the crux of the cost-effectiveness challenge. Even though the non-stealth aircraft each cost less from an individual unit aircraft perspective, the F-117s yielded far more mission results at less risk for far less enterprise cost.

However, during the last few budget downturns, decision-makers too often cut weapon systems that appeared “expensive” on a spreadsheet but actually delivered far greater effects for less cost. This year saw the Air Force seeking to retire 17 of its B-1 bombers even though a single B-1 can deliver as much or more ordnance than an entire aircraft carrier air wing, depending on the operational realities of range and payload. Production lines for the B-2 and F-22 — respectively the most advanced and capable bomber and fighter ever built — were terminated well before their validated military requirement was filled. Cost-per-effect analysis would have yielded very different determinations.

These decisions continue to have very significant consequences. The security environment today is much more dangerous than at any time since the end of the Cold War, and U.S. forces are stretched thin. Smart investments are essential to yield necessary mission results. The U.S. military no longer has the capacity to bludgeon its way to victory through mass as it did in World War II.

This is exactly why military leaders are embracing the need to harness information in their future war-fighting construct. Joint All-Domain Command and Control centers around understanding the battlespace in a real-time fashion to seek favorable pathways to achieve mission objectives, minimize the dangers posed by enemy threats and collaboratively team weapon systems to yield enhanced results. This is an incredibly smart approach. However, it is also wholly incongruous, with analysis centered around unit cost and individual operating expenses. If victory is going to be secured through the sum of parts, then we need to stop focusing on unilateral analysis absent broader context.

Cost per effect can be applied to any mission area — the measurement points simply need to be tailored to relevant data sets. Accordingly, if we look at high-end air superiority and strike missions, it is important to consider the ability to net results in a precise fashion. This is simple — not only does “one bomb or missile, one target” save money, but it also frees up forces to execute other tasks.

It is also important to consider survivability. Large, self-protecting, non-stealth strike packages akin to the Desert Storm example are incredibly expensive. Replacing a plane and pilot is not cheap. Additionally, losses reduce the force employment options available to commanders.

Fifth-generation technology attributes are also crucial — the combination of stealth, sensors, processing power, fusion engines, and real-time command-and-control links to penetrate defended adversary regions and understand how best to attain desired effects, while minimizing vulnerability.

Finally, range and payload are also very important — a single aircraft able to fly farther and carry more missiles or bombs drives effectiveness and efficiency. Assessing these attributes — all of which are measurable — validate precisely why aircraft like the F-35 and B-21 are so important.

Nor should these assessments be restricted within a service. That is not how combat commanders fight. They focus on missions, not service ownership. If cuts to defense are coming, then it is crucial that the DoD maintain the most effective, efficient options, regardless of service.

If past DoD budget cuts are any indicator, DoD budget “experts” will once again resort to their traditional monetary spreadsheets focused on unit cost and service-focused budget columns. Leadership from the very highest levels is crucial to ensure the very best options are preserved and prioritized. Joint cost-per-effect analysis is what will ensure a given amount of money will yield the most value at a time when it matters the most.

Retired U.S. Air Force Lt. Gen. David Deptula is dean of the Mitchell Institute for Aerospace Power Studies. He has more than 3,000 flying hours under his belt, and he planned the Desert Storm air campaign and orchestrated air operations over Iraq and Afghanistan. Douglas A. Birkey is the executive director of the Mitchell Institute, where he researches issues relating to the future of aerospace and national security.

https://www.defensenews.com/opinion/commentary/2020/07/31/potential-defense-budget-cuts-demand-a-new-calculus/

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  • Coast Guard Commandant Schultz Optimistic Congress Will Fund New Heavy Icebreaker Program

    August 3, 2018 | International, Naval

    Coast Guard Commandant Schultz Optimistic Congress Will Fund New Heavy Icebreaker Program

    By: Ben Werner WASHINGTON, D.C. – Fiscal Year 2019 money for a Coast Guard heavy polar icebreaker is frozen on Capitol Hill, but the service's commandant is optimistic the project will ultimately be funded. The Senate's Fiscal Year 2019 Department of Homeland Security appropriations bill includes $750 million for the heavy icebreaker but the House version zeroed-out the heavy icebreaker money for the year to make additional funds available for building a barrier along the U.S. southern border. The department's border wall budget request was for $1.6 billion, but House appropriators recommended spending $5 billion on border security infrastructure, according to the Homeland Security Funding bill approved last week by the House appropriations committee. However, there is still time to make the case for restoring polar icebreaker funding, Adm. Karl Schultz, the new Coast Guard commandant, said on Wednesday at a Maritime Security dialogue hosted by the U.S. Naval Institute at the Center for Strategic and International Studies. “The Senate marked up their version of the project and the $750 million (for a heavy icebreaker) was still in. That bill has to be conferenced,” Schultz said, referring to the process where members of both the Senate and House iron out differences in their appropriations bills before each chamber votes on the new unified version. The process is long and because of some of the contentiousness surrounding funding for Department of Homeland Security programs, Schultz said there's a strong chance a final bill will not be considered until after the fall midterm elections. Along with overseeing the Coast Guard, DHS is in charge of several agencies governing immigration, customs and border control. Building a heavy polar icebreaker has strong support inside the Trump administration, Schultz said. His superiors – both the secretary of Homeland Security and President Trump – support the project. Trump even mentioned the project during his remarks at the June 1 change of command when Schultz took charge of the Coast Guard. Full article: https://news.usni.org/2018/08/01/35453

  • Decision coming soon on who will build prototypes for a new Army light tank

    October 10, 2018 | International, Land

    Decision coming soon on who will build prototypes for a new Army light tank

    By: Jen Judson WASHINGTON — The Army is expected to make a decision by the end of the year on which companies will build prototype vehicles as part of its light tank competition. The requirement for a Mobile Protected Firepower vehicle to provide infantry brigade combat teams a protected, long-range, cyber-resilient, precision, direct-fire capability for early or forcible entry operations was first laid out in the Army's combat vehicle modernization strategy released in October 2015. The Army is looking to rapidly procure this capability by turning to commercial off-the-shelf technology rather than spend years developing it. Several competitors submitted offerings to the competition in late February in the hopes that they are selected to build 12 prototypes that will be demonstrated and evaluated — and that will ultimately lead to the service selecting a winner to go into production. The low-rate initial production plans are for roughly 54 vehicles — 26 to start, with an option to build 28 more, as well as retrofitting eight of the prototype vehicles. The first unit equipped is planned for 2025. If selected, the contractors have 14 months to deliver MPF prototypes to the Army. A final request for proposals will likely come out in late October or November, and the service will make a decision shortly thereafter. SAIC partnered with Singapore's ST Kinetics and Belgium-based CMI Defense; BAE Systems and General Dynamics Land Systems all submitted written proposals, vehicles and armor coupons for testing. The SAIC team integrated CMI's Cockeril 3105 turret on an ST Kinetics next-generation armored fighting vehicle chassis as its offering. BAE Systems is offering an M8 Buford Armored Gun System with new capabilities and modernized components. GD submitted an offering that combines a version of its latest Abrams turret with a chassis that leverages experience from the United Kingdom's AJAX program. “We have additional new and proven technologies to meet MPF specific requirements,” a GD spokesperson said. The Army has already moved through its testing and evaluation ahead of a decision later this year. Vehicle bid samples were tested to evaluate mobility and firepower performance, and the armor coupons were tested to evaluate protection performance. According to Jim Scanlon, senior vice president and general manager of SAIC's defense systems group, the company did both pre-validation and follow-on testing of its vehicle offering before and after the Army's own evaluation period. The company has brought the vehicle to the Association of the United States Army's annual conference. If selected, SAIC plans to perform final integration work in its Charleston, South Carolina, facility, with the other companies in the team building their contributions in their own facilities. However, Scanlon said, the company is working to come up with ways to do more and more of the production work in the United States, and both companies involved are on board and see moving some work into the country as a necessary investment as big combat vehicle programs gain traction. All options are being considered, Scanlon said. BAE plans to build its EMD prototypes within its manufacturing network including York, Pennsylvania, Aiken, South Carolina, Anniston, Alabama and Sterling Heights, Michigan, according to the company's MPF capture lead Greg Mole. GD said it would not release build locations for the vehicles at this time. The MPF program now falls under the Army's Next-Generation Combat Vehicle cross-functional team's purview, which lies under the new Army Futures Command, charged with modernizing the force more rapidly to maintain overmatch against peer adversaries. https://www.defensenews.com/digital-show-dailies/ausa/2018/10/10/decision-coming-soon-on-who-will-build-prototypes-for-a-new-army-light-tank

  • French procurement office to undergo transformation

    July 9, 2018 | International, Aerospace, Naval, Land, C4ISR

    French procurement office to undergo transformation

    By: Pierre Tran PARIS - France seeks to shake up, speed up and closely audit its arms acquisition with a “transformation” of its procurement office, the Direction Générale de l'Armement. In a July 5 speech, Armed Forces Minister Florence Parly pointed to the need for a deep restructuring of the DGA in response to changing threats, international relations, technology and innovation. AS part of that process, the DGA will spin up an innovation office for key programs, with a budget of €1 billion (US $1.2 billion). Closer ties with industry will be part of the new approach, with prime contractors sitting down with the DGA and chiefs of staff to draw up a requirement – but industry must also assume responsibility and better share risk, Parly said. “Transformation of the DGA” was the mission assigned to its director, Joël Barre, when he took up the post, Parly told the audience gathered at the defense ministry. Efficiency and responsiveness were key goals, requiring greater dialog between the DGA and the military services, rather than working in silos, she said. There are now three phases in arms programs, half the previous number, she said. Those key stages are preparation, production and use of the equipment. The ministry seeks to simplify procedure, increase flexibility and acquire innovation, while pursuing new legal structures and financing. While greater conversations with industry will be vital going forward, Parly pointed up that there would “balance” in the government's relations with industry. France was ready to talk to industry but the government was not ready to pay any price. There will detailed audits to ensure a right price was agreed to, Parly warned. “The DGA is not a quartermaster's store, nor little old grandma with an open check book,” she said. One of the major reforms for industry will be to pressure prime contractors deliver on time, with the government seeking to move to an approach used in civil aviation, where most of the payment is made on delivery. That encourages a delivery on time, rather than the present phased payment, where defense contractors have no incentive to speed up the work. The DGA will send teams to inspect the contractors to ensure the right price was paid. Additionally, Parly said there will be greater sharing and use of engineering information between the DGA and industry, with increased use of artificial intelligence and large databases. Innovation agency To help drive the new culture, DGA will set up an innovation agency, intended to be the one number to call for inquiries on innovation, and ready to take risk and speed up official backing. There is a search on for director of the agency, which will merge various existing offices including Astrid, Def'invest and Rapid. The agency will have a budget of €1 billion (US $1.2 billion) for investment. There will be a greater cooperation between the DGA, Joint chief of staff and Chief of staff of each of the services, with teams working together in the same office area from this autumn. There are two pilot projects being considered: the Future Combat Air Systems, which will also consider the potential for cooperation with Germany and other European countries, and a maritime surveillance system. There is a search for greater speed by merging the operational requirements set by the services with the technical needs drafted by the DGA. The forces and DGA will, with a prime contractor, draw up a single document setting out requirement. This combined approach will be tested on a new internal communications system for the ministry. The DGA will seek greater flexibility in its staff management as the office relies on technical staff, which are in strong demand in the job market. That includes sending its employees to work temporarily in companies to learn best practice and boost cooperation between the ministry and industry. The DGA manages an average annual budget of €11 billion for some 100 arms programs, employs 9,600 staff, of which 56 percent are engineers and executives. The office has a major role in managing export deals. Parly, in her opening remarks, quoted former U.S. President John F. Kennedy in his 1960 acceptance speech of the Democrats' nomination for the presidential campaign: “We stand today on the edge of a New Frontier--the frontier of the 1960′s--a frontier of unknown opportunities and perils-- a frontier of unfulfilled hopes and threats.” The DGA was formed just a few months before the presidential candidate delivered his speech at the Democratic National Convention at the Memorial Coliseum, Los Angeles. https://www.defensenews.com/global/europe/2018/07/06/french-procurement-office-to-undergo-transformation/

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