Buying Smart When Money is Tight

Buying Smart When Money is Tight

Reshaping US Forces When Money is Tight

As the Obama Administration shapes the acquisition approach of the Department of Defense for the years to come, hard choices will be taken. And these choices will have significant impact both in implementing and in shaping strategy for years to come.

Among the key drivers will be Afghanistan, Iraq and the operation and shape of power projection forces. First, how the Afghan strategy is re-cast and how US forces are equipped and the concept of operations of those forces, in concert with those of allies, will shape US capabilities for years to come. Second, the drawdown in Iraq and the re-deployment of the significant stash of equipment from US forces, either within the region or returned to US forces will also shape US and allied capabilities in the region. And, finally, how the administration approaches the re-shaping of US expeditionary and power projection forces will have a fundamental impact on the US posture. Power projection forces shape how the US approaches allies, how allies deal with the United States and in the future will shape the calculations of adversaries with regard to the real military capability of the United States in global affairs.

Acquisition is inextricably intertwined with military capability. In the ongoing debate about acquisition processes and of the proper balance between industry, civilians and the military, what is often forgotten is that acquisition is about buying things. Too often the lawyer mentality of those shaping the process enforces the notion that process is more important than outcome. The critical question is the ability to buy the right equipment, at the right time, with the right effect and with core capabilities to sustain that equipment worldwide.


The press of financial limitations further complicates the challenge. Those limitations include: a crisis in financial resources; costly “overseas contingency operations;” growth in the numbers of military personnel which reduces resources available for equipment buys and sustainment; a shift in domestic priorities away from those represented by the Department of Defense; growing competition in global markets to sell US equipment; and the lingering impact of cacophony in US export policies which, in the case of the satellite market, has virtually eliminated US suppliers from the global competition.

At the heart of the challenge will be how to leverage austerity. The current strategic review process owes the country more than simply justifications for canceling programs and supporting counter-insurgency operations. It owes the country some foundational principles for launching a new architecture and new programs to support U.S. and allied power projection forces providing for security and military needs.

One of these principles could be “leveraged” modernization, whereby well-established platforms are used to provide for new capabilities and to seek to connect these legacy platforms into new “connected battlespace capabilities.” One example is the USMC “Harvest Hawk” program. The USMC is using its KC-130Js to craft a roll-on, roll-off ISR platform. The USMC is looking to do the same with its Ospreys. The program will yield an operational aircraft in less than a year.

The airlift fleet, crucial for the future of US joint operations, could also become an example of leveraged legacy platforms with new capabilities. There are clear limits to the amount of capital available for the acquisition of new lift aircraft; and there is significant uncertainly with regard to the future disposition of US kit to be carried by the lift fleet. When FCS was clearly in place, one could project with some certainty the nature of the future lift fleet. Such certainty is now gone.

Add to this uncertainty the fact that the tanker fleet was already supposed to be in the process of recapitalization. One approach to rebuilding the tanker fleet would be to it use the C-5 modernization to provide a solution to the lift and tanker shortfalls. Some of the older C-5s are being retired, and the savings from those — plus the savings from new efficiencies for the modernized C-5s — will pay for themselves in operational savings. According to a 2008 USAF estimate (which is the current program of record), for the mixed C-5 fleet (52 C-5Ms plus 59 AMP C-5As) there will be a reduction of operation costs by $15 billion and a Reduced Total Ownership Cost of $8.9 Billion.

The upgrade program for the C-5 consists of two elements. The Avionics Modernization Program (AMP) provides a new cockpit, including several flight safety enhancements and upgrades which allow it to operate in modern civil space. The modernized C-5 has data links to connect with air traffic control. These links allow reduced separation of aircraft so they can operate in regulated air space. By being able to access optimized air traffic control routes, the C-5M gains fuel savings, time and can operate at longer distance.

The Reliability Enhancement and Re-Engining Program (RERP) updates 70 subsystems of the aircraft. The centerpiece of the RERP is a new General Electric engine which is used worldwide on civil aircraft and is found as well on Air Force One and KC-10 tankers. This allows access to GE worldwide engine system in offline locations.

This upgrade program not only virtually pays for itself through life cycle cost savings but yields new capabilities -– leveraged modernization – –which provides capabilities able to attenuate the tanker gap. As already noted, the C-5M can operate in civil airspace due to the avionics upgrades, which allows it to fly more efficient routes. The range of the aircraft allows it to avoid re-fueling in route (as compared to C-130s or C-17s), which means we need fewer tankers and don’t need to rely on in-route tanking infrastructure (notably in-route air fields).

And the modernized C-5Ms provide significant contributions to dealing with strategic uncertainty as well. The US will clearly need insertion forces able to operate worldwide in very time constrained environments for humanitarian or military missions. The C5Ms will be able to carry significant or heavy loads over long distance, which provides for either longer range for C-17 sized loads or simply bigger, bulkier or heavier loads.

The increased reliability of the C5-M will allow the Air Force to use the C-5 on more austere runways. The C-5 has significant capability to land in austere runways; with the new systems it can be considered a core contributor to this capability. The airplane has a landing gear footprint (LCN landing classification number) lower than the C-17 and comparable with the C-130, which allows the aircraft to operate on soft semi-prepared runways. This inherent capability allows you to go beyond how the service currently uses the aircraft. Improved reliability from modernization means the tactical use of the C-5M can be expanded. In other words, by modernizing the C-5, the C-5M will be able to carry more cargo, over longer distances, and with less air refueling tanker dependency. The C-5M delivers 22% more power, provides 58% faster climb rate and 8 to 20% better fuel economy, depending upon the operational scenario. And the C-5M can expand its operations into airfields with shorter runways, thereby expanding its operational utility.

In short, austerity requires innovation. Leverage current assets where possible to gain further capability combined with the re-capitalization of the power projection forces will provide mid to long-term solutions in a constrained environment. Obviously, finding the balance between the two will be the art of policy and the crux of policy choices. Programs like “Harvest Hawk” and the C-5 modernization efforts make sense as part of the solution.

Robbin Laird, a former National Security Council staff member under Presidents Carter and Reagan, is an international defense consultant who works in Paris and Washington.

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Interesting to hear people say that money is tight — has anyone seen the US military budget?? It is TITANIC!! With a budget of this size, how can we not afford to refresh equipment?

A big part is the fact that each new weapon system is significantly more expensive (and capable, true) than the one before. So we buy fewer and fewer copies.

Another big part is reaction like buying the MRAP. Our leadership, uniformed and civilian, sent our folks into Iraq driving Hummers and they were getting killed very easily. Of course our leadership told us that we would not need armored vehicles — the population would welcome us with open arms! Well, the arms they welcomed us with were not open, but were AK-47s. So we suddenly needed to spend like crazy to get MRAPs built and over there.

And then we have the changes in direction — like the FCS program. First it is the Army’s highest priority, then it is discarded.

So when people start telling me that we need to adapt to limited budgets I ask where they were five years ago, and why we are spending trillions but still are in an austere budget!

Interesting how the C-5M plan is now being touted as an example of efficiently using limited budget. I remember how a few years back the C-5M plan was held up as an example of ridiculous cost overruns and contractor overpromising. Funny how the C-5 is more attractive now that C-17 is ending and we still don’t have a new tanker!

Money is tight eh? Not if you look at everywhere else the government is spending money. Money is just tight when it comes to buying and developing new military equipment. Typical.

There are many things we need, cost be damned and this includes items that many politicians don’t want to pay for. Regarding “low cost” programs the the C-5M seems like a good choice to improve our airlift capability in my opinion.

Given that the WTO just ruled the Airbus subsidies illegal, http://​www​.defensenews​.com/​s​t​o​r​y​.​p​h​p​?​i​=​4​2​6​5​9​8​1​&​a​m​p​;​c​=​E​U​R​&​a​m​p​;​s​=​AIR and quite a few congresscritters have said that they will support a law to prevent the DoD from purchasing products that have violated the law, are we any closer with this revelation to getting a new tanker?
Leaving aside the arguments about the merit of one program vs. another, this can’t be good news for Northrup-Grumman/EADS.

Gotta agree with DD that using a C-5M as an aerial refueler makes little sense due to the huge ground footprint and its thirsty consumption, not to mention low readiness rates.

If you are going to replace 60 KC-10s with a max take-off weight of 590,000 lbs, do it with a two-engined C-17 that takes off at a max of 545,000 lbs that could be fitted with two 777 engines. If that means longer landing distance, so be it. The ramp footprint would be smaller, yet the capacity to carry outsize/oversize cargo would remain.

Just as inportantly, we need a version of the C-17 that burns less fuel to carry lighter loads intertheater distances. Most C-17s carry far smaller payloads more comparable to two C-130s or less. But a C-130 cannot fly intertheater distances efficiently.

Buy 60–80 two-engine C-17s to replace 60 KC-10s first. Plus you might sell some to allies. After that, hopefully the 787 will be in full production with reduced demand to allow a refueling version.

I’m not seeing where the article suggests creating C-5 ‘tankers’.
I do see where it says modernized C-5’s free up tanking assets because of the increased efficiencies modernization brought to the C-5.
Eliminate the need for tankers meeting C-5 needs provides a possible reduction in the number of tankers required for the USAF mission.
Looks like the savings the author is talking about are compounded.

Buying Smart, hmmmm:

develop B-2 plan on 132 units buy 21

develop F-22 plan on 750…396… buy only 187

develop JASSM keep developing and developing and developing while its unit price more than doubles

develop F-35 as a low cost fighter see it’s price tag climb to $100M each and its total program cost go up more than 50% and development costs skyrocket. Plan to buy more than 400 LRIP units which will likely never be fully combat capable. Also terminate all alternatives to this failing program!

Wonder why we need new bombers and will have fighter deficits of 800 aircraft on the USAF side and 200+ aircraft on the USN side.

Yes, surely we are buying smart.

Weaponhead: Good points.

Cole: I think you misunderstood; as Stephen points out, modernising the C-5 lets you fly more stuff with fewer aircraft than a C-17 fleet, which reduces your need for tankers. If you have lots of C-17 in the future and a bunch of new tankers, then C-5 modernisation isn’t a good plan. If you have no new tankers and no new C-17, then you suddenly find that modernising C-5 is the only option you’ve got.

What amuses me is the “Oceania has ALWAYS been at war with Eurasia” nature of the piece; it doesn’t even mention that not even three years ago, everyone was crapping all over C-5M!

Have to concur with many of you.….C-5 as an example of smart buying?! With all our aerospace companies why can’t we design a more efficient/effective cargo plane like the Antonov. Unlike the C-5 which costs nearly $187-200M (not including cost of upgrades) an Antonov costs anywhere from $50-70M and can carry 25% more cargo. Even if we assume a 50% increase in price for a newer US design of the aircraft we’d have 25% or more cargo room for almost half the price.

Weaponhead:

If we had built numbers closer to what we had originally planned, the per unit price would be significantly lower and nobody would be calling these programs “failures.” For example if we had bought 590 or 640 F-22s, there would be much less pressure on the F-35. The initial production block could include important features planned for later aircraft, like the capability to carry 6 AAMs internally.

I don’t know about the B-2. That aircraft while capable has plenty of readiness problems that would have corrected by the NGB (B-3). Either way, we still need a new bomber before we retire our remaining B-52s in force.

I think JASSM is actually on track now, although it is still costlier than it should be. I know they are continuing development on extended range variants, but I think they got the bugs worked out.

ReconTeam,
A couple links on JASSM status if interested:

http://www.defensedaily.com/publications/dd/2009–07-08/

http://​www​.reuters​.com/​a​r​t​i​c​l​e​/​m​a​r​k​e​t​s​N​e​w​s​/​i​d​U​S​N​1​5​5​2​3​0​5​9​2​0​0​9​0​515

http://www.defensedaily.com/publications/dd/2009–08-31/

In short they are having a prodution break until the reliability fixes actually bring the reliability up. This is the second try to get the reliability to an acceptable level. The USAF is making noises about cancellation but I’m not sure anyone believes they would do it.

Don’t worry about the size of the Defense Budget, the administration is getting ready to gut it. Trust me. Seen this movie before going all the way back to 1953. We know where subrogate (substitute) Robin Hood is going. Somebody needs to tell his staff that the american people are not the Sheriff of Nottingham.

Once again I read about how money is tight and that production has stopped on the F22, and how what can we do to get the most for what little money we have, everytime I read this it just burns me up! No, the Pres and Congress don’t have the money to build the resources we need to protect and defend our nation, which is their primary duty and what they take an oath for. But we do have plenty of money to give to bums (welfare), or free health care for all, or bailing out crooked banks, CEOs, etc., free drugs, entitlements! JUST THINK OF HOW MANY F-22S WE COULD BUY WITH ALL OF THAT WASTED MONEY! Or all of the weapons systems that we could upgrade!
It’s a fact that defense spending is good for the economy, and it’s about damn time that all of you people get off your rears and hound your Congressmen/Senators that they better quit throwing away our defenses on all of this other stupid crap! Then we wouldn’t need to have this argument about what weapon system we should buy, we could just buy them all and lots of them. What we deside we don’t like, we outfit those systems with remote controls and use them as targets and kamakazies!

As graybeards go, Robbin is one of the straight shooters with the clearest forward vision. The one criticism I would make of this piece is that he did not deal with the trade space between airlift and sealift, nor did he really talk about the implicit geopolitical costs and benefits associated with forward basing and prepositioned stocks. We cannot presuppose:

1. Where and when the next contingency operation will take place

2. How long we really have to get there in sufficient strength to accomplish the mission

3. What other commitments will be outstanding to limit our freedom of action.

It is just not valid to state that if one reduces capability, that will in and of itself dictate strategy — you still have ends even if you have deprived yourself of the means to achieve those ends. Too many people, both in and outside the government right now, do not understand this. So you end up buying up risk when you thought you were saving money.

One thing we cannot do is move continents closer together. The geopolitical realities of time, distance and natural obstacles are as independent as they are constant in our strategic equation. There are only a few countries around the world that can project forces around the globe as can the United
States; most of those countries are our friends.
Precision strike is all well and fine, but there are too many people out there whose model is to wage war at long distance. If anything, 9/11 should have taught us that this is an illusion. We still have the disadvantages of geospatial depth, but fewer of its advantages.

I’m guilty at looking at the picture and not reading the whole article. Guess I assumed and we know what that makes.

No real opinion on C-5M. Thought I read it would cost something like $150 million once. But as Bill R (Roggio??) implies, we need some airlift of some Army forces until the rest can sea deploy.

But I’m encouraged by the airlift from Diego Garcia to Afghanistan. Assume (uh oh) that a C-5 can land there. I’ve also read recently that Stryker version are upwards of 50,000 lbs now with add on armor. Seems like Stryker will have to be the air-deployable medium force that we count on and continue to improve.

This is BS The Air Force needs something the size of the 135 now and allso the largest tanker you can put in the air and use. I worked on tankers for 12 years 8 in MAC moving cargo. The new tanker will do both 767 is the wright size for 80% of the time. the rest of the time you could use a B747, B777, or a A330. Buy 767 now or you will hve to convert airliner’s into tankers for the next war. And that will be to late.

The reason money is tight it’s use to finance obama’s socialist programs. Who wants to bet me that we won’t have to pay for these compromises in the future with American lives?

As an Army Force Management Officer currently in CGSC I have a great opportunity to review items such as this. The article does provide good insight on the “why” as it pertains to capability development. Some of the replies, however, have gone completely astray in logic and reality. The main author says “to buy the right equipment, at the right time, with the right effect”. This is where the acquisition process applies it’s only purpose, to mitigate military capability gaps. These gaps are current and near term, not proposed futuristic threats. This strategic imperative of transformation from current force to future force has been one of the most controversial topics. The basis of this controversy is how we mitigate capability gaps while modernizing the Army in a fiscally constrained environment. Likewise, Army leadership, in many ways, entrapped itself in a flawed modernization plan. Leadership simply did not want to go a better direction due to the amount of funds expended towards a previously approved pathway. The current and correct path is found through the processes of defining true capability gaps to our force, fielding the correct equipment when needed, and developing the best plan of modernization.

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