General: ‘Lots of money’ left after sequester

General: ‘Lots of money’ left after sequester

FORT LAUDERDALE, Fla. — The former head of Army logistics tried to assure a nervous audience of defense industry executives Thursday that “it’s not all doom and gloom” for their bottom lines despite the massive budget cuts underway as the nation’s military rebalances after nearly 12 years of war.

“Our budget still has almost $500 billion” at the baseline even when the impact of major automatic defense spending cuts under the “sequestration” process on March 1 is taken into account, said Army Maj. Gen. Lynn A. Collyar, former director of Defense Logistics Agency’s logistics operations.

“That’s a lot of money,” Collyar said of the $500 billion.  “We can’t afford to just throw money around,” he said, but “there is still a lot of money out there” for companies that can adapt to the new era of declining defense budgets.


Collyar, now head of the Army’s Aviation and Missile Command, was part of a panel discussion with several industry representatives on “Optimizing the Global Supply Chain” at the Association of the U.S. Army’s Winter Symposium.

The three executives who sat on the panel stressed the “new reality” they faced in reverting from a wartime economy to maintaining the readiness of the supply chain to meet the future needs of the warfighter, even as the troops seek to maintain their own readiness for the next conflict.

“We’re at a moment of time where a brand new reality is facing us,” said Peri A. Widener, vice president for Rotorcraft Support Programs at Boeing. “We’re looking forward to op tempos being reduced and budgets being reduced.”

“We need to use this as an opportunity to rethink how we do this business” of getting the beans and bullets to the troops on the ground, Widener said. “We can be more affordable. This is a seize the moment time in our history.”

The difficulty is in knowing what will be required, said Ray Schaible, vice president of Operational Logisitcs for LMI, the logistics consulting firm. LMI this week was awarded a $28.5 million contract to advise and assist the office of the deputy under secretary of the Army on performance, knowledge and information management.

“We’ve got to take a look at the chain, given the new realities we’re facing,” Schaible said. “As we know, in the near future requirements will decline.” The need will be to focus on “maintaining the supply base in a period of reduced demand,” Schaible said.

The Army’s problem is figuring out “how we keep our manufacturers in business” in a period of austerity while “we execute the missions we have within the budgets we’re given,” Collyar said. “It’s up to us to decide what the requirements will be.”

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The Army’s problem is figuring out “how we keep our manufacturers in business” in a period of austerity while “we execute the missions we have within the budgets we’re given,” Collyar said.

Why not solve this problem with the usual solution? MORE WAR!!

Oh, drat, that’s right. Lousy peacenik* is in the White House.

(*drone war deaths of 4700 and counting notwithstanding.)

“LMI this week was awarded a $28.5 million contract to advise and assist the office of the deputy under secretary of the Army on performance, knowledge and information management.”

Silly me. And here I thought that we were paying an enormous number of uniformed generals and civilian SES to provide “performance, knowledge and information management”.

If the generals and the deputy undersecretaries aren’t doing that, what ARE they doing?

Oh! They’re handing out the expensive contracts to the Beltway consultantocracy who tell them what to think. That’s right. Silly me, again.

Most people do NOT understand where the money goes; the largest share goes to personnel. Over the years, Congress–mostly at DOD’s urging–piled on the benefits. All the services, especially Army, face stark choices which involve reduced numbers of active duty personnel. Nibbling around the edges by modifying contracts, inane theatrics like canceling a carrier deployment, or rolling furloughs won’t accomplish any lasting savings.

Unfortunately, it will come down to reduced numbers for the active duty force, unless Congress and DOD can agree on a way to roll back wages and benefits.

We have to furlough 800,000 federal employees but we can give a consulting contractor $28.5 MILLION.

Yeah, it’s the Army privates who are getting rich off the DoD, not the billionaires like Jim McNerney or Bob Stevens. What a crock!

“Why not solve this problem with the usual solution? MORE WAR!!”

That’s an easy one: we pulled out of Iraq,…only to stand up an African Command on the grounds that we can’t have AQ and other radical religious militants destabilizing part of the world that, much like A-stan, has always been inherently unstable despite whichever empire-building kingdom of power has taken roost in those territories.

Much like the American colonies leading up to the Revolution: until the locals actually want stability and are willing to fight for it, earn it and build it themselves, all the foreign influence out there will only be wasted money.
But seeing the general concensus of US government involvement in securing strong education systems for our own children (one that is NOT profit driven like so many universities), I certainly don’t see the US government being able to instill a stronger sense of nation building into other nations who also equally show so little value in the potential of so many of its children.

Maybe if we eliminate The LCS the navy can refuel their carrier.…

Roger THAT, Dfens…no more 1% PROFITEERING, for a start…

Relax… DOD is going all *DRONE*, anyway… Sequester will separate the real Americans, from the *PROFITEERS*.…I serve America because I love her people so much, NOT because the pay is so great!…

Destabilize Africa? Wouldn’t it have to be stabile first?

I don’t know why you people keep saying the pay is great. The only people I see getting paid so much, is dedicated hard working personnel. And of course, the management looking out for each other. In my agency
people work extremely hard most of the time with some not getting any recognition. And people always forget that a very large portion of us are the grunts who don’t make anywhere near “great pay”. Most of our
benefits are paid by us. So stop with the overpayed BS and give some reconition for the jobs we do.

Also, by the way, we have some excellent management staff who are caring and dedicated people. Some
of them sacrifce a great deal to help us. The private sector might have it hard, but a lot of Gov’t workers have it just as hard with some a harder time.

Good points. why attempt nation building somewhere else, when we obviously could better spend our treasure nation building our own nation?

Easy fix cut crappy no need programs like ICC AAS and GCV and cut pork on WIN T and cut high paid pentagon staff save millions for training and maintenance I think sequestration is not doom. May be good at some things.

the government ought to adopt a new policy for most of their needs
you — private people. big companies develop and test something and then
when it works…then we’ll talk about bying it.
having the government force stuff isn’t working out even
though they might want it to do so.

If they really were that good. If they really deserved to be at that 1% status, I’d say write the check. If they were Kelly Johnson and Albert Einstein all in one, make them billionaires. These rich bastards are not the 1%, they are crap! They are bs artists, ass kissers, immoral, traitors to their nation, sorry examples of all our nation claims to stand for. These people don’t deserve to make what the guy sweeping the floors makes, and yet they snap their fingers and commit billions of tax dollars to one boondoggle after another. Then they laugh all the way to the bank. I say, ENOUGH!

IT’S A SHAME THAT OUR LEADERS IN WASHINGTON CAN’T GET TOGETHER TO DO SOMETHING RIGHT FOR THIS NATION. IT’S TIME THAT THE DEMOCRATS AND REPUBLICANS GET TOGETHER AND GET A BUDGET FOR THIS NATION. WHY CAN’T OUR PRESIDENT LEAD AND BRING THIS ABOUT. WE ARE NEVER GOING TO GET OUT OF DEBT UNLESS THIS HAPPENS. WE JUST CAN’T KEEP BORROWING AND SPENDING. THIS NATION NEEDS FOR OUR LEADERS TO COME TO GRIP WITH THESE THINGS. ESPECIALLY OUR POLITICIANS.

and thank you for that

We get what we vote for… sort of. 51% (of people that actually voted) want stuff and want others to pay for it. The basest of human nature, to get as much as you can for the least effort. Rising above that is what elevated us above animals… except my Labrador retrievers of course, they’re better than a lot of people. LOL

That only tells part of the story. The real problem is turnover. In most businesses reducing turnover is a personnel management goal, particularly when the employer pays a lot in training expense. In the military, turnover is institutionalized. We use the same pyramid shaped manning model for infantry soldiers, dental techs and fighter pilots. The result is we have a larger force than necessary, and train way more than necessary, and need more resources to support this training than necessary, and need more personnel to support the training than necessary. Few people in the military have been doing their specific job for more than a year, and as a consequence you need about twice as many to do it. That’s where your personnel costs come from.

If you cut the turnover, increased career length and cut the overall force size you would save money paying more benefits to a smaller aggregate number.

I do believe that there is room in our military budget to trim some excess; however, sequestration is not the answer. We are already feeling constraints by operating off a continuing resolution budget with last year’s numbers, and sequestration cuts will only exacerbate the pain. We are already seeing the impacts of the continuing resolution budget and upcoming sequestration within my current organization where our civilian workforce will faces furloughs this spring. Service and department leaders published some compelling articles in the weeks leading up to today’s sequestration. It will be interesting to see in the coming months (and years) how accurate their predictions were. http://​www​.hqmc​.marines​.mil/​P​o​r​t​a​l​s​/​1​4​2​/​D​o​c​s​/​1​302http://​www​.public​.navy​.mil/​b​u​p​e​r​s​-​n​p​c​/​r​e​f​e​r​e​n​c​e/m

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