DoD Buzz

Morgan Stanley’s defense industry analysts, led by sharp veteran Heidi Wood, have written up their initial thoughts on “Obama and Defense.” They said the “leanings” of players in the Obama administration will be to cut back on defense spending following a “reasonable” time in office, which in their accounting equals around 18 months into his term.

In these days of tanker, CSAR-X and other protests it will probably come as small surprise that Northrop Grumman has filed a protest with the Government Accountability Office since it lost on its bid to gain part of the $100 billion or so Joint Light Tactical Vehicle program. “After careful examination of the data presented at the Nov. 5 [bid] debriefing, it is apparent that inconsistencies in the bid and evaluation process unfairly placed the Northrop Grumman team at a competitive disadvantage,” the company said in a press release.

In the last two days I’ve seen several stories citing polls that Rep. John Murtha (D-Penn.), one of the most powerful House members, may lose to the GOP after making some very unwise comments about Sen. Barack Obama (D-Ill.) and whether Murtha’s own constituents would vote for the senator. Murtha’s defeat — he is the second-ranking member of the appropriations committee and leads the defense subcommittee — would put Rep. Norm Dicks (D-Wash.) next in line to make the big defense spending decisions.

Word from the Pentagon is that this week should see the final version of the 2010 budget sent to the White House.

Known in lovely Pentagon-speak as the POM lock, this will mean the services are barred from screwing around with their numbers any more. At least until the next administration comes in and they start running to the new folks crying, “the wolf is at the door! The wolf is at the door.”

The Department of Homeland Security has stripped acquisition decision authority from the Coast Guard in the wake of the service’s disastrous management of the Deepwater program. The new arrangement should help DHS get the Coast Guard back on track, according to Robbin Laird, a defense consultant who has worked with the Coast Guard.

“With the coming of the new administration funding of appropriate homeland security functions is crucial. With this transfer of authority, DHS will be in a position to shape the future of the USCG and its approach to the future.

The Air Force generally does a rotten job of managing and budgeting for space programs. That was the strongest message sent today by John Young, undersecretary of defense for acquisition, technology and logistics, as he discussed the 2010 budget and acquisition in general during a wide-ranging discussion with reporters today.
Although Young said he didn’t want [...]

The debate about guns or butter hotted up last week, with Rep. Barney Frank (D-Mass.) calling for an enormous decline in defense spending of 25 percent and the head of the House Appropriations defense subcommittee, Rep. John Murtha (D-Penn.) saying money for weapons will have to come from spending slated to fund more Army personnel. Defense consultant Robbin Laird weighs in on the likely impacts of the financial crisis on defense spending.

So far most of the talk about the next Pentagon budget has been relatively optimistic and cautious. The Gates Pentagon clearly believes it must maintain spending at or above current levels to support forces in Iraq and Afghanistan and buy weapons for future conflicts. But that view is clearly not shared by some Democrats. As a GOP email screamed this afternoon: “HOUSE DEMOCRAT CALLS FOR $150 BILLION CUT TO DEFENSE SPENDING.”

“A billion here, a billion there, pretty soon you’re talking about real money.” Almost everyone knows the old quote by the great Illinois senator, Everett Dirksen. We bet our friends at the Missile Defense Agency regret the first time they heard it because the word around town is that they will probably see at least $1 billion cut from their topline by the next administration. And that’s real money.

The rumors, speculation and fear about China and its plans to build a true blue water fleet, complete with carrier groups and all that would mean for the shift in power in the Pacific, appear to have gained some substance.
The respected naval analyst Norman Polmar is hearing reports “that 50 Chinese naval officers have begun [...]