Posted on 03/26/2009 1:19:57 PM PDT by NormsRevenge
WASHINGTON, March 26 (Reuters) - President Barack Obama's nominee to fix Pentagon purchasing problems vowed Thursday to root out cost overruns in major arms programs, fearing the $150 billion arms-procurement budget may be on its way to becoming unaffordable.
Ashton Carter, a physicist, international-security expert and Harvard University professor, told his Senate confirmation hearing he expected funding for big-ticket programs to be under "increasing pressure in the future."
If confirmed as expected, Carter would become under secretary of defense for acquisition, technology and logistics. He said he would go program by program to "see if there isn't more to that iceberg" of budget overruns, schedule slips and performance shortfalls.
"We cannot change history," he added in reply to advance questions from the Armed Services Committee. "But it is important to assess whether programs that have already experienced cost growth are still out of control and whether they can still be afforded."
Taken as a whole, Carter's remarks could spell problems for a range of programs led by Lockheed Martin Corp (LMT.N), Boeing Co (BA.N), Northrop Grumman Corp (NOC.N), General Dynamics Corp (GD.N), BAE Systems Plc (BAES.L) and Raytheon Co (RTN.N) -- respectively the Pentagon's top six suppliers by sales.
The acquisition complex that Carter would take over has been widely faulted for a series of institutional, bureaucratic and contracting failures, including what Carter called "low-balling" costs and schedule estimates ..
The bill for the Defense Department's 95 major weapon procurement programs now totals $295 billion over their original budgets even though unit quantities and performance expectations have been cut to hold costs down, the nonpartisan Government Accountability Office found last year.
Obama said on Tuesday there was a consensus on a need to fix this problem. But, he said, taking on defense contractors, .. would be politically difficult.
(Excerpt) Read more at reuters.com ...
This is always the case. Weapon system start out with one purpose in mind but somehow people just want more add ons. Like awoman starts out by wanting one thing in a house and then keeps wanting changes along the way and piling on the extras. The”woman” is more often not, congress.
Oh good! Another f*cking Harvard ‘Whiz Kid’! Wasn’t screwing up Viet Nam enough for these arrogant twits?
Translation: The US will soon have the same level of military capability as Lichtenstein.
Ashton Carter, a physicist, international-security expert.
What makes him an international security expert? I thought he was just a liberal wimp professor, does that qualify you as an expert?
Not until Obama finds a way to surrender in Afghanistan. This rush for the door in Iraq does not bode well for any good outcome in Afghanistan. The sob has as much as said no more supplementals.
What management experience does this guy have? Did Gates pick him, or is this some egg-head with a Harvard peitgree?
Ash Carter really is a national security expert and has been around the system a long time. Pretty good resume in fact.
He is a fool.
“...vowed Thursday to root out cost overruns in major arms programs...” Most of those overruns come from Congress. There is ZERO chance of stopping cost overruns. ZERO.
“...fearing the $150 billion arms-procurement budget may be on its way to becoming unaffordable.” We’ve agreed to spend roughly 2,000 Billion in ‘stimulus’ and ‘rescues’. We’ve agreed to print roughly 1,500 Billion to bail out bad bank debt. But we don’t have 150 Billion for defense?
Bottom line - I think the defense contractors will eat this guy’s arugula lunch. This makes about as much sense as picking me to be CEO of a major airline.
Yes & no. I’d prefer a fixed cost, but fixed cost contracts are tough when you are dealing with emerging technologies. And IF a company did make a ‘killing’ by superb management, you can be certain the government would come after them for ‘excess profits’.
Take the F-22. Suppose they had a fixed cost contract for 700+ planes - what would have happened after all the changes in specifications and changes in total buy?
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