Capitol Hill Reports

Home About Us Staff & Contact Info Order Capitol Hill Reports Subscriber Log In

Fate of Major Defense Programs Still Undecided
Wednesday
, March 18, 2009
10:00 PM

Department of Defense Comptroller Robert Hale told the House Budget Committee on Wednesday that the administration has not yet laid out a final strategy on major weapons programs.

"No decisions have been made," Hale said throughout the hearing in response to questions on various programs, adding that the Pentagon faces difficult choices between cost and performance trade-offs.

Sign Up for News Alerts
News Archive

"Choices will be necessary because shifts from supplemental to base funding will consume funding and because the topline must accommodate some growing programs such as health care," Hale testified.

The Defense Department expects to spend $357 billion on developing and procuring major defense systems over the next five years, and billions more to cover operation and maintenance costs.

The Government Accountability Office has consistently designated DoD's management of its major weapons acquisitions as a high-risk area since 1990. Last year, GAO reported that the total acquisition cost of DoD’s portfolio of major defense programs under development or in production had grown by $295 billion adjusted for inflation, including a 45.5 percent hike in the Army's Future Combat Systems and 18.2 percent increase in the Joint Strike Fighter program.




The White House's defense budget outline, sent to Congress in late February, calls for overhauling the acquisition process in order to lower the risk of cost overruns and schedule delays, but falls short on specifics. Details of the Pentagon's funding proposals and possible terminations for major weapons programs will be contained in the president's full budget request that will be released in April. With respect to topline figures, the administration is requesting $533.7 billion in discretionary funding for base Pentagon programs in FY 2010, a four percent increase above this year's level (excluding funding contained in the economic stimulus bill), and $130 billion for war operations in Iraq and Afghanistan next year.

"If you're going to get at cost growth in weapons you need to go into the early part of a weapon's life," Hale said, adding that stability in production rates would need to be achieved, but will be a difficult task since budgets change.

Hale would not rule out any programs as off the table. When asked about missile defense initiatives, the comptroller said that these programs are being "looked at carefully."




Hale also told lawmakers that the White House may send Congress a $75.5 billion war supplemental as early as next week that will fund military operations in Iraq and Afghanistan through the remainder of FY 2009. If that level is enacted, it would bring total war spending to $141.5 billion for the fiscal year ending September 30, 2009.

"In order to avoid funding problems and to maintain continuity of operations for the troops, we hope that Congress will enact this remaining supplemental prior to the Memorial Day recess," he said.

© Copyright Capitol Hill Reports, Inc. (2009). No claim to original government works.