DOD strategy review paints bleak outlook

Leaders warn of tough tradeoffs as the department strives to meet savings requirements in coming years.

dollar question

In a July 31 press briefing discussing findings of a recent comprehensive strategy review, Defense Secretary Chuck Hagel underscored the tough choices Pentagon decision-makers face amid cuts that could reach nearly $1 trillion.

Hagel, accompanied by Joint Chiefs Vice Chairman Adm. James Winnefeld, said that the sweeping strategic choices and management review he directed earlier this year examined three central scenarios, and that all of them fell short of savings targets.

"To help DOD balance strategic ends, ways and means under these budget scenarios, the Strategic Choices and Management Review scrutinized every aspect of DOD's budget, including: contingency planning, business practices, force structure, pay and benefits, acquisition practices, and modernization portfolios," Hagel said. "Everything was on the table."

The three different scenarios include President Barack Obama's fiscal 2014 budget, which "backloads" $150 billion in defense cuts over a 10-year period; Budget Control Act sequester cap figures, which cuts $52 billion in fiscal 2014 and $500 billion over the next 10 years; and an "in-between" scenario, in which defense spending is reduced by $250 billion over 10 years.

The review was designed to help Pentagon leadership prepare for the possibility of continued sequestration cuts into 2014, as well as to inform out-year budget planning for the services and set the stage for the upcoming Quadrennial Defense Review. Hagel stressed that the review is not a blueprint but an evaluation that produced the three different options.

One area of focus is reducing DOD's overhead costs, which take up as much as half the Pentagon budget. Hagel said some options should be implemented immediately, regardless of the fate of sequestration.

The focus on overhead and management efficiencies includes measures such as reducing personnel at major military headquarters by 20 percent, starting with the Office of the Secretary of Defense, the Joint Staff, combatant commands and defense agencies. The measures would also consolidate functions in OSD and in intelligence analysis and production,  saving up to $40 billion over the next decade.

To help overcome hurdles in executing the cuts, Hagel said he has directed Deputy Defense Secretary Ash Carter to find an expert from outside DOD to help direct implementation.

Force structure and modernization stand to take significant hits in all three scenarios;  the cuts would "bend" and could possibly "break" national security strategy, the officials noted.

"Given that reality, the review examined two strategic approaches to reducing force structure and modernization that will inform planning for sequester-level cuts," Hagel said. "The basic trade-off is between capacity – measured in the number of Army brigades, Navy ships, Air Force squadrons and Marine battalions – and capability – our ability to modernize weapons systems to maintain our military’s technological edge."

Trading capacity for capability would result in a more technologically dominant military, but one that is smaller and able to perform fewer missions. Opting for size over capability would sustain power projection and presence, but would seriously slow or curtail modernization programs and cripple cyber development, Hagel said.

"Cuts on this scale would, in effect, be a decade-long modernization holiday," he said. "The military could find its equipment and weapons systems – many of which are already near the end of their service lives – less effective against more technologically advanced adversaries. We also have to consider how massive cuts to procurement and research and development funding would impact the viability of America's private sector industrial base."

And even if DOD combined all the different options, it leaves the Pentagon well short of the targeted reduction levels under sequestration, Hagel and Winnefeld noted. They also warned that it will be even worse if Congress does not cooperate with proposed cuts – any proposal to freeze military pay, for example, could be expected to meet stiff resistance on the Hill.

"The reality is that cuts to overhead, compensation and forces generate savings slowly. With dramatic reductions in each area, we do reach sequester-level savings – but only towards the end of a 10-year timeframe. Every scenario the review examined showed shortfalls in the early years of $30-35 billion," Hagel said. "These shortfalls will be even larger if Congress is unwilling to enact changes to compensation or adopt other management reforms and infrastructure cuts we proposed in our fiscal year 2014 budget. Opposition to these proposals must be engaged and overcome, or we will be forced to take even more draconian steps in the future."

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.