DefenseTech Military.com
  • Categories
  • Full Archives
  • Monthly Archives
  • About Defense Tech
Subscribe to RSS

About Defense Tech

Defense Tech exam­ines the inter­sec­tion of tech­nol­ogy and defense from every angle and pro­vides analy­sis on what’s ahead.

Tip Us Off

Tip for Defense Tech?

SEND IT!

It’s Confidential!

Categories

  • 'Canes
  • Afghan Update
  • Ammo and Munitions
  • Armor
  • Around the Globe
  • Av Week Extra
  • Axe in Iraq (and Elsewhere)
  • Bizarro
  • Blimps
  • Blog Bidness
  • Body Armor Blues
  • Bomb Squad
  • Brownshoes in Action
  • Bubbleheads, etc.
  • Cammo Green
  • Catch the "Buzz"
  • Chem-Bio
  • Civilian Apps
  • Cloak and Dagger
  • Commandos
  • Comms
  • Contingency Ops
  • Cops and Robbers
  • Cyber-warfare
  • Data Diving
  • Defense Tech Poll
  • Defense Tech Radio
  • Dissent Tech
  • Door Kickers
  • Drones
  • DT Administrivia
  • Eat DT's Dust
  • Extra! Extra!
  • Eye on China
  • Fast Movers
  • FCS Watch
  • Fire for Effect
  • FOS Files
  • Friday Funnies
  • Gadgets and Gear
  • Going Green
  • Grand Ole Osprey
  • Ground Vehicles
  • Guns
  • Homeland Security
  • In the Weeds with Eric
  • Info War
  • Iraq Diary
  • Jarhead Jazz
  • JSF Watch
  • Just War Theories
  • Lasers and Ray Guns
  • Less-lethal
  • Logistics
  • Los Alamos and Labs
  • M4 Monopoly
  • Medic!
  • Mercs
  • Missiles
  • Money Money Money
  • Most Wanted
  • MRAP Edge
  • Net-Centric
  • Nukes
  • Old Skool
  • Our Shrinking Planet
  • Planes, Copters, Blimps
  • Podcast
  • Politricks
  • Polmar's Perspective
  • Popular Mechanics
  • Rapid Fire
  • Raptor Watch
  • Red Team
  • Retro-Futuro
  • Robots
  • Roll Your Own
  • Sabra Tech
  • Ships and Subs
  • Snipertech
  • Soldier Systems
  • Space
  • Special Ops
  • Star Wars
  • Strategery
  • Stray Trons
  • Tactical Development
  • Terror Tech
  • The Deadlies
  • The Defense Biz
  • The Peoples' Site
  • The Sunday Paper
  • The Tanker Tango
  • The View from Av Week
  • Those Nutty Norks
  • Training and Sims
  • Trimble on the Case
  • Uncategorized
  • Video Lounge
  • War Update
  • Ward'z Wonderz
  • You can run…

Archives

  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • July 2007
  • June 2007
  • May 2007
  • April 2007
  • March 2007
  • February 2007
  • January 2007
  • December 2006
  • November 2006
  • October 2006
  • September 2006
  • August 2006
  • July 2006
  • June 2006
  • May 2006
  • April 2006
  • March 2006
  • February 2006
  • January 2006
  • December 2005
  • November 2005
  • October 2005
  • September 2005
  • August 2005
  • July 2005
  • June 2005
  • May 2005
  • April 2005
  • March 2005
  • February 2005
  • January 2005
  • December 2004
  • November 2004
  • October 2004
  • September 2004
  • August 2004
  • July 2004
  • June 2004
  • May 2004
  • April 2004
  • March 2004
  • February 2004
  • January 2004
  • December 2003
  • November 2003
  • October 2003
  • September 2003
  • August 2003
  • July 2003
  • June 2003
  • May 2003
  • April 2003
  • March 2003
  • February 2003
  • January 2003

Home » FCS Watch » Behind the Army’s Cash Crunch

Behind the Army’s Cash Crunch

Our Army gets $168 bil­lion a year to train and fight. So why do its chiefs keep com­plain­ing about a cash crunch? The Wall Street Journal’s Greg Jaffe explains, in maybe the best arti­cle on the sub­ject to date.
hummer_n_troops.jpg

From 1990 to 2005, the mil­i­tary lav­ished money on billion-​​dollar destroy­ers, fighter jets and missile-​​defense sys­tems. Defenders of such pro­grams say the U.S. faces a broad array of threats and must be pre­pared for all of them. High-​​tech weaponry con­tributed to the swift top­pling of the regimes in Iraq and Afghanistan, but has been of lit­tle help in the more dif­fi­cult task of sta­bi­liz­ing the two coun­tries.
Of the $1.9 tril­lion the U.S. spent on weaponry in that period, adjusted for infla­tion, the Air Force received 36% and the Navy got 33%. The Army took in 16%, it says. Despite the wars in Iraq and Afghanistan, both dom­i­nated by ground forces, the ratio hasn’t changed sig­nif­i­cantly…
It may seem hard to believe that a coun­try which allo­cated $168 bil­lion to the Army this year — more than twice the 2000 bud­get — can’t cover the costs of the wars in Iraq and Afghanistan. But the two pil­lars of the Army, per­son­nel and equip­ment — both built to wage high-​​tech, firepower-​​intensive wars — are under enor­mous stress:
The cost of basic equip­ment that sol­diers carry into bat­tle — hel­mets, rifles, body armor — has more than tripled to $25,000 from $7,000 in 1999.
The cost of a Humvee, with all the added armor, guns, elec­tronic jam­mers and satellite-​​navigational sys­tems, has grown seven-​​fold to about $225,000 a vehi­cle from $32,000 in 2001.
The cost of pay­ing and train­ing troops has grown 60% to about $120,000 per sol­dier, up from $75,000 in 2001. On the reserve side, such costs have dou­bled since 2001, to about $34,000 per sol­dier.
At Fort Knox, Ky., the cash crunch got so bad this sum­mer that the Army ran out of money to pay jan­i­tors who clean the class­rooms where cap­tains are taught to be com­man­ders. So the offi­cers, who will soon be lead­ing 100-​​soldier units, clean the office toi­lets them­selves.
“The cost of the Army is being dri­ven up by [Iraq and Afghanistan]. That’s the fun­da­men­tal story here,” says Brig. Gen. Andrew Twomey, a senior offi­cial on the Army staff in the Pentagon. The increased costs are “not from some wild weapons sys­tem that is off in the future. These are costs asso­ci­ated with cur­rent demands.“
Senior Army offi­cials con­cede they mis­tak­enly assumed prior to the Iraq war that if they built a force capa­ble of win­ning big con­ven­tional bat­tles, every­thing else — from coun­terin­sur­gency to peace­keep­ing — would be rel­a­tively easy. “We argued in those days that if we could do the top-​​end skills, we could do all of the other ones,” says Lt. Gen. Thomas Metz, the deputy com­man­der of the Army’s Training and Doctrine Command. Iraq has proven that guer­rilla fights demand dif­fer­ent equip­ment and skills. “I have had to eat a lit­tle crow,” says Gen. Metz…
The Humvee stands as a metaphor for the prob­lems the Army faces. First fielded in the early 1980s, it was designed to ferry sol­diers around behind the front lines of a con­ven­tional war. In recent years, the vehi­cle, which troops drive on the streets of Iraq, has been mod­i­fied count­less times. The Army has bolted lay­ers of armor onto it to pro­tect troops from road­side bombs. It has added sophis­ti­cated elec­tronic jam­mers, rotat­ing tur­rets, big­ger machine guns, satel­lite nav­i­ga­tional sys­tems and bet­ter radios.
The result is a Humvee that is much bet­ter than the ver­sion the Army took to Iraq in 2003. But the add-​​ons have dri­ven up its cost. The mod­i­fied vehi­cle is top heavy and tends to tip over at high speeds. Army offi­cials say they can’t add more weight with­out over­whelm­ing the engine or break­ing the axle.
“The Army rec­og­nizes that the Humvee has reached a limit of our abil­ity to improve it for the cur­rent fight,” Gen. Speakes says.
What the Army says it really needs is an all-​​new vehi­cle, designed to bet­ter with­stand road­side bombs that have become part of life in Iraq. But such a vehi­cle likely won’t be ready until 2010 or 2012, Army offi­cials say. In the interim, the Army wants to buy some­thing on the com­mer­cial mar­ket — South Africa, Turkey and Australia all make alter­na­tives. Yet it’s not clear whether the Army, which is strug­gling to equip the cur­rent force, has the money.

Share |

December 11th, 2006 | FCS Watch, Gadgets and Gear, Money Money Money | 234110 Comments »http://defensetech.org/2006/12/11/behind-the-armys-cash-crunch/Behind+the+Army%27s+Cash+Crunch2006-12-11+21%3A25%3A04jason You can skip to the end and leave a response. Pinging is currently not allowed.

« « Rapid Fire 12/​11/​06 | Aussie Military Bans Blogs » »

This website uses IntenseDebate comments, but they are not currently loaded because either your browser doesn't support JavaScript, or they didn't load fast enough.

  1. Cranky Observer says:
    December 11, 2006 at 5:10 pm

    Well, that is what hap­pens when you prac­tice dis­hon­est bud­get­ing in any large-​​scale endeav­our. I have writ­ten let­ters to my 3 con­gressper­sons in each of the last three years ask­ing that the mil­i­tary bud­get be han­dled in an open, above-​​board man­ner with (1) a proper fold­ing of the Iraq costs into the Army’s expense bud­get (2) no “sup­ple­men­tals” to hide fur­ther Iraq costs (3) proper depre­ci­a­tion account­ing for the equip­ment being burned up (4) appro­prate pay raises for ser­vice per­son­nel and accrual for VA costs (5) and oh yeah, a tax increase to pay for all this as per WWII.
    The response each year from each of them was a blast of polit­i­cal “stay­ing the course; fight­ing them over there; sup­port the troops” rhetoric with zero men­tion of hon­est bud­get­ing.
    Now the con­se­quences come home to roost. My guess is that the ser­vices are being told to defer every pos­si­ble repair and replace­ment expense until 2009 so that the next admin­is­tra­tion can take the blame.
    Cranky

    Reply
  2. PresidenToor says:
    December 11, 2006 at 5:14 pm

    So, they have this HMMVV it was cheap.
    Then they put a bunch of stuff on it that was nec­es­sary.
    Now it’s to heavy, expen­sive, and down­right a haz­ard.
    But they spent all them money putting stuff on it.
    So now they have no money to replace it.
    Talk about fore­sight.
    All mil­i­taries should be ever-​​evolving. Not stag­nant, that’s why the HMMVV is a crap­tas­tic vehi­cle. When the army had no war to fight the evoloution of the HMMVV became stag­nant while satel­lite nav­i­ga­tion, tur­ret sys­tems, elec. jam­ming, and what not all grew up around it. If the army really wanted a vehi­cle they could design and build one any­where between 90 days to a year, but oh wait they have no money.
    It’s true you can’t pre­dict wars, but it sure doesn’t hurt to try, or at least have the design in some vault somewhere.

    Reply
  3. Byron Skinner says:
    December 11, 2006 at 11:23 pm

    Good Evening Folks,
    This arti­cle in todays WSJ is most excel­lent and is must read­ing by any­one who has an inter­est in the bud­get process and the DoD.
    ALLONS,
    Byron Skinner

    Reply
  4. Ranger Jay says:
    December 12, 2006 at 10:36 am

    “What the Army says it really needs is an all-​​new vehi­cle, designed to bet­ter with­stand road­side bombs that have become part of life in Iraq.“
    Umm, I think we already have a design for such a vehi­cle. It’s called a “tank,” in some circles.

    Reply
  5. Robot Economist says:
    December 12, 2006 at 11:08 pm

    Ranger — Good point, but tanks are huge, hard to drive and require lots of flat, rel­a­tively obstacle-​​free space to run on. It’d be more expen­sive to con­vert every light and mech­a­nized infantry BCT into an armor BCT. On top of that, tanks still wouldn’t offer pro­tec­tion against shaped-​​charge pro­jec­tiles (RPGs and some mor­tars) or IED attacks from below (make-​​shift mines).
    Whatever hap­pened to all of that early Bush admin­is­tra­tion rhetoric about “capabilities-​​based plan­ning”? I must be gullible in my youth to believe force plan­ners would take a more holis­tic approach to pro­cure­ment — espe­cially after 9/​11.

    Reply
  6. Curt Swanson says:
    December 14, 2006 at 4:15 am

    “…the cash crunch got SO BAD this sum­mer that the Army ran out of money to pay janitors…So the offi­cers, who will soon be lead­ing 100-​​soldier units, clean the office toi­lets them­selves.“
    OMG…how can this pos­si­bly be? Is this the state of our Army lead­ers today, actu­ally hav­ing to clean up a mess they made them­selves. This should be a good les­son to these young com­man­ders in how to con­duct mil­i­tary oper­a­tions. These junior offi­cers should con­sider it char­ac­ter build­ing, while sav­ing the American tax­payer a few dollars.

    Reply
  7. Chuck D. says:
    December 14, 2006 at 10:12 am

    Amazing. Whatever hap­pened to “We’re going to pay for Iraq’s free­dom with Iraqi oil” That was a novel idea.
    Quote, ” The cost of basic equip­ment that sol­diers carry into bat­tle — hel­mets, rifles, body armor — has more than tripled to $25,000 from $7,000 in 1999″
    I’m all for sup­ply­ing our Military with the most up to date tech­nol­ogy and equip­ment. They deserve the absolute best equip­ment with­out a doubt, but goug­ing for the sake of the econ­omy I don’t agree with this. It’s our tax dol­lars, and there needs to be account­abil­ity.
    For those of you that sell prod­ucts to the Government, check out the costs of goods on any GSA, NASA, or AFWAY sched­ule. The gov­ern­ment pays three to four times more for the same elec­tronic goods that can be found in retail stores such as Wal Mart, and the prod­ucts are the same qual­ity.
    Who’s watch­ing the store?
    I’m going to say this again. Whatever hap­pened to “We’re going to pay for Iraq’s free­dom with Iraqi oil”.

    Reply
  8. Jeff Moon says:
    December 14, 2006 at 11:24 am

    What’s new!!
    It seems to me that the ser­vices for the most part either fight the last war or his­tory just seems to repeat itself. Case in point the cur­rent Iraq war has a lot of same prob­lems as the Vietnam war,IE cor­rupt gov­ern­ment frac­tional fight­ing and the troops stuck inthe mid­dle again.
    Jeff Moon

    Reply
  9. Major Riptide says:
    July 7, 2007 at 6:31 am

    “‘…the cash crunch got SO BAD this sum­mer that the Army ran out of money to pay janitors…So the offi­cers, who will soon be lead­ing 100-​​soldier units, clean the office toi­lets them­selves.‘
    OMG…how can this pos­si­bly be? Is this the state of our Army lead­ers today, actu­ally hav­ing to clean up a mess they made them­selves. This should be a good les­son to these young com­man­ders in how to con­duct mil­i­tary oper­a­tions. These junior offi­cers should con­sider it char­ac­ter build­ing, while sav­ing the American tax­payer a few dol­lars.“
    Posted by: Curt Swanson at December 14, 2006 04:15 AM
    As we now see the Army offer­ing $20,000 a piece to these same Captains who are clean­ing toi­lets at Fort Knox, I won­der if Mr. Swanson still thinks this was a good idea?
    How many of those Captains, dis­ol­lu­sioned by repeated tours to Iraq and time away from fam­ily, only to return to Knox to clean toi­lets, decided to call it quits and get a new job? How many decided that their con­tem­po­raries in the civil­ian world didn’t have to clean toi­lets, much less clean toi­lets after risk­ing thier lives and alien­at­ing their fam­i­lies for years on end?
    Now, we are faced with pay­ing $20,000 a piece to keep them in, or watch­ing them walk and pay­ing on the order of $200,000 to train a new one — a new one that will not have the com­bat expe­ri­ence of the one who walked (that is gone for­ever).
    How may tax dol­lars did you really save? Did you really build some char­ac­ter into a young man who has endured IEDs, ambushes, and watched the guts of his men spilled across a dusty road in Iraq? Do you think you can make such a man clean toi­lets and teach him some­thing?
    I would offer that your premise of both sav­ing money and build­ing char­ac­ter are fun­da­men­tally flawed. Not know­ing you per­son­ally, I sin­cerely hope you are not in a posi­tion to influ­ence the Army in any way.
    That’s the PC way to put it. Frankly speak­ing, you are and idiot and I know damn well you haven’t been down­range, so stop try­ing to sound smart about some­thing you know noth­ing about. Stay home (like the rest of America) and let the men do the fight­ing.
    –Riptide

    Reply

Leave a Reply

Click here to cancel reply.

Spam Protection by WP-SpamFree

    Most Popular Posts
    • What Does this Handle Do?
    • Marines Quiet About Brutal New Weapon
    • Starship Troopers Meets G.I. Joe
    • Dowd's Bogus Grief Deficit
    • Semi-auto Grenade Thrower
    • Adapting Women to Subs
    • Fort Hood Rampage
    • Keep it Simple
    • Mystery Drone Revealed
    • REPLACEMENT ARM, GOOD AS NEW
    Recent Comments
    • Semi-auto Grenade Thrower
      No. I am not saying a grenade launcher on a rifle is a hoax. I...
      Zandor
    • Semi-auto Grenade Thrower
      For someone who trashes all the readers of the blog you sure do...
      a1189
    • Market for Acoustic Defense Systems Heats Up
      These devices vibrate tissue and bone not just...
      WJS
    • Semi-auto Grenade Thrower
      So are you saying the grenade launcher is a hoax or the M-16?...
      WJS
    • Fort Hood Rampage
      Dear Cannon Fodder; Only politically correct patriots should be accepted...
      Zandor
    • Dowd’s Bogus Grief Deficit
      LOL Still all this pissing an moaning about the editorial...
      Philo
    • Fort Hood Rampage
      I'd say go read some history on fascist ideology and then compare that...
      Philo
    • Fort Hood Rampage
      Islame isn't a race, genius……
      Philo
    • Semi-auto Grenade Thrower
      I sure as hell don't need to have someone take pictures of me...
      Zandor
    • Fort Hood Rampage
      "Now please tell me where in the Bible Jesus or his disciples...
      DualityOfMan
    Recent Articles
    • Semi-​​auto Grenade Thrower
    • Market for Acoustic Defense Systems Heats Up
    • Fort Hood Rampage
    • Keep it Simple
    • Airbag Defense
    • Dowd’s Bogus Grief Deficit
    • Did Someone Move the Furniture Around?
    • Lockheed Says Sbirs Still on Track For 2010
    • What Does this Handle Do?
    • Adapting Women to Subs
  • Channels: Military.com | Military Benefits | Military News | Off Duty | Join the Military | Military Education | Veteran Jobs | Military Money | Military Deals | Military Family | Military Community
  • Military.com Network: Military.com | MilBlogging | Defense Tech | DoD Buzz | SpouseBuzz | Fred's Place | GI Bill Express
  • Services: Army | Navy | Air Force | Marine Corps | Coast Guard | National Guard | Military Spouse
  • About Military.com About Us | Advertise With Us | Press | Affiliate Program | Monster Network | Help | Feedback | Privacy Policy | User Agreement | © 2009 Military Advantage