Greg Grant. DoD Buzz, 09 April 2010.
In DOD’s funding forecasts, future costs to fight the wars in Iraq and Afghanistan are vastly understated as are personnel and healthcare costs. “Reset” costs for Army and Marine equipment returning from Iraq are also vastly understated, as all are new aircraft programs, e.g. F-35, tanker. The shipbuilding plan is also underfunded. Cost overruns in the F-35 and satellites continue due to immature technologies, the analysis says, and risks shifts to existing platforms.
The biggest future growth areas will be in networked communications and overhead surveillance, followed by repair, maintenance and training. The future requirements process will be driven more by combatant commanders than service bureaucracy, more joint and fewer overall contracts and programs. There will be further monopolization of large platform primes, e.g. one tank builder, one aircraft tanker builder and one shipbuilder.