In the midst of debates about America’s decline, one fact is unchallenged: the United States possesses the most powerful military on the planet. Unfortunately, the United States’ increasingly inability to develop and acquire military hardware on-time and within budget is threatening the size and capability of America’s armed forces. If the Department of Defense does not significantly reform its acquisition processes now, in two or three decades the American military will likely be significantly less effective than the current force.
The military’s efforts to purchase sophisticated weaponry have never been free of flaws, with weapons programs frequently encountering some combination of cost overruns and production delays. For example, the F-111 program in the 1960s was originally intended to produce a joint fighter for the Navy and Air Force, but the Navy withdrew from the project because the aircraft failed to meet its specifications. Similarly, cost overruns on Black Hawk helicopters and Patriot missiles prompted passage of the 1982 Nunn-McCurdy Act, which requires the Secretary of Defense to notify Congress when acquisition programs exceed certain cost growth thresholds. However, even with such historical context, the list of recent acquisition failures is extensive and shocking.
Three separate major aircraft acquisition programs have been mired in chaos. Expensive technical difficulties reduced the purchase order of F-22 Raptors from an originally planned 750 to only 187. The cost of F-35 Joint Strike Fighter has risen over 80 percent, making it the United States’ most expensive weapons program, and Defense Secretary Robert Gates has threatened to cancel the troubled project. Finally, the Air Force’s efforts to replace its decades-old aerial refueling tankers have been troubled by corruption and contractor protests.
The Pentagon’s acquisition meltdown has not been limited to aircraft. In 2009, Secretary Gates canceled the Army’s Future Combat Systems program, which had failed to produce any of the eight major planned vehicles despite years of research and development at a cost of almost $200 billion. The V-22 Osprey entered service in the mid-2000s at more than twice its originally estimated cost while the amphibious Expeditionary Fighting Vehicle was canceled in January due to massive cost overruns. The Navy has canceled its next-generation CG(X) cruiser and limited its acquisition of DDG-1000 (Zumwalt) class destroyers to three ships at a total cost of about $3 billion per ship. The smaller Littoral Combat Ship (LCS) has more than doubled in cost, and the lead ship of one of the two LCS classes developed a six-inch crack in its hull during sea trials. The Coast Guard’s “Deepwater” fleet overhaul has also encountered numerous technical difficulties and cost overruns, including major cracks in refitted ships that then had to be removed from service.
All of these acquisition failures serve to weaken America’s military. Cost overruns force the military to either purchase fewer vehicles and weapons or cut funds from other parts of their budgets. Production delays present the services with a difficult dilemma: the choice between temporarily weakening the force by retiring old equipment as scheduled or paying additional costs to maintain aging and increasingly unreliable weaponry. Canceling acquisitions late in their development also leaves the services with no clear replacement for aging equipment, requiring them to either purchase older technologies or invest large sums in service life extension programs while organizing a new acquisition program from square one. For example, even before the Future Combat Systems program was canceled, the Army anticipated spending $2 billion annually on maintenance and upgrades for aging equipment.
As a result of these failures, the United States is left with a military that is not only smaller but also less reliable and more difficult to maintain. In the mid-1980’s, the Air Force spent $7 billion (inflation-adjusted) to purchase over 200 fighter/attack aircraft each year, but it spent about $5 billion annually between 2003 and 2009 to purchase only about 20 F-22s per year. In addition, one report found that about 70 percent of Army systems failed reliability requirements in operational testing between 1997 and 2006. Compounded over time, the unplanned shrinking of the military and the unreliability of new equipment will undermine its ability to complete its missions.
The responsibility for this grim situation lies with both the contractors themselves and the military’s approach to acquisitions. Only a handful of large companies, such as Boeing, General Dynamics, Lockheed Martin, and Northrop Grumman, are capable of undertaking massive military programs. But the quality of their work has repeatedly proven questionable.
Troublingly, instead of focusing on engineering, these companies consistently seek to exploit the government by playing to Congress. According to opensecrets.org, these four companies together spent nearly $60 million on lobbying in 2010. Contractors also often strategically distribute their manufacturing facilities and subcontracts to secure Congressional support. For example, Lockheed Martin inefficiently distributed subcontracts for various F-22 components to 44 states. While such behavior is unsurprising for profit-seeking corporations and unlikely to change, the current acquisition crisis would no doubt improve if major contractors paid more attention to their vital role in national security and less attention to maximizing their income from tax dollars.
The government nonetheless bears a significant share of responsibility for the current state of military acquisitions. Improved oversight of contractors would help ensure that projects proceed smoothly. The Pentagon’s implementation of Total System Performance Responsibility in the mid-1990s diminished oversight of several major acquisition programs. For example, the program manager of an Army missile program had no contractual authority to require preliminary tests, which the contractor skipped, and the missile ultimately failed in full development testing.
The government should also impose strict schedule cutoffs and/or cost ceilings at various steps in the development, testing, and production of military hardware that would either automatically cancel the project or require contractors to bear 100 percent of additional costs. Such an approach would strengthen contractors’ incentives to deliver on their promises and would cancel troublesome programs early, before substantial costs are borne and the services are left with no replacement for equipment due for retirement. The Nunn-McCurdy Act is designed to serve a similar purpose. It only requires, however, that the Secretary of Defense justify over-budget programs to Congress, which rarely cancels any project. Specification adjustments for equipment under development must also be minimized, as demands for added capabilities often cause significant cost increases and delays.
On a deeper level, the military needs to reassess its approach to acquisition programs. Many of the troubled recent acquisition programs have sought to combine various capabilities into one system. The Pentagon’s acquisition projects end up sounding like something out of the imaginings of a schoolboy or a science fiction writer rather than evolutionary advancements of military technology. For example, the F-22 was designed to be not only an unmatched air superiority fighter but also to possess stealth, ground strike, and reconnaissance capabilities; the Osprey was designed as a helicopter-fixed wing plane hybrid with adjustable rotors.
Rather than selecting specifications for its acquisitions based on clearly defined strategic goals and planned missions, the Pentagon seems to embrace a philosophy of putting as many high-tech capabilities into each piece of equipment as possible. The Pentagon has not yet realized that these systems, prone to long delays and major technical difficulties, are too expensive to sustain forces at current levels. In an era where small-scale, low-tech conflict is more likely than great power war, it must realistically assess the need for sophisticated, high-cost weapons programs. At the same time, the military must keep in mind that the strategic environment can change drastically in the years or even decades it takes to develop such sophisticated weapons systems.
The Department of Defense must ultimately make a choice between maintaining an extremely high-tech but smaller military or a larger but less technologically sophisticated force, as it has proven incapable of acquiring the weaponry for a military that is both large and futuristic. While the superior technology of newer systems may compensate to some extent for lesser numbers, the military seems headed towards a smaller, unreliable force filled with equipment that fails to live up to grandiose expectations. A more sober evaluation of the military’s needs and a realistic skepticism of cost estimates and promised capabilities will become increasingly important as federal deficits tighten the defense budget.
If the current failures in the development and acquisition process persist, the United States will find itself pouring massive sums of money into its military without possessing the capability to deploying large numbers of ships, planes, and tanks. Winning the wars of the future begins with the battle to build tomorrow’s military—a battle the United States is currently losing.


