Can the Pentagon Stop Overpaying for Weapons Systems?

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OGDEN, UT - MARCH 15: A F-35 fighter jet take-offs for a training mission at Hill Air Force Base on ... More March 15, 2017 in Ogden, Utah. Hill is the first Air Force base to get combat ready F-35's. They currently have 17 that might be deployed in the fight against terrorism and ISIS in the near future. (Photo by George Frey/Getty Images)
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President Trump has issued a new executive order on how the Pentagon should approach buying new weapons systems that, if implemented, would impose a new level of discipline on major arm makers.
This is consistent with his rhetoric as a candidate for president, where he talked about driving the “war profiteers” out of Washington. The order calls for weapons systems that run 15% over their originally estimated cost of 15% late in their projected delivery time to be subjected to a special review by the secretary of defense that could lead to cancellation or restructuring of the program.
This cost conscious proposal is in sync with the rhetoric of emerging military tech firms in Silicon Valley, which pledge to deliver next generation weapons more quickly and more affordably, running circles around their bigger brethren and injecting a much needed dose of competition into the defense sector.
The devil will be in the details. Recent cost overruns – like an 81% estimated cost overrun on the Sentinel intercontinental ballistic missile (ICBM) ohave undergone the kind of review suggested in the administration’s new executive order, but the Pentagon decided to double down on the program, not cancel it. And the F-35 program continues to be generously funded despite ongoing cost and performance issues. Will the Trump Pentagon be any different?
In addition, the proposed new approach calls for reducing regulations in Pentagon weapons purchasing. But cutting paper work is one thing – removing regulations designed to combat price gouging or make independent assessments of systems during their development stage need to be preserved and strengthened. Congress will need to take a close look at which regulations will be slated for elimination.

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