Tuesday, February 18, 2020

The U.S. Navy Is Looking To Eliminate $40 Billion From Its Budget In The Next 6 Weeks

Forbes: Valentine’s Day Massacre: U.S. Navy Eliminating $40 Billion In 6 Weeks

The Department of the Navy is preparing to announce a crash program to find “at least $40B in real line-of-accounting savings” over the next six weeks. This lighting-fast cost-cutting initiative, called a “Stem-to-Stern Capability Strategic Review”, will begin on February 18 and end on Tuesday, March 31.

The projected $40 billion in cuts will meet a budget savings target in the Navy’s Fiscal Year 2022-2026 “Future Years Defense Program” and support a required June Program Objective Memorandum (POM) submission to the Office of the Secretary of Defense.

While nothing is exempt from review, the Navy intends to primarily look for savings in eight areas: 1) Duplication of Information Technology systems and infrastructure; 2) Consolidation/Elimination of headquarters, commands and organizations; 3) Streamlined naval logistics; 4) Enabling capabilities that can be outsourced; 5) Enabling capabilities that can be consolidated to support an integrated naval force; 6) Reductions in Global Force Management offerings; 7) Significant reductions in service support contracts; and 8) Organization structure and manning constructs.

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WNU Editor: Looking for where to cut is one thing. Having the political will to follow through is another. At the moment I do not see any political will in Washington to follow through on any cuts, starting from the White House.

2 comments:

Anonymous said...

You have to go through TQM, 6 Sigma, Lean, Kaizen and other stuff to understand this. Sometimes succeed and sometimes fail, but you keep at it.

If you stop trying, you are one of the carcasses beside the road. This is not BRAC. Some people will squeal and other will follow though, because meeting organizational objectives in is line with them meeting their objectives at the end of the review period.

Part of this is just natural for an organization. Improve and live stagnate, decay & die. Let's say the cut only 10 billion. They will take it, be somewhat happy and move on. That will make them hold another one next year.

This is a matter of pay me now or pay me later. Trump will cut the defense budget (rate of growth below inflation or something).

Think theory of constraints. Not have a budget deficit or debt is important like having good hardware and training. Back in the day the French Kings had Vauban Meanwhile the Churchill was oft stuck in quarters due to budget. England eventually won although slower, but they did not have the French Revolution or the Terror, because they had a budget.

Bob Huntley said...

,,,