Defense Secretary Robert Gates and Joint Chiefs Chairman Admiral Michael Mullen just delivered a briefing on their plans to achieve $154 billion in overhead savings over five years and their plans to reinvest some of those savings in procurement. During the briefing, Gates announced the termination of the Marine Corps Expeditionary Fighting Vehicle (EFV) and the placing of the F-35B (STOVL) on a two-year probation. Gates also announced the nomination of Gen. Martin Dempsey to be the next Army Chief of Staff.
Highlights:
1. Gates believes that plans by the services, OSD, agencies, and commands to achieve $154 billion in overhead savings over next five years are on track.
2. $100 billion savings will be reinvested in procurement and operations
a. About $28 billion on unexpected training, operations, and maintenance costs.
b. Remaining $70 billion goes to the services for procurement:
i. Air Force: more Reapers and start of next-gen nuclear-capable bomber, which will have an unmanned option. More satellite launchers. New F-15 radars.
ii. Army: Overhaul/upgrade/SLEP for M-1, M-2, Strykers. More UAVs. More for soldier mental health and base facilities. New tactical comm. systems.
iii. Navy/Marine Corps: one new DDG, LCS, 2 fleet oilers. New and overhauled F-18s. More electronic attack. More for UAV development. Overhauled/upgraded/SLEPed Amtracs.
3. EFV cancelled. F-35B on two-year probation. If engineers can't fix its problems, it will be cancelled. Army SLAMRAAM and NLOS cancelled.
4. Army and Marine Corps will cut headcounts by 2015; Army by 27,000, USMC by about 15-20,000.
5. Gates to try again to get Tricare premium increase for working-age retirees.
6. OMB has delivered to DoD new top-line figure for next five years -- will be $78 billion less than last year's five-year projection.
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