Panel Says DoD Could Save Billions by Changing Business Practices

As the nation currently struggles with over a $17 trillion dollar debt, Washington should be looking for ways to save money.  Too often Washington’s only answer to the massive debt is either raise taxes or dramatically cut spending.  Has anyone ever thought of revamping how different agencies and departments spend money?

An influential Pentagon advisory board stated in a new report that the US Defense Department could save $27- to $37-billion annually if it implemented private sector businesses practices used during lean years.

This could be problematic for members of both Democrats and Republicans who use the Department of Defense as a “cash cow” to bring jobs to their states and districts.

President Eisenhower admonished Americans in his farewell address, “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex.”

President Eisenhower was not speaking about one political party, but to both Republicans and Democrats, on how it views and allocates resources to the Pentagon.

In the report the majority of the savings would come from revamping and overhauling the Department of Defense massive supply and logistical chain.   

The difficult proposition and always a political minefield are changes to the military compensation and benefits. This provides a firestorm during last month’s budget agreement regarding trimming pension increases for military retirees.        

Defense Secretary Chuck Hagel said in December. “But we must do so in a deliberate manner after careful consideration of how best to ensure this department is able to carry out its mission of defending the nation.”

The Department of Defense needs to start looking at the best business practices employed by the private sector and start implementing these changes, instead of just taking the easy approach of just systematically cutting.

Unfortunately Washington can never make the hard choices.    

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