Affordability Issues With DoD Contracts

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<h1>Affordability Issues With DoD Contracts</h1><strong> Author: <a href='http://www.articleseen.com/profile_Shaun Tat.aspx'>Shaun Tat</a></strong><br /><p>Department of Defense (DoD) signs a lot of contracts for different projects and affordability is an important aspect in all of them. Off late the government has made new laws that govern the DoD acquisition process. An efficiency initiative to the tune of $101 billion has also been set up by the Defense Secretary which is aimed at lowering the spending of the DoD. This is in line with the spending cuts that the whole country is trying to push through. The military services have been asked to increase the savings to $2 billion in 2012, $3 billion in 2013 and up to $5 billion by 2014. In fact, this savings program will continue till 2016 when the US military would have made net savings value $10 billion. The saved amount will be used as a fund for the military pay and also for buying weapons. The fact is that DoD acquisition contracts are now directly linked to how much money they can save. The military has to be cautious about its spending on contracts as the country is facing a deficit of $2 trillion. The mount saved must be the amount spent. Gates came up with a very efficient savings plan and at the same time Ashton carter, the undersecretary of Defense for acquisition also implemented a lot changes to increase savings. On f the most important changes made by Carter is to keep the affordability of the weapons on the same pedestal as the technical prowess, and this includes the Army Ground Combat Vehicle and Long Range Strike Missiles. The projects that cost too much and give little in return will be scrapped and the running programs will have to reduce their spending on new equipment and maintain the ones that they have. Also, there will be portfolio capability reviews conducted to decide whether the program is beneficial or not. A project that might be scraped is the Air Force's Multi platform Radar technology program as it is very expensive to carry on and has little benefits. Another project that is being watched closely is the army's medium Extended Air Defense System as closing it will save billions of dollars for the army. The programs that have a good chance of being approved are between $10-$12 million and have little impact on the national budget. These are only two of the policies that have been implemented by the Defense Secretary and the undersecretary of defense to help the US military in lowering their expenditure. This is true especially in the DoD acquisition process, while still maintaining our status as the primary army in the world.</p><strong>About the Author:</strong><br />These <a rel="nofollow" href="http://www.wbresearch.com/defenselogisticsusa/dod-acquisition-process.aspx">DoD Acquisition Process</a> is unique and requires authoritative being familiar with; check-out our favorite web site to read more.<p> Article Source: <a href='http://www.articleseen.com/Article_Affordability-Issues-With-DoD-Contracts_100033.aspx'> http://www.articleseen.com/Article_Affordability Issues With DoD Contracts_100033.aspx</a></p>

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Keywords : DoD Acquisition Process,

Category : Business : Management