Pentagon Aims to Wring Savings Out of More Acquisition Reforms

November 13, 2012

The Pentagon on Tuesday released the next version of its "better buying power" initiative, saying the U.S. military needed to "wring every possible cent of value" from the dwindling dollars in the U.S. defense budget.

Deputy Defense Secretary Ashton Carter said the first version of the initiative, launched in 2010 when he was the Pentagon's chief weapons buyer, had generated some savings, but there was more work to do.

"We've tried things that have worked, we've tried things that haven't worked. We've learned," he told a news conference.

Carter said a focus on affordability had allowed the Navy to shave $2 billion off the projected cost of a new program to replace its aging Ohio-class submarines, plus $300 million more from the DDG-51 destroyer program.

The Air Force was prioritizing affordability targets on its program to build a new bomber, while the Army was cutting costs on ammunition purchases by pumping up competition and encouraging more small business participation, he said.

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