Critical Choices in a Time of Austerity

Abstract

After more than a decade of conflict, the United States is drawing down defense spending. The Defense Department must cope with declining resources at a time when it also faces persistent global threats and is under pressure to modernize aging systems to deter future competitors. Faced with declining defense budgets, aging weapon systems, and growing personnel costs, the Department of Defense (DoD) must avoid austerity measures that result in a hollow force and focus on how to maintain and enhance key capabilities at reduced cost. Many U.S. allies faced similar challenges more than a decade ago and opted to transform their military structure to concentrate on their core competency of deterrence and national defense. Their efforts included migration of uniformed personnel to combat/combat support functions, privatization of infrastructure, and the use of public/private partnerships to buy outcomes, versus equipment and services. By highlighting numerous successful precedents, this paper explores how industry and government as partners can support enhanced operational agility and affordability.