Daily Report

The Pentagon will have to pay for most of its modernization efforts by reducing its massive overhead costs, says Defense Secretary Bob Gates. Speaking May 8 at the Eisenhower Presidential Library in Abilene, Kan., Gates said the three percent real growth he’s advocating in defense spending—and he admitted that the Administration has only asked for “just under two percent” above inflation—will just barely cover the escalating costs of personnel, healthcare, and operations and maintenance. Modernization will have to be paid for “within the programmed budget,” more specifically from the overhead costs that account for 40 percent of defense spending. Converting those tail-to-tooth savings may provide roughly two to three percent growth for modernization, he said. The silver lining for the services: Gates said he’ll let them keep whatever savings they find to buy new equipment. (Gates speech) (Also see "Simple Matter of Math" from Monday's DR)

Defense Secretary Robert Gates wants the services to find upward of $70 billion in five-year overhead savings to help pay for modernization, but he also expressed his doubts that they’ll succeed. On May 7 aboard a flight to Kansas City, Mo., Gates told reporters that he wants the Pentagon to find $10 billion in savings in 2012 and as much as $15 billion per year subsequently as “the only way” to afford modernization “with the topline we have been given.” However, in his speech on the following day at the Eisenhower Library in Abilene, Kan., Gates acknowledged that the services likely won’t find such savings and the force will have to shrink commensurately. “Realistically, it is highly unlikely that we will achieve the real growth rates necessary to sustain the current force structure,” he said. (Gates May 7 transcript) (Gates May 8 speech)

The Defense Department should move toward a “flatter, more effective, and less costly” organization with shorter chains of command and fewer flag officers if it wants to cut its staggering overhead costs, Defense Secretary Robert Gates said Saturday. In a speech marking the 65th anniversary of Victory in Europe Day in Abilene, Kans., Gates said the gap between him and an action officer "may be as high as 30 layers,” compared to 17 layers just a decade ago. The Pentagon “continues to maintain a top-heavy hierarchy that more reflects 20th century headquarters superstructure than 21st century realities,” Gates said, noting that industry has “flattened and streamlined the middle and upper echelons of its organization." Gates wants scrutiny of any offices that primarily report to or supervise other headquarters and secretariats; jobs that “could be converted to a lower grade;” and agencies with overlapping functions. (Gates speech)

The Air Force announced Monday that Gen. Stephen Lorenz will be retiring after 37 years of uniformed service. He had led Air Education and Training Command since July 2008. Lorenz is a graduate of the US Air Force Academy and...

The Air Force on May 7 began Schriever Wargame VI, this year’s iteration of its recurring space wargame. The Space Innovation and Development Center, located at Schriever AFB, Colo., conducts the event, which runs through Wednesday, at Nellis AFB, Nev....

In the first three months of 2010, U-2 surveillance-reconnaissance aircraft with the 99th Expeditionary Reconnaissance Squadron supporting operations in Southwest Asia flew nearly 200 combat sorties, providing grounds troops in Afghanistan and Iraq with invaluable overhead imagery and signals intelligence....

A contingent of airmen and B-52H bombers from the 23rd Bomb Squadron at Minot AFB, N.D., is preparing to deploy to Andersen AFB, Guam as part of a normal rotation of US combat forces to the Western Pacific region, the...

HEO-2, the second Space Based Infrared Systems sensor payload already on orbit, has been approved to provide technical intelligence in support of the US military and the intelligence community, the Air Force announced May 7. This operational acceptance came after...

Sheppard AFB, Tex., will host a noncommissioned officer academy that is expected to open its doors to technical sergeants in early 2011 and initially graduate about 1,300 airmen annually, Air Force officials announced May 7. The new academy will train...

The Air Force formally accepted the first Global Positioning System Block IIF satellite from contractor Boeing on April 22. This spacecraft is set for launch in late May aboard a Delta IV rocket from Cape Canaveral AFS, Fla. The Block...

The Community College of the Air Force recognized its 350,000th degree recipient on May 5 when TSgt. Brannen Parrish received an associate degree in applied science public affairs during the 2010 Senior Enlisted Leader Summit at Maxwell AFB, Ala. “The...

Air Sorties in Southwest Asia, May 2-4, 2010 Sortie Type OIF OEF OIF/OEF Total YTD ISR 75 111 186 7,667 CAS/Armed Recon 66 223 289 11,488 Airlift 525 525 21,145 Air refueling 150 150 5,307 Rescue 102 102 1,796 Total...