The Defense Department likely is going to have to change the way it conducts business in the current budget environment, said Todd Harrison, a defense budget expert at the Center for Strategic and Budgetary Assessments. During a briefing with reporters last week, Harrison outlined three ways that DOD can change its business model. First, Harrison suggested that the Pentagon form a study group to explore how much value troops place on the benefits they receive. Second, remotely piloted aircraft could offer savings in training and might not require DOD to purchase as many manned planes, he said. It’s “an area DOD should exploit more in the future,” said Harrison. Third, the United States should examine the way it works with its allies. While the nation typically spends about four percent of its gross domestic product on defense, it allies often spend less than two percent of GDP, relying instead on the United States to shoulder much of the cost of joint missions, he explained.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.