The Pentagon’s Strategic Choices Management Review forced the services to plumb their budgets deeply—which is going to help drive the Quadrennial Defense Review’s final product, said Maj. Gen. Steven Kwast, the Air Force’s QDR office director. “The nice thing about the [SCMR] is that it kind of gave us insight into where things sit inside the [Defense Department],” Kwast told reporters at AFA’s Air and Space Conference in National Harbor, Md., on Sept. 17. Specifically, he said, it gave the services’ QDR representatives visibility into where the services spent their money, and the magnitude of it. Kwast said the QDR would likely not try to “crack open” matters and missions that the White House and Office of the Secretary of Defense have determined as policy priorities. That’s a break from past QDRs, which looked at the full spectrum of missions in DOD, said Kwast. Going forward, the QDR is scrutinizing return on investment and capabilities, and if current strategy is executable, he said. The 2012 Defense Strategic Guidance did not factor budget sequestration, noted Kwast. “It makes the affordability part of the strategy work a real problem. That’s why you hear it more,” he said.
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.