Saturday, July 30, 2011

The High Cost Of Supplying Military Services

What Costs Even More Than DoD’s Weapons? Its ‘Services’ -- DoD Buzz

Journalists, lawmakers and others tend to focus on the Pentagon’s expensive hardware, in part because it’s expensive, but in part because it’s conceptually easy to grasp — there’s a pointy, silver airplane out there somewhere that goes whoosh and costs much more than it was supposed to. But as one of DoD’s top acquisitions officials said this week, most of what the department spends on acquisitions isn’t on goods or hardware. The real money — and potentially, the real waste — is in “services.”

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My Comment:
I have trouble seeing how services can be cut any further .... these contracts are usually tendered to go to the lowest cost supplier. If I am wrong, please correct me.

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