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The Importance of a Cost Effective Military Procurement Strategy
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Posted On :
Nov-02-2011
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Article Word Count :
418
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The responsibility of managing military contracts lies with the Department of Defense.
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The responsibility of managing military contracts lies with the Department of Defense. The department aims to make optimum use of taxpayer's money while offering quality equipment and services to the armed forces. With increasing stress on federal deficit and the possibility of cost cuts, economical and effective defense programs are more important than ever.
Program costs running into hundreds of millions is not uncommon when it comes to defense procurements. Sometimes these programs do not even generate the kind of results that were expected, making them very expensive experiments that always have a chance of failing. Cost cutting measures are being employed in all sectors as the economy draws close to a second recession, and this has made resourceful and feasible defense programs a must for DoD.
The need for change in DoD procurement is urgent. DoD needs to find a way to make sure that the investment in programs is not wasted. If a highly expensive program is likely to result in uncertain results after 15 -20 years, it cannot be deemed as efficient. In order to attain this objective, DoD branch dealing with procurement and contracting policies will have to depend on integrity and excellent leadership. Defense projects need to be chosen based on their possible advantages, not just their cost.
A lot of times, DoD procurement focuses on big money projects that steal the limelight and display the might of the United States military. In the present economic condition, selection of projects based on the benefits they are is likely to provide and their necessity is probably the best policy for DoD. Signing another weapons contract when the army already has plenty of weapons and missiles is a mistake. Instead, the DoD must concentrate on those areas, where the military is deficient.
The huge amount of money paid to the subcontractors and contractors in Iraq and Afghanistan is one of the primary causes of concern for the US. Defense procurement investment in the program of around $20 billion is disproportionately high compared to the results. While it is simpler to pay sub contractors who will do the job locally, these instances must prove to the government that it might be better to give these contracts to the United States firms that can be trusted to do a good job, or at least not take the government's money if they know the job cannot be done.
The US department of defense is responsible for optimum use of the taxpayer's hard-earned money.
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Article Source :
http://www.articleseen.com/Article_The Importance of a Cost Effective Military Procurement Strategy_98951.aspx
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Author Resource :
Defense Procurement is a vital area of the navy; examine complete web content across your own articles.
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Keywords :
Defense Procurement,
Category :
Business
:
Management
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