Quotulatiousness

April 11, 2012

F-22 pilot air supply issue still not resolved

Filed under: Military, Technology, USA — Tags: , , — Nicholas @ 08:29

Strategy Page has an update on the F-22 and the ongoing investigation into air supply problems for the pilot:

The U.S. Air Force is admitting that it is having a problem with the pilot air supply on the F-22, a problem they have not been able to find the cause of. Despite this, the air force is going to continue flying its F-22s. The decision to keep flying was made because the air supply problems have not killed anyone yet and they are rare (once every 10,000 sorties.)

The 14 incidents so far were all cases of F-22 pilots apparently experiencing problems. The term “apparently” is appropriate because the pilots did not black out and a thorough check of the air supply system and the aircraft found nothing wrong. There have been nearly 30 of these “dizziness or disorientation” incidents in the last four years, with 14 of them serious enough to be called real incidents. Only one F-22 has been lost to an accident so far and, while that did involve an air supply issue, it was caused by pilot error, not equipment failure.

Meanwhile the air force is spending $7 million to install commercial oxygen status sensors in the air supply systems of its F-22 fighters. This is part of a year-long effort to find out what’s causing the air supply on F-22s to get contaminated and cause pilots to become disoriented or pass out. Twice in the past year the entire F-22 fleet was grounded because of the air supply problems. The first grounding lasted 140 days and ended last September. The second grounding lasted a week and ended five months ago. The 180 F-22s comprise the most powerful component of the air force’s air combat capability and the brass are eager to find out what is wrong.

April 10, 2012

Jack Granatstein calls for the heads of the deputy and associate deputy minister of defence

Filed under: Bureaucracy, Cancon, Media, Military — Tags: , , , , — Nicholas @ 10:24

Jack Granatstein is very well respected as a military historian and analyst. His interpretation of the F-35 situation leads him to — in effect — call for the dismissal of people whose names are not generally being bandied about in the media:

Then let us look at the decision-making process in the Department of National Defence. Almost all the commentary in the media and Parliament has pointed fingers at the CDS, Gen. Natynzcyk. But he is only the military leader of the department, not the sole ruler. Co-equal to him — and, in fact, in most knowledgeable observers’ judgment substantially more than that — is the deputy minister, Robert Fonberg, in his post since 2007. The associate deputy minister materiel, responsible for all procurement projects, reports to Mr. Fonberg, and the deputy determines what his minister, Peter MacKay, and eventually the cabinet sees. The public messaging in the department is handled by the assistant deputy minister (public affairs), who also reports to Mr. Fonberg. The civilian defence bureaucrats truly wield the power.

The point is this: The uniformed officers of the department provide the best military advice they can. Sometimes they are incorrect; most times they pray they are right because they know their decisions will affect their comrades’ lives. But the estimates of costs, and the spin that has so exercised the Auditor-General, the media and the Opposition, are shaped and massaged by the deputy minister, in effect DND’s chief financial officer, who advises the minister of national defence.

No one comes out of the F-35 affair smelling like a rose. Mr. MacKay undoubtedly made mistakes in overselling the aircraft, and Gen. Natynzcyk likely did as well. But it would be a miscarriage of justice if these two lost their heads to the vengeful axe demanded by an aroused media, and the deputy minister and his civilian bureaucrats escaped unscathed.

April 8, 2012

The F-35 program is “Military Keynesianism”

Filed under: Bureaucracy, Cancon, Economics, Military — Tags: , , , , , , — Nicholas @ 11:25

Wayne K. Spear explains the ordinary and the extraordinary parts of a military procurement process, as illustrated by the F-35 project:

A straight-shooting bureaucrat will admit that procurement processes are often initiated with the final selection a foregone conclusion. If you know in advance what you need, and you furthermore know who’s most qualified to deliver, then formalities intended to promote transparency and accountability are at best inconveniences to circumnavigate — and every public servant knows well how to steer that ship. That this occurs regularly within the bureaucracy is an open secret.

The Joint Strike Force program, at the centre of which is a proposed purchase of F-35 fighters, introduces disturbing wrinkles to an otherwise unremarkable bureaucratic occurrence. On military matters I refer to the self-described “prolific Ottawa blogger” Mark Collins , who has been training his keen eye on this fiasco for years. At his site you’ll find links to a range of useful resources, for example a DND PowerPoint which makes it clear that military leaders chose the F-35 and only later manufactured the selection criteria. Again, not unusual in procurement. The department however did so on grounds no one has yet admitted, never mind defended. That’s only one of many problems.

Reviewing the Auditor General’s report and the media coverage of this issue, I infer that the F-35 achieved the status of a foregone conclusion for the following reasons. 1) Canada had invested millions of dollars into the F-35 program as early as the 1990s; 2) Lockheed Martin Aeronautics lobbied aggressively, and more effectively, than its rivals (and employed Prospectus Associates, a consultancy firm with the inner track to Defence Minister Peter MacKay); and 3) the F-35 series of fighters — although years from completion and with many important details unclear and ever-changing (including year of completion, engine cost, cost to maintain) — were the only “fifth generation” fighters on the table. As the Auditor General points out, fifth generation “is not a description of an operational requirement.” My own research suggests this phrase means something like ”Ooo!” — which is what I often say when I see a jet fighter in action.

It’s a given that the Royal Canadian Air Force needs to address the rapidly aging CF-18 fleet before 2020 (the estimated end-of-life for the current fighters). The choice had appeared to be simple: follow on our pre-existing development deal with a purchase of F-35 fighters. The problems were that the development schedule had slipped multiple times, the estimated costs had climbed and climbed again, and the technical “teething” issues were still promising longer delays and higher costs. Canada had intended to buy 65 aircraft — in my opinion at least 33% less than the RCAF actually needed — at a “fixed” cost.

The F-35 is still years away from being in service in any air force, there’s no way to be sure that the government’s budget will be enough to buy the minimum number of aircraft, and the CF-18 isn’t getting any younger.

We need (some) new fighter aircraft in the next eight years, but the F-35 is no longer the automatic choice to fill that role.

There’s another root problem, and it’s also to be found in the 2012 federal budget. This document superstitiously relies on the notion that everything the feds do creates jobs. Every spending initiative in the budget creates jobs. Every departmental trim, and every restraint, ditto. Having gone through the budget, I wonder if Mr. Flaherty thinks a job is created when he sneezes. At the same time I was reading the budget, I was reviewing the federal government’s 2010 F-35 sales pitch — which, coincidentally, was the DND’s and Lockheed Martin’s sales pitch. Again, it’s all about “industrial benefits.” Lo and behold: the F-35 program creates jobs!

One name for this line of argument is “Military Keynesianism,” the idea that a brilliant and effective way to create jobs and boost the economy is to give folks like Lockheed Martin billions of dollars of public money. In the 1980s, the American public heard many Pentagon procurement stories concerning $40 staplers and $200 hammers, all part of a federal stimulus effort which by 1988 had tripled the nation’s deficit. There are distinctions to be made between this and the present case. Nonetheless, these staplers and hammers came to my mind as I dug down into the bogus F-35 procurement process and my shovel chipped the Reagan-era bedrock.

April 4, 2012

David Akin: The F-35 fiasco is now a boondoggle

Filed under: Bureaucracy, Cancon, Government, Military — Tags: , , , , , — Nicholas @ 10:21

Nobody in the government or the Department of National Defence comes off well in this politico-techno-bureaucratic mess:

The acquisition process to replace our aging CF-18 fighter jets can now officially be proclaimed as the F-35 boondoggle.

In a damning report Tuesday, Auditor General Michael Ferguson said the whole process in which the Harper Conservatives decided to allocate at least $25 billion over the next 20 years to buy 65 F-35 Lightning II “fifth generation” fighter jets was gummed up by Department of National Defence bureaucrats — and possibly air force officers — who flat out lied to their political masters and to Parliament about the costs and risks associated with the program.

The only good news is we have not yet spent that $25 billion or signed any contracts.

Canada has generally been well served by the civil service (I grit my teeth to say that, as I’m not at all fond of big government), if only in comparison to other countries. One of the better inheritances from Britain is the (relatively) non-political, impartial bureaucracy. In this case, however, the bureaucracy has failed, and failed spectacularly:

But the politicians, like any prime minister or cabinet minister before them, has to be able to rely on the bureaucracy to give them the straight goods.

That did not happen.

Here’s Ferguson in his report: “National Defence told parliamentarians (last year) that cost data provided by U.S. authorities had been validated by U.S. experts and partner countries which was not accurate at the time. At the time of its response, National Defence knew the costs were likely to increase but did not so inform parliamentarians.”

In other words, DND bureaucrats lied. Full stop. Period.

Here’s another paragraph from Ferguson: “Briefing materials did not inform senior decision-makers, central agencies, and the Minister [of National Defence] of the problems and associated risks of relying on the F-35 to replace the CF-18.”

And another: “We found that the ministers of National Defence and Industry Canada and those ministers on the Treasury Board were not fully informed (in 2006) about the procurement implications.”

I’ve been less-than-fully-supportive of the F-35 acquisition, as a quick perusal of F-35 related posts will show, but this is now much more important than the question of what aircraft (if any) the RCAF will be purchasing. It’s now a case of finding out how deep the rot is in the DND and whether the RCAF actively aided the deception. If so, heads must roll.

Update: MILNEWS.ca has a round-up of reporting on the Auditor General’s report, focusing on the F-35 program.

March 29, 2012

F-35 and the “bubbling skin” problem

Filed under: Cancon, Military, Technology — Tags: , , , — Nicholas @ 11:25

Michael Byers and Stewart Webb report on the latest technical glitch to be reported in the F-35 development:

The ability of F-35s to avoid radar detection depends on a “fibre mat,” which is cured into the composite surfaces of the aircraft.

In December 2011, a test version of the F-35 for the first time achieved the design speed of Mach 1.6. According to Bill Sweetman of Aviation Week, the flight caused “peeling and bubbling” of the stealth coating on the horizontal tails and damage to the engine’s thermal panels, and the entire test fleet was subsequently limited to Mach 1.0.

Repairing and replacing stealth materials is a time- and technology-intensive process that reduces the “mission capable rate” of aircraft. Indeed, it has been reported by the U.S. Congressional Research Service that after five years of service the F-35’s sister plane, the F-22, has a mission capable rate of just 60%.

And then they touch on the issue that has been lurking below the surface for a while, regarding the small number of aircraft the RCAF will be able to afford (assuming the government goes through with the F-35 purchase):

If the F-35 has a similar mission capable rate, Canada will, at any given time, only be able to deploy approximately 44 of its planned 65 planes. When attrition through accidents is factored in — and Canada has lost 18 of its CF-18s since 1982 — we could soon have an available fleet of just 30-35 planes, or roughly half of what the Department of National Defence says we need.

That might be the crucial point on which the F-35 acquisition fails: no matter how good the aircraft are (and I believe they will eventually work through and fix all the major issues), we can’t afford enough of them. Even without taking on new missions, we need a certain minimum number of aircraft, and I thought 65 was low-balling that number. The alternatives are to buy some F-35’s and a larger number of less expensive planes like the Super Hornet, or skip the F-35 altogether and just buy a different aircraft. The problem with splitting the order is that what we’d save on reduced F-35 acquisition costs, we’d more than lose because the RCAF would have to maintain duplicate maintenance and training programs. Unlike the RAF or the USAF, the RCAF isn’t big enough to fly multiple models on an ongoing basis (and you know that the government can’t and won’t fund a larger air force budget).

March 26, 2012

Rick Mercer updates us on the status of the F-35

Filed under: Cancon, Humour, Military, Technology — Tags: , , , — Nicholas @ 06:27

March 22, 2012

GAO latest to attempt to shoot down the F-35

Filed under: Australia, Cancon, Japan, Military, Technology — Tags: , , , — Nicholas @ 12:08

The situation is looking grimmer for all potential purchasers of the F-35, not just the RCAF:

The F-35 Joint Strike Fighter, the supposed backbone of the Pentagon’s future air arsenal, could need additional years of work and billions of dollars in unplanned fixes, the Air Force and the Government Accountability Office revealed on Tuesday. Congressional testimony by Air Force and Navy leaders, plus a new report by the GAO, heaped bad news on a program that was already almost a decade late, hundreds of billions of dollars over its original budget and vexed by mismanagement, safety woes and rigged test results.

At an estimated $1 trillion to develop, purchase and support through 2050, the Lockheed Martin-built F-35 was already the most expensive conventional weapons program ever even before Tuesday’s bulletins. The Air Force, Navy and Marine Corps are counting on buying as many as 2,500 F-35s to replace almost every tactical jet in their current inventories. More than a dozen foreign countries are lined up to acquire the stealthy, single-engine fighter, as well.

[. . .]

If cuts do occur, the U.S. will be in good company. Australia, Canada and Japan have already begun backing away from the troubled JSF as the new plane has gradually exceeded their budgets. For these countries, alternatives include the Super Hornet and an upgraded F-15 from Boeing, Lockheed’s new F-16V and the European Typhoon, Rafale and Gripen fighters. But so far the U.S. military prefers the F-35, even if the stealthy jet is more than a decade late, twice as expensive as originally projected and available in fewer numbers. “We will remain committed to the long-term success of the F-35 program,” Air Combat Command asserted.

Update, 23 March: The summary of the GAO report with a link to the PDF version for download.

March 20, 2012

“You’d have to be blind and deaf not to know how much this project has gone off the rails”

Filed under: Cancon, Economics, Military, Technology — Tags: , , , , — Nicholas @ 11:22

In the National Post, John Ivison explains why he thinks the new Auditor-General will have a field day examining the F-35 project:

Alan Williams is a retired assistant deputy minister, responsible for procurement at DND in the early years of the F-35 project, and recently he shared his thoughts on the shortcomings of the tendering process with the Office of the Auditor-General. “The whole process was twisted to suit the needs of the military, with the acknowledgment and support of ministers. It was totally unacceptable,” he said.

He thinks the government should write a new statement of requirement and put the whole project out to an open competition.

“You could run a competition today and have it done within two years,” he said. “You’d have to be blind and deaf not to know how much this project has gone off the rails.”

He said that in his experience, maintenance costs on sophisticated military equipment run at two to three times acquisition costs. He believes the eventual cost to taxpayers for the F-35s is likely to be $25- to $30-billion — double the current government estimate.

It’s quite possible that the F-35 purchase was a bad idea, and that the military rigged the competition from the start. Not inevitable, but possible. The criticism of the military procurement process in the article is a bit over-done, especially here in Canada where almost any military spending has to be assessed primarily for political advantage and regional distribution before the actual military benefit or value to the taxpayers is taken into account. Every major project’s specifications are “tweaked” to meet certain overriding criteria.

To oversimplify, if the item in question is available from two different suppliers that provide effectively the same function, tacking on a secondary requirement that only one of the suppliers can readily meet distorts the process to favour that supplier. It’s not usually that blatant, but if it happens when the item in question is as simple as network cable or packaging material or socks, you can be certain that it happens for multi-billion dollar purchases whose specifications are the size of paperback novels.

March 18, 2012

The ever-expanding role for women in the military

Filed under: Bureaucracy, Economics, Education, History, Military, Technology — Tags: , , , , — Nicholas @ 11:22

An interesting article at Strategy Page:

The growing number of women in the military is largely driven by the need for people with scarce skills. Since most (over 80 percent) of military jobs have little, or nothing, to do with combat, if you can’t find enough qualified men, you can recruit women. This is especially true in the West, where females tend to be better educated than males. Thus women comprise about ten percent of the troops in Western armed forces. In the United States this is 15 percent for active duty troops, and 18 percent for the reserves. Civilian contractors, who are taking back some of the military jobs they performed for thousands of years, have an even higher percentage of females.

All this reflects growing female participation in the post-agricultural economy. We tend to forget that as recently as the 19th century, 90 percent of humanity were engaged in agriculture. It had been that way for thousands of years. With industrialization, women began to stay at home with the kids, and no longer work the same jobs (as they did in agriculture) with their husbands. But in the last sixty years, women have returned to their traditional place in the economy.

[. . .]

This current trend in using women and contractors are actually a return to the past, when many of the “non-combat” troops were civilians. Another problem is the shrinking proportion of troops who actually fight. A century ago, most armies comprised over 80 percent fighters and the rest “camp followers (support troops) in uniform.” Today the ratio is reversed, and therein resides a major problem. Way back in the day, the support troops were called “camp followers,” and they took care of supply, support, medical care, maintenance and “entertainment” (that’s where the term “camp follower” got a bad name). The majority of these people were men, and some of them were armed, mainly for defending the camp if the combat troops got beat real bad and needed somewhere to retreat to.

[. . .]

One of the great revolutions in military operations in this century has been in the enormous increase in support troops. This came after a sharp drop in the proportion of camp followers in the 18th and 19th centuries. Before that it was common for an army on the march to consist of 10-20 percent soldiers and the rest camp followers. There was a reason for this. Armies “in the field” were camping out and living rough could be unhealthy and arduous if you didn’t have a lot of servants along to take care of the camping equipment and help out with the chores. Generals usually had to allow a lot of camp followers in order to get the soldiers to go along with the idea of campaigning.

Only the most disciplined armies could do away with all those camp followers and get the troops to do their own housekeeping. The Romans had such an army, with less than half the “troops” being camp followers. But the Romans system was not re-invented until the 18th century, when many European armies trained their troops to do their own chores in the field, just as the Romans had. In the 19th century, steamships and railroads came along and made supplying the troops even less labor intensive, and more dependent on civilian support “troops.” The widespread introduction of conscription in the 19th century also made it possible to get your “camp followers” cheap by drafting them and putting them in uniform.

March 13, 2012

Yet another straw in the wind on Canada’s F-35 plans

Filed under: Cancon, Government, Military, Technology — Tags: , , , — Nicholas @ 14:56

An article by Murray Brewster, published in the Winnipeg Free Press looks at more signs that Canada may not be as tightly bound to their F-35 purchase plans:

The point man on the F-35 stealth fighter purchase says the Conservative government has not ruled out abandoning the troubled project.

“We have not, as yet, discounted the possibility, of course, of backing out of any of the program,” Julian Fantino associate defence minister, told the Commons defence committee on Tuesday.

He made the comment after a series of pointed questions from both opposition parties.

Fantino said the government is still committed to buying the radar-evading jet, but no contract has been signed.

The Conservatives still believe the high-tech jet is the best choice to replace the aging CF-18s, but the minister suggested they are taking a cautious approach.

None of the other nine allied nations involved in the program has yet withdrawn and the minister said: “We are not.”

[. . .]

In months of questioning in the House of Commons, Fantino has insisted there is no need for a backup plan in case of further delays in the project as the manufacturer works out software and design glitches.

But on Tuesday, he told the committee he was waiting for defence officials to prepare alternate scenarios to the F-35 deal, the so-called Plan B that opposition parties have demanded.

February 27, 2012

BBC: Could Britain still defend the Falkland Islands?

Filed under: Americas, Britain, Military — Tags: , , , , , — Nicholas @ 11:09

The BBC has a then-and-now summary of the military balance in the south Atlantic in 1982 and today:

1982: On the eve of the invasion, there were about 70 Royal Marines stationed on the islands — twice the usual number due to a changeover. They were, in theory, backed up by about 120 local reservists, although only a small proportion reported for duty. HMS Endurance, an Antarctic ice patrol vessel, was the only ship based in the South Atlantic at the time. And there were no fighter jets — none of the island’s airstrips were long enough. The only planes that could land before the war came from Argentina. Supplying the Falklands by sea from Britain took two weeks.

2012: The major difference is the construction of RAF Mount Pleasant, a modern air base housing four Eurofighter Typhoon strike fighters, a Hercules transport plane and VC-10 tanker plane. There are also Rapier missile batteries in several locations. The British garrison numbers 1,200, including 100 infantrymen, with 200 reservists in the Falkland Islands Defence Force. The Royal Navy has a patrol vessel, an auxiliary support ship, and frigate or state-of-the-art destroyer. It’s reported that a British nuclear-powered submarine is in the South Atlantic, but the Ministry of Defence will not discuss operational matters. “It’s quite a considerable deterrent force,” says Peter Felstead, editor of Jane’s Defence Weekly. Military experts believe the islands are now virtually impregnable. Any sign of Argentine invasion and the islands could be quickly reinforced by air.

Just as we established the last time this was up for discussion, Argentina doesn’t have the military forces for a stand-up fight, but if they can take the RAF base in a surprise attack by special forces, Britain probably can’t recapture the islands.

February 26, 2012

Disaster preparedness, Wyoming style

Filed under: Economics, Government, Politics, USA — Tags: , , , , — Nicholas @ 08:56

Wyoming legislators are serious about their state being prepared for disaster:

State representatives on Friday advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse in the United States.

House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government.

The task force would look at the feasibility of Wyoming issuing its own alternative currency, if needed. And House members approved an amendment Friday by state Rep. Kermit Brown, R-Laramie, to have the task force also examine conditions under which Wyoming would need to implement its own military draft, raise a standing army, and acquire strike aircraft and an aircraft carrier.

H/T to Hit & Run where they comment with just the right level of absurdity: “The aircraft carrier is a nice touch. I suppose if it’s a big enough disaster, Wyoming might become a coastal state.”

Update, 29 February: Sadly the bill failed on third reading, so Wyoming won’t be pursuing its own aircraft carrier:

It appears that, on reflection, the Wyoming House of Representatives has decided the risk of invasion by its neighbors is remote enough that it can do without its own armed forces for now, and in particular does not need to consider whether an aircraft carrier might come in handy. I was informed, I think by Rep. Brown himself, that the bill was “defeated on third reading and exists no more.”

[. . .]

Rep. Brown was not a sponsor of the bill, although he does seem to have voted for it on the first reading; he later offered the aircraft-carrier amendment, and then voted against the whole thing today. So, although he hasn’t confirmed it yet, it does look like he may be one of those relatively rare legislators with both a sense of humor and the will to express it in a piece of legislation (which he knew would be deleted). It’s nice to be able to get humor out of a legislature this way for once.

February 23, 2012

Canada considers delaying F-35 aircraft order

Filed under: Cancon, Military, Technology — Tags: , , , , — Nicholas @ 11:38

In the Globe & Mail, Steven Chase on the Canadian government’s uncomfortable position on the RCAF’s next generation fighter aircraft:

The Canadian government is investigating whether it can squeeze more life out of its aging CF-18 fighters as it takes stock of decisions by cash-strapped allies to delay or trim orders for the replacement F-35 Lightning jet.

The Harper government must now decide whether there’s a benefit to postponing part of Canada’s order of 65 jets so that its Lightning fighter bombers are built in the same years as the bulk of orders placed by other countries — when the production cost is lower.

[. . .]

The Canadian government had planned to start taking delivery of new F-35 fighter bombers in 2016 or 2017 and has publicly described 2020 as the retirement date for most of its fleet of CF-18 Hornets.

A government official with knowledge of the file said the military is now assessing whether 2020 is the absolute maximum life expectancy for the Hornets or whether there’s a little bit more flying time left in the jets — planes purchased between 1984 and 1988.

Canada has already retrofitted the CF-18s in order to make them last until 2020.

February 19, 2012

While cutting back the troops, the MoD bureaucrats get big bonus payments

Filed under: Britain, Bureaucracy, Military — Tags: , , — Nicholas @ 10:28

C. Northcote Parkinson formulated the law that bears his name. He documented the phenomenon (PDF) of more and more bureaucrats supporting fewer and fewer ships and sailors back in 1955:

The accompanying table is derived from Admiralty statistics for 1914 and 1928. The criticism voiced at the time centered on the comparison between the sharp fall in numbers of those available for fighting and the sharp rise in those available only for administration, the creation, it was said, of “a magnificent Navy on land.” But that comparison is not to the present purpose. What we have to note is that the 2,000 Admiralty officials of 1914 had become the 3,569 of 1928; and that this growth was unrelated to any possible increase in their work. The Navy during that period had diminished, in point of fact, by a third in men and two-thirds in ships. Nor, from 1922 onwards, was its strength even expected to increase, for its total of ships (unlike its total of officials) was limited by the Washington Naval Agreement of that year. Yet in these circumstances we had a 78.45 percent increase in Admiralty officials over a period of fourteen years; an average increase of 5.6 percent a year on the earlier total. In fact, as we shall see, the rate of increase was not as regular as that. All we have to consider, at this stage, is the percentage rise over a given period.

Parkinson_Admiralty_Statistics

His law is still operative, as shown recently in healthy bonus payments to bureaucrats in the British Ministry of Defence at the same time that the troops are under a pay freeze and reduction in force:

One senior civil servant was awarded an £85,831 bonus on top of their six-figure salary — at the same time as members of the armed forces have been subject to a two-year pay freeze and 20,000 are to be made redundant.

The bonuses have been paid since April last year and have seen more than 55,000 officials awarded extra payments for their performance — out of a payroll of 83,000.

The ministry expects to pay more in bonuses in the current financial year than the last, even thought it is attempting to drastically reduce the number of civil servants as part of cuts to Government expenditure.

February 16, 2012

The economics of the military-industrial complex

Filed under: Bureaucracy, Economics, Government, Military, Technology, USA, Weapons — Tags: , , , , , , — Nicholas @ 08:57

Eisenhower was right: the military-industrial complex has the US government tight within its grip, and there’s no easy fix. Strategy Page has a useful overview:

For decades the U.S. Armed Forces has been having problems with rapidly growing (much greater than inflation) costs of weapons. Congress passes laws to try and cope and the laws are ignored. One example is the laws calling for accurate life-cycle costs (for development, manufacturer, and maintenance of weapons over their entire service life). A recent study found out that, despite laws calling for accuracy and consistency in these numbers, most manufacturers manipulated the data to make their systems look less expensive than they actually were. The Department of Defense is increasingly taking extreme measures in the face of this corruption and cancelling more and more very expensive systems. But the manufacturers continue to use smoke and mirrors to get new projects started and failed ones funded.

New weapons get approved because of another form of procurement corruption, the Low Ball Bid. Last year the U.S. Air Force demanded that defense contractors stop low balling, which in practice means submitting unrealistically low bids for new weapons (to make it easier for Congress to get things started) and then coming back for more and more money as “unforeseen problems” appear and costs keep escalating and delivery is delayed. Currently, procurement projects are about a third over budget and most items are late as well. Procurement of weapons and major equipment make up about a third of the defense budget. While this is expected to decline over the next decade, as defense budgets shrink, the problem also extends to upgrades and refurbishment of existing equipment.

The most intractable problem is the decades old contractor practice of deliberately making an unreasonably low estimate of cost when proposing a design. The military goes along with this, in the interest of getting Congress to approve the money. Since Congress has a short memory the military does not take much heat for this never ending “low ball” planning process.

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