This Congressional Budget Office (CBO) study--prepared at the request
of the Chairman and Ranking Minority Member of the Subcommittee on Defense
of the Senate Appropriations Committee--addresses those questions. It projects
the long-term implications of today's defense plans for both resources
and forces. In keeping with CBO's mandate to provide objective, impartial
analysis, the study makes no recommendations.
Lane Pierrot and Gregory T. Kiley of CBO's National Security Division
wrote the study under the supervision of J. Michael Gilmore. Ian MacLeod
and Eric J. Labs, along with Allison Percy, Paul Rehmus, Sally Sagraves,
Russ Beland, Adebayo Adedeji, and David Arthur, all of the National Security
Division, contributed to the analysis. Debbie Clay-Mendez supervised the
analysis of operation and support costs, and R. William Thomas supervised
portions of the investment analysis. Kent R. Christensen, Raymond J. Hall,
Sarah T. Jennings, David B. Newman, Sam Papenfuss, Michelle Patterson,
and Matthew Schmit of CBO's Defense, International Affairs, and Veterans'
Affairs Cost Estimates Unit also contributed to the analysis, under the
supervision of Jo Ann W. Vines. Barry Anderson and Arlene Holen of CBO
provided thoughtful review comments. In addition, the authors are grateful
to Robert R. Soule for his suggestions on how to improve the analysis.
(The presence of external participants implies no responsibility for the
final product, which rests solely with CBO.)
Christian Spoor edited the study, and Leah Mazade proofread it. Cindy
Cleveland produced drafts of the manuscript, Karina Braszo and Kathryn
Winstead prepared the study for publication, and Annette Kalicki prepared
the electronic versions for CBO's Web site.
Barry B. Anderson
Acting Director
January 2003
Tables |
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S-1. |
Steady-State Procurement Costs Under a Variety of Assumptions |
1-1. |
Actual, Requested, and Projected Funding for the Department of
Defense, 2003-2020 |
2-1. |
Requested and Projected Funding for Department of Defense Operation
and Support |
3-1. |
Requested and Projected Funding for Department of Defense Investment |
3-2. |
Steady-State Procurement Costs Under a Variety of Assumptions |
3-3. |
Current and Transformed Forces for the Army |
3-4. |
Current and Transformed Forces for the Navy and Marine Corps |
3-5. |
Current and Transformed Forces for the Air Force |
3-6. |
Steady-State Procurement Costs for Current and Transformed Forces |
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Figures |
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S-1. |
Past and Projected Resources for Defense |
S-2. |
Defense Spending as a Share of the Federal Budget and GDP |
S-3. |
Past and Projected Resources for Operation and Support |
S-4. |
Past and Projected Resources for Investment |
S-5. |
Average Age of Selected Army and Air Force Weapon Systems |
S-6. |
Average Age of Selected Navy and Marine Corps Weapon Systems |
1-1. |
Past and Projected Resources for Defense |
1-2. |
Defense Spending as a Share of the Federal Budget and GDP |
2-1. |
Spending for Operation and Support |
2-2. |
Three Measures of Defense Spending |
2-3. |
Spending for Forces and Logistics |
2-4. |
Medical Spending |
2-5. |
Spending for Training |
2-6. |
Spending for Installations Support |
2-7. |
Spending for Installations Support by Subcategory |
2-8. |
Spending for Headquarters, C3, and Administration |
2-9. |
Spending for Personnel Support |
2-10. |
Spending for Recruiting |
2-11. |
Spending for Military Construction and Family Housing |
3-1. |
Spending for Investment by Budget Account |
3-2. |
Projected Department of Defense Spending for Investment |
3-3. |
Projected Army Spending for Investment |
3-4. |
Procurement of Army Ground Combat Vehicles |
3-5. |
Age and Inventory of Army Ground Combat Vehicles |
3-6. |
Procurement of Army Helicopters |
3-7. |
Age and Inventory of Army Helicopters |
3-8. |
Projected Army Procurement Funding Versus Steady-State Costs |
3-9. |
Projected Navy and Marine Corps Spending for Investment |
3-10. |
Procurement of Battle Force Ships |
3-11. |
Age and Inventory of Battle Force Ships |
3-12. |
Procurement of Navy Fighter and Attack Aircraft |
3-13. |
Age and Inventory of Navy Fighter and Attack Aircraft |
3-14. |
Procurement of Marine Corps Helicopters |
3-15. |
Age and Inventory of Marine Corps Helicopters |
3-16. |
Procurement of Marine Corps Ground Combat Vehicles |
3-17. |
Age and Inventory of Marine Corps Ground Combat Vehicles |
3-18. |
Projected Navy and Marine Corps Procurement Funding Versus Steady-State
Costs |
3-19. |
Projected Air Force Spending for Investment |
3-20. |
Procurement of Air Force Fighter and Attack Aircraft |
3-21. |
Age and Inventory of Air Force Fighter and Attack Aircraft |
3-22. |
Procurement of Air Force Bombers |
3-23. |
Age and Inventory of Air Force Bombers |
3-24. |
Procurement of Air Force Airlifters |
3-25. |
Age and Inventory of Air Force Airlifters |
3-26. |
Procurement of Air Force Tankers |
3-27. |
Age and Inventory of Air Force Tankers |
3-28. |
Projected Air Force Procurement Funding Versus Steady-State Costs |
3-29. |
Projected Investment Spending for Defense Agencies |
3-30. |
Projected Investment Spending for Missile Defenses |
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Boxes |
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1-1. |
The Future Years Defense Program |
1-2. |
Base Realignment and Closure |
1-3. |
Calculating Steady-State Procurement Costs |