Trump ready for cost-cutting battle with armor company


President-elect Donald Trump’s pre-emptive strike on the price of two major projects with a leading defense company fiscal hawks hope the next government can clean costs in Pentagon contract to invest as a trump vows in the reconstruction of the U.S. military.

“I hope this is an opportunity to in the Pentagon more clearly from someone who said not part of the system,” Mandy Smithberger, Director of the military reform for the Project on Government Oversight (POGO),

Since the beginning of December, Trump browbeating Boeing and Lockheed Martin of the cost of the next Air Force One and the F-35 and was

“I don’t need $4.2 billion in aircraft to fly in” Trump on Fox News Sunday said, “” earlier this month, refers to Air Force One.

His criticism led to a meeting last week with Boeing CEO Dennis Muilenburg and Lockheed Martin CEO Marillyn Hewson.

Muilenburg then undertook the next Air Force One for much less than $4 billion. Trump then the heat turned to Lockheed, tweeting, “Based on the enormous cost and the cost of the Lockheed Martin F-35 overruns, I wondered, Boeing price Hornet a comparable F-18 Super!”


Hewson put out a statement Friday, according to a further conversation with trump, and said, you heard his message “loud and clear.”

“I gave him my personal commitment to drive the cost down aggressively,” she said. “I know that President-elect Trump wants to be the best ability for our military to the lowest cost for the taxpayer, and we are ready to deliver!”

The cost of the F-35 Joint Strike Fighter has used to be $ 400 billion for 2,457 planes, by the USA and its allies, about twice the initial estimate. Boeing, for its part, was awarded the Air Force One contract in January 2015. The Air Force budget in the research and development for the contract is reportedly $ 2.9 billion through fiscal year 2021, while the procurement is $1 billion.

Trump’s early intervention for these two projects, with an almost unprecedented level of interest in contract negotiations for a President-elect, has groups that have tried for years, spurred on, to control costs, for what President Dwight Eisenhower first as a “military-industrial complex.”

Trump also wants to go “lifetime bans” for the Pentagon acquisition officials from getting to work for the arms companies.

But watchdogs say, going forward, Trump must take to keep further measures, the cost of the frame.

Smith Berger said, should the reforms, the modernization, more transparency and comprehensive Tests, which POGO calls a “fly before you buy” policy.

“The would Yes said an important first step, if he wants to, the swamps dry up,” Smith Berger. “The Pentagon is not the only problem. Congress aids and incites, by using the Pentagon as a jobs program.”

As he signaled changes for defense contracts, Trump has also vowed to grow the military. In the September speech, Trump said he will ask Congress, the attract for the elimination of the budget, a measure known as the to pursue the defense of “animals”, while a power build, in the army and Marine Corps, an increase of ships and submarines for the Navy, and an increase in the number of combat aircraft for the air force. How these objectives are balanced with his push to lower costs, remains to be seen.

The key to a Pentagon will be reforms trump, the election of the Minister of defense, retired Marine Gen. James Mattis. In General, however, was on the board of directors for the defense company General Dynamics since 2013.

“It raises some concerns about his ability to reform the system,” Smith Berger said Mattis.

Nevertheless, the retired general, his experiences as head of the U.S. Central Command and as NATO commander could be said to be a helpful perspective for reform, Ben Fitzgerald, Director of the technology and national security at the Center for a New American Security, a Washington-based national security think tank.

“Trump could-and demand results and accountability” from the Pentagon, said Fitzgerald “General Mattis is not a contract guy, but he understands the importance of having the right equipment in the hands of our war fighters.”

Boeing and Lockheed both have emphasized, to provide you want value for the U.S. government.

“Boeing is committed to providing the best value for warfighters and taxpayers,” company spokesman Todd Belcher told in an opinion. “This is a goal that we together with our partners in the Department of Defense. We work closely with them every day to ensure that we have strong progress in achieving this goal.”

The two companies on the receiving end of Trump’s criticism, Boeing and Lockheed Martin, which is also in a partnership for United Launch Alliance, the manufacturer of the rocket. This year, the joint venture got a $860 million contract for maintenance and repair.

Former House Speaker Newt Gingrich supports trump’s tougher tone to the contractor, the prediction that he would act like a Governor than a traditional President in his amount of participation. He said on “Fox News Sunday,” the Pentagon Acquisitions process must be “completely renewed.”

“Serving notice that we will not be offset by large contractors with large armies of lobbyists in Washington will shake as much as every single thing that you can do,” Gingrich said on “Fox News Sunday.”

The recording of skyrocketing costs and less-than-ideal transparency is abundant, the size of the task.

The defense Ministry has not yet issued a single statement of budgetary resources, since the entry into force of the 1990 Chief Financial Officers Act, and such statements of agencies, according to POGO.

In February, the Defense Department inspector general concluded the Air Force did not properly negotiate maintenance contracts at Robins Air Force Base in Georgia, and not properly paid between $9.6 million and $24.9 million euros in questionable charges, Boeing, Northrop Grumman and Honeywell. In a 2014 report, the Government Accountability Office found that the cost of growth for the Pentagon weapons programs in the year 2013 grew from $448 billion with an average delay of two years for the completion of projects.

The Ministry of defence threatens the loss of its technological lead over other countries, according to a new report from the Center for a New American Security. The report says that the military must create a more market competitive system. Further, the report States, this would not increase the cost, if carried out effectively.

“Under such a strategy, the DoD will use the nearly $ 2 trillion to the global commercial research and development could be done more efficiently, minimize risk of overexploitation and program cancellations (from $58 to $116 billion Euro between 1997 and 2015, including non-classified programs), and better manage their operating and maintenance costs,” the report says. “First of all, this strategy will help the DoD avoid to lose incalculable costs, the nation’s military-technical advantage.”

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