Why is the cost of military equipment so expensive?

TSgt James Emanuel — Tue, 17 May 2016 13:41:05 -0400

Response by TSgt James Emanuel made May 17 at 2016 1:43 PM

TSgt James Emanuel — Tue, 17 May 2016 13:43:45 -0400

This is a loaded question, but it begs an answer. This country is in hock for the next several generations If we don't one up with a spending strategy right now, we're going to go the way of the Soviet Union.

Response by SPC Private RallyPoint Member made May 17 at 2016 1:53 PM

SPC Private RallyPoint Member — Tue, 17 May 2016 13:53:47 -0400

Because the military works on private bids, with preference given to small businesses, female-owned businesses, and veterans.....
If you are a female veteran, you can charge what you want, because the way the algorithm works, you will automatically win the contract, if you are the only female veteran-run company

Response by PO1 Donald Hammond made May 17 at 2016 1:54 PM

PO1 Donald Hammond — Tue, 17 May 2016 13:54:22 -0400

Because the manufacturers know they can get the money.

Let me give you an example. When I was Quality Assurance Supervisor for submarines, a ShipAlt came out saying a certain bolt had to be replaced with a "better" one. For submarines there are different classes of equipment based on whether or not it is in contact with full sea pressure, nuclear stuff, etc. Well these were going from just run of the mill bolts to what was called Cat 1 bolts. Suddenly the price on those bolts sky rocketed. But a supply person noticed that we could buy SubSafe bolts (a higher quality) and then downgrade them to Cat 1 for half the price. The manufacturer was pissed to say the least.

But that is how it works. Hammers that cost thousands of dollars are the norm. The politicians that agree to these things are not worried about cost. They are worried about votes. They want to bring money to their district so will do whatever, including paying huge amounts for cheap things.

Response by LTC Paul Labrador made May 17 at 2016 1:57 PM

LTC Paul Labrador — Tue, 17 May 2016 13:57:02 -0400

Actually for a lot of things, it's not. Your average M16 is cheaper per unit than a commercial AR15 would be for you or I at a gun store. That is the power of bulk buys. Now for major end items like an M1 tank or the F35, a lot of it is because companies will lowball their bids to get the contract knowing that there will be eventual cost overruns, particularly if there is still a lot of R&D to be done. The government doesn't do a good job of containing these overruns.

Response by SFC Pete Kain made May 17 at 2016 2:09 PM

SFC Pete Kain — Tue, 17 May 2016 14:09:46 -0400

Somebody has to pay for the R&D. May as well be the taxpayer. (said Tongue in Cheek)

Response by SFC John Hill made May 17 at 2016 5:12 PM

SFC John Hill — Tue, 17 May 2016 17:12:47 -0400

If you want to know some of the details, read Department of Defense Directive (DODD) 5000.1, The Defense Acquisition System and Department of Defense Directive (DODD) 5000.2, Operation of the Defense Acquisition System. These two documents are just the basic overview of the process.

Response by PO1 William "Chip" Nagel made May 17 at 2016 7:06 PM

PO1 William "Chip" Nagel — Tue, 17 May 2016 19:06:18 -0400

That's and easy question, Lobbyist they have to be paid, Congressmen where the Lobbyist spend their money. Military Industrial Complex Propagandist they get to be paid to tell us what we need.

Response by Sgt Aaron Kennedy, MS made May 17 at 2016 7:09 PM

Sgt Aaron Kennedy, MS — Tue, 17 May 2016 19:09:42 -0400

Lots of factors.

1) Buy American. Labor Cost in America drives costs up.
2) "Pork" in laws. If you look at Aircraft, you can find how almost every state had at least 1 "component" built in every state or congressional region. This drove costs up through "shipping." Things that could be made in the same places weren't made in the same places, because we "spread the wealth" This is Good & Bad. We want things decentralized so that if a single factory shuts down we don't lose capability.. but we've taken things too far.
3) Others have mentioned Low Bidder & Cost Overrun.
4) Change Orders. If the Requirement changes at all, the cost goes to "Out of Scope" which means the total costs go way up.
5) R&D. Best fighting force in the world. We have specific requirements and we pay for them. Can't just buy a lot of it off the shelf. The stuff that can be bough COTS doesn't survive.