Panel grills officials over soaring weapons systems costs

The House Armed Services Committee warned the Pentagon's top acquisition officials Wednesday that the skyrocketing costs of weapons systems, coupled with long, increasingly common program delays, will make it impossible for the military to buy the equipment it needs.

During a three-hour hearing, panel members criticized the Defense Department for failing to overhaul its bureaucratic acquisition structure, and grilled the senior officials about their plans to control costs and stick to schedule goals.

"The current acquisition system is not up to the job of supporting our national security," Armed Services Chairman Duncan Hunter, R-Calif., said. "The capabilities and costs of our individual platforms are rising so quickly that we will not be able to afford enough of them to fulfill all our requirements."

Armed Services ranking member Ike Skelton, D-Mo., likewise argued that current acquisition problems leave the Defense Department with an inventory of aging equipment, hindering the military's ability to modernize forces to combat current and future threats.

"What we have keeps getting older," Skelton said.

The witnesses, including Pentagon acquisitions chief Kenneth Krieg and acquisition representatives from the three military departments, largely agreed with the committee's conclusions, but asserted that changes are now under way to better manage the department's buying processes.

Krieg, considered a member of Defense Secretary Rumsfeld's inner circle, argued that the Pentagon "must exercise discipline" and "demand the highest integrity" of its acquisition workforce, and operate in an "atmosphere of transparency" that allows for congressional oversight.

Hunter repeatedly emphasized that production engineers should have a more vital role in system development, acting as a voice of reason to keep programs from growing so unwieldy and expensive that they become difficult to pay for and manage.

Lawmakers appeared particularly concerned about burgeoning costs in shipbuilding, aircraft and military space programs, where cost overruns and schedule delays are becoming almost commonplace.

The cost of the DD(X) destroyer, for instance, has grown to $3.3 billion for the first ship -- $2 billion more than its predecessor, the Arleigh Burke DDG-51 destroyer.

John Young, the Navy's assistant secretary for research, development and acquisition, defended those costs, arguing that the next-generation destroyer will be far more capable than earlier versions. He later told reporters he would eventually like to whittle costs per ship to below $2 billion.

Panel members also questioned Pentagon officials about a recent Knight Ridder newspaper report that uncovered overpriced goods purchased by the military, including $20 for plastic ice trays.

"If it's happening here, it's happening on bigger things," said Rep. Joel Hefley, R-Colo. "It's embarrassing to the Pentagon; it's embarrassing to us."

Krieg said he is investigating the matter, and will have preliminary information to the committee by the end of the week. So far, Defense officials have not substantiated the news report, he said.

Both the House and Senate Armed Services committees have inserted extensive language about acquisition reform in their versions of the fiscal 2006 defense authorization bill. The language differs somewhat, but both measures want to increase congressional oversight of major weapons systems.

The House passed the defense authorization bill earlier this year, and the Senate could debate the legislation as early as Friday.

Meanwhile, the Pentagon is conducting its own review of its acquisition processes, led by former Missile Defense Agency chief, retired Lt. Gen. Ronald Kadish. The review should be completed later this year.