Analysts: Army equipment spending surge to end

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Analysts: Army equipment spending surge to end
By Antonie Boessenkool - Staff writer
Posted : Wednesday Nov 11, 2009 19:36:19 EST

NEW YORK — The surge in spending on equipment for the Army over the past several years has likely run its course, the president of the Center for Strategic and Budgetary Assessments, an independent research organization, told analysts at an investor conference here Tuesday.

But, said Andrew Krepinevich, who is also a former member of the Pentagon’s Office of Net Assessments, that spending surge has resulted in a “hollow” buildup that doesn’t really add to the Army’s assets in a significant way, as equipment continues to be worn out by wars in Iraq and Afghanistan.

That situation is unlikely to be remedied as long as the burden of fighting two wars falls heavily on the Army. The “safety valve” used in the past — cutting force strength to lower personnel costs and free up procurement funds — currently isn’t an option with a high-operational tempo for the service and planned troop increases.

Krepinevich spoke at an investor conference hosted by Defense News and Bank of America Merrill Lynch in New York. He echoed other speakers at the conference in saying there is a concern operations and maintenance and personnel costs will crowd out acquisition spending, and U.S. government spending to support the economy will add pressure to defense spending as well.

Expectations are that Defense Secretary Robert Gates will ask for base budget spending that is 2 percent higher in real dollars for fiscal year 2011 versus the base budget for fiscal year 2010, Krepinevich said, adding that plans to incorporate supplemental or war funding into that base budget will add pressure as well.


Rest of article at: http://www.armytimes.com/news/2009/11/defense_army_spending_111109/