Pentagon pursues productivity growth

The post-Sept. 11 defense spending boom is over. That's the message Defense Secretary Robert Gates sent to Pentagon officials and military contractors this spring when he ordered a "hard, unsparing" review of how the department is staffed, organized and operated.

"The purpose is to significantly reduce our overhead costs in order to free up the resources needed to sustain our force structure, to modernize and to create future combat capabilities," Gates said in June at the Pentagon.

Specifically, Gates wants to find $100 billion in overhead savings over the next five budget cycles, beginning with the 2012 budget, to fund needed equipment and weapons during what is projected to be a period of slowed or flat military spending. "An important part of achieving that goal is working closely with our industry partners and departmental contracting professionals," he said.

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