Defense Research and Development

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The Science, Technology, and Politics of Weapons
Systems Procurement STS.073

• Lecture 2
• Defense Research and Development
• Fall 2006

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Defense Research and DevelopmentDiscussion Topics

• The Defense budget
• Defense RD
• The appropriations process in Congress
• The earmarks
• ST organization and its transformation
• Defense ST strategy
• Erosion in governments in-house ST capabilities
  

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For the next class on November 1

• Please read
• Strategic Military Technology Policy and
  Murphys Law by Josephine Anne Stein
• Please submit written comments and questions on
  the paper for class discussion (last one hour)
• Please e-mail questions and comments to us before
  the class by Tuesday (10/31)

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The Defense Budget

• Fiscal Year 2007 defense budget exceeds half a
  trillion dollars
• 532 billion, including 70 billions in
  supplemental funds for combat operations in Iraq
  and Afghanistan
• Accounts for nearly 50 of the total world-wide
  military expenditures (1001 billion in 2003)
• From 19962005, military expenditures rose world
  wide
• the world total increase - 254 billion
• US An increase of 160 billion to a total of
  478 billion
• China - 25.5 billion (an increase of 165) to
  41 billion

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Military spending world-wide a perspective

• US military spending compared with potential
  adversaries
• 12 times that of China
• 23 times that of Russia
• 3 times that of major NATO countries combined
• US and major allies spend over 750 billion per
  year compared
• 36 times that of Russia
• 18 times that of China

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Source FY2006 Presidents Budget
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The budget preparation

• The fiscal year starts on October 1 of each year
• e.g. FY 2007 runs from October 1, 2006 to
  September 30, 2007
• A Program Objective Memorandum (POM) is prepared
  in the Fall and submitted to OMB
• POM includes inputs from the services and the
  Pentagon
• OMB is responsible for the final budget, which is
  the ultimate result of all intra-government
  negotiations
• President submits the budget to Congress before
  he delivers the State of the Union in a joint
  session of the Congress

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The budget and the appropriation of funds

• This is where the power of the Congress lies!!

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The legislative process

• Authorization and Appropriation
• Authorization
• House and Senate Armed Services Committees
• Passes the Defense Authorization Bill detailing
  how DoD will spend its money
• Appropriation
• House and Senate Appropriation Committees pass
  Defense Appropriations bill that appropriates
  funds

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Defense RD enterprise what does it entail?

• The current level of federal investment in RD,
  both in absolute terms and as a share of the
  budget, is over an order of magnitude greater
  than what it was prior to World War II.
• In the president's 2006 budget submission, the
  federal government set aside 132.3 billion for
  RD - 13.6 of its discretionary budget.
• Defense-related RD dominates the federal RD
  portfolio.
• 74.8 billion in 2006, or 59 of the entire
  federal RD budget
• In FY 2006, DOD requested RDTE funds in excess
  of 1 billion each for four weapon systems.

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Definitions of RD functions

• RD refers to both basic and applied research and
  development activities in the sciences and
  engineering. Research is systematic study
  directed toward fuller scientific knowledge or
  understanding of the subject studied.
• Basic Research systematic study directed toward
  fuller knowledge or understanding of the
  fundamental aspects of phenomena and of
  observable facts without specific applications
  toward processes or products in mind.
• Cannot be known whether a particular scientific
  result will lead to a military application
• Applied research systematic study to gain
  knowledge or understanding necessary to determine
  the means by which a recognized and specific need
  may be met.
• Matures technology for military use. Could
  include proof-of-concept experiments, or in some
  cases, prototypes embodying a technology.
• Advanced Technology Development systematic
  application of knowledge or understanding,
  directed toward the production of useful
  materials, devices, and systems or methods,
  including design, development, and improvement of
  prototypes and new processes to meet specific
  requirements.
• It excludes quality control, routine product
  testing, and production.
• Source National Science Foundation (Report No.
  NSF 06-317)

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How is the RD budget spent?

• The total defense RD is about 75 billion a
  year, compared with about 60 billion for the
  civilian
• Fundamental distinction between the two is in the
  way the funds are spent for advancing science and
  technology
• 13 of the defense RD budget is in ST
• 75 of the civilian
• For the purposes of our discussion, we will focus
  not just on the small ST part, but the whole RD
  budget

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Defense bills in Congress how the sausage is made

• Not a pretty sight
• The moment the budget arrives on the Hill,
  lobbying starts
• Contractors
• Military brass and their wish lists
• Members of Congress and their staff
• Pro forma hearings mostly involving witnesses
  from the services and the Pentagon

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Earmarks

• The power of appropriations allow Congress to
  modify the Presidents budget
• Increase or decrease funding for specific
  programs
• Even eliminate funds for a program thus killing
  it altogether
• Add funds for pet programs not requested by the
  Pentagon by earmarking it
• A source of great deal of abuse by contractors
  and lobbyists with the help of members of
  Congress

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Comparison of defense and non-defense RD
expenditures in the U.S.
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Defense ST and the Universities

• Basic, applied research, and advanced development
  together form the defense ST
• The basic research about 1.4 billion a year -
  significant for universities
• DoD supports most engineering research at
  universities
• Electrical Engineering 72
• Mechanical Engineering 75
• Metallurgy and Materials Science 35
• Math and Computer Science 15
• Source DoD Basic Research Plan, February 2005,
  p.IV-3

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The ST Enterprise

• DARPA
• Service laboratories
• National laboratories
• Federally-funded RD Centers (FFRDCs)
• Industrial laboratories
• Research universities

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Defense Advanced Research Projects Agency (DARPA)

• It is the principal organization charged with
  developing future military technologies
• Its budget has grown dramatically after 9/11
• Credits to DARPA include
• The Internet, GPS, Night-vision, and Stealth
• Accountability is lacking
• Total Information Awareness, the Hafnium bomb

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Critical functions of Military labs

• Performed research in areas with no commercial
  payoff
• Provided the in-house knowledge base for
  overseeing contractors
• Responded rapidly to unforeseen threats

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Change in the nature of RD investments

• RD has become big business
• In 1978, DoD spent 320 millions for basic
  research out of a total RD budget of about 13
  billion (2.5)
• In 1984, it spent 845 million out of about 29
  billion (2.9)
• In 2006, it was 1.4 billion out of about 75
  billion (1.86)
• Source Federal RD Funding by BudgetFunction
  Fiscal Years 200406, NSF 06-317

In current dollars, RD has grown nearly six
times since 1978! Basic research has fallen as a
percentage of the total RD spending, especially
in the Reagan SDI era!
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Post-Cold War consolidation of the science
establishment

• Since the end of the Cold War, DoD labs have lost
  more than 40 of the civilian workforce
• The labs have been easy targets for budget
  cutters looking for money
• Closure and reconsolidation of government
  laboratories
• Air Force Geophysics Lab, Harry Diamond Lab
• Loss of stature of preeminent laboratories in
  industry
• Bell, David Sarnoff, Westinghouse Research Lab,
  GE, United Technologies, Avco Everett

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A Preview of the next classThe Acquisition
ProcessAgenda

• Acquisition of Major Weapon Systems
• Motivations and constraints
• A paradigm shift from threat-driven requirements
  to capability-based
• Technology Development
• Transition from concept to deployment
• Challenges in Technology Readiness Assessment
• Testing and evaluation
• Declining oversight