Lecture 2 Defense Research and Development Fall 2006

1. The Science, Technology, and Politics of Weapons Systems Procurement STS.073 Lecture 2 Defense Research and Development Fall 2006

2. Defense Research and DevelopmentDiscussion Topics • The Defense budget • Defense R&D • The appropriations process in Congress • The earmarks • S&T organization and its transformation • Defense S&T strategy • Erosion in government’s in-house S&T capabilities STS.073 Lecture 2 - Ghoshroy Defense S&T

3. For the next class on November 1 • Please read: “Strategic Military Technology Policy and Murphy’s 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) STS.073 Lecture 2 - Ghoshroy Defense S&T

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5. 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 1996–2005, 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

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7. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

8. Source: FY2006 President’s Budget STS.073 Lecture 2 - Ghoshroy Defense S&T

9. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

10. The budget and the appropriation of funds • This is where the power of the Congress lies!! STS.073 Lecture 2 - Ghoshroy Defense S&T

11. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

12. Defense R&D enterprise – what does it entail? • The current level of federal investment in R&D, 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 R&D - 13.6% of its discretionary budget. • Defense-related R&D dominates the federal R&D portfolio. • $74.8 billion in 2006, or 59% of the entire federal R&D budget • In FY 2006, DOD requested RDT&E funds in excess of $1 billion each for four weapon systems. STS.073 Lecture 2 - Ghoshroy Defense S&T

13. Definitions of R&D functions R&D 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) STS.073 Lecture 2 - Ghoshroy Defense S&T

14. How is the R&D budget spent? • The total defense R&D 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 R&D budget is in S&T • 75% of the civilian • For the purposes of our discussion, we will focus not just on the small S&T part, but the whole R&D budget STS.073 Lecture 2 - Ghoshroy Defense S&T

15. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

16. Earmarks • The power of appropriations allow Congress to modify the President’s 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

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18. Comparison of defense and non-defense R&D expenditures in the U.S. STS.073 Lecture 2 - Ghoshroy Defense S&T

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21. Defense S&T and the Universities • Basic, applied research, and advanced development together form the defense S&T • 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

22. The S&T Enterprise • DARPA • Service laboratories • National laboratories • Federally-funded R&D Centers (FFRDCs) • Industrial laboratories • Research universities STS.073 Lecture 2 - Ghoshroy Defense S&T

23. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

24. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

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26. Change in the nature of R&D investments • R&D has become big business • In 1978, DoD spent $320 millions for basic research out of a total R&D 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 R&D Funding by BudgetFunction: Fiscal Years 2004–06, NSF 06-317 • In current dollars, R&D has grown nearly six times since 1978! • Basic research has fallen as a percentage of the total R&D • spending, especially in the Reagan SDI era! STS.073 Lecture 2 - Ghoshroy Defense S&T

27. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T

28. 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 STS.073 Lecture 2 - Ghoshroy Defense S&T