Calls for fiscal efficiency sounded at 2011 Defense Logistics Conference

WASHINGTON, D.C.—“There are two ways to do something: an expensive way, and a cheap way. We cannot sacrifice effectiveness for the warfighter. But we can show them what the [cost] options are.” With those words,  Army Lt. Gen. Kathleen Gainey, deputy commander of the U.S. Transportation Command, kicked off her remarks at the 2011 Defense Logistics Conference. 

The multi-day conference was headlined by leaders from across the defense logistics community, including Gainey, Vice Adm. Mark Harnitchek, director of the Defense Logistics Agency, and Rep. Randy Forbes of Virginia, the senior Republican on the House Armed Services Readiness Subcommittee.  A resounding theme emerged: the need to deliver continued effectiveness for the warfighter, while increasing efficiency and reducing cost.

Like Gainey, many of the speakers highlighted the current fiscal environment, calling for the military and its industry partners to do more with less, especially while Operations New Dawn and Enduring Freedom are underway. 

Speaking specifically to commercial partners, Harnitchek called for measureable increases in performance and speed. “If you’re from industry,” he said, “Don’t sell us things that fail so much…It ought to fail less than the part it replaced.  If you’re in the repair business, think about having a turnaround time that’s not six months long. Let’s make it a month long.”

Forbes highlighted the failure of the congressional super committee to come to agreement, specifically forecasting the effect mandated budget cuts could have on the defense community.  Speaking of the defense budget, he said, “We have already made $485 billion in cuts that are going to have transformational effects.  Now we are going to more than double those cuts because of the failure of the super committee.”  Forbes suggested congress conduct a thorough review of defense budget reductions before enacting cuts. “You need to do strategic reviews before you make those cuts,” he said, “Not make the cuts before you do the review.”

Gainey reminded the audience of USTRANSCOM’s specific financial savings goals as part of its Distribution Process Owner Strategic Opportunities effort: “The goal is to save $500 million through 2012 by better air, surface and pallet utilization. We are on track to achieve those savings.” 

She summarized, “This is our goal: Better capability, better delivery at cheaper cost.”

-USTRANSCOM-