F-35
Credit: USMC

Defense Secretary James Mattis made some frank remarks about the Pentagon’s budget woes last month. “I cannot right now look you in the eye and say that we can tell you that every penny in the past has been spent in a strategically sound manner,” he said during a speech to graduating Air Force cadets in Colorado Springs, CO. “And so this year, for the first time in 70 years, the Pentagon will perform an audit.”

A $2.4 BILLION GAP IS REAL MONEY, EVEN FOR THE PENTAGON.

The idea is simple, in theory: get some outsiders (1,200 accountants and some big-name firms) to scrutinize the books to identify where the money goes. But the process promises to be a painful exercise for the Pentagon, which has struggled to manage its $700 billion annual budget. Big-ticket items have the biggest cost overruns, most notably the F-35 Lightning II. But even well-run programs, like the effort to create the new B-61-12 nuclear bomb, have baseline discrepancies that […]

Read the Full Article