Defense Logistics Agency chief Vice Adm. Mark Harnitchek has given his organization marching orders to find $10 billion in efficiencies over the next five years. Speaking with defense reporters in Washington, D.C., on June 27, Harnitchek said the savings would be separate from the decline in demand for goods as the war in Afghanistan winds down. He’s convinced there are ways to reduce “over-buying” of goods and “keeping them around too long.” He said DLA is using every available computer modeling tool to accurately anticipate demand. Harnitchek said he wants a reduction in the distribution network, currently “at 26 places.” DLA wouldn’t design a distribution system “that looks like the one we have” if it were starting from scratch, he said. Nevertheless, he doesn’t see a reduction in DLA’s manpower level of 27,000 people.
The Pentagon announced new long-term agreements with four defense companies May 13 to develop and produce large numbers of low-cost cruise missiles. And while the effort will focus mostly on the Army to start, it pairs with Air Force efforts to find more affordable munitions.