The Effects of Aging on the Costs of Operating and Maintaining Military Equipment

Abstract : Many defense experts and senior military leaders believe that the U.S. military is in a "defense spending death spiral" that threatens to severely reduce the effectiveness of the nation's armed forces. According to one interpretation, decisions in the 199Os to reduce purchases of new equipment left the military with aging fleets of ships, aircraft, and armored vehicles that are increasingly expensive to maintain. This situation creates a cycle in which more funds are spent maintaining older equipment at the expense of new purchases, which in turn leads to still older equipment and higher maintenance costs. Currently, about 37 percent of the Department of Defense's (DoD's) budget pays for the day-to-day costs of operation and maintenance (O&M), and 26 percent goes for the salaries and benefits of military personnel.