Nearly Half the Pentagon Budget Goes To Contractors

In fiscal year 2016, the Pentagon issued $304 billion in contract awards to corporations—nearly half of the department’s $600 billion-plus budget for that year.

the biggest beneficiaries by a country mile were

  1. Lockheed Martin ($36.2 billion),
  2. Boeing ($24.3 billion),
  3. Raytheon ($12.8 billion),
  4. General Dynamics ($12.7 billion), and
  5. Northrop Grumman ($10.7 billion).

Together, these five firms gobbled up nearly $100 billion of your tax dollars, about one-third of all the Pentagon’s contract awards in 2016.

Health care companies like

  1. Humana ($3.6 billion),
  2. UnitedHealth Group ($2.9 billion), and
  3. Health Net ($2.6 billion) cash in as well,

and they’re joined by, among others, pharmaceutical companies like

  • McKesson ($2.7 billion) and

universities deeply involved in military-industrial complex research like

  • MIT ($1 billion) and
  • Johns Hopkins ($902 million).

.. The heads of the top five Pentagon contractors—Lockheed Martin, Boeing, Raytheon, General Dynamics, and Northrop Grumman—made a cumulative $96 million last year.

These are companies that are significantly or, in the cases of Lockheed Martin and Northrop Grumman, almost entirely dependent on government dollars.

.. Donald Trump initially spent a fair amount of tweeting energy bragging about how he was going to bring such contractors to heel on their pricing practices for weapons systems. In fact, he’s already turned out to be good news indeed for major contractors, most of whom have seen sharp upturns in revenues and profits

.. Trump has proven eager to lift restrictions on U.S. weapons sales abroad (and enlist State Department and Pentagon officials to spend more of their time shilling such weaponry).

.. The arms industry’s investment in lobbying is even more impressive. The defense sector has spent a total of more than $1 billion on that productive activity since 2009, employing anywhere from 700 to 1,000 lobbyists in any given year.

.. you’re talking about significantly more than one lobbyist per member of Congress, the majority of whom zipped through Washington’s famed “revolving door”; they moved, that is, from positions in Congress or the Pentagon to posts at weapons companies from which they could proselytize their former colleagues.

.. Two analysts from U.S. war colleges have estimated that about 300 deliverable nuclear warheads would be enough to dissuade any nation from attacking the United States with a nuclear weapon.

.. And note that the current trillion-dollar “modernization” program for the nuclear arsenal was initiated under President Barack Obama, a man who won the Nobel Prize for his urge to abolish all such weaponry.

.. In 2011, a study by economists from the University of Massachusetts made this blindingly clear.  What they showed was that military spending is the worst way to create jobs. Putting the same money into any other area—from infrastructure to transportation to alternative energy to healthcare or education—creates up to twice as many jobs as military spending does.

.. Contractors aid and abet the process of investing in the Pentagon by routinely exaggerating the number of jobs their programs create.

.. the best jobs generated by Pentagon spending are the ones for well-heeled lobbyists and overpaid corporate executives.

.. So the next time someone suggests that the Pentagon needs yet more money for the troops, just remember that what they’re actually talking about are troops of overpaid defense contractors, not members of the armed forces.

Thiel Pushes to Add Commercial-Space Backers to Trump NASA Team

Expected appointments of Alan Stern, Alan Lindenmoyer and Charles Miller to NASA transition team reflect venture capitalist’s influence

Venture capitalist Peter Thiel successfully pushed to give commercial space companies a stronger voice within President-elect Donald Trump’s NASA transition team, the result of an internal tug of war over policy directions and future decision makers at the agency.

.. Mr. Thiel has argued forcefully inside the transition that the original team sent to the National Aeronautics and Space Administration was skewed toward appointees closely identified with legacy space projects run by Boeing Co. and Lockheed Martin Corp., the people said.

.. These critics have complained in conversations with transition officials and others that Messrs. Thiel and Musk, longtime friends and business associates, are working together for their own financial benefit, these people said.

Founders Fund, one of Mr. Thiel’s companies, was an early and significant investor in SpaceX. As a result, these critics argue that Mr. Thiel stands to personally gain from enhanced federal support of commercially run space programs at SpaceX.

The inaccuracies in Donald Trump’s Air Force One tweet

“ … a brand new 747 Air Force One … ”

At a minimum, there would be two Air Force Ones. You need a spare in case there is a problem with one. The jets generally have a life cycle of 30 years.

.. Air Force One needs to be designed to survive a nuclear war. It requires all sorts of undisclosed security upgrades and countermeasures. It can refuel in flight. The actual cost of the plane will depend on the equipment that goes into it. There also needs to be extensive testing, probably lasting two years, before the plane is deemed ready for presidential travel.

.. The Boeing 757 jet used by the secretary of state was supposed to get long-range engines but at the last moment, they were killed by then-Sen. Ted Stevens (R-Alaska). This resulted in some cost savings — and also that the secretary of state would always have to refuel in Alaska on flights to and from Asia.

..Boeing says it made no money making the last set of Air Force One jets and does not expect to make money on this order, as it is more a matter of prestige.
.. Todd Harrison, a defense budget expert at the Center for Strategic and International Studies, said “the program is very new and hardly had a chance to get started yet.” So, in effect, there are no real cost overruns yet. He added that the estimated $4 billion cost is reasonable given the requirements of the project.

Trump Says U.S. Should ‘Cancel Order’ for New Air Force One, Citing Costs

President-elect Donald Trump on Tuesday suggested the U.S. government should cancel a planned order with Boeing Co. for planes to serve as the new Air Force One

.. In a Twitter post Tuesday, Mr. Trump said the cost for a new “Air Force One” plane for future presidents was “more than $4 billion. Cancel order!”

 .. Boeing is the second-largest Pentagon contractor after Lockheed Martin Corp.—which is building the fleet of new helicopters that will serve as Marine One—and makes fighter jets, surveillance planes, bombs and other systems that generated sales of almost $19 billion from the Pentagon last year, a fifth of its total revenues.
.. The development deals include proposed modifications to the aircraft, from sophisticated communications equipment to other upgrades such as antimissile devices, according to experts.

.. The Air Force earmarked $1.65 billion between 2015 and 2019 to develop two replacement jets, and said it may acquire up to three.

.. The Air Force has previously specified it needed a four-engine plane to serve as Air Force One. Airbus Group SE is the only other maker of such jets
.. Boeing’s 747-8 carries a list price of $378 million