Military Industrial Complex Warped Priorities

Politicians make no difference.

We have bought into the Military Industrial Complex (MIC) ever since we took on Russia in the Cold WAR.

Through a combination of public apathy and threats by the MIC we have let the SYSTEM get too large. It is now a SYSTEMIC problem and the SYSTEM is out of control.

I am a 2 tour Vietnam Veteran, retired after 36 years of working in the Defense Industrial Complex on many of the weapons systems being used by our forces as we speak.

There is no conspiracy. The SYSTEM has gotten so big that those who make it up and run it day to day in industry and government simply are perpetuating their existence.

The politicians rely on them for details and recommendations because they cannot possibly grasp the nuances of the environment and the BIG SYSTEM.

So, the system has to go bust and then be re-scaled, fixed and re-designed to run efficiently and prudently, just like any other big machine that runs poorly or becomes obsolete or dangerous.

This situation will right itself through trauma. I see a government ENRON on the horizon, with an associated house cleaning.

The next president will come and go along with his appointees and politicos. The event to watch is the collapse of the MIC.

The Road To A $1 Trillion U.S. Defense Budget

“NATIONAL SECURITY JOURNAL” By Brent M. Eastwood

“A trillion here and a trillion there. Pretty soon, you are talking about…a big problem. That is the projected defense budget cost in the coming years—a cool one trillion—and perhaps even more.“

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“In 2022, the defense budget was still only 3 percent of GDP. During the Cold War, it was much higher. So, comparing the level of spending to the size of the economy is a different way to look at it.

But that top-level number is certainly eye-watering.

Even though the United States is not currently in a major shooting war, it is still confronted by the growth of great power and rising power rivalries with China, Russia, North Korea, and Iran, plus contingencies in the Middle East. That means more spending is required to keep up.

Let’s examine the reasons for high costs and where the U.S. defense budget could be headed in the years to come, especially in the era of great power competition.

Major Defense Hardware Programs Are What People Criticize the Most

Most people associate defense spending with expensive major-end items, and these are budget busters. Existing programs like the F-35 have been a money pit. New toys such as the B-21 Raider stealth bomber, the newfangled Next-generation Air Dominance (NGAD) fighter, and the Ford-class aircraft carrier are costly. All acquisition programs cost $146 billion in 2023.

Personnel Costs Are Rampant

Other costs that are not readily apparent are personnel costs for the U.S. military uniformed service and the civilian service for the Pentagon. Salaries are expensive. Healthcare costs for active duty personnel and their families are out of this world. Retirement pensions also have heavy sunken costs in the budget. That’s a total of $184 billion a year and rising.

Parochial Interest Over Defense Jobs and Economic Development

The United States is also doing what it hasn’t done since the Cold War: bringing on new weapons, funding legacy systems, and spending more on research and development—all at once.

Something has to give because congressional lawmakers and politicians of all stripes want defense jobs in their neighborhoods, and that means continued spending on all of the above.

Overseas Operations Are Not Cheap

The Pentagon has other costs. There is a sprawling number of overseas installations and bases, plus new base construction and sustainability on our continent. There is an unending supply of money that goes to special operations forces. There is maintenance of existing weapons. Let’s round up and call that around $55 billion.

Ammunition, missiles, and bombs are expensive. Peacekeeping operations and disaster relief are also part of the budget equation.

Funding Allies for Their Wars

We may not be fighting any major wars, but allies are. Tens of billions of dollars have gone to Ukraine for its war against Russia. Money goes out the door to Israel to fight its war against Hamas. Funds are also required to help Egypt with its defense forces, plus aid to several other countries. The estimated cost is $100 billion.

What to Do With Old Hardware and Ammunition?

Other costs that people don’t consider are destroying old equipment, storing out-of-date hardware, and placing retired airplanes in a “Boneyard” in Arizona. All of this costs money.

This totals $916 billion in 2023, or 13 percent of the federal budget. That’s twice as much as all of the NATO countries and 40 percent of all spending worldwide. In a few years, it seems sure we will top over $1 trillion.

Cutting the Budget? How?

Where can the United States cut the budget? You may have noticed that I am a military analyst who is often in love with big-ticket military hardware. I can find a reason to fund numerous new programs and sustain legacy weapons. So, I’m probably guilty on the defense acquisition side for an advocate to plus-up spending.

Nobody wants to cut the pay of active-duty or reserve forces. All earn their healthcare, housing, and retirement pensions, and there is no political will to change that. Look for personnel costs to increase every year.

To be a world leader, the United States needs to maintain a forward presence worldwide. Treaties require some of this, such as the need for bases in South Korea, like the sprawling Camp Humphreys, which houses a big part of the American presence on the peninsula.

Military R&D Is Important Too

We need research and development, not only for the future of the military but also to sustain the defense industrial base that has spawned great dual-use technological transformations and seed funding for GPS and the Internet.

Many Watchdogs Already Exist

How about cutting waste, fraud, and abuse or ending bad acquisition systems?

Federal government agencies such as the Defense Contract Management Agency and the Government Accountability Office already closely monitor most defense programs. Congress, nonprofits, think tanks, and the defense media also monitor potential overspending.

With the 24/7 internet-driven press oversight and social media, there are few secrets about defense wastefulness and many watchful eyes to shine a light on problems. One could argue that programs should be eliminated early, such as the terrible U.S. Littoral Combat Ship or the questionable V-22 Osprey tilt-rotor aircraft. But these cancellations would not make much of a difference in the overall budget.

Can the United States Back off on Equipment?

A group of non-profits and think tanks are calling for more restraint in foreign policy and fighting American overreach in defense spending. But they have difficulty breaking through the noise in Washington, DC, with so many other domestic problems that need solutions.

The Defense Train Keeps Chugging Along

So, the defense train is almost unstoppable. We are in for a penny and in for a pound nowadays. Don’t look for Republicans and Democrats to cut military spending that much. The price is too baked into the system. We are going to see trillion-dollar defense budgets in the coming years, and most people will not even notice. The Federal Reserve Bank can continue to print money to fund the defense budget, and a high deficit is not enough to scare the public off from supporting or ignoring more defense spending. Buckle in for a bumpy ride.”

About the Author: Dr. Brent M. Eastwood

Brent M. Eastwood, PhD, is the author of Don’t Turn Your Back On the World: a Conservative Foreign Policy and Humans, Machines, and Data: Future Trends in Warfare, plus two other books. Brent was the founder and CEO of a tech firm that predicted world events using artificial intelligence. He served as a legislative fellow for U.S. Senator Tim Scott and advised the senator on defense and foreign policy issues. He has taught at American University, George Washington University, and George Mason University. Brent is a former U.S. Army Infantry officer. He can be followed on X @BMEastwood.   

12 Names on a Wall in Washington D.C. Forgotten By Many But Not By Me

PLEASE CLICK IMAGE TO ENLARGE

VETERANS DAY - 11 NOVEMBER 2025

To those who died serving USAECAV  Countrywide  

http://thewall-usa.com/ 

  Database of the 58,195 Names on The Wall in Washington D.C. This is the most accurate database online.

 

For Veterans Day 2025 – What Can Be Learned To Avoid Future ‘Walls Of Faces'?

Vietnam War Wall of Faces

 

Our active duty military soldiers are the best in the world to defend us if war occurs.  They cannot defend against the financial influence and political weight of the largest military industrial complex in world history.  Managing  that threat is the voters job. 

What I have learned in two combat tours and 36 years in the weapons systems business is that someone different than I may not have the same value system as I possess, but by learning from them I will be able to make distinctions between my values and theirs. 

That permits me to consider accepting the differences between us without prejudice, communicate with them and move forward on common objectives.All wars eventually result in negotiated settlements. Avoiding them by learning and negotiation in the first place is the most effective war weapon and by far the least costly in materials, debt and lives. 

As a participant in warfare and weapons over the last half century I have learned a considerable amount about

TWO MAJOR DRIVING FACTORS IN OUR RECENT WAR HISTORY

FACTOR 1 - GOVERNMENT CONTRACTOR  MOTIVES:

The motives of the U.S. Military Industrial Complex (MIC) and The US Agency for International Development (USAID) contractors fostered continuing wars. Continued wars net billions in sales of weapons and massive construction and redevelopment dollars for contracting companies.

It is common knowledge that many of these corporations spend more each year in lobbying costs than they pay in taxes and pass exorbitant overhead and executive pay costs on to the tax payer, thus financing the riches of their operating personnel while remaining marginally profitable to stockholders.

I watched this from the inside of many of these companies for 36 years. You can read my dissertation on the subject at:

Odyssey of Armaments | Ken Larson - Academia.edu

Here is an example of how the lobbying and behind the scenes string-pulling worked during the run up and the conduct of the war incursion into Iraq: 

CorpWatch : US: Lockheed Stock and Two Smoking Barrels

DRIVING FACTOR 2 - LACK OF CULTURAL UNDERSTANDING 

There has been a  complete lack of cultural understanding between U.S. decision makers and the cultures they have been trying to "Assist" by nation building. 

The only real cultural understanding that existed during the period was in the person of General Schwarzkopf who spent much of his youth in the Middle East with his father, an ambassador to Saudi Arabia. He was fascinated by the Arab culture, commanded their respect and, like Eisenhower, led a successful coalition during the first Gulf War to free Kuwait.  

He astutely recommended no occupation of Iraq, went home and stayed out of government. Norman, like General Eisenhower, knew the power of the MIC. 

Eisenhower's Departing Speech

U.S Tax payers funded billions in USAID and construction projects in Iraq. The money was wasted due to a lack of cultural understanding, waste,  fraud and abuse. The Project On Government Oversight (POGO) has documented that aspect of the Iraq war history, as well as similar motives and abuses in Afghanistan. 

POGO on Iraq

We now have history repeating itself - much like Vietnam, the Balkans, Iraq, Afghanistan and now the Gaza conflict, the above two factors are deeply at play as we look back over our shoulder.

We must come to the understanding, like a highly respected war veteran and West Point instructor has, that military victory is dead:

“Victory’s been defeated; it’s time we recognized that and moved on to what we actually can accomplish."

Military Victory is Dead

Frank Spinney is an expert on the MIC. He spent the same time I did on the inside of the Pentagon while I worked Industry. You may find his interviews informative.

Inside the Pentagon: 30-Year Insider Chuck Spinney

THE INESCAPABLE CONCLUSIONS:  

The two major war making factors discussed here have been in play from Vietnam, the Balkans, Iraq, Afghanistan, Ukraine and now to the continued Middle East bedlam. 

Political and military values on both sides of a world conflict collide when governments and weapons makers treasure the economic windfalls in collective military industrial technology and refuse to negotiate. Soldiers and civilians then die. 

Our near term future as a country involves weighty decisions regarding our fiscal and national security.  There will be trade-offs. We have now exceeded a National Debt of $38 Trillion with a downgraded fiscal credit rating while carrying the financial burden of ongoing support for NATO and the Ukraine war, the Middle East Gaza conflict, as well as domestic program needs. 

 A look over our shoulder at the two driving factors in our recent warfare is useful when viewing our future while making prudent decisions regarding our future financial and defense security. Every U.S. citizen from the individual voter to the politician must consider them. 

Effective negotiation must involve learning the other party's values, not simply the perceived threat they represent to us because we do not know them.

From the neighborhood to the boardroom, from the statehouse to the Congress, we would do well to learn more about those different from us before we fight.

Veterans Day 2025 - Remembering Two Of Hastings, Minnesota’s Unforgettable Veterans

Vietnam Veteran Gordon Schmidt

I often met Gordy Schmidt at Lake Rebecca in Hastings on one of his many long walks.
I would fish and he would take in some sun along the trails and at the park. 

I learned of his tremendous craftsmanship with wood and also observed his love of gardening.  

Together with Doug, his gardening buddy at the Vets home, the two had beautiful showcases every year. Gordy specialized in flowers and Doug was the vegetable expert.  I worked with them to get soil samples sent to the U of M and watched their artistry through my window in Building 25 just above the Vermillion River.

Another fond memory is Gordy's keen eye for dangerous tree limbs along the trails and holes in the ground in the parks that could break an ankle.  Together we would take photos of the dangerous areas and send an email to my contacts at the city parks department and they would come out to cut the limbs and fill the holes.  With 25 miles of trails to maintain, they appreciated Gordy's keen eye.

We miss Gordy and his artistry in several venues. 

World War II and Korean War Veteran Bob 

I first met Bob on the shore of Lake Rebecca near Hastings, Minnesota in 2006.   He was perched on a small stool catching sunfish which I later learned he carefully cleaned on a glass-topped coffee table in his garage. He then cooked them for his lady friend Myra, pictured at the lower left in the above photo with Bob.   

I fished with Bob for the next 5 years, until his health became too frail to make it to the lake he had frequented for well over 70 years. 

I learned Bob was a decorated combat veteran of WW II and the Korean War, who had been shot down twice over Europe flying B-17's. Bob and I often discussed our combat experiences,  he in his era and I in mine.  He was a big help in my recovery from PTSD.

After his service abroad,  Bob returned to Hastings where he was a fixture at the Hastings Country Club, managing the facility for many years while also establishing a musical instrument retail store and a couple restaurants in the area.

I brought some Veteran friends who were golf enthusiasts by Bob's garage at his invitation, where he would wander down a line of equipment he had accumulated over the years, filling up a bag with clubs, balls and other tools for the links, then hand it to each vet as a gift or for a pittance if the man felt he had to pay. 

Bob was a self-effacing man who liked a laugh and a good story;  he had many to tell, with his roles in business and social settings as well as foreign travel and wars.   I met several local, prominent people through Bob, which contributed to my feel for the community.  I admired his easy, friendly demeanor with everyone. 

Bob often asked me to accompany he and Myra to the local casino for dinner.  I noted he had the same look on his face when he was playing the slots as he did when he was fishing - always waiting for that big one. I met Bob's two adopted daughters, and many of his extended family in the area and in Canada. His daughter, Jean is pictured with Bob at the lower right in the above photo.

Bob Niederkorn was a genuine, generous individual who served his country, his community and his friends from his heart. 

We miss him at Lake Rebecca,

Three Ways Veteran Business Owners Can Access Capital

 

"FEDERAL TIMES" By Terry Hill

"Veteran-owned businesses are a vital part of the U.S. economy, making up approximately 6% of all businesses, employing nearly four million workers and contributing over $177 billion in annual payroll to the U.S. economy. Despite this impact, many face unique business challenges, particularly when it comes to accessing the capital needed to grow.

For veterans looking to start or grow a business, the right capital setup is key to unlocking your business’s full potential. Here are a few tips to ensure you’re setting yourself up for success."

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"Time spent in service significantly delays the ability to build credit, network business connections and tap into available resources—all of which are imperative for gaining a foothold in the business world.

For veterans looking to start or grow a business, the right capital setup is key to unlocking your business’s full potential. Here are a few tips to ensure you’re setting yourself up for success:

Build and Bolster Your Business Plan

A robust business plan is essential to securing capital with banks or potential investors, whether it’s for seed funding or a late-stage capital raise. This plan serves as a roadmap to assess your business and helps bankers and investors determine if they want to form a relationship with your company.

Your plan should include defined business objectives, target markets and customers, and plans for how you will promote your product or service. From there, you’ll be able to provide estimates for how much capital is needed to execute against these objectives.

Establish Credit to Become Bankable

Your credit score is often the first metric lenders look at to evaluate you as a potential candidate for capital. If you’re an established business, they will review your business credit. But if you’re just starting out, lenders will turn to your personal credit score.

Building and maintaining a good credit score is difficult for many Americans, but for veterans—especially those who have moved frequently or spent time overseas—establishing a strong credit history to support their score can be a particular challenge. This requires a track record of consistent payment history on credit cards and personal loans, such as student loans and mortgage payments. However, during active duty, service members may not have had opportunities to build that track record.

For those who don’t have a strong credit track record, there are myriad ways to improve your credit, such as paying rent and utility bills on time and, if applicable, opening up a first credit card to begin building a strong repayment history. If you have outstanding debt, focus on settling accounts in collections and paying down high-interest debts. Also be sure to review your credit report for errors prior to walking into a meeting with a potential investor.

If you have personal credit, but are looking to build business credit, consider applying for a business credit card. Using it for smaller bills each month, and then paying it off in full before payment is due, can help to increase your score. Doing business with different vendors who work with business credit reporting agencies can also help this process. As you buy supplies and materials from vendors, those purchases and payments get reported to the business credit agencies and, in turn, get tacked on to your credit history.

While trying to build or improve your credit score may feel like an uphill battle, it’s a critical first piece in showing that you are bankable, and that you’re someone that both banks and investors will be excited to work with.

Identify Resources to Help Meet Your Goal

Once you’ve completed a business plan and begun to build – or improve – your credit, it’s time to look to your network. Whether you’re just finding your footing in the business world or looking to take an established business to the next level, having a network of experts you can tap into for guidance is invaluable.

There are a number of education and networking programs specifically designed for veterans and veteran-owned businesses that serve as a great starting point, including: Syracuse University, and Veterans Business Outreach Center. These organizations are focused on the military entrepreneurial community and provide incredible programming, resources, mentorship and guidance to help veterans overcome key challenges.

In addition to seeking out specific educational and networking programs, veteran-owned businesses should strongly consider getting certified through the  System For Award Management (SAM) Site, as it helps you become eligible for federal contracts set aside specifically for retired military. It also enables access to VA-provided resources, such as business training, mentoring, and networking, all of which are essential for businesses as they become more established.

Accessing new capital can feel daunting, especially when you’re just getting started. But with proper planning and the right resources on your side, the likelihood of success is much greater. Time in the service has taught every veteran vital lessons.Never lose sight of the fact that your discipline, passion, resilience and resourcefulness is your company’s biggest asset. If you stay true to who you are and are thoughtful in your approach, the sky is the limit."

Three ways veteran business owners can access capital

ABOUT THE AUTHOR:

Terry Hill is Managing Director, Co-head of Veteran Initiatives, at JPMorgan Chase Commercial Banking.

“Forever GI Bill” - Things You Should Know

 

"MILITARY TIMES" By Natalie Gross

"[An updated law brought] significant changes to education benefits for service members, veterans and their families.

The legislation known as the “Forever GI Bill” garnered strong bipartisan support in Congress, passing unanimously in both the House and Senate Here are things you should know about the new GI Bill benefits.

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1. There’s no longer an expiration date.
Previously, veterans had to use their Post-9/11 GI Bill within 15 years of their last 90-day period of active-duty service.  This portion of the law [applies] to anyone who left the military after January 1, 2013. It [also applies] to spouses who are receiving education benefits through the Marine Gunnery Sergeant John David Fry Scholarship for family members of service members who have been killed in the line of duty since Sept. 10, 2001.

2. Purple Heart recipients will get more benefits.

The new GI Bill allows anyone who has received a Purple Heart on or after Sept. 11, 2001 to receive 100 percent of the benefits offered under the Post-9/11 GI Bill, which includes coverage of tuition costs at a public school’s in-state rate for 36 months and stipends for textbooks and housing.

Previously, Purple Heart recipients were beholden to the same time-in-service qualifications for the GI Bill as other service members. This meant that Purple Heart recipients without a service-connected disability who did not reach 36 months of service were only eligible for a percentage of the benefits and not the full amount.

Aleks Morosky, national legislative director for Military Order of the Purple Heart, said there have been 52,598 Purple Heart recipients who were wounded in action during post-9/11 conflicts, though it’s unclear how many would immediately benefit from this provision. An estimated 660 Purple Heart recipients each year over the next 10 years will be able to take advantage of the increased benefits.

“We think that anybody who has shed blood for this country has met the service requirement by virtue of that fact,” Morosky said. “Everybody sacrifices, everybody puts themselves in harm’s way, but Purple Heart recipients are certainly among the service members who have sacrificed the most.”
This provision [went] into effect in August 2018.

3. More people are eligible for Yellow Ribbon.

The Yellow Ribbon Program is a voluntary agreement between schools and the U.S. Department of Veterans Affairs to split school costs not covered by the GI Bill, reducing or eliminating the amount students must pay themselves.

The Forever GI Bill [expands] eligibility for this program to surviving spouses or children of service members and active-duty service members.

Previously, only veterans eligible for GI Bill benefits at the 100 percent level or their dependents using transferred benefits were eligible for Yellow Ribbon.

4. There’s some extra money — and time — for STEM degrees.

Some college degrees in science, technology, engineering and math fields take longer than four years to complete, which is why the new law authorizes an additional school year of GI Bill funds on a first-come, first-serve basis.

Scholarships of up to $30,000 [are] available for eligible GI Bill users. Only veterans or surviving family members of deceased service members are eligible for this scholarship — not dependents using transferred benefits.

5. Vets hurt by school shutdowns will get benefits back.

A provision in the new GI Bill  restores benefits to victims of school closures has been a long-time coming for the staff at Student Veterans of America.“

We’ve been getting calls for several years now, beginning with the collapse of Corinthian (Colleges), from student veterans whose lives were put on hold,” said Will Hubbard, vice president of government affairs for the nonprofit, which has more than 500,000 student members. “Every day we wasted until it passed was another day that they had to wait.”

This provision will retroactively apply to GI Bill users whose schools have abruptly closed since January 2015, for credits earned at the shuttered institutions that did not transfer to new schools. This will include the thousands of veteran students who were attending the national for-profit chains Corinthian Colleges and ITT Technical Institute when they closed in 2015 and 2016, respectively. It would also provide a semester’s worth of reimbursement for GI Bill users affected by future school closures, as well as up to four months of a housing stipend.

6. The VA will measure eligibility for benefits differently.

This bill changes the way the VA uses time in service to calculate eligibility.

Previously, service members with at least 90 days but less than six months of active-duty service would be eligible for up to 40 percent of the full GI Bill benefits. Under new regulations, the same 90-days-to-six-month window is equal to 50 percent of benefits. Service members with at least six months and less than 18 months of service will be eligible for 60 percent of benefits.

This change will tend to benefit reservists more due to the nature of their service, according to a spokeswoman for the Senate Committee on Veterans’ Affairs.

7. Reservists can count more of their service toward eligibility.

Members of the National Guard and Reserve [are] able to count time spent receiving medical care or recovering from injuries received while on active duty toward their GI Bill eligibility. This will apply to all who have been activated since 9/11.The Forever GI Bill also allows individuals who lost their Reserve Educational Assistance Program when the program ended in 2015 to credit their previous service toward their eligibility for the Post-9/11 GI Bill.

8. Housing stipends will decrease slightly.

The government [pays] for the expansions represented in the Forever GI Bill through a 1 percent decrease in housing stipends over five years. This brings veterans’ housing stipends on par with what active-duty service members receive at the E-5 with dependents rate. (Veterans on the GI Bill [brought] a slightly higher housing allowance rate than active-duty E-5s with dependents.) This change [took] effect on Jan. 1, 2018 and [applies] to service members who enroll in GI Bill benefits after that date.

On a month-to-month basis, they would never see less money,” said SVA’s Hubbard, explaining that the 1 percent reduction will come off of the total the VA would have spent over five years.

Starting in August 2018, housing stipends previously calculated based on the ZIP code of a student’s school [are] based on where a student takes the most classes.

Also [since] August 2018, reservists continue to receive their monthly housing allowance under the GI Bill on a prorated rate for any month during which they are activated, preventing them from losing a whole month’s worth of funds.

9. Benefits can get transferred after death.

A provision of the new GI Bill offers more flexibility with the transfer and distribution of benefits in case of death.

If a dependent who received transferred benefits dies before using all of the benefits, this provision gives the service member or veteran the ability to transfer remaining benefits to another dependent. This [went]] into effect August 2018 and [applies] to all deaths since 2009.This provision also gives dependents of deceased service members the ability to make changes to their deceased loved one’s transferred benefits.

Ashlynne Haycock, senior coordinator of education support services for the nonprofit Tragedy Assistance Program for Survivors, explains that currently, only a service member has the authority to make changes to the benefits they’d like to transfer. So, if a service member dies after transferring 35 months of benefits to one child and one month of benefits to another, for example, the family would not be able to make future changes to the GI Bill’s distribution among that service member’s dependents.

10. Surviving family members will get more money, but less time.

Besides access to Yellow Ribbon, spouses and children of service members who died in the line of duty on or after 9/11 will also see their monthly education stipend from the Survivors’ and Dependents’ Educational Assistance Program increase by $200.There’s a downside, however. Though the same program has previously provided 45 months of education benefits, [that decreased] to 36 months in August 2018 to bring it in line with the provisions of the GI Bill.

11. School certifying officials must be trained.

Individuals who certify veteran student enrollment at schools with more than 20 veteran students will be required to undergo training. Previously, training was not mandatory.

"Forever G.I. Bill" Is Now Law

Time To Retire The Phrase ‘Military Industrial Complex’

 

“RESPONSIBLE STATECRAFT” By Dan Grazier

“President Dwight Eisenhower coined this immortal phrase during his January 17, 1961 farewell address to warn Americans. “Sorry Ike: it’s a bit too dated and no longer the right moniker to describe what we’re up against.

The Pentagon, Congress, the defense industry, think tanks, lobbyists, and industry-sponsored media outlets are all very real.  When combined, they make up what is better termed the “National Security Establishment,” which Americans see in action all the time.”

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“It is time to retire the phrase “military-industrial complex.”

President Dwight Eisenhower coined this immortal phrase during his January 17, 1961 farewell address to warn Americans against the “acquisition of unwarranted influence” by the conjunction of “an immense military establishment and a large arms industry.”

As a five-star general, Ike knew, perhaps better than anyone, the self-serving and mutually beneficial relationship between the defense industry and the military. But he neglected to mention Congress’s role in the arrangement, nor could he necessarily have foreseen the ways in which corporate interests would intertwine themselves with the various bureaucracies that keep the Pentagon’s coffers flowing.

While the phrase “military-industrial-congressional-information complex” would be more accurate, it doesn’t exactly roll off the tongue. And like Eisenhower’s snappier appellation, it still suggests an element of conspiracy. But, of course, none of this is theoretical.

The Pentagon, Congress, the defense industry, think tanks, lobbyists, and industry-sponsored media outlets are all very real. When combined, they make up what is better termed the “National Security Establishment,” which Americans see in action all the time.

We see it when a retired general goes on television to explain exactly how the Ukrainian army can defeat the Russians — but only if Congress passes the latest billion-dollar aid package. No mention is made of the rather relevant fact that the general’s think tank is funded by defense contractors who stand to benefit from the aid package he is calling for.

We see it when another general retires from his post as the head of his service branch and turns up six months later on the board of a major defense contractor. Coincidentally, it’s the same defense contractor that celebrated a year earlier when that general announced the company had won the $21.4 billion contract to build a fleet of bombers.

We see it when a senior member of the Senate Armed Services Committee proposes the U.S. spend 5% of the gross domestic product every year on the military — a $55 billion increase to the current Pentagon budget. Predictably, he fails to mention that the majority of this money would go to defense contracts awarded to the same organizations that have given him more than $530,000 in campaign money since 2019. He fails to acknowledge how flush Pentagon budgets over the past 25 years created the sorry state of the military today.

We even see it when we least expect to, as when the country’s largest defense contractor runs advertisements during the Oscars and posts an interactive map on the company’s website touting the economic benefits of a weapon program. The company wants everyone to know how many jobs could be lost if Congress votes to disrupt the program in any way.

The American people also see the impact of these actions by the National Security Establishment.

We see tens of billions spent on a fighter jet that can only be reliably ready for combat a third of the time. We also see more than $60 billion spent designing and building warships that were so flawed Navy officials apparently can’t get rid of them fast enough. The Navy decommissioned one of these ships less than 5 years after its commissioning ceremony, roughly two decades ahead of the ship’s planned lifespan.

Starting in 2003, the Army spent at least $8 billion, and some sources say the better part of $20 billion, developing the Future Combat System, a family of armored vehicles to replace Cold War-era tanks, personnel carriers, and artillery vehicles. The Pentagon then canceled the program in 2009 with little to show for the effort and expense.

There are plenty of other examples of failed acquisition efforts from the past 25 years which partially explain why annual defense spending is now a whopping 48% higher than it was in 2000. Compounding these efforts is the Pentagon’s reliance on contractors to perform many roles once performed by uniformed service members at a much lower financial rate. The Department of Defense itself analyzed one case where hiring a group of contractors cost 316% more than the government employees tasked with similar work.

In a city where partisanship and political rancor impacts nearly every debate, wasteful and ineffective defense policies are a conspicuous exception. That is because the National Security Establishment is party-agnostic. Military contractors donate money to candidates and lobbyists on both sides of the aisle, those candidates vote for Pentagon budget increases and fund weapons programs long after their failures are widely known, and lobbyists and corporate-sponsored media groups generate public support for those programs.

Without massive structural changes, this pattern is all but certain to continue into future generations. Today’s National Security Establishment has launched several major weapons programs in recent years that, if allowed to continue on their current trajectories, will drive the annual Pentagon budget to truly unprecedented levels.

As programs like the B-21, Constellation-class frigate, Next Generation Air Dominance fighter jet, Columbia-class ballistic missile submarine, several ground vehicle programs, the Sentinel nuclear missile, and myriad space and cyber systems mature and enter full-rate production in the coming decades, the Pentagon budget will expand to cover the costs.

But this doesn’t have to be the case, if Congress actually does its oversight job. Several of these programs are already behind schedule and over budget. Costs for the Sentinel missile program have increased 81% to $140.9 billion from the original $77.7 billion estimate and it will still be several years before the first missile is installed in its silo. Yet, given the massive financial influence, even these egregious failures are all but glossed over, a simple footnote for most, and then prepared for a rubber stamp.

The services and their bureaucracies, the defense industry, members of Congress, and the paid mouthpieces promoting their interests in the media and during lobbying visits all comprise the all-too-real National Security Establishment. Identifying this network is the first step to avoid saddling future generations with the crushing debt associated with unsustainable U.S. military policies today.

While it is long-past time to update the name, Eisenhower’s warning is still more real than ever. Americans must remain vigilant and guard against the self-serving nature of this apparatus that is more intent on lining its own pockets than it is actually keeping Americans and our allies safe.”

Time To Retire The Phrase ‘Military Industrial Complex’

ABOUT THE AUTHOR:

Dan Grazier is a senior fellow and program director at the Stimson Center. He is a former Marine Corps captain who served tours of duty in Iraq and Afghanistan. His assignments in uniform included tours with 2nd Tank Battalion in Camp Lejeune, North Carolina, and 1st Tank Battalion in Twentynine Palms, California.

Your Rights and Obligations Under a Government Contract Stop Work Order

 

During government shutdowns or other circumstances where the government reserves the right to order a cease work, actions must be taken recognizing receipt of the stop work order and the relationship of the order to resumption of effort, funding constraints, contract terminations and associated business risk.

PURPOSE

The purpose of a stop work order is to immediately bring to a halt the effort on a contract and any further performance and related cost against that contract. 

It is usually necessary when unforeseen circumstances necessitate the action, such as the government shutdown or similar exigencies. An example of a clause that appears regularly in most government contracts, reserving the government's rights to stop work, is as follows:

"Stop-Work Order (Aug 1989)

(a) The Contracting Officer may, at any time, by written order to the Contractor, require the Contractor to stop all, or any part, of the work called for by this contract for a period of 90 days after the order is delivered to the Contractor, and for any further period to which the parties may agree. The order shall be specifically identified as a stop-work order issued under this clause. Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within a period of 90 days after a stop-work is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the Contracting Officer shall either—

(1) Cancel the stop-work order; or

(2) Terminate the work covered by the order as provided in the Default, or the Termination for Convenience of the Government, clause of this contract.

(b) If a stop-work order issued under this clause is canceled or the period of the order or any extension thereof expires, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if—

(1) The stop-work order results in an increase in the time required for, or in the Contractor’s cost properly allocable to, the performance of any part of this contract; and

(2) The Contractor asserts its right to the adjustment within 30 days after the end of the period of work stoppage; provided, that, if the Contracting Officer decides the facts justify the action, the Contracting Officer may receive and act upon the claim submitted at any time before final payment under this contract.

(c) If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the Government, the Contracting Officer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement.

(d) If a stop-work order is not canceled and the work covered by the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.

(End of clause) "

ACTIONS

A stop work order is to be taken literally.  Under a stop work order the government makes no guarantees it will take any further deliveries whatsoever, regardless of the contract type. A stop work order means just that.  Stop work and stop incurring cost. 

Upon receipt of a stop work order you have no guarantee of payment for any transaction date-stamped in your accounting system after the date of the stop work order (or the commencement date of a stop work order specified in a Contracting Officer's Letter).

 I suggest clients receiving these orders close the charge numbers applicable until the stop work order is lifted with an order to resume effort and immediately notify any effected suppliers and subcontractors to do the same.

To the degree the government has made progress payments or has any other form of payment invested in the product to date it has ownership rights in the product. If that is the case treat the physical material work-in-process as government owned, store it as such without performing any more effort on it and await further disposition.

To the degree the government has not paid anything on the contract or delivery order they have no ownership rights to the product and you are free to complete it and sell it to another customer (commercial or government) that has not stopped work. If the government recommences the order, quote a new price and delivery from ground zero.

At the bottom line a stop work is blunt and to the point.  Treat it as if you will never hear from this customer again to manage the risk.  

To the degree you do hear from the CO again and he or she has the funding to recommence work, be prepared to submit a proposal for what it will take to start the effort and a realistic delivery schedule to complete it, but do not build any retroactive costs incurred during the stop work period into your pricing and expect to bill them; that may not come to payment fruition. 

CONTRACT TERMINATIONS AND FUNDING CONSTRAINTS

Note that in the above cited clause the government discusses resumption of work and contract terminations as options.

Hypothetically at some future date the government could terminate the  contract without taking delivery and the contractor will then submit a termination proposal for recovery of costs and disruption. 

Contract Terminations

When a stop work order is lifted  the contract or the delivery order is open to negotiation on both price and delivery under the equitable adjustment and changes clauses in the FAR provisions of the contract.

At that time, you should inform the government that you are pleased to resume work, but under revised price and delivery conditions as specified in a proposal for equitable adjustment

You should not resume work until a contract or work order amendment is received granting the price and delivery relief to contract requirements commensurate with negotiation results under your proposal for equitable adjustment.

In short, time is money.

If your contract was adequately funded and remains so when work commences and assuming you negotiate acceptable terms and conditions you can proceed with low risk.  If the funding on the contract is low at the time of recommencement, it is recommended you request additional funding and handle that matter in accordance with the article linked below.

 

Limitation of Funds and Funding Exposure

SUMMARY

Stop work orders are serious matters and require special handling to comply with government direction and to manage risk.  This article has discussed the principal options and equitable adjustment terms and conditions available to you if you undergo a stop work on a government contract.

Continuing effort on a contract after receipt of a stop work is high risk.

Astutely managing your options is a far better approach.