Technical skills shortage hurts Pentagon's bottom line.

• Author: Erwin, Sandra I.
• Position: Defense Watch

The trials and tribulations experienced in various Pentagon big-ticket programs in recent years have prompted a thorough self-examination at the Defense Department. At issue is who really is to blame for failures, delays, cost overruns and an overall dearth of innovation.

Defense officials are beginning to recognize that the Pentagon may need to rethink its approach to managing defense programs, so it can become a "smart buyer," better equipped to oversee increasingly complex technologies, and to determine if a potentially innovative technology is worth the financial risk.

It is not unusual to hear defense officials complain that contractors are too focused on their financial bottom lines, rather than on the quality of their products and the needs of the customer. They also blame the industry's rapid consolidation into a handful of conglomerates for a perceived decline in technical innovation.

Many of the problems seen today, for example, in space and information technology programs, may in fact be a byproduct of an ingrained culture of trying to make everything "faster, better and cheaper." But they also can be attributed to a gradual decline in the Defense Department's in-house expertise to manage and oversee highly intricate weapon systems and vast network integration efforts.

Among the staunchest campaigners for boosting in-house technical know-how at the Defense Department is Ronald Sega, the director of defense research and engineering. This past year, he was the driving force behind the so-called "National Defense Education Act," to encourage U.S.-born students to seek advanced engineering degrees.

The red flags that Sega is raising about a looming shortage of technical talent should not be ignored, said retired Adm. Arthur Cebrowski, the Pentagon's director of force transformation. "The long-term viability of our technical skills" is an issue of concern, he told reporters. Navy Secretary Gordon England, who also leads the Defense Department's personnel reform efforts, lamented that there will be a woeful shortage of engineers in coming years. "I'm worried about the U.S. scientific base," he said. Meanwhile, the cost of employing technical talent to work on Pentagon programs is skyrocketing, according to recent industry studies. While Pentagon contracts generally allow for a 3.5 percent manual inflation for salaries, the compensation for aeronautical and electrical engineers with security clearances is soaring by 10 to 15 percent...