Wednesday, September 30, 2009

Defense Spending

21% of the federal budget for fiscal year 2009 is appropriated for defense spending. The budget is eight time larger than the next largest military, the People's Republic of China. Most of the money does not go to the payroll of soldiers, but to new technologies. The amount spent on planes, bombs, and tanks is astronomical.

Even in this economic climate, the military is still spending away. One of the largest contracts to come is one for new tanker airplanes. The military is currently using relics form the 1960s. This contract was supposed to have been tendered out years ago, but the process stalled twice. The first time, a lease deal with Boeing was botched due to corruption. The second time, European manufacturer EADS won, but the Government Accountability Office (GAO), canceled the contract. The DoD is trying again. This article is about how the Air Force is going to direct the new round of bidding.


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