Pentagon gambles on savings

Wednesday - 2/23/2011, 8:40am EST

The Defense Department is hoping for big savings over the next five years, but it's not counting on them. Acquisition Chief Ashton Carter tells Defense News, the department has been conservative in assuming how much money it will save by squeezing contractors. In their 2012 budget request, Carter said the Pentagon's planners built in only a portion of savings they are hoping for. Under the best possible outcome, DOD agencies and the armed services will find $178 billion in savings over the next five years. The plan is to put $100 billion of it back into weapons procurement.

This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.