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DTIC ADA560470: Rearming for the Cold War, 1945-1960 (History of Acquisition in the Department of Defense. Volume 1) PDF

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E COLD WAR 1945-19 60 REARMING FOR About the Author THE COLD WAR 1945-1960 In Rearming for the Cold War, the first publication in a multivolume series on the history of the acquisition of major weapon systems by the Department of Defense, author Elliott Converse presents a meticulously researched overview of changes in acquisition policies, organizations, and processes within the United States military establishment during the decade and a half following World War II. Many of the changes that shaped the nature and course of weapons research and development, production, and contracting through the end of the century were instituted between 1945 and 1960; many of the problems that have repeatedly challenged defense policymakers and acquisition professionals also first surfaced during these years. Although a large body of published literature exists on specific aspects of weapons acquisition, primarily studies of individual systems, this study is the first to combine the histories of the Office of the Secretary of Defense (OSD) and the military services Elliott V. Converse III into one account. The volume is organized A retired Air Force colonel with a doctoral chronologically, with individual chapters addressing history from Princeton University, Dr. Converse the roles of OSD, the Army, Navy, and Air Force in was the lead historian on the Defense two distinct periods. The first, roughly coinciding with President Truman's tenure, covers the years from the end Acquisition History Project team. His Air Force of World War II through the end of the Korean War. career included assignments as an air The second spans the two terms of the Eisenhower intelligence officer in Thailand during the presidency from 1953 through early 1961. The volume Vietnam War, a faculty member at the U.S. Air approaches the subject through discussion of the Force Academy and the Air War College, a evolution of acquisition policies, organizations, and processes; the interservice and intraservice political strategic planner on the staff of the Joint Chiefs context of acquisition; the relationship between rapidly of Staff, and commander of the Air Force advancing technology and acquisition; the role of the I 1 isiorical Research Agency. He is the author of defense industry in new weapons development; the Circling the Earth: United States Plans for a origins and growth of a specialized acquisition Postwar Overseas Military Base System, workforce; and acquisition reform. Case studies of individual systems illustrate the various forces 1942-1948 (2005); principal author of The influencing weapons programs. Exclusion of Black Soldiers from the Medal of These instruments of warfare—aircraft, armored Honor in World War II (1997); and editor of vehicles, artillery, guided missiles, naval vessels, and Forging the Sword: Selecting, Educating, and supporting electronic systems—when combined with Training Cadets and Junior Officers in the nuclear warheads, gave the American military unprecedented deterrent and striking power. They were Modern World (1998). also enormously expensive. This study documents the efforts of political and military leaders in the Truman and Eisenhower administrations to overcome intractable political, technological, organizational, and financial challenges to arming the United States military for the Cold War struggle. HISTORY OF ACQUISITION IN THE DEPARTMENT OF DEFENSE Volume I REARMING FOR THE COLD WAR 1945-1960 Elliott V. Converse III Historical Office Office of the Secretary of Defense Washington, D.C. • 2012 Library of Congress Cataloging-in-Publication Data Converse, Elliott Vanveltner. Rearming for the Cold War, 1945-1960 / Elliott V. Converse III. p. cm. — (History of acquisition in the Department of Defense ; v. 1) Includes bibliographical references and index. 1. Weapons systems—United States—History—20th century. 2. United States—Armed Forces—Weapons systems—History—20th century. 3. United States—Armed Forces- Procurement—History—20th century. 4. United States. Dept. of Defense—Procurement- History—20th century. 5. Military research—United States—History—20th century. 6. Cold War. I. United States. Dept. of Defense. Historical Office. II. Title. UF503.C66 2011 355.8'2097309045-dc23 2011034768 HISTORY OF ACQUISITION IN THE DEPARTMENT OF DEFENSE Volume I Editorial Board Glen R. Asner, Series Editor Historical Office Office of the Secretary of Defense Erin R. Mahan, Chief Historian Richard W. Stewart, Chief Historian Historical Office U.S. Army Center of Military History Office of the Secretary of Defense Jeffrey G. Barlow J. Ronald Fox Naval History and Heritage Command Harvard University Alfred Goldberg David A. Hounshell Historical Office Carnegie Mellon University Office of the Secretary of Defense F. M. Scherer Timothy R. Keck Harvard University Air Force Headquarters History Office ^°Uo^A}3u^ Foreword Throughout the second half of the twentieth century, the introduction of new technologies led to remarkable advances in aircraft, missiles, ships, satellites, land vehicles, electronic equipment, and many other weapons and supporting systems employed by the Army, Navy, Air Force, and Marine Corps. At the same time, however, the projects undertaken to develop and produce these systems frequently resulted in large cost overruns and schedule slippages, disrupting budgets and schedules in the Defense Department and in Congress. The term "defense acquisition" has evolved during the past five decades from the terms "procurement," "research and development," and "production." During the same period, the management of defense acquisition has slowly improved, but not without painful periods of recreating and re-experiencing acquisition management problems of the past. It is my belief that the painful periods have resulted to a significant degree from the absence of a comprehensive history of defense acquisition or even a formal record of lessons learned. In the late summer of 2001, the U.S. Army Center of Military History invited me to deliver the keynote address at a symposium to mark the beginning of a multivolume research and writing project to produce a comprehensive history of defense acquisition covering the period 1945 to 2000. The project was endorsed and sponsored by the Under Secretary of Defense for Acquisition, Technology, and Logistics, Dr. Jacques Gansler. The Chief Historian of the Office of the Secretary of Defense headed a Joint Oversight Board that designated the U.S. Army Center of Military History as the project's executive agent. I was pleased to accept the invitation to be part of such a worthwhile effort. In his letter authorizing the study, Under Secretary Gansler pointed out that "during the more than fifty years since the National Security Act of 1947, the Department of Defense acquisition function has experienced great change and received extraordinarily high public visibility and congressional attention. We are missing, however, a comprehensive record of Defense acquisition accomplishments and failures from which we may have an opportunity to learn." The Defense Acquisition History Project objective was to provide a comprehensive history that describes and analyzes the formulation of acquisition ii Foreword policies, the development of acquisition organizations, and the evolution of the acquisition process. This basic history could then be used as a reference for future acquisition decision makers, project managers, and educators describing how the complex problems associated with defense acquisition, including both its successes and failures, were dealt with in the past. The three-day Acquisition History Symposium was scheduled for September 10, 11, and 12, 2001, in McLean, Virginia, near the Pentagon and Washington, D.C. On September 10,h the keynote address and opening-day meetings occurred as scheduled, but the tragedy in New York City, Pennsylvania, and at the Pentagon on the second day, 9/11, brought the symposium to an abrupt end. In the months following the symposium, a team of respected historians under the direction of the U.S. Army Center of Military History's Chief Historian, initially Dr. Jeffrey J. Clarke and later Dr. Richard W. Stewart, began to conduct extensive research and writing for what would become the multivolume study, History of Acquisition in the Department of Defense. The project continues today under the management of the Historical Office of the Office of the Secretary of Defense. I had the honor of serving as senior acquisition advisor to the project. Elliott Converse, the team leader of the acquisition historians, is a retired Air Force colonel with a doctorate in history from Princeton University. His Air Force career included assignments as an intelligence officer with the 8th Tactical Fighter Wing during the Vietnam War, as a faculty member at the Air Force Academy and the Air War College, as a strategic planner with the Joint Chiefs of Staff, and as commander of the Air Force Historical Research Agency. He is the author of several books on military history and was chosen to prepare the first volume of the series, dealing with defense acquisition from 1945 to 1960. It did not take long for those of us associated with the project to be impressed with the masterful skill, care, and dedication Dr. Converse brought to his research and writing for what was to be a volume that set high standards for the project. As work on the Defense Acquisition History Project advanced, six topics or themes were selected to be addressed in varying degrees throughout the volumes. The topics include: • The Evolution of Acquisition Policies, Organizations, and Processes • The Political Context of Acquisition • The Relationship among Technology and Acquisition Policies, Organizations, and Practices • The Origin and Outcomes of Acquisition Reform • The Role of the Private Sector in Defense Acquisition • The Development of the Defense Acquisition Workforce The construction of each acquisition history volume is more narrative than analytical, but includes ample interpretations and a number of conclusions. The volumes are based on extensive primary source materials from the Office Foreword iii of the Secretary of Defense and the military services along with a number of secondary accounts. The Defense Acquisition History Project caps fifty stimulating and enjoyable years of my own research and teaching various aspects of defense acquisition, as well as four years as a naval officer, two years as project manager for the design of the Polaris Program cost planning and control system, two years as deputy assistant secretary of the Air Force, two years as assistant secretary of the Army, and two decades as a professor at the Harvard Business School. It has been an honor and a pleasure for me to work with the Army Center of Military History, the Office of the Secretary of Defense, and the historians participating in this project. J. Ronald Fox Jaime and Josefina Chua Tiampo Professor of Business Administration, Emeritus Harvard Business School Preface This volume is a history of the acquisition of major weapon systems by the United States armed forces from 1945 to 1960, the decade and a half that spanned the Truman and Eisenhower administrations following World War II. These instruments of warfare—aircraft, armored vehicles, artillery, guided missiles, naval vessels, and supporting electronic systems—when combined with nuclear warheads, gave the postwar American military unprecedented deterrent and striking power.1 They were also enormously expensive. A Brookings Institution study estimated that from the end of World War II through the mid- 1990s the United States spent over $5 trillion (including the cost of the wartime atomic bomb project) on the development, production, and deployment of nuclear weapons, and on the systems for delivering and defending against them. Twenty percent ofthat sum was expended between 1945 and I960.2 Although there is a large body of published literature on specific aspects of weapons acquisition, primarily studies of individual systems, no in-depth analysis has yet appeared that combines the histories of the Office of the Secretary of Defense (OSD) and the military services into one account. Such a study is badly needed. World War II was a watershed for acquisition. The postwar defense environment was dramatically different from that existing before the war. So too were the policies, organizations, and processes that governed the acquisition of new weapons. Many of the changes that shaped the nature and course of acquisition through the end of the century were instituted between 1945 and 1960. Additionally, many of the problems that have repeatedly challenged defense policymakers and acquisition professionals since World War II first surfaced during those years. History does not repeat itself exactly; but by revealing long- term trends and the reasons for past choices, it can help illuminate the path forward for those who must grapple with the complex issues surrounding the development, production, and deployment of major weapon systems. The volume is organized chronologically, with individual chapters addressing the roles of OSD, the Army, Navy, and Air Force in two distinct periods. The first, roughly coinciding with President Truman's tenure, covers the years from the end of World War II through the end of the Korean War in vi Preface 1953. The second spans the two terms of the Eisenhower presidency from 1953 through early 1961. The year 1953 marked a natural breakpoint between the two periods. The Korean War had ended. President Eisenhower and his defense team began implementing the "New Look," a policy and strategy based on nuclear weapons, which they believed would provide security and make it possible to reduce military spending. The New Looks stress on nuclear weapons, along with the deployment of the first operational guided missiles and the rapid advances subsequently made in nuclear and missile technology, profoundly influenced acquisition in the services throughout the 1950s and the remainder of the century. Much more attention is paid in this volume—more than double the number of chapters—to the services' roles in acquisition than to OSD's. Comparable studies of later periods will likely reverse that emphasis. Before 1947, the Army and Navy possessed nearly complete independence in acquisition, subject only to the president and Congress. The National Security Act of 1947 created a new defense structure that interposed a civilian secretary of defense between the military departments and the president. In theory, the act gave the secretary of defense authority over acquisition, but, in practice, the services retained much of their autonomy in this arena through the end of the 1950s. Only slowly did OSD seek to exercise more power over acquisition, mostly through its control of the budget. While intervention by OSD could be dramatic (Secretary of Defense Louis A. Johnsons summary cancellation of the Navy's flush-deck carrier United States in 1949 is perhaps the best-known example), other than involvement in the budget cycle, it played no formal, systematic role in the acquisition process. As used in this study, the term "acquisition" encompasses the activities by which the United States obtains weapons and other equipment. The process begins with the identification of a requirement for a system, passes through its research and development, test and evaluation, purchasing and production, to its fielding with operational units and its subsequent modification, sustainment, and eventual disposition.3 Oddly enough the word "acquisition" was rarely used to describe this process for most of the period from 1945 to I960.* During those years, the word usually employed was "logistics."5 Not until the late 1950s and early 1960s did "acquisition" become part of the vocabulary of weapons procurement. As time passed, the term assumed more and more of the umbrella meaning that had originally been associated with the term "logistics." Ironically, by the end of the twentieth century, logistics had taken on a much narrower meaning—generally referring to the support of weapons already fielded. In this volume, "acquisition" will be used in the overarching sense that it currently possesses.

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