Let's look first at overhead. About 40% of DOD's budget goes to overhead, but the average for many industries is 25%. The defense contractors themselves chew up 35% of total costs in overhead. So, it looks as though better management would lower the overhead costs of DOD by $50 billion or so.
How about cutting the number of civilians working at DOD? There are 800,000, which is about half of all civilian federal employees.
What about reducing the number of overseas bases? We have about 800.
Read this from The Atlantic for more detail.
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