Mary Mobley
Bombing low-tech terrorists should barely dent U.S. munitions—or so one would think.

But in just nine months, a single aircraft carrier strike group launched over 770 munitions at the Houthis, including over 155 SM-series missiles—almost as many as the U.S. produces in a year.

This example serves a broader point: today, U.S. defense production capacity is woefully inadequate.

This becomes even more painfully evident when considered from a historical perspective. From 1942 to 1945, during the height of World War II, the U.S. produced a stunning 300,000 planes. Today, our defense industrial base (DIB) could produce a maximum of about 150 F-35s a year—and that number shows no signs of increasing any time soon.

In part, one can attribute this to increased complexity in military technology. After all, F-35s employ far more advanced components than did the P-38s of World War II.

 The U.S. Navy Is Running Dangerously Low on Munitions

But that isn’t the whole story. Rather, the DIB’s failings are, in large part, attributable to poor policies and processes that overregulate, create unnecessary complexities, and, as a whole, discourage long-term investment and innovation.

Consider the current contracting structure used with DIB manufacturers. Currently, most operate on a cost-plus system, in which the government both reimburses the contractor for all expenses incurred and pays an additional set amount. Under this system, contractors lack incentive to innovate or improve efficiency in production; after all, the government (and, by extension, the taxpayer) will cover their costs.

Consider also the complex processes involved in acquiring, navigating, and fulfilling a government contract.

Today, because of bureaucratic barriers and compliance costs, the DIB has been whittled down to just eight major defense producers, and new producers struggle to enter the market. To gain a government contract, prospective manufacturers must navigate through permitting processes involving more than a dozen federal agencies—to say nothing of the state agencies involved.  » Read More
https://www.heritage.org/defense/commentary/how-america-can-quickly-fix-its-dangerous-munitions-shortfall