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Wednesday, June 11, 2025

The Military is not a Business

ComNavOps continues to see examples of the military-as-as-business mindset and this is horribly wrong.  The military is not a business.  It’s not subject to business case studies.  Because it’s not a business, there are [many] times when it will be run inefficiently and that must be accepted.  For example, a business study of ship manning would point to the minimum number of sailors necessary to operate the ship.  Combat, however, demands excess crew for damage control, casualties, etc.  Inefficient but necessary.
 
It seems that the higher up the officer, the more likely they are to approach the military as a business case.  I guess this is because so many officers pursue degrees in business related studies.  By the time an officer gets to flag rank, they’re damn near accountants instead of professional warriors!
 
The military is a combat case, not a business case.  Understand it.  Accept it.  Embrace it.
 
Here’s yet another example.  This one is from a retired admiral, VAdm (Ret.) Jeff Trussler, arguing for restructuring the submarine Navy as a service provider.
 
Note:  The phrase ‘as a service’ refers to a business model where a product or service is offered on a subscription basis rather than being owned outright by the customer.
 
He points out, correctly but with zero understanding of the real issue, that the submarine fleet is overworked.
 
The U.S. submarine industrial base that builds and sustains our existing fleet is not keeping pace with operational demands. Combatant Commanders’ requests for submarine capability in theater go unfulfilled.[1]

He then sets out to offer a business solution instead of recognizing the real problem is the Combatant Commander’s incessant and unjustified requests for submarines when, in reality, the submarines need to be undergoing maintenance and intensive combat training not answering useless requests from the Combatant Commanders so that they can increase the public perception of the importance of their little fiefdom.
 
Trussler suggests a ‘service’ model for submarines.
 
The “as-a-service” model—already proven in air and space—could offer a solution by using conventionally powered submarines to improve the readiness, lethality, and availability of our fast-attack SSN fleet. The goal is not to replace nuclear-powered SSNs but to ensure they remain focused on their most critical missions while using diesel-electric submarines for two key roles:
 
Providing platforms for research, development, test, and evaluation (RDT&E) of new undersea technologies. This would reduce the risk and cost of fielding new capabilities by thoroughly testing their performance and tactical applicability before pulling an SSN offline for months of installation, testing at sea, and removal.
 
Expanding training opportunities. U.S.-trained civilian crews operating conventionally powered submarines could act as adversary forces in exercises, helping undersea, surface, and air forces refine their anti-submarine warfare (ASW) skills. These platforms could also support personnel training and qualification pipelines, ensuring crews receive adequate at-sea experience before deploying on SSNs.[1]

And, of course, he makes the usual bogus claim that this will free up nuclear subs for more important tasks.
 
… by freeing SSNs for high-end missions.[1]

We’ve already debunked this mythical claim (see, “Free Up Ships for More Important Duties”).
 
He then goes on to make a cost comparison claim (without any reference or link and the claim is highly suspect).
 
According to Congressional Budget Office (CBO) estimates, operating a Virginia-class SSN costs approximately $1.6 million per operational day. In contrast, a conventionally powered diesel-electric submarine can operate at a significantly lower daily cost—approximately 40% less than an SSN.[1]

He also proposes operating these non-nuclear subs with civilian crews.
 
By offloading lower-risk missions to commercially operated submarines with Navy-trained civilian crews, uniformed personnel can stay focused on high-end warfighting while maintaining operational proficiency.[1]

 
Discussion
 
There are several questionable aspects to this entire concept of submarines as a service.
 
For starters, no references are provided for any of the claims made in the article which makes verification and understanding of the claims difficult or impossible.  As an example, the claimed operating cost for a Virginia class submarine of $1.6M per day seems unbelievable under any reasonable assumptions.  Nuclear subs have no daily fuel costs so that pretty much leaves the crew salaries as the major operating cost.  Salaries for a crew of 135 would be something on the order of $55,000 per day.  Food would be, what, several hundred dollars a day?  So, where does the rest of the $1.6M per day come from?  My guess would be that someone is piling occasional maintenance and overhaul/refit costs onto the operating cost and perhaps other not-really-operational costs like nuclear fuel/reactor disposal costs, base facility costs, etc.  Without an itemized breakdown, I have no idea but $1.6M seems ridiculous.  This is one of those cases where you can make the number anything you want by manipulating what you choose to include or exclude in the category of operating costs.
 
Another example of unsubstantiated claims is,
 
… improve the readiness, lethality, and availability of our fast-attack SSN fleet.[1]

There is absolutely no documentation or logic to support the idea that operating a few non-nuclear subs will increase fleet readiness, improve lethality, or increase SSN availability.  Logic would suggest there is no relationship, at all, between a few non-nuclear subs and the SSN fleet.
 
Civilian submarine crews are a suspect idea.  How do we handle secrecy and security with civilians?  We don’t even share our submarine technology with our military allies so it’s hard to imagine sharing it with a civilian crew regardless of how many non-disclosure agreements you make them sign.
 
How does the chain of command work with civilians?
 
The entire premise that non-nuclear subs would free up SSNs for more important tasks is completely bogus.  Aside from having previously demonstrated that there are no ‘more important’ tasks sitting around for lack of a sub, the harsh reality is that we have more than enough subs already.  Heck, we’ve got a dozen or more subs sitting idle, pierside, just waiting for their turn at maintenance.  As an example, the Los Angeles class submarine, USS Boise, has been waiting, idle, for over eight years for maintenance.  If we think we need more subs, the solution is to our idled fleet back in service.
 
Another fallacy is that non-nuclear subs can be used to test equipment and develop tactics for nuclear subs.  They’re two different beasts.  They operate differently.  They have different noise levels, different speeds, different endurance, different dive depths, different sizes, different maneuverability, and so on.  Sure, if you want to test a new coffee maker, a non-nuclear sub is fine but if you want to test, say, a new sonar, you need the platform it will actually be installed on to get realistic and applicable results.  We already do far too much simulation testing and we’ve seen the flaws in that when we sent weapons to Ukraine and most failed or had significant flaws.
 
Having said all that, there’s nothing wrong with buying a foreign non-nuclear sub for adversary training but to embark on an entire new type of submarine because Combatant Commanders whine is stupidity on a plate.
 
We need to stop approaching the military as a business case and start viewing it as the often intentionally inefficient warfighting organization it is.
 
 
Reporting for Duty!



 
_______________________________
 
[1]Naval News website, “Submarines “As-a-Service” Will Get More Players on the Field Today”, VAdm (Ret.) Jeff Trussler, 7-Jun-2025,
https://www.navalnews.com/naval-news/2025/06/submarines-as-a-service-will-get-more-players-on-the-field-today/

14 comments:

  1. I don't understand whatever point you were trying to make regarding operating costs. No business aspect there? I think I agree. Excepting finite budgets are constraints. But even so, opcosts are opcosts and I likely agree with your intended point whatever it was or should have been. .

    Civilian staffing? You're dead on. Stupid stupid idea. Hell, we can't even make our Merchant Marine work (Congress' fault but USN hates them too; cf JKONRAD).

    Procurement? Not addressed. And THAT'S your primary blindspot regarding 'business.'

    Running shipyards for maintenance and construction is absolutely a Business Issue. Which is driven by pure politics. Capital (things that cost money expended/accounted for/taxed over multiple years) gets jerked around by Congress annually. Even declarations regarding buying 'total X units' are reneged on regularly; almost annually. How can any manufacturer or MRO company plan for that?

    Forget Lockheed and Northrup. How do their sub-contractors plan costs over multiple years? This is why everything DOD buys is gold-plated. Because the customer is capricious.

    It's the fault of Congress. Business (approaches) DO have a place in the military. A place in certain areas; not the main driver overall.

    The fault lies not in our stars but our procurement practices. Procurement, including shipyards for construction/maintenance require stability which can only be. provided by a business-type approach.

    Because, currently, there's no certainty but lots and lots of risk.

    And Congress will never ever come around.

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    Replies
    1. "I don't understand whatever point you were trying to make"

      You pretty much grasped the entire post. Perhaps the part I didn't make clear was not that business practices have no place in the military but that they cannot be the primary driver of decisions. Once a combat-driven decision has been made then, sure, apply some basic business practices to help implement the decision. You noted this, yourself, in your comment so well done.

      "How do their sub-contractors plan costs"

      An excellent reminder that the military's inability to hold to a plan/contract impacts not just the main players but many subcontractors.

      "Congress"

      Congress certainly bears a large share of blame but they are not, generally, the ones making combat-level decisions. They simply fund those decisions. I fault Congress for failing to exercise rigorous oversight. However, it is the military making the decisions about what to buy, what specs to establish, how many to buy, etc. It is the military that changes their five year plan every year, jerks quantities around in mid-contract, swamps industry with Change Orders, etc. Uniformed leadership is the main problem, not Congress.

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  2. I'm reacting to this:

    "Combatant Commander’s incessant and unjustified requests for submarines when, in reality, the submarines need to be undergoing maintenance and intensive combat training not answering useless requests from the Combatant Commanders so that they can increase the public perception of the importance of their little fiefdom."

    Do we think therefore we have enough submarines to fulfill whatever combat operations we are planning for? Or should someone else be requesting submarine operations? Or, am I missing the point?

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    1. "Do we think therefore we have enough submarines"

      That depends on what our wartime strategy is. A simple, stand off blockade is vastly different than aggressively entering the first island chain, for example. Without knowing what the strategy is, no one can answer whether we have enough subs.

      That said, we have 40 some subs that would be concentrated in the first island chain region, a relatively small area in comparison to the entire Pacific. That would seem sufficient for most operations.

      I get the feeling you're asking something else than what I answered so feel free to try again.

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    2. You're answering mostly my first question - with an example which is fine. I guess that's part of a fundamental question as to how we know how many subs we should have in the fleet.

      My second question though is who should, and how, are the decisions to request a sub being made now - and is there a better way? There must be some context to say I need 5 subs in my area of responsibility, or 10, or more or less.

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    3. The Combatant Commanders (CoCom) request forces from the services as they feel are needed to meet missions and responsibilities in their area. The Services do NOT allocate forces on their own but in response to CoCom requests. It is important to note that the CoCom are not responsible for maintenance, procurement, refits, overhauls, etc. The individual services are. Thus, the CoCom 'consumes' forces without regard to the impact their use has on the state of the services ... a very bad situation. It would be like you being able to commandeer your neighbor's car anytime you want it, free and clear, and he has no choice but to give it to you.

      The CoComs do not report to the services from whom they get their forces. They report only to SecDef/President. Again, the CoComs are free of any ramifications for the use (or misuse) of the forces they request.

      "who should"

      Well, that's a matter of debate. The system we have now grew out of the fixation on jointness and it is, perhaps, the worst possible solution. The services most definitely need a say in how/when/where their forces are consumed but they need to be guided by a higher authority - one would assume the Joint Chiefs would be responsible for that but such is not the case, at least not directly.

      The CoComs must request budgets from Congress so it doesn't take much imagination to see that the more forces a CoCom can claim to have under their control, the more funding they can request from Congress. Thus, there is no incentive to minimize requests for forces and every incentive to maximize requests.

      The CoComs are running our forces ragged on highly questionable missions and tasks. We need a new system, one in which the consumer of the force bears at least some responsibility for the condition, maintenance, procurement, etc. of the force.

      Delete
  3. The 'Navy trained civilians' running a submarine reminds me of a couple of European countries in the 1970s that let their armies be unionized. It had disastrous results that wouldn't surprise anyone who isn't a pie-in-the-sky dreamer

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    Replies
    1. We seem unable to train our active duty crews not to run into giant merchant ships. Do we really want Navy trained civilians running submarines? On the other hand, maybe civilians would do it better?

      Delete
  4. Anyone remember Voyage to the Bottom of the Sea and the submarine Seaview?

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    Replies
    1. My dad, being in submarines from early '44 til '64, had some grumble comments about it, but... he dud think having windows would've been kinda neat lol...

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    2. As I understood it, the crew was not Navy but some sort of semi-civilian group. Adm. Nelson's connection to the Navy was also mysterious. If I recall, he received a promotion (from the Navy?) and sort of obeyed orders and went on missions ... when he felt like it.

      Regardless, great show for the times.

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    3. "had some grumble comments"

      Oh, they took liberties with science and reality, without a doubt! But, it was fun!

      Delete
  5. Just another opinionJune 14, 2025 at 3:49 AM

    Even a business should allow some “inefficiency” for the sake of redundancy, retention, etc.

    Very lean inventories can be highly profitable until there is a supply chain disruption. It may be very profitable short term to suppress wages and keep benefits cheap, but in strong labor markets you may find much of your better talent slipping away. Maybe cutting a few experienced old hands would save some dollars when business is slow, but when orders return you may struggle to fulfill them with new and inexperienced employees. Skimping on customer service and making it hard for customers to end services or return products can boost profits in the short term, but long term it creates a substantially negative impression of your business and makes it harder to succeed it the future.

    How much more so the military, when profit isn’t even a consideration? Cost matters, but must be considered with a long term perspective.

    Cutting your ship or aircraft orders might save money today, but dampen the industrial base you depend on for future weapon systems and leave you with insufficient inventory in the future. Ordering a large lot of ships all at once may make the price per ship look better today, but maybe build just one first and see if it lives up to the hype. If it does, great, now you can order twenty of them. Buying only 200 missiles a year in peacetime does save money, but what about in a war when you’d want 200 per week? How will you fill your depleted inventory?

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