Engineering Economic Analysis

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Rationing Capital Among

Competing Projects

The Caissons Went Rolling Along

Army commanders like field artillery, and who can blame them? When you're engaged

in ground operations, there's nothing like a 155 mm howitzer to get your point across

in a hurry. The U.S. Army was particularly pleased with the Crusad~r Advanced Field

Artillery System, its newest artillery piece, an automatic-loading,rapid-fire, self-propelled

"big gun" that used modem robotics and digital technology a generation ahead of other

available military systems. It was called the Crusader Advanced Field Artillery System,

and it wasjust whatthe Armyneeded...

Because of its range advantage, the Crusader was able to effec-

tively cover as much territory as four older-style artillery pieces. It

could also hit multiple targets in only one-third as much time, and with

less collateral damage. Not only that, it offered its crew protection

against unconventional attack from nuclear, biological, and chemical

weapons-a crucial consideration in modem warfare. It was even be-

ing produced on time and under budget even while changing the design

in response to changes in Army requirements.

Naturally, Donald Rumsfeld killed it. But the Secretary of

Defense had his reasons.

Despite its advantages, the Crusader also had some significant

drawbacks. For one thing, it was a heavy land vehicle, which limited

the ways it could be transported to the battlefield. And while everyone

agreed that it would have been perfect for repelling a Soviet invasion

of West Germany,it was likely to be less suitable for a style of warfare

that deemphasized land forces.

In announcing his plan to terminate the Crusader program over

the objections of army generals, Rumsfeld stated, ''This decision is not

about anyone weapon system, but...about a strategy of warfare-a

strategy that drives the choices that we must make about how best to prepare our total forces

for the future."

The secretary's stated goal was to modernize the U.S. military with leaner, more

futuristic weapons that could fight "asymmetrical" wars against terrorist organizations and

"rogue" states. While the argumentson how best to achievethat goal continued, Rumsfeld's

statements were taken to favor air-mobile forces.

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