Gates expected to use new clout to scale back Pentagon weapons plans

With the announcement by President-elect Barack Obama last week that Gates will remain in his job in the new administration, the Defense chief has been given broad new power to reshape how the Pentagon selects, designs and builds new weapons systems.

The decision to keep Gates could spell the end of the Army's $160-billion Future Combat Systems program and dim Air Force hopes for large numbers of new high-tech F-22 fighter jets. At the same time, smaller projects -- perhaps blimps or light planes useful for ongoing conflicts -- are likely to find new support.

"It is going to be more of a Wal-Mart approach than a Gucci approach," a senior Pentagon official said.

Gates explained his decision to remain at the Pentagon last week by citing acquisition reform and military modernization as crucial challenges.

Pentagon officials, meanwhile, are bracing to see how Gates translates his words into action. Many officials believe that, under President Bush, Gates "punted" on key decisions such as the competition to build a new refueling tanker and whether to halt production of the F-22.

"Now he is going to be the recipient of those punts, and he won't be calling a fair catch," said Geoff Morrell, Pentagon press secretary. "He is prepared to deal with them head-on."

The Pentagon's proposed budget for 2010 will be sent to lawmakers in February, but it is unlikely to reflect dramatic shifts in priorities because it is being prepared under Bush. But in coming months, officials will begin making the more difficult spending choices, in part because of the new administration and in part because of a shrinking pool of money.

"A combination of budget shortfalls and the demands of fighting two wars will force very hard choices on the services and the Pentagon," a senior Defense official said. "Choices that might have been finessed in the past can no longer be avoided."

The official, like several others interviewed for this article, spoke on the condition of anonymity because decisions on spending and weapons programs have not yet been made.

In Obama's administration, Gates will face two primary issues: how the Pentagon buys weapons and which weapons it chooses to buy. Gates has been a critic of both.