I noticed this relevant article not long ago:

http://articles.chicagotribune.com/2...automatic-cuts

Key quote:

[retired Marine Corps Major General Arnold] Punaro said the cost of the Defense Department's "massive and inefficient overhead," at $218 billion a year, was greater than the economy of the entire state of Israel.

"If you just look at the Office of the Secretary of Defense, the Joint Chiefs of Staff, the combatant commands and the defense agencies ... there's over 250,000 people, $116 billion a year," he said.

"There's not a trigger-puller in that lot. There's nobody with a sharp bayonet in that group," said Punaro, adding that of the top 12 defense contractors, half were agencies of the Pentagon.
Unfortunately, when budget cuts come around the reaction in Government agencies (not just the military but across the board) is typically not to try to cut the fat, keep the meat, and maintain effectiveness with less resources. The reaction is typically to cut what's visible and vital, in an effort to generate a backlash of protest that will get "their" money back. If you show that you can do the job with less, you'll never get more, and nobody wants to do that.

That needs to stop, across the full spectrum of government.