McGrath: DoD trying to establish a "cost culture"

Elizabeth A. McGrath, the Defense Department's deputy chief management officer, said on Tuesday that the DoD is trying to establish a "cost culture" to maximize investments made in defense business opportunities.

The DoD has made cuts to its spending over the past few months due to the U.S. government's budget crisis.

"We're looking at establishing a cost culture within defense," McGrath said. "We're really, really good at putting together a budget. We do it every year without fail. We do budget formulation. We even do execution of that budget. But what we are really focusing our attention on now is the cost of operation."

McGrath said the approach the DoD is looking to make will require a different way of thinking. She went on to say that once this leap is made, the new approach will make it easier for the DoD to make informed decisions and understand exactly what the cost drivers are.

"We do this every day at home," McGrath said. "We look at what's driving our costs. There are cost decisions we make every day. It's applying that same thought process that businesses have -- that we have as individuals -- to the execution of the business space."