DOD to Perform First Review of Private Contracts In Over 30 Years

July 23, 2021 by Brock Blasdell
DOD to Perform First Review of Private Contracts In Over 30 Years

WASHINGTON – The Department of Defense is conducting its first fiscal research study in over 30 years to determine the efficiency and overall health of the military industry and its private contractors. The decision comes as part of a push by the DOD to utilize budgeted funds more efficiently in the face of supply shortages and bottlenecks created by COVID-19. 

The Center for Government Contracting at George Mason University announced in late June they would be assisting in the research after a $1 million award from the Office of Defense Pricing and Contracting within the Office of the Under Secretary of Defense for Acquisition and Sustainment.

“These studies are part of a DOD effort with universities to undertake independent research to better understand the finance dynamics in the defense marketplace,” the George Mason Center for Government Contracting announced in a press release. “Mason will examine free cash flow in the defense sector, the impact of cash flow by contract type and financing, financing and its impact on small businesses, and government accounting system requirements as a barrier to the commercial sector’s willingness to do business with the federal government.”

The annual Government Contract Pricing Summit, the federal government’s yearly heart-to-heart with the contracting industry, saw incentive-based contracts being pushed over fixed-rate contracts, indicating the government is looking to give private partnerships more wiggle room in how they approach their contracts.

One of the ways the Department of Defense is looking to increase efficiency is by micro-managing less and seeking more ways to find balance with private industry leaders. 

“Leadership plays a very important role in this particular area, in terms of challenging the workforce,” Janice Muskopf, DOD director of Price, Cost and Finance, said at the Government Contracting Price Summit. “I believe our contracting officers, as part of their basic role, are to exercise judgment. When people exercise reasonable judgment, and they’ve got their leadership on board with them, they really don’t have anything to fear.”

This push within the defense contracting industry aligns with the Biden administration’s budgetary goals for the defense industry in 2022, within which, they propose a $12 billion increase to make smart and disciplined choices regarding national defense in the face of climate change and COVID-19; to more accurately distribute resources to evolving threats; and to address strategic competition with China. 

A+
a-
  • Center for Government Contracting
  • Defense Department
  • George Mason University
  • private contracts
  • In The News

    Health

    Voting

    Defense

    House Republicans and Democrats Say the US Must Maintain Its Troop Totals in Europe

    WASHINGTON (AP) — Republican and Democratic members of the House Armed Services Committee voiced sharp bipartisan criticism Tuesday about reports... Read More

    WASHINGTON (AP) — Republican and Democratic members of the House Armed Services Committee voiced sharp bipartisan criticism Tuesday about reports the Trump administration is eyeing a reduction of U.S. forces in Europe, saying America must stick with its NATO allies. Rep. Michael Rogers, R-Mich., the panel’s chairman,... Read More

    Trump, the 'America First' Candidate, Has a New Preoccupation: Imperialism

    NEW YORK (AP) — Donald Trump ran on a return to his "America First” foreign policy platform. The U.S., he said, could... Read More

    NEW YORK (AP) — Donald Trump ran on a return to his "America First” foreign policy platform. The U.S., he said, could no longer afford to be the world's policeman. On his watch, he pledged, there would be no new wars. But since winning a second term, the... Read More

    A Caucus of Military Veterans Seeks to Bridge the Political Divide in a Polarized Congress

    WASHINGTON (AP) — The players in this year's Army-Navy football game kept up a long tradition, with each side honoring the other’s... Read More

    WASHINGTON (AP) — The players in this year's Army-Navy football game kept up a long tradition, with each side honoring the other’s school song when the contest ended. It was an acknowledgment that the future could bring moments when the opponents that day are teammates on deadlier fields.... Read More

    December 11, 2024
    by Dan McCue
    House Passes Defense Authorization as Shutdown Deadline Looms

    WASHINGTON — The House on Wednesday passed the $895 billion defense policy bill known as the National Defense Authorization Act,... Read More

    WASHINGTON — The House on Wednesday passed the $895 billion defense policy bill known as the National Defense Authorization Act, approving a 1% increase in defense spending for this fiscal year. With the 281-140 vote, the measure now moves to the Senate, where lawmakers had wanted... Read More

    Zelenskyy Open to Western Troops Providing Security for End to War in Ukraine

    KYIV, Ukraine (AP) — Ukrainian President Volodymyr Zelenskyy said Monday that he's open to the potential deployment of Western troops... Read More

    KYIV, Ukraine (AP) — Ukrainian President Volodymyr Zelenskyy said Monday that he's open to the potential deployment of Western troops in Ukraine to guarantee the country’s security as part of a broad effort to end the almost three-year war with Russia. The deployment would be a step toward... Read More

    Trump's Defense Pick Pete Hegseth Faces Deepening Scrutiny in Senate

    WASHINGTON (AP) — Pete Hegseth, President-elect Donald Trump's pick for Defense Secretary, spent a second day on Capitol Hill, meeting privately with... Read More

    WASHINGTON (AP) — Pete Hegseth, President-elect Donald Trump's pick for Defense Secretary, spent a second day on Capitol Hill, meeting privately with Republican senators amid rising questions about his ability to effectively lead the Pentagon. Hegseth told reporters Tuesday that he was planning to sit down with senators, even... Read More

    News From The Well
    scroll top