Home / DoD / Lynn Offers Deal to Contractors

Lynn Offers Deal to Contractors


Photo: DoD

Deputy U.S. Defense Secretary William J. Lynn spoke recently about the bitter reality faced by the Defense Department and government contractors in the incongruous era of budget deficits and spending cuts, according to an article in Aviation Week.

The Defense Department says it needs between 2 and 3 percent growth, but Lynn said it is likely to only receive 1 percent.

So the difference must be made up creatively.

To help offset the cost overruns, which more than 40 percent of contracts suffer from, Lynn offered a deal to contractors. DoD will buy greater quantities, he said, if contractors cut unit costs, Aviation Week reported.

Lynn’s strategies have implications for defense contracting.

Namely, continued sales and profits for contracting, even as the Pentagon institutes a sharp reduction in its budget.

But it’s not exactly clear how the new strategies and realities will play out, and Lynn has acknowledged that much himself.

Also some “analysts are skeptical that the Pentagon can ‘guarantee’ to buy in higher quantities, noting that final funding authority rests with Congress,” Aviation Week wrote.

But credit should be given for “moving aggressively to get out in front of the problem,” the magazine concluded.

Check Also

DARPA Launches Program Seeking High Performance Computing for Military Simulators

The Defense Advanced Research Projects Agency launched a new program to improve how virtual training environments replicate real-world interactions and host more complex systems. DARPA unveiled Monday that the Digital RF Battlespace Emulator program intends to build a new breed of High Performance Computing capable of supporting advanced radio frequency for simulators. 

Leave a Reply

Your email address will not be published. Required fields are marked *