Home / Acquisition & Procurement / Deputy Defense Secretary Ash Carter: ‘Profits and Margins’ Key to Defense Industry Success

Deputy Defense Secretary Ash Carter: ‘Profits and Margins’ Key to Defense Industry Success

Ashton Carter
Ashton Carter

Deputy Defense Secretary Ash Carter has recognized the industry’s needs to generate profits and reach margins in order to ensure success for both government and contractors, the Washington Business Journal reported Friday.

Jill Aitoro writes Carter has trained his focus on Better Buying Power 2.0, an acquisition policy intended to help the Defense Department acquire goods and services at a lower cost.

“I recognize that industry needs profits and margins to be successful,” Carter said.

“While incentivizing cost-consciousness will continue to be centrally important to our work, we need to pay more attention and be attentive to best total value and program risk so that transactions are successful for both parties,” Carter added.

Former Defense Secretary Robert Gates launched the first iteration of the strategy in 2010, seeking to put emphasis on affordable defense programs, incentives, competition and less bureaucracy, Washington Business Journal reports.

Aitoro writes Carter has also emphasized the DoD’s need to shore up its internal acquisition personnel to succeed as an enterprise.

Check Also

SEC to Address Financial Technology Concerns, Innovations via New Hub

The Securities and Exchange Commission has opened a hub where it can coordinate with public and private sector entities to address concerns and initiate developments in financial technology.
 

Leave a Reply

Your email address will not be published.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