WASHINGTON, Nov 14 (Reuters) - Large defense companies
have "conned" the U.S. military into buying expensive equipment
when cheaper commercial options would have been available, U.S.
Army Secretary Dan Driscoll said.
Government accountability advocates and some lawmakers have
long argued that defense contractors have overcharged the
military. But Driscoll's comments were unusually blunt for a
sitting government official speaking out against companies that
supply the largest military in the world.
"(The) defense industrial base broadly, and the primes in
particular, conned the American people and the Pentagon and the
Army," Driscoll told reporters, referring to prime contractors
that work directly with the government.
He added that, in part, it was the government's fault for
creating incentive structures that encouraged companies to
charge astronomical prices.
Large weapons makers provide the U.S. military with all
types of systems, from Lockheed Martin's ( LMT ) F-35 fighter
jets to missile defense systems from companies like RTX,
Northrop Grumman ( NOC ) and Boeing ( BA ).
Previously, the Army has said that a Lockheed-owned Sikorsky
Black Hawk helicopter screen control knob that costs $47,000 as
part of a full assembly could be manufactured independently for
just $15.
"The system has changed. You will no longer be allowed to do
that to the United States Army," Driscoll said.
The Army is launching an initiative to streamline its
acquisition process. It is part of an overall effort by the
Pentagon to allow the military to more rapidly acquire
technology amid growing global threats.
Reuters reported last week that the U.S. Army is aiming to
buy at least 1 million drones in the next two to three years and
instead of partnering with larger defense contractors, it wants
to work with companies that were producing drones that could
have commercial applications as well.
Democratic U.S. Senator Elizabeth Warren this month
escalated pressure on the defense industry to stop opposing
military right-to-repair legislation.