Department of Defense Archives

Are Military Contractors Being Helped Too Much by the Government?

Safety Should Always Be First.

Dating back to the mid-20th century, President Dwight Eisenhower predicted an unholy alliance between defense contractors, politicians and military brass. Today his vision has become reality, as fat contracts have taken precedence over the actual needs of our troops.

Profits Taking Priority Over Function and Safety?

The problems of a poorly-equipped military date back to the Civil War. Over the subsequent years, the level of dysfunction in the procurement process has grown to the point where 50 of the Pentagon’s 63 largest programs are over budget by a staggering $296 billion.

A military contractor equipment supplier faces little competition and even less outside scrutiny. As a result, contractors will often line their pockets by offering plenty of bells and whistles with no substance.

The stakes are even higher for military supplies and equipment than for most other products. If a refrigerator or computer malfunctions, it’s an inconvenience. With military items, problems can result in injuries or even deaths.

Reforming the Military Procurement Process

• Solicit input from the troops. The men and women who will actually be using the supplies and equipment are the true experts.

• Restore competition among contractors. Open up the process to companies outside the so-called Iron Triangle.

• Designate a centralized office or agency to provide the strong oversight that’s sorely lacking right now.

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Networking Summit Acted as Matchmaker between Businesses and the Military

Networking Summits Acted as Matchmakers between Businesses and the Military

Most business people rely on networking to market themselves and discover valuable new opportunities. The same holds true for a military contractor equipment supplier attending the recent Army Contracting Summit in Killeen, TX.

“Marrying” Contractors and Local Companies

The Washington, D.C.-based Defense Leadership Forum hosted the two-day event for approximately 150 area vendors and business leaders. Various workshops and speeches focused on providing local companies with information and advice about Army contracts in the Fort Hood area.

Howard Snow, a retired Marine lieutenant colonel who formerly served as Deputy Assistant Secretary of the Navy, moderated the event. He explained that the purpose of the summit was to serve as “matchmaker” for defense contractors and local businesses.

What’s In the Future for Army Contracts?

Summit highlights included details about specific military contracts for goods and services including vehicles, ammunition, communications and housing. Contractors also received insights into successfully dealing with the government’s procurement systems.

Richard G. Kidd IV, Deputy Assistant Secretary of the Army for strategic innovation, gave the keynote speech. Kidd addressed the changing environment for military installations and the Army’s commitment to renewable alternative energy projects.

While in town, Kidd also attended a ribbon-cutting at West Fort Hood marking the completion of more than 60,000 solar panels. The hybrid renewable energy project is expected to save about $168 million dollars in energy costs over the next 30 years.

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Are There Ways to Better Manage Department of Defense Spending?

Are There Better Ways to Handle Military Budgets?

While President Donald Trump’s proposed budget includes a significant increase in defense spending, many feel that it’s still not enough to make up for what was viewed as years of underspending. Center for American Progress, an independent bipartisan think tank, suggests the following ways for the Pentagon to manage funds more efficiently.

1. Downsize Administrative Staff

The Pentagon staff has grown by 38% since 2001. A recent report found that personnel cuts would produce $125 billion in savings over the next five years.

2. Reduce Cost Overruns

In 2015, multinational consulting firm Deloitte issued a report stating that overruns for major acquisition programs amounted to a staggering total of $468 billion.

3. Re-Examine Aircraft and Ship Spending

Senator John McCain, chairman of the Armed Services Committee, has recommended maintaining a more fiscally responsible number and mix of military vehicles, including aircraft carriers and combat ships.

4. Prioritize Nuclear Spending

Former Defense Secretary William Perry and Gen. James Cartwright, former Vice Chairman of the Joint Chiefs of Staff, have proposed that the government cancel the land-based missile and air-launched cruise missile parts of the ongoing multibillion-dollar nuclear modernization program.

5. Authorize a Round of Base Closings

No Base Realignment and Closure (BRAC) commissions have been held since 2005; some sources suggest there’s up to 30% excess base capacity.

Move DOD Contractor Equipment Safely and Efficiently

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President Trump’s Department of Defense Pick May Shake Up the Pentagon

New Pick For DOD

A new administration always means a changing of the guard in key positions such as the Cabinet. Experts predict that Donald Trump’s appointment of James Mattis for Secretary of Defense will usher in a significantly different culture at the Pentagon.

Who Is James Mattis?

Mattis is a four-star general who served 44 years in the Marine Corps, leading troops in the Persian Gulf, Afghanistan and Iraq. In 2010, he took the reins at U.S. Central Command (CENTCOM), replacing General David Petraeus.

Mike Furlong, an Army combat vet and former intelligence officer, had the chance to observe the effect Mattis had during his time at CENTCOM. According to Furlong, Mattis made CENTCOM less political and worked hard to support the troops out in the battlefields.

While Furlong says Mattis is more of a deep thinker and less politically astute than Petraeus, Mattis’s strong personal principles enabled him to work successfully with NATO. Foreign counterparts such as Norwegian defense minister Ine Eriksen Soreide and Michael Fallon, the U.K. secretary of state for defense, have publicly welcomed the appointment of Mattis.

Well-Regarded by the Troops and His Peers

Troops on the front lines affectionately bestowed the nickname of “Mad Dog” on Mattis. Though he’s not especially fond of it, Mattis appreciates its source. Mattis is also known as an intellectual who has a personal library including more than 7,000 books about world and military history.

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Technology Leads the Way as the New Face of Defense Contracting

Technology is the Future for The DOD

It has become a new wave of electronics and DoD contracting equipment for warfare in the U.S. military. The Pentagon wants to implement advanced electronic technology that may hold up on the battlefield for a generation or more. As amazing as that sounds, electronics and other advanced technologies are capable of giving the military that type of edge.

Weapons Types

Some of the weapons that are ready for production or that are being made as prototypes are naval rail guns, which use electromagnetic energy to fire projectiles at 5 times the speed of sound; drone swarms that will break apart like a flock of birds and attack en mass; Iron Man type suits that will aid the soldier on the field; and LASER beam weapons made for land, sea and air deployments.

The Private Sector

For the most part, many of these weapons are being developed by the private sector and not by regular military contractors. This “outside of the box” thinking is allowing little known advances in such technology areas as fiber materials, artificial intelligence, software, and diverse equipment such as robotic-controlled ships, helicopters and planes.

Of course, with every new advancement in technology, regardless of what it is, equipment will be needed to move it around warehouses and other spaces, and that’s exactly where the movement solutions from DJ Products will shine.

For more information on DoD-contracted military equipment or any other job where heavy equipment moving is essential, contact DJ Products, makers of trailer movers, aircraft tugs, rail car movers, and more. We have the mobile solutions for all of your warehouse floor management needs.

Feds Work to Shut Out Contractors as Punishment

In July 2014, the Fair Play and Safe Workplaces executive order was enacted in an attempt to punish federal contractors who have a history of labor abuses. As Congress addresses funding for the Department of Defense, the order is causing members to take sides regarding its enforcement.

Is the “Fair Play” Order Necessary?

The order covers a wide spectrum of labor abuses, but the primary issue is wage theft, which occurs when employers don’t pay employees the full amount they are owed. In the absence of general anti-wage theft laws, the White House has used the policy to withhold federal agency contracts from offending companies.

This past May, the funding bill came before Congress, and it included a provision to make DoD contract equipment and other contracted services exempt from the President’s order. Rep. John Kline of Minnesota, author of the provision, argued that the order is redundant based on the effectiveness of current safeguards.

A House Divided

Rep. Keith Ellison, also of Minnesota, objected to the provision, citing evidence from a Senate labor report showing that $81 billion in contracts had been awarded to 49 companies with significant wage and safety violations on record. However, Ellison’s amendment to remove the provision was dismissed.

The House ultimately approved the funding bill, which is now before the Senate, but it still faces an uncertain future. The White House has suggested that President Obama will veto the entire bill unless major changes are made.

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Department of Defense Opens Combat Jobs to Women

Military

In a historic decision last month, the Department of Defense announced that woman will no longer be excluded from any combat operations. The move applies to all branches of the U.S. military.

Secretary of Defense Ash Carter announced the decision, calling it an important and necessary step to staff the armed forces with the best talent available.

The Debate Surrounding Women in Combat Roles

Some observers and military leaders have held to the view that women should not serve in combat, for various reasons. A Marine corps report from September 2015 had bolstered this stance with the findings that, in simulated tests, females performing combat tasks were injured more frequently and fared less well at shooting accuracy. The study observed male-only and mixed-gender teams.

However, supporters of women in combat have pointed out that the male-only teams may have fared better partially because those participants were more experienced. With less training and experience, the teams that included females may have naturally produced less positive results.

Finding Ways to Strengthen the Military

Ultimately, the announcement simply means that women pass all requirements for combat roles are allowed assignment to those positions. The move should hopefully strengthen the armed forces with talent better allocated to every role.

The armed forces continue to seek ways to operate more efficiently and optimally. Tools and technology including DOD contractor material handling equipment can help in this regard. Battery-powered equipment to move vehicles and heavy items can be easily used by any service member, allowing units to accomplish tasks with fewer resources.

Contact DJ Products for more information about approved DOD contractor material handling equipment.

Defense Contractors Get Extension on Cyber Security Standards

Cyber Security

An eleventh-hour reprieve has given Department of Defense contractors a reprieve until the end of 2017 before complying with new cyber security standards. For many firms, this defense contracting news comes as a welcome assurance that ample time will be allowed to implement new protocols.

Deadline extended: DOD contractors still face stricter security rules

The DOD heard concerns in December that the January 1, 2015 deadline would be causing undue difficulties for contractors and subcontractors. The reprieve finds a middle ground for increasing protection for sensitive, non-classified data.

Before the latest cybersecurity standards become mandatory, contractors will be required to report non-compliant elements that may affect a contract. The amended rules also stipulate that the toughest security standards will apply only to those subcontractors who are handling certain important data or whose contracts affect critical operations.

More information about the DOD cyber security rules is available from the National Institute of Standards and Technology.

The 2015 NDAA called for tougher security practices for the military and its contractors due to a growing frequency of threats and incidents involving sensitive military data. The goal is to reduce cyber attacks and also mandate reporting of potential breaches.

At DJ Products, we watch out for important defense contracting news that affects our clients. As a DOD contractor you know that staying on top of regulations is critical to maintaining DOD relationships.

As a manufacturer of GSA-approved equipment moving and material handling equipment for military applications, we report on major defense contracting news to help keep you informed. Follow our blog for regular updates on DOD news and solutions for defense contractors.

DoD Contractors In Hot Water for Poor Accounting and Invoicing

Poor Invoicing Has Led to Issues in the DOD

After the Department of Defense found that some transportation contractors had falsified weight tickets, Maersk Line has settled the allegations with $3.66 million in civil penalties.

Maersk’s Farrell Lines and its logistics branch, Damco, appeared to be at fault due to a poor invoicing system. It is unclear whether there was any attempt to falsify the shipment weights, as the matter was settled before going to court.

The large fines indicate the stringent standards placed on DoD contractor equipment and practices — with strict scrutiny expected even for large and established contractors.

Why the DoD Fined Two Maersk Subsidiaries

The transportation companies had been subcontracted to move DoD cargo out of Scott AFB in Illinois. As per the terms of the contract, billing was weight-based. However, the companies did not create authentic weight tickets when shipping the loads — employees had apparently written up 563 tickets after shipment.

With the DoD contractor equipment available today, automated record keeping and material handling should prevent these sorts of invoicing issues.

Maersk had previously paid a $32 million settlement for overcharges to the DoD in 2012, but has been awarded billions in contracts since.

About GSA-Approved DoD Contractor Equipment

Firms with government contracts should take advantage of modern material handling equipment to automate many processes. At DJ Products, we offer GSA-approved truck pushers, trailer caddies, the BombCaddy remote explosive trailer, and other military contractor equipment.

These devices not only make it easier to push and pull heavy equipment and vehicles, but doing so can also make it easier to streamline operations and staffing needs.

Find out more about DoD contractor equipment at DJProducts.com.

Tag: Department of Defense