Congress Pads Bills with Preferential Treatment for Military Sole Source Contractors

Congress Pads Bills with Preferential Treatment for Military Sole Source Contractors
Congress Pads Bills with Preferential Treatment for Military Sole Source Contractors

Much of the business world is moving toward greater transparency these days. Some clothing retailers even explicitly state their costs per garment while touting their openness. In the defense industry, things don’t work like that. In fact, sole-source contractors for the Department of Defense were just given free rein to sell more to Uncle Sam without providing any cost info for labor or materials.

Funding the military meets with wide agreement, even among members of Congress. As David Dayen of The Intercept recently wrote, the National Defense Authorization Act passes on-time more than any other recurring vote.

Cost data must be provided for competitive contracts as part of the bidding process. For supplies or services with a sole-source contractor, there was previously no need to share cost data for contracts up to $500 million. That just got quintupled up to a $2.5 million limit.

As you can imagine, this means that suppliers who already have a monopoly on their work can now do even more business without transparency.

Smaller contractors have to worry about the cost of DoD contractors’ equipment needs and labor while bidding competitively. One could argue that’s the best thing for taxpayers’ interests and for maintaining a free market.

As Dayen notes in his coverage, this preferential treatment for larger, sole-source contractors takes away focus on minimizing costs for DoD spending. It also lets certain players avoid disclosure to rig the system in their favor.

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DoD Forms Advisory Panel to Help Firms that Aren’t Typical DoD Contractors

Changing Regulatory Instructions for the DoD are Fueling a Need for More Technological Adaption.
Changing Regulatory Instructions for the DoD are Fueling a Need for More Technological Adaption.

The most innovative companies have countless ideas and technologies that are useful to the Department of Defense, but doing business with DoD can look and feel very differently than what tech firms are used to. In Silicon Valley and beyond, firms that prize speed, agility, and the ability to pivot or launch a product on a moment’s notice can feel encumbered by red tape when collaborating with the government.

A DoD advisory panel was recently formed to expedite collaboration with non-traditional contractors—those companies who aren’t accustomed to DoD contracts.

So far, the Government Accountability Office has identified these challenges facing DoD contractors’ equipment needs, negotiations, and finances:

• Complex processes

• Drawn-out processes

• Inexperience on the part of DoD staff

• Unusual, government-specific terms and conditions

• Unpredictable budget and cash flow issues

• Conflicts with intellectual property rights

Government and the tech industry have long enjoyed a two-way street of innovation and growth. What’s different now? According to the GAO, the private sector has increased R&D spending by 200% since 1987, while the government has held steady at 10% growth.

Among the goals: speed up contracting agreements to 60 days max, and enable DoD agility with easier access to new technology platforms.

Technology for Government and Military Contractors

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Humvee Stolen from the National Guard Parking Lot

The Case of the Missing Humvee...Where Did it Go?
The Case of the Missing Humvee…Where Did it Go?

Can a Humvee really disappear into thin air? That’s the question authorities in Ohio are asking themselves after an incident in late March.

The Case of the “Hot” Humvee

A sand-colored Humvee was apparently stolen off the grounds of the Ohio National Guard Armory in Stow, which is a city southeast of Cleveland. According to the State Highway Patrol and a Guard spokesperson, someone cut through the security fence and took the vehicle on either March 21 or 22.

Troopers say the Humvee was locked and secured at the time, but the thief was able to disarm the mechanisms. The search for the vehicle was still on as of two days later.

Military Material Handling Solutions from DJ Products

Humvees are just one of several heavy and bulky vehicles and pieces of equipment such as boats, trailers and bombs that need to be handled by military and DOD personnel. Maneuvering these materials presents a risk to both the equipment and the people moving them.

Our full line of motorized tugs, pushers and pullers includes solutions for any military or DOD application.

  • The CarCaddy military truck pusher works with Humvees as well as the M939 and FMTV series of trucks.
  • The WagonCaddy HD is a flat-bed mover that easily accommodates loads of up to 10,000 pounds.
  • The CartCaddyWagonWheel HD is designed to pull military trailers featuring a front tongue.
  • The BombCaddy is remote-controlled for operator safety.

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The Data’s In, Here Are the Top Defense Contractors for 2016

Swiss military men
Defense Contracting

When President Dwight Eisenhower, a legendary leader of the armed forces, coined the phrase “military industrial complex,” even he couldn’t have anticipated their stunning accomplishments of military research and development. Here are today’s top defense contractors based on data compiled by the US General Services Administration.

1. Lockheed Martin

A staggering $30 billion has been committed to contracts with Lockheed Martin. The company is currently fulfilling a $528 million project to build interceptors for the Terminal High Altitude Area Defense (THAAD), which is designed to provide protection from ballistic missile attacks.

2. Boeing

More than 12,000 contracts have been awarded to Boeing, including one for nearly $900 million for airborne electronic attack kits such as the “Growler,” which creates tactical jamming and electronic protection for the military.

3. Raytheon

The principal project among Raytheon’s 10,000 contracts is production of 464 Excaliburs, which are the longest-range and most accurate cannon-fired projectiles in the world.

4. General Dynamics

General Dynamics is hard at work building the DDG 51 Class Destroyers for the Navy. This state-of-the-art ship includes advanced systems to defend against submarines as well as against missiles launched via land, air or water.

5. Northrop Grumman

Controversy has surrounded Northrop Grumman’s $55 billion contract to produce the Long-Range Strike Bomber, replacing the Air Force’s dated fleet.

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