https://sputnikglobe.com/20240130/us-defense-firms-avoiding-pentagon-contracts-due-to-inflation-issues---reports-1116502299.html
US Defense Firms Avoiding Pentagon Contracts Due to Inflation Issues - Reports
US Defense Firms Avoiding Pentagon Contracts Due to Inflation Issues - Reports
Sputnik International
US defense firms are rejecting contracts from the Pentagon due to inflation-related issues, the Wall Street Journal reported, citing defense industry leaders.
2024-01-30T22:38+0000
2024-01-30T22:38+0000
2024-01-30T22:38+0000
military
us
pentagon
northrop grumman
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The report said on Tuesday that the heads of Northrop Grumman, L3Harris Technologies and Boeing have skipped out on several defense contracts to avoid losses due to cost overruns.Northrop Grumman will not bid on a contract to make the next fighter jet to replace the F-22, and L3Harris dropped out of competing for a contract to make the new Navy missile, among others, the report said. Northrop Grumman previously said it will lose money making the first batch of the new B-21 Raider bombers, which were valued at about $700 million each under a fixed-priced contract with the Pentagon. Under a fixed-price contract, defense companies have to pay for any cost overuns. According to the report, Gen. James Rainey, who leads the US Army's modernization programs, has claimed that the Pentagon is working on making contracts more flexible to allow for unexpected economic conditions.
https://sputnikglobe.com/20231216/us-f-35-still-underperforms-rival-jets-as-taxpayer-bill-hits-17-trillion---experts-1115615405.html
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us defense, us military, us inflation, pentagon spends too much
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US Defense Firms Avoiding Pentagon Contracts Due to Inflation Issues - Reports
WASHINGTON (Sputnik) - US defense firms are rejecting contracts from the Pentagon due to inflation-related issues, the Wall Street Journal reported, citing defense industry leaders.
The report said on Tuesday that the heads of Northrop Grumman, L3Harris Technologies and Boeing have skipped out on several defense contracts to avoid losses due to cost overruns.
Northrop Grumman will not bid on a contract to make the next fighter jet to replace the F-22, and L3Harris dropped out of competing for a contract to make the new Navy missile, among others, the report said.
Northrop Grumman previously said it will lose money making the first batch of the new B-21 Raider bombers, which were valued at about $700 million each under a fixed-priced contract with the Pentagon. Under a fixed-price contract, defense companies have to pay for any cost overuns.
16 December 2023, 02:07 GMT
According to the report, Gen. James Rainey, who leads the US Army's modernization programs, has claimed that the Pentagon is working on making contracts more flexible to allow for unexpected economic conditions.
