- Advocacy & Policy
- Research Center
June 28, 2010
Today, the aerospace and defense industry was briefed on a number of initiatives the Defense Department is proposing to achieve cost savings in the defense acquisition system while maintaining a “vibrant and financially healthy defense industry.” Secretary Gates and Undersecretary Carter should be congratulated for opening a dialogue to partner with industry to cut costs, improve productivity and achieve efficiencies.
We share the Department’s interest in this matter, and in fact last year AIA released a report outlining a number of initiatives the Department can take to reduce costs in the defense acquisition system. While the administration is moving forward on some of these initiatives, such as improving the acquisition workforce, there is much work that remains to be done.
Undersecretary Carter outlined a number of objectives including:
We are pleased that the Department is taking a comprehensive look at what drives up costs in government procurements. One of the most significant challenges faced in reducing costs is that the government continues to impose new government unique contracting regulations that as early as 1994 were estimated by Coopers and Lybrand to increase the cost of products that DOD buys by 18 percent -- costing the American taxpayer billions of dollars each year. Since the release of that report, new requirements and additional costs continue to be imposed.
In order to achieve lower costs for producing DOD systems we request that the administration and the Congress:
We look forward to working with the administration over the next several months to develop the required facts and data and advance the dialogue through a series of meetings that will be necessary to achieve our common goals.