Big defense companies have “scammed” the U.S. military into purchasing expensive equipment when cheaper commercial options were 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 who speaks out against companies that supply the world’s largest military.
“The defense industrial base in general, and the prime companies in particular, defrauded the American people, the Pentagon and the Military,” Driscoll told reporters, referring to prime contractors who work directly with the government.
He added that it was partly the government’s fault for creating incentive structures that encouraged companies to charge astronomical prices.
Big arms manufacturers provide the U.S. military with everything from Lockheed Martin’s F-35 fighter jets to missile defense systems from companies like RTX, Northrop Grumman and Boeing.
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Previously, the Army had said that a display control knob for a Lockheed-owned Sikorsky Black Hawk helicopter, which costs $47,000 as part of a complete assembly, could be manufactured independently for just $15.
“The system has changed. They 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 Pentagon effort to allow the military to more quickly acquire technology in the face of growing global threats.
Reuters reported last week that the US Army plans to buy at least 1 million drones over the next two to three years, and rather than partnering with large defense contractors, it wants to work with companies that produce drones that could also have commercial applications.
Democratic Sen. Elizabeth Warren this month stepped up pressure on the defense industry to stop opposing military right-to-repair legislation.
With information from Reuters.
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