What Happened
Defense Department Pushes For Direct Software Link To Company Financials
The Pentagon is pushing for more transparency from defense contractors on the cost of building weapons, with a new memo calling for the use of software that would pull data directly from companies’ financial systems. The directive, signed by Deputy Defense Secretary Steve Feinberg, aims to ensure that contractors’ profit margins don’t get out of control and that contracts are negotiated fairly. The move may be seen as an effort to reduce the regulatory burden on industry, but it could also frustrate defense companies, which have long complained about the department’s pursuit of cost and pricing information. The memo was first reported by Breaking Defense.