What Happened
Defense Department Seeks to Eliminate Barriers to Competition
The Pentagon has issued a memo aimed at eliminating barriers to competition in the defense industry by overhauling contractor cost accounting and audit rules. The move, directed by Deputy Secretary of War Steve Feinberg, seeks to shift contractors towards standard private-sector accounting practices. The memo sets deadlines for senior leaders to implement changes, including opening competition and relying on financial controls and audits already maintained by companies. According to the memo, the current framework has limited competition and raised prices rather than controlling costs. The changes were first reported by Executive Mosaic.