What Happened
New Policy Aims To Cut Contractor Costs And Speed Production
The US Department of War has ordered a defense procurement overhaul aimed at cutting contractor costs, widening competition, and speeding up weapons production. The policy, outlined in the ‘Fostering One Strong Industrial Base’ memorandum, targets rules that have discouraged commercial companies from entering the defense market. The department will shift eligible contracts from government-specific Cost Accounting Standards to Generally Accepted Accounting Principles, already used across the wider US economy. According to Defence Industry Europe, the policy is intended to make selling to the Department of War a more straightforward process, harnessing the private sector’s strengths while protecting taxpayers.