Pentagon's Procurement Predicament: Army Pushes Back Against Defense Overcharges

U.S. Army Secretary Dan Driscoll accuses defense companies of overcharging for military equipment, advocating for cheaper commercial alternatives. Driscoll criticizes government incentive structures and calls for streamlined procurement processes. The Army plans to buy 1 million drones with a focus on commercial tech, reacting to escalating global threats.

In a bold move, U.S. Army Secretary Dan Driscoll has accused major defense contractors of inflating costs for military equipment, suggesting that more affordable commercial options have been overlooked. His remarks represent a stark criticism from within the government, as he called out the 'prime' contractors directly involved with the U.S. military.

Driscoll admitted the government shares responsibility for creating incentive structures that have led to these inflated charges, citing cases like the $47,000 Black Hawk control knob from Lockheed that could be independently produced for just $15. Driscoll insists changes will prevent such practices, steering future procurement strategies towards cost-efficiency.

Additionally, the U.S. Army plans to purchase over a million drones in collaboration with companies producing dual-use commercial technology, maneuvering away from traditional defense contractors. This shift coincides with increased pressure from Senator Elizabeth Warren for the defense industry to comply with military right-to-repair legislation.

(With inputs from agencies.)