Boeing: Defense programs face heavy scrutiny

Boeing Co.'s top defense executive believes the Obama administration will closely examine some of the Defense Department's biggest weapons programs, as well as those experiencing cost overruns or delays, reports The Wall Street Journal.

Jim Albaugh, chief executive of Boeing's Integrated Defense Systems unit, said during a Merrill Lynch defense-industry conference in New York on Nov. 12 that "as a new administration comes in, they will come in and take a hard look at everything" being done by the Defense Department.

Pressure on the Pentagon budget is expected to increase, particularly as the new president grapples with demands for federal assistance from the banking and finance sectors. This is particularly worrisome for defense companies that depend on continued spending on big-ticket programs for new weapons that have yet to be fielded. "We've had a great ride here," Mr. Albaugh said.

Before the election, Richard Danzig, a top Obama defense adviser, identified the Army's $160 billion Future Combat Systems contract, as well as efforts to develop a national missile-defense system, as areas that would get close scrutiny. Both of those are big programs for Boeing.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.