DOD wants focus on contractor performance, not profits

Budget cuts foster new culture for program managers

As a result of budget cuts, culture change is coming to how  the Defense Department manages the performance of contractors with a renewed emphasis on value over profits, reports Defense News.

Program managers will be graded on how they spend money and not on obligating funds quickly, said Frank Kendall, principal deputy undersecretary of defense for acquisition, technology and logistics, during a conference on May 17 in Washington.

Controlling costs and accomplishing tasks below budget will be key factors for contractors to focus on, according to the article.

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