DOD focused on lower costs, not profit margins, Assad asserts

The Defense Department isn’t concerned with contractors’ profit margins, but is focused on reducing its own costs, Federal Times reported on Nov. 30.

Shay Assad, director of defense pricing and adviser to the undersecretary of defense for acquisition, technology and logistics, went so far as to say he didn’t expect profit margins to fall even in these times of budget tightening.

“It wouldn’t bother us at all if operating margins go up, so long as we’re paying less,” he said, according to the report.

Reader Comments

Fri, Dec 2, 2011 Don O'Neill

When it comes to large-scale software-intensive programs, it is time to move from aspirational slogans to a disruptive game changer to bring the defense industry into line with the needs of the Department of Defense. The government understands what it needs. Yet industry is not hearing the message. It is time to alter this dynamic by addressing the challenges of competition, innovation, and fixed price contracting in shifting from an expectation of compliance to one of leadership.

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
close

Trending

  • 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.

I agree to this site's Privacy Policy.