Lockheed CEO warns of sequestration dangers

The drop-off in funding that would result from a possible sequestration might result in countless "requests for equitable adjustments for claims" resulting from modification to contracts up and down the defense supply chain that would be submitted to the federal government, said Lockheed CEO Robert Stevens at the defense giant's media day June 19, reports Philip Ewing at DOD Buzz.

Stevens warned that the drop-off in funding caused by the sequestration would effectively abrogate the contracts that the Defense Department has with its big prime contractors, which would, in turn force those contractors to abrogate the deals they have with their suppliers, the story said. The suppliers would charge a prime contractor, such as Lockheed, for the disruption, which would turn around and request that DOD compensate the company for all of the ripple effects of modifications or cancellations.

With such financial and economical crises looming on the horizon, Stevens added his voice to the chorus of DOD suppliers calling on Congress to find an alternative to sequestration.

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


  • POWER TRAINING: How to engage your customers

    Don't miss our June 7 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman and senior staff writer Ross Wilkers discuss the major news events so far in 2019 and what major trends are on the horizon. 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.