It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Some of the nation’s leading defense companies are declaring war on a powerful enemy — an obscure Pentagon official named Shay Assad who has helped cut more than $500 million from military contracts with his aggressive scrutiny of their costs.
The industry’s tactics include blanketing congressional committees with proposals that would make it harder for Assad and his contracting officers to get detailed breakdowns of the companies' expenses, according to documents obtained by POLITICO. But Assad, the Pentagon's pricing director for the past five years, refuses to back down, saying: "We are going to be relentless in pursuing getting the good deal for the taxpayers."
“That's the way it is,” said Assad, a 65-year-old Bostonian with the heavy accent to match. “If companies don't like it, people have an objection to it, we're not apologizing for it."
IT Alliance Senior Vice President Trey Hodgkins, who helped form the proposals, said current Pentagon rules "erode" access to the defense market. "I think there's broad agreement in Congress that we have to find ways to lessen the burden and make this market more attractive,” he said.
Over the last five years, he contends, the top five defense companies' stock prices "have gone up anywhere from 67 percent to 180 percent for those five companies. Record cash flows, record profits, record return on invested capital." It is an assessment backed up by industry analysts.
"We're not after their profitability, we're after paying less," Assad said. "And if we can pay less and they're doing well financially, what's wrong with that? If you look at what had been happening in the past, year over year, we always paid more. ... That doesn't happen anymore. Year over year we're paying less."
originally posted by: Zaphod58
a reply to: tothetenthpower
There is an attempt to overhaul the entire contract process, that was started in the office of the SecDef. It doesn't go far enough, but complete overhaul will have to come through Congress.
originally posted by: Terminal1
Someone needs to hire many people like this one. Would pay the additions salary through the savings they find.