A Battle Is Brewing: According to the Congressional newspaper, The Hill, the Aerospace Industries Association is out to stop Sen. John McCain (R-Ariz.) from making fixed-price contracting the norm for acquisition of major weapons systems. McCain believes the move would help control costs and has managed to convince enough Senate colleagues to get the fixed-price rule in the 2007 defense authorization bill. Roxana Tiron reports that AIA, on the other hand, believes that one way to keep costs down is to provide consistent funding, even invoking multiyear contracts—something Congress has been loath to do. Since the House version of the 2007 defense bill is mum on this issue, all will have to be worked out in conference.
The Space Development Agency says it’s on track to issue its next batch of missile warning and tracking satellite contracts this month after those awards were delayed by the Pentagon’s decision to divert funds from the agency to pay troops during this fall’s prolonged government shutdown.
