A less-discussed feature of the Senate defense authorization bill would shift the burden of research and development costs from the government to industry, a defense budget expert said Tuesday. Andrew Hunter, a senior fellow at the Center for Strategic and International Studies said the Senate’s change in military contracting rules includes a 1 percent penalty con cost-plus contracts. There was a time when “the DOD drove research and development elsewhere in the US and worldwide. But today that is not even close to being true,” Hunter said during a budget discussion at The Heritage Foundation in Washington, D.C. The penalty, Hunter said, would incentivize fixed-cost contracts in which a military contractor takes on the risks related to research and development of new technologies. This shift signals a “new era where new technologies will not be developed on the government dime,” he said.
The program executive officers for some of the Air Force’s largest acquisition management organizations are struggling to deal with an exodus of senior talent and experienced civilian staff, three of them told an industry conference.
