DoD Looking for ‘Cost-Conscious' Contractors, Assad Says

March 23, 2012

Contractors will be asked to provide more information about costs when bidding on contracts as the Defense Department looks for more "cost-conscious" contractors, the department's pricing policy chief said Thursday.

Contracting officers are being told to analyze more thoroughly the costs companies propose and to justify the contract decisions they make, Shay Assad told about 250 federal and private-sector contract managers at the National Contract Management Association aerospace and defense conference here.

"The reality is we're stepping up the game," he said.

DoD is not looking to suppress contractors' profits, Assad said. The goal is to make contracting officers more informed about what makes up a program's cost and how to drive down those costs without affecting profit, he said. 

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