Pentagon Tells Firms Keep Costs Down to get Bucks

February 14, 2012

The Pentagon's acting acquisition chief Frank Kendall assured industry executives on Tuesday that there was still money to be made in defense, but said companies would have to deliver weapons within budgets and on time to be competitive.

Kendall, nominated to take over as the Pentagon's chief weapons buyer, said that over the past year he had cancelled some poorly performing programs, including Northrop Grumman Corp's unmanned Global Hawk plane.

"If you are not delivering on cost and schedule ... you are very vulnerable," Kendall, a lawyer and engineer, told a conference hosted by Aviation Week. 

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