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GAO Advises Pentagon To Keep Tabs On Defense Industry

The latest report from the Government Accountability Office (GAO) stated that contract managers from the Defense Department need to officially update their data for performance pay before modifying the policy. Reportedly, this data is related to contractor financing and suitability. This report was sent to directors of Appropriations and Armed Services panels from Congress. It stated, DoD officers admitted that since 1985 DoD has not completely evaluated how its policies impact the defense sector. It added that there is a change in the economic and Industry conditions. These changes include the surfacing of contractors who do not usually work with DoD and lower interest rates.

Earlier, contractor representatives worked on the study with GAO auditors. They applauded conclusions that followed the Pentagon’s removal of a planned rule floated in August 2018. Reportedly, this rule would have forced changes in the calculation of incentive compensations for contractor performance.

On a similar note, at present, the military tensions are seen growing in the Middle East. Due to this event, over a dozen of the most senior positions at the Pentagon need permanent appointees. So, in the coming weeks, the U.S. President Donald Trump might be forced to name, at least on a temporary basis, a 3rd acting defense secretary. DoD is struggling to set up an extraordinary transition plan focused on ensuring permanence of leadership at the highest stages while there is still no established secretary of defense.

It is now increasingly probable that Richard Spencer, Navy Secretary, will be named as an acting defense secretary for a short period. At present, Mark Esper is in the working position. After the remarkable implosion of Patrick Shanahan’s nomination, Esper is officially nominated for the permanent position. Reports highlight that there are already strategies to offer Spencer highly classified consultations and secure communications to perform the job.

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