L3Harris CEO: Industry turning away from fixed-price development contracts

By Shelley K. Mesch / June 2, 2023 at 1:37 PM
L3Harris Technologies, and likely other defense contractors, won't continue bidding for fixed-price contracts, CEO Chris Kubasik said Thursday. L3Harris already decided not to pursue two fixed-price development and procurement contracts this year, Kubasik said at the Bernstein Strategic Decisions Conference held in New York. Three to five years into those contracts, he said, the contractors start to take financial hits. “The reason they’re taking these write-offs is because they’re in fixed-price development,” Kubasik said, “and they can’t get the contract...

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