New DOD Rule Accounts for Contractor Risk

By Thomas Duffy / December 13, 2000 at 5:00 AM
The Defense Department yesterday issued a new acquisition rule that takes into account the challenges a contractor may face in developing new military technologies and ties those challenges to the contractor's profit from a Pentagon contract. A higher profit margin is seen as an incentive for contractors to develop specific new technologies. The rule amends current DOD profit policy to include legislative language Congress wrote into the Fiscal Year 2000 Defense Authorization Act, according to a notice in today's Federal...

Not a subscriber? Request 30 days free access to exclusive, behind-the-scenes reporting on defense policy and procurement.

Log in to access this content.