Of All The Battles Ahead for President Obama, Taking on Defense Contracting May Be His Toughest
WASHINGTON, March 31 – /EIN News/ “Taking on influential defense contractors will be tough.” —President Barack Obama, March 24 prime time TV news conference.
“Tough” hardly describes the battle that lies in wait for the President when he tries to make meaningful changes in defense contracting.
More than 90% of the revenue generated by Lockheed Martin and Raytheon in 2008 came from defense contracts. For Northrop and General Dynamics, defense contracts accounted for more than 70%. Even Boeing, which dominates civilian aviation, depends on military work for half its revenue.
When the President talks about reforming defense spending, these are the goliaths he’s taking on.
The entire defense contracting system is shot through with waste and abuse. Last year the GAO reported that 95 defense projects had overrun their budgets by $295 billion. The average delivery delay was nearly two years beyond what the contractor promised. The GAO periodically tries to audit the Defense Department, but always comes to the same conclusion: the department’s books are such a mess that audits are impossible. We’re talking about an agency that last year spent more than 20% of the entire federal budget.
This should be a ripe target for White House and Congressional cost cutters. Should be. But isn’t. Why?
Read the whole commentary at http://uspolitics.einnews.com/article.php?nid=648247 and/or visit http://uspolitics.einnews.com/ for more stories that your regular news sources may have missed.
For a free trial to U.S. Politics Today, go to:
The publisher of U.S. Politics Today, EIN News, was established in Central Europe in 1995, and through the years has built more than 200,000 news feeds organized within 50 individual news sites. The company has launched the well-known “Russia Today” brand and opened internet news access to China with “Inside China Today”.
Offering a unique combination of human editing and proprietary scanning software, EIN News won Europe’s coveted Momentum Award as the most innovative internet company on the continent. Serving thousands of customers daily, the company distributes its feeds via email or mobile news alerts, online and other channels such as Newsfeedmaker.com.
Tel: +1 202 657 5158
Fax : 202 478 2767