Tags: Economic- Crisis | Defense spending | Pentagon | military | contractors | mergers | opposition

Pentagon Wants Defense Contractors to Refrain From Merging

Wednesday, 09 Feb 2011 12:48 PM

The Pentagon is using a speech today to investors to argue against further consolidation of the defense industry, the Wall Street Journal reports. The Defense Department’s top procurement officer, Ashton Carter, says that more mergers among defense contractors could drive up the cost of everything from new weapons to military base maintenance.

Pentagon, defense, conractors, merging“The speech doesn't refer to any specific deals — and Mr. Carter said that the Pentagon hasn't been approached with any proposals for large-scale mergers — but the remarks are likely to be carefully parsed,” the Journal reports.

The push contrasts with past Pentagon policy on mergers and coincides with moves by Defense Secretary Robert Gates to limit defense spending increases and promote budget austerity.

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