Federal contractors working with the Navy can expect to see a tighter financial picture in the future, after remarks delivered by Secretary of the Navy Ray Mabus.
At a Navy conference in Arlington, Va., Mabus told contracting and government officials: “(The Navy is) going to demand more accountability from contractors on behalf of the taxpayers.”
With a more bottom-line–minded approach in use by the Navy, contractors can expect a shift in budget and deadline burdens from the public to the private sectors. This would also indicate a rise in the number of fixed-price contracts available to the defense industry.
“Unless we control costs, we will not get the Navy that we need, and we will not have the assets to meet all of our missions and assignments,” Mabus said.
The Navy secretary also indicated that he would like to see standardization in terms of shipbuilding protocol, the shifting nature of which contractors have had a difficult time working around.
These changes will act in support of the Navy’s stated goal of a 313-ship fleet.
Mabus’ comments echo the recent remarks of Secretary of Defense Robert Gates, who, while reaffirming the relationship of contractors and the government, warned against the habitual nature of blown deadlines and budget overruns.