Defense Business Alert

In a new letter sent to the Pentagon this week, eight of the largest defense contractors say they are preparing their estimated costs related to COVID-19 relief legislation and warn the Pentagon will need additional funding to cover these expenses.

The General Services Administration has released a final request for proposals for small businesses that want to provide IT services to agencies that could have lasting repercussions for contractors wanting to do business with the Defense Department and civilian agencies, according to a leading contract lawyer.

U.S. Transportation Command confirmed the award of the $7.2 billion Global Household Goods contract to American Roll-on Roll-Off Carrier after clearing the company of improperly withholding information about its parent company.

The Senate Armed Services Committee has approved a fiscal year 2021 defense authorization bill that would repeal a previous provision requiring large defense contractors to reimburse the Pentagon for the cost of processing losing bid protests.

Pentagon acquisition chief Ellen Lord said today the defense industrial base is making an "enormous recovery" after a three-month slowdown caused by the COVID-19 outbreak, but she stressed the continued need for supplemental funding in the "lower double-digit" billions to reimburse contractors for pandemic-related disruptions.

The Defense Department inspector general intends to audit sole-source depot maintenance contracts performed at contractor facilities to determine whether the military has negotiated "fair and reasonable" prices.

Some of the largest defense contractors say they're seeking to work with Congress to change or reverse a portion of the 2017 tax legislation that would, effective in 2022, require companies to delay writing off research and development costs.

Federal Communications Commission Chairman Ajit Pai says he personally spoke with Defense Secretary Mark Esper prior to the FCC approving Ligado Networks' controversial spectrum license, and Pai pushed back on Pentagon claims in a new letter to lawmakers.

The economic slowdown brought on by COVID-19 could set back the Pentagon's nascent efforts to leverage commercial technologies, as venture capital funding recedes and big money government contracts for nontraditional companies remain elusive, according to new reports and interviews with Silicon Valley insiders.