Defense Business Alert

Many defense contractors, particularly those in the services industry, say they're intensely focused on their hiring practices and benefits as the market for the workers they need tightens.

The Trump administration is asking Congress to pass new legislation delaying implementation of a ban on the government sending federal dollars to companies and organizations that use certain Chinese telecommunications equipment and services.

Members of the House Oversight and Reform Committee are seeking a "comprehensive" investigation into TransDigm, even after the company last month agreed to refund $16.1 million the Defense Department inspector general previously deemed excess profit.

BAE Systems' U.S.-based organization last year restructured and renamed its research and development arm, now known as FAST Labs and meant to quickly generate innovative technology that can be transferred to the company's business units.

A week after its executives were asked during a congressional hearing to voluntarily refund “excess” profit, TransDigm has not returned the funds, according to a DOD spokesman.

SpaceX has filed a lawsuit against the Air Force in the U.S. Court of Federal Claims, protesting the service's October 2018 Launch Services Agreement competition.

A senior Pentagon acquisition official told Congress today the "sickening business practices" of contractor TransDigm Group have led the Defense Department to take new steps to mitigate alleged price gouging, including creating a watchlist of companies that refuse to provide cost data.

The Pentagon intends to launch a program next month to connect small, but promising technology companies with “trusted” venture capitalists, rather than risk the companies going into business with Chinese investors.  

The Pentagon has moved in recent years to better secure key technologies from potential adversaries like China, but those efforts are increasingly coming into conflict with the Defense Department's attempts to work with commercial businesses.