The Air Force thinks it’s paying more for its goods and services than it should and wants to put pressure on its contractors to reduce costs in their supply chain.
Previously, when the Air Force negotiated contracts, much of it went to prime contractors, but now 60 to 70 percent of that is subcontracted, said the Air Force’s Deputy Assistant Secretary for Contracting Wendy Masiello.
“So we’re spending a lot more time understanding those supplier partnerships,” said Masiello at an April 16 Air Force Association breakfast. “It’s an area of expertise that you would hope the primes are starting to develop in order to manage those costs, but there’s often less motivation to be as stringent in those relationships. It’s often more about maintaining those suppliers as long-term partners.”
Keep reading this article at: http://www.fiercegovernment.com/story/air-force-wants-contractors-rein-supply-chain-costs/2014-04-20
