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Lockheed: Pentagon negotiators are becoming more unpredictable

March 16, 2018 By Andrew Smith

Pentagon negotiators have in recent months become more unpredictable and willing to ignore precedent, Lockheed Martin’s CFO said last week.  The seemingly new approach has slowed down talks on the latest batch of F-35 fighter jets and even on other weapons and gear that the U.S. Defense Department has been buying for decades, Bruce Tanner said.

“It’s not like negotiations were always easy, but I’ll say they were more predictable than they are today,” Tanner said in an interview Monday. “There’s just more things that are being changed or things that you thought were sort of foundational elements of negotiation that maybe weren’t up for negotiation that now seem to be up for negotiation.”

For example, he said, the government now wants companies to eat various costs they once would have been reimbursed for.

“Everyone should be interested in cost reduction, not simply not reimbursing elements of cost that you historically reimbursed,” Tanner said. “That’s a strange way to get cost reduction and, I would argue, a very short-sighted, not helpful, not healthy for the industry and ultimately not healthy for the folks in the Pentagon buying under that strategy to use that approach.”

Keep reading this article at: http://www.govexec.com/contracting/2018/03/lockheed-pentagon-negotiators-are-becoming-more-unpredictable/146432

Filed Under: Contracting News Tagged With: C-130, cost reduction, cost reimbursement, DoD, F-35, Lockheed Martin, major weapon systems, negotiation, Pentagon, technological advantage

DoD finalizes rule expanding contractor rights in technical data

October 7, 2016 By Andrew Smith

US DoD logoThe Department of Defense (DoD) has issued a Final Rule that gives added protections to the technical data of privately developed commercial items incorporated into major systems, including major weapon systems.

This rule implements Section 813(a) of the National Defense Authorization Act (NDAA) for Fiscal Year 2016 and modifies 10 U.S.C.§ 2321(f).

In general, a defense contractor’s assertion that a commercial item was developed exclusively at private expense is presumed to be valid, even if the contractor does not respond to a challenge notice from the Contracting Officer.  Prior to the Final Rule, however, this presumption (known as the “Commercial Rule”) did not apply to DoD’s procurement of “major systems” or “subsystems or components of major systems,” unless the technical data related to commercially available off-the-shelf (COTS) items. Thus, without the benefit of the presumption in connection with the procurement of a “major system,” contractors were required to justify their assertion that an item was developed exclusively at private expense if they wanted to restrict the Government’s rights in the underlying technical data.

This exception to the Commercial Rule is known as the “Major Systems Exception.”

Keep reading this article at: https://www.insidegovernmentcontracts.com/2016/09/dod-finalizes-rule-expanding-contractor-rights-in-technical-data-used-in-major-systems/

Filed Under: Contracting News Tagged With: commercial products, Commercial Rule, DoD, Major Systems Exception, major weapon systems, NDAA, rights in data, technology development

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