The U.S. Pentagon struggles to procure affordable weapons due to price gouging by defense contractors, resulting in excessive profits and limited choices.
A 60 Minute investigation revealed that the U.S. Pentagon is struggling to procure the weapons it needs at an affordable price due to price gouging by U.S. defense contractors. The investigation found that the Pentagon overpays for various weapons and components, leading to inflated costs. Former defense industry executive Shay Assad, who spent four decades negotiating weapons deals, highlighted the unconscionable gouging practices by defense contractors. The consolidation of major defense companies and the downsizing of Pentagon employees responsible for contract oversight have contributed to the problem. The lack of competition and oversight has allowed contractors to inflate prices, resulting in excessive profits and limited choices for the Pentagon.