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DoD Acquisition Chief to Industry: Reduce Overhead

Nov. 7, 2013 - 03:45AM   |  
By MARCUS WEISGERBER   |   Comments
Frank Kendall, US undersecretary for acquisition, technology and logistics, urges industry to trim overhead.
Frank Kendall, US undersecretary for acquisition, technology and logistics, urges industry to trim overhead. (Staff)
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WASHINGTON — The Pentagon is reducing its overhead and it expects the defense industry to do the same.

There is an “interest in doing some more work on reducing overhead,” said Frank Kendall, US Defense Department undersecretary for acquisition, technology and logistics. He has asked industry to provide inputs “on things that are adding cost but not adding value.”

Kendall, who has been pushing major changes to the DoD acquisition enterprise for the past two years, made the comments Thursday at a Center for Strategic and International Studies event.

A team being run by Katrina McFarland, assistant secretary for acquisition, will oversee this effort.

“[I]t’s about improvement and specific things we can do to move us forward in the right direction,” Kendall said. “I’m hopeful that we’ll get some good results out of that and drive some unnecessary overhead out of the system.”

DoD has worked to reduce overhead spending for years. Defense Secretary Chuck Hagel announced in July that DoD would scale back headquarters staffs and spending by 20 percent in coming years.

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