Monday, December 8, 2014

Sen. McCain Sets Sights on 'Disgraceful' Cost-Plus Contracts | Defense News |

Sen. McCain Sets Sights on 'Disgraceful' Cost-Plus Contracts | Defense News |

Incoming Senate Armed Services Committee Chairman John McCain wants to prohibit
the Pentagon from award cost-plus contracts, arguing such deals encourage

The Arizona Republican believes US weapon programs like the USS Gerald Ford
were set up with contract structures that bred massive cost overruns. And he’s
hellbent on making sure it doesn’t happen again.

“I go back to Arizona and I say, ‘By the way, we built an aircraft carrier
called the Gerald R. Ford,” McCain said Thursday. “It had a $2.4 billion cost
overrun — and there are still more cost overruns. That is hard-for-me-to-justify
defense spending. It’s disgraceful.”

McCain’s cost-plus feelings are nothing new. But come January, he’ll chair
the Defense Department oversight committee — meaning he will write a Pentagon
policy bill that could contain language on the controversial contracts.

“I’m continuing to try to ban them. All,” McCain told CongressWatch. “There’s
no reason why all shouldn’t be.

“If you don’t ban them, here’s what happens: They come in with a lowball
contract, so they can get the contract, and then that’s why the costs mount,”
McCain said. “If you had a roof that leaked would you ask a guy to come and fix
it with a cost-plus contract?!”