The militaryâs chief weapons buyer took to the TV airwaves this week to expand further on his message that the defense prime contractor landscape should remain in its current composition and also addressed the research-and-development environment.
Frank Kendall — deputy defense undersecretary for acquisition, technology and logistics — told CNBC reporter Jane Wells in an interview aired Thursday he understood some of the indicators and pressures that could lead some large firms to seek out a potential consolidation move but that may ânot necessarily (be) best for the government to have that happen.â
âThis trend towards consolidation through mergers.. a tool that would give us a national security basis for intervening would be useful, â Kendall said to CNBC.
“I’m working with my staff and will be working with Congress to make some recommendations on what to do along those lines.”
Kendall also called on industry to invest more in technological R&D initiatives in light of moves some large contractors have made to repurchase shares as they seek to return capital to stockholders and boost their earnings per share.
âI would personally like to see themâ¦ get ready for the next round of defense budget increases which is eventually going to occur, â he said.
Kendall will keynote the Potomac Officers Clubâs âDefense Research and Developmentâ summit Dec. 2 to kick off a half-day event that will also feature’s acting principal deputy assistant secretary for research and engineering.
Click here to register now and save your seat for this timely event.
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