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• Industry leaders call on the Pentagon to fix the way its contract management and audit agencies work together. The white paper from the Aerospace Industries Association says the agencies often make contradictory demands on contractors. And that drives up overhead cost. According to GovExec, the association wants the Pentagon to create a single point of authority on major contracts. The contract management and audit agencies have been under fire. Last week, the defense inspector general released a report critical of the management agency. The report cited problems in the way it provides contractor performance information to its audit counterpart.
• Maryland’s defense contractors might be spared from the brunt of proposed defense budget cuts. Economic experts cited in the Baltimore Business Journal say that’s mainly because the contractors are focused on information technology and equipment…which remain a top focus for the military. While the full extent of the cuts won’t be known until at least September, experts believe the impact will be negligible in Maryland, because programs like cybersecurity probably won’t see any spending reductions. Lockheed Martin, Northrop Grumman, and Science Applications International Corp (or, SAIC) all have Maryland offices that do billions of dollars of business with the Pentagon.

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