U.S. Navy Secretary Carlos Del Toro spoke at the West naval conference in San Diego on Feb. 15, emphasizing the importance of contractors delivering weapons, warships, aircraft, and more on time and on budget.
Del Toro called on government contractors to prioritize fundamental investments in the industrial base instead of prioritizing stock prices that drive executive compensation. The message was delivered to a standing-room-only crowd teeming with some of the world’s largest defense contractors.
The defense industry’s financial health is strong, and traditional defense firms outperform commercial counterparts in many key financial metrics, according to a Pentagon contracting study published in April.
Del Toro said the Navy will hold contractors accountable for poor performance, including through a “deep dive” investigation of the most chronic offenders. He emphasized the importance of contracts with the Navy being delivered on time and on budget, stating that the global strategic situation demands it.
