U.S. Army Chief Accuses Defense Giants of Overcharging, Vows Procurement Reform

U.S. Army Secretary Dan Driscoll delivered an unusually blunt critique of major defense contractors, accusing them of “conning” the Pentagon and the American public into paying inflated prices for military equipment despite the availability of cheaper commercial alternatives. While concerns over defense overcharging have persisted for years, Driscoll’s remarks marked one of the strongest public rebukes from a sitting government official. He acknowledged that flawed incentive structures within the government had enabled companies to charge exorbitant prices for even basic components.

Driscoll cited past examples, including a $47,000 Black Hawk helicopter screen control knob that could be independently manufactured for just $15, as evidence of systemic procurement issues. He declared that the system “has changed” and vowed that contractors would no longer be allowed to exploit military acquisition processes. The Army is now pursuing a major initiative to streamline procurement and improve cost efficiency across its operations.

As part of a broader Pentagon effort to accelerate technology adoption amid growing global threats, the Army plans to buy at least one million drones within the next two to three years. Rather than relying on traditional prime contractors, the service aims to partner with companies developing commercially adaptable drone technologies. Meanwhile, political pressure on the defense sector continues to build, with Senator Elizabeth Warren recently intensifying calls for military right-to-repair legislation.

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