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U.S. Army Chief Accuses Defense Giants of “Conning” Military With Inflated Prices

The U.S. Army’s top civilian leader has issued a rare and stinging rebuke of major defense contractors, accusing them of exploiting government incentives to charge the military vastly inflated prices for equipment that could be produced far more cheaply.

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President Donald Trump arrives to deliver remarks at Fort Bragg, North Carolina on Tuesday, June 10, 2025, during a visit to commemorate the 250th anniversary of the U.S. Army, Tuesday, June 10, 2025. (Official White House Photo by Daniel Torok)

Army Secretary Dan Driscoll said large defense firms had “conned the American people and the Pentagon and the Army,” arguing that long-standing acquisition practices encouraged prime contractors to lock the military into high-cost systems. His remarks mark one of the bluntest public criticisms in years from a sitting official toward companies that supply the world’s most powerful armed forces. For decades, watchdog groups and lawmakers have warned of rampant overcharging in the defense sector, but Driscoll’s comments reflect growing alarm inside the Pentagon over procurement inefficiency at a time of accelerating global threats.

Driscoll cited cases such as a Black Hawk helicopter screen control knob, which the Army says cost $47,000 when purchased as part of a Lockheed-owned Sikorsky assembly but could be produced independently for just $15. He said both industry and government bear responsibility for the broken system, noting that incentive structures created by Washington encouraged spiraling prices and rigid dependence on major contractors like Lockheed Martin, RTX, Northrop Grumman and Boeing. Driscoll vowed that such practices would no longer be tolerated, declaring that “the system has changed” and that the Army intends to overhaul the way it buys equipment.

As part of the shift, the Army is launching a broad initiative to streamline its acquisition processes and accelerate the adoption of new technology. The move aligns with a wider Pentagon effort to reduce bureaucracy and equip the military more quickly, particularly in areas such as drones, cyber tools and battlefield robotics. Reuters reported last week that the Army plans to buy at least one million drones over the next few years, turning not to traditional defense giants but to firms already producing commercially viable systems. Officials say off-the-shelf technology can drastically reduce costs, shorten timelines and prevent the kind of price inflation long associated with bespoke military procurement.

The critique of legacy contractors also arrives amid political pressure for reform. Democratic Senator Elizabeth Warren has intensified calls for right-to-repair legislation for the military, arguing that companies should no longer be allowed to monopolize maintenance and parts. Reform advocates say enabling the military to repair and source components independently—rather than relying exclusively on prime contractors—could save billions.

Driscoll’s remarks underscore a decisive shift in Pentagon attitudes. After decades of dependence on a handful of defense giants, military leaders now appear committed to breaking entrenched procurement patterns and opening the door to cheaper, commercially driven alternatives. The challenge, officials acknowledge, will be transforming a system that has rewarded high prices for generations.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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