US Secretary of Defense Pete Hexet has announced the suspension of all new contracts for the US Army and applications for new programs. This decision has already caused a serious shock in the defense industry, as the delay can take up to several months. About it reports Bloomberg with reference to sources in the Pentagon.
The pause in the conclusion of new contracts is partially related to the need to revise the provisions on diversity, equality and inclusivity in agreements. However, according to sources, the new administration can use this time to evaluate priorities and adjust funding in the defense sector.
It is noteworthy that this decision does not affect the implementation of the contracts already concluded, and existing agreements continue to be executed unchanged.
According to Bloomberg Analysis, in the 2024 financial year the US Army expenditures on non -classroom contracts amounted to $ 113.8 billion.
The Pentagon confirmed the fact of reviewing the contractual activity, but did not provide additional details about specific causes and terms of the pause.
This decision calls into question the pace of development of new defensive projects, and can also affect the government's further expenditures on the country's defensive needs.