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Implementing New Cost Overrun Penalty Poses Challenges for Pentagon

Implementing New Cost Overrun Penalty Poses Challenges for Pentagon
Air Force Secretary Frank Kendall. Photo: DoD.

The Pentagon’s top weapons buyer on Tuesday said the cost overrun penalty proposed in the 2016 National Defense Authorization Act is unlikely to be effective as a way to hold officials accountable for going over budget.If signed into law, the new rule would require a military service to pay a 3 percent fine on any cost overrun for a defense acquisition program. That money would go into a fund for prototyping controlled by the undersecretary of defense for acquisition, technology…

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