A six-month investigation by 60 Minutes found that the Pentagon’s difficulty in procuring weapons at an affordable price is due to price gouging by U.S. defense contractors.
Shaya Assad, a former executive vice president and chief contract negotiator for Raytheon, claims that the Pentagon overpays for almost everything, from radars and missiles to helicopters, planes, and submarines. The problem can be traced back to 1993 when the Pentagon encouraged defense companies to merge, leading to 51 major contractors consolidating into five giants.
This consolidation has led to a lack of competition and limited leverage for the government in negotiations. The Pentagon has also cut 130,000 employees whose jobs were to negotiate and oversee defense contracts, leading to less oversight and increased prices.
Watch the full episode at CBSNews.com.