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U.S. Army Secretary Accuses Defense Contractors of Overcharging Military
U.S. Army Secretary Dan Driscoll says defense contractors “conned” the Pentagon into buying overpriced equipment, vowing reforms to allow cheaper, commercially available alternatives.
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by Muhammad Hashir
2025-11-14
U.S. Army Secretary Accuses Defense Contractors of Overcharging Military

Large defense contractors have “conned” the U.S. military into purchasing costly equipment when cheaper commercial options exist, U.S. Army Secretary Dan Driscoll said, marking unusually blunt criticism from a sitting government official.

Speaking to reporters, Driscoll singled out prime contractors who work directly with the government, stating that these companies exploited the Pentagon’s procurement system to charge “astronomical prices.” He also acknowledged that part of the blame lies with government incentive structures that encouraged such overpricing.

Driscoll cited examples like the Sikorsky Black Hawk helicopter, where a $47,000 screen control knob could be independently manufactured for just $15 as part of a full assembly. “The system has changed. You will no longer be allowed to do that to the United States Army,” he said.

The Army plans to streamline its acquisition process as part of a broader Pentagon effort to acquire technology more rapidly in the face of growing global threats. For instance, the Army aims to purchase at least one million drones over the next two to three years, prioritizing companies that produce drones with commercial applications over traditional large defense contractors.

Driscoll’s comments follow increasing scrutiny from lawmakers and accountability advocates, including Senator Elizabeth Warren, who has called for defense industry compliance with military right-to-repair legislation.

The Army’s move signals a shift toward efficiency, cost-effectiveness, and diversification of suppliers, challenging the longstanding dominance of traditional defense contractors in U.S. military procurement.
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