The concentrated power of big defense firms became an issue when longtime Boeing exec Patrick Shanahan became deputy secretary of Defense, leading some to question whether Shanahan would display favoritism toward Boeing.
Acting Secretary of Defense Patrick Shanahan speaks Jan. 16 at the Pentagon. He's considered a leading candidate for the permanent post.
The concentrated power of big defense firms became an issue two years ago when longtime Boeing executive Patrick Shanahan was confirmed as deputy secretary of Defense. Then in December, President Trump named him to serve as acting Defense secretary. But there was no contract competition based on a set of defined requirements — the way business typically works in the industry, said Richard Aboulafia, aviation analyst at market analysis firm Teal Group.
“The market is more concentrated,” said Mandy Smithberger, director of the Center for Defense Information at the Project on Government Oversight independent watchdog group. “You see the government making decisions thinking about how it will impact industry probably more than they should be.”
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