{"id":43874,"date":"2016-09-12T00:54:37","date_gmt":"2016-09-12T00:54:37","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2016\/09\/12\/three-questions-with-frank-kendall\/"},"modified":"2026-08-07T23:26:16","modified_gmt":"2026-08-07T23:26:16","slug":"three-questions-with-frank-kendall","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/top-100\/2016\/09\/12\/three-questions-with-frank-kendall\/","title":{"rendered":"Three Questions with Frank Kendall"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Since May of 2012, Frank Kendall has served as Under Secretary of Defense for Acquisition, Technology and Logistics (AT&#038;L) \u2013 the Pentagon&#8217;s top acquisitions official.\u00a0 Kendall launched a number of industrial base initiatives, and Defense News asked him to reflect on the state of the defense industry as the Obama administration enters its final months.\u00a0<br\/><u5:p><\/u5:p><br\/><a class=\"\" href=\"http:\/\/www.defensenews.com\/top100-2016\" target=\"_blank\" title=\"Link: null\"><b>Click here for our full coverage of the Defense News Top 100, including our interactive list of companies<\/b><\/a><br\/><br\/><b>How confident are you in the status of the US industrial base right now?<\/b>\u00a0<br\/><br\/>Overall, I think it&#8217;s reasonably healthy. The industrial base kind of goes with the budget in terms of production rates, what we ask them to do and so on. I think it&#8217;s good that we&#8217;re stimulating them with the demonstration projects we started. The Aerospace Innovation Initiative is one of those, there are a number of things I started, the Strategic Capabilities Office is doing a number of things, so that&#8217;s all positive. We&#8217;re challenging engineers, we&#8217;re employing them meaningfully. I&#8217;d like to do more of that, frankly.<u5:p><\/u5:p><br\/><br\/><b>Are you concerned about keeping production rates up?<br\/><\/b><br\/>I&#8217;m a little worried about what happens with sequestration next year, so the\u00a0\u00a0 manufacturing side could be better. But I think it&#8217;s all right. I think the uncertainty that we&#8217;re about to enter into, with a new administration and with possible sequestration in &#8217;18, is something that industry is going to be very concerned about. Overall I think we&#8217;re ok, but I&#8217;m never fully satisfied with where we are.<u5:p><\/u5:p><br\/><br\/>Industry has remained, profit margins have stayed flat or gone up a little bit in the last several years. So I think we have kept our commitment to industry to not have a &#8216;War on Profit.&#8217; Sales have come down because budgets have come down, but I think we have worked with industry to craft win-win business deals where they maintain profitability but we also got better results, and that is what our goal was.<u5:p><\/u5:p><br\/><br\/><b>You&#8217;ve expressed concern about M&amp;A activity at the prime level, but there is a decent amount occurring at the lower levels. Any worries there?<\/b>\u00a0<br\/><br\/>We look at that. We look at all the M&#038;A activity to make sure it&#8217;s competitive or will change the structure in a way that&#8217;s not good for the country, but we do that more on a case by case basis. There&#8217;s been some. We just had the Leidos\/Lockheed Martin services deal, which we didn&#8217;t see a problem with. We look at it case by case. I don&#8217;t know that I see a big acceleration in it, but it&#8217;s possible. I think the continuing uncertainty of budgets has been a damper for a long time on M&#038;A activity and I think it will stay that way for a while.\u00a0<u5:p><\/u5:p><br\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since May of 2012, Frank Kendall has served as Under Secretary of Defense for Acquisition, Technology and Logistics (AT&#038;L) &#8211; the Pentagon\u2019s top acquisitions official.  Defense News asked him to reflect on the state of the defense industry as the Obama administration enters its final months.<\/p>\n","protected":false},"author":7,"featured_media":59771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":25,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[25],"tags":[],"coauthors":[3378],"class_list":["post-43874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-100"],"acf":{"subheadline":"","legacy_arc_id":"5P2VBJ3TQ5DJHAIISAWHV6WFJM","arc_canonical_url":"\/top-100\/2016\/09\/12\/three-questions-with-frank-kendall\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Three Questions with Frank Kendall - Defense News<\/title>\n<meta name=\"description\" content=\"Since May of 2012, Frank Kendall has served as Under Secretary of Defense for Acquisition, Technology and Logistics (AT&amp;L) - the Pentagon\u2019s top acquisitions official. Defense News asked him to reflect on the state of the defense industry as the Obama administration enters its final months.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/one.sightlinemg.com\/defensenews\/top-100\/2016\/09\/12\/three-questions-with-frank-kendall\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Three Questions with Frank Kendall\" \/>\n<meta property=\"og:description\" content=\"Since May of 2012, Frank Kendall has served as Under Secretary of Defense for Acquisition, Technology and Logistics (AT&amp;L) - the Pentagon\u2019s top acquisitions official. 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