Most Department of the Navy (DON) programs cost more to maintain and operate than they do to acquire, so reducing these costs is a great way to free up money for capability expansion. We invite our industry partners to join us in this effort.

A key element in reducing sustainment costs is access to the technical data needed to maintain our advanced weapons platforms. When the DON’s General Counsel convened the Taxpayer Advocacy Project two years ago to identify legal tools to protect the DON’s acquisition and sustainment interests, the team determined that obtaining the technical data for certain aircraft programs would help reduce costs.

In the past, the main components of an aircraft purchase contract were Price per aircraft And Number of aircraft; the requirement to provide technical data to support the aircraft was typically a secondary concern to leadership and, if at all, only under suboptimal conditions for the DON. That is now over. DON contractors now have clear guidance from leadership that acquiring technical data rights is a “must” in our procurement contracts.

Not surprisingly, this was unwelcome news for several aircraft manufacturers with subsidiaries that the DON had to outsource maintenance work that we could not perform ourselves due to a lack of technical data. In fact, this change in the DON’s approach led to very lengthy negotiations in the recent multi-billion dollar purchases of two tactical aircraft types. In each purchase, we were able to negotiate terms that ensured the provision of the technical data needed to more cost-effectively maintain hundreds of new and previously acquired aircraft for decades to come.

We will not hesitate to enforce such conditions through legal means. One example is a recent success by the Marine Corps’ procurement department. In this case, a manufacturer of a new generation of tactical equipment argued that it did not have to deliver several dozen technical data packages necessary to maintain the equipment – even though this was required by contract. After the Marine Corps indicated that it wanted to exercise its legal right to withhold 10 percent of the total contract price – a nine-figure sum – until the data was delivered, the contractor relented and delivered all the data the Marine Corps wanted.

While all of this is encouraging, the DON needs to do better in shipbuilding and ship maintenance—and I know it. Among other initiatives, the Taxpayer Advocacy Project team is looking at whether industry is investing its fair share in the defense industry and a key subsector, the submarine industry, alongside the DON. While we respect the right of corporate leaders to manage their own finances, it is important to question the wisdom of prioritizing dividends and stock buybacks for shareholders over needed investments in underfunded shipyards and delayed shipbuilding programs. As we assess where to go with the many taxpayer dollars Congress has appropriated to support and expand the industry, we are taking a closer look at what contractors are telling the DON, their shareholders, and the public about their own money and investments.

Another General Counsel initiative targets individuals — not just their companies — who commit fraud or poor performance in connection with DON contracts. The DON’s Suspend and Debarment Officer has long had the authority to suspend or debar such companies. The new PINACL (Promoting Individual Accountability) initiative is designed to more closely examine the circumstances of such misconduct in order to identify and hold accountable the specific employees who are actually guilty of misconduct. The goal is to curb such misconduct by jeopardizing the employment of individuals who may be tempted to engage in it.

Another initiative involves the Contractor Performance Evaluation Reporting System, essentially a report card on how each contractor performed on its contracts with the DON. I have directed our contracting officers and procurement attorneys to conduct the process with greater vigor and rigor to ensure that our award process appropriately takes into account the past performance – good or bad – of those competing for our contracts.

One of my enduring priorities for the DON is to enhance strategic partnerships, and that includes partnering with our defense contractors. I call on all of our stakeholders, including our defense contractors and Congress, to continue to make our DON the most lethal and innovative in the world.

Carlos Del Toro is the 78th Secretary of the Navy.