EconDefense
B-07 / Strategic assessment

Align contractor financial behavior with production performance

Candidate scope gap—legal validation required

Existing pathway

Contract terms/remedies, voluntary agreements and applicable DPA tools can address performance and capacity in defined circumstances.

What remains unresolved

A blanket power for DoD to regulate every defense firm’s dividends, buybacks or executive compensation independently of a valid contractual/statutory nexus has not been established by this review. EO 14372 itself invokes applicable-law limits and separate SEC consideration.

Coordination or legislative question

Test the proposed measure against actual contracts and express statutes before treating it as executable. If broader direct regulation is truly required, define that residual power for Congress or the competent regulator.

Analytical mapping from the cited demand to statutory mechanisms; not a claim that the strategy expressly requests every possible mechanism.

Sources