EO 14372
Prioritizing the Warfighter in Defense Contracting
National SecurityEconomy & Trade
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Summary
This executive order directs the Secretary of Defense to identify defense contractors that are underperforming on contracts while simultaneously conducting stock buybacks or issuing dividends, and to work with such contractors to improve performance. The order prohibits major defense contractors from conducting stock buybacks or issuing dividends until they demonstrate superior products delivered on time and on budget, with enforcement mechanisms available under the Defense Production Act.
Key Points
- 1Defense contractors are prohibited from stock buybacks and dividend payments effective immediately until they demonstrate on-time, on-budget delivery of superior products
- 2The Secretary of Defense must identify underperforming contractors within 30 days and provide notice, with a 15-day period for contractors to submit remediation plans
- 3The Secretary may enforce compliance through voluntary agreements, the Defense Production Act, and Federal Acquisition Regulations if contractors fail to remediate
- 4The order aims to accelerate defense procurement and increase production capacity by realigning contractor incentives toward warfighter capability and readiness
This summary is for informational purposes only. It may not capture all nuances of the executive order. Always refer to the official text for authoritative information.
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