• Recently Passed Defense Bill May Help Tech Companies such as Apple Gain More Contracts



    High-profile tech companies such as Apple could potentially benefit from new and easier military contracts under a bill that was recently approved by the US House of Representatives. According to Bloomberg, a specific part of the bill, which was negotiated by defense leaders in the House and Senate, would make it easier for the Department of Defense to buy commercial technology. As a result, companies like Apple wouldn’t have to share any proprietary pricing information.

    Although the bill is unlikely to pass in its current state, Bloomberg noted that it still has to pass through the Senate, and President Barack Obama has threatened a veto, in part because it would enable $38 billion in one-time war funds as a way of circumventing a 2011 budget deal. Instead Obama appears to be pursuing an alternative budget arrangement, one that would raise the spending ceilings on both civilian and military programs.

    In its current form, the bill would cost the government and taxpayers roughly $611.8 billion, much of which would be funneled towards contractors such as Boeing, Lockheed and Northrop Grumman. It is being speculated that a new version could be submitted in the next few weeks, if Congress and the Obama administration manage to negotiate a compromise.

    Despite the military occasionally using Apple products, there haven’t been too many partnerships or deals for Apple in this space. The Cupertino California company did recently become a member of the FlexTech Alliance though, which is a group of 162 organizations collaborating with the Pentagon on flexible electronics. We’ll have to see how this bill pans out and if it comes in handy for Apple. If so, then the company will have another large source of revenue.

    Source: Bloomberg
    This article was originally published in forum thread: Recently Passed Defense Bill May Help Tech Companies such as Apple Gain More Contracts started by Akshay Masand View original post
  • Connect With Us

  • Twitter Box

  • Facebook