Faced with opposition from industry and the chairmen of the Armed Services Committee, the Defense Department on Monday rescinded a plan announced in August to pay contractors less money during the early phases of a contract.

As reported first by Inside Defense and then the Washington Post, both Sens. James Inhofe, R-Okla., and Rep. Mac Thornberry, R-Texas, on Sept. 24 had written to Deputy Defense Secretary Pat Shanahan warning that the “performance” pay plan would harm the military’s technological advancement. They called it “fundamentally flawed” and harmful to national security objectives, according to news reports. (Both committees told Government Executive the letters were not being released.)

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