Military officials have begun a new initiative to bolster its defense manufacturing business, which is under scrutiny following a series of scandals.
The new Defense Logistics Agency will create a new division of its defense business, according to a statement posted on the Department of Defense’s website.
The Defense Logistic Agency is responsible for purchasing, manufacturing and delivering military goods, supplies, services and equipment to support operations and programs at U.S. installations.
The move is the latest effort by the Pentagon to boost its manufacturing capabilities.
Defense Secretary Ashton Carter announced the launch of a new program, the Defense Logos Innovation Fund, earlier this month.
The agency will also launch a program to support the delivery of military goods to civilian entities through contracts.
The announcement was made in the form of a memo to the Defense Department’s contracting staff.
The memo did not name any specific agencies or companies that will be affected by the reorganization, but the memo said it would include a broad range of “non-defense services” and include the Defense Science and Technology Command, the Department’s Space and Missile Systems Center and the Defense Intelligence Agency.
The newly created agency will work with the Defense Trade and Manufacturing Corporation, a subsidiary of the Department that operates a network of defense manufacturing businesses.
The change follows a series in which defense contractors have been accused of using government contracts for personal gain, while at the same time failing to pay their contractors for work.
The Justice Department has also investigated defense contractors for possible conflicts of interest, including a $1.3 billion contract for a private-sector company to build weapons systems for the U.N. to defend against ballistic missiles.
The White House on Tuesday also launched an investigation into whether the Defense Advanced Research Projects Agency, a Pentagon program to develop defense technologies, is benefiting from government subsidies.
The Pentagon is in the process of restructuring its $300 billion military and other civilian defense industry to streamline operations and increase efficiency.
The reorganization is part of the Defense Acquisition Workforce Transformation, which aims to boost U. S. military and civilian workforce participation and productivity.