WASHINGTON — Pentagon contract broker Shay Assad, long regarded as both a champion by watchdogs and a nemesis by industry, has returned to the forefront of defense negotiations. Assad, who possesses an extensive background in defense contracting and pricing, is currently assisting the Air Force in finalizing a contract with Raytheon for AMRAAM air-to-air missiles (AIM-120 AMRAAM).
The ongoing AMRAAM negotiations, which mark Assad’s involvement in his third major program, are reportedly fraught with complexities. These challenges include significant upgrades and a surge in international demand, particularly spurred by Ukraine’s need to arm its newly delivered F-16s. “We have partners all over the world looking to increase their inventories,” said Air Force acquisition lead Andrew Hunter. “Everyone is short of critical munitions and AMRAAM is really at the top of that list for a lot of nations.” Hunter additionally noted the lack of economic order quantity funding, which restricts Raytheon’s ability to make bulk purchases, thus complicating negotiations.
Assad’s return to this highly scrutinized role comes after his tenure as the Pentagon’s director of defense pricing, a position created for him by former Secretary of Defense Ash Carter. His reputation for relentless and aggressive negotiations earned him the informal title of the ‘most hated man in the Pentagon,’ as described by Politico.
According to an Air Force Secretary Frank Kendall, Assad’s role has been instrumental in closing stagnant deals, such as the recent agreement with Boeing on the E-7 Wedgetail rapid prototyping contract. Kendall lauded Assad’s capacity to negotiate for the United States efficiently, likening him to NFL coach Bill Belichick for his unparalleled skill in the field.
The AMRAAM contract represents a critical agreement amidst increasing global military tensions and the escalating need for advanced armaments. With Assad’s extensive experience, including over two decades at Raytheon rising to senior vice president of contracts, his involvement is expected to provide valuable insights and aggressive negotiation strategies to secure advantageous terms for the Air Force.