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Defense contractors are facing potential financial and contractual penalties for production delays as the Pentagon shifts its acquisition priorities towards throughput and industrial readiness. Experts from The Chertoff Group emphasize that firms failing to meet operational demands may be labeled underperforming, leading to remediation plans and increased scrutiny, particularly regarding shareholder distributions and executive compensation. The upcoming 2026 Defense R&D Summit will explore the implications of these changes on delivery and readiness in the defense sector.