Secretary of War must identify underperforming defense contractors within 30 days, notify them, and allow 15 days for remediation plan submission approved by the contractor's board.

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directive

The Secretary identifies defense contractors meeting the specified underperformance criteria and provides notice; contractors are given a 15-day period following notification to submit a board-approved remediation plan for Secretary review.

Source summary
President Donald J. Trump signed an executive order directing that U.S. defense contractors prioritize warfighter capability and production over shareholder payouts. The order immediately bars dividends and stock buybacks until contractors consistently deliver superior products on time and on budget, directs the (named) Secretary of War to identify underperforming firms within 30 days, and empowers the Secretary to require remediation plans and use tools including the Defense Production Act and contract enforcement. Future defense contracts must prohibit buybacks/dividends during underperformance and tie executive incentives to delivery and production metrics; the SEC is asked to consider narrowing the buyback safe harbor under Rule 10b-18.
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Next scheduled update: Feb 21, 2026
7 days

Timeline

  1. Scheduled follow-up · Feb 21, 2026
  2. Update · Feb 06, 2026, 10:59 AMin_progress
    Claim restated and timeline: The January 7, 2026 Executive Order "Prioritizing the Warfighter in Defense Contracting" directs the Secretary of War to identify within 30 days (by 2026-02-06) any defense contractors meeting specified underperformance criteria, provide those contractors written notice, and (where lawful) give them 15 days after notice to submit a board-approved remediation plan for Secretary review. Evidence found: The EO text and its Federal Register publication establish the 30-day identification and 15-day remediation-window requirements (EO published 2026-01-07; Federal Register notice 2026-01-13). Multiple reputable legal and industry analyses (Jan 2026) summarize those requirements. However, as of 2026-02-06 there is no public Department of Defense / White House / Secretary-level announcement naming contractors who have been identified, nor press releases from major primes acknowledging receipt of such a formal EO notice. Assessment: Because the EO required on-paper action by 2026-02-06 but no public notices or named-designations are publicly available or reported by major outlets as of that date, the completion condition (public identification and issuance of notice with a 15-day remediation window) cannot be confirmed. It remains possible the Secretary performed internal identifications or confidential notifications, but there is no verifiable public record of such notices or of remediation plans submitted by contractors. Implications and significance if completed: If the Secretary had issued notices and contractors submitted board-approved remediation plans, enforcement could quickly affect stock buybacks, dividends, executive pay, contract advocacy (FMS/DCS), and use of DPA/DFARS authorities; measurable outcomes would include formal restrictions on distributions and documented remediation commitments from affected firms and potentially short-term market reactions. Without public notices, those consequences are not observable. Why evidence may be absent: Identification/notice steps can be administratively handled and temporarily non-public while the Secretary ‘engages as needed’ or negotiates with contractors; agencies sometimes withhold formal steps pending legal review or coordination with SEC/DoJ. Industry advisories and law-firm analyses from January 2026 anticipate such notices but do not report they were issued. Best-effort verdict: in_progress — the Executive Order created an obligation with a clear 30-day deadline, but public, attributable confirmation that the Secretary identified and formally notified specific contractors (triggering the 15-day remediation clock) is not available as of 2026-02-06. Recommended next check: look for DoD/White House press releases, Federal Register notices, SEC filings (8-Ks) from major defense contractors, and statements from affected primes between 2026-02-07 and 2026-02-21 to confirm notices issued and remediation plans submitted or disputes filed.
  3. Scheduled follow-up · Feb 06, 2026
  4. Completion due · Feb 06, 2026
  5. Update · Jan 22, 2026, 10:37 AMin_progress
    The claim concerns an executive order titled “Prioritizing the Warfighter in Defense Contracting,” which directs the Secretary of War to identify underperforming defense contractors within 30 days and to offer a 15-day window for a board-approved remediation plan after notification. The order, issued January 7, 2026, lays out a remediation process, potential enforcement options, and a path to incorporating new contract clauses within 60 days. Publicly available coverage indicates the identification step should begin within the 30-day window and that a remediation submission would be reviewed by the Secretary, but as of January 22, 2026 no specific contractor identifications have been publicly confirmed. The sources emphasize the discretionary and enforcement-heavy nature of the policy, including potential actions under the Defense Production Act and related procurement authorities. Overall, progress appears underway per the order and summaries, but the completion (identifying contractors and completing remediation) has not yet been publicly verified. Notes on timelines: 30 days for contractor identification, 15 days for remediation submissions, and 60 days to insert mandatory future contract clauses are codified in the EO and reflected in subsequent legal analyses. Analysts warn that the criteria for “underperforming” are defined by the Secretary and could be subject to interpretation, with considerable impact on stock buybacks, dividends, and executive compensation. The reporting so far relies on official EO text and reputable legal analyses, with limited real-world corroboration of contractor actions due to the early stage of implementation. Sources consistently describe the core mechanics: identification, notification, remediation window, and enforcement options (including DPA and FAR/DFARS), with the White House page serving as the primary official source. Industry and legal outlets (Holland & Knight, National Law Review) provide breakdowns of the policy implications and likely contractual changes, while coverage cites the same 30/15/60-day framework. The reliability of these sources is high for the policy structure but limited for concrete contractor actions to date. Key milestones anticipated are the 30-day identification, 15-day remediation window, and 60-day contractual-clause rollout, followed by enforcement actions if remediation fails. The public record up to 2026-01-22 does not show certified identifications or remediation plans, indicating the status remains in_progress rather than complete. The policy text itself remains the most authoritative source for the mechanism and deadlines. Reliability note: the White House official EO page provides the primary, authoritative account, while legal-analysis outlets translate the language and potential implications for industry. Given the early stage and lack of contractor-specific confirmations, the assessment is best described as in_progress with upcoming milestones to watch.
  6. Scheduled follow-up · Jan 22, 2026
  7. Original article · Jan 07, 2026

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