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Defense contractors are bracing for a loss of a portion of their workforce as a result of the Covid-19 vaccine mandate for federal contractors. That loss could negatively impact the Pentagon in the long term.

  • Valerie Insinna, reporter for Breaking Defense, said it is unknown how many employees are refusing the vaccine and probably will not become clear until the mandate goes into effect Dec. 8. She said Raytheon’s chief executive officer estimated that 3% of its workforce will not get vaccinated.
  • Insinna said it is “very possible” that small suppliers could have to shut down or pivot away from defense contracting work if parts of their workforce leave and that there could be production slowdowns and increased costs for the Defense Department.
  • Larger industry associations are working to understand the scale and impact, and many companies are still looking for guidance from the government on implementing the policy and handling exemptions, said Insinna.

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