Anduril CEO defends Trump administration contracts: 'We've done incredibly well under Biden'

Key points

• Anduril CEO Brian Schimpf defended the company's government contracts amid ethics questions over co-founder Palmer Luckey's ties to the Trump administration.
• Anduril announced an up to $2.9 billion shipyard contract on Oct. 6 and won a multi-year DOD contract worth up to $20 billion in March.
• Anduril opened a tender offer to employees in 16 countries this week, valuing the company at $90 billion.

Anduril CEO Brian Schimpf addressed ethics questions over co-founder Palmer Luckey's close ties to the Trump administration as the defense tech giant competes for lucrative government contracts. In an interview with CNBC's "Squawk on the Street" on Thursday, Schimpf said the company has performed well under both parties.

On Oct. 6, Anduril announced an up to $2.9 billion shipyard contract a few days after Luckey was named to a Department of Defense group known as Project Meridian. The company also won a multi-year DOD contract worth up to $20 billion in March.

Concerns over executive roles

The appointments of both Luckey and SpaceX CEO Elon Musk to the initiative have raised concerns over whether executives whose companies get billions in government contracts should play an active role in defense strategy. Schimpf said the DOD has a structured process for evaluating bids and that Anduril wins based on the merits.

Musk has contributed more than $276 million to Republican groups since July, CNBC reported this week. Luckey, who helped raise money for President Donald Trump's 2020 campaign, has donated more than $500,000 to Republican candidates and GOP-aligned groups this year, according to a CNBC analysis of FEC filings.

We've done incredibly well under [President Joe] Biden

— Brian Schimpf

Valuation and future plans

This week, Anduril opened a tender offer to employees in 16 countries that would value the company at $90 billion, five months after it topped a $60 billion valuation. Schimpf said the setup allows Anduril to give liquidity to employees without the distraction of stock price fluctuations.

Luckey has voiced his intentions to eventually take the California-based company public. Schimpf told CNBC in July that Anduril isn't rushing into an IPO, adding that "a bad time" to debut is during a hype cycle. He said the employee tender offer allows the company to stay focused on a massive ramp in defense production over the next couple of years.