Anduril CEO Brian Schimpf defended the company's government contracts in an October 15 CNBC interview, saying Pentagon bids are evaluated through a structured, competitive process and the company wins on merit. He was responding to ethics questions about co-founder Palmer Luckey's ties to the Trump administration.

Luckey was named to the Defense Department's Project Meridian group days before Anduril announced a shipyard contract worth up to $2.9 billion on October 6. The company also won a multiyear department contract worth up to $20 billion in March, CNBC reported. Both figures are maximum contract values.

The appointments of Luckey and SpaceX CEO Elon Musk to the initiative have prompted questions about executives helping shape defense strategy while their companies receive large government contracts, according to the report.

Schimpf pointed to Anduril's growth under President Joe Biden as part of his response. He said the company had performed strongly during that administration and described himself as a lifelong Democrat with relationships across party lines.