Author: Anthony W. PottsPublisher:
ISBN:
Category : Defense industries
Languages : en
Pages : 20
Book Description
The 1993 policy to promote the consolidation of the United States defense industry began a series of acquisitions and mergers that went beyond the intent of the policy and left the Department of Defense (DoD) in a monopolistic environment. This sweeping reform produced unintended consequences that remain in the market today. There are essentially five major defense contractors who wield tremendous power. These companies account for nearly 70% of defense product sales annually. Defense consolidation has diminished the flexibility required for surge capacity, diminished competitive innovations in products, and reduced competitive pricing based on multiple sources for products. Research indicates that the defense acquisition system can be analyzed on a three part strategic framework comprised of the military, the economy and politics. An understanding of the interrelationship of these three components within the context of the strategic framework can not only provide us insight into how the system will behave given certain inputs, it can also help us to shape the future acquisition system. Recommendations are provided to adjust the current DoD acquisition strategy in order to increase both the effectiveness and efficiency of the defense acquisition system.
