New Pentagon Report Raises Alarm Over Industry Consolidation, Future of Competition

Feb. 16, 2022

Air Force Magazine

The Defense Department faces a future of high-price, sole-source contracts, reduced innovation, and possible critical shortages if it doesn’t take steps to increase competition and the number of suppliers in the defense industrial base, according to a new Pentagon report. But changing the conditions creating the situation won’t be easy, it said.

To prevent these issues, the U.S. must limit further defense industry consolidation; fix intellectual property issues; attract new businesses to the industry—especially small businesses—and put “sector-specific supply chain resiliency plans” into effect for critical items, ranging from missiles to castings, strategic metals, and microelectronics, according to the report, released Feb. 15.

Source: New Pentagon Report Raises Alarm Over Industry Consolidation, Future of Competition – Air Force Magazine

Pentagon Report: State-of-Competition-Within-the-Defense-Industrial-Base

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