Peacetime Adequacy of the Lower Tiers of the Defense Industrial Base: A Project Air Force ReportThis study examines the ability of the lower tiers--the subcontractors and suppliers--of the U.S. domestic defense industrial base to meet the peacetime needs of the Department of Defense in terms of (a) the possibility of too few suppliers; (b) how the conduct of DoD business may be influencing suppliers to leave or stay in government business; (c) how DoD buying practices affect the efficiency of weapon systems acquisition; (d) how the DoD, Congress, and courts interact in policymaking decisions that affect the adequacy and efficiency of the lower tiers. To compile data for the analysis, 13 system program offices were surveyed at two Air Force product divisions: Aeronautical Systems Division and the Space and Missile Systems Organization. Included were 4 communication satellite, 2 missile, and 7 aircraft programs. The authors conclude that fears about peacetime erosion of the industrial base are largely unfounded, but some buying practices do increase costs. |
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acquisition process actions adequate Air Force aircraft programs Appendixes ASPR provisions Boeing brake systems buying practices communication satellite competition components Congress contract administration Cost Accounting Standards CPSR defense business defense contracting defense industrial base defense procurement demand develop and produce developer/producer DoD buyers DoD's dual sourcing effects equipment evidence example Federal Contracts Report formal advertising government buyer implementation incentives increased indicated legislation lower tiers major weapon systems manufacturing Maverick McDonnell Douglas missile multiyear buying negotiated operating original supplier participants particular peacetime adequacy perverse incentives prime contractor privity of contract procedures product line profit program offices program survey programs we surveyed Rand Corporation recent regulations Renegotiation requirements result risks Robert Perry rocket motor Section small firms sources of supply spares SRAM program SRAM-A subcontractor and supplier suggests supplier problems system acquisition Thiokol Traveling Wave Tubes U.S. Steel weapon system programs wheel and brake