VIEWPOINT: Mergers, Acquisitions Not the Only Way to Foster Competition in Defense Industry

In This Story

People Mentioned in This Story

Jerry McGinn's latest in NIDA's National Defense Magazine on competition in the defense industrial base presents and how to unlock new levels of competition for Defense.

From the commentary:

  • Competition is the lifeblood of the defense industrial base. Some observers have regarded merger and acquisition activity as a consolidation of the defense industrial base that undermines competition and limits the government’s choices in acquisition. There is little empirical evidence to buttress this contention, however. In many cases, the activities help government contractors scale to enter new or larger markets, thereby increasing competition and decreasing costs to the government.

    A better way to foster competition across the government contracting industrial base is to harness its inherent nature as a monopsony market — where there is only one buyer — and adopt practices that spur recurring competition across the industrial base.

Read the full commentary.