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CSBA President Articulates Strategy of Assured Access
In the wake of his reelection, President Obama’s first pledge was to focus on “the economy and jobs and moving the country forward.” CSBA President Dr. Andrew Krepinevich believes that America's economic recovery and long-term growth require secure access to three key regions--the Western Pacific, Persian Gulf, and Europe--and to the global commons--space, cyberspace, and the undersea. However, save for Europe, U.S. access to these regions and domains is being increasingly challenged, writes Krepinevich in Strategy in a Time of Austerity: Why the Pentagon Should Focus on Assuring Access, published in the November/December 2012 issue of Foreign Affairs.
Analysis
Strategy in a Time of Austerity: Why the Pentagon Should Focus on Assuring Access
America's economic recovery and growth are impossible without secure access to three key regions --the Western Pacific, Persian Gulf, and Europe--and to the global commons--space, cyberspace, and the undersea. However, in all of these areas, save Europe, the U.S. access is being challenged.
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The Battle for Resiliency in Asia: it’s the hardeners versus the dispersers
It's not yet clear the Obama administration is going to put its money where its mouth is on the pivot to Asia. One example of that fear may be found in the outcome of the debate on basing in Asia that is now being waged inside the Pentagon. As the military rebalances its personnel, assets and resources to the East, it's focused on "resilience" and what it will cost to achieve it. But for all the talk of the pivot, it's not clear the resources are there to back it up.
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Experts Say Sequestration Would Target Civilian Jobs
The potential for layoffs in the defense contracting industry is taking center stage in the congressional showdown on how to avoid the “fiscal cliff,” but experts say that sequestration’s most immediate workplace cuts would be felt by civilian defense employees.
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Analyst: It’s a Myth That Market Competition Drives Down Weapons Cost
Critics of Pentagon waste point to the uncompetitive defense industry — dominated by a handful of conglomerates — as the reason why the U.S. military overpays for weapons. If only there were a truly competitive, free, market, prices would come down, experts have argued.
Analysis
The Effects of Competition on Defense Acquisitions
As defense acquisition costs have soared over the past decade, efforts at reforming the acquisition system have focused intensely on creating more opportunities for competition as a means to reduce costs and incentivize better contractor performance. While competition can, in some cases, reduce costs and improve contractor performance, it is not a cure-all for the problems that plague defense acquisitions. This paper presents a quantitative approach, using game theory to model the effects of competition on contractor pricing. It demonstrates that the way in which a competition is structured can be a determining factor in whether competitive pressure is sufficient to balance the additional development costs of multiple contractors and higher unit costs from splitting the award. Specifically, the way contractors are incentivized to bid (or not bid) depends on the number of rounds of competition, the number of units awarded in each round, and the split in award between the winner and loser for each round. The analysis reveals that in some instances the structure of the competition can actually incentivize contractors to bid higher and drive up costs.