In the News

The Battle for Resiliency in Asia: it’s the hardeners versus the dispersers
  • October 31, 2012
  • Foreign Policy Magazine

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.

In the News

Experts Say Sequestration Would Target Civilian Jobs
  • October 25, 2012
  • Stars and Stripes

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.

In the News

Analyst: It’s a Myth That Market Competition Drives Down Weapons Cost
  • October 19, 2012
  • National Defense Magazine

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
  • October 19, 2012
  • Published by Defense Acquisition University

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.

In the News

Year-end Spending: Some Units Have It Down Cold
  • October 17, 2012
  • Air Force Times

When the end of the fiscal year comes around, there’s often a mad dash in government offices to use up remaining budget money or risk losing it forever. That’s true in many Air Force units as well.

In the News

Heart of the Battle
  • October 16, 2012
  • Flight International

The US Air Force is developing a new stealth bomber to counter growing anti- access/area-denial (A2/AD) challenges around the world – but the programme faces enormous challenges in the face of declining US defence outlays. The Long Range Strike-Bomber (LRS-B) is part of a socalled “family of systems” being designed to ensure US forces can hold any point on Earth that may be at risk from aerial attack. The Long Range Strike family of systems – particularly the new bomber – is the centrepiece of the Pentagon’s emerging “AirSea Battle” construct/…/

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  • Expert