2 ms·
Optionality, even for a monopsony like the Defense industry, is good for the consumer (Pentagon). They still want suppliers to compete. What incentive is there
by gantron 2y ago
Optionality, even for a monopsony like the Defense industry, is good for the consumer (Pentagon). They still want suppliers to compete.
What incentive is there for a company to innovate if the DoD allows their competitors to die out? When it's time to buy a new fighter jet (or whatever else) those acquisitions chiefs want several options, same as any consumer.
The OUSD for Acquisition & Sustainment publishes lengthy analyses on competition within the industry and how to stoke it. [0]
[0] https://media.defense.gov/2022/Feb/15/2002939087/-1/-1/1/STATE-OF-COMPETITION-WITHIN-THE-DEFENSE-INDUSTRIAL-BASE.PDF https://media.defense.gov/2022/Feb/15/2002939087/-1/-1/1/STA...