Executive Summary
This thesis from the Naval Postgraduate School examines whether the extensive consolidation of the U.S. defense industry from 1985 to 2007 led to a significant reduction in weapon systems cost growth. Utilizing Selected Acquisition Reports (SAR) data, it assesses if consolidation improved efficiency for the DoD or if further acquisition system restructuring is needed. The study aims to identify trends and patterns in major defense acquisition programs (MDAP) cost growth.
Why It Matters
Defense and geopolitical analysts should care about this document as it critically evaluates the economic efficiency and strategic implications of defense industry consolidation on weapon systems acquisition costs, directly impacting national defense budgets and capabilities.
Key Takeaways
- Defense industry consolidation did not demonstrably reduce weapon systems cost growth, suggesting potential inefficiencies in the acquisition system.
- The study highlights the need for potential restructuring of the defense acquisition system to address limited competition and rising costs.
- Selected Acquisition Reports (SAR) are a critical data source for analyzing cost trends in major defense acquisition programs. This thesis uses SAR data from 1985-2007.
Strategic Relevance
This thesis directly addresses the strategic and economic implications of defense industrial base structure on military procurement. Understanding the relationship between industry consolidation and weapon system costs is crucial for national security planning, budget allocation, and maintaining technological superiority. It informs policy decisions regarding competition, acquisition reform, and the long-term sustainability of defense spending.