Download or read book Defense Consolidation written by United States. Congress. Senate. Committee on the Judiciary. Subcommittee on Antitrust, Business Rights, and Competition and published by . This book was released on 1997 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Sector Consolidation written by and published by . This book was released on 2005 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: The end of the Cold War brought with it reductions in defense spending, and a realization by many firms that a paradigm shift needed to occur within the defense industry. The defense sector had severe overcapacity, and needed to be consolidated. As defense sector consolidation was taking place, serious questions began to arise. What would happen to the defense industrial base? Would the DoD be required to pay higher prices for goods and services? Would there be an income transfer from taxpayers to shareholders? Very Large, defense focused conglomerates were/are being formed, increasing the bargaining position of the few firms that remain in the market. As the single customer for many products of the defense industry, DoD must have the ability to identify and address potential harmful effects of mergers and acquisitions. The purpose of this thesis is to determine whether consolidation activity within the defense sector yields positive net benefits for shareholders, and more importantly its effect on taxpayers.
Download or read book Defense Industry written by United States. General Accounting Office and published by . This book was released on 1998 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Industry Consolidation Competitive Effects of Mergers and Acquisitions written by General accounting office washington dc national security and international affairs div and published by . This book was released on 1998 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The sharp decline in spending by DOD since 1985 has resulted in a dramatic consolidation in the defense industry. The defense industry is more concentrated today than at any time in more than half a century. As the single customer for many products of the defense industry, DOD must have the ability to identify and address potential harmful effects of mergers and acquisitions. Questions have been raised about whether the consolidation has gone too far-adversely affecting competition in the industry. Many defense industry transactions are recent, and there is little evidence that the increased consolidation has adversely affected current DOD programs. Antitrust reviews have identified some problems, and remedies have been implemented. However, the consolidation could pose future problems unless DOD takes actions to improve its ability to identify problem areas and devise alternative ways to maintain competition in defense acquisition programs. There are several approaches DOD can take to maintain competition. For example, it can design acquisition strategies to compete missions rather than products and direct research and development funding to develop alternative suppliers or technologies. However DOD cannot know what action to take unless it has adequate visibility into the industrial base-especially at the lower tiers. Progress has been slow in gaining that visibility.
Download or read book Easing the Burden written by and published by . This book was released on 1994 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Strategic Framework for the Defense Acquisition System written by Anthony W. Potts and published by . This book was released on 2007 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 1993 policy to promote the consolidation of the United States defense industry began a series of acquisitions and mergers that went beyond the intent of the policy and left the Department of Defense (DoD) in a monopolistic environment. This sweeping reform produced unintended consequences that remain in the market today. There are essentially five major defense contractors who wield tremendous power. These companies account for nearly 70% of defense product sales annually. Defense consolidation has diminished the flexibility required for surge capacity, diminished competitive innovations in products, and reduced competitive pricing based on multiple sources for products. Research indicates that the defense acquisition system can be analyzed on a three part strategic framework comprised of the military, the economy and politics. An understanding of the interrelationship of these three components within the context of the strategic framework can not only provide us insight into how the system will behave given certain inputs, it can also help us to shape the future acquisition system. Recommendations are provided to adjust the current DoD acquisition strategy in order to increase both the effectiveness and efficiency of the defense acquisition system.
Download or read book Evaluating Consolidation and the Threat of Monopolies within Industrial Sectors written by Andrew P. Hunter and published by Rowman & Littlefield. This book was released on 2019-04-01 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economics scholars and policymakers have rung alarm bells about the increasing threat of consolidation within industrial sectors. This paper examines the importance of industrial concentration in U.S. defense acquisition in two ways: first, a direct relationship between concentration and performance outcomes; and second, a mediating relationship, where concentration influences performance through reduced competition for defense acquisition. The study created a large contract dataset incorporating economic statistics on industrial sectors and analyzed it using multilevel logit models. The study finds that subsector concentration correlates with greater rates of termination. Contrary to the hypothesis, competition is associated with higher rates of termination, and only single-offer competition is significantly associated with lower rates of cost ceiling breaches. Taken together, the results are consistent with the literature on the risk of concentration’s connection with market power but also suggest that the mechanisms of competition are worthy of future study.
Download or read book Defense Inventory written by United States. General Accounting Office and published by . This book was released on 1992 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Industry written by United States Accounting Office (GAO) and published by Createspace Independent Publishing Platform. This book was released on 2018-06-12 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Defense Industry: Consolidation and Options for Preserving Competition
Download or read book Consolidation of the U S Defense Industrial Base Impact on Research Expenditures written by and published by . This book was released on 2002 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1993, there were 21 companies doing major defense aerospace work -- today there are five: Boeing, Raytheon, Litton Industries, Lockheed Martin, and Northrop Grumman. The battle for the shrinking defense budget has resulted in not only mergers, but also an increased emphasis on the formation of partnerships among defense contractors. As the defense industry has consolidated, the remaining firms have been forced to cut back on internal research and development (R & D) expenditures and other efforts to innovate due to cost pressures. Should we expect a further reduction in internal R & D efforts by contractors? How does the number of competitors vying for a particular contract affect the overall level of R & D? Does it matter whether we have consolidation via acquisition, mergers, or bankruptcy? The theory described in the model provides clear predictions for partnership behavior as the publicness of the prize they pursue changes. The analysis suggests that when relationships among partners change, the fate of the partnership will tend to change along ways conjectured by Olson and Zeckhauser (1966). That is, the partnership will expend more resources if the spending by one member provides less benefit to the other member. Although the behavior on the part of partnership members didn't follow the predictions exactly as predicted, there is still strong evidence of a reduction in partnership spending as the publicness of the prize increases. Specifically, we observed a reduction of approximately 30 percent in partnership spending as the publicness increased. Additionally, there is an overall decrease of approximately 25 percent in total research expenditures by all firms competing. The experimental results provide fairly strong support for the Olson and Zeckhauser conjecture. The implication of the study is clear -- as defense contractors rely more and more on partnerships, alliances and/or teams, fewer resources can be expected to be devoted to research.
Download or read book The Transatlantic Defense Industrial Base Restructuring Scenarios and Their Implications written by and published by DIANE Publishing. This book was released on 2005 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Industry Consolidation written by United States Accounting Office (GAO) and published by Createspace Independent Publishing Platform. This book was released on 2018-06-12 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Defense Industry Consolidation: Competitive Effects of Mergers and Acquisitions
Download or read book An Initial Look at Technology and Institutions on Defense Industry Consolidation written by and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional wisdom holds that defense industry consolidation resulted from decreased defense spending. However, we maintain that understanding dynamic changes in key defense institutions helps provide a more complete explanation for observed consolidation. Specifically, we examine the interaction of evolving technology and changing institutions. Institutions reviewed include procurement policies, the weapons requirements process, and procurement organizations. We take an initial look at the industry, and highlight how these changes influenced transaction costs in the defense industry, more fully explain the forces driving consolidation, and provide greater insight to policy makers seeking to improve the performance of the defense industry. Further research is needed to build a robust institutional framework of the defense industry and the related government agencies to allow better policy prescriptions.
Download or read book Defense Industry Consolidation Issues Related to Acquisition and Merger Restructuring Costs written by and published by . This book was released on 1994 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: This document discusses the allowability of restructuring costs incident to mergers and acquisitions. The pace of consolidation of the U.S. defense industry has increased sharply this year. In the 16 months between August 1992 and December 1993, the industry experienced 4 large mergers and acquisitions; but, since only the beginning of this year, the industry has seen 5 major combinations of business firms. This dramatic reshaping of the industry involves extraordinarily complex transactions with potentially significant cost, benefit, and risk implications for corporate bottom lines, taxpayer expenditures, and national security capabilities. Therefore, the issues surrounding the allowability of restructuring costs incident to mergers and acquisitions are important and deserve careful consideration and deliberation. Allowing restructuring costs incident to a merger or acquisition is a powerful incentive for defense firms to right-size for the current market. The allowability of costs incurred in performing a government contract is governed by the Federal Acquisition Regulation (FAR). Although there is no cost principle on restructuring costs, the FAR provides specific coverage on some costs incident to a merger or acquisition. For example, organization costs--such as brokers or attorney fees--are unallowable. Likewise, an acquiring company may not include in its overhead accounts amounts for depreciation of acquired assets in excess of the amounts that would have been allowed had the combination not occurred.
Download or read book Defense Consolidation written by United States. Congress. Senate. Committee on the Judiciary. Subcommittee on Antitrust, Business Rights, and Competition and published by . This book was released on 1997 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Industry Consolidation written by David E. Cooper and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Empirical Analysis of the Patterns in Defense Industry Consolidation and Their Subsequent Impact written by Hensel. Nayantara and published by . This book was released on 2007 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The defense industry has witnessed significant consolidation since the end of the Cold War. This paper explores the causes of the wave of defense mergers, as well as their impact. The analysis finds that the frequency of defense mergers is more strongly correlated with overall merger activity in the economy than with DoD outlays. In examining SAR cost data on weapons systems, only 54-64% of the weapons systems' costs were affected following consolidation activity by the primary contractor that made them, of which 39-43% of the systems experienced a statistically significant decrease in their costs, and 14-21% experienced a statistically significant increase. Despite a 2/3 reduction in the number of prime contractors in the fixed wing aircraft sector between 1990 and 1998, about 43% of the systems experienced a statistically significantly lower cost estimate. For the tactical missile category, in which the number of prime contractors also fell by 2/3, 14.3% of the systems indicated statistically significantly higher post-merger estimates and 28.6% of them indicated statistically significantly lower post-merger estimates. Boeing, Lockheed, and Raytheon were among the few main primary contractors in several sectors following the consolidation wave. About 60% of the weapons systems examined in this analysis which were produced by them indicated a statistically significant change in their cost estimates. For Boeing and Lockheed, 50% of the systems exhibited a statistically significant reduction in cost estimates, while, for Raytheon, 40% of the systems experienced a significant cost increase. About 2/3 of the systems made by Lockheed and Martin Marietta manifested significant cost declines following the Lockheed-Martin Marietta merger, and about 1/2 of the systems made by Boeing and McDonnell Douglas experienced a statistically significant decline in cost estimates following the merger. This suggests that, although market concentration levels may have increased in certain sectors, DoD's costs often tended to be lower in the post-merger period for certain weapons systems.
