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 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 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 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 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 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 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 Consolidation written by David E. Cooper and published by . This book was released on 1998 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Industry Consolidation and Weapon Systems Cost Growth written by and published by . This book was released on 2008 with total page 101 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis constitutes a survey of the cost growth of the weapon systems acquired by the U.S. DoD Services. It attempts to assess whether the extensive consolidation of the defense industry has led to any significant reduction of the cost growth. The primary data source for the cost of the weapon systems are the Selected Acquisition Reports (SAR), which are published by the DoD for the major acquisition programs. The time period explored is approximately from 1985 until 2007. An overall assessment of the situation of the defense industry today, because of the consolidation, will be made. The ultimate goal of the project is to attempt to reveal if the consolidation has improved efficiency, in terms of the cost growth, thus being beneficial for the DoD, or if further restructuring of the acquisition system is necessary as a response to the new conditions.
Download or read book Analysis of Defense Industry Consolidation Effects on Program Acquisition Costs written by and published by . This book was released on 2007 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: Massive consolidation within the defense industry began after the end of the Cold War. The defense industry felt economic pressures and responded by consolidating at various levels. Merging companies should create a positive synergy by combining the best attributes from each company. This synergy, in theory, should manifest itself in, among other things, a cost savings in defense programs. This thesis examines if cost changes are evident due to consolidation within the defense industry by conducting a regression analysis of Major Defense Acquisition Programs across thirteen broad defense market sectors. The findings suggest that while consolidation may yield savings as a result of synergy, this does not seem to be true for all mergers; they do not always save costs. Furthermore, not every merger experiences a statically significant cost estimate change. Comparison of regression results across all the examined programs suggests that when there is a statistically significant cost change following a merger, that change shows a greater likelihood a cost estimate decrease than an increase. A categorical comparison across defense market sectors, branch of services, prime contractors, and by the company's role during the consolidation experience (i.e., Target or Acquirer) suggest potential trends in cost estimate changes within each category.
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 12 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.
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 The Impact of the Defense Industry Consolidation on the Aerospace Industry written by Judy B. Davis and published by . This book was released on 2006 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Report of the Defense Science Board Task Force on Antitrust Aspects of Defense Industry Consolidation written by United States. Defense Science Board and published by . This book was released on 1994 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: The radical decline in procurement expenditures by the Department of Defense (DOD), expected to decrease by approximately 68% from 1985 to 1995, is resulting in an increase in the number of proposed mergers and joint ventures in the defense industry. The number and size of these transactions is expected to continue to grow. During the past fifteen years, DOD participation in antitrust review of mergers by the enforcement agencies (Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) has been uncoordinated, with the result that DOD often did not participate effectively, or at all, in the review process. DOD has determined that it has a responsibility to participate more actively in merger and joint venture review to ensure that consolidation in the defense industry occurs in a way that protects national security as well as the effectiveness, preservation of a base of skilled personnel, and assurance of efficiency and quality within the defense industry. This Task Force was established by the Under Secretary of Defense (Acquisition and Technology) and the General Counsel of Department of Defense to inform DOD about antitrust analysis of mergers and joint ventures so that it can play a more constructive role in the antitrust review process of the enforcement agencies.
Download or read book The Transatlantic Defense Industrial Base written by Terrence R. Guay and published by Strategic Studies Institute. This book was released on 2005 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This monograph compares the post-Cold War restructuring of the defense industries in the United States and Europe with the aim of understanding the implications for the transatlantic industrial base. We argue that different processes of industrial restructuring and consolidation present obstacles to transatlantic initiatives, and that government policies and conflicting political visions exacerbate the opportunities for collaboration between the United States and Europe. We assess the extent to which the restructuring of the U.S. and European defense industrial bases has uprooted national champions and, assisted by global competition, provided an industrial foundation for more extensive transatlantic cooperation. We conclude by suggesting factors that will shape further restructuring and consolidation in the short- and medium term and making recommendations for assisting the development of a transatlantic, rather than bipolar, defense industrial base.
