Download or read book DOD Policy on Defense Industry Mergers Acquisitions and Restructuring written by United States. Congress. House. Committee on Armed Services. Oversight and Investigations Subcommittee and published by . This book was released on 1995 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 Industry Restructuring Cost and Savings Issues written by and published by . This book was released on 1997 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report discusses the General Accounting Office's work on the costs and savings associated with defense industry restructuring. The issue of whether the Department of Defense (DOD) should be paying defense companies for restructuring costs associated with acquisitions and mergers has been a controversial one-and one that is not well understood. Provided is a brief overview of DOD's decision to pay restructuring costs; the process DOD uses to ensure that paying restructuring costs is in the government's best interest, and the amount and nature of costs that DOD has paid and estimates of savings it has realized.
Download or read book Defense Industry Consolidation written by David E. Cooper and published by . This book was released on 1994 with total page 3 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Industrial Base written by United States. Government Accountability Office and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: DOD has reported that consolidation of its suppliers through M&A is a key risk imperiling the health and resilience of the defense industrial base. While M&A may create benefits, such as improving a supplier’s financial health, they may also reduce competition and increase the risk of higher costs and reduced innovation. To help manage these risks, DOD has established a process for assessing the potential effects of defense-related M&A. Under certain circumstances, DOD also provides input to the federal antitrust agencies, which review and, when necessary, take action to mitigate competition risks from M&A. Congressional reports included provisions for GAO to evaluate DOD’s efforts to assess the effects of M&A on the defense industrial base. This report assesses (1) the extent to which DOD has insight into defense-related M&A, and (2) the extent to which DOD monitors the effects of M&A on the defense industrial base, among other things. GAO is making four recommendations for DOD to: provide additional direction on assessing all risks and benefits identified in policy, clarify which defense suppliers’ M&A need to be prioritized for assessment, assess whether Industrial Base Policy’s M&A office is adequately resourced, and require monitoring of identified risks.
Download or read book Impact of Mergers Or Acquisitions of Major DoD Suppliers on DoD Programs written by and published by . This book was released on 1996 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Directive supersedes Deputy Secretary of Defense Memorandum, Antitrust Aspects of Defense Industry Consolidation, May 10, 1995. It establishes policy and assigns responsibilities for assessing the potential impact on DoD programs that might result from a proposed merger or acquisition involving a major defense supplier.
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 Defense Industry Restructuring Updated Cost and Savings Information written by and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In July 1993, DOD changed a long-standing practice and permitted defense contractors to charge restructuring costs to transferred flexibly priced contracts, provided (1) the restructuring costs were allowable under the Federal Acquisition Regulation and (2) a DOD contracting officer determined the business combination would result in overall reduced costs to DOD or preserve a critical defense capability. Concerns over the payment of such costs led Congress to pass legislation requiring that certain conditions be met before DOD reimbursed defense contractors for restructuring-related expenses. The legislation required, in part, that a senior DOD official certify that projections of restructuring savings are based on audited cost data; DOD'S share of projected savings exceeds allowed costs; and the Secretary of Defense reports to Congress On DOD'S experience with defense contractor business combinations, including whether savings associated with each restructuring actually exceed restructuring costs. The Secretary of Defense is currently required by 10 U.S.C. 2325 to determine in writing that the savings will be at least twice the amount of allowed costs or that projected savings will exceed costs allowed and that the combination will result in the preservation of a critical capability.
Download or read book Defense Industry Consolidation Competitive Effects of Mergers and Acquisitions written by and published by . This book was released on 1998 with total page 0 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 Defense Contractor Restructuring DoD Risks Forfeiting Savings on Fixed Price Contracts written by and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Section 818 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103-337) requires us to report periodically to the Congress on the implementation of the Department of Defense's (DOD) policy on defense contractor restructuring. We have issued three reports pursuant to this legislative requirement. This report focuses on DOD's use of contract price adjustment clauses, also called reopener clauses, which can be used to ensure that DOD receives its fair share of contractor restructuring savings on fixed-price contracts awarded to companies involved in a business combination between the time a combination is announced and the time that restructuring savings are reflected in the mechanism used for pricing contracts. Specifically, we discuss (1) DOD'S limited use of reopener clauses for these contracts and (2) the potential benefits of using reopener clauses in future business combinations. As a result of the significant decline in defense expenditures since the late 1980s, defense contractors have been consolidating and restructuring their operations to increase efficiencies and become more competitive in the defense marketplace. Many of the consolidation and restructuring activities resulted from defense contractor acquisitions and mergers. In July 1993, the Under Secretary of Defense for Acquisition concluded that it was in the government's best interest to encourage defense contractors to consolidate and restructure their operations, which was expected to reduce costs to DOD. To achieve that goal, the Under Secretary stated that DOD would pay restructuring costs on contracts transferred as part of a merger or acquisition if the business combination was expected to result in overall reduced costs for DOD or preserve a critical capability that might otherwise be lost.
Download or read book The Changing Shape of the Defense Industry and Implications for Defense Acquisitions and Policy written by and published by . This book was released on 2008 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the mid-1990s, the US defense industry experienced a dramatic wave of consolidation. This paper seeks to establish the statistical facts of defense industry consolidation, including the ways in which it reshaped the industry in the 1990s; the ways in which it may continue to reshape the industry; and the forces that promote or discourage it. It also seeks to consider the implications of consolidation for defense acquisitions and policy. The paper places the events of the 1990s in the broad context of economic and industrial activity spanning almost five decades: 1958-2006. It draws primarily -- and in new ways -- from a contracting data set known as the DD35O and applies standard economic models and tools. The paper finds that consolidation has had its most pronounced effects at the highest levels of the industry; that the process of consolidation has abated, if not reversed itself, in recent years; and that larger domestic and international economic force have been at least as important as DoD budget decisions and policy in promoting consolidation. The DoD has a significant say in what happens in the defense industry but cannot control it.
Download or read book Air Force journal of logistics vol22 no4 written by and published by DIANE Publishing. This book was released on with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Air Force Journal of Logistics written by and published by . This book was released on 1998 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mergers Acquisitions and Other Restructuring Activities written by Donald M. DePamphilis and published by Academic Press. This book was released on 2003 with total page 800 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work includes updated cases and grounded models which reflect the theoretical underpinnings of the field. Expanded usage of key idea section headings enable the student to understand more easily the key point in each section of each chapter.
Download or read book Hearings Before and Special Reports Made by Committee on Armed Services of the House of Representatives on Subjects Affecting the Naval and Military Establishments written by and published by . This book was released on 1993 with total page 1144 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Department of Defense Authorization for Appropriations for Fiscal Year 1998 and the Future Years Defense Program Acquisition and technology written by United States. Congress. Senate. Committee on Armed Services and published by . This book was released on 1997 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book 105 1 Hearings Department of Defense Authorization for Appropriations for Fiscal Year 1998 and The Future Years Defense Program S Hrg 105 37 Part 5 Acquisition and Technology March 11 19 April 10 15 1997 written by and published by . This book was released on 1997 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt:
