Task Group on Assessing the Defense Industrial Base

Abstract : The Under Secretary of Defense, Acquisition, Technology, and Logistics (USD(AT&L)) tasked the Defense Business Board (DBB) to form a Task Group to identify the potential implications for the industrial base of downward pressure on defense budgets. The Task Group was also charged to provide recommendations for key policy and management initiatives to enable the Department to respond, ensuring the industrial base continues to support ongoing operations, meets future needs, and has surge capacity. Specifically, the Task Group was asked to consider the structural changes that defense companies might undergo (e.g., capital source options, mergers, acquisitions, or spin-offs), and summarize the resulting benefits and risks to the Department. The Task Group sought input from companies in the defense industrial base, both service and hardware companies, industry organizations, and DoD stakeholders. The Task Group spoke with the chief executives and senior leaders of these companies and organizations. To encourage candid comments the Task Group promised anonymity to interviewees. Additionally, the Task Group met with the USD(AT&L) during the study to ensure the Group's efforts would meet his expectations. The Task Group presented their findings and recommendations to the full Board on January 21, 2010 (see Appendix B).