Analysis of Defense Products Contract Trends, 1990-2014

Abstract

Existing research on defense products contracting shows a marked focus on large and highprofile programs that qualify as Major Defense Acquisition Programs (MDAPs). In an effort to fill a gap in the literature of product contracting, CSIS has launched this study an analysis of trends in DoD products contracting covering all contracting types, key components accounts, and categories of products. Looking at the period from 1990-2014, this report presents initial results and focuses on three notable questions: How have rates of effective competition differed between different categories of products throughout the period? How have the industrial bases for different categories of products changed since 1990? And how did sequestration and its aftermath affect DoD products contracting? Additionally, this report identifies notable data quality issues with both the Federal Procurement Data System and DD350 data to aid future research. The main findings of this initial inquiry are threefold: first, that Last Supper industry consolidation has affected the vendor size mix and levels of competition in the defense products industrial base to this day; second, that sequestration has had profound effects on what products the DoD buys; and third, that contracting trends vary significantly for the various DoD components and categories of products.