Developing a “Build Allied” Approach to Increasing Industrial Base Capacity

Abstract

The war in Ukraine has clearly demonstrated the need for surge capacity in our defense industrial base. Increasing U.S. production of defense systems is part of the solution to this capacity deficit, but engaging the industrial capacity of American partners and allies is a critical, mutually beneficial, and cost-effective approach as well.

The case studies and analysis in this paper illustrate that we clearly have many of the building blocks in place for a robust “Build Allied” approach. There have been and are in development a number of co-development, co-production, second sourcing, licensed production, and sustainment efforts involving our allies and partners. The case study findings show that these successful efforts have largely been driven by strong leadership, focused cooperative efforts, and effective enablers. Moreover, there is clearly an increased appetite for “Build Allied” efforts to meet National Defense Strategy objectives and address defense industrial capacity shortfalls.

The paper’s recommendations focus on strengthening “Build Allied” enablers such as the Australia, United Kingdom, and United States Agreement, the National Technology Industrial Base, and the Defense Exportability Features program, as well as overcoming barriers such as export controls, technology security and foreign disclosure processes, and aspects of the defense acquisition system.