SINGAPORE (Reuters) – The number of major U.S. defense contractors has shrunk to the point of becoming a national security concern, according to the U.S. Air Force’s acquisition head, who said his service needed to have more frequent competitions to benefit smaller companies.
The comment came after U.S. President Donald Trump this month expressed concern that United Technologies Corp’s plan to combine its aerospace business with that of Raytheon Co could harm competition and make it more difficult to negotiate defense contracts. The $121 billion deal would be the sector’s biggest-ever merger.
Roper - Assistant - Secretary - US - Air
Will Roper, assistant secretary of the U.S. Air Force for acquisition, technology and logistics, said when his service was formed in 1947, over a dozen companies could make airplanes.
“Right now we are down to just a couple of companies who can build tactical airplanes for us. We need to do everything in our power to start opening up that envelope again,” he told reporters on the sidelines of a defense technology conference in Singapore on Friday.
US - Air - Force - Tenders - Equipment
He said U.S. Air Force tenders for major equipment typically required so much design effort that it was unaffordable for all but the very biggest defense contractors to compete.
“For competition to be positive it has to occur frequently enough that the winners are happy but the losers don’t have to fundamentally change their...
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One of the countries we liberated was Russia, too bad it seems to have cost us our liberty.