Some U.S. defense sectors deserve protection, while others should be encouraged to merge as defense spending slows, a DoD advisory board has recommended.

The Defense Business Board (DBB) report stated that DoD officials should support the consolidation of mid-sized prime contractors and mergers of “primes where demand is limited [e.g. shipbuilding],” in that sector. In small sectors, DoD should “…selectively preserve competition…” by encouraging large prime contractors to promote “healthy, stand-alone companies…”

Other recommendations for DoD include encouraging foreign suppliers to enter the U.S. market. The DBB report also covered the topics; fixed-price contracts and management.

The Defense Business Board is tasked to examine topics of interest to the Department of Defense…delivers its report recommendations to the Secretary of Defense through the Deputy Secretary of Defense. Those recommendations generally are referred to the appropriate senior Defense Department official for action.

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