Hicks Warns Against ‘Extreme Consolidation’ in Defense Industry

[rangerrebew]

 Hicks Warns Against ‘Extreme Consolidation’ in Defense Industry
 
By Marcus Weisgerber
Global Business Editor
February 2, 2021 05:21 PM ET
 
President Joe Biden’s nominee to serve as the Pentagon No. 2 civilian said she is concerned by the consolidation of America’s weapons makers and suppliers, signaling that the Biden administration could increase U.S. government scrutiny over the merger and acquisition of major defense firms.

The comments by Kathleen Hicks during her Senate confirmation hearing Tuesday could 

“Yes, I am concerned,” said Kathleen Hicks during her Senate confirmation hearing, when asked by Sen. Richard Blumenthol, D-Conn., about the shrinking number of submarine suppliers. “Some consolidation is probably inevitable [because] the Defense Department isn't sized ... in many areas to maintain a large base, but extreme consolidation does create challenges for innovation.”

Eliminating competition could lead to higher priced weapons and stymie innovation, she said.

https://www.defenseone.com/business/2021/02/hicks-warns-against-extreme-consolidation-defense-industry/171811/

[PeteS in CA]

That this has been going on for decades is obvious. But what solutions does this genius offer? What company wants:

* 5-10 year Prototype-to-Production cycles thatmight ...

* ... Lead to nothing or a large contract that ...

* ... Might get drastically reduced or cancelled every Congressional session ...

* ... And regardless of whether the company got a huge contract or nothing at all, requires massive record keeping and years (sometimes decades) of records retention?

Note that 3 of those 4 bullet points - all of which I've observed - are unavoidable. Were I CEO of a company considering going into supplying the DoD the risk-reward ratio would drive me away.