Effective government requires certain functions be performed internally. However, AIA is concerned that broad DOD policy to insource all services is risky for the readiness of weapons systems for the warfighter, the health of the industrial base and the resources of the American public.
We are developing a series of white papers covering topics such as what is good for the warfighter and taxpayer, impact on the industrial base and insourcing vs. outcome-based contracting.
We will publish two papers each month, culminating in a final Impact Report – envisioned for spring 2011 – that will consolidate the discussions within the papers.
AIA supports a national industrial policy that defines the desired core capability needed to fully maintain national skill and capability requirements for the assurance of a ready and controlled source of maintenance. However, noneconomic preferences and supplementary requirements, such as the 50/50 rule that mandate the assignment of an arbitrary fixed percentage of depot dollars to the public sector, do not account for the dynamic environment of the U.S. defense environment nor do they do anything to protect the private sector of the industrial base.
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The Product Support Executive Board is producing a series of briefs assessing the impact of in-sourcing policies enacted by the Department of Defense (DOD). The first in this series examines best practices for producing the most benefit for the warfighter and taxpayer.
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