washingtonpost.com  > Print Edition > Business > Articles Inside Business
Primer

Over-consolidation

Sunday, April 24, 2005; Page F03

• In defense policy, what happens to the industrial base when government purchases drop so low that only one supplier is needed to produce a category of weapons systems efficiently.

• A defense industry structure that risks leaving the country dangerously reliant on a single supplier and without the ability to quickly ramp up production in times of war. (See "single sourcing.")

• A strategy for reducing the cost of developing and producing new weapons.

• A pejorative term favored by contractors who might lose out if the Pentagon were to choose a single supplier, along with their supporters in Congress and the military services.

• What the Air Force hoped to avoid by deciding to absorb the full overhead costs of the rocket launch divisions of both Boeing and Lockheed Martin.

• An issue that Congress and the Pentagon will soon have to face with regard to two makers of stealth destroyers, Northrop Grumman and General Dynamics.

-- S.P.


© 2005 The Washington Post Company