ABSTRACT
This chapter emphasizes on specific ways of reforming the defense-industry relationship so as to achieve national security objectives in a more cost-effective manner. It presents the case for achieving that objective by means of a fundamental overhaul of the process by which the defense establishment acquires weapon systems and other specialized equipment. A series of widely publicized shortcomings in specific military procurements arose during the rapid buildup of the 1980s. The Department of Defense (DOD) has tried repeatedly to reform the military procurement process. Between 1983 and 1988 alone, Congress enacted sixteen "micromanagement" types of provisions that complicate the military procurement process. Comprehensive reform requires dividing military procurement into two broad categories: items that can be purchased readily from the private sector, and the acquisition of weapon systems. Maintaining a stable and predictable level of military acquisition is the most powerful incentive to greater efficiency in defense development and procurement activities.
