chapter  1
14 Pages

Introduction and Overview

Defence procurement can take a number of forms. From indigenous projects, through shared development and production, licensed production and offsets, to an off-the-shelf purchase of a foreign design. Each form of procurement offers the purchaser a different degree of industrial involvement with the development and production of the system being acquired. At one end of the spectrum lie offthe-shelf purchases of a foreign system: these yield neither development nor production work for the domestic defence industrial base (DIB). At the other extreme lies indigenous development and production where all work is allocated to domestic firms. Between these two extremes are procurement options where work is shared between vendor and purchaser.