ABSTRACT
The promotion of consolidation in the defence industry was motivated by concerns about fixed costs, particularly investments in physical facilities. The policy in the 1990s thus produced fewer contractors and promoted consolidation. According to a report published by the George Mason University School of Law, ‘The defence industrial base includes hundreds of thousands of domestic and foreign entities and their subcontractors performing work for Department of Defense (DoD) and other federal departments and agencies'. Department of Homeland Security and DoD are responsible for the policy implementation that serves to ensure that the DIB which exists in the US is protected and ready for use in time of need. The US military aligned its resources against a known threat during the Cold War. Since the drawdown of the 1990s and the defence industrial base consolidations, the DoD and members of Congress tried to keep some assembly lines open.
