A reorientation of the international security environment and a revolution in military affairs has occurred. As a result, the Defense Industrial Base (DIB)’s controlling policies, practices, laws and the Services’ budgets and requirements priorities do not match present needs. Numerous environmental factors have contributed to this disparity, with the most influential being the rise of a holistic view of security, future unpredictability, the impact of globalization, and changes within the structure of the defense industry. In light of these factors, several important assumptions about the future environment must be made. Our research indicates that a continuation of irregular threats and conflicts will likely occur, and defense budgetary pressures will grow stronger. Concurrently, the rapid growth of technology will continue to complicate how defense issues are approached. All of these issues will be influential factors for twenty-first century defense planning. In order to meet the demands of the future, we recommend that the United States must be able to create an effective, agile, and affordable joint military force by forming a robust, responsive, efficient and innovative DIB. It must also update its policies and practices to permit the effective creation, acquisition management and support of large, complex systems, systems-of-systems and services.
To accomplish these goals, decision-makers must consider and overcome several barriers. On the whole, government policies, processes and management of the defense enterprise are not organized in a manner that would effectively facilitate the transition to a twenty-first century military force. Reductions in the DoD acquisition workforce also make transformation a difficult task, as the skills and people required are not available. Finally,industry trends and government policies have been long focused on a mature industry model that took roots during the Cold War and is a stark contrast from the dynamic requirements of the twenty-first century. Our vision for the accomplishment of our goals requires a focus on net-centric systems-of-systems; the determination to achieve lower costs, faster fielding and better performance for all emerging technologies; a DoD focus on staying ahead; the expansion of best-value competitions; a realization of the benefits of globalization; the recruitment and retention of a high-quality government acquisition workforce; the creation of a world-class logistics supply chain; and a DoD-envisioned, monitored, and incentivized twenty-first century industrial base structure.
American military success in the twenty-first century is dependent upon a transformation of the Defense Industrial Base. Without the necessary changes in policies and practices within the Defense Department and the Defense Industry, the United States will be unable to accomplish future military success, placing American national security in jeopardy. Following our recommendations, we believe the required changes can be accomplished with careful planning and execution.