Defense Procurement Practices in the Aerospace Industry: Do They Promote Efficiency?

Author

Carol Adams Croft, Fontbonne College

Year of Award

1987

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

Government, Defense Contracts, Aerospace, Private Sector, McDonnell Douglas, Aircraft

Abstract

In recent years, the Department of Defense and the defense industry have suffered an image disaster in the eyes of the public concerning the allegations and cases of "fraud, waste and abuse". As a result, the defense industry is facing ever increasing rules and regulations from Congress regarding the procurement process. These rules and regulations are adding to the burden of an inefficient procurement system.

In an attempt to make the procurement process less vulnerable, Congress has demanded that it become much more competitive. Defense contractors are required to competitively bid with or against other companies for all defense contracts. Sole-source procurement contracts are being drastically reduced by the Government and dual-sourcing and teaming are becoming more popular. Contracts are being awarded to the company who can offer the most advantageous contract to the government, however, price still plays a major role.

This thesis is about Defense Procurement Practices in the Aerospace Industry. It outlines the history of the procurement process in the United States and discusses how American values and attitudes play an integral role in the process. The procurement process is explained in detail and is contrasted with the techniques of private industry.

The paper looks at competition in relation to production rates and capacity utilization. Depending on production and capacity utilization a company's productivity, efficiency, and price may fluctuate. It discusses government controlled procedures and the impact they have on the defense industry. A comparative analysis is done between the defense industry and private industry on topics such as span of control, accountability, flexibility, innovation, risk and return, competition, research and development, and philosophy. Finally the paper examines what approaches can be taken to revitalize the defense industry and assure that the U.S. will maintain its commitment to the national security of the United States of America.

Document Type

Restricted Thesis

Recommended Citation

Croft, Carol Adams, "Defense Procurement Practices in the Aerospace Industry: Do They Promote Efficiency?" (1987). All Theses, Dissertations, and Capstone Projects. 572.
https://griffinshare.fontbonne.edu/all-etds/572