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HOW TO BAIL OUT A DEFENSE CONTRACTOR: CASES ON SECURING A SUPPLY CHAIN IN EXTREMIS
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Journal Article
HOW TO BAIL OUT A DEFENSE CONTRACTOR: CASES ON SECURING A SUPPLY CHAIN IN EXTREMIS
2021
Overview
Since passage of the 2011 National Defense Authorization Act, the Industrial Policy office has also managed the overall Manufacturing Technology (Mantech) program, which since 1956 has separately provided longer term investments in manufacturing processes, techniques, equipment, and workforce training. Some bailouts, particularly those of \"depository institutions insured by the Federal Government, are routine and usually proceed according to a prearranged script.\" [...]any defense ministry that relies on domestic industry for armaments may view the problem as supplier management in extremis. Order No. 13,806, 2017). [...]as in the past, the DoD would seek to save programs, preserve industrial structure, and avoid scandals-just with an expanded and perhaps more conscious plan. In reviewing cases, I identify six means by which the government attempted to bail out the companies in question: a price increase in the contract, a loan guarantee, a direct purchase of the product when the product is not strictly needed, advancing progress payments in the contract, other direct cash payments, and a long-term purchase agreement to increase investor confidence and secure financing.
Publisher
Defense Acquisition University Press,Superintendent of Documents
