CSIS Reports
31 total works
Structure and Dynamics of the U.S. Federal Services Industrial Base, 2000-2012
by Gregory Sanders and Jesse Ellman
Published 26 September 2013
In a time of austerity, the U.S. government's reliance on the private sector for a range of services has declined for two consecutive years. Even so, real services contract spending in 2012 remains more than 80 percent above the level in 2000. The CSIS Defense-Industrial Initiatives Group brings eight...Read more
In a time of austerity, the U.S. government's reliance on the private sector for a range of services has declined for two consecutive years. Even so, real services contract spending in 2012 remains more than 80 percent above the level in 2000. The CSIS Defense-Industrial Initiatives Group brings eight years of experience to the task of understanding this industry in flux. This report examines contract factors, like competition, funding mechanism, and vehicle, while also looking at industrial base factors like vendor market share by size and top contractors by total services revenue. The study team then applies this analysis to individual government customers and service areas. The 2000-2012 iteration of the report also significantly updates the policy implications chapter. This section examines the controversial topics of contract size and multi-award contracts to determine what the data say about their ramifications.
U.S. Department of Defense Contract Spending and the Supporting Industrial Base
by David J Berteau, Guy Ben-Ari, and Jesse Ellman
Published 17 November 2012
This report analyzes contract obligations for products, services, and research and development (R&D) by the U.S. Department of Defense (DoD), overall and by its key components (Air Force, Navy, Army and civilian agencies). It thereby seeks to provide an in-depth assessment of the trends currently driving more than half...Read more
This report analyzes contract obligations for products, services, and research and development (R&D) by the U.S. Department of Defense (DoD), overall and by its key components (Air Force, Navy, Army and civilian agencies). It thereby seeks to provide an in-depth assessment of the trends currently driving more than half of all federal contract dollars. The report also includes findings on the industrial base supporting DoD in its missions. The timeframe analyzed extends from 1990 to 2011, and the Federal Procurement Data System (FPDS) is the primary source of data on government contract obligations in this report. In a change from previous reports, FPDS data for DoD are now available from 2000 to 2004, which makes the CSIS research team no longer dependent on Department of Defense Form 350 (DD350) data. Numbers will differ from previous reports due to a change in constant dollars (all dollar figures in this report are in Fiscal Year 2011 dollars and all years are fiscal years) and to continual updates of back-year data in FPDS. However, this difference is never greater than $10 billion between years.
A Case Study for Better Buying Power
by David J Berteau, Gregory Kiley, and Gary Powell
Published 14 August 2012
Affordability is the top challenge facing the Department of Defense (DoD) today, and this challenge is amplified by the uncertain national economic and defense budget environments. Realigning and refocusing Information Analysis Center (IAC) capabilities and products on defense system affordability is an essential task for DoD and Defense Technical...Read more
Affordability is the top challenge facing the Department of Defense (DoD) today, and this challenge is amplified by the uncertain national economic and defense budget environments. Realigning and refocusing Information Analysis Center (IAC) capabilities and products on defense system affordability is an essential task for DoD and Defense Technical Information Center (DTIC) leadership going forward.
Asian Defense Spending, 2000-2011
by David J Berteau, Guy Ben-Ari, and Joachim Hofbauer
Published 5 December 2012
Contract Spending by the Department of State and the U.S. Agency for International Development
by David J Berteau, Guy Ben-Ari, and Jesse Ellman
Published 11 September 2012
This report examines the budgetary trends and trends in contract spending in the Department of State (DoS) and the U.S. Agency for International Development (USAID). The report is divided into six sections, including the introduction and an appendix. Section 2 presents the top line budgets of DoS and the...Read more
This report examines the budgetary trends and trends in contract spending in the Department of State (DoS) and the U.S. Agency for International Development (USAID). The report is divided into six sections, including the introduction and an appendix. Section 2 presents the top line budgets of DoS and the U.S. International Assistance Program (IAP), which also includes the USAID budget, for the years 1990-2011. Section 3 analyzes federal-level funding for international economic assistance and breaks down the contributions by various government agencies. Section 4 examines top-line obligations by agency and the breakdown of spending between products and services. Section 5 analyzes DoS and USAID contract spending using three key contract characteristics: extent of competition, type of funding mechanism, and type of contract vehicle. The last section analyzes the industrial base supporting DoS and USAID, comparing the top 20 contractors in 2006 and 2011. It also presents a breakdown of the industrial base into three size categories (small, medium, and large companies) and compares the market share of each throughout the years 2000-2011.
European Defense Trends 2012
by David J Berteau, Guy Ben-Ari, and Joachim Hofbauer
Published 17 February 2013
This report constitutes the third iteration of a comprehensive assessment of European defense trends undertaken by the CSIS Defense-Industrial Initiatives Group. The report analyzes the demand side (topline and functional defense spending categories) for 37 European countries, the supply side (the European defense, security, and space industrial base), and...Read more
This report constitutes the third iteration of a comprehensive assessment of European defense trends undertaken by the CSIS Defense-Industrial Initiatives Group. The report analyzes the demand side (topline and functional defense spending categories) for 37 European countries, the supply side (the European defense, security, and space industrial base), and the regulatory environment (at the European level) governing defense, between 2001 and 2011. This iteration incorporates newly available data and adds new layers of analysis to create a more thorough assessment of the European defense market. In addition, it presents an analysis of potential future defense spending scenarios in Europe, based on current trends, and offers option sets for relevant stakeholders-national governments, the European Union, and the European defense and security industry-on how to respond more effectively to the key challenges in the European defense market.
Trends in European Defense Spending, 2001-2006
by Wan-Jung Chao, Gregory Sanders, and Guy Ben-Ari
Published 30 June 2008
U.S. Department of Homeland Security Contract Spending and the Supporting Industrial Base, 2004-2011
by David J Berteau, Guy Ben-Ari, and Jesse Ellman
Published 9 January 2013
This report examines trends in contracting by the Department of Homeland Security (DHS) and the contractor base that supports it. It takes an in-depth look at contracts for products, services, and research and development (R&D) in DHS as a whole and in six of its key components: Customs and...Read more
This report examines trends in contracting by the Department of Homeland Security (DHS) and the contractor base that supports it. It takes an in-depth look at contracts for products, services, and research and development (R&D) in DHS as a whole and in six of its key components: Customs and Border Protection (CBP), the U.S. Coast Guard (USCG), the Transportation Security Administration (TSA), the Office of Procurement Operations (OPO), the Federal Emergency Management Agency (FEMA), and Immigrations and Customs Enforcement (ICE).
Federal Research and Development Contract Trends and the Supporting Industrial Base, 2000-2015
by Jesse Ellman and Kaitlyn Johnson
Published 12 October 2016
As the current U.S. defense budget drawdown has progressed, numerous analysts have expressed concern about the ability of the United States to retain technological superiority, particularly given how research and development (R&D) contracting appears to be in serious decline. To examine what has happened within the federal R&D contracting...Read more
As the current U.S. defense budget drawdown has progressed, numerous analysts have expressed concern about the ability of the United States to retain technological superiority, particularly given how research and development (R&D) contracting appears to be in serious decline. To examine what has happened within the federal R&D contracting portfolio, CSIS has analyzed trends in federal contracting. Using federal contract data from the publicly available Federal Procurement Data System, this study explains what has happened to federal R&D contracting and the industrial base that supports it.
Defense Acquisition Trends, 2016
by Jesse Ellman, Samantha Cohen, Andrew Hunter, and Kaitlyn Johnson
Published 28 March 2017
This report is the second in an annual series examining trends in what the U.S. Department of Defense (DoD) is buying, how DoD is buying it, and from whom DoD is buying. This year's study looks in depth at issues in research and development, acquisition reform in the FY2017...Read more
This report is the second in an annual series examining trends in what the U.S. Department of Defense (DoD) is buying, how DoD is buying it, and from whom DoD is buying. This year's study looks in depth at issues in research and development, acquisition reform in the FY2017 National Defense Authorization Act (NDAA), performance of the defense acquisition system, the future of cooperative International Joint Development Programs, and major trends apparent in the activities of the major defense components. By combining detailed policy and data analysis, the study provides a comprehensive overview of the current and future outlook for defense acquisition.
Evaluating Consolidation and the Threat of Monopolies within Industrial Sectors
by Andrew P. Hunter and Gregory Sanders
Published 1 April 2019
Economics scholars and policymakers have rung alarm bells about the increasing threat of consolidation within industrial sectors. This paper examines the importance of industrial concentration in U.S. defense acquisition in two ways: first, a direct relationship between concentration and performance outcomes; and second, a mediating relationship, where concentration influences...Read more
Economics scholars and policymakers have rung alarm bells about the increasing threat of consolidation within industrial sectors. This paper examines the importance of industrial concentration in U.S. defense acquisition in two ways: first, a direct relationship between concentration and performance outcomes; and second, a mediating relationship, where concentration influences performance through reduced competition for defense acquisition. The study created a large contract dataset incorporating economic statistics on industrial sectors and analyzed it using multilevel logit models. The study finds that subsector concentration correlates with greater rates of termination. Contrary to the hypothesis, competition is associated with higher rates of termination, and only single-offer competition is significantly associated with lower rates of cost ceiling breaches. Taken together, the results are consistent with the literature on the risk of concentration's connection with market power but also suggest that the mechanisms of competition are worthy of future study.
U.S.-Canadian Defense Industrial Cooperation
by Kristina Obecny and Gregory Sanders
Published 17 July 2017
This study evaluates the health of the U.S.-Canadian defense industrial relationship, which is critically important as the U.S. Department of Defense expands the national technology and industrial base. The CSIS study team gathered and analyzed a wide range of quantitative data and conducted interviews with government and industry officials...Read more
This study evaluates the health of the U.S.-Canadian defense industrial relationship, which is critically important as the U.S. Department of Defense expands the national technology and industrial base. The CSIS study team gathered and analyzed a wide range of quantitative data and conducted interviews with government and industry officials involved with bilateral cooperation on both sides of the border. In addition to looking at top-level history, legislation, policy, and trends, the study team undertook five sectoral case studies highlighting different aspects of the benefits from and challenges facing bilateral cooperation. The study finds that the benefits to both partners exceed what either could obtain solely by relying only on its own national resources. While the overall U.S.-Canadian defense industrial relationship remains sound, the study team identifies a range of recommendations to enhance its value to both partners.
Acquisition Trends, 2018: Defense Contract Spending Bounces Back
by Rhys McCormick, Andrew P. Hunter, Samantha Cohen, and Gregory Sanders
Published 2 November 2019
This report analyzes the current state of affairs in defense acquisition by combining detailed policy and data analysis to provide a comprehensive overview of the current and future outlook for defense acquisition. This analysis will provide critical insights into what DoD is buying, how DoD is buying it, from...Read more
This report analyzes the current state of affairs in defense acquisition by combining detailed policy and data analysis to provide a comprehensive overview of the current and future outlook for defense acquisition. This analysis will provide critical insights into what DoD is buying, how DoD is buying it, from whom is DoD buying, and what are the defense components buying using data from the Federal Procurement Data System (FPDS). This analysis provides critical insights into understanding the current trends in the defense industrial base and the implications of those trends on acquisition policy.
Implications of Ultra-Low-Cost Access to Space
by Todd Harrison, Andrew Hunter, Kaitlyn Johnson, and Thomas Roberts
Published 3 April 2017
Since the advent of the space age, a primary constraint on military, commercial, and civil space missions has been the cost of launch. Launching objects into space requires substantial investments in launch systems and infrastructure, which has restricted the market to only a handful of national governments and several...Read more
Since the advent of the space age, a primary constraint on military, commercial, and civil space missions has been the cost of launch. Launching objects into space requires substantial investments in launch systems and infrastructure, which has restricted the market to only a handful of national governments and several large private companies. This study explores the possibility of a space industry significantly less constrained by the cost of access to space.
Measuring the Impact of Sequestration and the Drawdown on the Defense Industrial Base
by Rhys McCormick, Andrew P. Hunter, and Gregory Sanders
Published 30 January 2018
The presence of a technologically superior defense industrial base has been a foundation of U.S. strategy since 1945. While the implementation of the budget cuts in the Budget Control Act of 2011 has caused concerns for the industrial base, the resulting debate has been lacking in empirical analysis. The...Read more
The presence of a technologically superior defense industrial base has been a foundation of U.S. strategy since 1945. While the implementation of the budget cuts in the Budget Control Act of 2011 has caused concerns for the industrial base, the resulting debate has been lacking in empirical analysis. The purpose of this research is to measure the impact of the current defense drawdown across all the tiers of the industrial base. This report analyzes prime and subprime Defense Department contract data to measures the impacts of the drawdown by sector to better understand how prime and subprime contractors have responded to this external market shock.
Use of Incentives in Performance-Based Logistics Contracting
by Gregory Sanders and Jesse Ellman
Published 19 April 2018
Traditional contracting is primarily transactional, rewarding contractors when deliveries are made or certain process milestones are met. Performance-Based Logistic (PBL) contracting seeks to base contractor incentives on ongoing performance measures to achieve reliability and cost savings. Key to the success of these arrangements are the incentives that align the...Read more
Traditional contracting is primarily transactional, rewarding contractors when deliveries are made or certain process milestones are met. Performance-Based Logistic (PBL) contracting seeks to base contractor incentives on ongoing performance measures to achieve reliability and cost savings. Key to the success of these arrangements are the incentives that align the interests of the customer and the vendor. This report describes the incentives used in PBL contracts, identifies best practices, and provides recommendations for effective incentives going forward. The study team interviewed PBL practitioners including defense-unique contractors, defense-commercial contractors, and experts who are knowledgeable in the government perspective in the United States and abroad. The team supplemented these interviews by analyzing a PBL dataset of U.S. Department of Defense contracts. Of the four identified categories of incentives-time-based, financial, scope, and other-interviews found that time-based incentives stood out for their reliable appeal and relative underuse in the United States.
This report analyzes contracting for products, services, and research development by the Department of Homeland Security (DHS) and its key components. In provides an in-depth look at trends in DHS contracting since the establishment of the agency and provides an initial picture of the impact that sequestration has had...Read more
This report analyzes contracting for products, services, and research development by the Department of Homeland Security (DHS) and its key components. In provides an in-depth look at trends in DHS contracting since the establishment of the agency and provides an initial picture of the impact that sequestration has had on government contracting and the supporting industrial base. This third edition of the DHS report updates reports from previous years and provides greater depth of analysis. Additionally, for the first time, this year's report examines trends in DHS grant awards, using publicly available data to examine what DHS is awarding grants for, and who is receiving those grants.
U.S. Department of Defense Contract Spending and the Industrial Base, 2000-2013
by Jesse Ellman, Gregory Sanders, and Rhys McCormick
Published 1 January 2014
This report analyzes contracting for products, services, and research & development (R&D) by the Department of Defense (DoD) and its key components. In provides an in-depth look at trends in DoD contracting since 2000, and provides an initial picture of the impact that sequestration has had on DoD contracting...Read more
This report analyzes contracting for products, services, and research & development (R&D) by the Department of Defense (DoD) and its key components. In provides an in-depth look at trends in DoD contracting since 2000, and provides an initial picture of the impact that sequestration has had on DoD contracting and the supporting industrial base. This fourth edition of the DoD report updates reports from previous years and provides greater breadth of analysis. The report examines trends in DoD contracting, breaking down DoD contract spending by a variety of contract and vendor characteristics. The report then uses this data to address key policy questions related to DoD contracting.
Defense Acquisition Trends, 2015
by Jesse Ellman, Andrew P. Hunter, Rhys McCormick, and Gregory Sanders
Published 19 February 2016
This study examines contracting trends at the U.S. Department of Defense (DoD). It relies on empirical analysis of DoD contracting transaction data from the open-source Federal Procurement Data System (FPDS). The authors seek to identify and study emergent trends in the contracting data and marry that analysis with discussion...Read more
This study examines contracting trends at the U.S. Department of Defense (DoD). It relies on empirical analysis of DoD contracting transaction data from the open-source Federal Procurement Data System (FPDS). The authors seek to identify and study emergent trends in the contracting data and marry that analysis with discussion of changing goals and methods for the larger acquisition system.
Designing and Managing Successful International Joint Development Programs
by Gregory Sanders and Samantha Cohen
Published 20 February 2017
International joint development programs are important because of their potential to reduce costs and increase partnership benefits such as interoperability, economies of scale, and technical advancement. While all major development and acquisition programs are complex undertakings, international joint development programs introduce additional layers of complexity in the requirement for...Read more
International joint development programs are important because of their potential to reduce costs and increase partnership benefits such as interoperability, economies of scale, and technical advancement. While all major development and acquisition programs are complex undertakings, international joint development programs introduce additional layers of complexity in the requirement for coordination with more than one government customer, supply chain and organizational complexities resulting from international industrial teaming, and technology control issues. The performance of international joint development programs varies greatly. This study compares the best practices of international joint development and domestic development programs through case-study analysis to identify the key variables that contribute to a program's eventual success or failure and to understand the elements that are crucial to managing these programs.