Civilmilitary integration (CMI) lies at the core of current DoD efforts to reduce the costs of procuring and maintaining modern weapon systems. Based on an analysis of the commercial aerospace industry and on the experiences of various acquisition reform pilot programs, the authors conclude that a commerciallike acquisition approach could benefit major Air force acquisition programs. The Joint Strike Fighter would be an excellent candidate pilot program for application of acquisition reform measures during engineering and manufacturing development. The authors further recommend that future programs be structured to include greater risksharing between contractors and the government. The principal benefits of CMI for the acquisition reform pilot programs have come from the structuring and management of these programs to make them more like complex commercial product markets in which buyers and sellers establish and achieve price and performance targets in a cooperative environment. The real promise of CMI is to help insert the incentives for price discipline and high performance prevalent in the commercial marketplace into military R&D production.
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Mark A. Lorell is a senior analyst in the international studies group at Rand whose research interests include weapon system acquisition policies and force structure modernization, and Japanese, Korean and NATO military force structure planning/issues, among other international policy studies. Julia F. Lowell (Ph.D., Economics (1992) University of California, Berkeley) is an economist, Rand. Michael Kennedy (Ph.D., Economics, Harvard University) is an associate director, Aerospace Force Development Program, Project AIR FORCE Division, Rand.
This report discusses the Issues surrounding more effective utilisation of the civilian industrial base by the Department of Defence (DoD) and the U.S. Air Force. The first section of the report focuses on the "dual-use" nature of civillan and military industrial bases. The technology area studies, radar-related and other radio-frequency microwave devices, has traditionally been defence-specific. The second section of the report identifies mechanisms for minimising the risks of inadequate product performance and excessively high cost in less-regulated commercial market environments. It discusses how well these mechanisms have worked in a defence-relevant commercial sector - the large transport aircraft industry - as well as in several experimental and pilot programs Initiated by the Air Force and other defence agencies and services.
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