Defense Conversion

By Jacques S. Gansler

Book Overview

Jacques Gansler takes a hard look at the need to convert the industry from an inefficient and noncompetitive part of the U.S. economy to an integrated, civilian/military operation. Author of two widely-read books on the defense industry, Jacques Gansler takes a hard look at the need to convert the industry from an inefficient and noncompetitive part of the U.S. economy to an integrated, civilian/military operation. He defines the challenges, especially the influence of old-line defense interests, and presents examples of restructuring. Gansler discusses growing foreign involvement, lessons of prior industrial conversions, the best structure for the next century, current barriers to integration, a three-part transformation strategy, the role of technological leadership, and the critical workforce. He concludes by outlining sixteen specific actions for achieving civil/military integration. In Gansler's view, the end of the Cold War with the former Soviet Union represents a permanent downturn rather than a cyclical decline in the defense budget. He argues that this critical transition period requires a restructuring of the defense acquisitions process to achieve a balance between economic concerns and national security, while maintaining a force size and equipment modernization capable of deterring future conflicts. Gansler argues that for the defense industry to survive and thrive, the government must make its acquisitions process more flexible, specifically by lowering barriers to integration. This includes, among other things, rethinking the production specifications for new equipment and changing bids for contracts from a cost basis to a price basis. Gansler point out that by making primarily political and procedural changes (rather than legislative ones), companies will be able to produce technology for both civilian and military markets, instead of exclusively for one or the other as has been the norm. This dual-use approach would save the government billions of dollars annually and would enable the military to diversify by utilizing state-of-the-art.

• Format: Paperback
• Language: English
• ISBN: 0262571161
• ISBN13: 9780262571166
• Release Date: August 1996
• Publisher: MIT Press
• Length: 293 Pages
• Weight: 0.85 lbs.
• Dimensions: 0.7" x 6.0" x 9.1"
• Age Range: 18 years and up
• Grade Range: Postsecondary and higher

Customer Reviews

Defense Conversion: A Tough Sell

Dr. Gansler submits that in order to create a responsive and cost-effective defense industrial base to support the XXI force structure there must be revolutionary movement to a civil/military integration. This would mirror the cost cutting and downsizing achieved by the commercial sector in the early nineties. However, this would entail a complete review of the defense industrial base to determine which areas should remain governmental (see GAO report [NSIAD-99-31] Army Industrial Facilities: Workforce Requirements and Related Issues Affecting Depots and Arsenals).The only approved governmental process to privatize the defense base is OMB's A-76 process. Historically, the government agency has proven to be more cost-effective 50% of the time. Gansler's assertion would be received coldly by unions and its congressional allies. An example of the difficulty to reach this integration is the production of a modern day cannon. The Watervliet Arsenal, (a government owned and operated facility) in Watervliet, NY is the sole producer of this commodity in the country. Instead of trying to integrate it into some sort of civilian status would it not be smarter to increase the workload and maintain the skill base.Overall, Gansler provides decisive insight into the workings and relationships of the military/industrial complex. Obviously a must read for anyone involved with defense-related policy.