Rethinking Profit Policy In Defense Acquisition

Rethinking Profit Policy In Defense Acquisition

Despite persistent myth, the average profit margin for defense companies is half the margin for S&P 500 companies.

DoD must be both a better buyer and a better customer.  Instead of the problematic customer it is today, imagine if DoD was the preferred customer of businesses across the country.  DoD would have economical access to the innovation and power of the entire economy.  Imagine what could be achieved then. 

There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain

in its success, than to take the lead in the introduction of a new order of things.

-- Niccolo Machiavelli

Scott Chandler is an Aviation and Acquisition Consultant.

Image: U.S. Air Force