Often the term too big to fail is used by government
thinkers when describing the next big bail out. It could be GM, Chrysler or the
Financial Markets. They can’t fail because it represent too much of the America’s
economy. In another arena is the defense industry, when old thinking will put
America at risk and the same notion by government is applied to military
acquisition models where it assumes it needs a competition for the best
military capability in the world.
The US government has assumed the role being the Military Industrial Complex’s (MIC) Maestro. In fact, they have weighed its decision-making based on how a losing bid may be affected and incentivize others keeping them from not participating into future competitions, or securing a prospective bidder so it may not drop out from making any future bid submissions.
The US government has assumed the role being the Military Industrial Complex’s (MIC) Maestro. In fact, they have weighed its decision-making based on how a losing bid may be affected and incentivize others keeping them from not participating into future competitions, or securing a prospective bidder so it may not drop out from making any future bid submissions.
The Defense Department may lose its objectivity towards
selecting new weapons systems, ignoring what would work best. A lost bid participant would become a victim from the Maestro’s nullification process for optimizing MIC while maintaining a bidder's continuos participation.
Therefore, the natural
process of survival of the fittest is no longer a determiner, but instead becomes
dependent of the Maestro’s selection process. This weakens the whole MIC process
into a Jell-O like state.
Boeing lost the F-35 fight to Lockheed-Martin. Boeing
lost the LRSB-21 fight to Northrop, and GE lost several fights to Pratt and
Whitney in Both the F-35 and LRSB-21 programs. However, the Government has a concern about both Boeing and GE as the “losing bidders”, but it refers back to the
acquisition process as the culprit for these MIC loss bid participants.
Boeing is moving
towards a Jell-O state when it comes military ventures. The commercial side has
become its profitable mechanism.
The Maestro has a difficult time making everyone satisfied.
The Maestro has a difficult time making everyone satisfied.
The balancing action for preserving the flying selection process may cloud Maestro objectivity going forward, as it nurtured ignored subcontractors along, rather than defend America to the best of its ability.
Boeing protested the LRSB-21 and the F-35 as the complaining participant. They
have a whole Department of Complaints stocked with lawyers and subject matter
experts for this function.
It’s part of the cost the Maestro must endure for every
award. The LRSB award will have a taxpayer costs associated with Boeing’s
protest, albeit it became a no contest unfolding from the Maestro decision making. It’s part of
the acquisition process and is expected. In fact Boeing beat in receiving a
favorable decision from the Government for its KC-46 tanker project. The
Maestro biffed the award process through inappropriate valuations points towards
Airbus, a foreign bidder for an American war fighting machine.
When the US was seeking a “Hummer” pre Gulf wars, it went
with a homespun machine maker, and did not go with somebody like Mercedes Benz
of Germany. The lesson learned from the KC-46 bid award s that the Maestro must
use American offerings when it comes to making its war machines, and it will rely
on a balanced award process equalizing the bidder reward so they won't disappear from
the government’s manipulations.
The lesson here is that each MIC participant is too big
to fail while each bidder must have an equally capable offering with any other bid, allowing the government for keeping the way for the MIC to remain in balance.
Fortunately, Boeing and GE had an extremely strong private sector businesses
with its commercial aviation, and that allowed the government consecutive awards
for Lockheed Martin, Pratt & Whitney and Northrop issuing its two richest bid awards
without starving out Boeing or GE. The LRSB-21 and F-35 programs were billions,
but the 787 and its engines were billions too. The Maestro put MIC on the couch and
balanced its complex.
Part II Link:
Part II Link:
No comments:
Post a Comment