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Strategic Convergence's avatar

SOCOM's FY25 budget still shows Reaper Shortfall of 12 airframes and no money for the attritable drone line. Paper drones don't clear rooms.

Max's avatar

The premise of the Devine and Slocum piece is pretty weak - the problem is obviously not a lack of competition (because the sole source contractor has every incentive to maximize production at profitable margins, and also because downselects to single-source contracts can result in significantly more aggressive competition on price). The problem is a lack of capacity arising from uneven demand signaling - so the contractor has the incentive but lacks the ability to make more profit by expanding output. I totally agree that second sources should be required and enabled on programs but I would not characterize that as competition if the programs specs are defined and prices are already set.

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