An economic analysis of acquisition opportunities for the United States Department of Defense within the Japanese defense industrial base
Garretty, Eric B.
Franck, Raymond E.
Matthews, David F.
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The Japanese Defense Agency (JDA) and the Japanese Defense Industrial Base (JDIB) are in a transitory period. A recession in the Japanese economy, and an increasing requirement for participation by the Japanese military in regional and global venues has placed unprecedented demands on the JDA. The Department of Defense also finds itself in a transformational period, wherein implementation of acquisition reform initiatives is an imperative. Given this environment, this thesis seeks to both provide DoD Program Managers with a baseline economic analysis of the Japanese Defense Industry and identify potential synergies in U.S. - Japan acquisition efforts. An exposition of the Japanese Defense Industry's composition and status, and a targeted comparison to U.S. defense firms, frames the current acquisition environment. Economic factors at work in U.S. - Japan acquisition efforts are identified through examination of past and current acquisition interfaces such as: the FS-X aircraft co-development program, and the Theater Missile Defense program. Specific and general acquisition opportunities are discussed, and an assessment tool for evaluation of collaboration alternatives is proposed. This thesis finds that acquisition opportunities do exist for DoD within the JDIB, and optimization of these opportunities can facilitate DoD's effort to engage in "best-value" acquisition practices.
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