Back to the Future? Second Sourcing in Defense Acquisitions : George Mason University , July 12 , 2023
Back to the Future? Second Sourcing in Defense Acquisitions : George Mason University , July 12 , 2023
From the report: "U.S. efforts to support the war in Ukraine have magnified the importance of supply chain resilience in the defense sector, revitalizing discussions about second sourcing as a tool to strengthen the U.S. defense industrial base. In a government acquisition context, the term “second sourcing” describes the practice of using at least two different suppliers to provide goods and services that are comparable or identical in form and/or function. It is often undertaken when sourcing from a single supplier is no longer a sustainable procurement strategy due to rising demand, rising costs, poor supplier performance, or other external market conditions.
This white paper focuses on the past and future impacts of second sourcing as a practice in U.S. defense acquisition. It examines the feasibility of renewing this method in a procurement environment in which the government remains excessively dependent on single- and sole-source suppliers for major sub-systems and components.
The white paper presents a cohesive definition and potential rationale for second sourcing, placing it in the context of current supply chain issues and threats to the U.S. defense industrial base. After providing a brief summary of other sourcing methodologies used in the defense commercial sectors, the paper then provides a basic overview of the history of second sourcing, followed by a summary of different types of second sourcing—dual-award arrangements, leader-follower arrangements, competitive subcontracting, and company-funded second sourcing. Finally, the white paper analyzes current roadblocks and makes recommendations for modern-day second sourcing strategies."
Authors - Letts, Olivia, McGinn, Jerry, Beutel, RichardSubjects
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