Dual Production Sources in the Procurement of Weapon Systems: A Policy Analysis

Abstract : This report provides a framework to guide decisionmakers involved with the weapon systems acquisition process in determining whether to establish dual production sources on a case-by-case basis. The framework consists of three main parts: the identification of alternative approaches for establishing second sources and implementing dual source competition; a methodology for estimating costs associated with such approaches together wtih a review of both relevant microeconomic theories and prior related systems and an analysis of data on competition in the acquisition of weapon systems; and the identification of risks which dual sources might affect and an assessment of their significance.