{"id":54512,"date":"2018-08-13T15:00:52","date_gmt":"2018-08-13T15:00:52","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/08\/13\/fair-competition-not-if-you-look-global\/"},"modified":"2026-08-08T00:04:44","modified_gmt":"2026-08-08T00:04:44","slug":"fair-competition-not-if-you-look-global","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/top-100\/2018\/08\/13\/fair-competition-not-if-you-look-global\/","title":{"rendered":"Fair competition? Not if you look global"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">It\u2019s no secret \u2014 in the U.S., domestic <a href=\"http:\/\/people.defensenews.com\/top-100\/\" target=_blank>defense companies<\/a> have an advantage. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are practical reasons why. Clearly, there\u2019s a need to maintain a healthy industrial base. Related to that, idle production lines are expensive. Nobody wants to sacrifice U.S. jobs, nor would the economy thrive without the billions that filter in from export.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And then there\u2019s lobbyists and political influences. That\u2019s a factor, too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"http:\/\/people.defensenews.com\/top-100\/\" target=_blank><b>See this year\u2019s Top 100 list!<\/b><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Naturally, though, the global community is getting disenchanted. While visiting Europe earlier this year, I spoke to one manufacturer that said the favoritism even in competitions that are in theory open to international players is palatable. In just one example, his company was not granted access to documents tied to the procurement as early as domestic competitors because of the red tape associated with releasing them internationally, delaying the ability to move forward and \u2014 from his perspective \u2014 placing the company at a clear disadvantage. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Or consider the U.S. Air Force\u2019s potential light-attack aircraft competition. It appears that will be a faceoff between Textron\u2019s AT-6 and the A-29 Super Tucano manufactured in a Sierra Nevada Corp.-Embraer partnership. That\u2019s not because other international players didn\u2019t want in. Czech aerospace firm Aero Vodochody was accepted into the first light-attack experiment. But the company didn\u2019t have enough time to push its aircraft through the clearance process to fly in the United States.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CEO remains hopeful, telling one of our reporters at the Farnborough Airshow that he is confident that once the initiative advances to an actual program the U.S. will \u201chave, obviously, a competition,\u201d and that federal acquisition regulations will require the Air Force to give time to test the company\u2019s aircraft. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that\u2019s not really true. In the words of Lt. Gen. Arnold Bunch, the service\u2019s top uniformed acquisition official, \u201cI\u2019m seeing it as a competition between two airplanes.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So what\u2019s the harm? It\u2019s not wrong that in a lot of cases, U.S. companies are the strongest competitors. Even in the light-attack aircraft experiment, Bunch was quite clear that no other offerings except the two final contenders met requirements. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Still, without a truly open market for competition, the potential for overreliance on our own domestic manufacturers exists. Consider the history of the Air Force\u2019s Advanced Medium-Range Air-to-Air Missile, or AMRAAM, production. Because of reliability issues during tests with ATK-manufactured rocket motors in 2010, and no company domestically able to fix the problem, the Air Force didn\u2019t receive deliveries of the missile for two years. Norwegian company Nammo invested more than $12 million of its own money in an alternative rocket motor for AMRAAM, got the Norwegian Air Force to fly the motors to Raytheon\u2019s production facility in Tucson, Arizona, at no charge to the U.S. government in 2011, turned around a two-year production lag, and put the missile program ahead of schedule.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Perhaps the services are learning. The Air Force of course does have international representation in many programs, and among those competing for the trainer, albeit in a partnership capacity. And the U.S. Army\u2019s modernization priorities, none of which can afford to linger in a sluggish acquisition process, have piqued the interest of many foreign companies, banking on an increased chance at playing in the U.S. market. We\u2019ll see if that happens.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And then there\u2019s promising moves from the Navy, which domestically has a very limited number of shipbuilders to choose from. Spain\u2019s Navantia and Italy\u2019s Fincantieri both landed contracts for design work before the Navy selects a design later this year for the future frigate. That means the service\u2019s next surface combatant may be a European design. And it makes sense \u2014 as Lexington Institute\u2019s Dan Goure noted, the U.S. has built one frigate in 40 years, while Europeans have been building them for decades. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, Austal USA, Lockheed Martin and General Dynamics are also in the running. So we\u2019ll see what happens.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s no secret \u2014 in the U.S., domestic defense companies have an advantage.<\/p>\n","protected":false},"author":7,"featured_media":4786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":25,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,11,12,36,17,25],"tags":[],"coauthors":[2572],"class_list":["post-54512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-global","category-industry","category-newsletters","category-opinion","category-top-100"],"acf":{"subheadline":"","legacy_arc_id":"KP456CFO35FZTGCAVSOMWFKVQ4","arc_canonical_url":"\/top-100\/2018\/08\/09\/fair-competition-not-if-you-look-global\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Fair competition? 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