{"id":60249,"date":"2022-04-12T16:52:02","date_gmt":"2022-04-12T16:52:02","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2022\/04\/12\/kathleen-hicks-warns-of-substantial-decline-in-defense-industrial-base-competition\/"},"modified":"2026-08-08T00:29:20","modified_gmt":"2026-08-08T00:29:20","slug":"kathleen-hicks-warns-of-substantial-decline-in-defense-industrial-base-competition","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/2022\/04\/12\/kathleen-hicks-warns-of-substantial-decline-in-defense-industrial-base-competition\/","title":{"rendered":"Kathleen Hicks warns of \u2018substantial decline\u2019 in defense-industrial base competition"},"content":{"rendered":"\n

WASHINGTON \u2015 Deputy Defense Secretary Kathleen Hicks<\/a> voiced concerns Tuesday that a \u201csubstantial decline\u201d in competition in the defense-industrial base<\/a>, particularly around small businesses, will complicate the Pentagon\u2019s efforts to capture innovation and value for taxpayers.<\/p>\n\n\n\n

\u201cWe\u2019re down to about five prime contractors, a substantial decline over the years on the small business side in the defense-industrial base,\u201d Hicks told reporters, following an industry roundtable the day before at the National Defense University.<\/p>\n\n\n\n

\u201cWe know in the American economy that innovation largely occurs in that small business community. It\u2019s a huge driver of innovation. So we know we face a problem there. So competition can get us better results. Competition, we believe, will help us manage cost effectively [and] get the best value for the taxpayer.\u201d<\/p>\n\n\n\n

These are familiar themes for Hicks, who previously acknowledged the U.S. defense-industrial base shrank by more than 40% over the past decade. She warned that if the trend continues, the country could lose an additional 15,000 suppliers over the next decade. During Hicks\u2019 confirmation <\/a>last year, she voiced concerns about consolidation and said competition is needed to maintain an edge over China and Russia.<\/p>\n\n\n\n

Last week, Hicks visited Silicon Valley to discuss the Pentagon\u2019s innovation priorities with small businesses in the space sector and academic researchers. Then on Monday, she participated in a roundtable, hosted by Business Executives for National Security, involving more than 130 defense-industrial base executives from large and small businesses.<\/p>\n\n\n\n

And on Tuesday, Hicks said she had heard from companies about bureaucratic barriers to working with the Defense Department and acknowledged small business set-aside contracts must be better enforced by the department\u2019s acquisition workforce.<\/p>\n\n\n\t