Analysts Say Pentagon 'Shot Across The Bow' On Consolidation Could Chill Market

By Marjorie Censer / October 1, 2015 at 2:42 PM
Industry observers said this week the Pentagon's opposition to contractor consolidation will likely have a chilling effect on companies seeking to make a deal, while advocates criticized the policy. Pentagon acquisition chief Frank Kendall on Sept. 30 said he is concerned about the declining number of prime contractors as companies merge at an accelerated pace. "The trend toward fewer and larger prime contractors has the potential to affect innovation, limit the supply base, pose entry barriers to small, medium and...

Not a subscriber? Sign up for 30 days free access to exclusive, behind-the-scenes reporting on defense policy and procurement.

Log in to access this content.