Defense Industry M&A to Get Tougher Pentagon Scrutiny
- Too few suppliers called ‘significant national security risks’
- Part of a broader administration push to stem consolidation
U.S. Capitol
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
The Pentagon plans to toughen oversight of mergers among defense contractors and take other steps to bolster competition in the industry, saying substantial consolidation among suppliers poses a threat to national security.
The Defense Department outlined a series of recommendations in a report released Tuesday to combat what it said was three decades of mergers and acquisitions among contractors that have left the Pentagon reliant on just a handful of companies.