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Faced with limited budgets and aging weapon systems, the Department of Defense (DoD) is pursuing competitive sourcing (CS) as a way to reduce operating costs and free up resources for its modernization programs. The military has high expectations for its re-energized CS program and programmed over $6.2 billion of savings to procure new aircraft, helicopters, warships, and upgrades to Army ground combat vehicles. However, Congress and the General Accounting Office have criticized this approach and claim the savings are not achievable. An examination of CS programs indicates competition does create savings; however, the timing and magnitude of the savings are not guaranteed.
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