Monopoly of select-few defence companies threatens the US security: Pentagon Report

Washington: – Pentagon has warned in its report that the monopoly of selected few companies in the defence sector is a threat to US security. The report advocates implementing policies to create healthy competition in the defence industry to break the monopoly. The report reveals that there were 51 companies listed as suppliers with the US defence department in the decade of 1990, which has come down to just five today.

The US defence department presented its new report to President Joe Biden. Some issues have been listed in the report. The report warns that the availability of only a few selected sources for the requirements in the defence sector could pose a threat to the missions of the defence department. If an adversary country can influence any of these companies manufacturing specific systems or weapons, it would threaten national security.

Moreover, the report also claimed that the lack of sufficient competition in the defence sector had restricted the research in the sector. Besides, it increases the burden on taxpayers. Small industries also are vital for the economy. The report points out that given takeovers of the smaller companies by the giants in the sector, the number of small industries has reduced by a whopping 40%. The report notes that this leaves a limited number of choices available with the defence department to procure important defence systems.

The report mentioned the five big companies supplying weapon systems, which have a monopoly in their area of operation. Those companies are Boeing, Lockheed Martin, Raytheon Technologies, General Dynamics and Northrop Grumman. While the report is being received, it is reported that Lockheed Martin has withdrawn its proposal to takeover Aerojet Rocketdyne.