Defense gains from public-private cooperation.

• Author: Farrell, Lawrence P., Jr.
• Position: President's perspective - Navy-Marine Corps Industry CEO Conference

The business of defense has always benefited from the continuing dialogue and cooperation between government and industry. Now, as we face rising challenges and opportunities in the national defense arena, it is important that we strengthen this collaboration, in an effort to meet the Defense Department's ambitious goals of transforming the military into an even greater fighting force.

As most of you in the defense community already know, streamlined acquisition and rapid deployment of new technology have become top priorities at the Defense Department. The services have taken on various reform efforts, aimed at shortening the acquisition cycle and lowering the cost of procurement, operations and maintenance of weapon systems.

Furthermore, as the United States confronts a growing price tag for the war on terrorism and looming budget deficits, military programs are tinder mounting pressure to get a bigger bang for the buck.

Industry's role in these reform initiatives is critical and well recognized by the Department of Defense. That point was made clear during the recent Navy-Marine Corps Industry CEO Conference, hosted by NDIA in Norfolk, Va.

The conference, although focused on Navy programs, illuminated enduring issues concerning defense acquisition that, for the most part, could be applied to the other services as well. It was an outstanding conference, characterized by carefully considered industry input and candid exchange between industry leaders and Navy Assistant Secretary John Young, and his RDA staff. The breakout sessions, which addressed a range of issues, were co-chaired by industry and Navy representatives, followed by joint out-briefs.

Most of the issues I will outline are not new, but the Navy's continuing interest in a dialogue with industry is realizing progress and offers the promise of more dialogue. One of the conference highlights in this regard was the Navy's report on issues from the previous year's CEO conference, indicating progress to date and work remaining.

This year's concerns focused on profit, omnibus contracting, supply chain, spiral development, partnering, international programs and improvement of Navy acquisition processes.

In the profit area, one topic of discussion was funding stability. This is a particular concern for industry, which must deliver a return on investment to shareholders and relies on steady funding to maintain a healthy bottom line. Also, there is little incentive for industry to invest...