Industrial base issues on the agenda for 2007.

• Author: Farrell, Jr., Lawrence P.

EVERY YEAR AT NDIA WE ENGAGE IN, an earnest debate about the issues we believe to be critical to the defense community.

Based on input from our members, we have identified six issues that, for all intents, affect everyone who is involved in the business of providing goods and services to the nation's military, homeland security agencies and first responders. As we begin a new year, I believe it is important to highlight these concerns, and to ponder their significance.

Issue 1: Maintaining integrity and responsiveness of the acquisition process.

An equitable procurement process that supports the needs of the war fighter must achieve high levels of integrity and fairness. The acquisition process was designed foremost to be accountable, often at the cost of efficiency. Our national security demands an effective acquisition process that is transparent and ensures the ability of the government to purchase high quality products and services for fair prices.

There is no place in our procurement process for personnel on either side of a transaction that behave in a manner unworthy of public trust. Industry and the government must reinforce high ethical standards in the entire acquisition process. The federal procurement system must support this by enforcing effective checks and balances to eliminate the potential for unethical conduct, on all sides of a transaction.

Issue 2: Promoting defense workforce sustainability.

The Defense Department's acquisition workforce faces considerable challenges. During the next five years, nearly 50 percent of staff with these critical skills will be eligible for retirement. It is important to develop and preserve qualified acquisition personnel. We also need effective training with empowered leadership that supports and rewards acquisition professionals' use of individual judgment in decision making within the regulations. It is also obvious that in the past we have experienced failed leadership in some elements of defense acquisition. Superior leadership continues to be a central element in regaining and maintaining the public's trust in acquisition.

Issue 3: Investing in technology to support the war fighter and maintain readiness.

Funding for ammunition procurement is expected to shrink significantly during the coming years. The Defense Department and industry must begin now to plan the cooperative steps needed to secure a U.S. munitions industrial base. Historically, funding for procurement of ammunition has...