AuthorIvan W. Bilaniuk and Nathaniel E. Castellano
Chapter 1
Ivan W. Bilaniuk and Nathaniel E. Castellano
I. International Procurement
Declines in US federal spending force US government contractors to compete for fewer
domestic opportunities and provide an additional incentive to look abroad. US contractor interest
in international procurement remains high, in part, because of the recent period of decline in US
federal spending. Growing foreign procurement markets offer significant potential opportunities
but also increased risks that US contractors are well advised to identify and manage.
The trend of increased opportunities in foreign procurement markets seems likely to
continue for some time, driven in part by the momentum of geopolitical developments such as: a)
the continued threat of the Islamic State of Iraq and Syria (ISIS) in the Middle East and the
activities of other terrorist organizations; b) Russia’s disturbing of the post-WWII European
security order with its invasion of Ukraine and attempted annexation of Crimea; c) Russia’s use
of hybrid warfare strategies in Ukraine and the West; d) continued instability in the Middle East;
e) uncertainty as to the stability of the European Union (EU); f) territorial disputes and shifting
alliances in the South China Sea; and g) tensions on the Korean peninsula.
The US policy in recent years of avoiding deployment of traditional military force abroad
is likely to encourage other countries to invest more in their own national security. These
national security threats will fuel global demand for defense products and services as well as a
wide range of information technology (IT) products, services, and physical infrastructure with
national security implications.

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