FY2025 NDAA: Defense Industrial Base Policy (CRS Report for Congress)
| Release Date |
Aug. 19, 2024 |
| Report Number |
IN12406 |
| Report Type |
Insight |
| Authors |
Luke A. Nicastro |
| Source Agency |
Congressional Research Service |
Summary:
The defense industrial base (DIB) is the network of organizations, facilities, and resources that supplies
the U.S. government—particularly the Department of Defense (DOD)—with materials, products, and
services for defense purposes. The DIB is large and complex, encompassing private and public entities
engaged in activities ranging from basic research to the assembly and delivery of complete platforms.
Given its role in enabling military operations, the DIB has received attention from Congress as part of the
annual defense authorization process.
During Congress’s consideration of a National Defense Authorization Act (NDAA) for Fiscal Year 2025
(FY2025), much of this attention has focused on the question of whether defense suppliers can reliably
and effectively produce the weapons and equipment needed by DOD. Some Members, executive branch
officials, and industry figures have claimed that achieving U.S. strategic objectives—particularly those
relating to competition with China and security assistance to Ukraine—requires broad improvements to
the industrial base, such as strengthened supply chains and expanded capacity. In analyzing the condition
of the DIB, some industry stakeholders have emphasized what they see as problems with government
management (e.g., allegedly onerous regulatory barriers and an inflexible acquisition system), while
others, including at least one Senator and one executive branch official, have publicly highlighted what
they contend are issues with private industry (such as purported overcharging and corporate
underinvestment in capital projects). For further discussion of DIB-related developments and issues, see
CRS Report R47751, The U.S. Defense Industrial Base: Background and Issues for Congress.
