Summary: The defense technical and industrial base refers to the people, technical know-how, and facilities used to produce the weapons and equipment needed to defend the United States. This base has three main components: research and development, production, and maintenance and repair, each of which involves government and the private sector. During the current military downsizing, the Pentagon's requirements for new weapons and support equipment will likely be reduced dramatically and the ongoing restructuring of the defense industrial base is expected to intensify. The Defense Department (DOD) has taken the position that free market forces will guide the restructuring of the defense industrial base. GAO has concerns about this strategy because defense contractors tend to be more concerned with maximizing returns for investors rather than with how long-term changes in the defense industrial base might affect national security. In addition, DOD has not been aggressive in assessing U.S. reliance on foreign sources and foreign investment in the defense industrial base.
