Land Combat Systems (formerly Land Domain): –
Opportunities exists to boost innovation in the Land Domain Platforms (LDP) industry, which consists of markets for combat tracked maneuver/fires vehicles, wheeled sustainment vehicles, and medium/heavy vehicles. The end of the wars in Afghanistan and Iraq brought about a downturn in the industry as occurred during the post-Cold War era. However, due to a combination of factors that include rapid technological change, the U.S. strategic competition with China, and the Russo-Ukrainian War, the domestic and international context are in alignment to enact policies that will have long-term, positive effects on the LDP industry. Congress and DoD must work together to set conditions that foster innovation across the LDP industry to improve the production of systems necessary to dominate land domain threats out to 2040 and beyond.
The seminar identified three main areas requiring action to make the industry more responsive and innovative. These areas include creating consistent demand and flattening the lumpiness of the demand cycle, increasing innovation fed by a wide and diverse small business ecosystem, and increasing competition within the industry. Five policy recommendations will enable these ends. First, Congress and the DoD should initiate Security Cooperation program reforms to increase and stabilize the demand signal to the LDP industry. Second, Congress should expand multiyear procurement authorities for critical LDP and components, as multiyear authorities would provide more stability and predictability in demand, enable firms to purchase supplies in greater quantities at lower prices, and encourage capital investment to respond to demand. Third, Congress should provide DoD expanded reprogramming flexibilities to support the development and fielding of innovative and critical LDP. In addition, Congress should raise DoD authorities to reprogram funds in the year of execution and provide the MILDEPs the authority to set up an innovation fund – with its aim to transition key innovative technologies from prototyping to further development and large-scale fielding. Fourth, Congress and DoD should harness the creativity and innovative power of small businesses through Small Business Innovation Research reform. Finally, Congress should reinvigorate antitrust enforcement with regard to mergers and acquisitions within the LDP industry to shield growing businesses from the anticompetitive conduct of large firms, promote industry competition, and support innovation. Protecting growing businesses from the large defense firms that prefer to buy them instead of competing with them is important to a healthy, vibrant LDP industry.
The 2022 National Security Strategy shrewdly observes that the United States is entering a decisive decade that will shape the future of the rules-based international order. Ultimately, these policy suggestions will make the most of this opportunity by energizing the LDP industry to ensure the United States is ready, along with its allies and partners, to dominate in the land domain against any adversary, in any theater, out to 2040 and beyond.
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