Will tighter defense budget bring contracts back in house?

Monday - 1/16/2012, 4:16pm EST

Jacques Gansler, former undersecretary of defense for acquisition, technology and logistics

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As the money for defense spending dries up, there's renewed talk about in-sourcing — and how it could save the government money.

But how those calculations are made remains somewhat of a gray area.

Jacques Gansler, former undersecretary of defense for acquisition, technology and logistics, pointed to three recent developments in a recent Federal Times column:

  • The ending of ambitious lead system integrator — or LSI — contracts because of cost and schedule overruns.

  • The in-sourcing of sustainment and support functions, which are not necessarily inherently governmental

  • The decline in public-private competition, as allowed by the Office of Management and Budget document, Circular A-76.

Gansler, the Roger C. Lipitz Chair in Public Policy and Private Enterprise, at the University of Maryland, joined In Depth with Francis Rose to discuss how these three elements, in combination with a tighter defense budget, will affect competition in the contracting world.