In order to preserve a healthy competition between contractors, the U.S. regulators, namely The Justice Department (DOJ) and the Federal Trade Commission (FTC), have joined forces in urging a powerful message towards weapon makers.
Weapons and other defense materials are highly necessary in order for peace and order as well as the protection of the citizens to be met, and in light of such goal, both the DOJ and the FTC are speaking out in a recent joint statement stressing that in order for the defense in the country to be attained, antitrust agencies must be vigilant in their work.
Reuters reports that the message was to keep companies and other weapon makers continue having a good competition, since mergers in the past year have been non-stop with deals being valued at $61.7 billion.
Furthermore, "Many sectors of the defense industry are already highly concentrated. Others appear to be on a similar trajectory," the agencies said in a statement, as per the publication. This would mean that the defense department might have trouble finding the best possible resource for the equipment they are in need of, not to mention the prices that they have to consider.
"Our mission in reviewing proposed defense industry consolidation is to ensure that our military continues to receive the most effective and innovative products at competitive prices in both the short- and long-term thereby protecting our national security, American soldiers, sailors, marines and air crews, and our nation's taxpayers." The agencies said, as per Streetinsider.
According to the news agency, the Department of Defense will closely be working with the Defense Science Board Task Force on Antitrust Aspects of Defense Industry Consolidation to further implement and ensure the healthy competition within the industry.
"Competition is the essential ingredient that leads to high-quality products at lower prices," Chairwoman Edith Ramirez of the FTC said, as per the publication. "This is especially critical when it comes to America's defense industry, which provides the weapons and equipment that our men and women in uniform rely on every day," Ramirez adds.
In light of the joint statement, Defense Department spokesman Mark Wright already revealed that the Pentagon will be retracting its legislative proposal to stop mergers. Meanwhile, all hopes are expected with the recent joint forces by the two agencies, the DOJ and the FTC, Reuters reports.
Ramirez further urged the importance of the message saying "This is especially critical when it comes to America's defense industry, which provides the weapons and equipment that our men and women in uniform rely on every day," Ramirez said, as per Streetinsider.
