Defense contracting getting more competitive

Air Force Capt. Bachelor - a KC-10 Extender aircraft pilot
Air Force Capt. Bachelor – a KC-10 Extender aircraft pilot

by Tom Gerbe – Defense Information Analyst – BidLink.net

With the fiscal cliff rapidly approaching, defense contractors will need to become more competitive as defense budgets shrink.  BidLink recently analyzed defense spending by competition from 2003-2012 and discovered that almost half of the contracts awarded from the Defense Department were not competed.

Defense Spending by competition FY 2003-2012

This pattern varied by industry with makers of large systems including aircraft dominating markets, while manufacturers of clothing, refrigeration equipment and replacement parts experience a more competitive environment.

Competitive initiatives taking hold

The Defense Department is committed to increasing competition by delivering more contracts to small businesses.

Percentage of competition for defense contracts by year 2003-2012
Percentage of competition for defense contracts by year 2003-2012