Arlington, Va. – In case you missed it, this week, Eric Fanning, President and CEO of the Aerospace and Defense Policy Coalition Institute (APA-CI), testified before the House Armed Services Committee during a hearing aimed at strengthening the defense industrial base and its supporting ecosystem. Here are eight key takeaways from the hearing.
Watch the hearing here and access his written testimony here.
- An All-Encompassing Approach to Acquisition Reform is Essential.
“The defense industrial base comprises a complex ecosystem of companies, and Congress should undertake an ‘all-of-the-above’ approach to reforming the acquisition process—empowering the entire base to better meet the needs of the warfighter and the nation. We must ensure the system supports the whole industrial base—primes, new entrants, suppliers, and commercial companies of all sizes.” - Transforming Acquisition Processes Will Accelerate Capabilities for the Warfighter.
“While quick fixes exist, such as regulations that can be modified immediately, a comprehensive evaluation of the entire system is imperative. This system has been built over many years in a cumulative fashion, and unfortunately, there is no single solution to fix it.” - Uncertainty in Appropriations Harms the Defense Industrial Base.
“Constant appropriations uncertainty injects unnecessary risk into the defense industrial base, particularly affecting the supply chain. Clear and consistent demands signals are crucial for aligning industrial capabilities with DOD requirements.” - Prioritizing the Supply of Critical Minerals is Essential.
“Congress should focus on securing critical minerals more effectively. While these resources are expensive to mine and process, strategic investments are necessary for smarter sourcing of these materials within the United States.” - Leveraging a Diverse Workforce is Key to Retention and Recruitment.
“High-skill jobs that pay significantly above the national average require a strong recruitment pipeline into STEM fields. We must enhance our focus on building a workforce with better skills and higher pay.” - Small Businesses Face Unique Challenges Due to Inconsistent Demand Signals.
“Given their limited resources, small businesses are particularly vulnerable to disruptions in demand. Ensuring consistency in program timelines and contract deliveries can significantly support their viability in the defense industrial base.” - Thoughtful Reallocation of Spectrum is Necessary.
“The reallocation of spectrum, especially in the S-band essential for many critical weapons systems, needs to be managed carefully. Recognizing the potential taxpayer expense involved is vital as we explore this issue.” - Restoring the R&D Tax Credit is Crucial for Innovation.
“Restoring the research and development tax credit is imperative to counteract our global competitors, such as China, which has made significant investments in fostering R&D. This change is essential for both large and small companies engaged in innovative endeavors.”