Networks in Defence Procurement and Supply

Abstract

This chapter examines networks in two distinct but closely related areas: arms procurement and arms supply. Markowski and Hall (1998) identify six dimensions of arms procurement: user requirements (what to buy?); division of labour (make or buy?); contracting (what type of contract?); source selection and competition (how much competition?); organisational (who should have the authority and responsibility for making procurement decisions?); and international collaboration (what should be the drivers of international procurement?). This final dimension – the extent of international collaboration between sovereign governments that underpins the other five dimensions – is the focus of discussion of procurement in this chapter. As the specifiers and paymasters for most new weapons systems, thus acting in effect as monopsony purchasers in contractual arrangements that can take up to twenty years to complete and with keen economic interests in the protection of domestic suppliers, the behaviour of governments is central to shaping the supply side of the defence industry.