The Federal Trade Commission and the Justice Department have pledged to continue to workÂ with the Defense Department toÂ ensure that planned mergers and acquisitions in the defense industry will not impair competition among contractors.
“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,”Â Bill Baer, assistant attorney general of DOJ’s antitrust division said Tuesday.
DOJ and FTC said in a joint statement published Tuesday they rely on the Pentagon to help review potential impacts of contractorÂ mergers, teaming agreements and joint venturesÂ on the department’s ability to carry out national security missions.
Both agencies use anÂ analytical framework found in theÂ DOJ/FTC 2010 Horizontal Merger Guidelines document to evaluate antitrust aspects of M&A deals and believe the currentÂ system for oversight of transactions between defense companiesÂ isÂ “sufficiently flexible.”
The joint statement comes nearly six months after Pentagon acquisitions chief Frank KendallÂ told CNBC heÂ is concerned thatÂ a wave of consolidation in the defense sectorÂ will leave the department withÂ a few large vendorsÂ to purchase technologyÂ from.
In that interview, he said heÂ believesÂ market competitionÂ should be considered aÂ tool for DoD’s national security programs.
“I’m working with my staff, and I’m working with Congress, and I’ll be making some recommendations to Congress about what they might do along those lines,” KendallÂ said to the business channel.