Yet, while encouraging consolidations, we have insisted upon maintaining competition. Naturally, as consolidation increases, maintaining adequate competition becomes increasingly difficult. And, this has resulted, as you know, in our decision to resist some mergers. Most recently, the proposed acquisition of Newport News first by General Dynamics and then by Litton. The key to our policy on domestic consolidation is to understand the need for maintaining competition.
Competition drives increased efficiency, and, most important, promotes innovation.
Significant DD21 program reform initiatives have included an acquisition approach that leverages industry competition and innovation. Allowing the teams to enjoy maximum design flexibility has allowed us to mitigate risks and future costs while optimizing systems capabilities. Then, requiring shipyard competition on the winning design, between the two remaining yards, will provide us with assured competitive production procurements. Specialized Accounting and Auditing . Commercial versus Military Specifications .