Sector-by-Sector, Tier-by-Tier (S2T2) Industrial Base Review
The defense industrial base is extremely diverse, with very different capabilities and business dynamics in different sectors and tiers of the supply chain. As part of its core activities, the Office of Manufacturing and Industrial Base Policy (MIBP) pursues multiple efforts to gather industrial base data, map supplier relationships and evaluate industrial capabilities to deliver systems and services to the warfighter at a reasonable cost.
The S2T2 project provides the Department of Defense a baseline of data across a wide array of industries:
- Aircraft
- Shipbuilding
- Space
- Ground Vehicles
- Missiles
- Missile Defense
- Services
- C4ISR Systems
Sustained efforts will maintain and strengthen the data over time. The database and methodology will serve as a starting point for future industrial base efforts across the Department's Services and Components. The reservoir of knowledge will contribute to acquisition strategy decisions, help ensure realistic program objectives, reduce programming swings that disrupt companies' investments and operations, and contribute to the Department's merger, acquisition and divestiture reviews and other industrial base policies.
S2T2 Project Objectives
- Improve understanding of the defense industry to strengthen DoD's ability to:
- reward contractors for successful supply chain management
- benefit from economical and stable production rates
- assist users of services with market research
- present a competitive strategy at each milestone of defense acquisition projects
Understanding how different programs' supply chains use the same subcontractors' facilities for different projects will help the DoD understand how changes in one program impact other programs.
- Supply the Department with fact-based analysis of the:
- extent of globalization in the defense industry
- use of commercial suppliers and subcontractors in the defense industry
- changing participation of subcontractors in military innovation
- emergence of single points of failure in the defense supply chain
DoD leadership will be better able to tailor policies rather than imposing one-size-fits-all policies that may unintentionally exacerbate rather than alleviate some problems.
- Develop an industrial base data repository to serve as a jumping off point for future assessments by all DoD components.
MIBP's role will prevent duplication of effort that wastes the Department's resources and burdens program offices and contractors with multiple, redundant requests.
DoD's Multi-track Approach
MIBP is moving forward on the S2T2 project simultaneously on a number of tracks:
- In partnership with the Department of Commerce, MIBP has designed a survey instrument to gather data on the industrial base. In the first phase of S2T2, the survey was sent to approximately 5,000 facilities across sectors and tiers of the defense supply chain.
- MIBP sector analysts have begun interactive research on the industrial base, scheduling site visits to follow up on key questions in their areas of expertise.
- Recognized experts on the industrial base provide reports on specific aspects of the base, answering specific questions posed by MIBP that tend to focus on the subtiers.
- MIBP is using the Joint Defense Manufacturing Technology (ManTech) Panel to seek a factory-floor perspective from defense programs and suppliers in four focus areas: metals, composites, electronics, and the advanced manufacturing enterprise.