1.2 Background
In 1993 Defense Secretary Les Aspin held a dinner party for fifteen defense industry chief executives. After the dinner, Secretary Aspin provided a briefing that was so sobering that it became referred to as "the Last Supper." In the briefing, Secretary Aspin pointed out that:
Secretary Aspin concluded the meeting by making it abundantly clear the Defense Department was not going to solve the industry's overcapacity problem — that would be up to those in the audience.
The rest is history. General Electric Aerospace merged with Martin Marietta, which combined with Lockheed. McDonnell Douglas joined Boeing. Grumman joined Northrop. When the dust had cleared, there were only a few firms left standing with the ability to provide the development and production capability needed by the warfighter in times of national emergency.
Almost two decades have passed since the so-called "Last Supper." Despite fighting two wars, budget constraints and affordability considerations the DOD may once again be forced to encourage a consolidation in the markets.
