RAND Finds Gaps in Data on Subs in the DoD Industrial Base

Findings from Existing Data on the Department of Defense Industrial Base | RAND

Key Findings

Analysis of existing federal data can help ensure the health and
effective management of the defense supplier base while minimizing the
use of surveys. Federal contractors do not always provide accurate and timely updates on their revenue and that of their subcontractors. Existing data sources can help the Department of Defense gain visibility into its contractors and their subcontractors. Existing data are readily available even though the quality of some data sources needs to be improved.

Recommendations

• The Department of Defense should encourage and verify that prime contractors with reportable contracts report their subawards.
• The Department of Defense should work to improve the quality of prime contractor and subcontractor revenue and other size data.
• The Department of Defense should consider surveying subcontractors
  on their subcontractors, not just those on recently awarded contracts
  subject to reporting.
• Contractor analyses should be expanded using other data, such as
  data on supplier financial risks and vulnerability to natural disasters
  at their place of performance and data on key weapon-system parts.