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The Gansler interview, part 1: The coming crisis

Jacques Gansler's task force report on the defense industrial base vaguely described a "coming crisis" for the defense industrial base.

In an interview late yesterday afternoon, the former Pentagon acquisition chief explained what the task force meant by that phrase.

"If supplementals disappear and the budget shrinks and -- both of which are likely to be happening -- every $100 billion matters," he said, only half-joking on that last phrase.

"The services are going to have now to start worrying about the efficiency [issue]," he said. "For the last 7 years now, we've lived in a rich man's world. If you want something you buy it and, if you don't, you get it in the supplemental. ... Now, the services will be much more interested in not only effectiveness but also efficiency. So now you do worry about the supply side efficiency."

The Gansler task force's solution to all this is pretty clear: competition.

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