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Competition is the driving force in the American economy. It forces organizations to improve quality, reduce costs, and focus on customers needs.
The Defense Reform Initiative calls for the Department of Defense to rely increasingly on the competitive powers of the marketplace to generate efficiency. Experience within DoD reveals that competition between the public and private sector to perform commercial activities consistently produces savings of at least 20 percent, regardless of who wins.
Like the best companies and organizations in the United States, DoD has embarked on a systematic and vigorous effort to reduce the cost and improve the performance of its support activities. Support activities will be considered for outsourcing, privatization and competition when they are appropriate for the private sector to perform. The DoD will not outsource activities that are inherently governmental.