Performance and Risks in the Defense Procurement Sector

Jean-Michel Oudot

Journal of Public Policy, 2010, vol. 30, issue 2, 201-218

Abstract: Risks that emerge during the implementation and enforcement stages of defense procurement help explain procurement outcomes. Adverse events have impacts on the timing, cost and quality of goods supplied. The procurement process is analyzed on the basis of an original dataset covering 48 defense procurement contracts signed by the French Ministry of Defense with 18 European contractors. Contractual problems create the most adverse events in this sector, while technological risk is the second most significant risk. Although opportunism takes various forms, it is found only rarely in these defense contracts.

Date: 2010
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