Direct Licensing in Major Weapon Systems Acquisition.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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This research was undertaken to analyze direct licensing as an acquisition strategy for major weapon systems. The main objectives were to determine to what extent licensing can be an advantageous strategy and to develop a model to aid the decision maker in determining whether a licensing strategy should be employed. The researcher found that domestic licensing has seen limited application in DOD acquisition strategies. This occurrence stems from the fact that, as a second sourcing method, licensing does not lead to effective price competition. Rather, direct licensing serves DOD as a strategy to establish a production or mobilization base. Three reasons were presented for attempting a licensing agreement 1 when the developer claims ownership rights to relevant data or processes, 2 when the complexity of the system dictates that the second source requires technical assistance from the developer, and 3 when the Government desires that the prime developer retain design responsibility for the life of the system. The Thesis concluded by presenting a Direct Licensing Decision Model which provides a concise logical framework to follow when one is contemplating a direct licensing acquisition strategy. Author
- Logistics, Military Facilities and Supplies