Methodology

NDIA will approach its assessment of the health of the defense industrial base by estimating an overall score / grade using a broad set of quantitative “vital signs.”

NDIA’s evaluation will include several sets of variables:

a. Competition conditions - trends in overall financial performance and market structure.
b. Demand conditions – trends in procurement and contracting by the DoD customer.
c. Factor conditions – availability and cost of critical inputs to defense production.
d. Supply chain conditions - operational performance of the defense supply chain.
e. Innovation conditions – trends in technology R&D investment and intellectual property production.
f. Security conditions – indicators of industrial security threats and capabilities – focused on cybersecurity.
g. Political and regulatory conditions – trends in defense-related legislative and regulatory affairs that affect the DIB.
h. Production readiness – indicators of potential output, industrial capacity utilization, and “surge” production capacity.

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