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.

Within each set of conditions, NDIA will analyze several statistical indicators—“vital signs”—that describe current industry dynamics.

NDIA is collaborating on this study with Govini, a leading provider of data science and market intelligence services for federal and corporate clients.

Vital Signs 2020