Whatever Happened to Competition in Space Agency Procurement? Monopsonists, Monopolies and NASA
- Paper number
IAC-05-E3.1.04
- Author
Dr. Vasilis Zervos, The University of Nottingham, United Kingdom
- Year
2005
- Abstract
This paper examines how conflicting objectives in procurement policies by public space agencies result in rent-favouring anti-competitive procurement using the US NASA as a case study. U.S. and European public sectors have actively encouraging mergers and acquisitions of major contractors at national level, following largely from the perceived benefits of economies of size. This has led to the formation of space integrators and a concentrated space industrial base. The paper examines the impact the resulting industrial concentration has on the ability of space agencies to follow a pro-competitive procurement policy. As the European Space Agency’s contracting policy of ‘juste retour’ is marked by limited competition, the paper focuses on the case of NASA, which is expected to be more pro-competitive, to empirically estimate the impact industrial restructuring has on NASA procurement policy with the use of time series econometric analysis. The results show that NASA’s pro-competitive policy is unsuccessful due to a shift in the share of appropriations in favour of its top contractors.
- Abstract document
- Manuscript document
IAC-05-E3.1.04.pdf (🔒 authorized access only).
To get the manuscript, please contact IAF Secretariat.