The Competition in Contracting Act was an attempt by Congress to end "sweetheart" deals between the Pentagon and individual defense contractors. Its requirement that agencies seek bids from a range of contractors has led some agencies to give out fewer, but larger, awards. Although research, including money to university-based contractors, forms only, a small portion of the Defense Department's $300 billion annual budget, it is expected to amount to $10 billion in the coming fiscal year—$3 billion for basic technology and $7 billion for advanced technology and development.
Some industry officials believe the cure has been worse than the disease. Two federal agencies, in fact, are experimenting with procedures to streamline a process that now takes almost twice as long as it did before the law was passed.
Earle Williams, president of BDM International Inc., a leading high-technology research firm, has become the R&D industry's most prominent critic of the ...