Ash Carter Nails It

Regarding the defense industry, AT&L's Ash Carter provides a totally on-target money quote (emphasis added):

“At the end of the day we are totally dependent on that defense industry. The government doesn’t make our weapons, private industry makes our weapons.”

The goal of acquisition is for the government to get what it needs, when it needs it, and to pay a fair price for the product. Simultaneously, the government should want industry to make a fair profit.

If industry isn't making a fair profit, they will tend to do other things, which will reduce competition, product selection, and ideas. It all seems pretty straightforward, doesn’t it?

Carter is paraphrased as saying he like as much competition as possible. I bet his real intent is to have as much competition as is useful. There is a point of diminishing, and even negative, returns.