Foreign Defense Procurement and Its Implications for National Security and the Domestic Labor Market

The Congressional Research Service engaged the Capstone team to gain a better understanding of foreign defense procurement and its potential implications for national security and the domestic labor market. Using data acquired from the DD350, the Department of Defense’s (DoD) individual contracting form for all financial transactions between DoD and its contractors, the team computed totals of annual defense procurement and foreign procurement and identified ten countries and ten products/services that received the largest amount of defense dollars from 2001 to 2005. The team’s analysis included inflation adjusted procurement dollars, procurement dollars as a percent of GDP, and further analysis of the foreign contracting nations and the products and services they supply.