DoD Handbook- US Army Reverse Engineering Handbook (Guidelines and Procedures)

4.1 Background.
Defense contractors who supply systems, equipment and spare parts during the initial production phase of a weapon system acquisition in which they have performed in the development, frequently become the “sole-source” for follow-on procurements. The cost of items procured under these sole source conditions are sometimes inflated beyond their true value. Consequently, procurement costs for spare parts consume an increasingly larger share of the defense dollar. Recent emphasis on the prices paid for spare parts dictates the need for competition. Congress and the Department of Defense (DOD) directed the military services to increase competition in an effort to reduce the cost of spare parts. The Defense Acquisition Regulation Supplement No. 6 (DAR-S6), dated 1 June 1983, titled: DOD Replenishment Parts Breakout Program (see 4.3), was promulgated to encourage competition and reduce restrictive features which limit competitive procurement.