I. Reasons for Competitive Procurement of National Defense Equipment From the perspective of the procurement process of weapons and equipment, the uncertainty and risk of financial risk changes that may be brought by the procurement fee contract itself are the direct reasons for competitive procurement of national defense equipment. The characteristics of the procurement process of weapons and equipment mean that the national defense equipment market cannot be a traditional and classical market system, but a market system similar to the administrative buying and selling relationship. Due to the lack of market power in the usual sense, the effective procurement of weapons and equipment requires the real subject of procurement-the government not only to directly control contractors, but also to intervene in equipment procurement by implementing measures of rewarding the superior and punishing the inferior, so as to reduce the financial risk of equipment procurement. Various incentive measures widely used in competitive procurement of national defense equipment are contractual measures taken by government procurement agencies to effectively achieve the above objectives. However, the more internal reason leading to the competitive procurement of national defense equipment should be the criticism and sublation of non-competitive procurement. Under the condition of non-competitive procurement, the subject and object of equipment procurement are at the opposite poles of market monopoly, and directly control the production and use of military equipment through some connection. Once corruption, collusion between officials and businessmen, bribery and other "moral hazards" occur, problems such as low quality of military equipment, slow improvement of technical content and countless waste of military resources will quickly emerge, which may lead to a sharp decline in the country's military strength and potential, thus directly constituting a national security crisis. In order to prevent moral hazard, competitive procurement came into being. It reduces the possibility of moral hazard and the possible rent of production equipment enterprises through the two-way choice of procurement subject and object, laying a foundation for further improving the stability and credibility of procurement. Second, the existing competition form in the defense equipment market cannot be directly measured by the perfect competition model of economists. It is usually manifested as a single buyer, a few large weapons and equipment suppliers, companies that do not pursue profit maximization, information asymmetry and market entry and exit barriers. The purpose of national defense equipment market competition is often focused on promoting procurement reform and transformation, so as to reduce the equipment procurement price. Although some unfavorable factors inherent in competition itself cannot be completely avoided and ignored, for example, competition requires a lot of time and energy; Competition has increased the debate and protection for weapons contractors; Competition has split the long-established partnership between the government and contractors; Competition needs to constantly evaluate the capabilities of enterprises participating in the competition, which will lead to the long-term occupation of limited resources. However, more and more people realize that it is more appropriate to use competition than not to use competition in the procurement of weapons and equipment. Especially through purchasing practice, competition has proved to be an effective means. In the process of weapons and equipment procurement, if the price is directly measured and the existing forms of competition in the project are analyzed according to the life cycle of the project, the general explanation shown in the following table can be given: the stage-dominated competitive risk that may occur in different stages of competition-uncertainty 1. There is no upper price limit for the second level of weapon and equipment design. Research on the development of weapons and equipment-sample manufacturing stage 3 without price budget restrictions. Small batch production stage of weapons and equipment. There are various price types in the production stage, from small to large. 4. There are some price types in the maintenance, service, personnel training and mid-term improvement stages of weapons and equipment. 5. There are large price types in the consumption stage of weapons and equipment, which can't be seen from the above table. In the process of weapons and equipment procurement, the forms of competition are not exactly the same. On the one hand, competition reduces the possible moral hazard crisis, on the other hand, there are different degrees of uncertainty in its application. Different stages and types of competition bring different risks and uncertainties. Therefore, it is still necessary and potential to introduce and extend further competition in different stages of the life cycle of various equipment projects. Generally speaking, the procurement competition of national defense equipment is mainly based on the comparison between the design stage and the development stage of weapons and equipment, and the dominant competition in these two stages is free of price, which means that the procurement agency first considers the technical advantage analysis of competitors, and the competitors who can meet the technical design requirements put forward by the procurement agency to the greatest extent will enter the next round of screening. In the second round of competition, the purchasing agency compares the price and reputation as the main factors, so as to determine the ownership of the purchase contract. Traditionally, the results of the competition at this time often give one or more competitors the final victory according to the preference of the organization. This practice is not only conducive to protecting the vested interests of the purchaser, but also conducive to maintaining a relatively stable equipment manufacturer; On the other hand, it is also conducive to the purchaser to implement competition extension in the process of equipment manufacturing, and further reduce the risk of equipment procurement. The procurement of national defense equipment is not only the competition in the use of procurement contracts, but also the incentive competition in the procurement system. In order to improve the production efficiency of weapons and equipment, competition adjustment is implemented through competitive incentive and reward induction. So far, the main systems used are: franchise bidding; Regional competition system (scale competition); Social contract system, social contract; Price control, etc. Third, the effect of competition in the national defense equipment market Through the multi-faceted and multi-angle competition in the process of equipment procurement, we can easily see the obvious contribution brought by competition. One of the contributions is to directly prevent the moral hazard of both parties involved in the competition. Competition reduces the moral hazard that may occur in the long-term production relationship between the ordering party and the delivery party. According to the different types of competition, the degree of moral hazard disappearance is also different. This provides an important way to finally solve the crisis of wasting national defense resources. The second contribution is to reduce the price of equipment and products and the waste of resources. The establishment of competitive quotation and bidding mechanism reduces the rent that the successful bidder tries to raise in its monopoly field, and objectively saves the consumption of military resources. At the same time, it also forces military equipment manufacturers to improve the technical content of weapon systems through continuous technological progress and enhance their position in the next round of equipment procurement competition. The third contribution is to improve the production capacity of domestic defense production enterprises and promote the further improvement of weapons procurement policies. Because the concept of competitive interest runs through the whole procurement process of weapons and equipment, the competitive quotation of foreign defense equipment manufacturers or the comparative advantage of domestic defense equipment manufacturers in production have made profound changes in the sales and procurement system of weapons and equipment. The change of the procurement market environment, under the dual effects of "user pull" and "technology push", urges domestic defense production enterprises to improve their production capacity in order to win and maintain a higher comparative interest position. Four. Present situation and trend of application of competition mechanism in western defense equipment market. Although the mode, scale, ability and level of weapons and equipment acquisition in western countries are different, there are many similarities in the organization and implementation of weapons and equipment acquisition plans. As a military product, weapons and equipment have both the general attributes of commodities and their own inherent characteristics. This feature is mainly manifested in: military products are developed and produced according to advance orders, and are exclusively purchased by the government; The price is not completely affected by the relationship between supply and demand; The supply and demand sides have maintained a fairly stable and inseparable relationship for a long time. However, through years of practice, countries have gradually noticed that the establishment of an effective competition mechanism and the effective use of market means on this basis can greatly promote the procurement of military equipment. Most countries have started or used competition to stimulate the procurement of military equipment. Some countries clearly stipulate in laws and regulations that they should rely on competition to purchase all goods and obtain services to the maximum extent, and take extensive competition as an important measure to reduce costs, improve weapons performance and strengthen the foundation of national defense industry. In the United States, in addition to the competition among the main contractors, some directives of the Ministry of National Defense also clearly stipulate that the main contractors should also widely adopt the competition mechanism when subcontracting in the process of scientific research and production, and the military should take the past achievements of these manufacturers in subcontracting competition and the potential to achieve full competition as the basis for evaluating and selecting the main contractors. However, in western countries, the national conditions are different and the competition practices are quite different. For example, the French Ministry of Defence does not advocate competition at the level of main contractors, but guides related enterprises to merge, thus basically forming a situation in which one main contractor exclusively manages all weapons and equipment-related fields, in order to increase its strength and shift its competition target from domestic to national defense and military industry market; However, in the process of subcontracting, France emphasizes to make full use of competition, and stipulates that the subcontractors selected by the main contractor must be recognized by the Weapons and Equipment Department. The competition among western European countries in the cooperative development and production of weapons and equipment is mainly reflected in the determination of the main contractor. Once it is determined, it emphasizes cooperation, which is for the competition in the international market. In the defense equipment market of western countries, the limited market-oriented application based on competition mechanism is gradually favored. The application of this competition mechanism generally has the following characteristics: 1. The competition in the military market has its inherent characteristics. The competition in the military market is different from the competition in the traditional free market in scale, mode and intensity. In the 1970s, only 8% of the procurement contracts signed by the US Department of Defense through competition reached 58% in 1987. In order to keep the competing manufacturers in the military market, competition is not simply the survival of the fittest, and the defeated manufacturers still have the opportunity to participate in the research and development and production of related products or components. It also stipulates that a certain share of scientific research and production tasks should be left to small enterprises. Sometimes, in order to compete, some manufacturers will be organized to cooperate as competitors. 2. Careful planning is the premise of competition, and necessary administrative intervention is the guarantee of fair and reasonable competition. At any stage of weapons and equipment acquisition, in order to carry out competition, the military must first submit "bidding documents" and other documents, including performance indicators, budget, schedule requirements, etc. This is the basis of competition. Moreover, the organization and management of the competition process, the evaluation of the competition results, the testing and appraisal of various prototypes and products, and the stage review of the procurement process from one stage to another are inseparable from the direct intervention of the military. 3. To fully develop competition, we must also strive to create a suitable competitive environment and conditions. These environments and conditions include: consciously cultivating competitors, having necessary laws and regulations, having appropriate institutions and personnel (for example, all departments above the US Department of Defense have "competition spokespersons"), having sufficient funding guarantee, and having correct evaluation and assessment methods and means. Otherwise, it is difficult to realize the desire to compete. 4. Not all weapons and equipment projects are competitive, and non-competitive contracts should be strictly managed. The production of weapons and equipment such as large ships and military spacecraft is generally not competitive because of its extremely high cost and very small output. Some development plans with high risks, urgent time requirements and strong confidentiality are not competitive. The development and production of these weapons and equipment are generally undertaken by military enterprises that have traditionally proved to be experienced, powerful and reliable. However, the directive of the U.S. Department of Defense also stipulates that the application for non-competitive contracts should be based on evidence and supporting materials, approved by the competent department at the next higher level, and appropriate measures should be put forward for subsequent procurement activities to compete as much as possible.