Why outsourcing does not create a warship market

What are your views on outsourcing military recruitment and procurement?

The objection is that private provision need not be cheaper when domestic warship construction offers very limited yard choice and a single government customer.

Outsourcing is not automatically cheaper when only one domestic yard can build each broad class of ship and the state is effectively the sole customer. Britain has different constrained choices for small frigates and large escorts, while carrier construction draws parts from several yards into one assembly yard. The size of that assembly yard can determine the carrier's dimensions. Opening construction to overseas yards would create a wider market, whereas insisting on domestic construction accepts the limited supplier base. Under those conditions, the government can pay a private monopoly's profit margin while also absorbing the costs passed through by its supplier.