Safety and Liability Risks for Defense Contractors Entering Commercial Markets

Abstract

Defense contractors are increasingly seeking commercial customers and markets beyond traditional Department of Defense (DoD) and other government contracts. Commercial markets offer potential advantages such as large and stable customer bases, more predictable income streams and freedom from the burdensome government acquisition process. However, commercial markets pose unique challenges to traditional defense contractors in terms of product safety expectations, legal liability, and risk assessment and mitigation. This paper explores issues and obstacles that a defense contractor safety professional will face when introducing a product into a commercial environment. What commercial safety standards should be used, and what legal protection do they afford? What types of hazard analysis should be performed, and what additional hazard categories should be considered? How can the manufacturer be protected from customer misuse or modification of its products? And, the most vexing question faced by all commercial product designers: How safe is safe enough?