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US DoD 2015 Budget Assessment

  • June 2014
  • 57 pages
  • Frost & Sullivan
Report ID: 1363433

Summary

Table of Contents

Force Reduction and Limited Modernization

This research service focuses on the US Department of Defense (DoD) 2015 budget request. Included in this service are research, development, testing, and evaluation (RDT&E); procurement; operations and maintenance (O&M); overseas contingency operations (OCO); and services. Contract activity for DoD market participants for 2013 is also included. The DoD 2015 budget comprises the Army, Navy/Marine Corps, Air Force, and Joint Service spending plans. This study also indicates which technology products and services are emphasized in DoD budget spending. The base year for financial spending is 2013, and the market forecast is from 2014 to 2019.

Key Findings

-The 2015 United States Department of Defense (DoD) budget request is $ billion, including $ billion in base funds and $billion in overseas contingency operations (OCO) funds. This is a decrease of $ billion over the 2014 request.
oThe Pentagon continues to emphasize program, financial, and administrative efficiencies; however, the potential negative impact of sequestration legislation and anticipated congressional negotiations to raise funding for some segments have not been addressed.
-The procurement request is $ billion. Operations and maintenance (O&M) is the largest category and has a budget of $billion.
-Research, development, testing, and evaluation spending (RDT&E) was reduced to $ billion. The construction request is $ billion.
-The Navy/Marines will have the largest share of funding at $ billion in 2015.
-Combat service support, classified programs, healthcare, ballistic missile defense, fixed wing aircraft, ships, and command, control, communications, computers, intelligence, surveillance, and reconnaissance/electronic warfare/information operations (C4ISR/EW/IO) are leading programs.
-In FY 2013, the DoD awarded $ billion to prime contractors. Lockheed Martin continued as the top firm with $ billion in new prime contracts.
-Of the 2013 contract value awarded, % went to the top firms; the top firms had % of the contracts.

Market Definitions

-This research service discusses the United States DoD 2015 budget request, which is the sixth budget of the Obama administration.
-Funding for RDT&E, procurement, O&M, military construction and family housing (C&H), revolving management funds (RMF), and OCO are included.
-The 2015 budget request is broken out by category, military-service component, funding type, and application segments. Included in this budget overview are some of the major changes and shifts in priorities, the primary competitive and technology trends, and the major market participants.
-The intent of this study is to indicate which segments of products and services the DoD has emphasized in the budget request so that firms can invest in these priority areas.
-This research service includes stated classified programs and budgets. A substantial amount of DoD spending data is not accessible to the public.
-Official DoD budget data are rounded; therefore, some reported figures will not add exactly.
-Contract and industry-competitive data are based on the 2013 fiscal year. Program funding and contract values do not always align year to year, which is a result of a combination of administration costs, multiyear contracts, and technology use across segments.
-Segment totals announced by the DoD and actual line item totals do not always match. Numbers indicated in the charts are the analyst’s effort at reconciling published numbers.
-Program and contract-funding forecasts are made at the analyst’s discretion.

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