US DoD 2014 Budget Assessment
This research service focuses on the US Department of Defense (DoD) budget spending categories, including: research, development, testing, and evaluation (RDT&E), procurement, operations and maintenance (O&M), and services. Contract activity for the US DoD for the year 2012 is also included. The US DoD 2014 Budget is comprised of spending plans for the Army, Navy/Marine Corps, Air Force, and Joint Service, all of which are included in this study. In addition, this study indicates which technology products and services are emphasized in DoD budget spending. The base year for financial spending is 2012, and the market forecast is from 2013 to 2018.
•The 2014 United States Department of Defense (DoD) budget request is $X billion, including $X billion in base funds and $X billion in overseas contingency operations (OCO) funds. This is an increase of $X billion over the 2013 request
oThe Pentagon continues to emphasize program, financial, and administrative efficiencies; the impact of sequestration legislation and the Strategic Choices Management Review have not been addressed.
•The procurement request is $X billion. Operations and maintenance (O&M) is the largest category with a budget of $X billion.
•Research, development, testing, and evaluation spending (RDT&E) was reduced to $X billion, while the construction request is now $X billion.
•The Navy/Marines will have the largest share of funding at $X billion in 2014.
•Classified programs are the largest area of funding at $X billion in 2014. Ships, command, control, communications, computers, intelligence, surveillance and reconnaissance/electronic warfare/information operations (C4ISR/EW/IO), fuel, and healthcare are leading programs.
•In 2012, the DoD awarded $X billion to X prime contractors. Lockheed Martin continued as the top firm with $29.88 billion in new prime contracts.
• % of 2012 spending went to the top X firms; the top X firms had X% of the contracts
1. Overall defense spending will be flat, with reductions to some developmental programs predicted.
2. OCO spending, primarily for O&M, will remain through 2018 as a separate part of the budget.
3. Future procurement will focus on incremental upgrades to current systems.
4. Demand for missile defense, network security, and simulation technologies and services will increase.
5. Industry consolidation, especially at the mid-tier level, will accelerate.
•This research service discusses the United States DoD 2014 budget request, which is the fifth 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 2014 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 is rounded, therefore, some reported figures will not add exactly.
•Contract and industry-competitive data is based on the 2012 calendar 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.
•Program and contract-funding forecasts are made at the analyst's discretion.
Key Questions This Study Will Answer
What are the areas of growth within the DoD 2014 budget; what procurement will be the focus through 2018?
What segments, technologies, and services make up the budget?
What are the leading drivers and restraints for the DoD budget?
What are the top programs for the DoD 2014 budget?
What technologies and services will the program budget emphasize?
What companies are leading the DoD research, procurement, and services market?
Table of Contents
Executive Summary 4
DoD Budget Request Overview 7
Total Budget -
• External Challenges: Drivers and Restraints 10
• Forecasts and Trends 18
• Market Share and Competitive Analysis 21
CEO's 360 Degree Perspective on the Defense Industry 30
DoD 2014 Budget Breakdown 32
The Last Word 56
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