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A New Administration Sets New Priorities
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This research service focuses on US Department of Defense (DoD) spending requests for the research, development, test, and evaluation (RDT&E); procurement; and operations and maintenance (O&M) categories. The analyst has segmented the budget request by military department and 20 technology areas including aircraft, ships, ground vehicles, and command and control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR).The research also provides information on contract activity for 2020 that encompasses Army, Navy/Marine Corps, Air Force/Space Force, and Joint Services contracts awarded, and lists the analyst’s estimate of the top 10 US DoD contractors based on available government data. The base year for DoD budgets is 2020, and the market forecast is estimated from 2021 to 2026.Research, new purchases, and services for computers, healthcare, and base operations support are included. Classified budget requests are included but cannot be broken out into technology areas. Budget requests include base, overseas contingency operations, and emergency categories.Products and services that are inherent in new-build tactical ground vehicles, ships, and aircraft platforms are included if distinctly specified by program or modification. Program funding and contract values do not always align year to year because of administrative costs, multi-year contracts, and technology use across segments. Program and contract segmentation, large multi-year contract assessment, and funding forecasts for 2021 and beyond are made at the analyst’s discretion.The purpose of this study is to discuss the new Biden administration's 2022 DoD budget request. While the market is mature, there are signs that steady growth and new concepts are ahead. This study will outline and provide commentary regarding those signs.The main goals are to understand the current state of DoD contract activities, military operational trends driving the DoD market, commercial technology trends impacting DoD users, and the future objectives for DoD spending.
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Author: Brad Curran
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