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A New Administration with New Priorities
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The first budget under the Trump administration, which includes the fiscal year 2018 Department of Defense (DoD) budget request highlighted within this research, has been published. The DoD request is notably higher than that of 2017 and may encounter opposition from both sides of the political aisle. The new research details the defense departments and agencies that offer the best opportunities for companies trying to enter the US defense market. The research includes market drivers and restraints that shed light on some budget numbers and the importance being placed on certain projects and programs. The research assists in understanding the government’s focus and the services it will likely require in future.Research Scope: This research service examines President Trump’s DoD budget request for 2018. It will highlight some of the programs that offer the best opportunities for growth and penetration into the DoD market. Cited funding data reflects only those funds assigned for discretionary spending and does not include mandatory fees. Years in this document refer to government fiscal years for the budget, and calendar years for contracts and competitive data.This research service focuses on the United States Department of Defense (DoD) budget spending categories, including research, development, testing, and evaluation (RDT&E); procurement; operations and maintenance (O&M); and services. 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. Contract activity for the US DoD for 2016 is also included. The 2018 budget is comprised of spending plans for the Army, Navy/Marine Corps, Air Force, and Joint Service. The base year for financial spending is 2016, and the market forecast is from 2016 to 2022. Market share and competitive analysis for this research is based on government contract obligations distributed in 2016. Over 50,000 companies received contracts from the DoD during 2016; therefore, a list of “other” companies is not included with this research. The competitive analysis portion of this research focuses on the overall top ten companies for DoD, and it highlights the top 5. The budget request is subject to variances and changes until Congress actually passes the bill enacting the budget. Several DoD agencies will not be reviewed in detail because most of their discretionary spending is dedicated to salaries and operating expenses. On the other hand, any significant findings associated with the agencies not fully reviewed will be discussed under the key findings portion of the research.Questions this study will answer include:• How has the DoD budget changed from 2017 to 2018?• In relation to the 2018 funding request, which DoD departments have the largest level of spending?• What are some of the programs for which DoD departments have requested funding?• Which companies are capturing the largest overall market share for the DoD market?• Will DoD spending rise or fall within the next 5 years?• What types of companies are obtaining the most contract value awarded by DoD?
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