DoD Forecast to Cut $30B From ‘C4ISR’ Spending by 2017

Military will move away from large, multiyear, single prime C4ISR contracts
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The U.S. Department of Defense is expected to cut spending on command and control, communications, computers, intelligence, surveillance and reconnaissance programs by more than $30 billion over the next five years, says a report by market research firm Frost & Sullivan.
In 2012, the military spent $75.53 billion on C4ISR, but by 2017 the military will only spend $45 billion on C4ISR, a reduction of $30.53 billion, says the report, US DoD C4ISR Competitive Analysis. In addition, reflecting the cut in spending, the DoD will move away from large, multiyear, single prime C4ISR contracts, and move to small, short-term, multivendor C4ISR contracts, the report says.
By 2017, C4ISR spending will focus on maintenance and incremental upgrades to mature technologies, and spending will be cut on research, development, testing and evaluation, the report says. “Reduced RDT&E will mean more reliance on mature and proven technologies and systems, with incremental upgrades that will leverage advances in commercial technology,” says Brad Curran, Frost & Sullivan senior industry analyst.
In addition, the adoption of commercially successful IT technologies is enhancing DoD mission success in almost every C4ISR segment and technology area, the report says. The key IT enterprise technologies used include cloud computing, data analytics, mobile devices, and business and social networking applications.
“Cost savings, ease of integration and training, and frequent upgrades of these tools are driving more companies to participate in the DoD IT enterprise networks market,” Curran says. “In fact, cost-competitive, non-traditional defense firms that maintain a robust services capability will find steady contracting work through 2017,” he adds.
Click here for more information on the report.