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US Department of Defense RDT&E:  Market Analysis and Outlook (AB079)

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RDT&E budgets have increased in the recent past due to delays in moving major programs into production; this trend will continue but associated funding growth will slow considerably in the near-term

Congress has commenced efforts to gain more oversight into RDT&E program schedule and cost over-runs

Programs that show excessive cost growth or fail to meet technical milestones will be increasingly threatened by cancellation

Army and Navy RDT&E funding will decrease significantly over near and
long-term, as large platform programs transition to procurement and funds
are sent to that account to complete the acquisition

Early stage development for programs will face increasing funding pressure
in the long-term, as final development of large platforms consumes a
greater share of the RDT&E budget, particularly in the Army and Navy

Supplemental and baseline spending have grown extremely large and become intermixed during the last 4 years. Separating what will continue as
baseline will require some fiscal control by the DoD

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