Military budgets are one way to gauge a country’s armed forces. A given

financial commitment or budget may be adequate or inadequate depending on

a number of factors. Some of the major considerations include conflicts the

nation is involved in, how well funds are allocated and spent, and what goals

and accomplishments need to be fulfilled.

Nevertheless, there are some trends in

military spending that can reveal

something about the United States

and their commitment to providing

security and pursuing integrity in

behalf of Lady Justice.

Here are some facts, figures, and takeaways from the contract spending of the

US Department of Defense throughout the years:

Budget is Going Down

Aside from the recent government-wide budget cuts and sequestration, the

Defense Department is expected to see future budget cuts. In the fiscal year

2013, the DoD spent $585.4 billion dollars, more than $500 billion of which

went to base funding. For FY 2014, the expected spending totals to $585.9

billion, and for FY 2015, which starts October 1, 2014, the agency is expected to

spend $581.3 billion.

While the overall budget is decreased, most of

these are still allocated for base funding and the

rest for overseas contingency operations. This

means contracting opportunities with the

government will still be open for businesses and

contractors.

Operations and Maintenance Takes

Most of the Base Funding Budget

Most of the DoD budget is used for operations and maintenance (O&M)

purposes. While all types of spending suffered from recent budget cuts and

sequestration, O&M still takes the largest piece of the pie, with an expected

$263.2 billion for FY 2014. Other programs that use up the budget include

military personnel, procurement, research development test and evaluation

(RDT&E), military construction and others.

Most of the budget for procurement goes out to small contractors and

businesses that work in partnership with the DoD. These companies provide

everything from supplies to services, subject to procurement, packing, and

delivery requirements set by the government agency.

“Others” is Growing

The “others” category has the highest growth rate in spending for services. It

has increased at a 13% compound annual growth rate over ten years, which

translates to $36 billion in 2011, up from $9 billion in 2000. This category

includes spending for the Defense Logistics Agency and the Missile Defense

Agency.

Defense is Still Top

The largest DoD program for FY 2014 is the F-35 Lightning II Joint Strike

Fighter, which costs around $7.54 billion, including procurement and RDT&E

funds. The second largest program is the SSN 774 Virginia-class attack

submarine, worth around $6.69 billion, followed by the 737-based maritime

warfare aircraft P-8A Poseidon worth $3.66 billion.

These numbers just goes to show the United States Department of Defense is

indeed the world’s largest employer.

Resources:

http://milpac.com/military-packing.html

http://www.bga-aeroweb.com/Defense-Spending.html

http://csis.org/files/publication/120524_DIIG_Defense_Service_Contract_Trends.pdf