Frost & Sullivan analysts explain:
- The defense market is shrinking, and many of the traditionally large spending areas will be the most affected.
- Operation and maintenance (O&M) cuts will be the most immediate, with overseas contingency operations (OCO) funding eliminated and cuts to base budget O&M.
- Personnel will receive cuts after 2014.
- Procurement programs will be drawn out, and new procurement will be limited.
- Research, development, test, and evaluation (RDT&E) has already been cut,and funding will continue at slightly reduced amounts.
- Construction funding will continue to be used for the completion of existing projects, but future funding will decline
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