Abstract
Transformation Policy Leads to Colossal Increase in 2004 RDT&E Budget
Allocation
The U.S. Department of Defense (DoD) is focusing on transforming its various
armed services into 'capability focused units' rather than organizing them
strictly by service type or weapons platform. For this purpose, the 2004 budget
for research, development, test and evaluation (RDT&E) has been increased by
more than $5 billion and is the largest increase since 1962. This clearly shows
that the DoD is serious about and possesses the necessary wherewithal to achieve
its revamping objectives. Market participants are geared to take advantage of
these emerging opportunities by keeping track of the changing requirements and
working toward designing unique, interoperable, and affordable solutions.
This Frost & Sullivan research has segmented the U.S. DoD RDT&E
markets by service, application categories, and different phases of development.
The services covered in the research include: U.S. Army (US-A), U.S. Navy and
Marine Corps (USN), U.S. Air Force (USAF), and other DoD agencies (other). The
application categories include: basic & applied research; command, control,
communications, computers, intelligence, surveillance and reconnaissance
(C4ISR); information and electronic warfare (IEW); weapons; Marine Corps;
management; personnel & facilities; ships and submarines; vehicles;
aircraft; and classified.
Shift to Network-centric War Architecture Changes the Focus of RDT&E
The DoD's transformation efforts revolve around the move toward
network-centric warfare, resulting in the initiation of several new programs
such as the 'Future Combat System', which is estimated to cost a whopping $14.9
billion. At the same time, many old programs such as the 'Crusader
Self-Propelled Artillery System' that do not meet the transformation policy
requirements are being discontinued. "Having the hardware is not enough
anymore; there is a compelling need to quickly field forces and ensure combat
readiness for time-critical strikes against moving targets," says the
analyst. Sophisticated systems are required for this purpose and the development
of Predator B, the unmanned aerial vehicle, epitomizes this effort.
"Market participants need to establish effective partnerships and build
personal relationships, which will allow them to stay abreast of government's
internal planning," says the analyst. "This will also enable them to
increase their technical expertise in specialized fields." However,
companies still face the challenge of providing quick and accurate intelligence
information to facilitate complete utilization of new hardware by military
commanders.
Complete Digitization of Battlefields to Continue despite Economic
Uncertainties
The present explosive growth in the RDT&E space is likely to slow down in
the long term as various economic factors such as the Federal deficit and lower
tax revenue expectations could force a reevaluation of the future program
funding by the DoD. Current procurement needs are being given importance and
already, there are minor shifts in funding from a few RDT&E accounts to
cover 'bullets and gas' expenses for the 'clean-up' operations in Iraq and
Afghanistan. In addition, a 15-percent 'War Tax' has been imposed on existing
programs.
The transformation of the U.S. military into an objective force depends on
the digitization of communication channels, C4ISR systems, and field forces that
use public data pipelines. Real-time communication of enemy and friendly
positions is critical to field a faster, flexible, and lethal force of men and
machines. The Army, Navy, Air Force, and other DoD agencies are expected to work
toward the near-term goal of interoperability within their own segment, which
will eventually lead to cross-service interoperability and complete digitization
of battlefields.
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