Long-Term Implications of the 2016 Future Years Defense Program

"In most years, the Department of Defense (DoD) produces a five-year plan, called the Future Years Defense Program (FYDP), associated with the budget that it submits to the Congress. The FYDP describes DoD’s plan for its normal, peacetime activities (corresponding to what is often labeled its base budget). DoD’s current plans are described in its 2016 FYDP, which covers fiscal years 2016 through 2020.

Those plans call for relatively flat budgets that average $534 billion for 2016 through 2020. (Unless otherwise noted, all costs in this report are expressed in 2016 dollars to remove the effects of inflation.) If DoD’s plans are projected for an additional 10 years, CBO’s analysis indicates that defense budgets would be larger, averaging $565 billion per year from 2021 through 2030 under DoD’s cost assumptions. Moreover, CBO estimates that the cost of DoD’s plans would be 4 percent higher over the next 15 years under a set of policies and prices that more closely matched recent experience..."
Defense programs

Defense Acquisitions: How and Where DOD Spends Its Contracting Dollars

"The Department of Defense (DOD) has long relied on contractors to provide the U.S. military with a wide range of goods and services, including weapons, food, uniforms, and operational support. Without contractor support, the United States would be currently unable to arm and field an effective fighting force. Understanding costs and trends associated with contractor support could provide Congress more information upon which to make budget decisions and weigh the relative costs and benefits of different military operations—including contingency operations and maintaining bases around the world..."
Military spending

Financing Issues and Economic Effects of American Wars
"The increased government outlays associated with wars can be financed in four
ways: through higher taxes, reductions in other government spending, government
borrowing from the public, or money creation. The first two methods are unlikely
to have an effect on economic growth (aggregate demand) in the short run: the
expansion in aggregate demand caused by greater military outlays is offset by the
contraction in aggregate demand caused by higher taxes or lower non-military
government spending. The latter two methods increase aggregate demand. Thus, a
by-product of American wars has typically been a wartime economic boom in excess
of the economy’s sustainable rate of growth. Wars may shift resources from nonmilitary spending to military spending, but because military spending is included in GDP, it is unlikely to lead to a recession. Just as wars typically boost aggregate
demand, the reduction in defense expenditures after a war removes some economic
stimulus as the economy adjusts to the return to peacetime activities."

Financing Issues and Economic Effects of American Wars
"The increased government outlays associated with wars can be financed in four
ways: through higher taxes, reductions in other government spending, government
borrowing from the public, or money creation. The first two methods are unlikely
to have an effect on economic growth (aggregate demand) in the short run: the
expansion in aggregate demand caused by greater military outlays is offset by the
contraction in aggregate demand caused by higher taxes or lower non-military
government spending. The latter two methods increase aggregate demand. Thus, a
by-product of American wars has typically been a wartime economic boom in excess
of the economy’s sustainable rate of growth. Wars may shift resources from nonmilitary spending to military spending, but because military spending is included in GDP, it is unlikely to lead to a recession. Just as wars typically boost aggregate
demand, the reduction in defense expenditures after a war removes some economic
stimulus as the economy adjusts to the return to peacetime activities..."

Department of Defense Releases Selected Acquisition Report
"The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes since the September 2007 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the December 2007 reporting period.

SARs summarize the latest estimates of cost, schedule, and performance status. These reports are prepared annually in conjunction with the President's budget. Subsequent quarterly exception reports are required only for those programs experiencing unit cost increases of at least 15 percent or schedule delays of at least six months. Quarterly SARs are also submitted for initial reports, final reports, and for programs that are rebaselined at major milestone decisions."