The Department of Defense (DOD) business environment continues to evolve. Operation Iraqi Freedom is complete. Operation Enduring Freedom is scheduled to end December 2014. The recent budget passed by Congress restores some of the defense cuts, but significant reductions continue and the long term issue of sequestration remains unresolved. The impact of these actions is reduced requirements and resources for the DOD. The DOD budget continues to shrink from a peak of about $738 billion to a projected 2014 budget of about $520 billion, plus almost $81 billion for Afghanistan and other overseas operations. This translates to a smaller Army and Marine Corps, a smaller surface fleet, and reduced procurements. The focus is shifting to special operations, unmanned aerial vehicles, cyber security, space, and submarines.
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