This report analyzes the current state of affairs in defense acquisition by combining detailed policy and data analysis to provide a comprehensive overview of the current and future outlook for defense acquisition. This analysis will provide critical insights into what DoD is buying, how DoD is buying it, from whom is DoD buying, and what are the defense components buying using data from the Federal Procurement Data System (FPDS). This analysis provides critical insights into understanding the current trends in the defense industrial base and the implications of those trends on acquisition policy.

Annually, CSIS senior adviser Mark Cancian publishes a series of papers on U.S. military forces—their composition, new initiatives, long-term trends, and challenges. The overall theme of this year’s report is the struggle to align forces and strategy because of budget tradeoffs that even defense buildups must make, unrelenting operational demands that stress forces and prevent force structure reductions, and legacy programs whose smooth operations and strong constituencies inhibit rapid change. This report takes a deeper look at the strategic and budget context, the military services, special operations forces, DOD civilians and contractors, and non-DOD national security organizations in the FY 2020 budget.

The Trump administration’s FY 2019 budget proposal laid out a set of priorities. To pay for these initiatives, the FY 2019 defense budget rose 14 percent above the FY 2017 level. The Congress generally endorsed the administration's approach. However, the choices showed that there is no escaping the tradeoff among readiness, modernization, and force structure. This study examines the changes in the FY 2019 budget for each of the military services, DOD civilians, and contractors, how the budget shapes the forces, and the challenges ahead for building and maintaining the forces needed to implement the administration's stated strategy.

Contents: (1) U.S.-Israeli Relations and the Role of Foreign Aid; (2) U.S. Bilateral Military Aid to Israel: A 10-Year Military Aid Agreement; Foreign Military Financing; Ongoing U.S.-Israeli Defense Procurement Negotiations; (3) Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs: Multi-Layered Missile Defense; High Altitude Missile Defense System; (4) Aid Restrictions and Possible Violations: Israeli Arms Sales to China; Israeli Settlements; (5) Other Ongoing Assistance and Cooperative Programs: Migration and Refugee Assistance; Loan Guarantees for Economic Recovery; American Schools and Hospitals Abroad Program; U.S.-Israeli Scientific and Business Cooperation; (6) Historical Background. Illustrations.

The authors prototyped a new way to apply data analysis on a variety of government and commercial data sources to assess the relative contractor performance risks in Air Force acquisition contracts and programs.

The interwoven futures of humanity and our planet are under threat. Urgent action, taken together, is needed to change course and reimagine our futures.