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U.S. C4ISR Spending Remains Strong – Large Firms Continue to Dominate Contract Awards - New analysis from Frost & Sullivan U.S. C4ISR Competitive Analysis, reveals that there was $28.9 billion worth of prime contracts awarded in 2005. LSIs received more than half of the total number of contracts and 65.0 percent of the value.
U.S. C4ISR Spending Remains Strong – Large Firms Continue to Dominate Contract Awards

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2006/07/25 - New analysis from Frost & Sullivan U.S. C4ISR Competitive Analysis, reveals that there was $28.9 billion worth of prime contracts awarded in 2005. LSIs received more than half of the total number of contracts and 65.0 percent of the value..

   
 
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Extensive experience and a proven track record dealing with the DoD acquisition systems gives large manufacturers and lead systems integrators (LSIs) an advantage over the competition, but their size can also allow cost and schedule overruns. Because they work on several projects simultaneously with each of the DoD agencies, they have the unique ability to see capability gaps first hand, and can recommend solutions quickly. Needed technologies are often not present in-house, leading to a constant search for team members and acquisition candidates.

New analysis from Frost & Sullivan U.S. C4ISR Competitive Analysis, reveals that there was $28.9 billion worth of prime contracts awarded in 2005. LSIs received more than half of the total number of contracts and 65.0 percent of the value, with mid-tier firms awarded 15.0 percent and small service and technology firms increasing their participation and earning 20.0 percent of the contract value awarded.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the U.S. C4ISR Markets, then send an e-mail to Tolu Babalola, Corporate Communications, at tolu.babalola[.]frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. The brochure will be e-mailed to you upon receipt of this information.

In the commercial space, small service and technology companies tend to concentrate on specific technologies or services, providing momentum for C4ISR technology. Since it is the smaller firms who develop the innovative ideas, they often team up with the larger enterprises to gain access to lucrative DoD contracts.

“The small-sized firms are extremely valuable as they adopt the latest commercial standards and possess the required experience as well as engineering skills in areas such as wireless communications and networking,” says Frost & Sullivan Industry Analyst Brad Curran. “The DoD hopes to continue to leverage established and cutting-edge commercially successful technologies that have military potential to field new C4ISR capabilities more rapidly and inexpensively.”

Such collaborations are favorable to the DoD, since U.S. foreign policy makers are rediscovering the value of building allied coalitions to prevent and fight terrorism. The government will have to work with coalition partners to solve issues concerning interoperability, information security, sensitive but unclassified information, standardized tools, processes and procedures.

To meet its foreign policy goals, the United States has to build interactive databases accessible to many nations and non-governmental organizations (NGOs) in different languages, and with many levels and types of communications technology and collaboration tools.

“There is inadequate cooperation to ensure standard operational procedures for communications networks,” notes Curran. “While joint information assurance management and training are required as new technologies are integrated, the operational viability of present systems must be simultaneously preserved.”

Currently, the C4ISR market needs to lower the vulnerability of technological and physical choke points, which enemy forces would exploit. This threat is especially significant since overseas U.S. bases and commercial infrastructure are under foreign control.

Each military service is only responsible for certain elements of the overall network, no single authority has the power or budget to oversee the entire network defense operation.

Such issues only highlight the need for co-operative research and development agreements between the public and private sectors. Defense and commercial firms need to collaborate and use innovative commercial off the shelf (COTS) equipment to meet network centric warfare (NCW) needs.

The U.S. C4ISR Competitive Analysis, part of the Aerospace & Defense subscription, provides a market profile and leading company statistics. In this analysis, Frost & Sullivan’s expert analysts thoroughly examine large manufacturers and systems integrators, mid tier firms, as well as small service and technology companies. Analyst interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

U.S. C4ISR Competitive Analysis
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U.S. C4ISR Spending Remains Strong – Large Firms Continue to Dominate Contract Awards

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Publisher Contact: Tolu Babalola 
210.477.8427 tolu.babalola[.]frost.com
 
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