Same thing happened when Clintoon was Prez and Les Aspin SecDef.
http://www.nytimes.com/1993/02/04/us/clinton-seeking-14-billion-cut-by-the-military.html
I can tell you for a fact this happened in earnest when Bush Sr. was President in 1992. It was right after the Gulf War, and post Soviet breakup. Lots of offers got whacked.