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DoD IT Budget: Nearly $40 Billion Requested

By CIOinsight on 2011-05-18


If your CFO revealed that you’d have more than $38 billion to spend on your IT department or systems, you’d think you just received the equivalent of a blank check, right? Well, that's the amount requested by the U.S. Department of Defense (DoD) for fiscal-year 2012. Before you let your imagination take wing, however, this report from INPUT/Deltek Information Systems puts it all in perspective. Despite the hefty dollar amount, the report reveals that the DoD is firmly focused on increasing IT efficiencies and consolidation in a challenging funding environment. In other words: Military CIOs and IT departments face the same budget struggles as CIOs and IT leaders in private sector. In particular, DoD agencies are being directed to pursue efficiency and consolidation initiatives in the areas of service-oriented architecture, command-and-control network systems and “green” technology. In the end, given the pure scale of our military agencies, that $38 billion is hardly a windfall. “Tight budgets facilitate efficiency, in that [they force] prioritization,” says Deniece Peterson, senior manager of federal industry analysis within Deltek’s INPUT business unit. “However, some of the prerequisites for deploying solutions to drive efficiency -- such as cloud computing -- require significant work to standardize the DoD’s IT environment, all with security still in mind.” Here are selected highlights from the report.

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$38.5 billion is the overall, 2012 fiscal year IT budget request for all Defense agencies combined, up from the $37.8 billion spent in 2010.

90 percent of the increase in requested spending is related to Defense Information Systems Agency (DISA) projects.

Biggest spending categories (percent of budget requested):IT infrastructure (43%)Space-based battle programs (18%)Business systems (17%)

Three essential goals for business systems:• Increase incremental capabilities in condensed timeframes.• Consolidate oversight requirements into one integrated structure.• Reduce documentation needs.

$2.3 billion of the requested IT budget is for cyber capabilities/U.S. Cyber Command needs, including support for the Joint Operations Center.

$2.1 billion is the estimated amount to be spent on cloud-computing in fiscal-year 2012. This accounts for 5% of the total budget request, according to federal estimates.

$3.4 billion is being requested to help the Air Force increase IT efficiency by consolidating operations centers, reducing IT personnel and increasing energy efficiency.

R&DArmy agencies seek R&D funding for command/control equipment and communications infrastructure.

Navy agencies tightening their belts.Budget proposal includes $570 million in program cancellations and $460 million in contract savings.

Service/Support Contracts10% every year for the next three years is the intended percentage of cost reduction for IT service-support contractors.

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