FY15 Defense IT Budget Forecast: Cloudy with No Chance of Sequestration

Lloyd McCoy_65x85by Lloyd McCoy Jr., Consultant

The FY15 base DOD budget request came in at $495.6 billion, (about even with FY14) but more importantly, it’s under OMB’s budgetary caps, meaning sequestration isn’t in the cards for this year. Diving into the DOD IT budget, we see a 6% drop from FY14 to about $36.4 billion; fortunately, much of this decline has to do with a shrinking workforce and cost-savings generated by earlier IT investments.

Yes the budget is down 6% from last year, but before you go running for the hills, it’s important to remember the following: while the IT budget is reduced from FY14, agencies that purchased software are continuing to purchase software— and with no sequestration and government shutdown in sight, we’re positioned to see a better FY15 than we did FY13.

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Year-End Tip: Ask, “Is the Right Amount of Money in the Right Account?”

Steve Charles_headshot _7-23-2013_65x85by Steve Charles, Co-founder and Executive Vice President

During typical years, the feds spend about a third of the budget in the last quarter. While sales for complex deals and engagements are off, sales for easy to buy commercial items are staying strong. So, what can you do to be successful this September? Make sure to ask one of my favorite closing questions: “Is the right amount of money in the right account?”

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Key DISA Initiatives Gaining Momentum

Lloyd McCoy_65x85by Lloyd McCoy Jr., Consultant

If you recall from our webinar on DISA given back in March, we hammered home the point that DISA is central to all the major initiatives DOD is undertaking. We centered our discussion on key pillars like cybersecurity, cloud, mobility, strategic sourcing, and enterprise system consolidation. Last week DISA held its annual Forecast to Industry Day to provide a progress report on existing activities in these areas and give updates on changes taking place in the agency. Topics of the Industry Day were largely in line with our analysis in March:

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VA Seeking Analytics Tools to Enhance Veteran Care

Tomas OKeefe_65x85by Tomas O’Keefe, Senior Analyst

Some recent developments suggest that the Department of Veterans Affairs is starting to get organized and introducing more advanced analytics capabilities into its environment.

One of the new tools being introduced into the VA environment is a program called Joint Legacy Viewer, nicknamed Janus. Janus is going to give VA employees a significantly better ability to view medical information from the Defense Health Agency in a single screen. Additional capability will be added to the program to provide the ability for clinicians to order medication and other necessities based on the information on the screen. As more and more medical information is available via Janus, the VA will turn towards analytics to predict care for particular populations of veterans.

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How to Sell Your Products to the Army in FY15

Stephanie Headshot 65x85by Stephanie Meloni, Senior Analyst

Despite declining budgets, the Army remains one of the largest IT organizations in the world, and it still has the largest IT budget of all the services. Army’s FY15 budget request represents about a 10 percent reduction in funding US Army Logofrom FY14 enacted levels. Many of the IT initiatives the Army is implementing to modernize their systems and networks deal with consolidation, simplification, and standardization – and this accounts for some of the reduced funding levels, since there aren’t as many costly legacy systems to maintain. So, for the COTS community, this reduction in funding isn’t all bad news, especially if your products can help the government operate more efficiently. In FY15, many of the IT modernization efforts will focus on making systems interoperable as well.

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Are You Following the Government’s Gift Rules?

Photo of Allan RubinMaybe it’s the summer or the result of a stronger economy, but lately it seems I’m constantly reminded of a major difference between business-to-government (B2G) and business-to-business (B2B) marketing: the gift rules and restrictions. It struck me yesterday when I received a Starbucks gift card in the mail from a B2B vendor with whom I’d never spoken or met. (Side note: I was amazed that this vendor neglected to include a business card or simple contact information so I could easily thank him/her, but that’s another story.)

My job title and (incorrect) assumption that I control a massive marketing budget have earned me unsolicited Amazon gift cards, invitations to fancy meals and sporting events, gadgets, and other blatant attempts to buy a meeting with me, all in the interest of pitching a new marketing software package or service offering.

Hey, I’m not knocking it. When I worked exclusively in B2B marketing, I did it too, and it often worked. But in B2G marketing, it’s not that simple.

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Biggest Health IT Opportunities Ever – Coming Soon

Lloyd McCoy_65x85by Lloyd McCoy Jr., Consultant

Last week more than 1,400 government officials and industry representatives from the health IT community met in Orlando for the Defense Health IT Symposium.  This conference allowed senior government stakeholders to give updates on some of the major initiatives within DHA and the Military Health System (MHS).  Altogether over $50 billion a year is spent on DOD healthcare with about $2 billion that DHA allocates to IT.

Here are a few of the key upcoming priorities IT products manufacturers selling into the DHA and other entities within MHS should know about:

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