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

by 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.

Also, despite the sometimes cloudy fiscal picture, IT is seen as a force multiplier and DOD’s IT vision and acquisition strategy centers on three priorities, established around the concept of treating information as a strategic asset:

1. Establishing a robust, reliable, rapidly scalable and interoperable infrastructure
2. Protecting and defending information and information systems
3. Optimizing IT investments and more rapidly deploying IT capabilities

At the end of the day, DOD wants to optimize how information is stored, accessed, processed, shared, and analyzed. As a result, the Department’s IT priorities in the next fiscal year have largely been carried over with a major emphasis on interoperability, infrastructure consolidation, and improving cybersecurity. The U.S. Army’s going to maintain focus on network modernization; the U.S. Navy will continue its efforts around consolidation and allowing its’ afloat networks to communicate; the U.S. Air Force will be improving cyber and common operating pictures so airmen can securely communicate regardless of what system they’re using.

DOD thinks in 5 year increments when it comes to budget planning. Therefore, with rising personnel costs and major weapons systems squeezing budgets for the foreseeable future, DOD senior leaders and program managers are leaning on information technology as a means of doing more with less; as a solution provider, this is the golden opportunity for you to help government agencies eliminate inefficiencies and drive cost-savings for a more agile government.

If you want to learn more, please join us for our must-attend event, the Government IT Sales Summit on November 20th. Anyone who sells technology products or solutions to DOD can hear experts from immixGroup’s Market Intelligence organization identify and explain targeted sales opportunities for COTS manufacturers and solution providers and discuss how to navigate the complex waters of DOD. Topics discussed will include DOD IT budgets, organizational landscapes, major acquisition drivers, and FY15 programs.