Top CAPEX Investment Areas in Army IT for FY21

By Toné Mason, DOD Senior Analyst

It is no exaggeration to say FY20 has been a tumultuous year and that the upcoming FY21 budget will likely see noteable changes from what the White House submitted in February. However, for the Department of Defense, and the Army in particular, the major strategic priorities highlighted in the FY21 budget request are unlikely to change.

Here are the top 5 IT programs the Army has slated for FY21, ranked by level of capital expenditure. These represent areas where the Army is expanding their focus, and consequently dollars and where they need IT solutions to help them address their requirements.

High Performance Computing Modernization Program

With FY21 capital expenditure (CAPEX) funds, exceeding $188M, the High Performance Computing Modernization Program (HPCMP) is the largest CAPEX program  and a key investment opportunity for vendors who offer products focused on data analytics, big data, artificial intelligence and edge computing. HPCMP provides artificial intelligence and machine learning technology for the Army, Air Force, Navy and other Defense agencies. This program is anticipated to lead to the development of 3D computations and simulations for major weapon designs and war time capabilities.  

Nett Warrior (Ground Soldier System)

The Nett Warrior (NW) Program has requested $160M for FY21. This program’s focus is on leveraging smart phones and tactical radios to provide real-time information on the positions of friendly forces and opposition, potential risks, terrain information and more. The system enables an integrated mission and provide situational awareness during combat operations. The NW system is a good opportunity for vendors that focus on predictive analytics, information management and 5G to showcase their technologies. Providing access to existing data and predictive analysis is what the Army needs.

Tactical Server Infrastructure

Next on the list is the Tactical Server Instructure investment program. The $95M of dedicated CAPEX funds will go towards acquiring operating system software, virtual machine configuration software, firewall software, password management software and server integration. This is part of the program office’s overall effort to standardize the hosting platform for command posts.

Personnel Automation Systems

Another area of investment will be around automating personnel systems. This investment program titled, you guessed it, Personnel Automation Systems will see its funding increase next year to include $68M in CAPEX funding. Personnel Automation Systems is a component of the Automated Data Processing Equipment (ADPE) initiative which supports the Army’s sustaining base automation systems. The ADPE program provides combat service support to the warfighter in the areas of command and control, logistics, personnel and other sustainment base functionalities.

The Army will be looking for IT products focused on enhancing information management and big data, but the key will be how to enhance usage of existing systems. Reducing operational costs and lead time in the advancement of the management of personnel information is of utmost importance to this program. Upcoming funding will be going towards system modernization, which is focused on process standardization, interoperability and the replacement of obsolete hardware.

Command Post Integrated Infrastructure (CPI2)

Rounding out the list is the Command Post Integrated Infrastructure program, or CPI2. With CAPEX funding at $58M, the CPI2 program integrates supporting mission command solutions to enhance survivability and mobility for warfighters.

CAPEX dollars will go toward design engineering and prototype development of formation-appropriate Mission Command Platforms (MCP). Key technology requirements will include cloud management/migration support, information management, big data management and cybersecurity solutions.

The Army requirements that have the most DME funds request for FY21 all share a common theme. An inherent need for integration, standardization, information management, streamlined access to real-time information and predictive analytics.


If you need to better understand where to target your efforts in DOD, reach out to immixGroup’s Market Intelligence team to learn more.

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About Toné Mason
Toné Mason is a Senior Analyst on immixGroup's Market Intelligence organization. She has a B.A. in Government and International Politics from George Mason University. Prior to joining, Toné was a Business Development Intelligence Analyst at Chenega Corporation and previously a Research Analyst at Deltek working on their GovWin product.

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