Top CAPEX Investment Areas in Air Force IT for FY21

By Toné Mason, DOD Senior Analyst

Capital expenditure funding is where new opportunities lie for IT spending. In this blog, I will cover the top 5 CAPEX-funded IT efforts the Air Force has slated for FY21:

(1) B-52 Defense Research and Engineering Network – Tinker | FY21 CAPEX: $135M

The B-52 Defense Research and Engineering Network program at Tinker Air Force Base is a relatively new program which received initial funding in FY20. With zero steady state/operation and maintenance funds allocated, this a good time to get involved with this program. The program is focused on providing a fast and efficient network connections for the B-52 engineering virtual desktop environment (VDI). Contractors with experience in network infrastructure, servers, storage, endpoints, workflow management, 5G and cybersecurity should consider this program.

(2) Enterprise Ground Services (EGS) | FY21 CAPEX: $115M

This request is in line with EGS total IT spending in FY20. Zero SS/O&M dollars was requested. The Air Force remains in an active procurement phase for this effort. The program is focused on building a common architecture for services to be provided across a range of ground activities. Contractors with an interest in, or who offer logistics-based technologies, workflow management and information management solutions should keep an eye on this program.

(3) Defense Enterprise Accounting and Management Systems (DEAMS) | FY21 CAPEX: $47M

Most of the funding for this long-standing program is allocated towards SS/O&M, but there are still funds being invested in technology. Contractors with a focus on information management, financial technology and predictive analytics should consider getting involved with this program. This is a major IT effort for the Air Force that is driving IT management, the integration of financial information across the force and the enablement of timely and user-friendly financial management.

(4) Cloud Hosted Enterprise Services (CHES) – AF | FY21 CAPEX: $41M

If you offer technology that is built around Microsoft Office365, cybersecurity, information management, and/or network infrastructure, the relatively new Cloud Hosted Enterprise Services (CHES) effort is one to get involved with. For the past two fiscal years CAPEX funding has been under half a million dollars, so the FY21 funding increase is significant. CHES is the Air Force’s adaption of Microsoft Office365 and will provide airmen with enhanced functionality of the Microsoft application.

(5) Air Force Integrated Personnel and Pay System (AFIPPS) | FY21 CAPEX: $31M

AFIPPS, a major IT program for the Air Force, is focused on human resource management efforts. The goal is to provide real-time accuracy for force information and to be adaptable for future changes to military operations. Contractors interested in getting involved with enterprise-wide IT efforts and with COCOM human resource applications should evaluate the AFIPPS program. Technologies relevant to this program include, information management, cloud management/migration support and enterprise resource planning software, just to name a few.


It is important to note, while some of these programs like DEAMS and AFIPPS may be more established, there are still opportunities that are evident through on-going CAPEX funding. If you would like to get more involved, it is recommended to leverage existing relationships that you may have with contractors who are at work on these programs. Accenture Federal, Booz Allen Hamilton and CACI International are just a few with existing work at DEAMS. If you have more of an interest in up-and-coming efforts, the B-52 Defense Research and Engineering Network or the EGS may be better opportunities.

FY21 will be one of the most interesting years for IT funding within the Air Force. With the impacts of an election year in FY20, the re-prioritization of information technology funding and with the launching of the U.S. Space Force, make sure you are prepared.

Read my previous blog to learn about FY21 Top CAPEX Investment Areas in Army IT.

Subscribe to immixGroup’s Government Sales Insider blog to keep on top of IT trends in government.

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

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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