Top CAPEX Investment Areas in Navy IT for FY21

By Toné Mason, DOD Senior Analyst

In accordance with the FY21 President’s budget request, the Navy is on track to receive a boost of more than $200M in CAPEX funding for the new fiscal year, which brings FY21 CAPEX funding for Navy IT to more than $1B.

The top 3 Navy programs seeing the biggest boosts in funding in FY21 are also among the top 5 DOD programs receiving the most CAPEX funding.

Here are the Navy programs at the top of the list:

1. Navy Maritime Maintenance Enterprise Solution – Technical Refresh (NMMES-TR)

With CAPEX funding for this program at $114.9M, NMMES-TR will receive more than double the next highest program on the list. Funding for FY21 will go towards the award for a prime system integrator and a business application contract.

NMMES-TR will provide an enterprise IT solution for ship maintenance and shipyard repair. The Navy is primarily focused on enhancing predictive maintenance, cybersecurity, developing a centralized data environment and expanding the analytical capabilities of the solution.

2. Navy Standard Integrated Personnel System (NSIPS)

Second on the list is NSIPS, previously known as NP2, with $56M being allocated. Like NMMES-TR, it is also seeing a 50% uptick of funding over FY20.

The goal of the NSIPS is to provide a central personnel management system for sailors worldwide. Increased funding will support technology requirements for a centralized data environment, workflow management and task automation.

3. Navy Electronic Procurement System (ePS)

CAPEX funding for ePS for FY21 exceeds $54M. CAPEX funding has remained relatively stable for this program and O&M funding remains relatively low at around $1M. This program remains within the investment phase for new technology.

ePS will provide the ability to write contracts more efficiently. The system will be capable of processing contract requirements electronically and the ability to work with other systems as necessary. As a result, this system will be highly data centric. Technology requirements will include the ability for data scraping, data storage, real-time reporting and analysis.

4. CNP CIOs Support

With CAPEX funding of $43.4M, this program is seeing a sharp increase in DME funding — up from just $4.6M in FY20. O&M funding currently remains stable with $42M allocated for FY21. Information on this program is being held closely, but what we do know is that technology requirements are focused on data and information management, cybersecurity and enterprise resource planning. Contractors who have previous past performance with enterprise-wide data intelligence systems would good candidates for this program.

5. Network On The Move (NOTM)

Number 5 on the list for FY21, NOTM has CAPEX funding totaling $37M. The majority of funding remains in CAPEX, with only a couple thousand dedicated to O&M. This program is focused on maximizing the utilization of existing systems and the enablement of mobility. Contractors with offerings focused on remote access, full motion video (FMV) and mobile equipment solutions may find that this program is a good fit.

Conclusion

With Navy CAPEX programs seeing a spike in IT CAPEX funding, now is a good time to get involved. FY20 is over and the future looks bright for the Navy’s IT spending in FY21.

You may also be interested in my previous blogs:

 

Subscribe to immixGroup’s Government Sales Insider blog, for future updates on top 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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