GovWin
B2G is moving!
Blogs posted after May 22, 2015 will be located on Deltek's central blog page at www.deltek.com/blog.
Just select the "B2G Essentials" blog to continue to receive this valuable content.
GovWin Recon - April 30, 2014

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Health IT:

Big Data / Analytics:

Transparency and Performance:

Waste, Fraud and Abuse:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Legislation:

Mergers and Acquisitions:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

Transition Plan Released for Cloud Security Baseline Update

The program office at the General Services Administration (GSA) in charge of overseeing the government-wide baseline for cloud security is set to tackle its first update of requirements. As the Federal Risk and Authorization Management Program (FedRAMP) releases revised security controls, vendors will be tasked with ensuring their cloud offerings comply with the changing standards.

Along with the Federal Information Security Management Act and agency guidance, the initial FedRAMP baseline leveraged the third revision of a special publication from the National Institute of Standards and Technology (NIST), Security and Privacy Controls for Federal Information Systems and Organizations (SP 800-53). Even as the FedRAMP office established guidance around this document, a fourth revision to the document was underway. The update to SP 800-53 was finalized at the end of April 2013, and it marked the most comprehensive update to the security control catalog since the 2005. Changes in this revision incorporate “Build It Right” strategy and continuous monitoring, and additions to the control and control enhancements include mobile and cloud computing. (The update expands the catalog of security controls from 600 to more than 850.) Following the publication of the fourth revision of SP800-53, the FedRAMP program office solicited public comment on the update. It’s expected that the changes to the FedRAMP baseline controls will reflect this feedback.

With FedRAMP’s rolling application process and approvals that incorporate continuous monitoring, hard and fast changes to baseline controls would have raised challenges for agencies and vendors alike. Federal agencies continue to fine tune their cloud security requirements, especially around data sensitivity and privacy concerns. Meanwhile, cloud security providers find themselves at different stages of the FedRAMP process. Considering the ‘crawl, walk, run’ approach the program adopted from inception, it’s fitting that GSA’s transition plan appears to take a phased approach to implementing adjustments as standards evolve.

The FedRAMP program office is offering guidance to cloud service providers (CSPs) through a plan released on Tuesday, April 22, 2014. Under its transition strategy, CSPs fall into three categories: Initiation, In Process, and Continuous Monitoring. All CSPs will be subject to compliance with the new baseline eventually.  While vendors that fall into the Initiation category will need to adopt the new controls immediately after their release, providers in the other two categories will have some time to achieve compliance and submit updated documentation.

Initiation: Vendors in the initiation category include any providers that are not yet in contract discussions with a federal agency, that are in early stages of applying to FedRAMP or in readiness review process. This also extends to vendors expecting to start review for provisional authorization by the Joint Authorization Board after the release of the new baseline and templates. Providers in this group will be expected to implement the new baseline and use updated FedRAMP templates, as well as testing all new controls before receiving authorization.

In Process: This category pertains to CSPs that have made some headway in the approval process. Providers will qualify if they have commenced review for authority to operate by the Joint Authorization Board (JAB) by June 1, 2014. Cloud providers with agency level progress may also qualify. As with review by the JAB, cloud vendors under agency review for ATO by June 1st qualify. Also, providers that have a contract or are in contract negotiation with agencies before June 1, 2014 will be considered “in process.” These vendors will be able to complete the authority to operate review using the current baseline (using SP800-53 revision 3 FedRAMP controls and templates). They will have one year from their authorization date to comply with the new baseline.

Continuous Monitoring: These are the vendors that have already completed the FedRAMP process. CSPs with current authorizations and an annual assessment completed before June 1, 2014 will have one year from the last date of their assessment to comply with the new baseline.

At the beginning of 2013, some 70 providers were reported to be in the FedRAMP application queue. As of April 2014, fewer than 20 providers have achieved compliance. That leaves around 50 vendors in either the Initiation or In Process category. The ones that fall into the Initiation group could face significant additional business expenses as they rush to comply with the new controls and avoid further delays to achieving authorization status. According to a notice from the program office, “the level of effort will require testing between 140 to 150 controls.” This includes around 72 new controls in revision four and 70 core controls for annual testing. The revised FedRAMP baseline is expected to be released on or about June 1, 2014.

------------------------------

Originally published for Federal Industry Analysis: Analysts Perspectives Blog. Stay ahead of the competition by discovering more about GovWinIQ. Follow me on twitter @FIAGovWin.

 

Navy FY 2015 IT Budget Snapshot

A few weeks ago, the Department of Defense released their FY 2015 IT budget numbers after the customary delays that we have come to expect during budget season. With the release we can now get a better sense of the DoD’s plans and intentions for the IT portfolio and where their investment dollars will flow. This week, I will take a look at the Navy data to see what we can glean.

Unlike the civilian departments and agencies, which were included in a spreadsheet file that OMB traditionally releases each year, the full defense IT budget data was released through the data feeds function of the Federal IT Dashboard. Navy’s position as the third largest of the four DoD components remains unchanged and its year-over-year declines put it basically on par with the Army which shares the bulk of the IT budget cutting pain at the Pentagon this budget cycle.

Specific year-over-year changes include:

  • Total Information Technology budget declines from $6.8B in FY 2014 to $ 6.2B in FY 2015, down 9.3%
  • Development, Modernization, and Enhancement funding drops from $1.9BM in FY 2014 to $1.1B in FY 2015, a decline of 13.4%.
  • The Navy’s relative share of the total DoD IT budget has been fairly stable at 21-22% from FY 2013 to FY 2015, although it appears this proportion may be eroding as more funding shifts to joint defense-wide programs like the JIE.


Noteworthy IT Programs . . . by the Numbers

Comparing budget size and year-over-year changes in total budget as well as new development funding, here are five initiatives that stood out based on the numbers:

  • Consolidated Afloat Network Enterprise Services – CANES is an enterprise afloat system to provide management services, enterprise services such as e-mail services, directory services, information repository service, web services, etc. It is the largest Navy IT program receiving a budget increase in FY 2015, moving from $385M to $423M, up $38M, or 10%. The program consists of 93% developmental funding and receives the Navy’s largest DME increase for FY 2015, up nearly 10% over FY 2014.

  • Base-Level Information Infrastructure (OCONUS Navy Enterprise Network (ONE-NET)) – BLII is the OCONUS equivalent to CONUS NMCI network. BLII receives the single largest total IT budget bump at +$48M, a 31% increase from FY 2014. The investment line is fully slated for the O&M category.

  • MITSC Data Center Reporting – This investment line was created to support the OSD requirement for data center fiscal reporting. The FY 2015 budget of $58M is a $27.5M increase from FY 2014, nearly a 90% increase. The investment is 100% DME spending.

  • Maritime Maintenance Systems – NAVSEA MMS Initiative is to consolidate overlapping application functionality and databases, data centers, and infrastructure into a fully integrated enterprise solution at reduced costs. At $32M, up from $10M in FY 2014 and $18.6M in FY 2013, the investment received the third largest DME increase for FY 2015 of nearly $15M, up $12M from FY 2014.

  • Fleet Command and Control Capabilities – Provides functional applications in Command and Control in support of the Navy fleet. This investment receives a 20% budget increase from $51M to $60.5M in FY 2015 as well as the fourth largest DME bump from $22M to $32M, a nearly 50% increase.

Possible Net New Funding in FY 2015

While the above programs are set to receive some significant bumps in their total and/or new development budgets, all of them are well established initiatives with ongoing work in progress, meaning there is likely limited opportunity for competition for the work. So what brand new investments might be up for grabs at Navy in FY 2015?  Currently, the Navy has three IT initiatives that have zero funding in FY 2014 and budgeted funds for FY 2015 and only one program meeting that criteria has DME funding. The Marine Corps Orders Resource System is an order management system targeted for $500K in investments in FY 2015. The Manpower Information Portal was funded in FY 2013 and receives $2M in O&M funding for FY 2015. Finally, the Navy Non-Medical Care Management System receives $400K in O&M funding with the new budget. (See table below.)


Like so much of what we have seen at the Navy over the last several years, they continue to press for cost savings, efficiencies, and reduced overall spending. Their largest single investment, NGen, which accounts for more than 20% of their FY 2015 IT budget, is slated for a nearly 25% reduction in FY 2015. Navy leadership continues to stress that this trend will continue, further tightening the competitive landscape for the foreseeable future.

---
Originally published in the GovWin FIA Analysts Perspectives Blog. Follow me on Twitter @GovWinSlye.

GovWin Recon - April 29, 2014

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Big Data / Analytics:

Mobility:

Transparency and Performance:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Legislation:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

 

Where DME Dollars are Going in FY 2015 Defense-Wide IT Funding

In last week’s post, I provided an analysis of “net new” IT funding in the Army’s budget request for fiscal year 2015.  This week’s post shifts the perspective a bit to take a look at IT development, modernization, and enhancement (DME) funding in the Defense Agencies for FY 2015.  Net new funding, defined as DME dollars slated in FY 2015 for programs that received zero total dollars in FY 2014, will not be part of the equation this week for the simple reason that there is none.  Yes, you read that correctly.  The Defense Agencies will have $0 in net new IT funding in FY 2015, making it critical that vendors focus business development efforts on existing Defense-Wide programs receiving DME and/or operations and maintenance dollars.

Top Ten Defense-Wide Programs Receiving DME Funding


DME funding for the top ten Defense-Wide programs in FY 2015 totals $673 million, up $144 million from total DME funding in FY 2014 of $529 million for these same programs.  Looking at the list, it is clear that DoD intends to fund the following priorities:

  • Health IT/Defense Health Modernization
  • Joint Information Environment (JIE)
  • Command and Control
  • Financial Management/ERP

Health IT/Defense Health Modernization

The presence of three major health IT initiatives sticks out prominently.  Funding for the DoD Healthcare Management System Modernization probably reflects the fact that the government anticipates it will make an award for the DHMSM effort at least partway through FY 2015.  Curiously, the Integrated Electronic Health Record Increment 1 effort, now called the Defense Medical Information Exchange (DMIX), anticipates receiving $82 million in DME funding despite the fact that the DoD expects the program will enter sustainment by FY 2015.  The $53 million requested for the second increment of the Theater Medical Information Program (TMIP) will fund a host of installation, integration, and testing efforts.

Joint Information Environment (JIE)

Another program in the top ten list is the Defense Information System Network (DISN), with $104 million in requested FY 2015 DME funding.  As the DoD’s primary transport network, the DISN is central to standing up the Joint Information Environment.  Activities to be funded in FY 2015 include the ongoing refresh of network hardware to enable Internet Protocol-based communications, additional network testing, and a focus on expanding the classified optical transport network and classified unified capabilities in the area of responsibility of U.S. Pacific Command.  Similarly, the activities of the Joint Interoperability Test Command (JITC) are increasingly important for the future success of the JIE.  The JITC is the DoD’s command organization responsible for certifying interoperability across components, making its efforts central to the effective operation of the JIE.  Funding for the JITC will be down in FY 2015, in part because of delays in the evolution of testing and evaluation methodology for the JIE.  Lastly, the DoD CIO Programs line is also focused heavily on developing the policy framework for supporting the JIE, including expanding the use of advanced analytics and cloud computing.

Command and Control

Three areas of investment make up funding for command and control.  The first is C4IAS, for which $40 million has been requested.  Funding for C4IAS reflects an ongoing shift at the DoD toward a greater reliance on Special Operations Forces globally.  The investment provides command and control and information sharing capabilities from the garrison to tactical environments by incorporating local and wide area networks into a unified enterprise network.  Requested funding for the Global Command and Control System – Joint comes in slightly under that for C4IAS at $39 million.  GCCS-J is an older system currently in sustainment.  However, it is also being modernized to enable greater use by the joint force.  Investment in GCCS-J illustrates the increasing importance the DoD is placing on joint operations.  Similarly, funding for the Teleport Generation 3 investment is joint-focused, “replacing obsolete and end of life equipment with new, more capable equipment that supports [greater] throughput requirements” for a network-enabled force.

Financial Management/ERP

The final investment rounding out the top ten is the second increment of the Defense Agencies Initiative.  Funding for the DAI indicates DoD’s ongoing drive to achieve a clean audit by FY 2017.  This is a program driven by Congressional mandate, signifying to vendors the importance of knowing how legislative requirements can translate into Defense spending.  In the current environment knowing these requirements is about as close to a sure thing as anyone can ask for.

 

 

 

GovWin Recon - April 28, 2014

 

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Sequestration / Budget:

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Health IT:

Big Data / Analytics:

Mobility:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Budget / Sequestration:

Mergers and Acquisitions:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

GovWin Recon - April 25, 2014

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts.

Sequestration / Budget:

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Health IT:

Big Data / Analytics:

Mobility/Communications:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Legislation:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

Governors focusing on educational performance, corrections, and mental health

2014 finds the governors as committed as ever to their growth agendas launched over the previous two year. Continued budget surpluses open the door to state innovation and experimentation.

Each year Deltek compiles the forward-looking agenda items from each of the governors' state of the state addresses.  This year found some interesting shifts in the areas of emphasis.  States have been out of recession for more than two years now, and governors have been ambitious with their agendas.

Deltek classifies each of the governors' agenda items by vertical (as shown in Figure 1 below).  We also track the popularity of each vertical as compared to the recent trend.  For 2014, Education, Justice/Public Safety, and Social Services are the stand-out verticals.

Figure 1. 2014 Agenda Item Popularity vs. 2012-2014 Average, by Deltek Vertical

Source: Deltek

Deltek also subclassifies each agenda item below the vertical level (not shown above).  In the Education vertical, the governors were specifically interested in improved performance for Pre-K through 12 public education.  They are also keen to blend high school education into the two- and four-year higher educations systems to create a seamless pipeline of educational attainment for workforce development purposes.  Containment of higher education tuition costs is also a significant interest and a key part of performance measurement for these institutions.

Corrections continues to dominate the Justice/Public Safety vertical, where governors want to contain costs by moving non-violent offenders to community supervision.  They also want to develop better processes for reintroducing ex-cons back into society and the workforce.  This year marks the first time government have begun to look at the economic impacts of incarceration as well as the fiscal impacts.

Governor interest in Social Services increased for the first time since the recession.  With little federal direction in this area, the vertical has been adrift.  However, this year found governors interested in addressing public mental health concerns, driven in part by school shootings, veterans, and drug addiction.  Drug addiction and treatment, given recent upswings in crystal meth and heroine usage, has emerged a top level priority.

Learn more at our FREE upcoming webinar (May 8th).

More detailed information for all of the verticals covered in Deltek's recent report "State of the State, 2014." The report is available for immediate download by Deltek State & Local Industry Analysis subscribers.  It can be purchased online by those who are not subscribers.  The report comes with a spreadsheet that includes all of the governors agenda items categorized for easy sorting and reference by market strategists.

 

IT Contracting Half-way Through FY 2014 – Civilian is Chugging, but Can DoD Catch Up?

A year ago at this time, if you will recall, we were watching and waiting to see if federal agencies would have FY 2013 appropriations made and budgets approved or whether they would face full-year continuing resolution-level spending and sequestration. What a difference a year makes, with FY 2014 budgets passed months ago. So how are agencies doing at getting their information technology (IT) contract dollars obligated at the mid-point and what might we expect in the second half of FY 2014? Let’s take a look.

Last week, I looked at the total market contract obligations at the mid-fiscal-year point. This week I’ll look specifically at IT obligations. In this, and other similar scenarios that I have explored, I took a rough “back of envelope” approach to projecting potential contract obligation rates for the remaining two fiscal quarters. For consistency, I will use the same baseline: If agencies obligate at least 90% of what they did in FY 2013, what might that project for spending on contracts in the second half of this fiscal year.

In the latest federal FY 2015 IT budget request, OMB reported the total enacted FY 2014 IT budget to be about $75 billion, which is $2.5 billion (3.5%) more than agencies spent in FY 2013.  So this 90% threshold that I am using for potential FY 2014 spending, while not a perfect comparison, might be conservative. We’ll just have to see.

Contract Obligations Compared

For IT, these twenty top-spending departments account for $16.2 billion in combined Q1 and Q2 obligations for FY 2014 so far, although DoD’s reporting lag will most certainly increase that amount. If they spend 90% of what they did in FY 2013 they will have $43.2 billion left to obligate in the remaining two quarters of this fiscal year. (See table below.) Under that assumption, the remaining federal departments and agencies would account for roughly $1.1 billion for Q3 and Q4, reaching the overall $44.4 billion mark for the second half of the year.

Observations

  • The civilian agencies in the top twenty have reported yearly obligations of $9.4 billion, $8.9 billion, and $9.5 billion for FY 2012, 2013 and 2014 respectively. So for FY 2014 these civilian departments are currently running on par with FY 2012.

  • The defense branches have reported yearly obligations of $18.4 billion, $16.2 billion and $6.7 billion for FY 2012, 2013, and 2014 respectively. Granted, the FY 2014 Q1-Q2 data is incomplete due to DoD’s reporting lag, which could take up to 90 days to settle out. So the question then is whether we will see another $10 billion in obligations post to the defense branches in the coming days to put them on par with last fiscal year or whether we will see the softening that’s apparent from FY 2012 to FY 2013.

  • Outside of DoD, there is not that much variance year-over-year. Most departments are within $100 million of what they spend in Q1-Q2 of last year. The SSA, USDA, and VA have posted increases of $200 million in obligations over this time in FY 2013.

What we may be seeing in the data so far – at least with the civilian organizations – is that they are enjoying the benefits of having budgets in place relatively early in the fiscal year, compared to dealing with CRs and late-breaking omnibus spending measures. There’s no surprise there. The real story in the data may be what is happening in the defense sector – that draw-downs, realignments, and program delays appear to be having noticeable impacts on their IT contracting run rates. Only time will tell if they will make up the difference in the second half of the year.

---
Originally published in the GovWin FIA Analysts Perspectives Blog. Follow me on Twitter @GovWinSlye.

GovWin Recon - April 24, 2014

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Sequestration / Budget:

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Health IT:

Big Data / Analytics:

Mobility:

Transparency and Performance:

Waste, Fraud and Abuse:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free! 

More Entries