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GovWin Recon - January 30, 2015

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:

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!

GovWin Recon - January 29, 2015

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:

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!

Defense Cloud Security Guidance Aims to Empower Military Services

Mid January 2015, Defense Department’s (DOD) Defense Information Services Agency (DISA) released guidance for use of commercial and non-DOD cloud providers within the DOD.

Since the DISA publication is a Security Requirements Guide (SRG), it offers non-product specific requirements to mitigate risks associated with commonly encountered IT system vulnerabilities. While SRGs provide high level direction, Security Technical Implementation Guides (STIGs) offer product-specific details for validating, attaining, and maintaining compliance with the SRG requirements.

The previously published Cloud Security Model outlined 6 Information Impact Levels. Although the DOD cloud computing SRG has reduced the number to 4 impact levels, the numeric designators remain consistent with the previously published model. DOD provisional risk assessments for cloud services focus on evaluating the requirements for the impact levels at which a cloud service offering is supported by a provider.  Provisional authorization is then leveraged by the mission owner in granting authority to operate (ATO) for mission systems operating in the cloud.

The security control baseline for all levels aligns with the FedRAMP moderate baseline’s definition for confidentiality and integrity. This shift from high confidentiality and high integrity intends to support the categorization of customer systems targeted to be deployed to commercial CSP facilities. The 15 December 2014 CIO memo called out FedRAMP as the minimum security baseline for all DOD cloud services and advised that defense components “may host unclassified DOD information that has been publicly released on FedRAMP approved cloud services.”

The DISA cloud computing SRG covers systems up to the Secret level of classification. Services running at a classification levels above secret, including compartmented information, are governed by other policies and fall outside the scope of the guidance DISA released. General Service Administration’s (GSA) Federal Risk and Authorization Management Program (FedRAMP) aims to have a cloud security baseline established for FISMA high requirements within the next six months. DISA plans to consider incorporating the FedRAMP High Baseline into its guidance once it becomes available.

Ultimately, CSPs have three paths to choose from in pursuing a DOD provisional authorization. One option is to achieve a provisional authorization through FedRAMP’s Joint Authorization Board (JAB). Another option is to achieve FedRAMP Agency ATO by completing the FedRAMP compliance process as well as meeting any additional security control requirements from the authorizing agency. The third option is for a system to be comply with requirements fo DOD Self-Assessed Provisional Authorization. The concept of FedRAMP Plus (FedRAMP+) applies to situations where an agency has specific security requirements beyond the FedRAMP baseline. Within the DOD SRG, these additional security controls and requirements are necessary to meet and assure DOD’s mission requirements.

Like FedRAMP’s intention to allow agencies to take a greater role in steering commercial cloud authorizations, DISA’s guidance will empower the military services to procure their own solutions and leverage the government’s work through FedRAMP. Considering the trend toward shared service adoption, after a cloud solution is adopted by one service branch, other defense components may look to implement FedRAMP+ solutions or DISA may evaluate that solution for potential formal shared service use.

 

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

GovWin Recon - January 28, 2015

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:

Big Data / Analytics:

Mobility:

Waste, Fraud and Abuse:

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!

The 2015 NDAA Mandates Open Architecture for Defense IT Systems

Provisions in the annual National Defense Authorization Act legislation affect the Defense sector of the federal information technology market over many years.  Consider, for example, the mandate in the FY 2012 NDAA calling for the Department of Defense to utilize cloud services provided by commercial partners.  The DoD has been working ever since to find a viable way of implementing this mandate.  The far-reaching impact of NDAA provisions thus make it imperative that federal contractors understand how the legislation will affect their business at the DoD in the future.
 
The FY 2015 NDAA promises to have a significant impact as it features an important provision calling for the DoD to adopt open architecture for all of its IT systems. Specifically, Section 801 calls for the Under Secretary of Defense for Acquisition, Technology, and Logistics to create a plan that “develops standards and defines architectures necessary to enable open systems approaches in the key mission areas.”  The discussion about using modular approaches to acquisitions has been evolving at the DoD for several years, resulting in a shift in the length and complexity of contracted efforts.  Rather than procuring a single end-to-end solution, Defense customers tend increasingly to initiate program procurements in increments.  These increments have shorter time spans and defined objectives that set parameters for the acquisition of the next increment. In Section 801, Congress gives this “modular” approach the weight of law, meaning vendors should expect to see even more short-duration, lower dollar value, limited objective procurements.
 
Equally important is the call for DoD to develop a strategy for using open architecture.  The department is currently in the process of creating a unified transport network based on internet protocol.  This may work well for newer systems, but thousands of legacy systems across the DoD remain locked in proprietary configurations.  A clause in Section 801 mandates that the USD AT&L submit a report which “outlines a process for the potential conversion [of legacy systems] to an open systems approach.” Engineering those systems to operate on an open architecture will unlock data, make the systems interoperable, and enable Defense customers to transition more easily from one IT support vendor to another.
 
If this sounds like the next, deeper level of the Joint Information Environment, you are right on target.  IT vendors should take heed and get ahead of the curve because in all probability open architecture is going to be a requirement for every unclassified (classified too?) solution that the DoD procures in the future.  If your solution isn’t open, it won’t be purchased.  End of story.
 
The open architecture requirement will also compel Defense customers to take a hard look at commercial cloud as an alternative.  Why spend money engineering an antiquated legacy system to operate on an open architecture when you can hire a vendor to host the data and implement a comparable, new interoperable system? 
 
In short, the 2015 NDAA should stimulate business opportunity at the DoD as funding locked in Operations and Maintenance funding for legacy systems moves into new efforts to re-engineer and/or cloud-enable those systems for use in an open architecture.

 

State of the Union – Potential Opportunities and Impacts for Federal Contractors

In Tuesday night’s State of the Union address, President Obama highlighted issues and initiatives he hopes to tackle in his last two years in office such as improving “middle-class economics,” building U.S. infrastructure, and increasing cybersecurity.  

Reading between the lines we can attempt to predict the impact some of these initiatives may have on the federal contracting community.

The potential upside for federal contractors:  

  • Obama’s plan to improve infrastructure in the form of trains, bridges, ports, and internet speed and access could provide opportunities for heavy construction and IT contractors. 
  • Strengthening cybersecurity efforts may provide companies with additional opportunities to sell cybersecurity services and solutions to the federal government, as well as the commercial market.  
  • Easier, more affordable access to higher education and increased training will provide employers with a larger, better trained labor pool. 
  • The president’s Precision Medicine Initiative may provide contracting opportunities in the area of health IT, health informatics, medical research, medical technology, and medical devices. 
  • Revisions to the tax code may adversely or positively impact contractors and other companies depending on specifics of proposed tax code changes.  
  • The president’s commitment to continue to fight terrorism may provide opportunities for defense contractors. 
  • Obama’s statements about surveillance and privacy allude to continued funding for intelligence agency surveillance programs, but with emphasis on simultaneously safeguarding citizen privacy.  

The potential downside for federal contractors:  

  • Obama’s call for higher wages in the form of equal pay for women and increasing the minimum wage, may negatively impact companies’ profitability.  
  • The appeal for guaranteed paid sick leave for all employees may place a financial burden on small businesses.  
  • Potential new cybersecurity legislation could impose additional security requirements for federal vendors and service providers.  
  • Revisions to the tax code may adversely or positively impact contractors and other companies depending on specifics of proposed tax code changes. 

The President’s FY 2016 Budget Request, due for release in less than two weeks, will bring to light many of the proposals and initiatives mentioned in the State of the Union address, and is rumored to contain a substantial increase over current year budget levels.

For detailed budget information and federal contractor impacts, watch for Deltek’s future analysis of the President’s FY 2016 Budget Request in the coming weeks.

 

GovWin Recon - January 27, 2015

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:

Big Data / Analytics:

Mobility:

Transparency and Performance:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

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!

DHS Would Get a $400 Million Boost for the Rest of FY 2015 Under House Bill

While most federal departments received their final fiscal year (FY) 2015 appropriations in mid-December, the Department of Homeland Security (DHS) was put in a funding holding pattern by the last Congress. Now, the new 114th Congress is in session and the U.S. House of Representatives has moved forward on a funding bill for the department.

In December, Congress passed an FY 2015 omnibus that funded all federal departments through the rest of the fiscal year, ending on September 30, except for DHS, which was funded with a continuing resolution (CR) until February 27, 2015. 

Now, with the DHS CR set to expire in a few weeks, the House has approved a FY 2015 Homeland Security Appropriations bill which would fund DHS through September, provided the Senate can move forward on a comparable version and the two chambers can reconcile a final bill to send to the president by the deadline.

The House bill, H.R. 240, provides a total of $39.7 billion in discretionary funding, which is an increase of $400 million (+1%) over the FY 2014 enacted level of $39.3 billion, which itself was a billion dollars more than White House requested in the FY 2015 budget. If enacted, the $37.7 billion would constitute more than a 3.5% increase over what the president requested for this fiscal year.

The bill and the accompanying Explanatory Statement provide details into agency funding and some specific IT investments areas.

  • Office of the Chief Information Officer (OCIO) – $288.1 million, of which $189.1 million is multi-year money available through FY 2016. The $288.1 million is $31 million over the FY 2014 enacted level. An additional $1 million is provided for the DHS Data Framework initiative and an additional $500 thousand is provided for cyber remediation tools.
  • Cybersecurity – The bill includes a total of $753.2 million for cybersecurity operations in the National Programs and Protection Directorate (NPPD). An additional $164.5 million is provided for NPPD Communications and $271 million for infrastructure protection programs, for an aggregate total of $1.19 billion. Cybersecurity workforce funding of $25.9 million is provided for Global Cybersecurity Management, of which at least $15.8 million is for cybersecurity education.
  • Science and Technology – $1.1 billion, $116.3 million below the FY 2014 enacted level, but $32.1 million above the president’s request. This includes $973.9 million for Research, Development, Acquisition, and Operations.
  • Customs and Border Protection (CBP) – $10.7 billion, an increase of $118.7 million above the FY 2014 enacted level. Of this, a total of $808.2 million is provided for Automation Modernization efforts for TECS, Automated Commercial Environment (ACE), International Trade Data System (ITDS) and others. The bill slates $382.5 million for Border Security Fencing, Infrastructure, and Technology (BSFIT).
  • Immigration and Customs Enforcement (ICE) – $5.96 billion, an increase of $689.4 million over the FY 2014 enacted level. IT funding includes $3.5 million to support enhancements to the PATRIOT system for visa vetting
  • Transportation Security Administration (TSA) – $4.8 billion, a decrease of $94.3 million below the FY 2014 enacted level. Technology provisions include $334 million for Explosives Detection Systems (EDS) Procurement and Installation, of which $83.9 million is discretionary funds. The bill also includes $449 million for Transportation Security Support IT and $295 million for Screening Technology Maintenance.
  • Coast Guard – $10 billion, $159 million below the FY 2014 level but $439.5 million above the president’s request, including $2.5 million to restore cuts to USCG information technology programs.
  • Citizenship and Immigration Services (CIS) – $124.4 million in discretionary appropriations is provided for the E- Verify program.
  • Federal Emergency Management Agency (FEMA) – $934.4 million for Salaries and Expenses, down $12.6 million from the FY 2014 enacted level. The bill allows for $7 billion for disaster relief and $2.5 billion in first responder grants, including $1.5 billion for state and local grants; $680 million for Assistance to Firefighter Grants, and $350 million for Emergency Management Performance Grants.
  • Secret Service – $1.7 billion, an increase of $80.5 million above the fiscal year 2014 enacted level. This includes $21.5 million to begin preparation and training for presidential candidate nominee protection for the 2016 presidential election, including for protective vehicles and communications technology. It also includes $45,6 million for investments in Information Integration and Technology Transformation programs.

As anticipated, the House bill restricts the use of funds for controversial White House immigration measures. The House Appropriations Committee Report that accompanies the bill includes an amendment stipulating that no funds, resources, or fees provided to DHS may be used to implement the immigration policy changes that the president initiated last fall.

The ball is now in the hands of the Senate Appropriations Committee (SAC), which has just solidified and announced committee chairs after the leadership change resulting from last November’s election. The Homeland Security subcommittee will need to quickly move their bill forward from the last committee action last summer if they hope to make the February 17 deadline, so the clock is ticking.

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Originally published for Federal Industry Analysis: Analysts Perspectives Blog. Stay ahead of the competition by discovering more about 
GovWin FIA. Follow me on Twitter @GovWinSlye.

 

GovWin Recon - January 26, 2015

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:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

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 - January 23, 2015

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:

Cloud Computing / Data Center Consolidation / Virtualization:

Health IT:

Big Data / Analytics:

Mobility:

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!

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