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Competition for Cyber Talent Drives New Army and DHS Efforts

There is rarely a day that goes by when you won’t see a top story on cybersecurity and the scarcity of people with the right IT security skills to address the growing challenges. It is this very demand for skilled cybersecurity staff that is driving some new, creative, and some might say bold efforts by the Army and the Department of Homeland Security (DHS) to raise up, recruit, and retain talent.

The Department of Defense (DoD) may be the one federal entity where building a cyber workforce is the most prominent, as they continue to grow a cadre of uniformed cyberwarriors to staff various cyber commands and other network defense organizations, like the Joint Task Force-DoD Information Networks (JTF-DoDIN). However, building the force is only part of the challenge. Once their tour of service commitment is fulfilled these skilled cyberwarriors often have the attractive option to land high-paying jobs in the private sector, so the sustainability of a cyber-force is a major DoD priority.

Recognizing these realities is a driving force behind the establishment of the Army Reserve's Cyber Private Public Partnership, or Cyber P3, among the DoD, universities and private employers. In recent comments in a story by Nextgov, Cyber P3 program manager Lt. Col. Scott Nelson said that the program is trying to answer key questions of "how do we retain the investment the Army made in that soldier" and also "allow them to get a really good job with our industry partners?"

Maximizing the return on investment in cybersecurity personnel is not the only item on the Cyber P3 agenda. They also want to enhance the pipeline of skilled cyber personnel through building parallel cybersecurity education and training programs among military and universities. In that pursuit, several universities, companies and federal agencies are collaborating on the effort with the goal of establishing 3,500 to 5,000 Army reserve cyberwarriors that can be at the ready when the need arises. Among the 21 private companies that have already stepped up to help transition service members into civilian careers include Citibank, Microsoft, Fox Entertainment and Chevron, according to the Nextgov report. (Read more about Cyber-P3 here and here.)

The Pentagon is not the only federal agency looking to industry to bolster its long-term cybersecurity posture. The Department of Homeland Security Secretary Jeh Johnson announced at the RSA Conference in San Francisco that DHS is opening a cybersecurity branch office in Silicon Valley to “strengthen critical relationships… and ensure that the government and the private sector benefit from each other’s research and development.” Collaboration and synergy is not the only thing on Johnson’s mind, however. He’s recruiting. He intends to “convince some of the talented workforce in Silicon Valley to come to Washington,” highlighting the new United States Digital Service program that provides mechanisms for tech talent in private industry to complete a “tour of service” within government agencies. But on a more formal level, Johnson is “on the hunt” for a cybersecurity “all-star” to head up DHS' National Cybersecurity and Communications Integration Center (NCCIC), promising a direct reporting and communications line to the department Secretary, i.e. Himself.  

These efforts, and others, underscored the ongoing urgency and scope expansion of cybersecurity into nearly every area of modern life. As the “Internet of Things” (IoT) continues to march on – bringing digitization, sensor-ization and connectivity to everything from communications to home appliances and motor vehicles – securing this infrastructure from exploitation and destruction becomes even more critical. Further, the farther down the cybersecurity road we go, the more it becomes apparent that there is only so much we may be able to automate with tools – at least for now. This is especially true when it comes to decision-making and rapid response. Skilled people are critical, in high demand, and in short supply.

These efforts by the DoD, DHS, and others will take time to build the pipeline necessary to meet the demand. It will likely take years, not a cheerful prospect when one considers the growing threats we face. Meanwhile, the competition for these skills will remain fierce. 

Half-way Through FY 2015, How Much Are Agencies Spending on Contracts?

It’s April, and that means we are half way through fiscal year (FY) 2015. So I thought I would take a look at the available federal contracting data to see what can we tell so far about how much federal departments have spent on contracts at the mid-point in the year and see what might be in store for us in the second half of FY 2015.

For comparison and context I looked the federal contract obligations reported for each federal agency for FY 2014, quarter by quarter, and then the first two fiscal quarters of FY 2015, which just closed at the end of March. Then, to get what I thought would be a conservative approach to estimating what spending might look like for the remainder of FY 2015 I took 90% of each agency’s total FY 2014 contract spending and subtracted out what agencies have already reported for actual Q1 and Q2 contract spending. In other words, my assumption is that agencies would spend at least 90% of what they did last year. Finally, based on this 90% spending assumption I calculated each agency’s FY 2015 Q1 and Q2 relative percentages of total (90%) estimated obligations.

Contract Obligations Compared

Historically, the twenty top-spending departments accounted for about 98% of all federal contract obligations, so I focused my attention on these departments. In FY 2014, these accounted for $85.9B and $105.2B in total contract obligations for Q1 and Q2 respectively. For comparison, these departments reported $104.7B and $141.7B in contract obligations for Q3 and Q4 respectively for FY 2014. (See table below.)

In FY 2015, these top twenty have reported $89.3B and $34.1B for Q1 and Q2 respectively, although DoD lags in their financial reporting by up to 90 days so Q2 is understated. Still, if these top agencies spend 90% of what they did in all of FY 2014 they will have more than $270B left to obligate in the remaining two quarters of this fiscal year.


Observations

  • A handful of departments have Q1 FY 2015 obligations lower than they did in Q1 of FY 2014 (DoD, USAF, State, DoT, Ed, and Labor). Most have marginally higher obligations year-over-year, although Navy reported over $6B (+40%) more in obligations in Q1 in FY 2015 than last year.
  • More departments appear to be lagging in Q2 FY 2015 compared to Q2 of last year and some of these are fairly large relative proportions. For example, HHS shows a $1B (-24%) decrease in Q2. Similarly, VA has reported a $1.1B (-30%) decrease. Finally, State, GSA, and DOT each have reported about a 50% drop in Q2 FY 2015 obligations from Q2 FY 2014. Of course, given the DoD’s three-month reporting delay we will not know the contracting rates among those departments until this summer.
  • Taken together, the four defense branches in Q1 FY 2015 have reported $3B more in obligations than they reported in Q1 of FY 2014, although the DoD and Air Force have reported lower levels year-over-year.  

A graphical representation of the relative proportions of each department’s contract spending gives a sense of seasonality and/or changes from year to year. Due to the sheer number of departments I have split these into Defense and Civilian segments. This further highlights the yearly changes for Navy, HHS, VA, State, GSA, and DOT. (See charts below.)


 


 

This kind of macro-level analysis is useful in getting a general sense of quarterly and yearly patterns across the departments. Of course, the remaining FY 2015 obligation estimation depends on its main 90% assumption. Last year, this approach pointed to roughly $285B in combined FY 2014 Q3 and Q4 obligations among the top twenty departments. A year later, the final FY 2014 Q3 and Q4 data shows that actual obligations came in at $246.4B, so at first glance it appears that my 90% assumption was a bit optimistic. However, the difference turns out to be a matter of timing rather than magnitude. The final FY 2014 Q1 and Q2 obligations given above come in at $69B higher than what agencies reported at this time last year, reflecting revisions due to lagging obligation data being added later in the year. So the numbers effectively washed out once the dust settled. Unfortunately, there is no reliable way of predicting how consistently agencies will report their contract spending from year to year.

As most federal business development people will attest, understanding your agency’s spending patterns goes a long way to being able to successfully work with them to get contracts awarded as well as develop your yearly business plan. 

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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.

 

Room for Expansion across Agency Shared Services Adoption

A recent survey of federal agency leadership explored drivers behind the uneven adoption of shared services for acquisition, human resources, and information technology. Delving into agency business cases sheds light on which agencies are leading the way with transitioning major information technology efforts to shared service environments. 

Survey Summary

In March 2015, the Partnership for Public Service and Deloitte released findings from a survey on shared services progress. Researchers interviewed CFOs and leaders from 18 of CFO agencies to take stock of federal shared services including the attitudes and efforts underway across acquisition, human resources (HR), and information technology (IT). The respondents offered varying perspectives on government buying. Some viewed agencies as independent service providers, which may lend a competitive aspect to shared service arrangements. Others are inclined to see government as a single purchaser, which contributes to a more collaborative environment. Over half of respondents (55%) indicated that terminating or transitioning services was difficult. 28% suggested it was a moderate challenge, and 17% said it was easy. Survey respondents identified primary objectives for adopting or expanding shared service use. The top drivers included cost savings (78%), mission delivery (67%), customer service (56%), and cost avoidance (50%).

 

The survey findings stopped short of offering assessing the status of each of the agencies. However, agency budget materials provide some insight for plans related to shared services. 

Observations from IT business cases

According to the Office of Management and Budget’s exhibit of business cases for major IT investments, federal agencies identified 738 major efforts totaling $43,609.1 million in their FY2016 budget request submissions. Of these investments, 383 include current or planned shared service spending, nearly 52% of those major IT efforts. 

Across the Department of Defense’s 124 major investments, 41 include current or planned efforts for shared services. Total funding associated with these efforts totals over $7.3 billion. Due the nature of the data reported, it is unclear what portion of those resources will be directed toward shared services. Of the major investments planned Defense-wide, 58% involve shared services. Across the Army’s 31 major efforts, 23% have current or planned shared service elements.  19%of the Air Force’s 31 major investments include shared services, and 16% of the 19 major IT projects for the Navy and Marine Corps do as well.

Analysis of the major investments across civilian agencies highlights the range of adoption progress across organizations. By the level of spending associated with those investments, the top five civilian agencies for shared services are Veterans Affairs, Homeland Security, Health and Human Services, the Department of Commerce, and the Department of Agriculture. 79% of the 24 major investments at the Department of Veterans Affairs include current or planned spending on shared services. At the Department of Homeland Security, 66% of 89 major investments involved shared services. Within Health and Human Services, 60% of 94 major efforts include shared services components. 72% of the 23 major investments detailed for the Department of Commerce have shared service elements. The Department of Agriculture reported on 24 major IT efforts, 83% of which include shared services.  Total funding associated with these major investments across the top five agencies combines to roughly $12,070 million. As with the Defense Department, the portion of each fund intended for shared services is not specified.

Take Away

 

Agencies are approaching shared services as a means to increase operational and cost efficiencies. In some cases, concerns about mission delivery contribute to some reluctance to relinquish program control.  In others, the ability to standardize and ensure consistency of services is helping shared services gain traction. Additionally, agency leaders are working to resolve uncertainty about specific benefits and costs associated with the move to shared services in order to decide if it’s right for a particular organization. Given the varied landscape of mission and program requirements across the government, it’s hardly surprising that there’s a range of positions and approaches in play for how shared services are being implemented. 

 

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

New Federal Cybersecurity Organization Popping Up Everywhere

It seems that “you can’t swing a dead cat” around Washington, DC these days without hitting a new federal cybersecurity organization. In just the first two months of 2015 several new cyber- units have been announced that touch nearly every area of federal cybersecurity – from the defense to intelligence to civilian segments.

The White House & Office of the Director of National Intelligence (ODNI)

Recently, the White House announced the creation within the ODNI of the Cybersecurity Threat Intelligence Integration Center (CTIIC) (or CTIC, if you leave out the “integration,” as I have seen in some press stories) to fill a void by collecting and integrating cyber-threat intelligence and producing coordinated cyber-threat assessments for network operators and policy makers. Subsequently, Suzanne Spaulding, the Department of Homeland Security (DHS) undersecretary for the National Protection and Programs Directorate (NPPD) added that the center’s scope will go beyond cybersecurity to integrating broader intelligence information in a form that can be declassified and then sharing the information across relevant government and industry sectors. The $35 million agency was the latest news in federal cybersecurity, even to those in Congress.

The Department of Defense’s (DoD)

Back in January, the Defense Information Systems Agency (DISA) announced that it is launching a new cyber defense organization – the Joint Task Force-DoD Information Networks (JTF-DoDIN) – as part of the broader DISA reorganization. The new cyber organization is taking over all operational defensive activities from the U.S. Cyber Command (USCYBERCOM) to free it up to focus on cyber- policy and strategy in the face of fast growing threats.

The Office of Management and Budget (OMB)

In addition to working on guidance for the 2014 update to the Federal Information Security Management Act (FISMA) as well as several cybersecurity policy directives, OMB has established an E-Government Cyber unit under the existing Office of E-Government and Information Technology to lead their cyber- initiatives. The result of legislation passed late last Congress, the new unit has $15 million in new funding included in the FY 2016 budget request. E-Gov Cyber will expand OMB’s reach within the .gov cyber- realm beyond Cyberstat’s data-driven, risk-based framework and issuing cybersecurity-related guidance to include coordinating agency responses to cyber- incidents and vulnerabilities.

Central Intelligence Agency (CIA)

Although a new organization at the CIA has not been created there, yet . . . it appears that the possibility has more than crossed the minds of agency leadership. The CIA is expanding its cyber-espionage capabilities to overcome its increasingly obsolete approach to espionage due to the rapid proliferation of technologies like smartphones and social media. CIA Director John Brennan is calling for greater use of cyber capabilities in nearly every facet of agency operations, even considering the creation of a new cyber-directorate that would elevate the agency’s technology experts to be on par with CIA’s operations and analysis units.

Implications

According to the FY 2016 federal budget request release a few weeks ago, the president has proposed $14 billion in cybersecurity funding for cybersecurity initiatives and research. The proposal underscores the growing prominence that information resources and technologies play in our nation and the heightened sense that we should be doing more to protect these resources.

Yet, the fiscal climate for IT programs over the last few years has been uncertain, and with few exceptions notwithstanding, that pressure does not seem to be letting up just yet. However, given some of the high profile cybersecurity failures that have made the news in recent months it may be that the “cybersecurity card” is one of the few things that will ensure funding from Congress for needed IT investments at an agency.

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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.

 

DHS FY 2016 IT Budget Request Snapshot

A few weeks ago the White House released its fiscal year (FY) 2016 budget request, the earliest budget release in recent memory. In our typical fashion we quickly pulled out the high points of the top departments to get a sense of the overall budget picture and key priorities. In this entry I want to look a focus on bit more closely at the Department of Homeland Security (DHS) and specifically its proposed information technology (IT) budget.

The release of the federal FY 2016 budget request provided an opportunity for some broad observations and data points on the discretionary budget picture to get an immediate sense of direction and priority across the top departments, including information technology. Going a little deeper into the DHS IT budget provides a sense of the highest priorities and where the agencies are seeking to direct their dollars in the next fiscal year.

DHS IT and New Development Budgets

To begin with, a basic slice of the DHS IT budget identifies how the department is allocating its $6.2B in proposed budget across the directorates. Their overall $6.2B IT budget would be 4% above the FY 2015 level of $5.9B and $181M (3%) over the $6.0B for FY 2014.  The up-down-up movement of the yearly IT budget speaks to the recent budget environment where economizing is key and uncertainty is ever present.  

The year-to-year changes for the various agencies and directorates are fairly diverse, ranging from -27% to +14%. (See table below.) Further, looking at the portion of each agency’s allocation for new development spending, known as Development, Modernization and Enhancement (DME), also has a wide variety in change from 2015 to 2016. Note that growth or decline in agency total IT budget does not always correspond to the same direction or magnitude in DME spending, e.g. the TSA, FEMA, and CPB IT budgets.  In the case of ICE, a 13.8% overall increase comes with a 116% increase in DME.


 

Noteworthy IT Programs

Examining the details of DHS’s IT investments and initiatives gives deeper insight.  Here are just five initiatives that stand out among others due to relative size, budget growth, and/or proportion of new development spending.

  • CBP Infrastructure – This IT infrastructure program is the backbone that supports all of CBP's IT systems and is the largest single budget line item among DHS’s 347 IT investments. The FY 2016 total allocation of $485M, up a modest $5M from FY 2015 enacted level but down $10M from FY 2014. This investment is 100% O&M spending
  • NPPD National Cybersecurity & Protection System (NCPS) – The National Cyber Security Division, through its National Cybersecurity Protection System (NCPS), protects the Federal civilian departments and agencies IT infrastructure from cyber threats. At $464M for FY 2016, not only is NCPS DHS’s second largest single IT budget line, it also receives the largest year-to-year budget increase of more than $88M (+23%) from FY 2015. Further, 20% of this investment is slated for DME.
  • CBP Non-Intrusive Inspection (NII) Systems Program – NII technologies support the detection and prevention of contraband, including drugs, currency, and other illegal merchandise, from entering the United States, while having a minimal impact on the flow of legitimate commerce. NII receives the largest DME increase for FY 2016 of $73M, compared to $15M for FY 2015. This DME boost, plus $12M in additional O&M, helps push NII from $124M in FY 2015 to $209M (+69%) for FY 2016, making it DHS’s fourth largest IT investment.
  • USCIS Transformation – USCIS has embarked on a multi-year enterprise-wide Transformation Investment that is transitioning the agency from a fragmented, paper-based environment to a paperless, centralized environment, utilizing electronic processing for adjudication. At $181M for FY 2016, this investment is another of DHS’s “top ten” largest IT investments and receives a 2% budget increase of about $4M from FY 2015. Also, it is among the highest percentage DME among the top ten programs at 83%.
  • NPPD OBIM 1.0 – New for FY 2016, The Office of Biometric Identity Management’s (OBIM), formerly US-VISIT, investment is for the design, development and implementation of a replacement biometric system to ensure OBIM biometric receive-match-store-analyze-share capabilities can continue to be provided to DHS. It receives $68M in initial funding with 99% of this going toward DME activities.

After seeing the total IT budget flatten from $6.0B to $5.9B (-1%) from FY 2014 to FY 2015, the DHS IT budget for FY 2016 has rebounded nearly $250M to just over $6.2B. Further, overall DME spending for FY 2016 is up 8% from the previous year, suggesting high-priority development programs may present new business opportunities in key investment areas. 

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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.

FY 2016 Budget Request – Information Technology Highlights

Information Technology (IT) budgets are UP for fiscal year (FY) 2016 nearly across the board for major federal departments. The Obama Administration released its FY 2016 Budget request Monday morning, and around 6 p.m. the Office of Management and Budget (OMB) posted details on the Information Technology budget proposal, revealing a return to year-over-year budget increases for both the Defense and Civilian top-line numbers and net increases for most Executive Branch departments and agencies.

In a previous entry we looked at the overall FY 2016 discretionary budget highlights across the top agencies. Here, we will focus on IT.

According to the IT budget request for FY 2016, the overall IT budget for Executive Branch departments and agencies comes in at $86.3B, up 2.3% from the FY 2015 enacted level and 5.5% higher than the $81.7B spent in FY 2014. However, factoring out grants to state and local governments, the total IT budget for FY 2016 comes in at just over $79B, an increase of 4% from FY 2015, which was effectively flat from FY 2014. (See table below.)


 

AGENCY HIGHLIGHTS

In addition to the many budget increases for the next fiscal year, many agencies are also allocating greater funds to Development, Modernization, Enhancement (DME) efforts over Operations and Maintenance (O&M). These and other funding observations are included in the following agency highlights.

Department of Defense

The DoD is allocated a total of $37.3B in IT funds for FY 2016, a 3% increase over the FY 2015 enacted level of $36.3B. The total funds are split between classified and non-classified areas, $6.6B and $30.7B respectively. If enacted, this would mean a 2% increase in classified DOD IT and a 9% increase in non-classified DOD IT.

OMB released only top-line IT budget numbers for DoD and promised detailed updates in early March. This is fairly common practice each budget cycle, but shrouds DoD IT spending longer than any other department. Until then, we pursued what IT-related spending information could be gleaned from other DoD budget documentation.


Air Force

  • $1.8B in Procurement funds for Electronics and Telecom Equipment, an increase of more than $400M (30%) over FY 2015
  • $2.6B in Space Procurement funding, which budget materials note that FY 2016 marks the first year that such procurement are broken out.
  • $2.4B in Science and Technology RDT&E funds, an increase of $96M from FY 2015
  • $287M in Procurement funds for the Strategic Command And Control program, up from $140M (+105%) in FY 2015
  • $103.7M for AFNET, up 15% from the $90.5M level in FY 2015
  • $31.4M in Procurement funds for “General Information Technology,” down from $43M in FY 2015.
  • $9.6M for Integrated Strategic Planning & Analysis Network (ISPAN), an increase of $500K (6%) from the FY 2015 level

Army

  • $3.5B in Procurement funding for Communications and Electronics Equipment
  • $783M in O&M funding for upgrades to the Warfighter Information Network-Tactical (WIN-T)
  • $260M in Procurement funding for the Distributed Common Ground System-Army
  • $152.2M in Procurement funding for Automated Data Processing Equipment
  • $103M in Procurement funding for the Installation Information Infrastructure Modernization (IMOD) Program
  • $72.2M in Procurement funding for the Communications Security Program
  • $43.5M in Research, Development, Test, and Evaluation funding related to WIN-T for developing Network Operations software to meet the Army Network Convergence goals
  • $22M in Procurement funding for the Unified Command Suite

Navy

  • $17.9B in R&D funding, up nearly 12% from the FY 2015 level of $16.0B
  • $55M in R&D for Cyber (ORT/TFCA only), up from $3M in FY 2015
  • $2.4B in Navy Procurement funds for Communications and Electronics Equipment, up $158M (7%) from FY 2015
  • $279M in Procurement funds for CANES, down from $336M in FY 2015
  • $31.8M For the Distributed Common Ground System-Navy (DCGS-N), up from $23.7M in FY 2015
  • $135.7M for the Information Systems Security Program (ISSP), a 26% increase over the FY 2015 level of $108M
  • $740M in Marine Corps Procurement funds for Communications and Electronics Equipment, including $67M to support NGEN. The total is up from $570M in FY 2015

Defense-Wide

  • $12.3B in funding for the Science and Technology program for future technologies
  • $7.4B in funding for C4I systems
  • $7.1B for space-based systems
  • $800M for the MQ-9 Reaper Unmanned Aircraft System
  • $84.4M in Procurement funding for equipment for the Joint Information Environment, a 539% increase over the $13.3M invested in FY 2015
  • $57.7M in Research, Development, Test, and Evaluation funding for SOF Advanced Technology Development
  • $11.7M in Research, Development, Test, and Evaluation funding for Insider Threat detection

Agriculture

The USDA’s FY 2016 budget request for IT is $1.95B, 1.56% higher than the estimated level of $1.92B in Fiscal Year 2015.

Funding highlights include: 

  • $431M in the USDA’s Working Capital Fund, with money in this account used to finance central services in the USDA, including automated data processing systems for payroll, personnel, and related services; telecommunications services; and information technology systems
  • $66.3M in funding for information technology related to Farm Service Agency IT programs, including work related to the Modernize and Innovate the Delivery of Agricultural Systems (MIDAS) program
  • $29.5M in DME funding for the Natural Resources Conservation Service’s Conservation Delivery Streamline Initiative (CDSI)
  • $29M in DME funding for the Office of the Chief Information Officer’s Optimized Computing Environment (OCE)
  • $28M for the USDA’s cyber security requirements and programs
  • $7.6M to fund a USDA Digital Services team that will focus on transforming the department's digital services in line with the White House’s Smarter IT Delivery initiative
  • $4.25M for information technology infrastructure at the Animal Plant and Health Inspection Service
  • $3M to implement the Digital Accountability and Transparency Act, including changes in business processes, work force, and/or information technology assets
  • $1M for the Common Computing Environment, a shared information technology platform for the Farm Service Agency, the Natural Resources Conservation Service, and Rural Development

Commerce

The president’s budget request provides $2333.2M in funding for the Commerce Department’s information technology, an 8% increase over FY 2015 enacted levels. 62% of FY 2016 funds are dedicated to operations and maintenance, a 3% increase over the FY 2015 enacted levels. Funding to support development, modernization, and enhancement efforts totals over $880M for FY 2016, rising above the amount enacted in FY 2015 by 38%.

Funding highlights include:

  • The top ten investments by requested funding for FY 2016 combine to make up just over 57% of Commerce’s entire IT budget.
  • Includes $339.7M in new investments for FY 2016.
  • Funding for upgrades is set to receive $5.2M for FY 2016, level with the enacted amounts for FY 2015.
  • Mission delivery and management support efforts request an additional $84M, bringing the total for FY 2016 to $1,415.5M and marking a 9% increase over the enacted level from FY 2015.
  • Commerce aims to provide $798.3M in funding for infrastructure, office automation, and telecommunications, an increase of 8% over levels from FY 2015.
  • Increasing 27% over the enacted level for FY 2015, Commerce has identified $116.2M for efforts related to enterprise architecture, capital planning, and CIO functions.

Energy

The president’s budget request provides $1,469.1M in funding for the Energy Department’s information technology, a 1% drop from FY 2015 enacted levels. 92% of FY 2016 funds are dedicated to operations and maintenance, a 1% increase over the FY 2015 enacted levels. Funding to support development, modernization, and enhancement efforts decline below the amount enacted in FY 2015 by $25.M, marking a drop of 18%.

Funding highlights include:

  • With details for over 700 investments for FY 2016, the top ten investments by requested funding combine to make up around 11% of Energy’s IT budget.
  • Includes $72.7M in new investments for FY 2016.
  • Consolidation activities are set to receive $43.6M.
  • Funding for upgrades is set to receive $3.5M for FY 2016, level with the enacted amounts for FY 2015.
  • Energy is targeting $663.8M in funds for mission delivery and management support, marking a drop of 2% from FY 2015.
  • Maintaining the enacted funding level from FY 2015, Energy aims to provide $747.6M for infrastructure, office automation, and telecommunications.
  • Increasing 7% over the level for FY 2015, Energy is looking to provide $73.5M for efforts related to enterprise architecture, capital planning, and CIO functions.

Health and Human Services

The president’s budget request provides $11.4B in total IT funding to HHS, a 10% decrease over FY 2015 enacted levels. Grants account for $6.4B of the total IT budget.  HHS’ proposed IT budget without grants totals $4.9B which is a 2% decrease over FY 2015.

Funding highlights include (excludes grants):

  • DME accounts for $1.1B or 22% of the total IT budget, a 14% decrease from FY 2015 enacted levels
  • 545 total investments of which the top 10 represent 37% of the total IT budget at $1.8B
  • $149M slated for cloud investments, a 5.5% decrease from FY 2015
  • Notable changes in agency IT budgets include CMS $2.3B down 3%, NIH $781M down 2.4%, FDA $584 up 1%, and CDC $324M down 6.5%
  • Notable program changes include CMS IT Infrastructure – Ongoing down $95M, CMS Federally Facilitated Marketplace (FFM)down $60M, and CMS Beneficiary e-Services up $22M

Homeland Security

The budget request provides $6.2B for IT investments at DHS for FY 2016, a 4% increase over the FY 2015 enacted level of $5.9B.

Funding highlights include:

  • DME accounts for $1.0B or 16% of the total IT budget, a $76M increase from FY 2015 enacted levels
  • $150.3M in DME funds for USCIS Transformation, which makes up 83% of the total FY 2016 funding of $180.9M
  • $463.9M for the National Cybersecurity & Protection System (NCPS), including $95.8M in DME funds, 21% of the total
  • $102.7M for the Continuous Diagnostics & Mitigation (CDM) program, of which $91.4, or 89%, are DME funds
  • $88.5M in DME funds for the CBP Non-Intrusive Inspection (NII) Systems Program, which represents 42% of the overall $209.3M for the year
  • $80.3M in funds for the NPPD Next Generation Networks Priority Services (NGN-PS), 100% of which is DME

Interior

The president’s budget request provides $1,098.5M in funding for the Department of the Interior’s information technology, a drop of less than one percent from FY 2015 enacted levels. 92% of FY 2016 funds provide operations and maintenance, a 2% increase over the FY 2015 enacted levels to $1014.2M. At less than $85M for FY 2016, support for development, modernization, and enhancement efforts drops 20% below the amount enacted in FY 2015.

Funding highlights include:

  • The top five investments by requested funding for FY 2016 combine to make up over 61% of Interior’s entire IT budget.
  • New investments receive $5.6M for FY 2016.
  • Requesting $402.1M for mission delivery and management support efforts, Interior looks to slightly raise the funding for these investments bumping the total up by 1% over the FY 2015 levels.
  • Interior’s request of $657.6M for investments targeting infrastructure, office automation, and telecommunications marks a 1% decrease from FY 2015 enacted levels.
  • Dropping 13% from the level enacted for FY 2015, Interior has identified $38.3M for investments related to enterprise architecture, capital planning, and CIO functions.

NASA

The president’s budget request provides $1,390.4M in funding for NASA’s information technology, a 2% decrease from FY 2015 enacted levels. 95% of FY 2016 funds are dedicated to operations and maintenance, maintaining the FY 2015 enacted levels at $1,323.1M. Funding to support development, modernization, and enhancement efforts takes a hit for FY 2016, dropping 27% below the amount enacted in FY 2015 to $67.3M.

Funding highlights include:

  • The top five investments by requested funding for FY 2016 combine to make up nearly 59% of NASA’s entire IT budget.
  • NASA is looking to maintain its spending for mission delivery and management support, requesting $942.8M for FY2016.
  • $445.2M for Infrastructure, office automation, and telecommunications, a 2% drop from FY 2015 levels.
  • Maintaining the funding level enacted for FY 2015, FY 2016 would see $2.5M for efforts related to enterprise architecture, capital planning, and CIO functions.

Justice

The president’s budget request provides $2732.3M in funding for the Justice Department’s information technology, a 4% increase over FY 2015 enacted levels. Topping $2,250M for FY 2016, 83% of these funds are dedicated to operations and maintenance, marking a 5% increase over the FY 2015 enacted levels. At $476.1M for FY 2016, funding to support development, modernization, and enhancement efforts stay fairly level with the amount enacted in FY 2015, dropping by only 1%.

Funding highlights include:

  • The top ten investments by requested funding for FY 2016 combine to make up nearly 37% of Justice’s entire IT budget.
  • Includes $110.6M in new investments for FY 2016.
  • $478.6M is requested for system upgrades, an increase of around $5.5M over enacted levels for FY 2015.
  • Consolidation activities are set to receive $237.3M.
  • Dropping by 2% from the enacted FY 2015 levels, the request for mission delivery and management support activities totals $1,138.0M for FY 2016.
  • Justice aims to provide $1,413.8M in FY 2016 for infrastructure, office automation, and telecommunications, marking an increase of 10% from the level enacted for FY 2015.
  • Rising 23% above the FY 2015 level, Justice has identified $152.2M for efforts related to enterprise architecture, capital planning, and CIO functions.

Social Security Administration

SSA sees a 7% budget increase for FY 2016, growing to $1.7B from $1.6B in FY 2015.

Funding highlights include

  • At SSA DME accounts $705M or 42% of the total FY 2016 IT budget
  • $278.4M is allocated for Non-Major Infrastructure IT investments, of which 275.5M (99%) is DME
  • $55.0M in DME funds for the Disability Case Processing System (DCPS)      , which accounts for 92% of the total $60M budget
  • $68.5M slated for Non-Major IT Security Initiatives, 62% of which ($42.7M) is new development funds
  • $29.1M in new DME funding for the Intelligent Disability program, which makes up 84% of the $34.8M total

State

The State department receives $1.6B in IT funds for FY 2016, up 15% with an increase of $218M from FY 2015.

Funding highlights include

  • $140.4M of total agency DME funds account for 9% of the total FY 2016 IT budget and increases $3M from FY 2015
  • $28.5M for Consular Systems Modernization, of which $18.8M (66%) is DME funds
  • $13.3 in funding for the Architecture Services program, 100%        of which is DME
  • $11.0M in DME funding for Bureau IT Support, which accounts for 5% of the overall $230.3M allocated for FY 2016
  • $10.9M for DME efforts around the Global Foreign Affairs Compensation System (GFACS), or 35% of the total $30.8M in funds
  • $43.3M in total funding for the Integrated Personnel Management System (IPMS), $10.1M (23%) of which is DME
  • $31.6M in total funding for the Earnings Redesign initiative, $27.6M (88%) of which is DME

Transportation

The DOT’s FY 2016 budget request for IT is $3.3B, 6.4% higher than the estimated level of $3.1B in Fiscal Year 2015.

Funding highlights include:

  • $245M in DME funding for the FAA’s Terminal Automation Modernization and Replacement Program (TAMR-P)
  • $238M in DME funding for the FAA’s Data Communications NextGen Support (DataComm) program
  • $215M for the FAA’s Automatic Dependent Surveillance-Broadcast (ADS-B) system
  • $200M for the FAA’s Facilities & Equipment account to finance major capital investments in FAA power systems, air route traffic control centers, air traffic control towers, terminal radar approach control facilities, and navigation and landing equipment
  • $3M to implement the Digital Accountability and Transparency Act, including changes in business processes, work force, and/or information technology assets
  • $60M for NextGen operations planning activities at the FAA
  • $42.6M in funding through September 30, 2018 for information management related to Motor Carrier Safety Operations and Programs
  • $20M for FMCSA’s commercial vehicle information systems and networks deployment program and Information Technology Deployment (ITD) program
  • $9M to fund a DOT Digital Services team that will focus on transforming the department's digital services in line with the White House’s Smarter IT Delivery initiative
  • $8M for cyber security initiatives, including necessary upgrades to the DOT’s wide area network and information technology infrastructure
  • $4M for operation and maintenance of the FTA’s National Transit Database

Treasury

The president’s budget request provides $4.5B in total IT funding to Treasury, a 19% increase over FY 2015 enacted levels.    

Funding highlights include:

  • DME accounts for $933M or 21% of the total IT budget, a 4% increase from FY 2015 enacted levels
  • 280 total investments of which the top 10 represent 56% of the total IT budget at $2.5B
  • $330M slated for cloud investments, a 9.6% increase from FY 2015
  • Notable changes in agency IT budgets include IRS $3.2B up 30%, Fiscal Service $697 down 1%, and Departmental Offices $255M down 5%
  • Notable program changes include IRS Main Frames and Servers Services and Support (MSSS) up $219M, IRS Enterprise Services - PAC 9U up $204M, and IRS Applications Development Program Support (ADPS) up $60M

Veterans Affairs

The president’s budget request provides $4.4B in total IT funding to VA, a 5% increase over FY 2015 enacted levels.

Funding highlights include:

  • DME accounts for $639M or 15% of the total IT budget, a 11% decrease from FY 2015 enacted levels
  • 31 total investments of which the top 10 represent 92% of the total IT budget at $4B
  • $49M slated for cloud investments, a 32% decrease from FY 2015
  • Notable program changes include Benefits 21st Century Paperless Delivery of Veterans Benefits up $116M, Medical 21st Century Development Core down $81M, and Interagency 21st Century One Vet up $75M

We will be publishing our complete analysis of the FY 2016 budget request – including IT investments and initiatives – in the weeks to come.

Fellow GovWin Federal Industry Analysis (FIA) analysts Kyra Fussell, Deniece Peterson, Angela Petty and Alex Rossino contributed to this entry.

 

FY 2016 President’s Budget Request – GovWin FIA’s First Take

The White House released its FY 2016 Budget request today, perhaps the earliest annual budget release of the Obama Administration thus far. Several of my fellow GovWin Federal Industry Analysis (FIA) colleagues and I wasted no time in delving into this budget so that we could provide you with our first impressions of what we found noteworthy.

Similar to each presidential budget, the FY 2016 President’s Budget Request provides a blueprint for the administration’s policy and legislative agenda for the coming fiscal year and beyond. We reviewed the largest federal departments’ discretionary budgets to get a sense of direction and priorities for FY 2016, which begins October 1, 2015. Below is a summary table followed by key funding details and initiatives arranged by department.


Defense

DoD’s discretionary base budget request is up nearly 8% over FY 2015. The $534.3B in discretionary funding is $38.2B more than the FY 2015 enacted level.

Funding highlights include:

  • $126.53B for the Army (an increase of $7.B from the FY 2015 enacted level)
  • $161.0B for the Navy (an increase of $11.8B from the FY 2015 enacted level)
  • $152.9B for the Air Force (an increase of $16B from the FY 2015 enacted level)
  • $94.0B for Defense-Wide operations (an increase of $3.4B from the FY 2015 enacted level)
  • $51B in Oversees Contingency Operations (OCO) funding across all DoD (a decrease of $13.4B from the FY 2015 enacted level)
  • $209.9B for DoD operations and maintenance funding (an increase of $14.5B from the FY 2015 enacted level)
  • $107.7B for DoD procurement funding (an increase of $14.1B from the FY 2015 enacted level)
  • $69.8B in DoD RDT&E funding (an increase of $6.3B from the FY 2015 enacted level)
  • Invests $12.3B in DoD’s Science and Technology (S&T) Program, including $5.5B in Advanced Technology Development
  • Provides $7.4B for C4I systems
  • Includes $7.1B for DoD Space Investment Programs
  • Funds construction of the Joint Operations Center for U.S. Cyber Command at Fort Meade, Maryland
  • Funds ongoing investments in the DoD’s Joint Information Environment
  • Modestly increases the budget of the Defense Advanced Research Projects Agency from $2.9B to 3B
  • Allocates $32.3B for the Defense Health Program
  • Allocates $109.4M for communications upgrades at the new U.S. Strategic Air Command headquarters building

Agriculture

The president’s budget request includes $23.5B in discretionary appropriations for the Department of Agriculture, 1.25% below the enacted level of $23.8B in Fiscal Year 2015.

Funding highlights include:

  • $1B in financial assistance to rural businesses
  • $2.2B in community facility loans for rural areas
  • $6.4B for direct and guaranteed farm ownership and operating loans
  • $450M for competitive, peer-reviewed research for fundamental and applied agricultural sciences
  • $200M in funding for Watershed and Flood Preventions Operations
  • $206M to invest in the backlog of priority facility construction and renovation for the Agricultural Research Service
  • $60M to modernize the Headquarters South Building
  • $7.6M for a digital services team to improve the efficiency and effectiveness of USDA IT systems

Commerce

The president’s budget request provides $9.8B in base discretionary funding to Commerce, an 11% increase over FY 2015 enacted levels. These funds are intended to promote growth through trade, invest, and innovation as well as a data-driven economy.

Funding highlights include:

  • Provides funding to National Institute of Standards and Technology in support of advance in areas like cybersecurity and advanced manufacturing. Efforts to work with industry are called out in particular, such as implementing the Cybersecurity Framework of standards and best practices. Funding will also sustain work on initiatives like cybersecurity automation and the National Strategy for Trusted Identities in Cyberspace (NSTIC).
  • $1.5B to Census to support research, development, and implementation of the 2020 Census. The Census Bureau will also include planned increase for the Economic Census and advance initiatives to make data and resources publicly accessible.
  • Continues strong funding for National Oceanic and Atmospheric Administration, including $2B for next generation weather satellites, including $380M for the Polar Follow-On satellites. $147M in funding is also provided for the construction of an ocean survey vessel.
  • $1.1B for National Weather Service includes increases in funding for critical infrastructure.
  • Includes $3M to establish an in-house Idea Lab to pursue innovative approaches to achieve the agency’s strategic goals and objectives.
  • Requests $6M to build a digital services team for Department of Commerce dedicated to improving IT systems and services.
  • $497M for the International Trade Administration includes $20M to expand SelectUSA efforts to grow business investment in the United States.
  • Auctions 500MHz of federal spectrum, aiming to reduce the deficit by $40B over the next decade and provide greater commercial access to spectrum.

Energy

The president’s budget request provides $29.9B in base discretionary funding to Energy, a 10% increase over FY 2015 enacted levels. These funds are intended to support nuclear security, clean energy, environmental cleanup, climate change response, as well as science and innovation.

Funding highlights include:

  • $5B in funding supports transformational research and development for critical technology areas such as nuclear safety, grid modernization, solar and renewable energy, and energy efficiency.
  • $5.3B to support scientific research, especially in the physical sciences.
  • $12.6B for National Nuclear Security Administration, an 11% increase over FY 2015 enacted levels.
  • $5.8B for critical nuclear legacy cleanup responsibilities.
  • Expands efficiency initiatives introduced in FY 2015 to advance key priorities and improve project integration.

Health and Human Services

The president’s budget request provides $79.9B in base discretionary budget authority to HHS, a 0.3% decrease over FY 2015 enacted levels. 

Funding highlights include:

  • Supports the Affordable Care Act and operation of the Health Insurance Marketplace.
  • Provides $4.2B to serve 28.6 million patients at more than 9,000 health center sites in medically underserved communities. $2.7B of this amount is new mandatory funding.
  • Funds reform of health care delivery by finding better ways to deliver care, pay providers, and distribute information.
  • Promotes innovative medical research to maintain the nation’s leadership in the life sciences including research into Alzheimer’s disease.
  • Advances product development efforts to support procurement of next-generation medical countermeasures against chemical, biological, radiological, and nuclear threats with a $522M investment.
  • Accelerates progress in scientific and public health efforts to detect, prevent, and control illness and death related to antibiotic-resistant infections with funding of $993M.
  • Proposes targeted reforms to Medicare and Medicaid which are projected to save more than $400B over the next decade.
  • Provides the Indian Health Service with $5.1B, an increase of $461M over FY 2015 enacted levels, to expand health care services and construct clinics and sanitation facilities.
  • Includes $1.6B to bolster food safety activities.    
  • Promotes continued efforts to cut waste, fraud and abuse in Medicare and Medicaid including removing social security numbers from Medicare beneficiary ID cards.

Homeland Security **

DHS would receive $41.2B in base discretionary funding in the president’s budget request, a 7.9% increase over the FY 2015 $38.2B budget request level. DHS is currently operating under continuing resolution (CR) at the FY 2014 enacted budget level of $39.8B. This CR expires on 2/27 by which time Congress is expected to pass appropriations to cover the remainder of FY 2015.

Funding highlights include:

  • $3.7B for Aviation Security and Screening at the Transportation Security Administration (TSA) sustain aviation security and effectively align passenger screening resources based on risk. These risk-based security initiatives maximize security capabilities and expedite the screening process for low-risk travelers.
  • $132.3M for the Customs and Border Protection (CBP) Trusted Traveler Programs (TTP) to provide expedited travel for pre-approved, low-risk travelers through dedicated lanes and kiosks.
  • $101M for Radiological and Nuclear Detection Equipment for detecting and interdicting illicit radioactive or nuclear materials by the Domestic Nuclear Detection Office and other DHS components.
  • $85.3M for the CBP Non-Intrusive Inspection (NII) program for passive radiation scanning and X-ray/gamma-ray imaging of cargo and conveyances
  • $373.5M is provided to maintain necessary border security infrastructure and technology to improve CBP’s ability to detect and interdict illegal activity
  • $480M for network security, including the EINSTEIN3 Accelerated program to detect and prevent malicious traffic
  • $102.6M for the Continuous Diagnostics and Mitigation (CDM) program for hardware, software, and services that strengthen the operational network security
  • $1B to replace aging Coast Guard cutters, aircraft, electronic systems and shore infrastructure
  • An increase of $86.7M to enhance U.S. Secret Service capacity to protect senior leaders

Justice

The president’s budget request provides $28.7B in base discretionary funding to Justice, a 5% increase over FY 2015 enacted levels. These funds are intended to support core law enforcement needs, safe and secure prisons, and other Federal, State, Tribal and local programs.

Funding highlights include:

  • Strengthening investment in cybersecurity through over $200M in IT upgrades and tools to detect and deter cyber-attacks. Funds also support plans for a Federal Cyber Campus to co-locate critical civilian cybersecurity agencies.
  • Provides $97M to expand training and oversight for local law enforcement, increase the use of body worn cameras, and provide additional opportunities for reform through technical assistance and training.
  • $482M in funds to address the back log of immigration cases at the Executive Office of Immigration Review. These funds will support hiring judges and legal representation as well as expanding the Legal Orientation Program.
  • Efforts to combat violent extremism include $4M for research, $6M for model development, $2M for technical assistance, and $3M for projects to enhance collaboration between law enforcement, communities, and other stakeholders.
  • Credits applied to Justice’s discretionary budget authority for FY 2016 include $13.5B from the Crime Victims Fund (CVF) and $304M from the Assets Forfeiture Fund (AFF). Both of these figures are up from the FY 2015 enacted levels. The CVF is up 39% over FY 2015, while AFF is up 58% for the same period.

Transportation

The president’s budget request includes $14.3B in discretionary appropriations for the Department of Transportation, 3.5% less than the $13.8B enacted in Fiscal Year 2015.

Funding highlights include:

  • Creates a new Office of Safety Oversight to coordinate and improve safety efforts across all modes of transportation
  • Provides $956M in discretionary funding for modernization of the Next Generation Air Transportation System
  • Provides $478B in mandatory and discretionary funding over six years for a surface transportation reauthorization proposal, including:
    • $1.25B per year for the TIGER Grant program
    • $18B over six years for the President’s National Export Initiative
    • $23B for transit and passenger rail programs and $144B over six years to expand transit capital investment grants
    • $6B over six years to provide credit assistance for nationally or regionally significant transportation projects through the Transportation Infrastructure Finance and Innovation Act Program
  • Provides $29.4B in mandatory and discretionary funding over six years for a Critical Immediate Safety Investments Program to provide targeted infrastructure investments
  • Provides nearly $6B in mandatory and discretionary funding over six years for the National Highway Traffic Safety Administration
  • Invests $935M in mandatory and discretionary funding over six years for vehicle safety and innovation, including vehicle automation and vehicle-to-vehicle technologies

Treasury

The president’s budget request provides $12.8B in base discretionary budget authority to Treasury, a 4.9% increase over FY 2015 enacted levels.   

Funding highlights include:

  • Includes $2.9B for Treasury’s international assistance programs to promote economic growth, poverty reduction, action on climate change, and security through Multilateral Development Bank (MDB) investments in developing and emerging economies.
  • Funds increases in transparency and accountability in federal financial management and implements the Digital Transparency Act of 2014 (DATA Act). 
  • Proposes funding to transform Treasury’s digital services with the greatest impact to taxpayers and businesses so they are easier to use and more cost-effective to build and maintain.
  • Provides IRS with $12.3B in base discretionary resources, an increase of $1.3B from FY 2015, to restore taxpayer services to acceptable levels.  Funds are also provided to continue major IT projects, which aim to protect taxpayer information, modernize antiquated systems, continue development of a state-of-the-art online taxpayer experience. 

Veterans Affairs

The president’s budget request provides $70.2B in base discretionary budget authority to VA, a 7.8% increase over FY 2015 enacted levels. VA also received $15B in the Veteran Access, Choice, and Accountability Act of 2014.

Funding highlights include:

  • Continues the largest department-wide transformation in VA’s history through MyVA, an effort to reorient the department around the needs of veterans.
  • Improves veterans’ access to medical care by investing $60B.
  • Supports improvements in veterans’ mental health care, telehealth care, life-saving treatment for Hepatitis C, specialized care for women veterans, long-term care, and benefits for veterans’ caregivers.
  • Provides $1.4B for programs aimed at ending veteran homelessness in 2015.
  • Strengthens veterans benefit programs by proposing an increase of $85M to hire 770 new staff to improve timeliness of non-rating claims, reduce the inventory of veterans’ appeals, strengthen the fiduciary program and further enhance disability claims processing accuracy and efficiency through centralized mail and the national work queue.

FY 2016 Federal Information Technology Budget Request

As of publishing time, the Office of Management and Budget (OMB) had not yet published IT budget specifics, but topline numbers show a 2.5% increase for FY 2016. This puts the total IT request (including state and local grants and classified defense spending) at $86.4 billion compared to the FY 2015 estimate of $83.4B.

The administration’s priorities fall in line with many of the initiatives discussed in the FY 2015 request along with those launched by OMB and the Office of Federal Procurement Policy (OFPP).  Focus areas include:

  • $450 million to drive forward progress on cross-agency management priorities such as the U.S. Digital Service (USDS), PortfolioStat, Freeze the Footprint, and Open Data.
  • Providing funding to 25 agencies for the development of their own agency digital services teams.
  • Piloting new initiatives in IT acquisition that will increase digital acquisition capability within agencies, train agency personnel in digital IT acquisitions, and test innovative contracting models.
  • Increasing the use of Shared Services
  • Funding that will allow agencies to make progress in implementing the DATA Act and increase Federal spending transparency
  • Continue development of the government’s Category Management initiative to include:
    • Proposing legislation making it easier for vendors to bid on modestly-sized procurements and bringing more new companies into the Federal marketplace.
    • broadening the range of purchases that can be accomplished with minimal complexity and Government-unique requirements by requesting authority to raise the simplified acquisition threshold from $150,000 to $500,000.
    • Seeking new pilot authority to make it easier for agencies to set aside work for new small businesses and other firms with cutting edge/creative solutions that have limited experience selling to the federal government

Stay tuned to FIA as we will be publishing our complete analysis of the FY 2016 budget request in the coming weeks, where we will go into greater detail on the key initiatives, IT investments and contractor implications that will shape the federal IT marketplace for FY 2016.

Fellow GovWin Federal Industry Analysis (FIA) analysts Kyra Fussell, Deniece Peterson, Angela Petty and Alex Rossino contributed to this entry.

 

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.

 

Congress Passes FY 2015 Funding – Civilian Highlights, Part 1

The U.S. Congress passed an omnibus funding bill for the remainder of fiscal year (FY) 2015 that includes $1.1 trillion in total in discretionary federal funds, roughly half of which goes to federal civilian departments and agencies.

Federal News Radio reported that the Senate voted 56-40 late Saturday for the bill that will fund most agencies through September, the end of FY 2015. The House of Representatives had voted two days earlier on the spending measure, passing it 219-206.

The final bill removes concerns over the possibility of government shutdowns for the rest of the fiscal year and address funding for each of the agencies covered under the twelve individual appropriations bills that traditionally make their way through Congress. The only exception in full-year funding is the Department of Homeland Security, which is funded by at continuing resolution (CR) levels through Feb. 27, 2015, due to congressional concerns over White House immigration plans. Future funding will be taken up by the next Congress.


 

Department Highlights

Energy

Department of Energy funding of $27.9B supports programs across the department’s five primary mission areas: science, energy, environment, nuclear non-proliferation, and national security.

  • National Nuclear Security Administration (NNSA): Funding for NNSA sees an increase of $200M over FY 2014 levels to maintain the safety, security, and readiness of the nation’s nuclear weapons stockpile. This increase brings NNSA’s funding to $11.4B for FY 2015.
  • Funding includes $8.2B for weapons activities as well as $1.2B for naval reactors. Advanced simulation and computing efforts receive $598.0M, including $50.0M for activities related to the exascale initiative.
  • Energy Programs: Support for programs that encourage U.S. competitiveness drive an increase of $22M over FY 2014 enacted levels, bringing funding for Energy Programs at DOE to $10.2B.
  • Science Research: Funding for energy science research is maintained at FY 2014 levels, providing $5,071M to strengthen innovation and support basic energy research, development of high-performance computing systems, and exploration into next generation clean energy solutions.
  • Advanced Research Projects Agency-Energy (ARPA-E): The advanced research organization ARPA-E receives $280.0M, $45M below the level requested for FY 2015.

Commerce

Department of Commerce funding of $8.5B marks an increase of $286M above the level enacted for FY 2014.

  • Patent and Trademark Office (PTO): $3,458M for the U.S. Patents and Trademark Office, the full estimated amount of offsetting fee collection for FY 2015. The Patents and Trademark Office had nearly $651M in unobligated balances at the end of FY 2014.
  • National Institute of Standards and Technology (NIST): $675.5M for the scientific and technical core programs at the National Institute of Standards and Technology (NIST).
    • This amount includes $15M for the National Cybersecurity Center of Excellence and up to $60.7M for cybersecurity research and development.
    • National Initiative for Cybersecurity Education receives $4M. These funds also provide $16.5M for the National Strategy for Trusted Identities in Cyberspace (NSTIC), which includes up to $6M for the lab-to-market program and up to $2M for urban dome programs.
  • National Oceanic and Atmospheric Administration (NOAA): $5,441M for the National Oceanic and Atmospheric Administration (NOAA). This amount includes $3,333.4M for coastal, fisheries, marine, weather, satellite, and other programs.
  • Census Bureau: $1,088M for the Bureau of the Census, which includes $840M for periodic censuses and programs.
  • International Trade Administration: $472M in total program resources for the International Trade Administration. $10M of those funds are expected to be offset by fee collection, resulting in a direct appropriation of $462M.  Of those funds, up to $9M ins for the Interagency Trade and Enforcement Center, up to $10M is for SelectUSA, and Global Markets are funded at levels at least equal to FY 2014.

Go to Part 2 of Civilian Highlights, or check out our Defense Highlights of the FY 2015 Omnibus here.

Fellow GovWin Federal Industry Analysis (FIA) analysts Kyra Fussell, Angela Petty, and Alex Rossino contributed to this entry.

Congress Passes FY 2015 Funding – Civilian Highlights, Part 2

The U.S. Congress passed an omnibus funding bill for the remainder of fiscal year (FY) 2015 that includes $1.1 trillion in total in discretionary federal funds, roughly half of which goes to federal civilian departments and agencies. In part 2 we’ll look at HHS, DHS, Justice and State.

Read our Civilian Highlights, Part 1.

Health and Human Services    

HHS funding is part of the broader Labor, Health and Human Services, and Education Appropriation which totals $156.8B in discretionary funding which is the same as FY 2014 enacted levels, $926M below the president’s budget request.  Deltek estimate the HHS portion of these appropriations to be $80B.  HHS highlights of the omnibus bill include the following:

  • $2.7B in emergency funding to address the Ebola crisis.
  • $3.6B for CMS management and operations, which is equal to the level put in place by sequestration and the same as the FY 2014 enacted levels.
  • $6.9B for CDC for disease prevention and bio-defense research activities, $43M above FY 2014 program level.
  • $30B for NIH, $150M above the FY 2014 level.
  • $20M to combat prescription drug abuse around the country.
  • The bill contains several provisions to protect life, continues all longstanding restrictions on abortion funding that have been included in appropriations legislation in prior years, and promotes abstinence education.
  • $17.8B in discretionary resources for the Administration of Children and Families, which is a $108M increase.
  • The bill provides no new funding for the Affordable Care Act.

Homeland Security

The Department of Homeland Security is the only department in the Omnibus that is not receiving funding through the remainder of FY 2015, i.e. September 30, 2015.  The Omnibus funds DHS with a continuing resolution at the FY 2014 annual level of $39.3B through February 27, 2015 as media reports indicate that the Republican majority will seek to influence the implementation of the president’s recent immigration policy actions.

Justice

Department of Justice funding of $26.7B marks a reduction of $600M below FY 2014 enacted levels.

  • $25.8M for Justice Information Sharing Technology
  • Federal Bureau of Investigation (FBI): $8.4B for the FBI increases resources by $93M over FY 2014 levels to support activities around counter-terrorism, cybersecurity, and human trafficking.
  • Drug Enforcement Administration (DEA):  $2.4B marks an increase of $21M over the 2014 enacted level.
  • Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): An increase of $22M above 2014 enacted levels brings ATF funds to $1.2B for 2015.
  • National Instant Criminal Background Check System (NICS) Initiative grants: $73.0M in grants are provided to improve NICS records. These grants are expected to assist states in identifying and executing approaches to add more records to the system, particularly mental health records.
  • Prescription Drug Monitoring Programs (PDMPs): New state laws promoting the increase of PDMP best practices around prescribing controlled substances maintain support for technical assistance for PDMPs, PDMP data users, and other key stakeholders.
  • Additionally, DOJ is expected to identify and report on specific metrics related to cybercrime and cybersecurity efforts that may be measured.

State and International Programs

The Department of State and USAID appropriation of $49B includes $15.7B in base and contingency funding for operational costs of the State Department and related agencies, of which $5.4B is targeted for embassy security.

  • $1.4B for USAID base and contingency funding
  • $2.5B in Ebola emergency funding
  • $8.4B in base and contingency funding for international security assistance


Go to Part 3 of Civilian Highlights, or check out our Defense Highlights of the FY 2015 Omnibus here.

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