FY 2013 National Defense Authorization Act: Market Implications

Although the Department of Defense (DoD) budget for the second half of FY 2013 is still undetermined, the National Defense Authorization Act for Fiscal Year 2013, which sets funding levels and policies for DoD, contains several provisions impacting the Defense IT market. It includes 16 sections that require concrete action from the DoD to address, including measures that will shape Defense IT procurement, cyber security, network operations, and software use and licensing for years to come. Understanding these key areas is critical for both large and small firms seeking to maximize business opportunities at the DoD.

Key Findings

Despite falling IT budgets and the threat posed by sequestration, the FY 2013 NDAA contains tangible, congressionally authorized spending increases in the DoD’s Research and Development (RDT&E) and Procurement Budgets that have the potential to soften the blow of sequestration, if it comes. The FY 2013 NDAA also outlines 16 priority requirements affecting IT policy and investment the DoD is required by law to implement. These priorities include:

Acquisitions and Contracting

• Procurement of space-based infrared systems satellites
• Limits on use of cost-type contracts
• Mandates for NETCENTS 2 management
• Conducting an independent assessment of DoD contracting

Cyber Security

• Reporting on Air Force cyber and IT research investments
• Investing in next-generation host-based cyber security tools
• Elevating sub-unified USCYBERCOM to unified command
• Penetration testing of contractor networks

Network Operations

• Review of the Army’s Distributed Common Ground (DCGS-A) system
• Implementation of a strategy for the Joint Information Environment (JIE)
• Inventory, upgrade, and procurement of DoD’s tactical data link systems
• Collection and analysis of DoD network flow data
• Coordination of interagency computer network operations

Software

• Improvements in the assurance of software the DoD procures
• Acquisition of large-scale database software and data analysis tools (big data)
• Inventorying of DoD software licenses

Critical Insight for Vendors

Deltek’s FY 2013 National Defense Authorization Act: Market Implications provides government contractors with analysis of the priorities outlined for Defense IT in the FY 2013 NDAA. The report assesses the impact of congressional directives on 4 areas of Defense IT (contracting, cyber security, network operations, and software), and analyzes the conference authorized budget for DoD. Changes in key program outlays are also examined and contractor implications are assessed.

Deltek’s FY 2013 National Defense Authorization Act: Market Implications report is delivered in PowerPoint® format.