Army Spending on Other Transaction Agreements for Cybersecurity, FY 2020-2022

The Department of Defense (DoD) and its military services have used Other Transaction Authority (OTA) contracts to acquire and develop various information technology (IT) capabilities, including those aimed at meeting cybersecurity requirements. Over the last few weeks, I have looked at both the Air Force’s use of OTA for cybersecurity-related efforts as well as the Navy’s use of OTA for cybersecurity. This week, I will continue the series by looking at the Department of the Army.

Army Cybersecurity-Related OTA Spending, FY 2020-2022

The latest OTA spending data covering the most recent three completed fiscal years (FY) – FY 2020 through FY 2022 – reveals a very wide degree of OTA usage among the DoD components. Compared to the other services and defense-wide agencies, the Army is the dominant user of OTA for cyber-related efforts, spending an aggregate $862M from FY 2020 through FY 2022. (See chart below.)

Looking at Army’s OTA use each year over the 3-year period shows a fair degree of consistency from year to year, with both growth and moderation depending on program lifecycles and needs. After $53M growth from FY 2020 to FY 2021, Army spending on OTAs for cybersecurity efforts declined by $8.6M (-3%) from FY 2021 to FY 2022, to come in at $299M. (See chart below.)

Cybersecurity-Related OTA Spending by Army Organization, FY 2020-2022

The FY 2020-2022 spending data shows that cyber-related work using OTA at the Army is largely concentrated among four Army organizations that have as part of their mission to develop new capabilities and technologies to support soldiers in various capacities. That said, among all the DoD components, the Army has a wide spectrum of commands that use OTA for at least some of their cyber capability development, demonstrating the attraction and accessibility of using OTA contacts.

Ninety-five percent of recent Army spending on OTA for cyber is done by four organizations – Combat Capabilities Development Command (DEVCOM, 42%), Program Executive Office (PEO) Enterprise Information Systems (PEO EIS, 27%), PEO Simulation, Training and Instrumentation (PEO STRI, 17%) and PEO Soldier (9%).

The remaining 5% of OTA contracts for cyber-related efforts from FY 2020-2022 were spread among various other Army organizations: PEO Command, Control and Communications Tactical (PEO C3T); G-1/4 Personnel and Logistics (at Army Training and Doctrine Command (TRADOC)); Joint Munitions Command (JMC); Network Enterprise Technology Command (NETCOM); PEO Aviation; PEO Intelligence, Electronic Warfare and Sensors (PEO IEW&S); and Tank-Automotive and Armaments Command (TACOM). Half of that remaining 5% in Army OTA contracts from FY 2020-2022 – $22M – provided no additional buying organization on the contract beyond the Army. (See chart below.)

Army Cybersecurity-Related Efforts Using OTA, FY 2020-2022

Listed below are the Army efforts using OTA that had cyber-elements for the past three fiscal years and had spending reported for FY 2022, indicating the most recent activity. The amounts below are aggregate OTA spending from FY 2020 through FY 2022, with FY 2022-specific spending also noted. Where an Army organization is provided in the data, this is also provided below.

• Cyber Protection Brigade (CPB) Lightweight, Compact, and Easily Deployable Kit with Dedicated, Expeditionary, Locally Placed Storage and Computer Resources (PEO EIS, PEO C3T, G-1/4 P&L and JMT), $233M total, $120M (51%) in FY 2022
• Assault Breacher Vehicle Remote Control System (DEVCOM), $367M total, $102M (28%) in FY 2022
• SIF Infrastructure, PM, Cybersecurity (PEO Soldier), $80M total, $20M (25%) in FY 2022
• Persistent Cyber Training Environment Cyber Innovation Challenge Number 4 (PEO STRI), $44M total, $39M (90%) in FY 2022
• Insider Threat Mitigation and Assessment (Buyer not reported), $7.7M total, $1.1M (15%) in FY 2022
• Persistent Cyber Training Environment Cyber Innovation Challenge #1 Follow-On (PEO STRI), $96M total, $7.5M (8%) in FY 2022
• Prototype Project(s) in Support of U.S. Army Cyber Command (ARCYBER) (PEO EIS), $16M total, $7.2M (44%) in FY 2022
• Enhanced Protection of Information Capabilities (PEO Aviation), $1.8M total, 100% in FY 2022
• End Point Accuracy (DEVCOM), $486K, 100% in FY 2022
• Base Production OTA for Mayhem [SW] with ForAllSecure (DEVCOM and PEO IEW&S), $788M total, $374K (47%) in FY 2022

Final Thoughts

While the Army’s use of OTA contracts for cybersecurity-related efforts receded slightly from FY 2021 to FY 2022, the spending level remained strong and well above the FY 2020 level. Further, the strong use of OTA contracts for these needs indicates the Army’s appetite for innovation as well as the urgency they place on bringing cybersecurity capabilities to bear on wide-ranging mission requirements.

The Army’s OTA contracts for the Persistent Cyber Training Environment and for Mayhem software are elements that they have in common with the Air Force, Navy and other DoD components, indicating shared priorities and common requirements that align with a joint warfighting environment.

Given the Army’s consistent dominance in OTA spending among DoD components for cybersecurity-impacting capabilities, it seems very reasonable to expect that we will see sustained OTA contract use at the Army for the foreseeable future.