Budget Analysis: Army Programs Spending on Cybersecurity and Warfare in FY 2022

Key Takeaways

• The Army intends to spend $901M on programs leveraging cybersecurity/warfare technology in fiscal 2022.
• Army’s cyber-related purchasing will include a lot of equipment and hardware.
• Army’s cyber-related investments are spread across tactical, software development, and business systems.

Every Spring, Deltek’s Federal Market Analysis (FMA) team takes a thorough look at the Department of Defense’s Procurement and Research, Development, Testing, and Evaluation (RDT&E) budget requests for the fiscal year to come. The late release of the budget this year delayed that process up to this point.

As a reminder, FMA identifies programs using keywords that invest in certain technologies of importance to the contractor community. These technologies include cloud computing, big data analytics, cybersecurity/weaponry, and others. FMA’s analysis of the U.S. Army’s fiscal 2022 Procurement and RDT&E budget requests is now complete, while the analysis of the rest of DOD’s budget is partially complete.

The Army data reveals an intent to spend $901M on programs that use or prepare for the use of cybersecurity/warfare technology in one way or another. This is down $100M from the $1B received for FY 2021.

Identifying the specific cyber spend in every program is impossible due to the nature of the reported data. Readers should keep in mind, therefore, that the numbers presented here are the requested budgets for programs that plan to use cyber technology for a specific purpose (e.g., security, testing, weaponry, etc.). The numbers presented here should not be considered the Army’s entire cyber-related budget for FY 2022. They are best thought of as a signpost indicating which Army program offices are spending on cyber and the potential amounts they could spend on it.

For a different perspective on the topline Defense cyber budget, including Operations and Maintenance funding for Army, which is not included in the totals presented here, please see this recent post.

Largest Programs

The chart below lists the Army programs with a cyber component that FMA could identify arranged from largest to smallest in dollar terms. Because the totals shown are from the Procurement and RDT&E budget requests, it means that the work involved could be new and available to contractors if a contract for it is competed.

Communications Security (COMSEC): The Communication Security program consists of two sub-programs: Cryptographic Systems (CS) and Army Key Management Infrastructure (AKMI). In FY 2022, Cryptographic Systems will receive $48M to procure and field modern In-Line Network Encryption (INE) and Secure Voice (SV) devices that allow for secure communication through radios and satellite terminals. The Army Key Management Infrastructure’s funding includes $78.3M for the procurement, fielding, depot support and new equipment training for key management infrastructure management client node, simple key loader, and automated communication engineering software enabling the Army to manage, control, plan, and distribute the electronic key for 1.5 million end cryptographic units.

Defensive Cyber Operations (DCO) - Software Prototype Development: DCO consists of the platform and software programs that are key elements of the DCO maneuver baseline infrastructure, platform, and tools. FY 2022 RDTE Plans: $5.5M to support development engineering, integration, testing, training development and program management to complete the last capability within the current IT box, CD3. CD3 will integrate the enhanced DCO tool suite that will enable broader data collection and data aggregation (including existing logs from other Programs of Record), and the ability for WiFi and 4G connection monitoring in support of Tactical DCO Infrastructure full deployment in Q4 of FY 2022.

Electronic Warfare Development: This program encompasses engineering and manufacturing development for tactical electronic warfare ground employment applications. FY 2022 base funding in the amount of $19.5M funds platform integration and system level prototyping for Terrestrial Layer System variants that will be fielded to Echelons Above Brigade (EAB). TLS EAB Integration is a new Program in FY 2022, fulfilling distinct capabilities to support division, corps and multi-domain task force commanders.

Cyberspace Operations Forces and Force Support: Renamed from the Persistent Cyber Training Environment (PCTE) program, this investment supports U.S. Cyber Command by enabling the DOD Cyber Mission Force to train at the individual, team, and force level. In FY 2022, PCTE Regional Compute and Storage (RCS) nodes will continue infrastructure enhancements through a migration to a consumption based model while continuing to leverage DOD enterprise transport services with access at all classification levels to perform training. Another FY 2022 focus is on verifying existing and new capability through continuous testing and cyber resiliency assessments.

U.S. Army Cyber Command (ARCYBER): This line provides for facility infrastructure-mission unique equipment upgrades to ancillary equipment and the IT fit-out of the new information systems facilities scheduled for construction within the Future Years Development Plan at Joint Base Lewis/McCord, Washington; Fort Hamilton, New York; and Fort Polk, Louisiana. Additionally, FY 2022 base procurement dollars in the amount of $35.2M purchases ARCYBER facility equipment such as routers, switches, servers, computers, data storage, phones, cabling, cameras, sound and video mixers, display panels, speakers, encryption devices, and other IT equipment.