Budget Analysis: Navy Cyber-Related Program Budgets in FY 2022

Fiscal Year 2022 is now underway, and although the federal government is operating under a Continuing Resolution and final agency budgets will not be finalized for months, members of the federal contracting community are interested in what federal agencies plan to spend on high-priority technology initiatives, such as cybersecurity.

Each year, GovWin’s Federal Market Analysis (FMA) team analyzes the Department of Defense (DOD) Procurement and Research, Development, Test, and Evaluation (RDT&E) budget requests to identify major technology areas where the defense components intend to invest. We conduct this analysis by using keywords that help us identify cloud computing, big data analytics, cybersecurity/cyberwarfare, and other technologies.

This analysis reveals that the Department of the Navy requested a total of nearly $1.2B for programs that either directly address DOD cyber mission capabilities – both defensive and offensive – or support their underlying mission support and enterprise capacities. This number is up from roughly $820M enacted in FY 2021 and $730M spent in FY 2020. (See chart below.)

Largest Navy Cyber-Related Programs

The five largest programs that FMA could identify with cyber-related budget elements account for nearly $685M in the Navy’s FY 2022 Procurement and RDT&E budget requests. Given the nature of the efforts, the Navy will look to commercial products and contracted industry support services for much of the work involved in these programs. (See chart below.)

Information Systems Security Program (ISSP): This program ensures the protection of Navy and Navy hosted joint telecommunication and IT systems from cyber exploitation and attack. The ISSP supports investments in Public Key Infrastructure (PKI), Navy Cyber Situational Awareness (NCSA), Computer Network Defense (CND): Navy Cryptography (Crypto), Key Management (KM), and the global SHARKCAGE program, as well as Cybersecurity Coordination activities. FY 2022 funding consists of $147M for Communications and Electronics Equipment (Other Procurement) and $33M for Operational Systems Development (RDT&E).

NGEN Software Pilot: The Navy Next Generation Enterprise Network (NGEN) Software Pilot program has cyber elements peppered throughout. The Enterprise Software Management element ($244M) pays for enterprise software licenses (ESLs). While not all of this is cyber-focused, it does include an increase of $124M, in part for updated Microsoft Licenses to add new security baselines. The NGEN Cloud Services portion ($64M) funds the Microsoft 365 (M365) cloud-based suite of productivity tools for mobile and teleworking users and to enhance the Navy's cybersecurity posture by maturing its Zero Trust adoption. The NGEN Cybersecurity effort ($52M) focuses on comprehensive cybersecurity tools for advanced endpoint asset management, enhanced network access control, malware detection, and threat response.

Defense Research Sciences: This activity includes basic research efforts to increase scientific, mathematical, and computational foundations for integrated C4ISR and targeting. Efforts include computation and information foundations for cyber defense; secure and reliable information infrastructure for command and control; information assurance; and research to extend artificial intelligence for the Naval domain.

Future Naval Capabilities Applied Research: This program includes efforts to mature innovative cyber approaches to enhance the resilience, safety, reliability and efficiency of cyber systems in warfighting platforms; developing tools for convergence of cyber and electronic warfare effects; developing frameworks with intelligent resource management for system resilience; and analyzing fifth generation (5G) security and protocols to identify vulnerabilities and close security gaps.

Common Picture Applied Research: This program focuses on the development of algorithms and software technologies that enable decision making and mission execution to achieve battlespace superiority. Areas include Quantum Information Sciences, Computational Methods for Decision Making, Nanoscale Electronics Technology, Cyber Defense, Data Analytics, Artificial Intelligence, and Electromagnetic Warfare. Cyber Defense includes efforts to mature technologies and introduce new capabilities into many cyber security areas, such as automated cryptographic design exploration, cyber decoys and disinformation, improved security of cyber-physical systems, and development of tools and techniques to model and understand adversary motivation and intent.