DOD reorgs to fuel cyber, AI and space opportunities

At the immixGroup's annual Government IT Sales Summit, analysts describe how several DOD reorganization efforts will fuel new opportunities in cyber, space and artificial intelligence.

Defense spending will be near its peak in fiscal year 2019 thanks in large part to a budget that was passed on time, and with Congress and President Trump in sync on most national security priorities.

But the market outlook isn’t being driven just by more dollars but also by some fundamental changes going across the Defense Department, analysts said Thursday at the immixGroup annual Government IT Sales Summit.

Stephanie Meloni, manager in the immixGroup market intelligence group; and senior analyst Mark Wisinger described how organizational changes at DOD will fuel opportunities for IT vendors and contractors.

Among DOD's major changes is the creation of the Joint Artificial Intelligence Center and the Army Futures Command, the resurrection of the Space Command and the continued development of Cyber Command.

These structural changes don’t affect technology priorities, Meloni said, which remained focused on modernization and leveraging emerging technologies such as artificial intelligence, machine learning and cybersecurity.

But those new organizations represent opportunities because they’ll first need IT support to get up and running and then they’ll also be avenues for more spending on projects and contracts.

Space Command, for instance, will largely be formed out of the Air Force’s own space command organization, Meloni and Wisinger said.

Space Command could eventually control $13 billion in annual spending, they said.

The Joint Artificial Intelligence Center is just in its “embryonic stage,” they said, and while currently it is based in the Pentagon, the expectation is that eventually there will be regional hubs.

One of the major priorities with many of these shifts is a focus on data -- collecting it, analyzing it and using it for better decisions.

For example: in the areas of intelligence, surveillance and reconnaissance, there is a need for fusing data and removing stovepipes.

That is one of the drivers behind JEDI, the Defense Department’s $10 billion commercial cloud initiative. DOD wants to create what they have called a “data lake" that will enable better analysis and use of the data DOD has.

Cyber Command is spending about $40 million this year and is expected to reach $75 million next year and within a few years could see annual spending of $250 million, Meloni and Wisinger said.

No analysis of the defense market would be complete without looking at some upcoming contracts, and the biggest on the horizon is the Navy's Next Generation Enterprise Network.

Perspecta is the incumbent and just won an extension that pushes the current contract out to May 2020.

NGEN will different than the current contract. It has been split into two contracts, one for hardware and a much larger one for services and systems integration. Spending could be up to $1.5 billion a year with requirements around enterprise architecture, data center consolidation, storage, network security and C4ISR.

Another contract undergoing a major revision is the Air Force NetCents 2 Products contract which will expire in 2019. Rather than compete it as a traditional contract, the Air Force is using a blanket purchase agreement through the GSA schedule.

The result is that the BPA could have more primes and be open to more agencies beyond the Air Force. The Air Force also will make it a mandatory contract for Air Force hardware buys, the analysts said.

The emphasis from Meloni and Wisinger is that the market is shifting as DOD restructures key organizations. Vendors and IT contractors need to embrace those changes by bringing in emerging technologies and solutions that address customer pain points.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.