Navy budget puts emphasis on infosec, enterprise systems and tools

Earlier this year, we wrote a commentary on overall DoD IT budgeting for FY25. In this commentary, we’ll take a deeper dive into the U.S. Navy.

Understanding the $6 billion-plus budget for IT spending in the Navy is important for vendors, because the programs supported in this budget create an effective positioning framework for products and services sold into this branch the DoD.

Overall this year, the budget for the Navy is expected to experience a modest increase of $1.3 billion on top of the $202.5 billion awarded to the service in fiscal 24. Much of this increase is dedicated to improving maintenance of existing ships and improving the health of the industrial supply chain necessary to support ship maintenance and procurement.

As a subset of that overall budget, Navy IT budgeting accounts for more than $6 billion. Nearly $5.2 billion has been requested in steady state IT budgeting, with $875.5 million going toward development, modernization and enhancement.

Funds for Navy IT are divided among information security initiatives, enterprise information system expansions and automated tool adoption.

Let’s look at some key areas of investment. (Note: This budget overview does not include National Security Systems because those numbers are classified. All budget amounts contained in this article are taken from the President’s Budget Request for FY2025.)

Information systems security

Navy Crypto Afloat and Ashore – $86 million. This program is intended to modernize legacy cryptographic equipment, and it includes families of communications security (COMSEC) and transmission security (TRANSEC) devices, divided into crypto voice, crypto data, crypto products and associated ancillary devices. These devices provide modern cryptographic solutions to replace obsolete, legacy devices within the crypto categories to meet mandated National Security Agency (NSA) cease key dates for modernized encryption.

SHARKCAGE Afloat and Ashore – $30 million. This is the Navy's defensive cyberspace operations (DCO) analysis enclave and means to achieve cyberspace detection-in-depth for maritime forces afloat and ashore. SHARKCAGE is the mechanism by which units, groups and fleets will gain an attack sensing and warning (AS&W) capability.

Computer Network Defense (CND) Afloat and Ashore – $27.7 million. CND ashore provides capabilities to secure the cyber domain. The CND afloat operating system environment (OSE) includes host-based protection tools, system vulnerability tools, cyber remediation tools, supporting hardware and software for Department of Defense (DoD) mandated tools, enhanced data correlation tools, switches, ancillary devices and other related security tools.

Key Management Afloat and Ashore – $13.2 million. This initiative is a combination of Tier 1 key management infrastructure (KMI), Tier 2 security equipment and Tier 3 equipment and software (SW) for key distribution and loading into end cryptographic units (ECUs). KMI provides net-centric operations for COMSEC material management. It also provides the means for secure ordering, generation, production, distribution, management and auditing of secure key of cryptographic products.

Next generation enterprise service

NGEN Transformation – $73 million. Funds here will go toward critical infrastructure, improving computing and storage capacity, reducing operation and management complexity while increasing security, availability and resiliency of the network. There will also be continued expansion of internet protocol version 6 (IPV6) and 5G, ONE-Net - NMCI Convergence, cloud SASE interface, data center consolidation, implementation of zero-trust capabilities and Naval Identity Services (NIS).

NGEN Network Management – $27.9 million. This initiative supports NMCI and ONE-Net hardware and software compliance based technical refresh to support network performance until capability can be transformed or replaced. Funds will buy down technical debt, commence migration toward a unified shore and tactical edge afloat network, and implement a technical enterprise architecture to replace obsolete technologies associated with NMCI and ONE-Net platforms.

NGEN Cybersecurity – $13.5 million. Funds provided will continue engineering, integration, and implementation for replacement of Host Based Security System (HBSS) to the latest DISA approved version, existing McAfee sensors with Cisco Firepower for Intrusion Prevention System (IPS), and Assured Compliance Assessment Solution (ACAS) for infrastructure expansion.

NGEN Cloud Services – $3.12 million. Funds provided will continue classified and unclassified video and voice over internet protocol (VVoIP) cryptographic login (CLO) infrastructure upgrades. Included are design, hardware and software procurement, and implementation of mandated CLO requirement for NMCI VVoIP infrastructure.

Enterprise information management and automation

Advanced Tactical Data Link Systems – $68 million. This initiative focuses on procurement of command-and-control equipment for both shipboard and shore units, including Link 16 network program crypto modernization (CM) and frequency remapping (FR) upgraded terminals, Link 16 network program antennas, command and control processor (C2P) hardware and software, and link monitoring management tool (LMMT) hardware and software.

Enterprise information Technology – $42 million. Funding here supports the identification and validation of C4ISR/IT system requirements, supporting ancillary tools and provides platform architecture, integration and installation design planning efforts tailored to deliver specific required capability to information warfare (IW)shore platforms.

There is also nearly $25 million directed toward Navy IT research and development — most notably some $14.5 million for a risk management software pilot project for safety program management capabilities.

Overall, this spending snapshot will be useful to vendors and systems integrators targeting procurement by the Navy. Appropriate positioning here will greatly enhance your sales opportunities. To read more about defense, as well as federal civilian agency, and SLED spending visit our Government Sales Insider.

Grier Eagan is senior market intelligence analyst for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Visit http://www.immixgroup.com/ for more information.