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By Ryan Nelson
ImmixGroup market intelligence manager Ryan Nelson breaks down defense IT spending around four key areas: data, cyber, AI and infrastructure.
Cyber Command shifting from the services to the DoD budget.
With the recent release of the White House’s fiscal 2025 budget proposal, it’s important to remember we are now entering the second half of fiscal 2024 spending. For government contractors, as they enter this period of bidding and awards, it’s important to focus on where the Department of Defense will focus its IT spending.
The final congressional agreement for 2024 budgeting set DoD funding at $825 billion, only somewhat less than the original request. It also offers flexibility to reallocate funds without Congressional approvals, within and among programs at a “below threshold” level of $15 million.
The DoD’s requested Information Technology/Cyberspace Activities (IT/CA) budget of $58.5B represents approximately 7percent of its resources. Cyberspace budgeting increased from fiscal 2023 but is now concentrated in the DoD due to funding for U.S. Cyber Command shifting from the services to the DoD budget.
Vendors can set up for success by understanding these priorities and presenting their capabilities in the context of the following key initiatives.
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