New Research: DoD Cybersecurity and Modernization Efforts Most Likely to Move Forward with New Federal Budget

Survey Results from Market Connections Point to Government Contractors Needing to Be Prepared, and Guide Acquisition Processes

Fairfax, Va.— March 20, 2018 — With the Bi-Partisan Budget Act of 2018 (BBA) passed in February 2018, lifting caps on spending and paving the way for significant increases in discretionary spending, Federal IT Contractors working with Defense Agencies can expect to feel the impact immediately, according to a new PulsePollä from Market Connections.

More specifically, with the funding cap being increased by $80 billion in FY2018 and $85 billion in FY2019, defense agency decision-makers, procurement officers, and government contractors should prepare for many new Department of Defense (DOD) cybersecurity and IT modernization efforts to move forward.

Following are some key findings and insights from the survey:

  • DOD is ready to move technology projects forward. Currently, eight out of ten respondents have programs and projects on hold because of budget related issues. With the current continuing resolution set to expire on March 23rd, and the BBA passing, many believe relief is in sight. Almost two-thirds believe that the budget increases that have been projected for FY2018 and FY2019 will reinvigorate efforts that have been on hold.
  • Spending will start this year and continue to grow in FY2019. Knowing that there can often be a long lag time from funding approval to implementation, Market Connections asked, how soon those working in DOD agencies felt budget increases would begin to have an impact. Overwhelmingly, respondents believed that new federal dollars would make an impact in the next 18 months. Nearly one-quarter believe that the impact will be felt immediately (within this fiscal year) and another 57 percent who believe the monies will begin making an impact in FY2019.
  • DOD to spend to modernize hardware and systems, but more important improve their cyber-defense capabilities. Nearly two thirds of respondents placed cyber security in the top five of their spending priorities. “In this day and age, it is not surprising that cybersecurity tops the list of those types of projects that will get first attention,” said Aaron Heffron, president of Market Connections. “We hear from our clients every day that federal agencies are asking for assistance in securing their networks and systems.”
  • Key focus on modernization: Modernization was another key focus area, with replacement of old hardware (56 percent) and overall network modernization (43 percent) listed as areas where new budget dollars will have the greatest impact. Current staff may get some relief with the influx of dollars through training and staff augmentation. Nearly half of respondents reported that they will allocate new dollars to staff training and one-third will be spending to hire new civilian personnel.
  • Contractors need to plan now to help guide the planning and acquisition process. New contracts and projects will launch at a rapid pace, and program officers and procurement officials will be scrambling to pull together the best solutions in a tight time frame.

“With the continuing resolution deadline quickly approaching, and the new fiscal year right around the corner, now is the time to provide defense agencies with the type of information and content they need to help them make good, and fast, decisions,” added Heffron. “Based on our past research, product demos, case studies, research reports and white papers will be critical in providing relevant information quickly. Highlights of your cybersecurity and modernization solutions should be as up-to-date as possible.”

About the Study
Participants in the Market Connections PulsePoll™ included over 100 respondents from all branches of the armed forces as well as a wide variety of defense agencies. All individuals participate in some fashion in the acquisition of technology solutions, ranging from developing specifications and requirements to evaluating options and making the final decision.

For more information about this study, please visit www.marketconnectionsinc.com/2018-DoD-Budget-Poll/. In addition, for more information on the most valued content during the federal procurement process, visit: http://federalcontentmarketing.com/

About Market Connections, Inc.
Market Connections delivers actionable intelligence and insights that enable improved business performance and positioning for leading businesses, trade associations and the public sector. The custom market research firm is a sought-after authority on preferences, perceptions and trends among the public sector and the contractors who serve them, offering deep domain expertise in information technology and telecommunications, health care and education. For more information visit www.marketconnectionsinc.com.

 

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