Analysts said contractors competing for the U.S. Navy’s information technology programs face major opportunities as the service’s IT budget is predicted to climb from $11.3B in fiscal year 2019 to $12B in 2020, National Defense reported Wednesday.
The Navy’s cybersecurity spending is projected to increase to $1.6B in 2020 and overall IT spending is expected to reach $12.3B by 2024, according to presentation slides by Cameron Leuthy, a senior budget analyst with Bloomberg Government.
“It doesn’t look like much compared to the rest of the contract spend for the Navy, but it’s big money,” Leuthy said of the service’s IT budget.
According to the report, some of the service’s IT initiatives with the largest budgets for 2019 include the Navy’s standard integrated personnel system; enterprise resource planning; maritime maintenance enterprise platform; and base communications office.
Leuthy said a variety of companies have a considerable presence in the IT market.
“You’ve got an interesting mix of hardcore, traditional big defense contractors and specialized IT companies in this space,” he said. “Some of these top vendors weren’t big in Navy contracting overall, but they’re big in the IT space.”