Deltek Analysis: Cybersecurity OTA Spending at Defense Agencies Totaled $239M in Past 3 Years

A new Deltek analysis shows that agencies under the Department of Defense spent $239 million on other transaction agreements for cybersecurity-related activities between fiscal year 2020 and fiscal 2022.

After a spending growth of nearly 21 percent from FY 2020 to FY 2021, DOD components’ spending on cybersecurity efforts using OTAs rose by 59 percent from $70 million in FY 2021 to $111 million in FY 2022, John Slye, senior advisory research analyst at Deltek, wrote in the market analysis published Friday.

The Defense Information Systems Agency emerged as the top spender, representing 63 percent of cyber-related OTA spending in the past three years at $152 million.

The Defense Advanced Research Projects Agency came in second, accounting for 28 percent of the total cyber OTA spending at $66 million.

“While the Defense Agencies’ use of OTA contracts for cybersecurity-related efforts is more modest than the Army and Air Force, their yearly spending has been growing significantly, especially in FY 2022,” Slye noted.

In the past three fiscal years, the Army’s cybersecurity-related OTA spending totaled $862 million, while the Air Force spent an aggregate of $333 million on cyber OTAs.

“Further, the strong use of OTA contracts in FY 2022 along with the wide variety of capabilities and applications for which the agencies are using these contracts indicate both the scope of innovation and the urgency they place on developing these capabilities,” added Slye.

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