New Deltek Research Outlines how Defense Authorization Bill will Shape Defense IT Priorities

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According to Deltek, FY 2013 NDAA will affect IT procurement, cyber security, network operations, and software use for years to come.

Deltek, Inc., the leading global provider of enterprise software and information solutions for government contractors and professional services firms, has released new analysis of the FY 2013 National Defense Authorization Act (NDAA), which includes new Congressional policy directives that will set the stage for Defense’s new IT strategy and procurement direction.

According to Deltek’s new report, FY 2013 National Defense Authorization Act: Market Implications, the FY 2013 NDAA requires that DoD take a range of concrete IT-related actions including:

  •     Limit the use of cost-type contracts
  •     Increase contracting opportunities for small business
  •     Acquire big-data analytical tools
  •     Improve management of the Air Force’s NETCENTS-2 contract vehicle

The report provides an in-depth description of the NDAA-required changes in relation to acquisitions and contracting, cyber security, network operations, and software. The report goes on to analyze how these changes will reshape Defense IT budgets and contracting plans, and explains how large and small contractors must react in order to maximize DoD business opportunities.

Contracting Changes
For example, the 2013 NDAA instructs the Secretary of Defense to modify acquisition regulations to prohibit DoD from entering into cost-type contracts for the production of major defense acquisition programs.

“Over the past few years, industry has seen a shift at the DoD toward the use of short-duration contracts aligned with major project milestone dates,” says Deltek analyst Alex Rossino. “The official limitation on cost-type contracts in the NDAA for significant acquisitions signals that the use of short duration contracts is a trend that is here to stay.”

Also with regard to contracting, the law requires by early March that the DoD select an appropriate entity to conduct an independent assessment of DoD’s procurement performance related to small business and report to Congress by the beginning of calendar 2014.

“The Hill continues to press the DoD to direct more contract dollars to small businesses and wants to see greater headway and transparency,” says Deltek analyst John Slye. “Congress wants greater data granularity on DoD’s prime and subcontracting through small firms and to know if DoD is limiting practices that could negatively impact small vendors.”

Cyber Security and Big Data
On the technology side, the legislation directs the DoD to evaluate available large-scale software database and data analysis tools that could be used to meet DoD needs for large-scale data analytics. If the analysis identifies a need for software systems or tools, the DoD is instructed to acquire these using competitive procedures.

“This section moves the DoD closer to specifying its technical needs for data analytics,” Rossino says. “As these needs become clear, industry should see increased investment by the DoD in advanced analytics and database software offered by commercial vendors.”

With regard to cyber security, the 2013 NDAA instructs the Secretary of Defense to submit to Congress the Air Force’s cyber security investment strategy. This strategy must cover investments in cyber science and technology, including technologies for command and control (C2) and decision support as well as cyber exploitation. Congress also wants to know the Air Force’s strategy to employ these technologies into weapons systems.

“The fact that Congress wants to know how the Air Force plans to embed new cyber technologies into its weapons systems shows true convergence of traditional IT, weapons systems, and cyber security,” Slye says. “Congress recognizes that there is still progress to be made and the value of cyber in a proactive defense.”

In-Depth Analysis
Deltek’s FY 2013 National Defense Authorization Act: Market Implications report provides 38 pages of in-depth analysis of the new legislation. It provides summaries of the 15 technology areas outlined in the FY 2013 NDAA and the implications of congressional mandates for the Defense IT market.

Click here to download the free report summary for FY 2013 National Defense Authorization Act: Market Implications. Press interviews can be arranged through Lauran Cacciatori at laurancacciatori(at)deltek(dot)com.

About Deltek
Deltek is the leading global provider of enterprise software and information solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 16,000 organizations and 2 million users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable projects. Deltek – Know more. Do more.®

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