Civilian Budget Overview

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Civilian IT Budget Overview

HHSDHS

Treasury VA

DOTDOJ

USDA

DOCDOE

NASA SSA

DOSDOI

GSA DOL

Education

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2013 IT Budget Request in $M

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All rights reserved. No part of this presentation may be reproduced or distributed without the prior written permission of immixGroup, Inc.

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18$0

$10

$20

$30

$40

$50

Fiscal Year

Civi

l IT

Budg

et ($

B)

3

$35.6B

$43.5B$40.8B

$39.5B

$39.1B

FY08-FY13 FY13-FY18

CAGR Current $ 2.8% 1.2%CAGR Constant $ 0.9% -0.7%

Source: TechAmerica Analysis

Civilian IT budget expected to see slight increase over forecast term

CurrentConstant

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Current Status: FY13 Appropriations

September 2011

Agencies submit final FY13 Exhibit 53 & Exhibit 300s

to OMB

May-July 2011

Six approps bills pass House; none

pass Senate

April-August 2012

Eleven approps bills pass

committee in Senate; none

receive full Senate vote

September 2012

Continuing Resolution is

introduced and passes both House

& Senate votes; becomes law 9/28

March 27, 2013

Continuing Resolution expires

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Sequestration

Caps discretionary spending levels between 2013-2021, and requires overall reduction of $1.2 trillion in spending

Law requires an 8.2% cut in all civilian discretionary spending across all programs, projects, and activities

Only unobligated funds are eligible for sequestration – OMB has indicated that funds appropriated for enacted contracts will be spared from sequestration

An estimated $38.5 billion will be cut in FY13, of which $8.92 billion will come from contract dollars

Large programs & contractors are likely to be affected, with IT development shifting towards incremental progress & agile development practices to more efficiently spend limited dollars

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OMB: 10% Reduction in IT Spend for FY14

OMB guidance on FY14 Exhibit 53/300 submittals indicated a required 10% across-the-board reduction in IT spending levels

Further guidance designated duplicative IT contracts & large, unwieldy programs as primary targets for reduction

All agencies must reinvest half of the money saved into new systems with positive ROI (i.e. new DME spending); all agencies may repurpose all money saved through contract consolidation & elimination of underperforming or redundant programs