By Grier Eagan
The Navy’s IT budget for FY25 is just over $6 billion, with nearly $5.2 billion directed to steady-state expenses, and $875.5 million for development, modernization, and enhancement. *
Funds for Navy IT are split among information security initiatives, enterprise information system expansions, and automated tool adoption. For vendors, these programs should dictate product and service positioning when selling into the Navy.
Here’s an overview of key areas of the service’s IT investment.
Information systems security
Navy Crypto Afloat & Ashore – $86 million. This program modernizes legacy cryptographic equipment, including Communications Security (COMSEC) and Transmission Security (TRANSEC) devices. These devices provide modern cryptographic solutions to replace obsolete, legacy devices, to meet mandated National Security Agency (NSA) cease key dates for modernized encryption.
SHARKCAGE Afloat & Ashore – $30 million. This is the U.S. Navy's Defensive Cyberspace Operations (DCO) means to achieve cyberspace detection-in-depth. SHARKCAGE is the mechanism by which units, groups and fleets will gain an attack sensing and warning (AS&W) capability.
Computer Network Defense (CND) Afloat & Ashore – $27.7 million. CND ashore provides capabilities to secure the cyber domain. The CND afloat operating system environment (OSE) includes host-based protection tools, system vulnerability tools, cyber remediation tools, and hardware and software support.
Next-generation enterprise service
NGEN Transformation – $73 million. Funds here go toward critical infrastructure, improving computing and storage capacity and reducing operation and management complexity. There will also be continued expansion of internet protocol version 6 (IPV6) and 5G, ONE-Net - NMCI Convergence, cloud SASE interface, data center consolidation, implementation of zero-trust capabilities and Naval Identity Services (NIS).
NGEN Network Management – $27.9 million. This initiative supports NMCI and ONE-Net hardware and software compliance-based technical refresh. Funds will buy down technical debt, commence migration toward a unified shore and tactical edge afloat network, and implement a technical enterprise architecture to replace obsolete technologies associated with NMCI and ONE-Net platforms.
NGEN Cybersecurity – $13.5 million. Funds here will continue engineering, integration, and implementation for replacement of Host Based Security System (HBSS) to the latest DISA-approved version.
Enterprise information management and automation
Advanced Tactical Data Link Systems – $68 million. This initiative focuses on procurement of command-and-control equipment for both shipboard and shore units, including Link 16 Network Program Crypto Modernization (CM) and frequency remapping (FR) upgraded terminals, and Link Monitoring Management Tool (LMMT) hardware and software.
Enterprise Information Technology – $42 million. Funding here supports the identification and validation of C4ISR/IT system requirements, as well as ancillary tools. It also provides platform architecture, integration and installation design planning for Information Warfare (IW) Shore Platforms.
There is also nearly $25 million directed toward Navy IT research and development — most notably some $14.5 million for a risk management software pilot project for safety program management capabilities.
This spending snapshot should be useful to those vendors and systems integrators targeting procurement by the Navy. Appropriate positioning here will greatly enhance your sales opportunities.
This article was adapted from a commentary first published in Washington Technology. The full text of that commentary can be found here.
Grier Eagan is senior market intelligence analyst for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Visit http://www.immixgroup.com/ for more information.
immixGroup delivers mission-driven results through innovative technology solutions for public sector IT.
*(Note: This budget overview does not include National Security Systems because those numbers are classified. All budget amounts that are contained in this article are taken from the President’s Budget Request for FY2025.)
