Winners and losers in 2012 federal IT budget

Friday - 1/6/2012, 10:52am EST

Kevin Plexico, Vice President of Federal Information Solutions, Deltek

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By Jolie Lee
@jleewfed
Federal News Radio

Few might expect the IT budget this year to feel the budget pinch many other programs are facing.

But the appropriations for overall federal spending in 2012 is $98 billion lower than the President's request, said Kevin Plexico, vice president of Federal Information Solutions at Deltek. "I think we should expect the IT budget will feel a bit more of a pinch than we thought," Plexico said.

A few agencies came out as winners in the 2012 federal IT budget, particularly for large IT systems projects, based on Deltek analysis, Plexico said in an interview with The Federal Drive with Tom Temin

Winners

  • Federal Aviation Administration's NextGen project ($1 billion)

  • The Defense Department and Veterans Affairs health records management system ($100 million)

  • Internal Revenue Service business systems modernization ($330 million)

  • Homeland Security Department data center modernization migration ($70 million)

  • Commodity Futures Trade Commission for implementing the Frank-Dodd Act ($55 million in new IT investment)

  • Cybersecurity funding was "sprinkled across many agencies."

  • IT implications from health care reform legislation.

  • Anti-waste, fraud and abuse initiatives. For example, the American Recovery and Reinvestment Act received $28 million.

Losers

  • Cloud computing: Although this is one area that is a top priority for the Office of Management and Budget, Congress did not include any mention of cloud computing in its appropriations, Plexico said.

  • The area of the budget that is drawing down the fastest is overseas contingency funding. It's unclear how this drawdown will affect IT spending, Plexico said.