Federal IT spending in fiscal 2006 will reach $12.6 bln

Federal civilian agencies will receive $12.5 bln in fiscal year 2006 for development/modernization/enhancement (DME) spending, a 13% increase from FY05 according to INPUT. DME spending includes new government initiative spending versus existing initiative maintenance and will provide technology vendors additional federal contracting opportunities.

Programs related to federal enterprise architecture and planning will receive the largest year-over-year growth in DME spending with a 28% increase from $240 mln to $306 mln in fiscl 2006. Mission area support programs will continue to receive the most DME spending and the largest dollar increase with $9.1 bln in planned spending next year, a 12% increase from FY05. Infrastructure, office automation and telecom will see a 16% increase in new spending to $2.2 bln in FY06.

Improving IT security deficiencies will remain a priority in fiscl 2006. Total spending on IT security for the 18 agencies directed to correct security deficiencies in fiscal 2005 will increase 7% from $1.6 bln in fiscal 2005 to close to $1.7 bln next year.