2010 Vision Conference

Transcription

1 2010 Vision Conference October 20-21, 2010 The Waterford Conference Center Springfield, Virginia

2 2010 Vision Conference The 46th annual TechAmerica Foundation Vision Conference promises to deliver a rich, comprehensive and widely referenced analysis of federal spending and business opportunities for the future. Insights, intelligence, and actionable data for future business opportunities are the driving forces that bring Business Developers and Strategists to the Vision Conference. Year after year, this conference never fails to deliver on accurate predictions and forecasts that give attendees the edge on qualifying, pursuing and winning business! -Ann Gladys, Director, CSC, North American Public Sector Highlights of this year s Vision Conference at a glance: Long-term forecast of the Federal IT (5-year) and U.S. Defense (10-year) markets Qualitative and quantitative analysis from 200+ industry member volunteers who participate in the forecasting process Additional insights provided by hundreds of government executives who take part in non-attribution roundtable discussions Please plan on attending this year s Vision Conference to obtain the findings of this valuable forecasting process and to network with your industry peers. For more information or to register visit

3 About TechAmerica and the TechAmerica Foundation The TechAmerica Foundation is a 501c(3) non-profit, non-partisan affiliate of TechAmerica. The Foundation was originally established in 1981 under the auspices of AeA and subsequently renamed after the merger that created TechAmerica. The charter of the TechAmerica Foundation is to create and disseminate industry, policy and market research studies, covering topics such as U.S. competitiveness in a global economy, innovation in government and other areas of national interest. The Foundation also organizes conferences and seminars to explore pertinent issues with government and industry representatives and to share the Foundation s findings. The Vision Conference is the major undertaking to achieve this goal. TechAmerica is the leading voice for the U.S. Technology industry, which is the driving force behind productivity growth and jobs creation in the United States and the foundation of the global innovation economy. Representing approximately 1,500 member companies of all sizes from the public and commercial sectors of the economy, it is the industry s largest advocacy organization and is dedicated to helping members top and bottom lines. TechAmerica was formed by the mergers of the Information Technology Association of America (ITAA), AeA, the Government Electronics & Information Technology Association (GEIA) and the Cyber Security Industry Alliance (CSIA). Membership in TechAmerica offers access to: High Quality Information on trends and opportunities for doing business with the Federal Government, including a host of key government relations programs. Active Leadership that is recognized nationally and internationally for its expertise in navigating the Federal Marketplace. An Open Channel for government to communicate messages to industry and exchange ideas.

4 2010 Industry Study Teams (DoD) The following teams are developing the 2010 Vision Forecast: Defense: Macroeconomic/DoD Top-Line Budget Cyber Security Special Study C4ISR/DoD IT Services & Support Science & Technology Aircraft Missile Defense/Precision Munitions Ships Vehicles NASA Space Industry Outlook The Vision Conference process provides a comprehensive analysis of government budget forecasts and a comprehensive understanding of the U.S. government s plans. Individual and team participation is especially important for Industry members to experience firsthand how and why Government allocates their resources. This process and the knowledge gained aids companies in their long term planning as the Administration s policies unfold in 2010 and beyond. Gerry Robbins, Executive Director, Business Development, Defense Systems Division, Northrop Grumman Corporation

5 2010 Industry Study Teams (Federal IT) The following teams are developing the 2010 Vision Forecast: Federal IT: Federal IT Budget/DoD IT Budget Game Changers (drivers in the Federal IT market) Cross-Cutting Contracts (MACs, GWACs, Schedules, BPAs) General Services Administration Department of Homeland Security Department of Health and Human Services Department of Veterans Affairs Military Health System Department of the Treasury Department of Justice Department of Transportation Department of Energy Department of State Department of Commerce Department of Agriculture The Vision process includes training in interviewing, analysis, and presentation skills, as well as substantial feedback and brainstorming sessions with industry colleagues. It s a great way to enhance your own company s professional development, and to network at the same time. Bobbi Terkowitz, Client Manager, IBM

6 DoD Forecast The TechAmerica Foundation Vision Conference will showcase the most comprehensive analysis of the future direction of Defense and Federal IT budgets available. The DoD Topline forecast chart at right is backed up by HUNDREDS of relevant forecasting charts contained within various presentations. You will note that the 2009 forecast chart predicted that the Overseas Contingency Operations (OCO) will result in Supplementals to fund those operations throughout the forecast period. By 2020 we expect to be at a Topline level somewhere between the level we were at in 2002 and (Note forecast on this chart is in constant dollars, i.e. inflation is removed; the dotted blue line indicates the current dollar forecast, i.e. includes inflation) FY10 $B $ FY DoD Topline Forecast in Constant FY10 Dollars OCO Topline = Base Budget + OCO funding MILCON & Other O&M $609 $ MILPERS RDT&E Procurement Note: Excludes FY09 Stimulus funding ($7.4 billion) Decline in OCO funding & deficit pressures will drive topline down TechAmerica Vision Conference

7 DoD Forecast The chart to the right delineates events that could potentially change the DoD forecast in an upward or downward direction. The perceived threat environment is the most likely driver of future DoD toplines. Participation in the TechAmerica Foundation forecast development process enhances my interactions with Government officials, think tanks, Wall Street analysts, and other industry professionals -- all of which enables me to provide added value to my company s strategic planning and business development processes. Cecil Black, Director of Market Assessment & Budget Analysis, Boeing Government Operations Potential Changes to 2009 DoD Forecast Adverse changes in political strategic landscape New 9/11 or devastating cyber attack Iraq withdrawal delayed Prolonged surge in Afghanistan Deficit situation improves Economy rebounds better than anticipated Entitlement reform cuts mandatory costs Guns trump butter as policy priority Administration & Congress determine that DoD modernization is a national priority Reset after Iraq/Afghanistan is more costly than anticipated Further ground forces increase TechAmerica Vision Conference Beneficial i changes in political l strategic landscape Threats diminish Iraq withdrawal goes smoothly Afghanistan ends sooner than expected Military end strength reductions Double dip recession Produces larger deficits that drive further spending cuts Butter trumps guns as policy priority Health care for uninsured & other domestic programs grow Long-term: Big 3 mandatory programs grow unchecked Perceived threat environment is most likely driver of future DoD toplines

8 Federal IT Forecast Our forecasts are recognized as the industry standard for predicting federal budget trends. There are 25+ study teams from which to choose. We provide in-depth agency forecasts. All agency presentations contain a chart detailing future budget trends (Note forecast on this chart is in current dollars, i.e. includes inflation) Current $B 2009 Federal IT Forecast TOTAL CAGR FY10-FY15 = 3.1% $100 DOC $90.7B USDA $90 $77.8B VA $80 $61.4B NASA $70 DOT $60 DOE $50 Treas $40 DOJ $30 HHS $20 DHS $10 Other Civ $0 DefAg Navy Army AF FY05 FY06 FY07 TechAmerica Vision Conference FY08 FY09 FY10 FY111 FY12 FY13 FY14 FY15

9 Federal IT Forecast After examining the inhibitors and drivers, we concluded that despite the downward pressures, IT needs across government will result in conservative IT budget growth in Growth is driven primarily by increasing demand for better and more efficient government services and the need for long-term IT investments in order to contain the costs of delivering those services. Federal IT Budget 2009 Forecast Assumptions IT Budget Inhibitors Improve fiscal Realize long-term discipline ROI from investments Achieve economies in government IT Budget Drivers contracting; reform Improve services acquisition to citizens practices Increase scope & scale of government services Address pent-up Meet up- demand d in wants front costs of and needs investments Make operation- critical investments FY CAGR = 3.1% Increasing demand for more efficient government services Need for long-term IT investments in order to contain the per capita costs of delivering those services Despite downward pressure, we foresee IT needs driving slower growth TechAmerica Vision Conference

10 Member Companies that participated on our 2009 Vision Study Accenture ACS American Systems AT&T BAE Systems, Inc. The Boeing Company Booz Allen Hamilton Buzzient, Inc. CA, Inc. CACI Capgemini Government Solutions, LLC Creative Computing Solutions, Inc. CGI Federal Citrix Government Systems Compusearch Software Systems Convergys Government Solutions, Inc. Crane Aerospace & Electronics CSC Curtiss-Wright Corporation Dell Perot Systems Deloitte Digital Management, Inc. Dynamic Research Corporation DRS Technologies EMC Corporation Federal Insights Fortress Technologies, Inc. General Dynamics Corporation Govplace GTSI Harris Corporation Hewlett Packard Honeywell International HP Enterprise Services IBM ICF International ifour LLC Information International Associates (IIa) INTEGRITYOne Partners

11 K-Force Government Solutions (KGS) Kollmorgen Electro-Optical L-3 Communications Lockheed Martin Corporation McKenna Long & Aldridge, LLP Meggitt USA Meridian Government Services Metters Industries, Inc. NetStar-1 Nortel Government Solutions Northrop Grumman Corporation Oracle OST, Inc. Panasonic Corp. of North America Pragmatics PricewaterhouseCoopers PRTM Management Consultants, LLC Qbase QinetiQ North America Qwest Government Services Rainmakers Government Solutions, LLC Raytheon Company Rockwell Collins SAIC SAS Institute, Inc. Segovia, Inc. Serco SiloSmashers Sprint SRA International SRC Suss Consulting Sypris Electronics, LLC TerreStar Networks The Veschi Group TIBCO Unisys Corporation USIS Vangent, Inc. VeriSign Verizon Business Vistronix, Inc.

12 Contacts Jim Serafin, Vice President, Market Forecasting , Joan Piccariello, Senior Director, Market Forecasting , Sponsors: Please contact Jim Serafin, , about sponsorship opportunities For more information or to register for the Vision Conference, visit