Fiscal Year 2015 Budget In Brief March 2014 Federal Communications Commission Table of Contents Page • Int rodu ct i on ........................................................................................................................ 1 • S um m ar y of Requ es t .......................................................................................................... 3 • P ropos ed Appropri at i on Lan gu a ge .................................................................................... 4 • Le gi s l at i ve Propos al s ......................................................................................................... 5 • S um m ar y of FY 20 13- F Y 20 15 FTEs and Fundi n g Compari s on ...................................... 6 • S um m ar y of Chan ges ......................................................................................................... 7 • Narr at i ve Ex pl anat i on of Changes ..................................................................................... 8 i Introduction The Fede ral Comm uni ca t i ons Comm i s s i on (FC C or Comm i s s i on) is pleas ed to pr esent its fiscal year (FY) 2015 bud get req ue s t . The FCC is reques t i ng a bud get of $375,380,313 to carr y out the FCC ’s funct i ons and meet the ex pect at i ons of Congres s . The FCC ’s FY 2015 bud get subm i s s i on incl udes reques t s for fundi n g to: (1) s upport reform of th e Un ivers al Servi ce Fund Sup port Progr am ; (2) provi de resourc es fo r m issi on- cri t i cal s yst em s t o ensure that the y are operat i onal du ri ng a Cont i nui t y of Op erat i ons (COOP ) event ; (3) creat e a Do - Not - C al l re gi s t r y for tel ephone numb ers used b y P ubl i c Safet y Answ eri n g Point s (PS AP s ); (4) t o repl ace Enfor cem ent Bure au’s Equi pm ent ; (5) support Comm i s si on - wi de inform at i on technol og y improvem ent s through new FTEs; ex tend i ng the enterpri s e stor a ge; big data c ybers ecuri t y anal yt i cs ; and c ybe rs ec uri t y authori z at i on, admi s s i on, and educat i on ; and (6) i m prove the evol ut i on of the Bro adband map. In fu rt heran ce of these o bject i ves and the FCC ’s missi on, the FY 2015 budget reques t will be used to support the foll owi ng Str at e gi c Goal s : Strategic Goal 1: Connect America Maximize Americans’ access to and use of affordable fixed and mobile broadband where they live, learn, work, and travel. Strategic Goal 2: Maximize Benefits of Spectrum Maximize the availability of spectrum in order to provide diverse and affordable communications services to consumers. Strategic Goal 3: Protect and Empower Consumers Empower consumers by ensuring that they have the tools and information they need to make informed choices in their use of communications services; protect consumers from harm in the communications market. Strategic Goal 4: Promote Innovation, Investment, and America’s Global Competitiveness Ensure that all lawful content can be provided, and accessed, without artificial barriers; promote innovation in a manner that improves the nation’s ability to compete in the global economy, creating a virtuous circle that results in more investment and in turn enables additional innovation. Strategic Goal 5: Promote Competition Ensure a competitive market for communications and media services to foster innovation, investment, and job creation, and to ensure consumers have meaningful choice in affordable services. Strategic Goal 6: Public Safety and Homeland Security Promote the availability of reliable, interoperable, redundant, rapidly restorable critical communications infrastructures that are supportive of all required services. - 1 - Strategic Goal 7: Advance Key National Purposes Through international and national interagency efforts, advance the use of broadband for key national purposes. Strategic Goal 8: Operational Excellence Make the FCC a model for excellence in government by effectively managing the FCC’s human, information, and financial resources; by basing decisions on sound data and analyses; and by maintaining a commitment to transparent and responsive processes that encourage public involvement and best serve the public interest. The FCC ’s FY 2015 bud get subm i s s i on also incl u des a reques t fo r the spen d i ng of Auct i ons fundi n g at $106 mill i on to support the timel y impl em ent at i o n of the Inc ent i ve Auct i o ns program . As in prior ye ars , the FC C is subm it t i ng its FY 20 15 budget reques t infor m at i on at the organi z at i onal level to show the propos ed use of resourc es . In addi t i on, the FCC ’s budget reques t also shows the propos ed use of funds by ke y account s withi n each bureau or offi ce. This form at provi des a detai l ed view of the FCC ’s propo s ed use of bud get ar y resources . We wel com e the budget ar y pro ces s and st and read y to provi de Con gr es s with the inform at i on to ensure effe ct i ve overs i gh t of the FCC . - 2 - FY 2014 FY 2015 FTE Congressional Appropriation FTE Congressional Re quest FTE Re quested Changes Budget Authority to use Offsetting Collections: Regulatory Fees - Commission 1,689 $328,754 1,738 $364,290 49 $35,536 Regulatory Fees - OIG 46 $11,090 52 $11,090 6 $0 Total Offsetting Collections 1,735 $339,844 1,790 $375,380 55 $35,536 Authority to spend Other Offsetting Collections: Economy Act/Misc. Other Reimbursables $6,000 $6,000 $0 Auction Cost Recovery Reimbursements - Commission $98,033 1 / $105,481 1 / $7,448 Auction Cost Recovery Reimbursements - OIG $706 1 / $519 1 / ($187) $104,739 $112,000 $7,261 1,735 $444,583 1,790 $487,380 55 $42,797 Other Budget Authority: Credit Program Account $1,933 $500 ($1,433) Universal Service Fund (USF) 0 $3,315 2 / 0 $4,130 2 / 0 $815 Subtotal: Other Budget Authority 0 $5,248 0 $4,630 0 ($618) Total Gross Proposed Budget Authority 1,735 $449,831 1,790 3 / $492,010 55 $42,179 Subtotal: Offsetting Collections ($ in thousands) 3 / Th e t o t a l re q u e s t o f 1,790 FT Es is in c re a s e o f 55 FTEs , o f wh ic h in c lu d e s 10 n e w FTEs t o s u p p o rt t h e IT Ce n t e r a n d 45 n e w h ire s fo r t h e USF s u p p o rt o v e rs ig h t . 1/ T h e A u c t io n s re q u e s t o f $106M in FY 2015 re p re s e n t s a in c re a s e o f $7.3M fro m FY 2013 & FY 2014 fo r In c e n t iv e A u c t io n s o f $98.7M . SUMMARY OF REQ UEST The Federal Communications Commission (FCC) is requesting a FY 2015 appropriation of $375,380,313. We project the FCC will employ 1,790 full-time equivalents (FTEs ) in FY 2015 from requested resources. The FC C will use the FY 2015 funds to carry out its fundamental mission to ensure that the American people have available, at reasonable costs and without discrimination, rapid, efficient, N ation - and world- wide communications services whether by radio, television, wire, satellite, or cable. 2/ Th e Co n s o lid a t e d A p p ro p ria t io n s A c t , 2008 (P.L. 110-161) a u t h o rize s u s e o f $21.5M t o b e u s e d b y t h e Offic e o f t h e In s p e c t o r Ge n e ra l fo r USF A u d it Su p p o rt . In FY 2008 - FY 2013, $13.9M wa s o b lig a t e d . Th e re ma in in g $7.6M h a s b e e n c a rrie d fo rwa rd , a s fo llo ws $3.3M is e s t ima t e d t o b e u s e d in FY 2014 a n d $4.3M will b e u s e d in FY 2015. Subtotal: Budget Authority Offsetting Collections - 3 - FY 2015 PRO PO S E D APPRO PRIATION LANGUA GE For ne ces s a r y ex pens es of the Feder al Comm uni cat i ons Comm i s s i on, as authori z ed b y l aw, incl udi ng uniform s and allowances th ere fore, as authori z ed b y 5 U.S .C . §§ 5901- 5902; not to ex ceed $4,000 for o ffi ci al rec ept i on and repres e nt at i on ex pens es ; purcha s e and hire o f motor vehi cl es ; spe ci al couns el fees; and s ervi c es as au thori z ed b y 5 U.S .C . § 3109, $375,380,313, to remai n avai l abl e unti l expended: Provided , That $375,380,313 of offset t i ng coll e ct i ons shal l be asses s ed and coll ect ed p ursuant to sect i on 9 of ti tl e I of the Comm uni cat i ons Act of 1934, shal l be retai ned and used for neces s a r y ex pens es and shal l remai n avai l abl e unti l ex pended: Provided further , That the sum h erei n appropri at ed shal l be reduc ed as such off set t i ng coll ect i ons are recei v ed duri n g fiscal ye ar 2015 so as to resul t in a final fiscal yea r 2015 appropri at i on esti m at ed at $0: Provided further , That an y o ffset t i n g coll ect i ons recei ved in ex ce s s of $375,380,313 in fiscal ye ar 2015 shall not be av ai l abl e fo r o bli gat i on: Provided further , That remai ni ng offset t i ng coll ect i ons fro m prior ye ars coll e ct ed i n ex ces s of the amount s peci fi ed for coll ect i on in each yea r and other w i s e becom i ng avai l abl e on October 1, 2014, sha l l not be avai l abl e for obli gat i on: Provided further , That , notwi t hs t andi ng 47 U.S .C . § 309(j )(8) (B), pro ce eds from the use of a compet i t i ve bidd i ng s yst em that ma y be retai ned and mad e avai l ab l e for obli gat i on shal l not ex ceed $ 106,200,000 for fiscal yea r 2015, incl udi ng not to ex ceed $518 ,981 for obli gat i on b y the Offi ce of the Inspe ct or Gener al : Provided further , That , of the amount appropri at ed unde r this headi ng, not less th an $11,090,000 shal l be for the sala ri es and ex pens es of the Offi c e of Insp ect or Gener al . - 4 - Legislative Proposals The Admi ni s t rat i on is propos i ng le gi s l at i ve ch a nges in the Pr esi dent ’s FY 2015 Bud get that pert ai n to the FCC and t hat are desi gned to impr ove spect rum m ana gem e nt and rep res ent sound econom i c poli c y. The p r opos ed le gi s l at i ve chan ges are in cl uded below. Spectrum License User F ee To prom ot e effi ci ent u se of the elect rom a gnet i c spect rum , the Admi ni s t rat i on propos es to provi de the FCC with ex pres s authori t y to use other econom i c me chani s m s , such as fees, as a spect rum mana gem ent t ool . The FCC woul d be authori z ed to set user fees on unauct i oned spect rum licens es , which coul d be useful in ce rt a i n inst ances . Fees wo ul d be phas ed in ov er time to determ i ne the ap propri at e appl i c at i on and level for fees. Fee coll e ct i on s are esti m at ed to begi n in 2015, and total $ 4.8 bill i on through 2024. Repurpose 1675 - 1680 Megahertz using Auction or Fee Authority The Admi ni s t rat i on pro pos es to direct th at the FCC use eithe r au ct i on or fee authori t y to repurpos e spe ct rum freq uenci es betwe en 1675- 1 680 megah ert z for wirel es s broadband use b y 2017, subj ect to shari ng arran gem ent s with Fed er al weat he r satel l i t es . Current l y, the sp ect rum is being used for radi os ondes (weat he r ball oons ). A new weat her satel l i t e that is schedul ed for launch in 2015 will ope rat e in adjac ent frequen ci es . If this propos a l is ena ct ed, the Nati onal Oceani c and Atmos pher i c Admi ni s t rat i on woul d move the radi os ondes t o anot her frequ enc y, allowi ng the spe ct rum to be repurpos ed for comm erci al use with limi t ed prot ect i on zones for the remai ni ng weat her satel l i t e downl i nks . Witho ut this propos al , these fr eq uenci es are unli kel y to be repurpos ed to comm e rci al use. The propos al is ex pect ed to raise $230 mill i on over the next 10 ye ars . Auction Domestic Satellite Service Spectrum Licenses The FCC woul d be allowed to assi gn licens es for cert ai n satel l i t e servi c es that are predom i nant l y domes t i c through compe t i t i ve biddi ng, as had been done before a 2005 co urt deci s i on call ed the pract i ce into quest i on on techni cal grounds . The propos al is ex pect ed to raise $50 mill i on from 2015- 2024. - 5 - (Dollars in Thousands ($000)) FTEs Appropriation FTEs Congressional FTEs Congressional Actuals Appropriation (Note 1) Request Chairman and Commissioners 16 $4,241 30 $ 6 ,708 30 $ 6 ,824 Consumer & Governmental Affairs Bureau 160 $23 ,304 160 $25,315 160 $26 ,254 Enforcement Bureau 264 $44,13 7 264 $46 ,251 264 $47 ,6 70 International Bureau 119 $21,094 119 $21,427 119 $21,7 9 8 Media Bureau 181 $26 ,920 181 $28 ,051 181 $28 ,53 9 Public Safety & Homeland Security Bureau 113 $18 ,3 8 6 113 $18 ,262 113 $18 ,57 7 Wireless Telecommunications Bureau 215 $15,53 7 215 $16 ,800 215 $17 ,091 Wireline Competition Bureau 17 8 $ 30,270 17 8 $ 30,9 34 217 $ 3 8 ,529 Office of Administrative Law Judges 4 $ 3 85 4 $550 4 $560 Office of Commun. Business Opportunities 12 $1,903 12 $2,015 12 $2,050 Office of Engineering & Technology 82 $13 ,804 82 $14,3 9 3 82 $14,641 Office of the General Counsel 71 $13 ,040 71 $13 ,7 34 71 $13 ,9 7 3 Office of Legislative Affairs 12 $2,007 11 $2,107 11 $2,143 Office of the Managing Director 209 $ 91,152 204 $ 9 3 ,7 65 214 $113 ,056 Office of Media Relations 14 $2,48 9 14 $2,525 14 $2,56 9 Office of Strategic Planning & Policy Analysis 26 $ 3 ,954 26 $5,07 9 26 $ 9 ,16 6 Office of Work place Diversity 5 $ 821 5 $ 8 3 7 5 $ 851 FCC S UBTOTAL 1 ,6 81 $ 313 ,443 1,6 8 9 $ 32 8 ,754 1,7 3 8 $ 3 64 ,290 Office of Ins pector General 42 $ 9 ,061 46 $11,090 52 $11,090 FCC TOTAL 1,723 $ 322,504 1,7 35 $ 3 3 9 ,844 1,7 90 $ 3 75,3 80 SUMMARY OF FY 2013 - FY 2015 FULL-TIME EQUIVALEN TS (FTEs ) AN D FUN DIN G BY BUR EAU AN D OFFICE Note 1: Th e t o t a l re q u e s t o f 1,790 FT Es is in c re a s e o f 55 FTEs , o f wh ic h in c lu d e s 10 n e w FTEs t o s u p p o rt t h e IT Ce n t e r a n d 45 n e w h ire s fo r t h e USF s u p p o rt o v e rs ig h t . FY 13 FY 14 FY 15 - 6 - FY 2014 FY 2015 Net Change From Cong. Approp. Cong. Re quest FY 2014 Re quest O ffsetting C ollections $328,754 $364,290 $35,536 O ffsetting C ollections - O IG 11,090 11,090 0 Total Offsetting Collection/Spending Authority $339,844 $375,380 $35,536 F C C Full- time Equivalents 1,689 1,738 49 F C C - O IG Full- time Equivalents 46 52 6 Total Full-time Equivalents 1/ 1,735 1,790 55 FCC - Commission without Office of the Inspector General Amount Inflationary Increases to Base: S alary Increases - Pay Raise (1%) $2,133 N on Salary Increases (1.6%) $1,524 F ERS Retirement Increase $2,182 Subtotal $5,839 Adjustments to the Base: S upport for Reform of the Universal S ervice F und S upport Program $10,877 C ontinuity of O perations P lan $520 P ublic Safety Answering P oints - Do N ot C all Registry $500 Broadband Map (Transfer from N TIA) $3,000 Enforcement Bureau Equipment $625 N ew FTEs for ITC Support $610 Subtotal $16,132 Programmatic Increases: IT Storage Expansion $1,290 Big Data C ybersecurity Analytics $700 C ybersecurity Authorization, Admission, & Education $800 C ybersecurity Metrics P rogram $575 Modernization of Aging IT Systems $9,200 Broadband Map (O ne- time C ost) $1,000 Subtotal $13,565 FCC Subtotal - before the Office of the Inspector General $35,536 FCC-OIG Subtotal $0 Total $35,536 S UMMARY OF CHAN G E S ($ in t h o u s a n d s ) 1/ The total request of 1,790 FTEs is increase of 55 FTEs, of which includes 10 new FTEs to support the IT C enter and 45 new hires for the US F support oversight. Explanation of Changes - 7 - Narrative Explanation of Increases and Decreases Inflationary Increases to Base $5,839,312 1. P ers onnel Compens at i on and Benefi t s . The requ e s t ed $2,133,618 provi des funds to cover th e cost of th e 1% FY 2015 pa y raise fo r 75 % of the fiscal yea r, funds to ann ual i z e 25% of the FY 2014 p a y raise (.5 %) , and funds to cover the cost of pa y in cre as es res ul t i ng from acti ons other than pa y raises (su ch as time- i n - gr ade step increas es ) and incre as es in heal t h benefit cost s . 2. FER S Reti rem ent Cost Increas e . The reques t ed $2,181,792 will provi de fundi ng to cover the ex pect ed incre as e in FER S Reti rem ent benefi t s . 3. Non - S al ar y Incr eas es . The reques t ed $1,523,902 provi des ex pect ed infl at i onar y inc reas es fo r space rent al s (GS A and non - GS A faci l i t i es ), p hones , util i t i es , print i ng and reproduct i on servi ces , cont r act ual se r vi ces , and suppl i es . These incre as es ar e devel o ped in accord ance with OMB guidel i nes for proj ect ed infl at i ona r y co st s ( 1.6%). Other Increase Base $16,132,000 1. R eform of the Unive rs al Servi ce Fund Support Progr am : ($10,877,000) This reques t is for funds to support the Comm is s i on’s work to moderni z e and reform the Univers al Servi ce Fund (US F) Support program s . Since 2009, the Comm i s s i on has taken major steps to mode rni z e the four USF suppo r t program s with a part i cul ar emphas i s on improvi ng broadband connect i vi t y nati onwi de . In 2010, the Comm i s s i on undert ook fundam ent al refo rm of th e rur al port i on of the USF pro gram to repurpos e approx i m at el y $4.5 bill i on annual l y to provi de broadband to all Ameri cans , incl udi ng the more than 19 mill i on unserved homes . In 201 1, the Comm i s s i on reform ed the Lif el i ne pro gr a m , which provi des basi c phone s ervi ce to low - i ncom e fami l i es , re al i zi ng cost s avi ngs of mor e than $200 mill i on in the past year and rep urpos i ng a port i on of those savi ngs to init i at e a pilot program to provi de broadb and to low - i ncom e fami l i es . Also in 2011, the Comm i s s i on undert ook re form of the under - ut i l i z ed progr am that provi des broad band connect i vi t y to non- profi t rural he al t h care provi de rs , allowi ng them to real i z e cost savi ngs through incr e as ed use of the telem edi ci ne pro gr am . More resour ces are requ i red to cont i nue the Comm i s s i on’s work to moderni z e USF, impl em ent re form s , inc reas e its overs i ght of th e ne wl y - r eform ed pro gr am s and provi de for crit i cal enforcem ent of the rules . This reques t will support fundi ng for addi t i onal staff incl udi ng, attorne ys , econom i s t s , IT sp eci al i s t s , pro gr a m mana ge rs , and technol ogi s t s . 2. C ont i nui t y of Op erat i on Plan: ($520,000) The Comm i s s i on must provi de fo r its missi on - cri t i cal s yst em s to be re dundant and full y operat i onal in a Cont i nuit y of Ope rat i ons (COOP ) event . The Comm i s s i on has man y (ove r 20) missi on- cri t i cal IT s yst em s and is unde r t a ki ng an on goi n g revi ew of suc h s yst em s , start i ng with the highes t priori t y s yst em s , to determ i ne what acti ons are needed to be full y - 8 - operat i onal in such an event . In the past two ye ars , the FCC has asses s e d two of its most import ant missi on - cri t i cal s yst em s , the Univers al Lic ens i ng S yst em (U LS ) and the Offi ce of Engi ne eri n g and Techno l og y’s Fr equenc y Assi gnm ent S yst em (O FAC S ) . The ULS is an interact i ve licens i n g dat abas e s yst em used to track wirel es s licens es an d to proces s and approve n ew appl i cat i on s , incl udi ng emer genc y appl i cat i ons duri ng disas t ers . This s yst em is used for both comm erci al and publ i c safet y lic e ns es . The ULS enabl es the FCC , publi c safet y frequ enc y coordi n at ors , and the publ i c to effi ci ent l y se ar ch for appl i cat i on and licens e inform at i on. OFAC S is also essent i al for the co nduct of the FCC ’s spe c t rum mana gem ent and coordi nat i on respon s i bi l i t i es . OFAC S enabl es FCC spect rum perso nnel to acces s all major FCC spect rum licens e databas es and to provi de frequen c y assi gnm ent records to the Nati onal Telecom m uni ca t i ons and In form at i on Admi ni s t rat i on (NT IA), o ur prim ar y pa rt ner in the conduct of the Nati on’s spect rum mana gem e nt acti vi t i es . 3. P ubl i c Safet y Answ eri n g Point s (PS AP ) Do Not Call Regi s t r y: ($500,000) Sect i on 6507 of the Middl e Class Tax Reli ef and J ob Creat i on Act of 2012 requi res the FCC to creat e a Do - Not - C al l regi s t r y fo r telephone numbers used b y Publ i c Safet y Answ eri n g Point s (PS AP s ) and to prohi bi t the use of autom at i c dial i ng equi pm ent to cont ac t those numbers . PSAP s are fac i l i t i es that have been desi gnat ed to recei ve em er ge nc y call s and rout e them to emergenc y servi ce personn el . On October 17, 2012, the FCC releas ed a report and order to cr eat e such a re gi s t r y. Und er the stat ut e, veri fi ed PSAP admi ni s t rat ors or mana gers must be able to place i nto the PSAP regi s t r y telep hone numbers that are used for the provi s i on of emer genc y se rvi ces or for comm uni cat i ons bet ween publ i c sa fet y agenc i es . 4. Broadb and Map (Trans f e r from NT IA ): ($3,000,0 00) In FY 2014 and prior fiscal yea rs the Broadb and Map cost s were in cl uded in NT IA ’s appropri at i ons from Con gr es s . Then, NT IA enter ed into reim burs abl e agr eem ent s with th e FCC for the work p erfo r m ed b y the Comm i s s i on staff. In FY 2015, the C omm i s s i on will be full y respons i bl e for th e Broadb and M ap. The moderni z at i on of FCC Form 477 will driv e an evol ut i on of the nati onal broadband map to fur t her improve its util i t y as a key resour ce of broadband depl o ym ent for consum ers , poli c ym a kers , res ear chers , econo m i s t s , and others . The onli ne plat form wi ll levera ge previ ous in ves t m ent s with new ap proaches to open gove rnm ent data, cr eat i n g a robus t and sust ai na bl e onli ne plat form . The ongoi n g cost of these effort s for FY 201 5 will be $3 Mill i on. Th e Comm i s s i on has requ e s t ed $1 m ill i on a s a one - t i m e init i at i ve for the Bro adband M ap. 5. Enforcem ent Bur eau Equ i pm ent : ($625,000) An import ant part of the Enforcem ent Bur eau 's (EB) respons i bi l i t i es is the enfor cem ent of techni cal rules and interf erenc e resol ut i on, part i cu l arl y i n the are as of homel and securi t y and publ i c safet y. Emer gi n g technol o g y is addi ng increas ed compl ex i t y to the resol ut i on of harm ful interfer enc e that affect s both feder al and local governm ent oper at ed publ i c safet y servi ces , and crit i cal infr as t ruct ure. As radi o te c hnol og y evol v es , manuf a ct urers o f test and measurem ent equi pm ent also foll ow those advan c es , and EB's techni c al ca pabi l i t y must also - 9 - keep pa ce with the evol vi ng te chnol og y. 6. FTEs for Inform at i on Te chnol og y Cent e r Support ($610,000) Anal ys i s per f orm ed in 2010 of other agen ci es co mparabl e to the FCC in workfor ce siz e and budget sho wed that su ch or gani z at i ons , on ave ra ge, have 72 FTEs provi d i ng IT support and servi ces . The FCC , in cont ras t , has onl y 37 IT FTEs. Funds ar e reque s t ed to support the hiri ng of 10 new FTEs for FY 2015 to perform i nherent l y gov ernm ent al funct i ons of FCC securi t y, IT proj e ct mana gem ent , and IT cont ract overs i ght and mana gem e nt . This reques t repres ent s a conservat i ve in cre as e, re cogni z i ng th e const r ai nt s of the bud get , and is neces s ar y to m eet the current demand and wor k of the IT offi c e and ad dres s con cerns of under - r es ourci n g this import ant work. Whil e a larger requ es t woul d allow the FCC to perform more effi ci ent l y, even offset t i n g the incr eas ed fundi n g in real i z e d effi ci en ci es and reduced cost s ( su ch as re duci ng the number of co nt ract ors n eeded and b ett er man a gi ng long- t erm inves t m ent ) the FCC will work to leverage this conservat i ve increas e to achi eve such goal s , since, w ithout such increas e, the FCC faces signi fi cant r isk. T he agen c y’s IT workfor ce h as been dras t i cal l y reduc ed in re cent ye ars . The FTEs most likel y to le ave th e agenc y ar e those repres e nt i ng the bulk of the agenc y’ s inst i t ut i onal knowledge base. Without increas ed resour ces in th is crit i cal are a, the FCC faces th e inabi l i t y to on board a suf fi ci ent amount of new talent to enga ge in knowl ed ge tra ns fer from mor e seni or FTEs b efor e those FTEs either reti re or m ove on to other more l ucrat i ve care ers . Loss o f that inst i t ut i onal knowl edge coul d put FC C 's le ga c y IT s yst em s at subst ant i al operat i onal ri sk. New Program Performance Initiatives $13,565,000 1. Commission- wide Information Technology: $12,565,000 During FY 2014, the Comm i s s i on will cont inue the work of cre at i ng a mor e robus t c yb ers e curi t y pro gram and upgradi n g missi on cri t i cal s yst em s . In FY 201 5, the Comm i s s i on will need to inves t addi t i onal resourc es in orde r to sust ai n and buil d upon these ef fort s . IT Storage Expansion ($1.290M): The FCC ne eds to ex pand the tiered enterpri s e stor a ge s olut i on to incl ude off - s i t e ex ternal storage provi ders , lower cost stora ge servers , dist ri but ed file s yst em s , and off - s i t e backup and repl i c at i on technol ogi es . The solut i on will be able to move seam l es s l y and ac ces s data stored in multi pl e locat i ons throug h mult i pl e provi ders without impact i ng the users or busi nes s appl i cat i ons in the Comm i s si on. The s yst em will be scal abl e at all level s and storage locat i ons and will provi de for improved disas t er re cover y and COOP capabi l i t i es . Big Data Cybersecurity Analytics ($700K): Bi g Data C yb er s e curi t y An al yt i cs is appl yi n g big d ata te chnol ogi es to C ybers ecu ri t y . Cur rent b ig d ata te chnol ogi es are seei ng trem endous succes s in soci al medi a , intel l i gence, and mark et i ng indus t ri es . Thes e technol ogi es will mature throu gh the ye ar with accept ance b y the Cyb e rs ecu ri t y comm uni t y in 2015. - 10 - Current big d ata te chnol og y incl udes m assi ve data repos i t ori es , cloud te chn ol og y, and th e use of unst ruct ured data. Bi g Data C ybe rs ecu ri t y Anal yt i cs will be a disrupt i ve technol og y in the C ybers ecuri t y ar ena, as tradi t i onal anal ys i s and forens i cs techni ques will be supers eded b y aut om at i on conveni enc e s that reduc e the burd e n of work on the anal ys t . Big data will becom e a plat form for ne w methods of anal ys i s . This will great l y incr eas e the Comm is s i on’s abil i t i es to perform Root Cause Anal ys i s . One ex am pl e of such anal ys i s is the revers e en gi neeri n g of malware on comput er networks . Current techni ques us e a vari et y of me chani s m s to reass em bl e, ex port , quant i f y, and an al yz e behavi or of malwa re. Pendi ng capabi l i t y and skil l set, this task can take we eks to per form , as it invol ves a number of anal ys i s steps to retri ev e a call gr aph of malw ar e ex ecut i on f ro m a disas s em bl er. Bi g Data C ybe rs ecu ri t y Anal yt i c s will present opti ons t hat autom at e this capabi l i t y, reduc e the anal ys t burden, and imp rove the abil i t y to quickl y pe rform this fun ct i on. Cybersecurity Authorization, Admission & Education ($800K): Authori z at i on & Admi s s i on is going to be an evol vi ng con cern as appl i cat i on s like Virt ual Deskt op In fras t ruct ur e ( VD I ) are inst al l ed onto our n etworks . This chal l en ge is simi l ar to th ose we face with ph ysi c al network acces s . Inst ead of worr yi n g about un a ut hori z ed comput ers being atta ched to the ph ysi cal n etwork, or gan i z at i ons must be concer ned with virt ual comput ers . These virt ual comput ers must be autho ri z ed before the y m a y be admi t t ed to the network encl ave. A curr ent ch al l en ge or gani z at i ons have solved is network acc es s co nt rol for ph ysi cal comput ers . A favori t e ta ct i c of audi t ors is to sne ak a comput i n g devi c e into a buil di ng and plug it into the network. The y us e this to gai n unfet t ered ac ces s to net work resour ces and demons t rat e that thei r client ’s network is vulner abl e to attack. This has been solved most recent l y with netwo rk acces s cont rol te chnol o gi es that probe ne w devi c es to make ce rt ai n the y mat ch network requ i rem ent s . With virt ual i z at i on comes new ch al l en ges . No w comput ers can spa wn withi n the n etwork and on comput ers alre ad y conn ect ed to the netw ork. At this point , the comput ers alread y ha ve acc es s to th e netwo rk. Authori z at i on and ad mi s s i on technol og y for v irt ual comput ers is requi red to prev ent this from happeni n g. Appl i c a t i ons must be authori z ed to acc es s network resourc es . This prevent s attacks anal o gous to the ph ysi c al comput er. Trust ed operat i n g s yst em s hav e this as a limi t ed capabi l i t y, but this must be ex panded to incl ude networks . As technol o g y cont i nues to evol ve, it is becom i ng mor e import ant for t he av era ge use r to unders t and C yb ers e curi t y and the steps neces s ar y to prot ect FCC data. As the FCC moves into a new ar ea of VD I and Brin g You r Own De vi ce (BYOD ), the Comm i s s i on opens itsel f to vulnerabi l i t i es that can be best thwart ed b y good us er educat i on of Securi t y Best Pract i ces . Cybersecurity Metrics Program ($575K): Th e FCC has init i at ed planni n g effo rt s to coll e ct and anal yz e mont hl y metri cs relat ed to the cyb ers e curi t y thre at s ad dres s ed usin g dat a obtai ned from comm er ci al sourc es . Fo r ex am pl e, metri cs such as th e number o f bot infect i ons acros s an ISP ’s cust om er base will be provi ded to C ybers ecuri t y and - 11 - Communi cat i ons Reli abi l i t y Divi s i on ( CC R D ) for an al ys i s and b asel i ne tra cki ng. Onc e effe ct i ve metri cs be gi n to be volunt ari l y repo rt ed in FY14, the FCC will impl em ent a C ybers ecuri t y Dashboar d to track the comm e rc i al l y - obt ai ned d ata to su pport the anal ys i s proces s . The C ybe rs ecu ri t y Dashbo ard will hel p the FCC track the on goi n g pro gr es s of cyb ers e curi t y init i at i ves . Modernization of Aging IT Systems (9.2M): Abou t 40% of the FCC 's appl icat i on port fol i o is more than 10 ye ars ol d, and 70% of the IT port fol i o depends on depreci at ed, le ga c y technol ogi es . FCC is maki ng signi fi cant inves t m ent s in FY14 in a modul ar, modern, open standardi z ed comput i ng plat form that allows reusabi l i t y of I T modul e s acros s the FCC Bure aus and Of fi ces where approp ri at e. In FY15, the FCC se eks to moderni z e the appl i cat i on envi ronm ent via bott om - up, modul ar archi t ect u re approa ch to a cu rrent , s ecur e, open- s ourc e based, and cloud- fri endl y fr am ework that is sign i fi cant l y mo r e mana ge abl e and sust ai nabl e and consi s t e nt with this modul ar, modern plat form . Modul a r moderni z at i on of legac y s yst em s will redu ce maint en anc e and lon g - t erm support cost s of the port fol i o, enabl e signi fi cant appl i cat i on consol i dat i on, improve securi t y cont rol s , enabl e the Comm i s s i on to move appl i cat i ons to an ex ternal cloud or host , and reduce the risk of a crit i cal legac y s yst em fail ure duri n g a nati onal spect rum auct i on. This bott om s - up, modular moderni z at i on ef fort also will signi fi cant l y red uce/ enabl e closur e of open FIS M A findi ngs , make ongoi n g remedi at i on effort s more effi ci ent , reduce the risk of cyb er - ex pl oi t s on aged infras t ruct ur e, and gr eat l y improve the agenc y’s comput er secu ri t y post ure. The modul ar ap proach will focus on smal l er IT modul es that ca n be reused. The modul ar appro ach will also incorporat e improvem ent s that save time, save mone y, o r reduc e the number of workers re qui red to carr y out the work flows of the differ ent FCC Bureaus and Offi ces . Without this modul ar moderni z at i on ef fort , FCC le ga c y appl i c at i on support and maint enance cost s will cont i nue to incre as e at a much hi gher rate th an is sust ai nabl e, as support and maint enanc e for outdat ed technol o gi es b ecom es mor e diff i cul t to locat e and more cost l y to pro cur e. 2. Bureaus and Office s: $1,000,000 Broadband Map ($1.0M): The mod erni z at i on of FCC Form 477 will drive an evol ut i on o f the nati onal bro adband map to furt he r improve its util i t y as a ke y reso urce o f bro adband depl o ym ent fo r consum ers , poli c ym akers , resea rchers , econom i s t s , and others . The onli ne plat form will lever a ge pr evi ous inves t m ent s with new appro ach es to open gove rnm ent data , to creat e a robus t and su st ai nabl e onli ne plat form . A one - t i m e cost of $1 Mill i on is requi red in order to accom m odat e the increas e in data co ll ect ed under Fo rm 477, improve acces s to the publ i c , and provi d e long - t e rm stabi l i t y fo r t he nati onal bro adband map; to accom pl i s h this , an inves t m ent in progr am m i ng cod e, soft wa re licens i n g, and cloud s ervi ce ex pans i on i s requi red. Th e Comm i s s ion reques t ed $3 Mill i on as a base in cre as e fo r the Broadb and Map. - 12 -