DHS contract spending set to grow.

The Department of Homeland Security is one of the few federal agencies increasing the amount of money it obligates to contractors, according to a recent report by market analysis firm Govini.

The growth is due to overall budget increases and the allocation of a larger share to contracts, said the report, "2017 Fiscal Year Outlook: Department of Homeland Security."

The department's discretionary budget authority increased 3 percent from fiscal year 2015 to 2016, from $39.8 billion to $41 billion. Additionally, the share of funds allocated to contracts increased to 36 percent from 35 percent.

"The topline trend means that DHS is prioritizing purchases of products and services over additional personnel and other internal resources," the report said.

The department is seeking to develop next-generation systems that leverage advancements in the "internet of tilings," digital transformation, data analytics and cybersecurity, it said. "These investments are intended to fill capability gaps, automate procedures that currently present security risk and bring about operating efficiency all while lowering personnel costs."

Customs and Border Protection, the Transportation Security Administration and the Office of Procurement Operations fueled a 16 percent increase in overall DHS contract obligations to $14.6 billion in fiscal year 2016, a $2 billion bump from 2013, the report noted.

Obligations from each agency are projected to continue to increase by at least 3 percent in 2017, it said.

"Providers of advanced technology and...