Part of GSA’s mission is to help the government save money on the goods and services federal agencies use as they work to meet their missions. Most people think about GSA as the owner of federal buildings, manager of the federal fleet, or even the agency that provides the government with computers and office supplies. But one of the biggest money-saving programs at GSA is Networx, which is focused on leveraging our government’s telecommunications and network service purchases to get the best deal possible.
In fact, GSA’s Networx program helped federal agencies save American taxpayers more than $678 million in 2013 on telecommunication services. This is an average savings of 35 percent off regular prices, demonstrating the results GSA can get for taxpayers when it works with federal agencies to consolidate purchases and leverage the buying power of government.
Networx is a series of contracts, set up and managed by GSA, and used by the federal government to buy most network services. Agencies use Networx to buy everything from toll-free numbers to complex agency-wide networks for voice, data, and video services. These networks allow agencies to conduct day-to-day operations, provide access for citizen services, and continue operations during emergencies.
Rather than each federal agency reinventing the wheel by negotiating hundreds of separate contracts for common telecommunications services, Networx provides a single purchase method that drives big savings and big efficiency. In 2013, federal agencies purchased more than $1.3 billion in services from suppliers like AT&T, CenturyLink, Level 3, Sprint, and Verizon.
Through Networx, federal agencies are also getting more for their money by receiving expanded services at much lower prices. Since 2007, government use of telecom and network services has increased 800 percent; but thanks to GSA Networx, the total cost for all those services has only increased by 43 percent.
The Networx program also makes it easier for federal agencies to modernize operations and keep pace with advances in technology. Federal agencies are buying higher-capacity, cost-effective, and flexible services through Networx. With these services, rather than being tied to a desk and desk phone, federal employees now have access to information wherever they are through services like video chat, virtual private networks, and web conferencing. This can lower costs in areas like real estate, while maintaining or even increasing productivity.
And, beyond the great services available through Networx, GSA provides business support services to manage millions of billing and inventory records in a centralized system. Rather than having over 100 federal agencies build and maintain their own billing systems, we provide a single system for every agency that uses Networx, saving taxpayers money and giving agencies an efficient tool to help them manage their expenses.
As we move into 2014, we look forward to continuing to providing millions of dollars in additional savings to the American taxpayers through Networx. Visit the Networx website for more information.