Note: This is a guest blog post by Kay Ely, Deputy Assistant Commissioner, Integrated Technology Services.
ITS prides itself on providing federal agencies with IT solutions at the best value through the smoothest possible buying process. The recent addition of a new approach to buying hardware, the Governmentwide Strategic Solutions (GSS) for laptops and desktops, is a prime example of how several agencies worked together with our partners across government and industry to improve the buying process and at the same time get better prices for federal, state and local governments.
As govvies, we depend on laptops and desktops every day to get our work done and the amount we spend on computers proves it. Every year the federal government spends more than $1 billion to ensure that we have the critical equipment to do our jobs. 80 percent of that is spent on the same equipment from the same companies across thousands of contracts, with little visibility from one agency to the next as to what price is being paid. We knew there had to be a better way.
By working closely with agencies and industry partners an innovative approach was developed for acquiring the best equipment at the best price. To put it simply, standardizing requirements, and buying collectively – this is the “Governmentwide Approach”.
How’d we accomplished this?
Using a category management approach, IT Schedule 70 conducted a reverse auction to support the Office of Management and Budget’s recent GSS Laptop/Desktop buying events.
Thirty-six agency representatives attended these buying events to learn more about their computer purchasing options and five agencies have already collectively estimated intent to buy 56,000 laptops and desktops – this “acting as one” approach drove prices down by an average of 16 percent. And that is one good example! The GSS team plans to conduct buying events on a bi-annual basis moving forward.
To participate, suppliers submitted their initial quotes for six optimized configurations (three laptop and three desktop) to GSA via eBuy. Those who were rated technically acceptable were invited to participate in the pricing phase through the GSA Reverse Auction platform. Impress Technologies Solutions Inc. (Dell), ABM Federal Sales (Hewlett-Packard), and NCS Technologies Inc. (Lenovo) were awarded those contracts.
To make it easy for more agencies to benefit from this, we have been hosting Government-wide Strategic Solutions for Desktops and Laptops Buying Event Office Hours – informational sessions with agencies to explain the category management principles applied, the configurations and how to easily place orders.
Better Buying for the Future
Using this program, the U.S. Holocaust Memorial Museum has already placed an order for $230,845 which included 100 laptops and 125 desktops. This new pricing enabled the Museum to maximize their budget and get an additional 55 computers that they otherwise couldn’t have. Overall, this came to a savings, against the old pricing, of nearly $75K.
This is the first time that the government has bought laptops and desktops in this way. It’s a great example of category management at work — government and industry worked together, saving U.S. taxpayers an initial $8 million governmentwide, with additional savings to come as more agencies leverage these contracts.
By using this program, your agency could save up to 27 percent off the GSA standard pricing. Of course, the actual savings are going to vary from item to item, but overall this is very good for government. We’re encouraged by the initial success of this program. As we near the end of the fiscal year, government agencies can benefit greatly from the lower pricing to get the best value possible for their dollars spent.