Category: Telecommunications

Posted on

Networx Buying, IP Services, and Ethernet Migration Grow in FY 2015

For this Great Government through Technology Blog post, we welcome special guest author Bill Lewis, the Program Manager for GSA’s Networx program.

Most federal agencies continue to purchase network services through GSA’s Networx telecommunications program. Federal communications purchasing in the first half of FY 2015 shows that Networx continues to be a stable program with steady growth driven by demand for bandwidth. Overall, purchasing for network services on Networx exceeded $820M in the first half of the fiscal year, a 7.6% increase over the same period last year.

Like our last telecommunications insight blog, we wanted to explore and dive into some interesting trends we’ve seen in our Networx program. These purchases–and their associated trends–are also helping us shape the next-generation Enterprise Infrastructure Solutions (EIS) contract, which GSA intends to have ready for government-wide use in 2017.

Internet Protocol Services Sales Dominate

Twenty years ago, more than 70% of federal purchases were voice related — either long distance voice or toll-free services. Unsurprisingly, today less than 10% of the purchases are voice-related services. Most of us have seen this same trend in our personal buying.  

Today, the bulk of services purchased are Internet Protocol (IP)-based services. Sixty percent of federal spending on Networx  is Network Based IP Virtual Private Networks (NBIPVPN) and management of these services. In the first half of FY2015, NBIPVPN purchasing is up 14% and purchasing services to manage this bandwidth is up 12%.

Purchase trends for various Networx services are shown below.

 Networx Service Type  Purchase Volume (FY15 First Half)  Percentage Change (First Half, FY14-FY15)
 Network Based IP Virtual Private Network Bandwidth  $391.1M  14%
 Managed Network Services  $102.0M  12%
 Toll Free Services  $64.4M   -10%
 IP Services (External Bandwidth)  $28.5M   8%
 Long Distance Voice Servies  $19.8M   -6%

 

Migration to Ethernet Technology

In terms of networking technologies, federal wireline purchasing is clearly migrating away from the traditional digital signal hierarchy towards native Ethernet.

The bulk of the federal inventory of bandwidth is still around the traditional DS-1, Digital Signal Hierarchy Level 1, which is a 1.5Mbps service. But in the past five years, the number of DS-1s in the federal inventory has shrunk nearly 4% annually. And number of “sub-rate” DS-1s (circuits with less than 1.5Mbps) has shrunk over 6% annually over the same period.  

Many of us have more bandwidth going into our homes than a DS-1, so it’s no surprise federal agencies are demanding more bandwidth as well. We rely more on applications stored in remote data centers or the cloud as we use more video, and rely on other services around unified communications.

We’ve seen some migration towards 45Mbps services, a “DS-3”, where growth was up 21% over the past five years. Now the trend is slowing, as evidenced by DS-3 growth only up 8% through the first half of this year. This slowdown is expected since DS-1s and DS-3s are legacy services originally designed for Time Division Multiplexing (TDM) equipment and voice-dominated networks.  

Because Ethernet services are designed for networks dominated by IP-based data rather than voice, Ethernet growth is higher as shown below for the past five years.

 Ethernet Purchasing off Networx  5-Year Annual Compound Rate
 10 Mbps Ethernet  138%
 100 Mbps Ethernet  78%
 1 Gbps Ethernet  60%

 

Shaping EIS and Preparing for Transition

Networx purchase data has driven some of the requirements for GSA’s EIS contract, which is in its final stages of development. For example, Ethernet will be a required service under EIS. But we haven’t developed EIS requirements in a vacuum by simply looking at historical purchase data.  

This spring and summer, we held three information exchange days with industry. These were well-attended, lively events, with over 150 participants in each session. In addition, we have been in frequent contact with government agencies and industry in other forums and individually to shape EIS.  

Over the next year, we will go through the acquisition process on EIS. At the same time, we are preparing for the transition from Networx and our regional telecommunications contracts to EIS.  As you know, we are extending the Networx contracts three years to 2020 to give agencies time to transition to EIS.  Four of the five Networx suppliers have submitted modification extension proposals.

We are also extending many of our local service agreements, including the Washington Interagency Telecommunications Contract 3 (WITS 3), to 2020. We are also working with agencies to develop transition plans and examine inventories of telecommunications services, both essential steps to a timely transition. Agencies will transition all telecom services, including secure Internet and data services as well as voice and toll-free services.
Please check out and register on our Interact site for status updates on EIS and our transition efforts. And be sure to follow ITS on Twitter @GSA_ITS for updates on all GSA’s IT offerings.

Posted on

IT Acquisition Best Practices & Dispelling Myths

In June, I read a great open letter from Susan M. Gordon, Deputy Director of the National Geospatial-Intelligence Agency, that explained how to make sure we’re doing the best we can to get technology and related services to help us meet our missions.

This blog post is an open letter follow-up with seven best practices for agencies acquiring mission enhancing IT solutions such as software, hardware, telecommunications, cybersecurity, cloud, satellite, mobile, and other IT. These tips should help dispel some common myths.

  1. Make Market Research Personal – Don’t assume market research on paper and the Internet gives you the full picture. You’ll need to talk to experts each time you need an acquisition. Talk to industry, other agencies with similar requirements, and GSA. We administer many government-wide shared IT acquisition contracts. Check out the government’s open and independent resource – the Government Acquisition Gateway and hallways – as a starting point. You’ll find white papers, best practices, potential and existing contracts from GSA and other sources, and community discussion groups where you can ask questions and talk with other agencies.
  2. Always Talk to GSA – Each time you need IT, talk to us about pre-established contracts that might work well for you. It won’t take a lot of time to talk to us – we can use video conferencing or visit you in person. Contact a GSA Customer Service Director in your area to schedule a meeting. In addition to contract vehicles, GSA may be able to share an agency contact with you that recently addressed the same challenges and perhaps developed a best practice in the process. Even if you don’t have a live requirement at the moment, using GSA as a resource for strategic ongoing market research will make for better, well-educated, future buying decisions.
  3. Let Go of Preconceived Judgments – Some people have predetermined notions of many of the pre-established contracts. Letting go of preconceived judgments opens the door to finding the best solutions. For example, you may be surprised to learn how much control you have while using pre-established vehicles, and you may be amazed to find you can often and easily obtain lower pricing through additional negotiations than published, list prices.
  4. Know that Things Change – Don’t think that the government-wide contract you or your contractor checked a year ago is still the same. GSA and other agencies continuously refresh shared contracts and make them more user-centric every day. We’re talking more to government and industry. We constantly seek input on what agencies need today and what industry can offer. We are evolving contracts to meet those needs. For example, this year we’ve added a Cloud SIN to IT Schedule 70 to help agencies find their best cloud solutions easier than ever before. Even though a contract didn’t meet every need in the past doesn’t mean today’s options won’t be your best choices. The GSA of today is not the GSA of yesterday.
  5. Dig Further – If you have an industry partner working with you on market research and acquisition planning who recommends you go open source rather than use an existing contract, do you stop there? As a best practice, don’t. Keep in mind that in-house advisors have more involvement and financial benefit in doing steps required for open-source acquisitions, while pre-established contracts have those steps already completed. For example, if you have a contractor doing market research who recommends going open market for commercial satellite services, consider instead that GSA’s Custom SATCOM (CS2) and CS2-SB contracts have vetted partners and solutions without the overhead and cost of creating an entirely new contract. And remember to evaluate advisor recommendations to ensure they don’t steer toward a specific contract because they’re on it.
  6. Look for Efficiencies – Agencies who use existing contract vehicles with the IDIQ Fair Opportunity process or Multiple Award Contract/Blanket Purchase Agreements (BPAs) save months in acquisition lead time. Why? Because many of the initial steps and approvals required to establish a full stand-alone procurement action, including pre-qualifying industry partners,  have already been done for you. Having to find and qualify contractors can add six months or more to the procurement process.
  7. Lower Agency and Taxpayer Costs – Government-wide contracts can achieve cost savings because multiple agencies are already using them, increasing volume buying from government to industry partners and driving competition to lower costs. I did a recent blog post, for example, about the FSSI Wireless BPAs and how they’re saving agencies on average 27% over what they had been spending on wireless services and devices. Start at the published contract pricing, but always request discounts and lower pricing. Whether you get discounts in initial years or option years, your actual cost will be lower than the initial cost evaluation.

The ultimate motivator and driver for all of us in public service isn’t what we perceive or think is best, but what we find after due diligence is really best for our missions and the American taxpayers.

If you chose not to use GSA for an IT acquisition, it’s ok. But a fresh conversation with GSA should always be part of the equation.

Please follow us on Twitter @GSA_ITS to join the conversation.

Posted on

FSSI Wireless Averages 27% Savings for Agencies

Officials from a number of agencies shared their success stories on June 8 about how they’ve implemented the Federal Strategic Sourcing Initiative (FSSI) Wireless BPAs to save money, averaging between 27% to 40% in cost savings from their previous wireless spend.

The Enterprise Mobility Program Workshop held at GSA’s 1800 F Street office was attended by agency representatives from across the government anxious to hear how they can save time and money managing their agency’s wireless programs. Attendees heard a thorough explanation of GSA’s Enterprise Mobility Program from agencies that have already made the switch, including helpful tips, strategies, and best practices for moving to FSSI Wireless BPAs.

Adoption is strong with 86% of cabinet level agencies now using the Wireless BPAs to cut dollars from their agency wireless spend and achieve pricing that now averages $39.77/month per user.

DOD, DHS, HHS, SBA, DOT, VA, FCC, MDA, SSA, DOI, and many others have executed successfully against the BPAs, and as a result have been saving their agencies – and U.S. taxpayers – money.

An online webinar is also planned Tuesday, July 21 for agency participants. Register for the event today!

You can also click on the link below to view a video of my remarks from the June 8 Enterprise Mobility live event. In it, I provide an overview of the current FSSI Wireless program and discuss how an enterprise approach to mobility generates savings and better management.

View the video on YouTube.

Please follow us on Twitter @GSA_ITS to join the conversation.

Posted on

Regional Telecom Extensions Underway

Federal government agencies largely order their telecommunications through GSA’s Networx telecommunications program or through our Regional Local Service Agreements (LSAs) for local telecommunications.

As announced in March, we are extending the period of performance for the Network Universal and Enterprise contracts from 2017 to 2020.

We are currently working with our industry suppliers to extend the LSAs, including the Washington Interagency Telecommunications System (WITS) 3 contract in the metropolitan DC area.

In addition, we are working closely with our federal agency partners to begin rigorous transition planning and preparation. These extensions will allow agencies time to develop requirements and evaluate and implement solutions using the follow-on Enterprise Infrastructure Solutions (EIS) contract and/or other contracts in the GSA ITS portfolio.

As part of our overall NS2020 strategy, we will also be incorporating services currently available on our regional LSAs into EIS, eliminating the need for many duplicative contracts.  To bring these two programs together and minimize transition time, cost and risk, GSA will extend those LSAs expiring earlier than 2020 to coincide with the Networx contract extensions to 2020.

No Longer Pursuing RIS

GSA originally looked at a Regional Infrastructure Solutions (RIS) strategy to extend service for the expiring Regional LSAs by consolidating acquisitions and awarding interim contracts to provide service continuity until the competitive awards of EIS were made.

That approach would involve three larger geographic interim solutions: Northeast Infrastructure Solutions (NIS), Western Infrastructure Solutions (WIS), and Central Infrastructure Solutions (CIS).

However, in looking further at the approach, we found the schedules for the EIS and RIS procurements began to run parallel, and we questioned the purpose and cost effectiveness of separate RIS acquisitions. Industry partners and agencies were also concerned about RIS running in parallel with EIS and the additional acquisition investments the approach would have required.

GSA found eliminating the RIS acquisitions could achieve significant savings for industry and government and avoid unnecessary duplication and transitions.

Focusing on EIS

With our full focus now on EIS, we have a lot of information to share with you. And we’re also hoping you’ll continue to share your input with GSA as we work to finalize the EIS requirements.  To facilitate the sharing of information, we created the new EIS Interact Community and created a series of Information Exchange Days. Register now for the last Information Exchange Day on June 30.

Please follow us on Twitter @GSA_ITS to hear more about EIS and to join GSA’s ITS’s overall acquisition conversations.

Posted on

EIS Takes Big Steps to Collaborate

It’s April. It’s Spring. And, it’s the time of year when we do spring cleaning to revitalize our lawns, clean messy garages, and refresh our winter-weary homes.

It’s also a great time to kick off a series of live GSA Enterprise Infrastructure Solutions (EIS) “Information Exchange” sessions with industry and launch a new EIS interactive online community for federal government agencies and potential industry partners.

EIS is the main component of the Network Services 2020 (NS2020) Strategy. It will replace GSA’s Networx and regional and local contracts, which many agencies currently use to acquire best-value IT, telecom, and infrastructure. Agencies will start to transition in 2017.

Attend Information Exchange Days

We issued an EIS Draft Request for Proposal (RFP) in February. Our partners in government and industry responded with more than 1,500 comments on the Draft RFP. We’re excited about the amount of interest in the Draft RFP and we’re looking forward to good, constructive conversations.

We’ll continue this productive dialog during “information exchange” days before we issue the RFP.  These “information exchange” sessions are open to government and industry and will take place on April 27, May 28 and June 30.

The information exchange sessions will give government and industry a chance to talk about the upcoming RFP and discuss common themes, insights, and issues. Stay tuned to the EIS Interact Community for how to register for the remaining sessions. Space is limited.

Join EIS Interact Community

To make EIS a success, we must ensure continuous collaboration and feedback. The EIS Interact community opened on April 17. This open forum is for GSA, agencies, and industry to continually collaborate and share ideas.

The EIS transition planning process, for example, has started. In order to be successful, we need to share insights and lessons learned. On the Interact community, we can jointly share transition insights and lessons to add value for every agency and make government-wide transitioning smoother overall.

How valuable the open forum will be depends on the value of member contributions. When we share good generic tips, ideas, and helpful insights, we serve our shared needs.

For any non-public discussions, including those related to proprietary information, you should use the EIS mailbox, which is EIS.Mailbox@gsa.gov.

To join the Interact community, visit the site to become a member. You will have access to community postings, including from GSA, and can participate, share and receive helpful information via the discussions.

Collaboration is Shaping EIS from the Start

These efforts mark the next logical steps in our continued emphasis on EIS collaboration.

Government and industry working together has been part of the EIS acquisition effort from day one. This is vital to ensure federal agency needs are met and industry partners have input early into the contract.

Our first step was to gather feedback and input on lessons learned from current contracts and past telecom transitions.

We’ve issued Requests for Information (RFIs) and posted a Draft Request for Proposal (RFP) on FBO.gov to gather EIS input and recommendations from stakeholders and share the planned EIS approach.

We continue to work in partnership with government agencies and industry partners, such as with one-on-one meetings, working groups, advisory panels, and by participating at other government and industry events.

This Spring marks a new season in collaboration. We encourage you to join the EIS Interact Community and come to information exchange days. Let’s keep moving in the right direction together!

If you need help or information on GSA’s EIS acquisition, go to our EIS Webpage.

And don’t forget to follow us on Twitter @GSA_ITS to join GSA’s IT acquisition conversation.

Posted on

Connecting with ITS

If  you’re a regular reader of the ITS blog, you already know that we provide the government IT and acquisition communities with private-sector solutions for everything from simple IT commodities to complex infrastructure and emerging technology. Now, we’ve made it even easier for government buyers and our industry partners to get the information they need, whether it’s acquisition assistance or information about the latest telecommunications and technology initiatives: just visit gsa.gov/technology to connect with us.

gsa.gov/itshelp also provides access to statement of work (SOW) templates, ordering guides, ordering systems and the other tools government buyers need to get the job done, including the IT Solutions Navigator, a self guided decision tool that can point you to the contract vehicle that best meets your IT needs.

Check out what’s new  — The Acquisition Gateway

Among the challenges facing acquisition professionals when purchasing products and services is understanding how individual submarkets approach pricing and offerings, and what contracts already exist government wide to support acquisition of these services.

To address this need, GSA has turned to category management to reinvent acquisition, a tactic already used to help many Fortune 500 companies buy smarter. Work is now underway to develop the new Common Acquisition Platform (CAP), which will provide access and insights into transactional data from across government and help guide buyers through every step of the full acquisition process to include shared best practices from industry experts and thought leaders alike. CAP will also reduce the need for maintaining redundant and duplicative acquisition vehicles, systems and tools.

GSA has also launched the Acquisition Gateway, a space for acquisition professionals to  learn, connect, and act upon acquisition information, expertise, and advice.  Content on the Acquisition Gateway is divided into product and service category hallways and resources.

The IT category already has two active hallways, IT Hardware and IT Software, providing pricing tools and information, sample SOWs, best practices, and expert articles relative to that specific category for contract solutions across government. The Acquisition Gateway will be an important tool in supporting and improving how the federal community acquires IT.

By May 2015, additional hallways will be launched for Telecommunications, IT Security, IT Consulting, and IT Outsourcing, in addition to other categories outside of IT.

This is an exciting time to be a part of IT acquisition and I’ll have much more to discuss in June, but in the meantime, I recommend all government employees access the Acquisition Gateway.  Check back often as this is an agile platform that is expected to grow as its user base increases and becomes more collaborative.

Resolving Your Issues

Our goal is to resolve your issues within 48 hours and, even though federal acquisition can get complex, we’re doing quite well.

ITS FY15 Case Origin – How Customers /Vendors Reach Out to NCSC Number of FY15 Cases (Issues / Inquiries) Average Case Resolution Time Percentage of Cases Closed Within 48 Hours
Phone 693 36 Hours 85%
E-mail Inquiry 405 42 Hours 82%
Live Chat 244 34 Hours 87%
FY15 Total 1,342 38 Hours 84%

 

Stay Tuned

Getting updates on gsa.gov pages is an easy way for agencies and Industry to stay up to date on contract and program features, innovations, and changes.

For example, when GSA updates the free downloadable SOW templates on our website, you can receive an alert to let you they’re available.

You can subscribe to updates for a wide range of topics, including Technology and Telecommunications, Schedule 70, and Cloud IT Services. Just go to Get Updates, enter your email address, select your interests, set any preferences you prefer (including how often you’d like to receive alerts), and you’re ready to go. It’s that simple.  Of course, we’ll continue to share news “as it happens” on this blog.

And don’t forget to follow us on Twitter @GSA_ITS to join GSA’s IT acquisition conversation.

We Value Your Feedback

Our goal is simple: provide the support agency buyers and Industry partners need. Receiving feedback at every stage of the journey is critical to continuous improvement, driving value, and outstanding customer service. GSA already reaches out to agencies and vendors when we’re shaping specific programs, receives continuous feedback from customer and industry groups, and looks at our impact through our customer and vendor satisfaction surveys. You can find “Rate This Page”on the bottom right of our IT webpages.

Please help us to help you meet your IT acquisition needs by using the “Rate This Page” tool to fill out this form. It will just take a few seconds, but the information you provide about what’s working well and what’s not is invaluable.

Posted on

Big News for Govt Telecom, IT, Infrastructure

GSA is taking two key steps in our efforts to establish the future acquisition contract for government-wide IT, infrastructure, and telecommunications.

  1. On February 28 we issued a draft Request for Proposal (RFP) for the Enterprise Infrastructure Solutions (EIS) contracts. EIS will be the follow-on contract vehicle to the existing heavily-used government-wide Networx and regional telecom contracts.
  2. We are beginning discussions with current Networx contractors for three-year extensions to existing Networx Universal and Enterprise contracts. Originally set to expire in March and May 2017, the contracts will expire in March 2020 and in May 2020.

Our goals with EIS are:

  • Simplify the process of acquiring information technology and telecommunications products and services
  • Provide cost savings through aggregated volume buying and price and spend visibility
  • Enable the procurement of integrated enterprise-wide solutions
  • Foster competition and promote participation by small businesses
  • Offer a flexible and agile suite of services that supports a range of government purchasing patterns

Give Us Your Input on the Draft RFP

The draft RFP comes after significant and extensive industry and agency engagement.  We are encouraging comments and suggestions from both industry and government to help us finalize and further shape our program and contract.  We are extremely interested in ideas that will streamline the requirements for, or result in, an expedited transition and allow agencies and industry to transition to EIS in a timely and efficient manner.

The deadline for comments for this draft RFP is March 31, 2015. You can send feedback and comments to EIS.mailbox@gsa.gov.

Next steps will include:

  •  Continue to work with industry and agencies to implement ongoing Networx and regional efficiencies
  • Review draft EIS RFP feedback and make changes when it makes sense
  • Schedule an industry day to go over the draft RFP and updates
  • Issue the final EIS RFP in July 2015
  • Work with agencies and industry in transition planning for Networx and expiring regional contracts prior to award of EIS; in fact, GSA has already begun inventory analysis and validation on all expiring contracts
  • Target award of EIS contracts and issue Notification To Proceed to successful offerors by January 2017
  • Plan for agencies to start transition from Networx and regional contracts to EIS in 2017
  • Complete transition of Networx and regional customers to EIS no later than May 2020

Networx Extensions: Next Steps

Today, most federal agencies purchase network services through the Networx telecommunications program.  In FY 2014, Networx business volume was $1.5B.

The Networx 3-year contract extensions are designed to provide time for a phased and orderly transition to EIS.

We are working with existing Networx Universal and Enterprise contractors to complete the modifications to extend the contracts so they will be available in parallel with the EIS contracts for three years after the EIS award.

The Networx extensions will simplify and make the transition easier by ensuring agencies uninterrupted existing services during this time.  GSA is increasing staffing and support to provide agencies with requirements development, acquisition assistance, and transition assistance.

Staggered agency implementation across government will support strategic deployment of GSA’s and contractors’ resources and expertise to assist agencies.

The three-year extension and transition period will also give agencies flexibility as they balance internal resources between transition activities and other agency priorities.

The EIS acquisition, along with the Networx extensions, are the cornerstones of the NS2020 strategy, which is designed to lower the cost of providing network services and improve acquisition efficiency.

Finally, we are continuing to take a close look at the best ways to continue services provided through existing regional contracts, including WITS 3, prior to also transitioning those services to EIS.

Remember to send feedback and comments on the draft RFP by March 31, 2015 to EIS.mailbox@gsa.gov. If you have any other questions about EIS, the draft RFP, or Networx extensions, check out our Need Help webpage for the ways you can contact us.

Posted on

FY 2014 Delivers Enterprise Growth in Wireless

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY14. Read previous posts at http://gsablogs.gsa.gov/technology/)

As we all know, the explosion in demand for wireless and mobile services is continuing at a pace hard to keep up with. And with that popularity comes government’s continuing need to find ways to exploit those technologies while simultaneously saving money and increasing acquisition and operational efficiencies.

In FY 2014, we saw agencies increasingly turn to GSA’s Federal Strategic Sourcing Initiative (FSSI) Wireless Blanket Purchase Agreements (BPAs). Initially launched in the second half of FY 2013, the BPAs experienced substantial growth in FY 2014, with multiple enterprise level buys (greater than 2,500 units) awarded and task order-level competition yielding very competitive rates and cost savings for most federal users.

Since June 2014, month over month program growth exceeded 30%. Additional awards are anticipated in early FY 2015 increasing agency usage and savings (>20%) for the foreseeable future.

Cost Savings, Choice, and Efficiency

The growing demand of the FSSI Wireless solution is largely due to the >22% cost savings they deliver and the flexible features they offer (including no-charge refreshable devices, open market premium devices, agency-level pooling to reduce overage costs, and adherence to federal policies and administrative priorities). The achieved savings by participating agencies is compared to their prior rates or government-wide average and not list prices.

FSSI Wireless BPA task order competitions have driven rates lower from the award value to rates as low as $42, $40, $38, and $36 per user per month for many common smartphone plans.

This competition lowered the average monthly rate across all federal mobile users to approximately $40 per user. The prior average rate across government based on the contracts we reviewed was nearly $55, which was comprised primarily of devices with limited data capabilities. This means the FSSI Wireless BPAs are producing considerable additional savings for agencies as they deploy devices with a much greater data-intensive footprint.

The BPAs have the added advantage they include government-wide discounts that apply as government-wide usage increases, which adds even greater value.

The more agencies use the BPAs, the greater the current and future cost savings for the government and taxpayers.

Initial savings are through the discounted wireless plan pricing and no-cost devices. Two of the four carriers on contract have committed that the BPA prices are the lowest they offer government buyers.  In addition, agencies can see the published prices on all the BPAs in a single place.

In addition, the pooling option for data and minutes are saving agency dollars by allowing high-volume users to leverage the unused minutes and MBs purchased by lower volume users, further reducing overage costs.

Savings came in acquisition efficiencies too. In the past year, some agencies procured services from the BPAs in as little as 3-5 days.  One agency procured 3500-plus devices in less than two months and indicated they could have executed the order in less time.

Wireless Buying Trends

The most popular data add-on and data-only plans are the 500MB Pooled and Unlimited plans. The most popular voice plans under the BPAs are the 400 Minute Pooled and 100 Minute Pooled plans.

We’re finding agencies default to unlimited when they don’t know what they will use to avoid potential overages. The FSSI wireless contracts offer agencies usage data enabling them to structure the right plan and pooling arrangement that will satisfy individual needs reducing risk of overages.

During 2014, government agencies also took advantage of additional assistance offered by GSA to help manage the mobile component of their IT enterprise by using GSA’s Managed Mobility sources of supply list or the FSSI Wireless BPAs to add mobile management resources they can bundle with wireless service plans.

Overall, 2014 was a successful year for GSA’s wireless and mobile programs.  Building on the FSSI Wireless Program and Managed Mobility Program, we consolidated these solutions and category management approaches under the GSA Enterprise Mobility Program.

Going forward in 2015, we expect wireless BPA usage and savings to continue to grow. Several agencies indicate the BPAs will be their contract vehicle of choice for all future acquisition of wireless services.

Please follow us on Twitter @GSA_ITS to join the conversation.

 

Posted on

Looking at Year-End Telecommunications Insights from Networx

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY14. Read previous posts at  http://gsablogs.gsa.gov/technology/.)

Most federal agencies purchase network services through the Networx telecommunications program. Fiscal Year 2014 year-end Networx purchasing data provides a good picture of the federal networking and telecommunications market.

Last June, we talked about mid-year trends in telecommunications purchases. Today, let’s look at the entire year for FY 2014.

In total, more than 136 federal agencies use Networx. Federal agencies purchased $1.53 billion in network and telecommunications services from the Networx contract in FY 2014. This represents an increase of over $179 million from FY 2013, or 13.2%.  (* See note)

Annual Networx Buying Trends

The two largest in-demand core services on Networx continued to be Network-Based Internet Protocol Virtual Private Network (NBIPVPN) and Managed Network Services (MNS), making up 46% and 12% respectively of Networx purchases. NBIPVPN is a mouthful and you can translate that to secure bandwidth services purchased across an agency.

Demand for these two services grew rapidly. Government agencies increased purchasing of bandwidth by 19% and managed network services by 22% in FY 2014 over FY 2013.

We are seeing federal agencies purchase more high-bandwidth services. This represents a clear shift away from traditional digital signal hierarchy services towards Ethernet-based services. While the inventory of DS-1s (1.5 Mbps services) remained flat, the inventory of 200-500 Mbps Ethernet services in FY 2014 was up over 150% compared to FY 2013. And, we expect this trend to accelerate in FY 2015.

Call center services (such as intelligent call routing to agents) were up 46%. Given the recent modernization of some call centers to Networx, this purchase increase is not surprising. In FY 2015, we anticipate call center services growth will taper as large federal call centers complete their modernization efforts.

One of biggest growth services this past year was toll-free service (TFS). It was the third highest demanded service (9%) on Networx, with purchases up 43% compared to FY 2013. We anticipate this growth trend will decrease or end going forward because it was mainly due to one-time needs in FY 2014 within a few large agencies.

FY 2013 to FY 2014 year-over-year purchase increases are shown below for some of Networx core services.

 Highlights of Network Purchases by Service FY13-FY14  Percentage Growth (FY13-FY14)  Percentage of Networx Purchases
 Network-Based Internet Protocol Virtual Private Network Service  19%  46%
 Managed Network Services  22%  12%
 Toll Free Services  43%   9%
 Call Center Services  46%   3%

 

Consistent with what we found mid-year, increases in bandwidth-driven services more than offset declines in legacy services like long distance voice, which is for the year down 5% from FY 2013. Not surprisingly, long distance voice now accounts for less than 3% of the purchases on Networx.

And, legacy networks based on the Asynchronous Transfer Mode and Frame Relay protocols have largely disappeared from federal purchasing. They now account for about 0.5% of the purchases.

Beyond these core services, purchases of storage services (Network Attached Storage, Storage Area Networks, and Backup and Restoration Services) through Networx had another year of strong growth at 122% over FY 2013.

While storage services account for a small portion of Networx purchases, it is the second year of triple digit growth in storage services.  We expect growth in cloud-based services like this as bandwidth itself grows to accommodate increased government data needs.

Delivering Cost Savings

One of the missions of GSA is to use the purchasing power of government to drive down prices and reduce costs for agencies. GSA closely and continually evaluates how Networx is meeting this mission, especially around the area of pricing.  In FY 2014, the Networx program saved taxpayers and agency users approximately $670 million on telecommunications, compared to best commercial prices.

GSA calculates savings by keeping and using detailed Networx data on both the services agencies purchase and agency usage volume. Third-party market research allows us to compare best commercial rates for these services to Networx pricing.  If you are interested in seeing current year pricing by service on Networx, please visit our Networx Unit Pricer.

In general, purchasing on Networx has become stable. The proportion of services purchased in FY 2014 is fairly close to what was expected. We expect FY 2015 purchasing trends to remain consistent and for Networx to continue to deliver savings.

* The source of the $1.5B is Networx billing data. Federal Procurement Data System (FPDS) data may reflect a smaller volume of federal purchasing due to differences in task order and service order reporting as well as differences between invoice cycles and agency reporting on FPDS.

Please follow us on Twitter @GSA_ITS to join the conversation.

 

Posted on

Satellite Solutions Reach New Heights in FY14

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY14. Read previous posts at  http://gsablogs.gsa.gov/technology/)

Government relies on satellite solutions more and more to meet critical warfighter communications requirements. In addition, satellites provide network diversity and resilience in the event that a terrestrial-based network fails.

Therefore, it’s no surprise that use of commercial satellite services to government under GSA-DOD’s joint Satellite Communications (SATCOM) contracts grew more than 10% from 2013.

In total, usage exceeded $530 million in Fiscal Year 2014 (FY 2014). Nearly 1,200 services and items have been delivered through the SATCOM contracts since inception in 2011.

Worldwide communications, national defense, weather alerts, search and recovery, shipboard and maritime navigation, distance learning, and training, and many scientific and research programs depend on commercial satellite capacity. SATCOM also supports additional remote and mobile applications in the areas of humanitarian relief, disaster-response communications, and counter-terrorism efforts.

In total 64 agencies, including 45 civilian agencies, ordered satellite services from SATCOM contracts through the Future COMSATCOM Services Acquisition (FCSA) Program in FY 2014. Of total orders, approximately 90% came from defense and 10% from civilian agencies.

Satellite Buying Trends

The buying patterns on the SATCOM contracts reveal which satellite services are most often used and how agencies are buying them.

Most commercial satellite requirements (around 80%) are being satisfied through use of  IT Schedule 70. These are mostly for satellite bandwidth (transponded capacity) and managed service solutions offered on a subscription basis. More complex solutions that often contain customized components associated with technology, geography, mobility, or security frequently leverage task orders via Custom SATCOM Solutions (CS2) and Custom SATCOM Solutions – Small Business (CS2-SB).

Transponded capacity, which agencies ordered from Schedule 70 Special Item Number (SIN) 132-54, is the use of dedicated bandwidth on a commercial communications satellite. It accounted for 70% of orders in FY 14. Agencies pay for service from fixed and mobile locations to a satellite and back to the end user.

FCSA offers bandwidth in eight separate frequency bands, the most popular being Ku (using frequencies of about 12 GigaHertz for terrestrial reception and 14 GigaHertz for transmission). Ku band dominated with 92% of the transponded capacity. Satellite service in Ku band uses smaller dishes, which can be physically mobile and more easily follow soldiers deployed around the globe to achieve their missions and communicate with their families.

Subscription services  (Schedule 70 SIN 132-55) accounted for 10% of government satellite solution demand last fiscal year. Custom satellite solutions through CS2 and CS2-SB orders accounted for 20% of the demand.

The SATCOM program is a strong supporter of small business. In 2014, $45 million (9% program-wide) of purchases went to small business. Of this, $19 million was through GSA’s-DOD’s joint CS2-SB contract and $26 million through Schedule 70.

Savings and Acquisition Efficiency for Satellite Services

In FY 2014, bandwidth prices using the FCSA contract averaged 34% off Schedule list prices. GSA estimates that the SATCOM centralized competition and increased price transparency driven by the GSA-DISA partnership saved the government $229 million in FY 2014, with $180 million of the savings attributed to DoD orders.

Also of note, the GSA-DoD joint contracts in FY 2014 continue to achieve a reduced number of contracts and acquisition cycles for satellite solution procurements, thereby generating further administrative savings.

For non-custom satellite solutions, the reduced acquisition lead time for task orders under Schedule 70 reduces time to award by about nine months (versus creating new contracts). Shorter acquisition times generally translate into lower administrative costs.

Looking to the future, defense needs will continue to dominate the government’s commercial satellite market. However, we also anticipate growth in civilian demand. This is especially true for the two predefined Schedule 70 SIN solutions, which lend themselves to quickly activated solutions for humanitarian and disaster support services.

Please follow us on Twitter @GSA_ITS to join the conversation.