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New Year: New Focus on EIS Transition Planning

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/)

In my last blog post, we talked about the government’s Fiscal Year 2015 (FY15) networking trends and activity as evidenced by GSA’s widely used Networx contract.

Last year was also a breakout year for the government’s new telecommunications initiative: Enterprise Infrastructure Solutions (EIS) acquisition. EIS will be the follow-on contract to replace Networx and regional telecommunications contracts (including WITS 3), which many federal agencies use today. When fully implemented, we expect EIS to:

  • Simplify the government’s process of acquiring information technology and telecommunications products and services
  • Provide cost savings to each agency through aggregated volume buying and price and spend visibility
  • Enable the procurement of integrated solutions
  • Promote participation by small businesses and foster competition
  • Offer a flexible and agile suite of services supporting a range of government purchasing patterns into the future
  • Provide updated and expanded security services to meet current and future government cybersecurity requirements

Government and industry collaborated quite a bit on EIS requirements and planning in FY15. GSA engaged industry, worked with federal partners, held three well-attended industry days, and issued the EIS Request for Proposal (RFP), with proposals due February 22.

Focus on Transition Planning in 2016

Going into 2016, one of the government’s biggest priorities for telecom is planning the transition of services from expiring Networx and regional contracts to EIS.

Validating the current inventory of services on Networx, WITS 3 and other regional contracts requires joint collaboration of GSA, federal agencies, and industry partners.

GSA’s Transition Coordination Center (TCC) completed the initial inventory validation on January 29. We compared multiple data sources and worked with the contractors to match up services and reconcile data.

We  then notified  the agencies on January 29 that the Transition Inventory is ready for their initial confirmation and use in transition planning. Throughout the transition period, GSA will continue working with agencies and industry partners to maintain a valid and current transition inventory for tracking transition progress.

Each agency’s transition inventory consists of “service instances,” which are single records representing each active service that will be impacted by the expiration of the contract it’s on.  By today’s count, there are over seven million service instances that have to be transitioned to EIS before the current contracts expire by May 2020.

Important Steps Agencies Must Take Now

We’ve worked extensively with the agency users of Networx and our regional Local Service Agreements (LSAs) to complete the initial validation of the transition inventory.  These are the steps we’ve followed and guidance given:

  1. Download your agency’s transition inventory from the existing E-MORRIS web application. There is a separate module within E-MORRIS titled “Transition Inventory” that will allow agency users, as authorized by their existing E-MORRIS profile, to see their transition inventory, that will consist of Networx and regional inventory.
  2. Review your transition inventory for completeness and provide feedback to the GSA TCC following the instructions provided by the TCC.
  3. Continue to develop your Agency Transition Plan and continue transition planning. Refer to the EIS webpage for further transition updates and guidance or contact your Technology Service Manager.

Successful inventory validation now will assist agencies with more focused planning in advance of award of the EIS contracts. This will help expedite a smoother transition for each government agency starting next year.

You can reach the TCC by contacting the IT Customer Service Center at 855-482-4348 or ITCSC@gsa.gov.

Are you following ITS on Twitter? If not, join us at @GSA_ITS for updates and to engage us on government IT acquisition topics.

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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 FY15. Read previous posts at http://gsablogs.gsa.gov/technology/

In FY15, federal agencies purchased $1.62 billion in network and telecommunication services under GSA’s Networx program. This reflects a 6.3% increase over FY14. Much of the increase was driven by demand for bandwidth, which more than offset declines in purchasing of legacy services like long distance voice, toll-free services, and other obsolete data-oriented services.

The source of the purchasing numbers is Networx billing data. On behalf of federal agencies, GSA operates a billing and inventory system for telecommunications services. These systems allow us to see purchase and price trends for every federal agency as well as the program as a whole.

Overall in FY15, more than 120 federal agencies used the Networx program, which consists of the Networx Universal and Network Enterprise contracts.

Beyond purchasing, a significant milestone in FY15 was the decision to extend the Networx contracts to four of the five Networx suppliers to FY20. This extension gives federal agencies time to transition to the next generation network and telecommunications acquisition – Enterprise Infrastructure Solutions – which is currently an active solicitation. And, the Networx contracting and program offices are using this extension period to continue ensuring our agencies pay not only fair and reasonable prices but better than commercial (in most cases) for services.

Annual Networx Buying Trends

As in FY14, 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 48% and nearly 12% respectively of Networx purchases.  NBIPVPN is simply bandwidth, designed for use within an enterprise.

Demand for these two services continues to grow. Government agencies increased purchasing of bandwidth by 12% and managed network services by 3% in FY15 over FY14. But, the growth trend on these two services tapered from past years. In FY14, the year-over-year growth trends for these two services were 17% for both services.

The real interest around bandwidth purchasing is a trend away from the digital signal hierarchy (DS-1, DS-3) towards Ethernet services. The most common circuit in the federal inventory is the DS-1. However, the number of these low bandwidth circuits dropped by 5.9% in FY15 and for the past five years has a negative compound annual growth rate of 4.1%. Conversely, the growth rate associated with 100MBps Ethernet transport circuits grew by nearly 100% in FY15 compared to FY14. We believe this trend will continue and are acting proactively to ensure our pricing is fair and reasonable given the buying power of the federal government.

Evolving Security Needs

One of the bigger growth areas on Networx was security. Network security is a fundamental component of information technology security. The Managed Trusted Internet Protocol Services (MTIPS) grew at nearly 36% from FY14 to FY15 and the five-year compound annual growth rate is 209%.

MTIPS is a unique service to the government and combines bandwidth and security services. GSA continues to have productive working relationships in the federal IT community to enhance MTIPS. And, we expect demand for MTIPS to continue to grow faster than the rate of Networx as a whole.

Security services, like MTIPS, constantly evolve. They will continue to do so on Networx and on Enterprise Infrastructure Solutions (EIS), which is the follow-on contract vehicle for Networx, the Regional Local Service Agreements (LSAs), and other current contracts. EIS will have a suite of advanced security services in addition to MTIPS.

FY14 to FY15 year-over-year purchase increases are shown below for some of Networx core services:

Highlights of Networx Purchases by Service from FY14 through FY15 Percentage Growth (FY14 to FY15) Percentage of Networx Purchases
Network-Based Internet Protocol Virtual Private Network Service 12.1% 48.4%
Managed Network Services 3.2% 11.6%
Toll Free Services -7.5% 7.5%
Managed Trusted Internet Protocol Services (MTIPS) 35.9% 1.7%

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 FY15, 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.

Going forward, we will continue to closely evaluate prices paid for services. Through effective data collection, we closely track purchasing by supplier, by service, and by agency. And, based on this data and the subsequent analysis, we will act on opportunities for savings through effective supplier management.

This practice will continue throughout the life of Networx as well as subsequent acquisitions within the Network Services Program.

Please follow us on Twitter @GSA_ITS to join the government IT and networks conversation.

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Satellite Solutions on Course

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/)

Satellites Make a Difference

Use of commercial satellite systems continue to give government the ability to make a huge difference in the lives of Americans. Defense and other systems can monitor global events and rapidly implement communications infrastructure almost immediately without advance resource and lead-time commitments.

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

We rely on satellites for 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.

Satellite Use, by the Numbers

Use of commercial satellite services in Fiscal Year 2015 (FY15) by government under GSA-DoD’s joint Satellite Communications (SATCOM) program continues to be strong.

Usage exceeded $532 million in FY15. Nearly 2,000 services and items have been delivered through the SATCOM contracts since inception in 2011.

A total of 44 agencies, including 34 civilian agencies, ordered satellite services in FY15 from the joint GSA-DoD program called Future COMSATCOM Services Acquisition (FCSA).

Defense needs continue to dominate the government’s commercial satellite buys under FCSA with approximately 93.7% of business volume from defense and 6.3% from civilian agencies. This is consistent with FY14 demand.

Agencies buying through the FCSA program obtain lower prices. Bandwidth prices in FY15 using the FCSA contract averaged 34% savings off of Schedule list prices. GSA estimates that the SATCOM centralized competition and increased price transparency driven by the GSA-DoD partnership saved the government $211 million in FY15.  

Today’s Satellite Buying Trends

The buying patterns on the SATCOM contracts remain consistent with last year, showing which satellite services are most often used and how agencies are buying them.

Most commercial satellite requirements (approximately 75%) continue to be satisfied through use of IT Schedule 70.

  • Agencies continued to order mostly transponded capacity from Schedule 70 Special Item Number (SIN) 132-54, to use dedicated bandwidth on a commercial communications satellite. Agencies pay for service from fixed and mobile locations to a satellite and back to the end user. In FY15, transponded capacity accounted for 57% of orders.
  • Subscription services (Schedule 70 SIN 132-55) continue to be the second most in demand, accounting for approximately 18% of government satellite solution demand in FY15.

In addition, more complex solutions that often contain customized components associated with technology, geography, mobility, or security are satisfied via Custom SATCOM Solutions (CS2) and Custom SATCOM Solutions – Small Business (CS2-SB). Use of CS2 and CS2-SB rose from 20% to 25% of GSA’s commercial satellite demand from FY14 to FY15.

The SATCOM program again proved to be a strong supporter of small business. In 2015, $63.9 million (12% program-wide) of purchases went to small businesses compared to $45 million (9% program-wide) in FY14. In FY15, $20.8 million was through GSA’s-DoD’s joint CS2-SB contract and $43.1 million through Schedule 70.

Planning for the Future with CS3

The past year also included the Department of Defense’s commitment to the next generation GSA-DoD joint satellite services solutions.

In FY15, GSA, DoD and other government agencies started to plan for what government commercial satellite contracts and solutions we’ll have for the future: Complex Commercial SATCOM Solutions (CS3).

CS3 will be the follow on contract for CS2 and CS2-SB which expire in August 2017 and February 2017, respectively. CS3 looks to build upon the success of CS2 and CS2-SB to create contracts as flexible and agile as possible to meet and satisfy the widely differing requirements of the federal government both now and for the next decade and beyond.

In 2015, we met several CS3 milestones, which included forming the GSA-DoD CS3 development team, issuing a Request for Information (RFI) to industry, engaging and collaborating with industry at a GSA-hosted CS3 Industry Day, and launching a new Interact Site to continue the dialog with industry on the future CS3.

On December 29th, we posted the CS3 Request for Proposals (RFP) on FedBizOpps.

Stay tuned for more in 2016 about CS3.

Join the Interact Site and follow us on Twitter @GSA_ITS to hear more and join the conversation.

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Improving Government Cybersecurity

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/)

As many are aware, the Office of Management and Budget (OMB) is putting in place tactical and strategic cybersecurity measures in response to threats and events including the recent Office of Personnel Management (OPM) breach. The General Services Administration (GSA) Office of Integrated Technology Services (ITS) is active in this response. In FY15, GSA ITS continued to support government efforts to improve cybersecurity by developing and improving upon the following initiatives:

Supply Chain Risk Management (SCRM)

This initiative supports the IT Security Category Management Plan to establish a Supply Chain Risk Management capability to:

  • Develop FAS ITS Cybersecurity SCRM guidance and controls;
  • Conduct contract reviews of IT Schedule 70 vendors;
  • Manage incidents within FAS ITS contracts;
  • Establish and maintain contact with both internal GSA stakeholders and external agencies on cyber incidents; and
  • Maintain awareness of government-wide supply chain policy/trends.

The implementation of a SCRM capability will give customers confidence that our IT products come from original equipment manufacturers, their authorized resellers, or other “trusted” sources. A policy of buying IT products from trusted sources supports a customer’s ability to strengthen their IT security posture.

Cybersecurity Strategy and Implementation Plan (CSIP)

The CSIP directs GSA, in coordination with OMB and DHS, to research contract vehicle options and develop a capability to deploy incident response services that can quickly be leveraged by federal agencies, on a reimbursable basis. ITS is currently working across GSA and with OMB and DHS to do this in accordance with the timeline established by OMB.

Cybersecurity and Information Assurance (CyberIA) Project

As part of the Federal Acquisition Service (FAS) Category Management Initiative, the Office of Integrated Technology Services (ITS) initiated the Cybersecurity/Information Assurance (CyberIA) Project. The scope of the project is to categorize CyberIA products and services based on the NIST “Framework for Improving Critical Infrastructure Cybersecurity”, which aligns with Executive Order (EO) 13636 “Improving Critical Infrastructure Cybersecurity” and OMB M-16-04 “Cybersecurity Strategy and Implementation Plan (CSIP) for the Federal Civilian Government”. It will also allow federal agencies to more easily identify CyberIA products and services, and offer better access to support market research, acquisition planning, and category management.

US Access

GSA’s USAccess program supports improving government cybersecurity by providing over 100 civilian agencies with credentialing solutions: a vital nationwide, economical, secure, shared service facilitating identity credential issuance, maintenance, and lifecycle management. These identity credentials are used to control access to federal information and facilities. The program currently manages over 600,000 active credentials and has been able to significantly reduce the cost of credentialing for customer agencies of all sizes through the shared service platform.

Federal Public-Key Infrastructure (FPKI)

The Federal Public-Key Infrastructure Management Authority (FPKIMA) enables the best and most cost-effective identity management practices for secure physical and logical access, document sharing and communication across the federal government and with the private sector. The FPKIMA enables agencies to achieve their e-government and identity management goals. The FPKI Trust Infrastructure has helped agencies reduce document handling, shipping, and processing costs as well as reducing network intrusions. In addition, the Trust Infrastructure enables interoperability between the over 5 million issued HSPD-12 credentials and other industry approved digital certificates.

Alliant 2 and Alliant 2 Small Business Cyber Security Requirements

GSA has baked in minimum-security standards for select contractor systems, the handling of government sensitive data and information technology, contractor security clearances, and homeland security in our GWACs at the contract level. At the task order level, contractors must comply with all GSA IT Security Policies, all applicable GSA and NIST standards and guidelines, and other government-wide laws and regulations for protection and security of information technology, e.g., Federal Information Security Management Act (FISMA) of 2002.

Network Services

Cybersecurity has always been a key aspect of GSA’s Network Services Programs, and we’re stepping it up in the Network Services 2020 era. Today, Networx includes baseline standards and security services, such as the Managed Trusted Internet Protocol Service (MTIPS) that currently provides Trusted Internet Connections-compliant managed security services to over 60 agencies.

Tomorrow, NS2020 will enable interoperability and further the migration from legacy technologies to a converged IP environment, ensuring cybersecurity is built in and inherently part of the government’s telecom infrastructure. Programs in the portfolio will specify cybersecurity requirements and include an even broader range of pre-defined, flexible security services.

For the Enterprise Infrastructure Solutions acquisition, we worked closely with DHS and ensured state of the art cybersecurity measures are applied to all applicable services. In addition to provisions to facilitate the implementation of EINSTEIN 3A for all agencies, EIS contains MTIPS, a range of Managed Protection Services, and Intrusion Prevention Services. And cybersecurity considerations appear throughout the NS2020 portfolio. For example, the recently launched Mobility 2.0 initiative will encompass managed mobility, including Mobile Device Management and Mobile Application Management, both critical aspects of mobile security.

Moving Forward

ITS is committed to help government as a whole improve cybersecurity. We stand ready to work with agencies to explore ways our IT solutions can help reduce costs, minimize duplications and redundancies, and save money. Our job is to help support you to focus on your missions while maintaining quality and reducing costs.

And remember to follow us on Twitter@GSA_ITS to join the conversation.

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GWAC Program Expanding Opportunities for Small Businesses

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/.

Small Business GWACs: Year in Review

I’m proud to say that FY15 was a banner year for our Small Business Governmentwide Acquisition Contracts Center. The Center, which supports agency efforts to meet socioeconomic goals through IT services acquisitions, received 755 task orders in FY15. These acquisitions, and exercised options, represent a total government spend of $2.6B in obligations. Projects on these acquisitions represent a wide range of IT services, from technology consulting to cloud computing.

As the Center moves forward into FY16 with a number of new contract opportunities, its focus remains steadfast on helping small businesses succeed in the federal marketplace. Let’s take a brief look at the current contracts and what’s on the horizon.

Current Contracts

The Small Business GWAC Center currently operates three contracts with specialized socioeconomic designations. Each contract is designed to provide a streamlined method for agencies to utilize highly qualified small businesses to meet their IT needs, while achieving U.S. Small Business Administration (SBA) and agency socioeconomic contracting goals. Additional information on SBA goals may be found on the SBA website.

The 8(a) STARS II GWAC is a set aside contract for 8(a) technology firms (as designated by SBA). This contract is available for use through 2024, and includes nearly 600 skilled 8(a) IT service providers. In FY2015, more than $1.6 billion was obligated against more than 650 new task orders on the 8(a) STARS II GWAC. This represents the most successful year for 8(a) STARS II. More information on the 8(a) STARS II GWAC, including its directed order authority, can be found at 8(a) STARS II site.

The Alliant Small Business GWAC focuses on providing government contract opportunities to a wide range of highly qualified small businesses. This small business contract provides flexible access to customized IT solutions from a diverse pool of nearly 50 industry partners. With availability through 2024, Alliant Small Business allows for long-term planning of large-scale program requirements, while strengthening opportunities for small businesses. During FY15, Alliant Small Business received 90 task orders and over $1.2 billion in obligations. This is an increase of 8% in obligations from FY14. Details on how the Alliant SB contract can help your agency meet its goals are available at the Alliant SB website.

The VETS GWAC is a contract designed to strengthen federal contract opportunities for our nation’s service-disabled veteran-owned small businesses. Agencies receive SDVOSB credit when issuing tasks on the contract, which is available through 2020. The VETS GWAC continues to be a successful program, with nearly $139 million obligated on the contract in FY2015. The GSA VETS website has a wealth of information on how this contract assists in developing opportunities for SDVOSB firms.

Our small business industry partners, across all three SB GWACs have been very successful. On 8(a) STARS II, 378 out of 562 small disadvantage businesses (67.3%) have at least one award.  On Alliant SB, 63 out of 68 primes (92.6%) have one or more awards. On VETS, 100% of the current SDVOSB contract holders have an award.

Next Generation Contracts

In addition to a focus on current contracts, the SB GWAC Center is currently working on three new acquisitions:

  • 8(a) STARS II (set-aside for 8(a) firms) is currently conducting evaluations on an open season held in mid-FY15. This open season will provide opportunity to additional 8(a) firms to join the contract, increasing the pool of quality vetted 8(a) firms to meet federal agency requirements.
  • VETS 2 (set aside for service-disabled veteran-owned small businesses) issued a draft RFP in 2015. This follow on contract will build upon the success of the original VETS contract, and include the capability to issue cost-type task orders. A final solicitation for VETS 2 is anticipated in FY16. For those interested in more information on the VETS 2 procurement, visit our VETS 2 Interact community.
  • Alliant 2 Small Business (set aside for small businesses) held industry one-on-one sessions in FY16 for to develop the draft RFP. This next generation contract solicitation is anticipated to be issued in the spring of 2016. GSA invites interested government and industry partners to join our Alliant 2/Alliant 2 SB Interact community.

We are thrilled with agency interest in and use of the SB GWAC programs and are predicting a very successful FY16 as well. For more information on the SB GWAC program and how it brings small businesses and federal agencies together, please visit the SB GWAC website.

And, as always, please follow us on Twitter @GSA_ITS to join the conversation.

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Alliant Enterprise GWAC Update

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology

The GSA Alliant GWAC had an outstanding year helping agencies achieve their mission through a fast, flexible, and reliable acquisition vehicle. Agencies obligated $2.93 billion dollars to Alliant during FY15, marking Alliant as the largest utilized single GWAC in GSA history by dollar value.

Alliant is GSA’s premier enterprise GWAC, providing flexible access to customized IT solutions from a large, diverse pool of industry partners. Alliant allows for long-term planning of large-scale, complex program requirements. Our success can be attributed to several factors that deserve a closer look.

Alliant FY15 Success Analytics

Since contract inception, more than 63 agencies have used  Alliant and awarded an estimated $22.8 Billion in task order value. Seven new agencies used Alliant for the first time in FY15. This steady growth can be attributed to numerous factors. For example, approximately 870 federal acquisition & program professionals have received the Alliant GWAC Delegation of Procurement (DPA) training – a whopping 248 in FY15 – a 23% increase in buying power! Lastly, during FY15, 96 Statements of Work (SOWs) were submitted for review, which is a 13% increase.

Top Agencies and Vendors

The top three agencies utilizing Alliant (obligated dollars) are the Air Force at $3.49 billion, the Department of Homeland Security at $3.00 billion, and the Army at $2.83 billion. The Department of State comes in at a close fourth at $2.62 billion.

Currently, SAIC leads obligations – over $2.12 billion spread across 44 task orders. Booz Allen Hamilton Engineering Services follows with $881 million across 12 task orders and Lockheed Martin follows suit with $853 million across 21 task orders.

Strong relationships between Government and Industry

As pre-competed vehicles, GWACs can streamline the acquisition process, which naturally leads to saving time and money. Our pre-competed vehicle consists of 57 exceptionally qualified contractors. The Alliant program office takes pride in the individual relationships that have been created through the years between the Enterprise GWAC division and the outstanding Alliant contractors. To date, 51 out of 57 primes have received awards, exemplifying the diverse pool of credible talent and the constant interaction between government and industry.

The Enterprise GWAC division recently invited representatives from each of the 57 Primes to participate in Alliant’s twice-a-year Program Management Review (PMR). The event spans two days and allows industry to interact with government and participate in collaborative program updates and breakout sessions. Success on projects through Alliant is a three-part partnership – GSA, the procuring agency, and the company performing the work under the task order. We’ve built this model over a number of years with all of our GWACs, and it’s because of that focus and approach that Alliant has served the federal community so well.

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

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IT Schedule 70 Business Volume By The Numbers

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/)

Schedule 70 is growing again!

IT Schedule 70 continues to be the largest, most widely used acquisition vehicle in the federal government. In FY15, the program started growing again, bouncing back after a downturn in business volume in prior years.

IT Schedule 70 provides federal agencies with direct access to more than 4,700 pre-vetted innovative companies, who provide high-quality IT products, services and solutions.

In FY15, federal agencies bought more IT products and services through IT Schedule 70 than in the previous fiscal year, growing the program’s business volume by 3% ($424M) to a total of $14.8 billion.

bar chart showing IT schedule 70 Business Volume FY12-FY15

In addition, federal agencies spent the majority of their IT procurement dollars through three Special Item Numbers (SIN) on IT Schedule 70 in FY15:

  • IT Professional Services,
  • Perpetual Software Licenses, and
  • Hardware, making up over 75% of business volume.

pie chart showing distribution of top 3 Schedule 70 SINs (special Item Numbers)

We expect further growth in business volume in FY16 as a result of our many initiatives to increase value of the program. Examples are: the Cloud SIN, the Cyber Security/Information Assurance Project(Cyber IA), the upcoming Health IT SIN, and our recent FITARA initiatives with Salesforce and Esri.

Hardware and IT Services lead the pack in year-over-year growth

In FY15, the Hardware SINs topped the list in year-over-year growth with a 14% jump from $1.6 billion to $1.74 billion over FY14. IT professional services posted the largest real dollar growth of $211 million. IT professional services remain the majority of the IT Schedule 70’s business volume.

Year-Over-Year Growth for Top Five SINs

bar chart showing year over year growth for top 5 Schedule 70 SINs

There is also more good news ahead for hardware business volume in IT Schedule 70.

OMB recently selected IT Schedule 70 (PDF, 4,120 KB) to be one of three federal contract vehicles tapped to participate in the Government-wide Strategic Solutions for Laptops/Desktops. The initiative’s goal is to develop a framework and strategic approach to buying from specific government-wide contracts with standardized configurations, and bring transparency into terms and conditions and pricing, all aimed at helping federal agencies get better value for their laptop and desktop dollars.

We continued to help more companies succeed

No analysis of business volume would be complete without reviewing how our Schedule 70 partner companies are using the contract. We want Schedule 70 to be an effective tool for both the government buyer and the private sector.

In May 2015, we established a tiger team to work with IT Schedule 70 business partners who were not meeting minimum sales requirements. “No sale” or non-productive contracts result in an administrative cost to the government. And we know that companies expend effort and resources to obtain and maintain a Schedule contract in the first place so we want Schedule 70 to be of great value to our partners as well.

As a result, all IT Schedule 70 contracts contain a clause requiring vendors to generate $25,000 in sales in the first two years of the contract and $25,000 each year afterwards. This clause exists to make sure business partners are productive on their contracts.

In all, we identified and worked with over 200 business partners to become productive, reducing the administrative costs of their contracts in the process, while helping them to be more successful in the federal market.

The now-productive business partners either made the necessary sales, developed a comprehensive marketing plan, or hired personnel to support their business development efforts.

Ultimately, we are committed to supporting our business partners toward meeting their contract sales requirements. We will do all we can to help them succeed in the federal market.

That’s a wrap!

Well, that’s the IT Schedule 70 FY15 business volume data story:

  • IT Schedule 70’s business volume grew by 3% ($424 M) to $14.8 billion;
  • Hardware and IT Services saw the largest growth in business volume; and
  • We helped over 200 business partners stay compliant with their sales requirements.

FY15 was a great year for IT Schedule 70, and FY16 promises to be even more successful.

For more news and updates about IT schedule 70 and other GSA ITS programs, please follow us on Twitter @GSA_ITS and join the conversation.

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The Cloud IDIQ: Gathering Insights from Both Sides of the Contract

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/)

As the federal government moves toward cloud computing in order  to increase mission agility and cost effectiveness, GSA is establishing a comprehensive IDIQ cloud computing contract that will serve as a one-stop shop and an improved way to buy cloud. This contract will serve as a single procurement source for all things cloud, with flexibility so as to incorporate valuable cloud services and technologies that emerge over its lifecycle.

Through interactions with federal stakeholders, we have identified common barriers that government agencies face during implementation of their cloud computing projects. This insight supports the foundation of the approach GSA is taking in this endeavor.

The Value of Strong Partnership

To further this customer engagement, GSA is partnered closely with DoD’s Defense Information Systems Agency (DISA) through a Memorandum of Agreement, addressing in part how this comprehensive cloud computing contract can:

  • Support various levels of DoD’s rigorous security requirements and accommodate other buyers with similar security needs;
  • Best suit the government’s need to effectively budget while still leveraging the flexibility of the cloud; and
  • Establish a cloud computing contract that is as attractive as possible for DoD and other federal consumers.

Through the continuing DISA/GSA partnership we have identified and addressed over 200 DoD requirements and desirable cloud contract vehicle characteristics. Our careful adjudication of these requirements ensures that we’re creating a stronger, best-in-business contract.

Collecting Input from the Other Side

Customer insights, such as those from DISA, have helped GSA to serve its partners better but they don’t tell the whole story. GSA needed input from stakeholders on the other side – the vendor side – of the contract to get the full picture, so we sought feedback from cloud computing vendors who provide the services this contract needs.

The CCS PMO released a Request for Information (RFI) on February 11, 2015 to solicit insights from both government and industry. The RFI was part of a larger market research effort to determine the current state of cloud contract capabilities across the federal government.

We asked members, particularly of the vendor community, a variety of questions ranging from the challenges that they face in selling cloud services to the government to the types of cloud products and services that need to be offered in the future. Respondents were also asked if their companies see value to the government if GSA creates a new cloud contract to replace the expiring IaaS BPA.

Some specific questions were:

  • Given that cloud products and services are rapidly changing, what process or structure would your company propose for the acquisition contract to keep current with industry?
  • How would you suggest that awarded solutions be “updated” based on a technology change and pricing?
  • What would you propose as the easiest and most cost-effective way for government to offer cloud solutions to federal agencies?
  • Can GSA modify or change how it buys and sells cloud services to be more consistent with how solutions are structured and sold commercially within the limitations of the FAR?

Incorporating Feedback

There were a total of 72 respondents to the RFI, most of which were vendors. A few major response themes included:

  • Common barriers to cloud sales are security requirements, inflexible pricing structures and long procurement delays;
  • The need for professional services to be included in the same vehicle as the cloud offering;
  • A desire for on-demand, subscription or “Single CLIN” purchasing programs; and
  • The need for flexibility to make changes and modifications to the offerings as cloud technologies evolve.

A strong 72% of respondents were in favor of GSA creating a new cloud IDIQ contract to replace the expiring IaaS contract.

Moving Forward

In support of its mission and priorities and to build a better contract vehicle, GSA is committed to using the insights learned from both vendor responses to the RFI and from its strong partnerships. Understanding customer needs and service provider insights before building the contract ensures GSA is facilitating the federal government’s most critical achievements in the rapidly developing landscape of cloud computing. Stakeholders will see the fruits of these labors when the cloud computing IDIQ draft RFP is released by FY16’s end, at which time we’ll look forward to your contributions by way of feedback and input.

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

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The Cloud SIN: Making Sense of Cloud Options

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15. Read previous posts at http://gsablogs.gsa.gov/technology/)

Success in our Cloud PMO

Our Cloud Computing Services Program Management Office (CCS PMO) was hard at work in FY15 working on a number of projects. They are fully staffed with both cloud technologists and cloud acquisition specialists. The team helps federal, state, local and tribal governments with their cloud adoption and acquisition strategies with the goal of speeding government movement to the cloud. The PMO manages the following GSA cloud acquisition tools:

  • IT Schedule 70 Cloud Special Item Number (SIN) 132-40
  • Cloud Email as a Service (EaaS) BPA
  • New Cloud IDIQ in process
  • Groundbreaking Infrastructure as a Service (IaaS) BPA, now expired and to be replaced by the new IDIQ.

In FY15 the PMO completed over 150 separate agency engagements ranging in length from one day to six months, all focusing on helping agencies with their cloud strategies. And we are proud to say that since inception, the Cloud PMO has managed over $450M in dozens of cloud acquisition awards either directly through its own cloud acquisition tools, or by helping agencies direct their cloud orders to GSA IT Schedule 70 alone.

As I reported in a blog post this spring, GSA successfully implemented the Cloud Special Item Number (Cloud SIN 132-40) on IT Schedule 70 for all cloud offerings in April 2015. The Cloud SIN allows customer agencies to view all cloud-specific offerings in three sub-categories defined by National Institute of Standards and Technology (NIST): Software as a Service, Platform as a Service, and Infrastructure as a Service.

Cloud SIN: What it’s all about

The goal of the Cloud SIN is to provide customers centralized, streamlined access to cloud computing services through IT Schedule 70 to meet their eligible government, state, and local needs. GSA customers can clearly distinguish cloud services from non-cloud IT products and services in order to get to the right solution quickly. In addition, the Cloud SIN provides industry partners with enhanced abilities to market distinctive cloud computing solutions and offerings on IT Schedule 70.

FY15 Awareness, Adoption and Industry Partner Excitement

Our Industry Partners have expressed significant interest in getting on the Cloud SIN. In preparation for increasing the number of vendors in the next fiscal year, GSA held an Industry Day for vendors, published more than 25 news articles and posted more than 30 notices through GSA social media outlets (e.g. GSA ITS Twitter account). GSA also held several webinars and training sessions for more than 100 Contracting Officers who will approve submissions for vendors to get on the Cloud SIN. And, I’m pleased to say that these Cloud SIN efforts are beginning to bear fruit.

DHS Vote of Confidence

In November, the Department of Homeland Security’s (DHS) Enterprise Computing Services (ECS) issued an RFI for a future acquisition that seeks to leverage vendors under the Cloud SIN to provide DHS components with the ability to efficiently procure secure cloud computing services on an ongoing basis. This type of procurement looks to be the first of its kind for the Cloud SIN, and GSA looks forward to working closely with vendors and customers in the coming year to ensure that it’s not the last.

For more resources on the Cloud SIN, including guidance for transitioning your company’s services onto the SIN or how to use the SIN to build a Blanket Purchase Agreement (BPA), please visit our website.

In our next installment,we’ll highlight discuss our partnership with DISA and the plans for a government wide Cloud IDIQ contract.
Also, please follow us on Twitter @GSA_ITS to join the conversation.

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FY 2015 Sees Agencies Saving Dollars on Wireless

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY 15. Read previous posts at http://gsablogs.gsa.gov/technology/)

As agencies move to a more mobile workforce, we have seen their demand for wireless services increase. Government use of GSA’s Federal Strategic Sourcing Initiative (FSSI) Wireless Blanket Purchase Agreements (BPAs) in Fiscal Year 2015 (FY15) skyrocketed 500% over FY14.

This increase is due to greater demand for better management and savings as agencies integrate mobile technology into their IT enterprise. It’s also due to agencies transforming their work environments with more mobile and flexible options.

Embracing Cost Savings

In FY15, we saw an average of 27% in savings with FSSI Wireless BPAs compared to prior year expenses for those agencies.

These buyers found Monthly Recurring Charges (MRCs) per device dropping to $38.82 per user per month, from the $55.40 federal average at the start of the program, over many common voice and data smartphone plans. The BPAs are saving government agencies more than $16 per month per user. This marks a new low for the average MRC and highest monthly savings rate to date.

Since these are service costs, and not just one-time costs, the savings are compounding each month agencies are on the contract.

FY15 federal government savings for the program exceeded $10 million as a result of better pricing, management, and competition credits. This means the government is leveraging government-wide discounts to save more each year, while it deploys devices with a greater focus on meeting the ever-increasing data needs for agencies.

Managing Wireless and Mobile Better

Another big priority we saw in FY15 was agencies’ commitment to better managing wireless resources across the enterprise. 85% of defense and civilian cabinet-level agencies are using FSSI Wireless BPAs. Many of them are slowly consolidating wireless via phased task orders to fully consolidate and better manage mobile assets.

Managing wireless better, attaining volume-driven discounts, and consolidating orders makes agencies more efficient operationally as well as financially. Consolidation, standardization, better inventory management, and increased security are top priorities. Tools that can help them manage mobile resources, applications, and security will become even more important going forward.

Other Wireless Insights

Agencies want flexible features when buying wireless, which is fueling the growing popularity of the FSSI Wireless BPAs. Discounted wireless plan pricing, no-cost devices, and the pooling option for data and minutes are saving agency dollars by allowing an agency’s high-volume users to leverage the unused minutes and MBs purchased by lower volume users, further reducing overage costs.

The most popular data add-on and data-only plans continue to be 500MB Pooled and Unlimited Data plans. Like last year, the most popular voice plans under the BPAs are the 400 Minute Pooled and 100 Minute Pooled plans. This means that agencies have been getting better at driving their carrier costs down by purchasing what they need and optimizing their plans, rather than the “set it and forget it” wireless purchasing and management approach of the past.

About half of federal agencies using FSSI Wireless are using two or more contractors to meet their enterprise-wide wireless needs. This may be a factor of transitioning to a new contract, after which they’ll consolidate to one carrier. It can also encourage greater competition and cost savings in task order negotiations.

FSSI Wireless BPA users reported the ability to do faster procurements than anticipated. This is a plus when doing a phased approach to fully consolidate and allowing a flexible transition timeline depending on agency need, while driving down the transaction costs.

What’s in Store in FY16

GSA in partnership with our customer agencies is already working on the next generation of wireless and mobile solutions – known as Mobility 2.0.

Mobility 2.0 is a collaborative approach with a cross-agency task force to address the next generation of acquisition planning aimed at supporting how the government buys and manages wireless/mobility programs in the future.

We’re preparing to launch a new Mobility 2.0 Interact Community that industry and agencies can join to keep up-to-date on new initiatives and plans.

The February 9th Mobility webinar and April 14th live event are for agency officials to keep abreast of the latest trends, initiatives and collaboration about government wireless requirements, needs, and best choices for acquiring wireless and mobile resources. Save the dates and stay tuned to @GSA_ITS twitter account on how to register.

In the meantime, agency buyers looking for savings and management tools can start with GSA’s Enterprise Wide Mobility website.

The good news from FY15, and hopefully in coming years, is….The more agencies use government-wide wireless contracts, the greater cost savings for government and taxpayers.