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Total Cost Savings Key in Federal Network Connections

(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/)

Improving and maintaining reliable and flexible basic connectivity continues to be important for government, including a focus on total cost of ownership savings.

Connections II is the GSA contract agencies use to purchase network integration support and communications equipment to ensure connectivity from the user to the network provider.

FY15 Customer Buying Trends

Federal agencies obligated $172 million to Connections II network integration and support services via 292 task orders in Fiscal Year 2015 (FY15).

While building and campus connectivity remain the primary purpose of the Connections program, as technology continues to evolve we see a shift in what agencies are ordering. For example, traditional building and campus wiring and cabling projects are now becoming wireless.

Agencies are looking to Connections to support engineering, installation, testing, project management, and life-cycle management of Digital Antenna Systems, Wi-Fi, and other wireless technology that become the user interface to the broader networks of the world.

Connections II purchase data tells us that agencies need continued support and resources in this area. Five service types available from Connections II make up almost 80% of demand. Demand for telecommunications, network upgrades, and general network support were higher priority in FY15 than the year before.

Technology Solution Percentage of Total
Telecom Upgrades 20%
General Support 18%
Voice Operations and Billing Consolidation 15.6%
Unified Communications Expansion 13%
Network Cabling 10.5%

 

Connections II contractors offer strong integration skills, which are important during long upgrades or transition, to watch for technology changes and incorporate them into the final result.

Focus on Total Cost of Ownership Savings

Connections II customers are focusing on solutions that save dollars at both contract award and on long-term operational costs (total cost of ownership).

One agency awarded a large task order in FY15 that achieved more than 10% in labor savings and 40% in equipment savings over listed prices. Other agencies are anticipating more downstream savings as a result of consolidation and modernization.

Agencies are able to save millions with more efficient telecom operations and billing management over several years. They also reduce cost of operations and security, and increase network efficiency by modernizing technology such as nationwide Unified Communications Convergence.

Orders Increasing Year to Year

Demand for solutions from Connections II is growing every year. FY15 obligations represent an increase of 31% in obligations from FY14, and 60% in obligations from FY13.

In addition to Unified Communications, we see interest growing for Radio Access Networks (RAN), Distributed Antenna Systems (DAS), and Land Mobile Radio (LMR). This is no surprise with the growth in mobile, since these technologies broaden the area signals can be received by mobile devices. They also assist with emergency preparedness.

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

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FY 2015 Year-End Data Gives Insights to Government IT Needs and Trends

(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY15.)

What do you do at the start of a new year?

You make New Year resolutions and look back at the previous fiscal or calendar year and see what transpired and what insights you can gain.

I did this last January with my first Annual Year-End Blog series about FY14 trends in government IT buying.

Again this year I’ll run a series of blog posts here over the next few weeks. This time we’ll take a look at Fiscal Year 2015 (FY15) purchasing trends and activity in different IT areas such as cyber, wireless services, commodities from IT Schedule 70, satellite services, network services and more.

We’ll also look at what happened in FY15 with category management and the Acquisition Gateway initiatives having a big impact on government buying.

Understanding Buying Patterns and Trends

Being the largest IT acquisition organization in the federal government, it is our responsibility to create an environment where agencies and industry can obtain the necessary information to understand buying patterns, trends, and best practices.

We work closely with CIOs, CFOs, and CAOs across government to understand current and future requirements, and connect agencies with better industry solutions.

As we look at buying patterns and trends and talk to officials across government, clearly these continue to be the top priorities:

  • Find mission-enhancing technologies with solutions that will expand and contract as needed and serve multiple purposes, without technology investments becoming outdated and stale.
  • Spend U.S. taxpayer dollars wisely, realize IT cost savings and acquisition efficiencies, and meet our service goals to the American people.
  • Enhance cybersecurity and ensure it is integrated into all IT components.

GSA Administrator Denise Turner Roth’s vision for GSA includes goals to be an economic catalyst, proactive federal partner and succeeding in operational excellence. ITS embodies this vision and we are proud to play a role in helping agencies buy smarter, faster, and for greater value.

Stay Tuned for Closer Looks at Each IT Area

IT investments made by government in FY15 give us the latest chapter in the story, including what technologies are important to government as a whole to support the government’s missions.

The data we’re using is based on activity and trends on GSA’s IT contracts. The data gives an idea of our aggregated IT priorities and trends in FY15, and what might be coming next.

Check back here often over the coming weeks as we look back at the insights we can gain from the FY15.

Also, follow and engage us on Twitter @ GSA_ITS.

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Celebrating Veterans Success through ITS Contracting Opportunities

As we celebrate the Veterans Day holiday, I’m humbled by the many veterans of the U.S. Armed Forces who have helped build America’s foundation and continue to serve our nation and federal community as veteran entrepreneurs and business owners.

One out  every 10 American businesses today is owned by a veteran, and 5.8 million Americans owe their job to a veteran. I’m also honored to be a part of GSA’s ongoing commitment to our veterans through the strong contracting and business opportunities our agency provides.

For centuries, veterans have served our great nation in a variety of ways, and today’s IT realm is no exception. Every day, ITS programs such as Schedule 70 and the Small Business GWAC Division work with service-disabled veteran-owned small businesses (SDVOSB) and government agencies, in need of customized products and services, to provide quality IT solutions. These contract vehicles also help agencies achieve their socioeconomic SDVOSB goals.

Below are some terrific examples of how the service-disabled veteran-owned small businesses of the Veterans Technology Services (VETS) GWAC are supporting federal agencies.

Providing comprehensive life-cycle support to the NEXRAD Network

Using VETS, the National Weather Service, the Federal Aviation Administration, and the Air Force awarded the 10-year MSITS task order to a service-disabled veteran-owned small business. The small business will support ongoing base operations and maintenance for our nation’s Next-Generation Radar (NEXRAD) infrastructure, which is a network of 167 weather-radar sites that (1) provides the foundation for all national weather forecasting and (2) collects data for extreme-weather notification and safety systems, military operations, and emergency-management systems.

Creating and securing a wireless network across the VA

The Department of Veterans Affairs (VA) needed a location-based wireless infrastructure that delivers secure wireless communication across 300 VA sites around the nation. Through the VETS GWAC, a service-disabled veteran-owned small business installed and verified the network, achieving a solution for a broad range of the VA’s data and telecommunications needs.

Marching Onward

To build upon the success of VETS, our Small Business GWAC Division is designing the next-generation VETS GWAC to align with the evolving federal IT marketplace.

Through collaboration with our government customers and the SDVOSB community, VETS 2 will provide your agency the opportunity to work with world-class SDVOSB firms to fulfill your IT service requirements.

Please stay tuned for a series of VETS success stories that we plan to host on our new ITS LinkedIn showcase page.

We also encourage your agency to consider using a small business owned by a service-disabled veteran, whenever you need customized IT solutions. If you have questions about the VETS contract, please contact us at (855) 482-4348 or at www.gsa.gov/vets.

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Regional Telecom

In my last post, we talked about GSA’s issuance of the Enterprise Infrastructure Solutions (EIS) Request for Proposal (RFP) on October 16, 2015.  On the heels of this important milestone, GSA is announcing some changes in our Regional Network Services Program.

The Regional Network Services Program (RNSP) resides within the General Services Administration’s Office of Integrated Technology Services (ITS).  The program provides telecommunications service delivery and technical support for federal agencies nationwide. (GSA services are available in all states and also in Puerto Rico, the Virgin Islands, Guam, Samoa, and the Northern Marianas Islands.)

The program’s FY2015 business volume exceeded $450M managing more than 80 Local Service Agreements (LSAs) or contracts with all major suppliers of telecommunication services, including the largest and most well-known of the LSAs–the WITS 3 Contract.

The Regional Program offers significant economic value to its customers by offering excellent–and in most cases, the best–prices available to government agencies.

The following table shows the average monthly prices for basic telephone service offered by the program in FY2016 and FY2011. As noted, average RNS Program prices have decreased, whereas prices in the broader U.S. economy have increased for business local telephone service. Prices in eight of 11 regions have decreased.

Average Monthly Recurring Charge –
Basic Telephone Line
Region FY2011 FY2016 CAGR*
1 $27.14 $22.76 -3.46%
2 $29.77 $20.21 -7.45%
3 $21.61 $21.59 -0.02%
4 $22.54 $14.40 -8.57%
5 $24.23 $21.38 -2.47%
6 $35.28 $28.65 -4.08%
7 $20.70 $23.32 2.41%
8 $26.15 $31.01 3.47%
9 $28.03 $19.07 -7.41%
10 $17.66 $19.27 1.76%
11 $16.43 $9.29 -10.78%
Program Average
(Regions 1-11)**		 $19.43 $14.41 -5.81%
Producer Price Index-Business Local
Telephone Service***		 $101.80 $108.10 1.21%
  • * The compound annual growth rate (CAGR) provides a constant growth rate over a multi-year period.
  • ** All averages are weighted averages.
  • *** PPI – Business Local Service (Wired Telecommunication Carriers) is tallied by the Bureau of Labor Statistics (Product Code No. 517110-112).

Full-Service Delivery Model

The Regional Network Services Program supports a full-service delivery model in Regions 1-10, where GSA works solely with telecom service providers on behalf of its agency customers. (The WITS3 program in Region No. 11 is an exception; it is a “customer direct order” contract.)

Full-service delivery allows agencies to focus on their missions rather than manage the complexities and risks inherent in telecom/datacom procurement and operations.

Moreover, agencies derive significant imputed savings (stemming from federal agency cost avoidance) when opting for full-service, since GSA assumes responsibility for the following:

  • Providing telecom requirements analysis and specification;
  • Conducting acquisition and “fair opportunity” decisions;
  • Placing service orders for moves, adds, and changes;
  • Transitioning service from one service provider to another (where applicable);
  • Assuring prompt payment to vendors;
  • Reconciling monthly invoices with inventory; and
  • Providing ongoing inventory management and vendor oversight.

As part of the recent introduction of category management, the Regional Program has instituted a common, nationwide fee structure for its services in FY2016. Effective category management makes use of market intelligence and expert guidance in procuring goods and services in the telecommunications category. In addition, category management aims for pricing transparency and simplicity. The Regional Program has accordingly introduced a common program fee structure across all LSAs in Regions 1-10.

GSA is also pleased to announce the extension of the GSA National Capital Region’s WITS 3 Contract effective September 10, 2015 with the WITS 3 contract holders, Level 3 and Verizon. Under the extension, the contract Period of Performance consists of the following:

  • A three (3) year base period (November 8, 2015 – November 7, 2018)
  • A one (1) year option period (November 8, 2018 – November 7, 2019)
  • A final option period (November 8, 2019 – May 30, 2020)

The follow-on contract to WITS 3 and the Regional LSAs is the Enterprise Infrastructure Solutions (EIS) Contract.  GSA is focusing increasingly on transition planning from the Regional telecommunications contracts to EIS.

Agencies should also be working on transition plans.  We look forward to collaborating with agencies for the transition to EIS.

If you haven’t already been in touch with us, please go to the EIS webpages and download the template for transition planning or contact your GSA Technology Service Manager.

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Enterprise Infrastructure Solutions (EIS) RFP is Here!

spinning globe with silhouette overlay of binary code

GSA issued the Enterprise Infrastructure Solutions (EIS) Request for Proposal (RFP) on October 16.  

Issuing the RFP represents a major milestone for government in two significant ways.

First, it means that we are well on our way to providing the federal government the comprehensive solutions based vehicle for telecommunications and IT infrastructure services that our customer agencies need.  

Second, the RFP is a great example of the collaboration and teamwork that allows us to be responsive continually to existing and emerging needs of government and industry. We feel very confident that the results achieved by the EIS acquisition will provide our customers flexibility, choice and convenience, and industry an agile platform for meeting unique agency requirements for the future.

In the spring and summer leading up to the RFP release, we held three information exchange days with industry. Over 150 industry and agency participants attended each session. In addition, we held over 60 one-on-one meetings with individual companies and obtained input from the ACT-IAC NS2020 Working Group and the NS2020 Interagency Advisory Panel (composed of Federal IT and Acquisition Executives). We received over 1,600 comments on the draft RFP that we analyzed. The final EIS RFP incorporates that feedback and comments received from numerous meetings with individual agency CIOs, the NS2020 Executive Advisory Panel, and industry.

I am confident that the final product will give industry flexibility to offer technologically current solutions to agencies at great prices, and agencies will have the flexibility to easily adopt those solutions to meet their mission needs.

We are looking forward to some robust competition on EIS.  It is still our goal to have EIS ready for agency use in early 2017.

Preparing for the Transition

In the meantime, we are focused on preparing for the transition from Networx and our Regional telecommunications contracts to EIS.  The three-year Networx contracts extensions to 2020 give agencies time to transition to EIS. We are also extending many of our local service agreements, including the Washington Interagency Telecommunications Contract 3 (WITS 3), to 2020. It’s imperative that federal agencies complete the transition of all their telecom services to EIS by May 2020 as this is the hard deadline for contract expiration.

Together, industry, agencies, and GSA have a lot of work to do to achieve the May 2020 deadline for transition. We have solicited industry ideas for the most efficient ways to transition services. The transition effort is the next opportunity for agencies and industry to continue the high level of collaboration so far achieved under the EIS initiative.  We look forward to the challenge.  

Agencies should now be working on transition plans and telecommunications services inventories, both essential steps to a timely transition. We are currently working with some agencies on these steps. If you haven’t already been in touch with us regarding transition planning, please go to the EIS webpages today and download the template for transition planning or contact your GSA Technology Service Manager.

Please check out and register on our EIS 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.

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IT on the Acquisition Gateway

You’ll recall my April post discussing Category Management and FAS’s launch of the Acquisition Gateway, a space for acquisition professionals to  learn, connect, and act upon acquisition information, expertise, and advice. It will serve as an important tool to support and improve how the federal community acquires products and services.

When I wrote that post, ITS had successfully launched the IT Hardware and IT Software category hallways. We’ve since launched three more:

  • Telecommunications,
  • IT Services, and
  • IT Security.

Now the Acquisition Gateway has 17 category hallways, all of which fall into one of the 10 civilian-centric categories, which account for 80 percent of total federal spend.

With collaboration and support from our partner agencies, our IT category managers have collected pricing tools and information, guides, best practices, and expert articles that will help acquisition professionals make more efficient IT procurements.

Agile development process

The Acquisition Gateway is based on an agile development process, where software developers prototype early and iterate often, continuously focusing on end-users and the tasks they need to accomplish.

In this case, the development team involves all end-users in a transparent and collaborative development process. Success requires constant collaboration and a continuous process of incorporating user feedback, including customer-contributed expertise and content.

If you’ve visited the Acquisition Gateway in the past few months, you may have noticed new system changes and enhanced services, including:

  • Revamped Homepage – more easily accessible sections
  • Solutions Finder – revamped the solutions matrix to make searching governmentwide-available solutions easier
  • Communities – a place to connect with acquisition professionals and share knowledge
  • Project Center where users can build an acquisition, complete with project details
  • eBuy Open – an interactive web application that displays eBuy RFQ information to users and provides several filtering and search options, which enables users to quickly drill down to desired information
  • TechFAR Hub – a community of practice open to all federal government employees with an interest in successful acquisitions. The TechFAR Hub and the Gateway share the common goals of saving taxpayer dollars, making acquisition more efficient, and improving service to customers inside government and out
  • Prices Paid Portal – an interactive web application that provides users access to selected data sets which can be searched, filtered, and exported
  • Shared Services – A hub to help federal departments and agencies find and leverage existing solutions rather than build new ones

Acquisition professionals and IT experts like you made these enhancements possible.

Over time, category hallways will capture the expertise of users, category managers, and industry experts and will become a more powerful and effective tool as users from across government share content, contract solutions, data, and industry expertise. Currently, only federal government users have access to the Acquisition Gateway.

However, because transparency is important, GSA is creating a public view of the Acquisition Gateway planned for early FY16. The Public view will be available to stakeholders such as industry, state and local government, and citizens.

When it comes to IT acquisition, having a single place to gather market research, connect with experts, and complete data-driven acquisition confidently and efficiently is invaluable. The Acquisition Gateway enables more efficient procurements by leveraging contract intelligence and spending data to facilitate smarter purchasing.  

We are looking forward to implementing the following enhancements soon:

  • Launch a Statement of Work (SOW) library across multiple categories (currently resides in the Professional Services category hallway)
  • Integration of Advantage Select which establishes FAR compliant, pre-competed, “click-and-pay”, contractual vehicles that any Government buyer can use. Advantage Select will enable more competition, more often, on the most commonly purchased commodity items, and then showcases and gives transparency of these products and pricing to the entire Government acquisition/contracting enterprise for the ultimate experience in low cost, streamlined purchasing.  

Get Started

To continue building on what we’ve already accomplished together over the past year, please go to the Acquisition Gateway and share your feedback with us. We need acquisition experts in all government agencies to share their knowledge.

So how can you start?

  • Sign up for an OMB Max account and login to the Acquisition Gateway
  • Tell your co-workers
  • Share your best practices, templates, and expertise
  • Participate in the communities
  • Share your prices paid / transactional data
  • Provide information on acquisition solutions
  • Join us for usability testing to help drive new features. If you are interested in participating in Acquisition Gateway usability testing, please contact Kelly Robinson at kelly.robinson@gsa.gov

For more information or to get involved, please email natasha.sheehan@gsa.gov. Follow us on Twitter @GSA_ITS to join GSA’s ITS’s overall acquisition conversations.

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Collaborating for Better Government

Wikipedia defines “collaboration” as “working with others to do a task and to achieve shared goals.” According to the Free Dictionary, collaborating is a partnership, working as a team, or being in concert.   

For GSA, collaboration is more than just a buzzword or standing at a podium talking to stakeholders. It is a dialog – a give and take that includes understanding and respecting everyone’s needs, goals, and values.

Successful collaboration happens when everyone is committed to the core principles of trust, understanding, and compromise– and the end result is a better outcome for all parties.

Creating the IT Portfolio of Solutions

At GSA, collaboration is a driving force as we re-shape many of our government-wide programs and contracts. For those of you working with GSA, you’ve seen or been part of any number of working groups, industry days, interagency meetings, and requirements teams. You’ve contributed thousands of ideas and comments on our RFIs, draft RFPs and in our Interact communities.  You’ve rolled up your sleeves and helped shape our offerings from adding a new Special Item Number (SIN) on IT Schedule 70, to developing OASIS, Alliant 2, Enterprise Infrastructure Solutions (EIS), Network Services 2020 (NS2020), cloud strategies, identity management solutions, mobility and wireless solutions, satellite solutions, software, hardware and so much more.  

The Government’s shift to Category Management (CM), has also guided our planning and resulting solutions. We have experts that know telecom, software, IT hardware, IT services and IT security. The category hallways within the Acquisition Gateway provide access to many government-wide contracts, tools, pricing information, buying guides, templates, best practices and access to other buyers across government so you don’t have to figure things out on your own and are able to leverage work others have already done.

Our collective work has led to a very clear strategy for GSA’s next generation of IT and telecommunications solutions.  As a result, GSA is implementing solutions that better meet agencies’ needs, provide flexibility in acquiring IT/telecom, provide savings, reduce duplication and are reflective of technology market offerings. The graphic below shows exactly what we’ve mapped out and what we’ve used to guide our solutions development. 

This graphic shows exactly what we’ve mapped out and what we’ve used to guide our solutions development.

Reducing Duplication While Providing Flexibility

Our category management approach ensures that our contract solutions provide different ways to buy technology based on agency collaboration and feedback. We’ve been asked why you see similar technology or services available on more than one of our contracts. Some might say this also results in “duplication” or confusion, but our customers are telling us that they  need flexibility to buy technology products and services in different ways based on what I refer to it as, “the nature of the buy.”  

ITS prides itself on providing both general and niche solutions for IT and telecommunications products and services to federal, state and local agencies.  These solutions draw on GSA’s acquisition and IT expertise and they help our customers by allowing them to direct more resources into focusing on their core missions. About 30% of federal IT spend flows through ITS contracts and programs. We hold ourselves accountable for increasing federal procurement efficiency, reducing costs for both government and industry, and helping government achieve better results.  Reducing overlapping and redundant contracts is important to ITS. We’ve taken a true portfolio approach to planning our solutions and ensuring we provide maximum flexibility for government buyers as they make complex procurement strategy decisions.   

For example, agencies today are procuring wireless services and devices in a number of ways.  Our FSSI Wireless BPAs offer certain terms and conditions, plans, features (such as aggregated pooling of minutes and data) and pricing for services with devices provided as part of the overall solution. On IT Schedule 70, agencies have the option of buying just devices or service plans and devices and constructing their own terms and conditions.  If an agency were to use Networx for the wireless services/devices, they may be doing so to consolidate mobile services on a broader enterprise platform implementation.  

Cloud is another great example. We have cloud-based services available on IT Schedule 70, on our IaaS and EaaS BPAs, through GWACs (especially where integration or transition services are also needed) and through our network services contracts (off premise hosting or data center solutions are examples).  Our network services contracts are telecommunications focused but also recognize broader, related products and services may need to be part of the overall solution. EIS will provide best in class virtual private network services, Ethernet, voice, and managed network services at significant discounts.  These services may also be related to an agency’s enterprise implementation of data centers or call centers — either on-site or cloud-based.  While these are just a few examples, you can see it really doesn’t make sense to try to define, “bucket,” and limit technology solutions to individual contracts.

Guiding Agencies to the best choice

GSA’s job is to understand the market, listen to agency and industry partners, and use what we’ve learned to create solutions. While creating solutions will involve some overlap, we want to act as an honest broker and help agencies get to the best solution for them. Sometimes that includes guiding agencies to other non-GSA enterprise contracts that might be a better fit for their requirements.

We are making it our responsibility to help agencies through the process, especially when overlap could cause potential confusion about which vehicle is optimal for certain requirements. We will accomplish this through our continued proactive management approach with both customers and vendors. Through collaboration, scope reviews, and relationships, we want to better understand the core requirements and make the best acquisition recommendation.

As I pointed out earlier, we don’t take a “one size fits all” approach. If an agency has a cloud requirement that is within the scope of multiple contracts, we will work with that customer to understand their requirements and help assess their acquisition choices. We will make the best recommendation to ensure the agency requirements are being met in the most efficient and effective manner with the highest quality vendors possible.  On contracts such as our GWACs, Networx, and EIS, GSA performs pre-award and post-award scope reviews ensuring requirements are not only within the scope of the contract but that the contract is being used most effectively.  In addition, on our GWACs and on EIS, training is mandatory for contracting officers who use these contracts prior to GSA issuing them a delegation of procurement authority.

Final Thoughts

Even with slight overlap, these vehicles will deliver flexibility to buyers across government through pre-existing, pre-vetted contracts, which ultimately saves government and industry from investing time and money on new and redundant open-market contracts.

A few final, important thoughts I want to share with you about collaboration:

  • Collaboration allows us to be responsive continually to existing and emerging needs of government agencies and industry
  • Continual collaboration is always a goal, often a challenge, and clearly an opportunity
  • We always look for ways to make IT acquisitions seamlessly support agency missions, rather than hinder them. We also work to align to industry partners’ business goals, when they do not detract from government goals
  • Customer convenience, flexibility, and choice will always matter

Please follow us on Twitter @GSA_ITS to join GSA’s ITS’s overall acquisition conversations.

Join us for a live webcast demonstration of the Acquisition Gateway with Q&A on Wednesday, October 07, 2015 at 2 p.m. ET, 1 p.m. CT, Noon MT, 11 a.m. PT. There’s no charge for this training, and you can earn one Continuous Learning Point (CLP). This webcast is open to all and only federal government agency personnel. Register today!

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GSA AdvantageSelect: The Right Product, Right Now

Visit the GSAAdvantageSelect online portal.

 

For this Great Government through Technology Blog post, we welcome special guest author Erville Koehler, Region 4 Regional Commissioner.

GSA is making it easier than ever to use one of its flagship portals, GSA Advantage!, with the addition of GSA AdvantageSelect: a money saving program that makes shopping for pre-competed IT commodities easier and faster. AdvantageSelect draws concepts from category management, agile development, acquisition streamlining, and world class practices from Government and industry and is a game changing initiative for federal buyers. 

From this portal, a contracting officer or purchase card holder need only enter the quantity they require, and can proceed straight to check-out — so buying a commodity is finally as easy as click and pay. GSA has done the work for you by competing these items up front, applying category management principles and utilizing our latest procurement tools.

GSA plans to test two GSA AdvantageSelect offerings this fiscal year:  

  • 22 inch monitors in August 2015  
  • 14 inch laptop in September 2015 based on Strategic Sourcing Group standard configuration  

Category Management – The Path to Select

As part of GSA’s category management initiative, we met with agencies and vendors to determine basic parameters for purchasing commodities. Conversations ranged from small business utilization to ordering methods to life cycle management constraints. A significant step was the development of standard configurations for items like laptops and desktops.

Taking best practices from places like Army, Air Force, and even commercial entities such as Amazon, we rethought our approach to the commodities market and considered the tools available to us. We realized we already had many of the components to create a better buying portal, we simply needed to modify and re-purpose them.

Agile development – concept to production in less than four months

Agile development techniques were applied to systems development and the acquisition process itself.  Our goal is to test concepts on a small scale quickly, evaluate results, and proceed based on the results. For 22 inch monitors and the standard 14 inch laptop configuration, we are actually testing different procurement approaches and systems at the same time. For monitors, we are using e-buy, included quantity price breaks, and a classic GSA Advantage! upload method. For the laptop, we are using the GSA Reverse Auction Platform, no quantity price breaks, and a new GSA Advantage upload method. Although the tests are small, the data is a critical component in determining  our approach going forward.

Conceptually, the underlying GSA AdvantageSelect procurement will result in a short duration single award vehicle that will be posted to GSA AdvantageSelect.  “Short duration” will likely be defined by category or commodity to be consistent with production from an industry perspective, and life cycle management from an Agency perspective. Monitors which are plug and play could be relatively short (e.g., 3 months), whereas, a laptop which require more configuration might be a little longer (e.g., 1 year).

Moving forward – a place for businesses large and small

After the monitors industry day, interest in GSA AdvantageSelect was high, but small business concerns were raised. Fortunately, the regulatory framework offers an array of options to ensure small business remains a healthy part of the industrial base. In the future, the GSA AdvantageSelect program will expand and include competitive acquisition strategies so that multiple product offerings can be awarded not only using full and open competitive procedures, but also solely within the various sub-categories of small businesses, thus providing our customers with multiple product offerings from the entire socio-economic spectrum of industry.

As we continue testing the portal, meeting with customers, and conducting industry days, AdvantageSelect will evolve. Few things are set in stone at this point, however three goals remain in sharp focus: robust small business participation, savings for commodities purchased, and a streamlined acquisition process.

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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.

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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.