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Schedule 70 Cloud Special Item Number (SIN), the Cloud One-Stop Shop

Federal, state and local agencies looking for cloud solutions now have a new and easy way to find and acquire commercial solutions to meet missions, achieve efficiencies and savings, and comply with federal mandates such as Cloud First.

On April 29, GSA added Cloud Special Item Number (SIN) 132-40 to IT Schedule 70.

It’s like being able to shop at a “cloud one-stop shop” on IT Schedule 70. And agencies that want additional or custom IT and cloud options can still easily shop the entire IT Schedule 70 and GSA’s other governmentwide contracts.

For an even broader choice in IT solutions, agencies have access to the new Acquisition Gateway, providing them with governmentwide contracts, pricing data, templates, best practices and more.

Stocking the Cloud SIN Shelves

The cloud SIN has several sub-categories: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

Industry suppliers are encouraged to submit proposals so they can be included as IT Schedule 70 cloud SIN partners. View the  IT Schedule 70 solicitation for instructions on how to develop and submit proposals for the cloud SIN by following IT Schedule 70 procedures.

GSA will help smoothly transition existing IT Schedule 70 cloud services industry partners to the cloud SIN.

Cloud Efficiencies, Savings, Modernization

Cloud IT is one of the most important technology trends we have access to today. In fact, this year Deltek’s Federal Industry Analysis team predicted that spending on federal cloud computing services will climb rapidly over the next five years, hitting $6.5 billion in fiscal year 2019 (FY 19).

Cloud has huge potential for savings. It also gives government a flexible and efficient alternative to replace costly, outdated legacy systems. Agencies benefit from pay-for-use services that expand and contract according to need, rather than requiring bigger investments in less flexible and more costly infrastructure and resource investments. The new cloud SIN and the industry solutions behind it, enable exactly that.

The cloud SIN will be critical to help agencies acquire cloud easier and faster by:

  •      providing a single SIN for all cloud needs instead of hiding them across multiple Schedule 70 SINs,
  •      allowing agencies to more easily create custom cloud BPAs, and
  •      bringing new and evolving cloud technologies to market faster.

Clear Path to Access Cloud

The cloud SIN offers a clear path to cloud services. It gives buyers the ability to more easily differentiate between cloud technologies and buy what they need.

The SIN is designed to be the first stop for agencies to identify cloud solutions and suppliers that will satisfy NIST’s five essential cloud characteristics.

Agencies will find a growing list of cloud options available through the cloud SIN as GSA continues to add suppliers over the coming months. Agencies will be able to go to eBuy and GSA Advantage! to search for ‘SIN 132-40” to locate cloud options, suppliers, pricing for further action and negotiations, and make purchases.  And use eLibrary and search “SIN 132-40.”

Buyers looking for cloud solutions can also use Cloud Blanket Purchase Agreements (BPAs), Governmentwide Acquisition Vehicles or refer to the Cloud Technology webpage for more cloud computing resources.  And more and more of our solutions are  Federal Risk and Authorization Management Program (FedRAMP) compliant providing an additional level of security and cost savings.

Follow us on Twitter @GSA_ITS for updates on our cloud offerings and everything going on with our IT and telecommunications solutions.

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EIS Takes Big Steps to Collaborate

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

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

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

Attend Information Exchange Days

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

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

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

Join EIS Interact Community

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

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

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

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

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

Collaboration is Shaping EIS from the Start

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

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

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

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

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

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

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

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

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Connecting with ITS

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

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

Check out what’s new  — The Acquisition Gateway

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

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

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

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

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

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

Resolving Your Issues

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

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

 

Stay Tuned

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

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

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

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

We Value Your Feedback

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

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

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Big News for Govt Telecom, IT, Infrastructure

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

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

Our goals with EIS are:

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

Give Us Your Input on the Draft RFP

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

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

Next steps will include:

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

Networx Extensions: Next Steps

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

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

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

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

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

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

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

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

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

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GSA Solutions to Help Federal Agencies Comply with White House Cybersecurity Mandates

The government faces cyber attacks daily and we’re all sensitive to the importance of securing government information. To ensure our data is protected, there are long standing and recent federal mandates and guidelines in place to secure federal information systems. As quickly as the cybersecurity space changes, it can be challenging to keep current and stay protected.

At GSA, we offer a suite of cybersecurity products, services and solutions to help agencies comply with mandates and enhance security of our federal systems.

Below is a video from GSA’s Center for Strategic Solutions and Security Services, featuring Acting Director Shon Lyublanovits. In the video, Shon provides an overview of the current White House initiatives as well as GSA solutions that help federal agencies comply with cybersecurity mandates.

View the video on YouTube: http://youtu.be/KQXES4BwYf4

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

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Small Business GWAC Program

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

Small businesses are the backbone of job growth and constitute a major force in the U.S. economy. They generate a vital portion of our gross domestic product (GDP) and contribute to growth and vitality of economic and socioeconomic development. In particular, small businesses create jobs and spark innovation, which complement the economic activity of large organizations by providing them with products and services that contribute to their bottom line.

Here at GSA, we pride ourselves on helping the government utilize small business. We have multiple acquisition vehicles that connect government to small business. This provides agencies the flexibility to choose the best acquisition vehicle to meet their need. Some of these vehicles reside in our Governmentwide Acquisition Contracts (GWAC) program.

Small Business (SB) GWACs provide powerful and flexible contracts that support agencies’ complex projects and requirements. These contracts experienced a tremendous amount of growth in FY 2014. Total business volume growth increased by approximately $400M on our three active SB GWACs, comprising 8(a) STARS II, Alliant Small Business, and VETS, from FY13 to FY14; an increase of approximately 19%.

Scope Reviews: Lowering risk and increasing customer support

Part of that increase is due to our complimentary scope reviews for statements of work (SOW). The team works with agencies to help determine whether requirements are within scope of a GWAC within two to five business days. This service reduces the risk of protest.  The Small Business GWAC Pre-award Scope Review Team recently analyzed the pre-award scope review process to see how our contracts are being used.

The number of pre-award scope reviews conducted on our active small business GWAC increased by 12% (253 to 287) from FY13 to FY14.  Across all three of the small business GWACs, IT Support Services is the predominant type of work being considered.

During FY14, GSA conducted 285 reviews and performed those reviews in 1.3 days on average. Retrospectively, the scope review process provides a clear understanding of the requirements, establishes a baseline for proposal evaluation, reduces evaluation and negotiation time, and most importantly minimizes the need for future changes. Understanding the trends of these scopes gives us a better understanding of how to promote small business contracting and satisfy our customers’ needs.

Buying Trends

Some of the most popular uses were for IT Support Services like Help Desk, software maintenance, and system operations.

Small Business GWACs represent 45% of GSA’s total GWAC obligations for FY14.

  • The Alliant Small Business Program experienced a 17% increase in obligations for FY14 compared to FY13.
  • 60 of 80 Alliant small business primes have at least one task order award
  • The 8(a) STARS II GWAC is the follow-on to the very successful 8(a) STARS GWAC.  The contract was awarded August 31, 2011 and resulted in 645 awards in FY14 with over $641 million in obligations.
  • The 8(a) STARS II Program has seen a 41% increase in obligations for FY14 compared to FY13.
  • The Veterans Technology Services (VETS) GWAC has obligations from 16 different federal agency customers.  All contract holders have received task orders totaling over $1 billion in obligations. In FY14, VETS added 14 task orders with $17.1 million in obligations.

Looking Ahead

The future of Small Business GWACs is bright. We’ve seen agencies increase the use of our GWACs to reach their small business goals and meet their IT demands, and we’ve seen businesses grow beyond their small-business designation due to their participation on our program.

This next year is going to be an exciting time for our Small Business GWACs. We’re going to continue to exceed customer expectations by bringing additional value like our complimentary scope reviews and prices paid data. Our flexible vehicles and focus on customer service should help us continue to expand the usage of these vehicles as we look into the future toward our next generation Small Business GWACs.

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

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Schedule 70 in the State and Local Market

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

State and local governments are adopting Schedule 70 at a rapidly growing rate. They have the ability to receive the same benefits that federal agencies receive when using Schedule 70: fast and easy acquisitions and access to a large range of pre-vetted vendors at prices determined to be fair and reasonable.  The program is called the Cooperative Purchasing Program and allows state and local entities to use Schedule 70 and Schedule 84.

State and local: by the numbers

  1. Growth: The usage of Schedule 70 by state and local governments increased almost 30% last year to $846 million in volume. The projected IT spend at the state and local level has increased over the past couple of years, and the growth of usage of Schedule 70 has outpaced that growth.
  2. Outreach: GSA has increased overall focus on outreach and training to state and local governments on the use of Schedules 70 and 84.
  3. Local vendors: An enormous benefit to state and local governments is access to companies in their local communities.  Schedule 70 has thousands of vendors located across the US and many state/local entities encourage local businesses to consider GSA Schedule as an option.  80% of the companies on Schedule 70 are small businesses and GSA can provide support to those companies seeking to obtain a Schedule contract.
  4. Positioned for future growth: for state and local,  growth in spend is occurring in areas such as software, IT services, systems, and IT outsourcing. These are areas that we expect to see continued future growth in state and local markets.

Improving efficiencies in all levels of government

The state and local IT market is valued at over $60 billion. Although the market is significantly more fragmented than the federal market, GSA is ready to help all forms of government become more efficient, spend smarter, and support delivery of services to the citizens. We will continue to work with local governments and vendors in an effort to drive greater value for the taxpayer.

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

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FY 2014 Delivers Enterprise Growth in Wireless

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

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

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

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

Cost Savings, Choice, and Efficiency

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

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

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

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

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

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

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

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

Wireless Buying Trends

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

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

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

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

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

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

 

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Alliant GWAC: Exploring Success

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

The GSA Alliant GWAC had an outstanding year helping agencies achieve their mission through a fast, flexible, and safe acquisition vehicle. Agencies obligated  $2.682 billion dollars to Alliant during FY14, 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. The success can be attributed to several factors that deserve a closer look.

Alliant FY14 Success Analytics:

Since contract inception, more than 60 agencies have used Alliant and awarded an estimated $18.7 Billion in task order value.  Fourteen agencies used Alliant for the first time in FY14. This steady growth can be attributed to numerous factors. For example, approximately 1200 federal acquisition & program professionals have received the Alliant GWAC Delegation of Procurement (DPA) training to including 229 just in FY14 – an 18% increase in buying power! Lastly during FY14, 85 Statements of Work (SOWs) were submitted for review.

Top Agencies and Vendors:

The top three agencies utilizing Alliant (obligated dollars) are the Department of Homeland Security at $2.74 billion, the Air Force at $2.70 billion, and the Department of State at $2.52 billion. The Army comes in at a close fourth at  $2.24 billion, marking a significant task order increase of 47% between FY13 and FY14.

Currently, SAIC is the dominant vendor with over $1.6 billion in obligations spread across 42 task orders. Booz Allen Hamilton Engineering Services follows with $720 million across 43 task orders, increasing its capture by more than 60% over the past three years according to a recent study conducted by Govini. Northrop Grumman follows suit with $550 million across 36 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 taxpayer money. Our pre-competed vehicle consists of 58 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, 50 out of 58 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 58 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 partake 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 through 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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Looking at Year-End Telecommunications Insights from Networx

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

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

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

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

Annual Networx Buying Trends

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

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

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

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

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

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

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

 

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

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

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

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

Delivering Cost Savings

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

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

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

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

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