Transforming Government IT Procurement: Better Contracting Initiative Priority 2

As part of our ongoing efforts to modernize government IT procurement and management, the Better Contracting Initiative (BCI) has been a cornerstone of our strategy at the Governmentwide IT Program Management Office. Today, I am excited to discuss the strides we are making under the BCI, particularly Priority 2, which focuses on negotiating common enterprise-wide software licenses.

We’ve embarked on a journey to streamline how our federal government procures and manages its software assets. Our new Governmentwide Acquisition Strategy initiative not only aims to enhance operational efficiencies but also to achieve substantial cost savings and increase buying efficiencies.

Strategic collaboration and enhanced efficiency

Our approach under Priority 2 of the BCI involves collaboration and strategic negotiation directly with Original Equipment Manufacturers (OEMs), which are essential in managing the government’s vast array of IT resources. By centralizing our engagement processes and encouraging industry to view government agencies as “one customer,” we are ensuring that all government agencies, large and small, benefit from the best possible terms and prices, avoiding the inefficiencies of fragmented and duplicative contract terms.

IT Vendor Management Office’s role in the Governmentwide Acquisition Strategy initiative

The IT Vendor Management Office (ITVMO) has been instrumental in this effort, spearheading direct engagements by developing partnerships with OEMs, conceptualizing solutions for governmentwide challenges, negotiating resolutions, and establishing guidelines that will serve as the benchmark for software procurement across federal agencies. The Governmentwide Acquisition Strategy initiative is truly a governmentwide endeavor.

Steps to success

The ITVMO first identifies target OEMs by soliciting quantitative and qualitative data from all 24 Chief Financial Officers (CFO) Act agencies. Using analysis of governmentwide spend and the gravity of common OEM-specific challenges, the ITVMO recommends an OEM to address, which is then validated and approved by government leadership.

The ITVMO then collects contract data from all 24 CFO Act agencies and performs significant analysis on terms and pricing to identify inconsistencies and abnormalities (both good and bad). With the help of a Governmentwide Integrated Project Team, the ITVMO builds a list of best-in-class terms and target pricing to pursue via a variety of recommended solutions.

After a comprehensive review and discussion of these recommended solutions through a Civilian Service Acquisition Workshop, which further supports implementation of BCI through Prong #3 focusing on getting requirements right the first time which will avoid waste and save financial resources, the CFO Act agencies and the ITVMO works to finalize a set of governmentwide requests for the OEM.

Finally, the government engages the OEM in a collaborative fashion by walking decision-makers through the government’s challenges and recommended solutions for the purpose of cooperative adjustment and, ultimately, acceptance of our governmentwide concepts through modifications to all governmentwide acquisition vehicles so that all federal entities get the benefits of our “one customer” approach.

Consistency in contracts = Better contracting

The initiative is part of a broader effort to not only manage costs but also to ensure that the software we procure is secure, reliable, and meets the diverse needs of the federal workforce. To that end, we’ve made significant progress in identifying key areas where terms and conditions can be standardized to benefit all agencies. Our focus has been on improving license flexibility and mobility, enhancing cybersecurity measures, and implementing cost-effective pricing strategies. The feedback from various stakeholders has been overwhelmingly positive, indicating strong support for a more unified approach to software licensing in the federal sector.

Looking ahead

As we continue to advance this initiative, the insights gained from our ongoing discussions and negotiations will inform our strategies, ensuring that the federal government remains a prudent and effective purchaser of IT resources. To that end, the ITVMO is putting together a guide for agency acquisitions, specific to critical OEMs, to ensure broad recognition and adoption of the best-in-class practices we learned about throughout the Governmentwide Acquisition Strategy process. The goal is not only to save money but also to improve our IT infrastructure, making it more responsive to the needs of our agencies and the public.

The Better Contracting Initiative is a testament to our commitment to innovation and excellence in government IT procurement. With Priority 2, we are setting new standards for how the government collaborates and negotiates in the IT realm, ensuring better outcomes for all our stakeholders. Stay tuned as we continue to make strides in transforming government IT procurement for the better.

Visit our website to learn more about how ITC is addressing the BCI through the ITVMO.

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Better Process, Price through Government-wide Strategic Solution (GSS) for Desktops and Laptops Program

We pride ourselves on providing federal agencies with IT solutions at the best value through an efficient buying experience.

To further improve the buying experience, the Governmentwide Strategic Solutions (GSS) for desktops and laptops program formed a partnership among procurement teams from agencies across government. Working closely with our industry partners, the GSS team negotiated better terms and conditions, more consistent pricing, and a streamlined buying process for federal, state, and local governments.

The government depends on desktops and laptops every day to accomplish its mission. More than $1 billion is spent annually on this critical IT hardware. Most of this $1 billion is spent on similar desktop and laptop configurations from the same original equipment manufacturers, but spread across thousands of different contracts.

The Workstation Category Team, established by the Office of Management and Budget (OMB), worked closely with agency and industry stakeholders to create GSS standard configurations. They’re designed to meet 80 percent of the government’s desktop and laptop requirements, helping the government aggregate demand and use its consolidated buying power.

How’d we do it?

The category team worked to ensure participating contractors offer the full breadth of GSS-compliant desktops, laptops, options, and accessories through their IT Schedule 70 contracts. Also, GSA Advantage catalogs for GSS desktops and laptops were fully overhauled to clearly show compliant machines, with full descriptions and a menu-driven option and accessory configurator.

To make buying these products quick and easy, IT Schedule 70 awarded three multi-agency (government-wide) single-award Blanket Purchase Agreements (BPAs) to support OMB’s GSS Desktop and Laptop category management strategy.

These BPAs are recompeted annually to ensure the latest technology is available in a GSS-compliant configuration, at the most competitive prices in government.

These three BPAs are available via the GSA AdvantageSelect buying platform.

Better Buying for the Future

GSS program use has increased nearly 700 percent over the last two fiscal years. At the same time, use of our AdvantageSelect GSS BPA has increased by 400 percent from FY17.

The discounts realized through the competitive process encouraged this growth. Agencies executing large-quantity purchases through GSA’s GSS Program in FY18 have realized discounts of up to 40 percent off GSA contract ceiling prices.

To make sure everyone hears about this, GSA’s IT Hardware Category Management team hosts regular training sessions that tell agencies how to maximize savings and buying power for obtaining GSS-compliant desktop and laptop computers, as well as options, accessories, and peripherals at competitive prices.

These webinars make it easier for agencies to benefit from this outstanding program; learning more about simple purchasing options is especially important to government buyers as we near the end of a fiscal year. To learn more about the configurations and contracts and to make your purchase, see GSA Advantage or the Acquisition Gateway.

For GSA GSS Desktop/Laptop help, please visit our webpage or contact workstations@gsa.gov

Please follow us on Twitter @GSA_ITC and LinkedIn to join our ongoing conversations about government IT.

My Q & A with the IT Industry – What’s Working and What Could be Improved in Federal Acquisition

(Byline: Mary Davie, Government-wide IT Category Manager)

I recently met with more than 50 representatives from the top IT services companies and talked about the good and the bad in federal acquisition. Some of the discussion was surprising … some not so much. The key takeaways include some changes that are fairly simple for government to implement, yet have big impacts.

1. Government acquisition and program personnel need to be more accessible and increase communications regarding requirements and procurement timelines. Industry told me government program/acquisition personnel rarely respond to requests to discuss programs, requirements, and agency priorities in order to develop proposals and solutions or offer alternatives.

GSA’s Information Technology Category has made extensive use of RFIs, draft RFPs, industry days, one-on-one meetings (over 100 individual meetings on Alliant 2 and EIS) and collaborative platforms such as interact.gsa.gov for collaboration and input. I’ve heard many times from government reps that they don’t have time or don’t know how to handle sharing with multiple companies since sharing has to be handled equitably.

I’m here to tell you we have to find time to meet with industry. There are many ways to share information equitably. GSA spends an extensive amount of time communicating and collaborating to develop all of our governmentwide contracts to ensure we get as much input and feedback as possible. The governmentwide IT category and sub-category teams (Mobile, Software, and Laptop/Desktop) are also spending lots of time conducting industry days, participating in technology demonstrations, and meeting individually with companies. And the Office of Federal Procurement Policy (OFPP) encourages federal program and acquisition representatives to interact with industry as much as possible – they’ve issued three Mythbusting memos on the subject.

So my advice is to establish relationships and regular forums for communication with your industry partners and potential partners. The Alliant PMR and shared interest groups that have formed under the contract were called out as a best practice, and, unfortunately, are rare practice for government contracts.

Agencies should seize the opportunity inherent in active program management to help make the contract successful. GSA’s Alliant program and contracting staff are in constant communication with the industry – they share contract data, potential agency opportunities on the contract, outreach and training to agency customers, account management and agency buying trends; meet many client-facing GSA representatives; and provide a place for industry to resolve issues and challenges in a trusted environment.

Without spending time upfront to talk about what we need with industry, we aren’t going to get good competition or the innovative solutions we are looking for. I think open communications often comes from a feeling of safety and having top cover, and our government leaders need to provide that encouragement to our workforce.

2. e-Tools and Repository of Solicitations. Many agencies do an excellent job of using one system to post opportunities and retain statements of work and proposals in an historical repository. This is a great practice that reduces cost and provides clarity to industry about past requirements and incumbent contractors – things that are important to them as part of their bid/no-bid decision process. One participant said this about the Navy’s SeaPort-e system:

“You can see a changing dynamic in a scope of work and what solutions a customer is looking for. That transparency is robust enough to do a real analysis to understand that customer even better.”

That’s what we strive to do for the governmentwide category management efforts: share data and information, conduct more robust market research, and provide a platform like the Acquisition Gateway so agencies and industry have one place to go to find information pertinent to all agencies and across categories.

3. Statements of Work vs. Statements of Objectives. Government, in general, is still prescribing the HOW we want work to get done and what kind of people we want on the job (i.e., prescribing labor categories), rather than describing what we need and what the outcome should be.

Industry reported that they still see voluminous, prescriptive RFPs instead of simpler statements of objectives. When government uses the prescriptive RFP, it makes it harder for industry to offer innovative solutions – yet the government regularly says that’s what it wants. We need to train our folks to write statements of objectives and then how to manage contracts for outcomes and performance. It’s harder to do, but it’s where we need to be.

The industry unanimously agreed that GSA’s FEDSIM does a great job of this. FEDSIM conducts IT and professional services procurements on behalf of other agencies using a true Integrated Project Team approach. They bring in program, technical, acquisition, and legal staff to work with customer agency staff on requirements development and drafting the solicitation. In addition, FEDSIM uses standard acquisition processes and templates, and works very closely with industry to provide opportunity pipeline information and conduct market research during presolicitation (Check out their new website and you’ll see what I mean.). They write in clear performance-based terms and employ trained project managers and CORs to manage the projects after award.

Industry also pointed out that the way government structures smaller requirements often requires the same level of effort from industry to bid. So the tendency is for industry not to bid those requirements and instead spend their time bidding larger opportunities. This results in reduced competition and fewer innovative solutions for government on the smaller requirements.

4. STOP issuing Requests for Information asking for corporate capabilities! If an agency is going to use an existing contract, there is no need for capabilities RFIs. Agencies should be focused instead on asking for a few key pieces of information regarding the requirements themselves. Industry spends lots of time and money responding to general RFIs and then rarely ever get any information or response back from the government. This should be part of the market research and pre-solicitation process.

Another bad, costly, and confusing practice is for government to issue the same RFI against multiple contracts. Industry feels compelled to respond to all of them because of the uncertainty of where the requirement might end up. Unfortunately, this is a very costly and time-consuming practice.

With the Acquisition Gateway, agencies now have a single place they can find government-wide and agency-specific contracts for specific categories of spend. This should really help eliminate those general RFIs.

Using a tool like Interact provides a great way to share information online and let government and industry respond and ask questions – everyone has equal access. But government should still make time for those in-person discussions.

5. Things that drive up cost – Schedule slips and procurement delays. Industry budgets a certain amount of money each year for bid and proposal costs. As government delays the process, it extends the time industry must spend to pursue the work. It also comes with opportunity costs for not being able to bid on other work. This isn’t helpful if we want highly qualified partners who can bring us innovative solutions.

Requiring industry to provide references and agencies to fill out questionnaires on past performance. Industry questioned the value of government requiring past performance information as part of the evaluation process in the manner it typically uses. We all agree that both experience and past performance are critical factors. For the governmentwide contracts, the value is to offer qualified companies with strong program management and technical capabilities, so experience and past performance are both critical parts of the qualification process.

Systems like Contractor Performance Assessment Reporting System (CPARS) and Past Performance Information Retrieval System (PPIRS) can be used for at least part of what the government needs in the evaluation process, but another alternative offered was reciprocity across government in sharing contract Quality Assurance Surveillance Plans.

Industry estimated that the process used by the OASIS and Alliant 2 teams (a combination of FPDS-NG reports, CPARS/PPIRS reports, and past performance surveys only if a CPARS/PPIRS report was not available) saved between 40-70% in offeror bid and proposal costs.

Guessing at the cost of the requirement. Industry shared that a best practice is to publish the range of estimated costs the government thinks (and is willing to spend) to do the job directly in the solicitation. Part of the rationale for this is that the government isn’t writing clear requirements and isn’t sharing enough information for industry to be able to “guess” what the government is asking. Another reason this makes sense is that the amount that the government is spending is already public. Rather than falling into the “Price to Win” trap, leveling the playing field allows the government to select what is truly the best value .

GSA’s FEDSIM organization has used this practice successfully for years (I did it when I worked at FEDSIM 20 years ago). When the range is provided, industry can determine the kind of solution they can bid for what the government can spend.

6. Protests. As you might imagine, this topic brought lots of energetic discussion. Wrapped up in the topic are industry-government communications, risk, quality, and company strategy.

Industry suggested that government should improve relationships and communication. This includes sharing more information and being accessible in the pre-solicitation phase, writing clearer requirements, and allowing for in-person debriefs. As a result of these activities protests may decrease.

Our government representatives didn’t quite buy it. They pointed to cases in which those things were taking place and yet we still received protests. There was clear agreement from both government and industry that protests are often used as a strategy by an incumbent company to buy more time and income.

The group then discussed using something like a protest bond or fee that a company would have to pay if they lost a protest, hoping to encourage only protests that were charging substantive deficiencies or issues.

I don’t think much of what came up in our discussion was a surprise to anyone; however, I truly appreciated industry’s candor and how they gave us an opportunity to share and learn from this feedback. Both government and industry have responsibilities in federal acquisition,both parties can make improvements. Small changes can have big impact.

GAO Denies Pre-award Protests Against Alliant

I am pleased to announce that we are continuing with the evaluation and award (planned for Fall 2017) of GSA’s $50 billion Alliant 2 Governmentwide Acquisition Contract (GWAC). Our decision follows the recent decision by the U.S. Government Accountability Office (GAO) to deny four companies’ protests to our new source selection methodology and the number of contractors to be awarded.

Alliant 2’s innovative evaluation methodology is characterized as  “highest technically rated, with fair and reasonable price.” It achieves best value under Federal Acquisition Regulation (FAR) part 15.101 by identifying offerors with the most relevant technical expertise who propose fair and reasonable pricing.  The method was pioneered by GSA’s OASIS (One Acquisition Solution for Integrated Services and further developed under the Human Capital and Training Solutions (HCaTS) and Alliant 2 programs.

In their decision, GAO stated that they found “…no basis in the FAR to object to a proposed source selection process that contemplates award to the highest technically rated offerors without using a tradeoff process.”

GAO further commented that FAR Section 1.102(d) permits reasonable exercise of the contracting officer’s discretion, recognizing that if a procurement strategy is in the government’s best interest, and is not explicitly prohibited, then the innovative procurement process is permissible.

GAO Decision Impact

GSA’s innovative source selection methodology on the Alliant 2 solicitation was directly challenged through several pre-award protests to GAO. However, GAO found that the methodology is valid, not objectionable, and supported by the discretion afforded contracting officers when they use the FAR. This decision affects IT acquisitions significantly.

This unprecedented decision reinforces the fact that government has the flexibility to try new and innovative source selection methodologies, among other things. As a proactive partner with federal agencies, GSA is always willing to try new ways to better serve government and improve mission delivery.

Our goal is to create comprehensive IT solutions available from the very best companies.

Ongoing Partner Engagement

We engaged both government stakeholders and industry partners from the beginning of the procurement process, and conducted extensive acquisition planning and market research to determine how to best structure the Alliant 2 GWACs. We always strive to maximize our collaboration with federal agencies and industry in order to identify the most advantageous structure for our contracts and to incorporate their ideas.

You may also remember a previous blog about Alliant 2 (including Alliant 2 Small Business) describing how much effort the team put into ensuring robust transparency, collaboration, and innovation at each phase of the process, especially during Alliant 2’s pre-solicitation phase.

These outreach efforts included:

  • Establishing an Alliant 2 Interact community with more than 8,000 members,
  • Providing a government-wide reviewed business case on OMB MAX,
  • Conducting meetings/presentations for interested agencies.
  • Coordinating agency customer and industry working groups,
  • Hosting five separate pre-proposal conferences attended by over 1000 people, and
  • Publishing seven Requests for Information (RFIs) through FedBizOpps (FBO) with two official industry days, and two separate fully comprehensive and complete draft Requests for Proposals (RFPs).

I know that the Alliant 2 and Alliant 2 Small Business contracts will meet the needs of federal agencies for IT services and will include a diverse set of highly qualified industry partners.

Download and read the entire GAO decision.

Read more about Alliant 2/Alliant 2 Small Business and the A2/A2SB Interact Community.

Please follow us on Twitter @GSA_ITC and LinkedIn to join our ongoing conversations about government IT.

Acquisition Gateway – Act as One for Smarter Acquisition

This blog post is Part II of a seven-part series reviewing the Acquisition Gateway and IT Category data, trends, expertise, and advocacy that GSA’s ITC organization offers to support other agencies’ missions.
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2016 was a landmark year for the Acquisition Gateway. To start, we reached 10,000 users, and counting! Even more important, acquisition professionals across the federal government contributed to the Gateway’s success. From sharing sample templates to participating in usability testing and design workshops, agency experts brought insight from every corner of the acquisition lifecycle. Together, we built an online workspace packed with category-specific tools, expertise, data, and content.

We’re excited to celebrate this achievement as one acquisition community, and I want to personally thank those of you who either contributed to the IT Hallway or logged in to explore. As I wrote in a previous post, the Acquisition Gateway supports category management by expanding the use of high-quality, high-value strategic sourcing solutions to improve the government’s buying power and reduce contract duplication.

Acquisition professionals visit the Gateway to:

  • Find advice, market intelligence, and acquisition sources in the IT Hallways,
  • Gather and download samples and templates in the document library,
  • Search and compare government-wide contracts in the solutions finder, and
  • Access various tools and price indexes in eBuy Open and the Prices Paid Portal.

Whatever your need, the Acquisition Gateway has all the helpful information and search tools to help you navigate the process and the universe of purchasing options.

IT Hallways

Two years ago when the Acquisition Gateway launched, IT Hardware and IT Software were two of the three category hallways that went live. Today, you can find 19 hallways aligned with the 10 common federal government nondefense spend categories.

The IT category now houses six hallways:

  • IT Hardware
  • IT Software
  • IT Security
  • IT Outsourcing
  • IT Consulting and
  • Telecommunications

The IT Hallway welcomed over 3,000 visits last year. Each visit provided an opportunity for an acquisition professional to experience a neutral, unbiased repository and community of practice. We packed content and expert advice into more than 150 articles in collaboration with acquisition experts across government. There were more than 2,800 views of IT-specific articles, covering topics from Governmentwide Strategic Solutions (GSS) for Desktops and Laptops Initiative to Negotiating Cloud-Based Contracts.

Document Library

The Gateway continues to evolve thanks to acquisition expert feedback and contributions. For example, what started out as a Statement of Work (SOW) library has now expanded to an ever-growing document library with 50 new document types to choose from across all phases of the acquisition process. Since its expansion this past summer, the document library has been viewed more than 3,500 times. Today, you can find 100 IT category-specific documents alone and can contribute new documents of your own directly into the library with a few simple clicks.

Solutions Finder

The solutions finder, which began as a spreadsheet covering a handful of governmentwide contracts, is now a robust search tool. It allows you to find and compare 100 IT solutions out of more than 200 governmentwide contracts, purchase agreements, and shared services. For example, a quick search for “IT Software” with the selected agency as “Navy” provides 25 governmentwide contracts to choose from. Users can filter and compare multiple contracts to include the description, solution type, fee information, expiration date, points of contact, available offerings, and prices paid information, just to name a few.

Monique Davis, a Human Resources Specialist with the Office of Personnel Management, visits the Acquisition Gateway daily. “I am currently working to place human capital project management support; I use the Gateway to research potential solutions,” she said. Davis has more than 15 years of acquisition experience and finds that the solutions finder is the feature she uses most to support her day-to-day activity. “The acquisition gateway allows me to research and compare different contracts / solutions, decreasing the amount of time I spend on market research for a particular requirement.”

eBuy Open and Prices Paid Portal

While the Acquisition Gateway has added more IT category hallways and more information articles in the document library, and has given users a more robust search tool, the Gateway also empowers agencies by giving them access to acquisition information, data, methodologies, and tools so they can make good decisions.

“Being able to access eBuy Open through the Acquisition Gateway is invaluable to me and my program. It allows me to research and analyze open, closed, and cancelled Requests for Quotes (RFQs) submitted through GSA’s eBuy system. From a review standpoint, it’s a great way to support my staff and apply checks and balances,” said Jeffrey Hale, a small business officer for the National Oceanic and Atmospheric Administration’s Acquisition and Grants Office. (Hale gathers information and resources to advise management on small business procurement policies and regulations).

Since March 2016, users visited the Prices Paid Portal more than 9,000 times. It enables agencies to use taxpayer dollars more efficiently because they show contract intelligence and spending data so agencies can make informed purchases.

Lynda Potters, a program manager for the U.S. Navy, and her team, negotiates agreements for Enterprise Software Licensing (ESL) and Enterprise Software Initiative (ESI). The Gateway allows them to identify potential cost savings and help ensure the federal government uses its purchasing power to get the best prices possible.

“With the Prices Paid Portal, we can access different views than our web sites,” Potter said. “Without it, we can only access [U.S. Army, Navy, and Air Force] data. It allows us to see agency data across the federal government, which gives us a much broader picture when gathering market research or assisting customers.”

When a customer wants a particular product that isn’t Navy-specific, the Gateway allows Potters’ team to gather the information they need to find a product they can use.

“We visit the Gateway to see what types of agreements exist, where spend exists,” Potters said, and added “We have access to pricing data, but find the way the data is analyzed and displayed on the Gateway very helpful. The display features and filters make it easy to use when conducting market research.”

Next Steps

Success requires constant collaboration and a continuous process of incorporating user feedback, including customer-contributed expertise and content. Our approach means we can keep improving the site without taking it down for repairs. Among some of the anticipated changes in the next release, users can expect:

  • Expanded development options to integrate new apps
  • New tutorials for the Gateway and its tools
  • Robust document library content and expanded filtering capabilities
  • Enhanced milestone management within the project center and
  • Improved search capability in the hallways.

Learn and Earn CLPs with Acquisition Gateway U

Beginning January 23, we are hosting Acquisition Gateway U, a two-week series of webinars designed to help you get the most from Acquisition Gateway. Offered through GSA and the Federal Acquisition Institute, Gateway U is open exclusively to federal agency personnel. Also, webinar attendees can earn one Continuous Learning Point (CLP) for each session fully attended.

Review the sessions being offered, and register today!

Please follow us on Twitter @GSA_ITC and LinkedIn to join our ongoing conversations about government IT.

ITC Continues to Lead Innovation – Geospatial Software Contracts Reach New Heights

Geospatial Software Success with Esri

As I’ve mentioned on several occasions ‒ as part of GSA’s role in implementing the Federal IT Acquisition Reform Act (FITARA) ‒ we’re incorporating cutting-edge, new, and innovative IT ideas and solutions into our programs, contracts and processes. We’re also expanding our work in information technology (IT) Category Management.

Last year the Enterprise Software Category Team worked with Environmental Systems Research Institute (Esri) to modify Esri’s GSA Schedule 70 terms and conditions for geospatial software Enterprise License Agreements (ELAs), resulting in improved efficiency, pricing, terms and conditions, and transparency

Modifying Esri’s IT Schedule 70 contract for single license agreements to a “FITARA ELA” was smart and prudent. In fact, the solution started recognizing savings immediately. Esri captures $74 million of the government-wide $294 million annual spend on geospatial software licenses.

Beyond the benefits to agencies utilizing ELAs, federal agencies currently use the standard license agreement (SLAs) receive a 10% discount; approximately $2 million in savings during fiscal 2016. They can see even greater savings by converting to the FITARA ELA.

Saving More with the GSA FITARA ELA

FITARA, passed by Congress in December 2014 and implemented at the beginning of 2015, helps government agencies optimize the cost of IT ownership through better management. Our FITARA solution provides government-wide savings based on the aggregate purchase for all federal agencies. This solution also affords large-volume discounts for agencies, regardless of the number of licenses. For instance, a small department needing only a few licenses can take advantage of the same discounts as a larger organization requiring more software.

By cost savings alone, the new government-wide FITARA ELA will potentially save American taxpayers millions of dollars. Moreover, the FITARA ELA not only saves millions of dollars, but it also:

  • Improves efficiencies by eliminating the need for separate negotiations;
  • Reduces administrative costs by implementing a single set of terms & conditions across government;
  • Offers tiered discounts by leveraging the buying power of the federal government;
  • Benefits from increased price transparency; and
  • Provides government agencies access to the agreement, as well as software management best practices in the software hallway on the Acquisition Gateway.

Non-ELA agencies that move to an Esri FITARA ELA save, on average, 50% by signing a FITARA ELA with Esri.

Existing ELA agencies can switch to an Esri FITARA ELA by processing just an administrative modification ‒ one more paragraph added to your existing ELA contract. There is no need to recompete; the turnaround process averages about 24 hours. These agencies will receive at least an additional 3% in savings on ELA payments starting January 2017, due to more than $30 million spent through current licensing agreements sales and based on tiered discounts (3% savings for $30 million threshold).

Agencies already completing the switch to Esri FITARA ELAs include:

  • Department of Agriculture
  • Department of the Air Force (Civil Engineer)
  • Department of Homeland Security
  • Department of Interior
  • Department of Transportation (Federal Aviation Administration)
  • Environmental Protection Agency
  • U.S. National Guard (Army/Air Guard)
  • Army Corps of Engineers
  • National Oceanic and Atmospheric Administration

Based upon how agencies buy between single and enterprise license agreements by the end of the fiscal year, we’re expecting a 5-6% overall savings when agencies fully roll onto the Esri IT Schedule 70 contract.

Benefits to the Government

We continue to look for opportunities to partner with our suppliers on targeted agreements and bring more savings to government agencies. What is more, the government benefits through reduced duplicative contracts, allowing our industry partners to bring innovation to the federal marketplace faster and change the government discussion from procuring technology to transforming enterprises.

We appreciate Esri being the first to offer a government-wide ELA, giving government agencies the opportunity to benefit from this partnership. Through the FITARA ELA, federal agencies:

  • Save on future products. New products that are released will automatically be available at no additional charge.
  • Tap into different training venues at no additional cost.
  • Stay up-to-speed on current technology and get exposure to best-in-class solutions.
  • In the event of a disaster, receive disaster support around the clock.

Stay tuned as we will be announcing another FITARA based ELA very soon!

For more information visit us on the Acquisition Gateway.

Please follow us on Twitter @GSA_ITC and LinkedIn to join our ongoing conversations about government IT.

Government-wide Desktops and Laptops, Smarter Buying

Note: This is a guest blog post by Kay Ely, Deputy Assistant Commissioner, Integrated Technology Services.

ITS prides itself on providing federal agencies with IT solutions at the best value through the smoothest possible buying process. The recent addition of a new approach to buying hardware, the Governmentwide Strategic Solutions (GSS) for laptops and desktops, is a prime example of how several agencies worked together with our partners across government and industry to improve the buying process and at the same time get better prices for federal, state and local governments.

As govvies, we depend on laptops and desktops every day to get our work done and the amount we spend on computers proves it. Every year the federal government spends more than $1 billion to ensure that we have the critical equipment to do our jobs. 80 percent of that is spent on the same equipment from the same companies across thousands of contracts, with little visibility from one agency to the next as to what price is being paid. We knew there had to be a better way.

By working closely with agencies and industry partners an innovative approach was developed for acquiring the best equipment at the best price. To put it simply, standardizing requirements, and buying collectively – this is the “Governmentwide Approach”.

How’d we accomplished this?

Using a category management approach, IT Schedule 70 conducted a reverse auction to support the Office of Management and Budget’s recent GSS Laptop/Desktop buying events.

Thirty-six agency representatives attended these buying events to learn more about their computer purchasing options and five agencies have already collectively estimated intent to buy 56,000 laptops and desktops – this “acting as one” approach drove prices down by an average of 16 percent. And that is one good example! The GSS team plans to conduct buying events on a bi-annual basis moving forward.

To participate, suppliers submitted their initial quotes for six optimized configurations (three laptop and three desktop) to GSA via eBuy. Those who were rated technically acceptable were invited to participate in the pricing phase through the GSA Reverse Auction platform. Impress Technologies Solutions Inc. (Dell), ABM Federal Sales (Hewlett-Packard), and NCS Technologies Inc. (Lenovo) were awarded those contracts.

To make it easy for more agencies to benefit from this, we have been hosting Government-wide Strategic Solutions for Desktops and Laptops Buying Event Office Hours – informational sessions with agencies to explain the category management principles applied, the configurations and how to easily place orders.

Better Buying for the Future

Using this program, the U.S. Holocaust Memorial Museum has already placed an order for $230,845 which included 100 laptops and 125 desktops. This new pricing enabled the Museum to maximize their budget and get an additional 55 computers that they otherwise couldn’t have. Overall, this came to a savings, against the old pricing, of nearly $75K.

This is the first time that the government has bought laptops and desktops in this way. It’s a great example of category management at work — government and industry worked together, saving U.S. taxpayers an initial $8 million governmentwide, with additional savings to come as more agencies leverage these contracts.

By using this program, your agency could save up to 27 percent off the GSA standard pricing. Of course, the actual savings are going to vary from item to item, but overall this is very good for government. We’re encouraged by the initial success of this program. As we near the end of the fiscal year, government agencies can benefit greatly from the lower pricing to get the best value possible for their dollars spent.

To learn more about the configurations, contracts and to make your purchase, see GSA Advantage or the Acquisition Gateway.

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