Tag: IT Acquisition Summit

In an earlier blog post, Transforming Government IT Procurement: Better Contracting Initiative Priority 2, I introduced the Better Contracting Initiative (BCI) as a driving force behind our ongoing efforts to modernize government IT procurement. 

I described the Governmentwide Acquisition Strategy initiative led by the IT Vendor Management Office (ITVMO) to centralize engagement with critical Original Equipment Manufacturers (OEMs) and negotiate universal contract and process improvements to ensure that all agencies benefit from best-in-class terms and pricing as “One Customer.”

Today, I’ll provide details on the ITVMO’s Governmentwide Microsoft Acquisition Strategy (GMAS), an unprecedented initiative to forge a strategic partnership between the government and Microsoft, and provide immense value to the government and one of its critical IT suppliers.

The GMAS origin

In 2023, the ITVMO launched the GMAS initiative to help standardize government contract terms and pricing for Microsoft products and services, offered by many resellers, regardless of where or how agencies acquire them. The goal was to consolidate best-in-class terms into a universal term sheet that agencies could apply to any government buying vehicle. With best-in-class terms and enhanced cybersecurity standards, all government agencies, large and small, would benefit from the U. S. government’s size and weight, and avoid the inefficiencies of negotiating certain contract terms at each procurement. The process was designed to be collaborative, both across the government and with Microsoft, to generate efficiencies for all parties.

Comprehensive due diligence and preparation

After reviewing Microsoft contracts from each of the 24 Chief Financial Officers (CFO) Act agencies, the ITVMO compiled a list of 150+ contract terms and conditions worthy of standardization due to their varying language and benefits. ITVMO also performed an extensive price analysis that revealed substantial variance in pricing from resellers due to factors not always driven by “size of the prize.”

These contractual and price variances revealed an opportunity to capitalize on identified flexibilities, establishing best-in-class contract elements to apply to all government contracts.

With every CFO Act agency participating, the ITVMO hosted a Civilian Services Acquisition Workshop (C-SAW). Over two days, the group collaboratively concentrated the original list of terms and price reduction concepts down to 24. These 24 items comprised the foundation of the GMAS initiative.

Partnership with Microsoft

Over the course of several months, the ITVMO, Office of Management and Budget, and Microsoft’s Federal Division discussed the government’s requests and proposed additional ways to establish a strategic partnership. 

The teams walked through each item to understand the specific requests and the underlying challenges. Stakeholders from Cybersecurity and Infrastructure Security Agency (CISA) engaged with Microsoft’s cybersecurity teams to discuss the critical security elements and standards that GMAS aimed to achieve. 

Recently, the government provided a detailed compendium of solutions for Microsoft to formally consider at the corporate level, as many of the items require updates to long-standing corporate policies. Considerations and discussions on the original 24 challenges are ongoing as of October 2024.

Looking ahead

Microsoft has committed to working with the ITVMO to advance the initiative’s progress. We will continue to work with Microsoft to finalize a path forward.  Throughout the project, Microsoft has acknowledged how implementing consistency across contracts between agencies and resellers would improve its performance as a product and service provider. 

Having spent the last six months working with Microsoft, the government is pleased with the emerging alliance. Clearly, both sides value the other as a critical partner, as demonstrated by the willing collaboration of the GMAS effort. The government is confident that this project will yield unprecedented success and pave the way for more strategic endeavors with other critical IT industry partners.

The GMAS initiative is truly a first-of-its-kind effort to solidify the government as “one customer” in the eyes of a critical industry partner. Building on the anticipated success of GMAS, the ITVMO intends to launch similar efforts with other IT OEMs in FY25. 

Stay tuned for more updates on GMAS and upcoming ITVMO initiatives to improve IT buying conditions for the federal government.

Visit our website to learn more about how GSA’s Office of Information Technology Category addresses the BCI through the ITVMO.

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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.

Please follow us on LinkedIn to join our ongoing conversations about government IT.

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