Update to Better Contracting Initiative 2

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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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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Improving Acquisition Governmentwide: IT and Professional Services

It’s not often that you hear from both the Information Technology Category and Professional Services and Human Capital Categories on this blog, but we’re excited to share some updates about how our portfolios are collaborating to improve governmentwide services acquisition. For this post we’re joined by Sheri Meadema, acting assistant commissioner of GSA’s Office of Professional Services and Human Capital Categories.

ITC and PSHC have always focused on developing and delivering contractual approaches that meet the expressed, current, and future needs of our customer agencies. We set up flexible solutions so industry has a low-friction experience when working with the government. Our job is to help our customers by: 

  • Reaching the most qualified and experienced suppliers in various socioeconomic categories. 
  • Accessing an acquisition channel that is designed to deliver exactly what agencies need and how they need to buy it.
  • Complying with evolving federal regulations.
  • Reducing the complexity and risk associated with services acquisition to the maximum extent possible.

What’s new

This year we are taking our partnership a step further through a new focus area called the Services Marketplace. ITC and PSHC are working together to align how we roll out new contracts and tools to support buyers and suppliers of services. 

Along with the leaders of GSA’s services contracts, we are working together to find enterprise-level solutions. We have three primary goals:

  • Rationalize, align and expand GSA’s contract offerings.
  • Improve FAS’s market research and buying tools. 
  • Improve the data and reporting systems used in support of our acquisition programs

What will this look like for our customers and industry partners? For industry, we envision a future with standardized engagement and solicitation processes regardless of the type of services you’re providing. We will focus on using a consistent set of best practices and tools when possible for both IT and professional services for solicitations, evaluation, negotiations, award, and contract management.

For our customers, we want to deliver a consistent, exceptional customer experience that makes it easier to get successful outcomes when compared to open market procurements. A customer agency buying services from GSA should be able to access familiar processes and have access to the right industry base, best-in-class contracts, effective and efficient tools, and support resources.

What we’re working on

Under the umbrella of the Services Marketplace, we are building the next generation of contracts, including the Services MAC, Polaris, and the follow-on to Alliant 2. 

  • ITC recently awarded the 8(a) STARS III Governmentwide Acquisition Contract, a small business set-aside, Best-in-Class GWAC. Through 8(a) STARS III, agencies can access award-winning 8(a) firms for emerging technologies and Outside Continental United States support via an established contract vehicle, saving time and taxpayer money over open-market methods.
  • Development of the next generation small business IT GWAC Polaris is well underway. The request for proposal for the new Polaris small business IT contract is expected in February 2022. Once fully awarded, Polaris will complete GSA’s GWAC contract portfolio by enabling federal agencies to set-aside IT task orders to small business, women-owned small business, service-disabled veteran-owned small businesses, and businesses located in HUBZones. 
  • With the OASIS ordering period ending in 2024, PSHC is making significant progress on a new Services Multi-Agency Contract to support federal agencies’ procurement requirements for services, making essential improvements and building on the program’s success. 
  • Work also continues on improving our Multiple Award Schedule service offerings in Phase 3 of the consolidation. Contractors with multiple contracts will consolidate down to one, which translates into fewer overall contracts for the acquisition workforce — and industry partners — to manage. It will also make it easier for agencies to find the vendors to meet their mission requirements.

We’ve also started standardizing the scope review process and created a digital tool/portal so customers can submit their scope review requests. This will allow for better tracking, management, and coordination across portfolios, as well as create a single customer experience. PSHC has already created a pilot single intake form and we are working to integrate that across other portfolios. 

In the coming months, we’ll launch a single Delegation of Procurement Authority training for OASIS and Human Capital and Training Solutions and a single on-demand ITC DPA, which combines 8(a) STARS III, VETS 2, and Alliant 2 to simplify the customer experience. We’ve also started the discovery phase for an order management tool for all services task orders. This will allow for better solicitation development, tracking, and task order management on GSA contracts. 

We look forward to continued input from customers and industry partners to create consistency as we build the next generation of contracts, improve market research and buying tools, and enhance data and reports systems for governmentwide services acquisition.

Contact us

If you’re interested in learning more about any of our contracts, send us a note!

Join the Small Business GWAC Community of Interest here to follow 8(a) STARS III and Polaris updates: https://interact.gsa.gov/group/small-business-gwac-community-interest.

Join the Professional Services Community here to follow news on the Services MAC: https://interact.gsa.gov/groups/professionalservicescategory.

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Introducing the IT Vendor Management Office: a new government-wide collaborative effort to solve the toughest challenges in federal IT acquisitions

The last months have been a whirlwind of activity for the new government-wide Information Technology Vendor Management Office (ITVMO). We not only chartered the ITVMO, but have started working with several partner agencies and IT acquisition experts from across government to identify existing resources that can assist agencies with their buying decisions. The ITVMO brings together the most critical players in the federal IT acquisition landscape to solve challenges agencies and vendors face when buying and selling IT products and solutions.

Launched in October 2020, the ITVMO is a government-wide effort to amplify the benefits of managing vendor engagement in the IT Category to make IT acquisitions faster and more cost effective. The ITVMO serves as a trusted independent advisor and advocate to help agencies buy common IT goods and services. As a one-stop shop, the ITVMO will leverage government-wide IT procurement data, conduct market research, and develop shared agency acquisition knowledge to support agencies’ buying decisions.

There are many programs and initiatives across government that are interested in improving how government buys IT. The ITVMO is unique in that it is a collaborative effort amongst partners in Category Management (CM) with the most critical IT acquisition Best in Class (BIC) contract vehicles and associated programs including:

  • The General Services Administration (GSA);
  • The National Aeronautics and Space Administration (NASA);
  • The National Institutes of Health (NIH);
  • The Department of Defense (DOD);
  • The White House Office of Management and Budget (OMB) Office of Federal Procurement Policy (OFPP).

Through this collaboration, the ITVMO will advance the goals of IT Category Management (CM) to improve how the government buys common IT goods and services and enable the government to act more as a single entity by sharing best practices and acquisition intelligence as well as eliminating the unnecessary duplication and redundancy that exists between federal agencies.

What’s Happening & What’s Next

One of the central drivers of CM is to mature federal IT acquisitions so that the government acts more like a single buyer rather than many independent agencies. By creating a space where some of the biggest and most impactful federal IT acquisitions programs and initiatives can collaborate and solve shared problems, establishing the ITVMO is a major step toward that goal.

The ITVMO is chartered and led by an Executive Steering Committee (ESC) comprised of several agencies including those with the largest IT BIC vehicles. The ESC determines the strategic direction and project priorities for the ITVMO to solve problems for agencies and vendors alike.

To identify shared challenges and opportunities throughout government, the ITVMO surveyed hundreds of IT and acquisition experts including the Chief Information Officers Council (CIOC) and the Chief Acquisition Officers Council (CAOC) as well as several communities of practices. The ITVMO team also conducted listening sessions with industry groups. The data and feedback gathered from across government is driving the challenges the ITVMO seeks to address in the near future.

ITVMO Customer Segments

The ITVMO’s primary customers are the programs and offices responsible for making buying decisions at each agency, and the vendor community. On January 27th, the ITVMO hosted an Open House for agencies to provide an overview of the ITVMO’s mission and services, and to answer any questions from the community. More information about the ITVMO Open House, including a video recording of the event, is available to government employees.

Based on customer feedback, the ITVMO is working on several products and services that will be made available to agencies in the near future, including:

  • Continuing a Small Business Webinar Series developed in partnership with the IT Government-wide Category and the American Council for Technology and Industry Advisory Council Small Business Alliance so agencies and vendors can learn how GSA’s Federal Acquisition Service Multiple Award Schedules Program will allow agencies to more easily procure IT products and services from small businesses.
  • Vendor Profiles that provide agencies with pricing information, specific vendors’ terms and conditions, and best practices for negotiating with that vendor.
  • Deep Vendor Intelligence crowdsourced from IT acquisition experts from across the federal government participating in integrated project teams (IPTs).
  • A Technology Life Cycle Assessment to provide agencies with insights into buying emerging technology and updating existing systems and services to meet evolving needs.
  • A deep dive and review of current Cost Avoidance Methodologies used by IT BIC acquisitions vehicles. The ITVMO is working closely with GSA’s IT Category to provide recommendations on how to improve the accuracy and reliability of cost avoidance methodologies and the underlying contract data.

If any of the above interest you, we would love to connect with you. Please feel free to reach out to the ITVMO inbox at itvmo@gsa.gov.

Coming Soon…

The ITVMO recently launched the first of several IPTs made up of the federal government’s foremost experts in working and negotiating with specific IT vendors. The IPTs will produce recommendations and strategies that can be shared and leveraged throughout government.

ITVMO - Integrated Project Teams

On May 12, 2021, The ITVMO will also host an Industry Day intended for our industry and vendor partners to learn about the mission of the ITVMO and the best way to collaborate with the ITVMO and federal IT acquisitions staff.

Finally, the ITVMO will soon launch our website to share the ITVMO’s latest updates and activities, post relevant templates and resources, and direct users to the relevant information to meet their IT acquisition needs.

Additional insight can be found on our ITVMO MAX page, and you can sign up for our newsletter. If you have any questions or general inquiries, please feel free to reach out to us at the ITVMO inbox at itvmo@gsa.gov.

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

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GSA IT Acquisition University – Train On Demand!

GSA IT Acquisition University

The IT Acquisition University is designed to increase access to on-demand information technology training for interested IT government professionals.

Federal acquisition can be a murky topic. When procuring IT products that can’t be seen, are hard to quantify, and are on the cutting edge of innovation, federal acquisition becomes even more difficult. To make things easier, we launched a new training tool, the IT Acquisition University (ITAU), that aims to cut through and demystify the challenges of government IT acquisition.

Hosted on GSA’s Acquisition Gateway, ITAU is a public, on-demand platform that gives users access to training on such topics as cybersecurity, cloud migration, and federal IT modernization. A library of videos, slideshows, audio, and other media will be at the fingertips of those looking to increase their IT acquisition skillset. Government users seeking Continuous Learning Point (CLP) opportunities can take advantage of short quizzes after each completed training to earn CLPs on their own schedule. Whether you are a contracting professional, program manager, or a federal IT stakeholder, the breadth of material aims to appeal to all program levels and positions.

GSA’s ITAU sources its content from many of GSA’s own training and events. Access recordings of recent GSA Information Technology Category (ITC) programming to stay up-to-date with best practices, acquisition tips and tricks, and more. The portal also has GSA-specific training available for many of its contracts, such as Enterprise Infrastructure Solutions (EIS). Regular content refreshes will ensure that the site’s training material stays relevant and useful.

We hope that the federal IT acquisition community will take advantage of this exciting educational tool. GSA ITC welcomes user feedback and questions at the following email: ITAU@gsa.gov.

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