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.

 

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.

 

Satellite Solutions Reach New Heights in FY14

(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/)

Government relies on satellite solutions more and more to meet critical warfighter communications requirements. In addition, satellites provide network diversity and resilience in the event that a terrestrial-based network fails.

Therefore, it’s no surprise that use of commercial satellite services to government under GSA-DOD’s joint Satellite Communications (SATCOM) contracts grew more than 10% from 2013.

In total, usage exceeded $530 million in Fiscal Year 2014 (FY 2014). Nearly 1,200 services and items have been delivered through the SATCOM contracts since inception in 2011.

Worldwide communications, national defense, weather alerts, search and recovery, shipboard and maritime navigation, distance learning, and training, and many scientific and research programs depend on commercial satellite capacity. SATCOM also supports additional remote and mobile applications in the areas of humanitarian relief, disaster-response communications, and counter-terrorism efforts.

In total 64 agencies, including 45 civilian agencies, ordered satellite services from SATCOM contracts through the Future COMSATCOM Services Acquisition (FCSA) Program in FY 2014. Of total orders, approximately 90% came from defense and 10% from civilian agencies.

Satellite Buying Trends

The buying patterns on the SATCOM contracts reveal which satellite services are most often used and how agencies are buying them.

Most commercial satellite requirements (around 80%) are being satisfied through use of  IT Schedule 70. These are mostly for satellite bandwidth (transponded capacity) and managed service solutions offered on a subscription basis. More complex solutions that often contain customized components associated with technology, geography, mobility, or security frequently leverage task orders via Custom SATCOM Solutions (CS2) and Custom SATCOM Solutions – Small Business (CS2-SB).

Transponded capacity, which agencies ordered from Schedule 70 Special Item Number (SIN) 132-54, is the use of dedicated bandwidth on a commercial communications satellite. It accounted for 70% of orders in FY 14. Agencies pay for service from fixed and mobile locations to a satellite and back to the end user.

FCSA offers bandwidth in eight separate frequency bands, the most popular being Ku (using frequencies of about 12 GigaHertz for terrestrial reception and 14 GigaHertz for transmission). Ku band dominated with 92% of the transponded capacity. Satellite service in Ku band uses smaller dishes, which can be physically mobile and more easily follow soldiers deployed around the globe to achieve their missions and communicate with their families.

Subscription services  (Schedule 70 SIN 132-55) accounted for 10% of government satellite solution demand last fiscal year. Custom satellite solutions through CS2 and CS2-SB orders accounted for 20% of the demand.

The SATCOM program is a strong supporter of small business. In 2014, $45 million (9% program-wide) of purchases went to small business. Of this, $19 million was through GSA’s-DOD’s joint CS2-SB contract and $26 million through Schedule 70.

Savings and Acquisition Efficiency for Satellite Services

In FY 2014, bandwidth prices using the FCSA contract averaged 34% off Schedule list prices. GSA estimates that the SATCOM centralized competition and increased price transparency driven by the GSA-DISA partnership saved the government $229 million in FY 2014, with $180 million of the savings attributed to DoD orders.

Also of note, the GSA-DoD joint contracts in FY 2014 continue to achieve a reduced number of contracts and acquisition cycles for satellite solution procurements, thereby generating further administrative savings.

For non-custom satellite solutions, the reduced acquisition lead time for task orders under Schedule 70 reduces time to award by about nine months (versus creating new contracts). Shorter acquisition times generally translate into lower administrative costs.

Looking to the future, defense needs will continue to dominate the government’s commercial satellite market. However, we also anticipate growth in civilian demand. This is especially true for the two predefined Schedule 70 SIN solutions, which lend themselves to quickly activated solutions for humanitarian and disaster support services.

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

FY 2014 Year-End IT Purchasing Data Tell Our Stories

This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY14.

Gain insights into what rocked IT in FY14….

The government’s IT purchases tell a story. Gone are days when IT was in a silo off in the corner. Now, IT is a key part of the mission equation. IT investments made in Fiscal Year 2014 give us the latest chapter in the story of what’s important to government as a whole.

Agencies are feeling pressure to develop mission enhancing technologies. They want solutions that will expand and contract as needed and serve multiple purposes, without technology investments becoming outdated and stale. They look for ways to spend U.S. taxpayer dollars wisely, realize IT cost savings and acquisition efficiencies, and meet our service goals to the American people. And they look to GSA for help.

GSA is proud to play a role in helping agencies buy smarter, faster, and for greater value. We work closely with CIOs, CFOs, and CAOs across government to understand our customers’ current and future requirements. We can also look at fiscal year-end purchasing data to give insights into what rocked our government IT world in the past year.

Stay Tuned for Closer Looks at Each IT Area

Being the largest IT acquisition organization in the federal government, it is our responsibility to create an environment where agencies and industry can obtain the necessary information to understand buying patterns, trends, and best practices. That means even greater transparency beyond our extensive customer and industry outreach efforts.

To that end, I will run a series of blog posts here in the next week or so to take a closer look at FY 2014 purchasing trends and activity in different IT areas such as cyber, wireless services, commodities from IT Schedule 70, satellite services, and more.

The data we’re using is based on activity and trends we see on GSA’s IT contracts. The data not only gives an idea of our aggregated IT priorities and trends in 2014, but what might be coming next. I encourage you to join us and check back often over the coming weeks as we look back at FY14 IT to better understand this recently closed chapter.

And remember to follow us on Twitter @GSA_ITS to join the conversation.

 

“Easy to Find, Easy to Buy” — Envisioning the Next Step for Cloud Computing on IT Schedule 70

GSA has led efforts to create a 21st century government, including introducing cloud to federal agencies. We offer a variety of contract vehicles that help agencies streamline acquisition of cloud technologies, including IT Schedule 70, the Email as a Service and Infrastructure as a Service Blanket Purchase Agreements (BPAs), and Governmentwide Acquisition Contracts (GWAC) like Alliant and Alliant Small Business.

As the cloud marketplace is maturing, we are seeing an increased focus on IT Schedule 70 as one of the main acquisition vehicles for agencies.

IT Schedule 70 is already the largest, most widely used IT acquisition vehicle in the federal government, and we are continuously looking to improve what it offers. One area we are exploring is looking for ways to help customers find and buy cloud services.

For example, we are considering the creation of a single Special Item Number (SIN) for all cloud services that would provide clear cloud technology differentiation for customers and improve ease of access to acquire cloud services. We recently released a request for information, seeking industry input on this idea.

IT Schedule 70 already offers cloud services, and our industry partners have cloud offerings in several SINs, so why create a new SIN?

Through customer dialogue and market research, an integrated team of acquisition, technology, and program experts across the Federal Acquisition Service (FAS) has identified that there would be benefits to creating a Cloud SIN to all parties involved:

  • GSA Customers – Clear differentiation of cloud services vs. non-cloud IT products and services, and empowered cloud buying through better data
  • Industry Partners – Opportunity to market distinctive solutions and offerings on IT Schedule 70
  • Internal GSA Operations – Enable more granular reporting on cloud sales to enable decision making, and help our customers buy better through data

The goal of this new SIN would be to provide clear cloud technology differentiation and ease of customer access through systems such as eBuy and GSA Advantage!.

Since SINs create logical categories of services within a Schedule, we envision the creation of a Cloud Computing Services SIN will provide a level of differentiation for customers that would more easily and clearly identify cloud services.  Additionally, GSA could establish a set of qualifying requirements that would help customers in identifying cloud services that meet acceptable standards around security, data, and other characteristics.

We are always looking for ways to make sure that doing business with us is as easy and reliable as possible. We believe that adding a Cloud Computing Services SIN would realign IT Schedule 70 cloud technology offerings to better reflect the current cloud computing market and satisfy customer needs.

The cloud market is sufficiently mature to offer differentiated and vetted cloud services through a single SIN, and this makes sense for both GSA customer agencies and industry partners. We are looking for feedback to make sure we get it right and look forward to the conversation. Read the RFI.

How ITS helps small business make government stronger

Small business helps America innovate, create jobs, and grow. These small businesses also play a critical role in moving government forward, and ITS is dedicated to providing ample access and opportunity to connect government to small business. With Small Business Week upon us, I thought it would be a good opportunity to look at how ITS is helping small businesses and government work together.

Moving government forward

I’ve worked closely with small businesses for over two decades and I’ve learned that the size of a business has no correlation with its potential impact. I’ve mentioned before that small businesses are the engine for innovation. They have major roles across government in meeting today’s technology demands and requirements. Just in the past couple of years, I have seen small businesses provide:

  • Consolidation of inefficient and costly legacy systems
  • Implementation and integration of cloud technology into agency IT infrastructures
  • 24 hour help desk and support for critical DoD and civilian IT systems
  • Comprehensive life-cycle support to complex IT projects
  • Subscription services to mobile satellite services
  • Access to the most innovative and efficient IT hardware and software
  • Continuous monitoring for cybersecurity

This is just a small sample of how small business has supported government through our ITS solutions, but there are too many to list. The skills, capabilities, and expertise among small businesses are world class, and the variety of ways government utilizes small business shows just how effective these businesses are in supporting agencies’ missions.

How ITS is helping

At ITS, we are dedicated to helping small businesses compete and grow in the federal marketplace. We have a variety of solutions for agencies to access small businesses that allow them  to compete and agencies to meet their requirements in areas like:

It is not enough to just provide access to these small businesses, but we need to help them succeed. We provide training to small business on how to build their federal business and to our large businesses on how to create optimal partnering and subcontracting opportunities.

We are diligently working to provide small businesses all the tools to compete, but the proof of our success in providing opportunities is in the numbers:

  • 85% of vendors on Schedule 70 are Small Business
  • Projected $6.22B small business revenue through Schedule 70 for FY13
  • 100% of small businesses under our Commercial Satellite Communications program have won awards with a total value of over $8M
  • More than $7.6B has been obligated to our SB GWAC program  since its inception including our current Alliant SB, 8(a) STARS II, and VETS GWACs
  • 79% of our largest SB GWAC, Alliant SB, have won task orders
  • $534M has been awarded to small businesses through subcontracting on our Alliant Enterprise GWAC, which is 42% of all subcontracted dollars.

We’re celebrating Small Business Week now, but we continue to be dedicated to the success of small businesses year-round. If you’re interested in learning how you can use a small business to meet your requirements, contact our customer service representatives or leave a message below!

Small Business Set-Asides – a Good Thing and the Right Thing to Do

Small businesses drive the U.S. economy – we hear this almost every day on the news. According to a recent Washington Post article, “Firms with fewer than 500 employees employ just over half of the country’s workers and create nearly two-thirds of the country’s new jobs.”  It’s pretty clear: small businesses—veteran-owned and service-disabled veteran-owned, HUBZone, disadvantaged, women-owned and minority-owned businesses—are key drivers of innovation and job creation. They will be critical to pulling our nation out of the current economic crisis.

So what can we, government agencies, do to support the continuing recovery of the American economy?

One tool we have on hand is the small business set-aside. More than ever before, government agencies need to take a hard look at their procurement procedures and their progress towards meeting their small business goals. As part of our standard procurement process for all contracts, we consistently ask ourselves “could a small business fulfill these requirements?” I am proud to say that GSA met its small business goals last year.

If you’re an agency looking for a way to energize your small business procurement, GSA offers you a number of governmentwide IT acquisition contracts tailored to your varying needs, including VETS, 8(a) STARS, and Alliant Small Business. They offer time- and cost-savings, flexibility, worldwide geographic coverage, highly qualified industry partners and, of course, the procurement preference credit you need. We even have a Small Business GWAC Center that will help you walk through the process of choosing the right solution.

In addition, the majority of vendors in our IT Schedule 70 program are small businesses, which provides ample opportunity for agencies to fulfill their IT needs and meet their small business goals.

I know there also are a lot of small businesses out there who have questions about how to provide their innovative technology solutions through our GWACs and schedules. I invite you to come talk to us.

As we head further into our fiscal year, we have a chance to give our economy a boost. Choosing to contract with small businesses is a good thing and it’s the right thing to do.

Great Government through Technology

The Digital Revolution is dramatically changing the way we live, the way we work, and the way that the American government is serving its constituents; I think for the better.  Almost every day, I hear about exciting new technologies or innovations with the potential to produce changes in the way government serves and interacts with citizens.  The rapid pace of these technological changes – and the ability to harness them effectively – is one of the biggest challenges facing government today.

The government has already made great strides in improving the way it distributes information, provides services and communicates with the American people. That is why I am especially proud to be leading the Office of Integrated Technology Services (ITS) within GSA’s Federal Acquisition Service. We help government agencies execute their core mission by making it easier for them to acquire the latest in technology products, services and solutions.  That is what I mean when you hear me talking about “Great Government through Technology”.

I started as Assistant Commissioner of ITS in April.  Over the past several months, I have focused on helping our customer agencies implement the administration’s IT priorities, including cyber security, sustainability and innovation.  But one of the things I am particularly thrilled about is the increased emphasis on government collaboration and communication.  That is why I am happy to be making the first of many postings on this blog.

I plan to post here frequently. This space will be used to tell you about trends that I see in the marketplace, my focus here at ITS and important initiatives.  But most of all, I want to hear back from YOU!  I will be looking out for your comments and topic suggestions, and though I won’t be able to respond to everyone, I will do my best to keep the communication two-way.

Looking forward to hearing from all of you!