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GovWin Recon - June 18, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Sequestration / Budget:

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Big Data / Analytics:

Mobility:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Legislation:

Mergers and Acquisitions:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

The Army Tightens its Chokehold on COTS IT Procurement

Like all of the Department of Defense, the U.S. Army has struggled in recent years to adapt to declining funding.  In response to the tightening fiscal situation, Army leadership has introduced measures that are intended to reduce spending on information technology products and services.  As these measures evolve they are reshaping the Army’s IT acquisition environment in dramatic ways.  The number of acquisition vehicles that contracting offices can use has been limited, the type of IT hardware and software Army customers can buy has been restricted, and the number of service contracts competed has been reduced.  The result is an increasingly challenging business environment that presents considerable difficulties for IT vendors.

Background

Cost reduction efforts introduced in 2011 centered on an initiative called the “Army Request for IT.”  ARFIT introduced measures intended to drive down IT costs, including:
  • Stricter administrative oversight to capture the amount of money being spent on software, hardware, and IT services
  • Reducing the amount of funds flowing through higher cost, non-enterprise contracts for IT SW, HW, services, and maintenance agreements
  • Maximizing cost-effectiveness by increasing use of the Army’s Computer Hardware, Enterprise Software and Solutions (CHESS) Program
  • Improving the security of the Army’s LandWarNet Network

Administrative responsibility for ensuring that ARFIT measures were implemented was initially assigned to four Gatekeepers – the Office of the Assistant Secretary of the Army for Acquisition, Logistics and Technology (ASA-ALT); the Office of the Assistant Secretary of the Army for Financial Management and Comptroller (ASA-FM&C); Army Materiel Command (AMC); and Army Cyber Command (ARCYBER).

One year later, in June 2012, John McHugh, the Secretary of the Army, published a memorandum outlining the responsibilities of three organizations designated as gatekeepers (AMC was dropped from the list at this point).  In this memo the SECARM sharpened the stick of Army IT acquisition reform into a point.
  • The ASA-ALT was directed to enforce the spending of funds through the appropriate authorized contracting vehicles, especially the contracts provided by the Army’s CHESS program and the DoD’s Enterprise Software Initiative Blanket Purchase Agreements
  • The ASA-FM&C was made responsible for ensuring that Army commands execute IT purchasing in compliance with stated policy (i.e., Commands use CHESS and ESI to the greatest extent possible)
  • ARCYBER was made responsible for ensuring that IT products and services properly align with the Army’s efforts to secure and defend its networks
Finally, so far in FY 2013 two critical developments have appeared in relation to ARFIT.  First, in February 2013, the Army CIO/G6 released detailed guidance concerning IT Management Reform.  ITMR calls for ARFIT to be fully implemented no later than the end of FY 2013.  Second, in June, the SECARM issued a memo removing the authority of Product Director CHESS to issue waivers for Army customers seeking to purchase commercial-off-the-shelf (COTS) IT.  Starting on 1 July 2013, most Army customers (except the U.S Military Academy and those responsible for non-Program Executive Officer/Project Manager managed Military Intelligence Program (MIP) systems) will be required to submit COTS IT waiver requests to Army Headquarters directly for approval.

Implications and Opportunities

The implication of AFRIT for vendors, especially those who sell COTS IT, is stark – either your company wins a spot on CHESS commodity IT contracts or you can forget doing business with most Army customers.  This is of course unless your company sells its products through resellers who hold a CHESS contract.  Services vendors retain a wider variety of possibilities because of the Army’s size and ongoing struggle getting a handle on services procurement.  This said, even Army IT services spending over the next few years is expected to decline.

One possibility in this environment is to compete for the next iteration of the Common Hardware Systems 5 (CHS 5) contract.  The current CHS 4 contract held by General Dynamics is due to expire in August 2016, meaning vendors should see procurement activity begin in FY 2014.  Then there is the upcoming competition for the follow-on to CHESS’ IT Enterprise Solutions 2 Services (ITES 2S) contract vehicle.  ITES 2S is one of the Army’s most used IT services contracts so winning a spot on ITES 3S would be a key victory.  GovWin expects the competition for ITES 3S to begin in Q2 FY 2014.

 

GSA Looks beyond Networx

Now that the government transition to Networx has been completed, the General Services Administration(GSA) is turning its attention to Networks Services 2020. According to Mary Davie, they’re not waiting for the next iteration of the program and are aiming to implement changes as soon as possible.  
The American Council for Technology Industry Advisory Council (ACT-IAC) hosted the launch of the Network Service 2020 (NS2020) Working Group. The event was organized by the Networks & Telecommunications (N&T) Special Interest Group (SIG) and included roundtable sessions for each of four committees:
GSA/Vendor Operations
Program Development, Goals and Metrics
Business Growth and Collaboration
Technology
 
The NS2020 Working Group aims to provide an ongoing forum for government and industry discussion on topics related to the entire lifecycle of the NS2020 program.
 
GSA and Vendor Operations explored service ordering, portal and pricer, vendor contract operations, and effectiveness around terms & conditions.  Investigating government and industry operations highlighted the importance of inventory management. Transition success can be greatly impacted by good inventory.

The Program Development, Goals and Metricscommitteelooked attransaction costs, service level agreements (SLAs), success factors, value proposition models, and program management approach. Suggestions from this roundtable included offering positive incentives for providers to exceed SLAs, making it financially attractive for providers to get solutions in place rapidly (through the government covering up front costs), and improving inventory management.
 
Business Growth and Collaborationdiscussedstrategies for maximizing portfolio business, Small Business strategy, regional strategy, promoting competition, and collaboration. Three points that resulted from this topic are were the need for re-iteration of GSA’s value proposition, the need for better visibility into the services covered by the fees GSA charges, and the need for standardization (e.g. order placement, inventory, and billing).

The Technology committee addressed the current and future scope for products and services, innovation, and technology evolution. Needs recognized in discussion of capabilities not currently provided under Networx included ubiquitous access and cloud computing. The vision for the future this group described unlimited bandwidth, on demand, anytime, anywhere, with any device. Achieving this future would require more focus on services and less modification of commercial offerings.
 
The near term challenge for the working group is identifying where technology is heading and what services should be included in the scope of NS2020 (e.g. cloud computing, satellite services). Currently, GSA is working on determining what can be improved with the Networx program; for example, how inventory and service ordering can be made easier. At least for the time being, government is looking to get direction from industry.
 
The next ACT-IAC N&T SIG meeting will be held on June 27th to discuss cloud computing services.
 
Originally published for Federal Idustry Analysis: Analysts Perspectives Blog. Stay ahead of them competition by discovering more about GovWinIQ. Follow me on twitter @FIAGovWin.

GovWin Recon - June 17, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Health IT:

Big Data / Analytics:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Legislation:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

GovWin Recon - June 14, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

 

Federal IT:

Agency News:

Vendor News:

Cloud Computing / Data Center Consolidation / Virtualization:

Big Data / Analytics:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

GovWin Recon - June 13, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Health IT:

Big Data / Analytics:

Mobility:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

Deltek pulse: General government services May review

In what is no doubt in anticipation of the end of another fiscal year, many government entities ramped up solicitation releases last month. May continued the trend of increased solicitation releases, with a total of 1,811 IT-related general government solicitations captured in Deltek’s GovWin IQ database. This was a 6.2 percent increase in the total number of solicitations released by state and local governments in April.

From May’s solicitations, we’ve highlighted the top 11 most common IT procurement categories in the state and local market:
  • Software/Applications – 372 solicitations
  • IT Hardware/Computers/Peripherals – 292 solicitations
  • Maintenance & Support Services – 206 solicitations
  • Implementation/Integration Services – 118 solicitations
  • Wireless & Telecom Equipment/Solution/Services – 66 solicitations
  • Cloud/ Data Center/ Big Data Solution/Services – 42 solicitations
  • IT Professional /Staffing/Consulting/Project Mgmt Services – 34 solicitations
  • Content/Document/Records Mgmt Systems – 30 solicitations
  • Education Data/Learning Management/Student Info Systems – 30 solicitations
  • ERP/Human Resources/Financial Systems – 20 solicitations
  • Data Warehouse/Business Intelligence/Analytics – 7 solicitations
 
Highlighted opportunities in Deltek’s database
 
A solicitation was released for a professional license and permit management system for the New Hampshire Department of Information Technology on May 30. The agency plans to procure a commercial-off-the-shelf software system and associated services for licensing and permitting agencies. An optional pre-proposal conference will be held June 19. Questions are due June 24, and proposals are due August 5.
 
The Massachusetts Information Technology Division released a request for information (RFI) for an enterprise content management solution on May 13, and responses were due May 22. The program office confirmed that the state may utilize ASAP software as well as state contract ITC47 to fulfill these obligations in advance of a new system purchase. There is the potential for this project to be split into multiple procurements, but the state has declined to elaborate on that possibility.
 
The North Carolina Office of Information Technology Services (ITS) is expected to release a new RFP seeking short-term IT staffing and scanning services after a cancellation notice was released for a related opportunity on May 8. The related RFP was canceled because ITS plans to review and revise the specifications for each IT staffing category, and is expected to expand upon the list of current categories. A new RFP with a revised scope is expected to be released at a later date. A current list of categories of the incumbent contract can be viewed here.
 
The state of Tennessee released an RFI for a hybrid solution for software as a service (SaaS), in which the comptroller would utilize the SaaS solution to deliver a talent acquisition and management solution while hosting the database within the comptroller’s control. RFI responses were due May 24.
 
Market analysis
 
Analysts Alexandra Howden, Joanna Salini and Stephen Moss published a cross-vertical analysis on the state of Wisconsin’s improved economic status by highlighting opportunities within the general government services, health care and social services, and justice and public safety verticals. The report details how Wisconsin has mounted a comeback toward a budget surplus, and unemployment is almost a point less than the national average.
 
Analyst Randi Powell published an article on North Carolina’s bleak performance audit of 84 IT projects after a state performance audit called out numerous IT projects that cost the state a total of $356.3 million in overages, and took a total of 389 days longer than initial project estimates. Essentially, these projects have cost twice as much and taken 65 percent longer than expected.
 
What’s on tap?
 
The general government services team will be releasing blog series the third week of June regarding business intelligence and analytics solutions for state and local government’s big data needs.
 
GovWin IQ subscribers can read further about these projects in the provided links. Non-subscribers can gain access with a GovWin IQ free trial

 

GovWin Recon - June 12, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Sequestration / Budget:

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Big Data / Analytics:

Transparency and Performance:

Waste, Fraud and Abuse:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Legislation:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

Intel Community Takes Aim at Agile Acquisition

Austerity measures are hitting everywhere in the government, and the Intelligence Community (IC) is no exception. At a recent AFCEA DC event, representatives from the National Security Agency (NSA), National Reconnaissance Organization (NRO), National Geospatial-Intelligence Agency (NGA), and Defense Intelligence Agency (DIA) discussed some of the ways their buying habits are changing. Like other areas, the reduced resources are prompting an increased focus within the IC on increasing efficiency and leveraging new technology. As it makes those shifts, the IC is also contending with training needs within the acquisition workforce.

Panelist at the event stressed the importance of revitalizing the partnership with industry. Efforts are being made to advise the Defense Industrial Base (DIB) on its role in sustaining the IC mission. An acquisition executive from NSA commented that increasing signal intelligence threats and rapidly evolving technology are significant challenges. The drive to invest in research and development for the future is countered by swelling cost of sustainment. In an effort to lower those costs, the IC is exploring technologies like cloud utilization, automated testing, and configuration management. They’re also looking at leveraging commercial technologies and services.  
 
The need to improve communication with industry is surfacing in other areas. For example, NGA is exploring how to share information and transfer knowledge from government to industry in the hopes of better leveraging internal research. At NRO, they’re working to address being unable to afford all of the options on some contracts by trying to negotiate the situation with contractors. In some cases, labor costs have been revisited to help meet agency needs.
 
Better Buying Power is being stressed and organizations are finding market research increasingly important. However, Lowest Price Technically Acceptable (LPTA) is not likely to trend in the IC. The message from the panel was clear: LPTA can be useful in some low complexity, low cost areas. However, the vague descriptions of LPTA are considered not conducive to the need for discriminators and specific technical requirements.
 
As IC organizations assess acquisition needs for recurring technology, they are keeping shared technology requirements in mind. Future investment areas are likely to target cross-IC initiatives. DIA is currently doing a fair amount of cross-IC work with NGA, and they’ve have found that one benefit of the collaboration is an increase in interoperability. While NGA may be issuing fewer contracts, they are pursuing more cross-IC initiatives. In fact, delivering a capability to one area of the IC could be an opportunity for industry to explore similar needs in other organizations.
 
Deltek has been forecasting increased spending as the fiscal year draws to a close. Many of those contracts are expected to be large, complex awards. For the IC, this may present a particular challenge. Furloughs within acquisition workforce pose a bottle neck. Compounding those potential delays, contract officers may either be unfamiliar with agile approaches or lack experience with complex awards.
 
Solicitations tend to reflect a fixed point in time, but IC user requirements are evolving. Agile delivery and incremental deployment of capabilities is more conducive to addressing that evolution. That said, the budget process and policies can be barriers to agility and rapid delivery.
 
Often times, where there is a substantial knowledgebase of experience, there’s often a focus on managing contracts, as opposed to managing programs. This indicates a distinct need for retraining and adjusting incentives that have encouraged the current set of habits. Historically, the Defense Industrial Base has mirrored the IC when it comes to contracting tendencies, so that will mean gradual change going forward as contracting shifts from Completion to Firm Fixed Price and Pay Per Use models.

The Federal Program Inventory Provides Visibility, but with Limitations

On May 31st, the administration took another step forward in implementation of the GPRA Modernization Act of 2010 by releasing Federal Program Inventories on the Performance.gov website.  Centralizing program inventories on Performance.gov will provide greater visibility into federal programs with the intent to improve program outcomes, efficiencies, and root out duplication and waste.

Significant amounts of information currently exist about federal programs, such as the President’s Budget, Congressional Budget Justifications, USAspending.gov, the Catalog of Federal Domestic Assistance.  However to date, the information has been decentralized and difficult to analyze.  The new Federal Program Inventories will provide greater visibility for Congress and the general public regarding government operated programs.   

Since the beginning of his administration, the president has waged a campaign against federal waste, fraud and abuse.  To that end, eliminating duplication in federal programs has the potential to save billions of dollars.  The 2014 President’s Budget proposes 215 cuts, consolidations, and savings proposals, which are projected to save more than $25 billion in 2014, a number of which are achieved by reducing duplication.  For example, the budget includes proposals to streamline Science, Technology, Engineering, and Math (STEM) programs, and training and employment services.

Program inventories on Performance.gov are a step in the right direction.  However, their current usefulness is limited.   To date, 24 departments and agencies present links to program information via the website.   Agencies chose to present program information in various formats and organizational structures.  Most of the agency links lead to formal program inventories in a pdf document format.  Others lead to agency web pages with links to budget documents and justifications.  At present, it is difficult to spot overlap and duplication of programs across agencies.   Centralization of the information is helpful, but I’m hopeful that future iterations of the information will contain consistent formats and tools to analyze the program data across varying departments and agencies. 

 

 

 

 

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