The most common terms appearing in justice/public safety and homeland security solicitations during November were camera/surveillance, fire alarm and radio. The below word cloud provides a visual interpretation of key-term frequency.
- Number of public safety bids: 1,383
- Top three states (by number of solicitations released): California (130), Pennsylvania (118) and Texas (81)
- Keywords: camera/surveillance, fire alarm and radio
Frequency of terms
- Surveillance: 32 (seven state; 25 local)
- Radio: 15 (four state; 11 local)
- 911: 6 (three state; three local)
Number of opportunities by location
- State: 573
- County: 387
- City: 305
- University: 22
- Other: 96
- Public safety software suites continued to trend in November with several localities releasing solicitations for these technology systems, including Forsyth County, Ga., and College Station, Texas
- A lack of funding continues to hamper projects across agencies and technological requirements. Unfortunately, many localities do not believe the situation will improve much in the next year
- Radio projects continue to move forward in many locations with solicitations planned for release in 2014. The majority of these projects will be P25-compliant
- The California Department of Technology released a draft RFP on November 1 for P25 Radio Infrastructure/Subscriber Equipment. A finalized RFP has since been released
- Iowa’s Department of Administrative Services released a solicitation for Statewide 700 MHz P25 LMR Network Infrastructure and Subscriber Units
- An RFP was released by the New Mexico Department of Information Technology for Enhanced 911 (E911), Next Generation 911 Emergency (NG911) System(s) and Related Products
November saw a sharp rise in the number of solicitations released compared to October. In total, 306 more justice and public safety solicitations were released. Despite the holiday, many of these solicitations were released toward the end of the month; however, many of them also have longer-than-usual timeframes for response, with many proposals not due until well into January. This trend occurred across all JPS procurements, particularly for radio-based technologies.
Many localities and states that were among the first wave to upgrade their radio systems when the narrowbanding requirement was released nearly 10 years ago are now in need of system and equipment upgrades. This has led to solicitations being released for system and equipment upgrades – a trend that is likely to continue in 2014.
November also saw an increase in solicitations for systems used by correctional facilities. This is indicative of a larger trend that shows corrections departments increasing their reliance on technology and moving forward with technology projects such as electronic monitoring, inmate phone systems and larger jail/case management systems.
Vendors should keep in mind that, in many cases, it is no longer sufficient to simply fulfill police departments’ technological needs. It is also essential to provide fully integrated solutions capable of tracking the full chain of custody from arrest through sentencing and incarceration. Vendors who are not in a position to provide fully-integrated solutions should begin building teaming relationships with other vendors to ensure their proposals are as strong as possible.
November brought continued scrutiny on the federal health insurance exchange implemented by CGI. The rollout of the online portals has been rather rocky for many states that gave facilitation to the feds. During the first month’s launch, only 106,000 Americans were able to successfully enroll in health insurance plans utilizing the federal exchange. This awfully low number is forcing the Obama administration to lower its original goal of 800,000 enrollees in the first two months.
The Department of Health and Human Services (HHS) along with CGI and other IT vendors used November to make extensive fixes to the system in hopes of a more streamlined, less frustrating experience for users by December 1. So far, enrollment has been notably better than October, and more changes to the portal will undoubtedly be made in the months to come.
In November, the health and human services team saw the release of more than 1,000 solicitations with either health care or social services as a primary vertical. The word cloud below represents the frequency of terms in those solicitations.
As you can see below, California, Texas, New York and Pennsylvania are among the states with the highest number of health and human services-related solicitations, while Wyoming, Indiana, and Arkansas had little to none.
Kentucky canceled its request for proposals (RFP) to procure a Medicaid enterprise management system (MEMS) and fiscal agent, but plans to re-release the RFP in the future. The current contract with HP Enterprises is set to expire in November 2014.
Vermont awarded a contract for its Women, Infants, and Children (WIC) management information system (MIS), electronic benefit transfer (EBT) project to Ciber, Inc. The contract is valued at $2.5 million.
Connecticut awarded 21st Century Technologies Inc. for fraud detection and prevention services. The contract has a 26-month base and is set to expire in November 2016.
California released a request for information (RFI) for health care price transparency services. The state will be utilizing funding under the “Grants to States to Support Health Insurance Rate Review and Increase Transparency in Health Care Pricing, Cycle III” to secure services that will collect and analyze health care cost and quality information.
Colorado released an RFI for recovery audit contractor medical services. RFI responses are due on December 6, 2013. The selected contractor will analyze and review Medicaid and Colorado Child Health Plan Plus (CHP+) claims, and provide post-payment review services to help identify fraud, waste and abuse.
Despite the holidays, November and December are typically filled with a significant amount of activity in the state and local government contracting arena. Most states’ top priority is to get their health insurance marketplaces running successfully, especially since the final day of open enrollment (March 31, 2014) is not too far away. This will certainly be the case for the feds as well.
In the coming months, vendors can expect to see more requests for information and services relating to not only fixes or enhancements to insurance exchange systems, but also for upgrading or implementing existing health-related IT systems that must interface with state-based or federal portals. For that, contractors should continue to pay attention to enrollment numbers across the states, in addition to issues arising with the exchange launch. Showcasing desirable solutions for states to adopt will be critical in securing business.
Deltek's Health Care and Social Services Team will be releasing a report in January to provide an update on statewide implementation efforts for exchanges. In the meantime, be sure to check out Deltek’s Health Insurance Exchange Vertical Profile Application to learn more about the ACA's initiative. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.
Anyone involved with the health care industry, or even mildly interested in it, knows what occurred in October: The launch, and arguable failure, of healthcare.gov. Though the federal exchange website has been on the front of everyone’s mind, the states saw a range of implementations with individual health insurance exchanges (HIXs). Some launched with success, others with small glitches, and others are still struggling to get a system up and running for citizens. Deltek blogged about the luck CGI had in state HIXs in late October. While the federal government states that the healthcare.gov website should be fixed by the end of November, it will take time to see if the technological failures of the exchange launch will overshadow possible success in the reduction of millions of people in the United States living without health insurance.
On the procurement side, October saw more than 700 solicitations released across the United States. The word cloud below represents the frequency of terms in those solicitations.
As one can see from the below map, New York, California, and Texas (respectively) saw the largest number of health and human services-related solicitations, while Wyoming had no related activity in October.
· The North Dakota Department of Human Services released a request for proposals (RFP) for a Medicaid call center on October 23, 2013. This will help cover the 20,000 individuals that will now be eligibile for the Medicaid program.
· The Nebraska Department of Health and Human Services released an RFP for the transfer of the Mountain Plains State Consortium (MPSC) Women, Infants, and Children (WIC) management information system (MIS). Proposals are due in December.
· The Alabama Medicaid Agency was busy in October, releasing RFPs for both an advanced fraud detection and case management system, and its fiscal agent service RFP for its Medicaid enterprise solution.
While the Obamacare launch will surely continue to dominate headlines until the website is fixed, the actual success of reducing the number of uninsured Americans lies in both state and federal exchange data. Many states have reported large traffic volume on exchange websites, with several user accounts created and insurance plans purchased. Time will also be needed to tell if more insured Americans will lead to decreased health care costs. Look for an upcoming report by Deltek on all-payer claims databases (APCDs) and an update to our health insurance exchange (HIX) report.
Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.
Early fall brought a flutter of procurement activity to the general government landscape. With the majority of states operating under the June-July fiscal year, late summer brought new funding, which filled September and October with solicitation releases.
Autumn’s in-demand technology is clearly enterprise resource planning (ERP) systems, which are being procured across the nation, with active solicitations in Michigan, Florida, Illinois, and Hawaii.
September brought Hawaii’s highly anticipated statewide enterprise resource planning RFP, which has been quite active. Eleven addendums have been released, with the most recent announcing the solicitation being put on temporary hold after a primary project contact’s retirement. This solicitation has been in the works since early 2011 and looks like it will be 2014 before next steps are taken.
Another statewide ERP solicitation released this fall is Michigan’s procurement to replace the state’s existing financial system, known as MAIN. The state is seeking a vendor that will include hosting services, a disaster recovery site, and disaster recovery services as part of the overall effort.
On a county level, Miami-Dade County, Fla., released its enterprise resource planning implementation, integration and related services RFP in September. The county previously contracted with Oracle for an ERP system that only covered two departments – Water and Aviation. The county is expanding to a county-wide system with this procurement.
October brought an ERP system RFP release in Cook County, Illinois. This has been another highly anticipated procurement since an RFI release in February 2011. The county decided to separate the ERP system and the implementation into two separate solicitations. The system RFP is currently underway, and the implementation RFP will move forward once the county is satisfied with the software solution.
In non-ERP news, two notable statewide education RFPs were released. The Arizona Department of Education is seeking a new student information system, while Rhode Island is procuring a vendor to develop a K-12 scoring and reporting system for use with interim assessment data.
Further trending technologies include telephone systems and wireless solutions. A handful of telephone system RFPs were released, with heavy focus on Voice over Internet Protocol (VoIP.) The bids spanned from state to county level, to school systems. This trend seems to be cyclical as phone systems become antiquated and the desire to implement systems compatible with existing infrastructure increases.
Wireless solutions are more of a growing trend in procurement. As more technology becomes available in wireless forms, government entities are jumping at the chance to increase efficiency and convenience. Last month saw a steady increase in solicitations for wireless communication systems and wireless infrastructure upgrades.
Vendors who can provide a robust ERP solution should be on the lookout for these and similar solicitations that may pop up through the end of the year. These systems are in high demand nationwide, and with funding for projects finally coming to fruition, vendors can expect solicitations across the states throughout the season.
The government shutdown last month may have been on a federal level, but it still affected state spending. Many states that receive government funding saw cash flows slowed or halted completely. This will directly affect projects that are funded by federal funds (such as Race to the Top) in such a way that we may see anticipated RFP releases pushed back a few months. Vendors should still expect solicitation releases before the holiday season is in full swing, but the larger, federally funded projects may be pushed to 2014.
GovWin IQ subscribers can read further about these projects in the provided links. Non-subscribers can gain access with a GovWin IQ free trial.
Deltek’s recently published State and Local Regional Top Opportunities for FY 2014 Report shines light on state and local contracting from a regional standpoint, spanning all verticals (health care, social services, justice and public safety, homeland security, transportation and general government). Using the GovWinIQ opportunities database, the free report analyzes the quantity and value of projects in each region across all vertical areas, and also takes a closer look at how the verticals are represented in each of the four regions. The top opportunities highlighted in the report were selected for their representation of major technologies within the six vertical areas and their illustration of state and local contracting as a whole.
GovWinIQ Active Opportunities and Leads
Key takeaways from our regional analysis of state and local contracting opportunities include:
- The South has the highest number of projects per region (662) as well as the highest total value of projects per region ($15.2 billion), mainly due to the inclusion of Texas, Virginia and Florida. Southern states, especially Florida, often utilize regional projects and initiatives and later implement them statewide.
- The Midwest has the highest average value per project ($23.3 million), but the lowest number of total projects (423). Midwest states are innovators for cooperative contracts (WSCA) and many generic term contracts.
- The Northeast has an interim number of projects (514) as well as interim average value per project ($22.2 million). Northeast states are often early adopters and innovators for federally mandated initiatives.
From a vertical and regional standpoint, key takeaways include:
Justice and Public Safety (JPS) and Homeland Security (HS) Verticals
- The Northeast has the highest concentration of JPS contracting opportunities
- In the Midwest, most JPS initiatives occur at the local level (Ohio, Ill., Wis.)
- FirstNet will be a huge driver for state broadband initiatives nationwide
Health Care (HC) and Social Services (SS) Verticals
- Eighty-three percent of active HC/SS opportunities are for statewide systems
- Consortiums are increasingly popular nationwide for social services IT systems, including WIC MIS, SNAP/TANF EBT, and UI systems
- Most local-level HC/SS opportunities are for electronic health/medical records or vital records
General Government (GenGov) Vertical
- The South has the most active opportunities in the GenGov vertical (35.4 percent), followed by the West (24.6 percent), Northeast (21.6 percent), and Midwest (18.3 percent)
- Data center consolidation/modernization, disaster recovery services, server virtualization, and cloud services are expected to be popular technologies/services procured over the next few years
- California, Illinois and Texas have the most active GenGov opportunities, while active GenGov opportunities out of Pennsylvania, Virginia and California have the highest total value
Deltek is hosting a free webinar on the State and Local Regional Top Opportunities for FY 2014 Report on November 7, 2013, at 2 p.m. EST. The webinar will delve into all three state and local verticals, providing insight into some specific projects and overall trends for fiscal year 2014. To register for the webinar, please click here!
The most common terms appearing in justice/public safety and homeland security solicitations during October were fire alarm, camera/surveillance and radio. The below word cloud provides a visual interpretation of key-term frequency.
- Number of public safety bids: 1,077
- Top three states (by number of solicitations released): California (118), Virginia (79) and Texas (63)
- Keywords: fire alarm, camera/surveillance and radio
Frequency of terms:
- Surveillance: 31 (five state; 26 local)
- Radio: 12 (three state; nine local)
- 911 : 4 (one state; three local)
The below graph provides information on the break-down of the entities purchasing justice and public safety technologies.
- October was a slow month compared to the fervor of September, with far fewer projects released for state and local entities across all regions of the country, and the majority of RFPs released came out toward the end of the month
- Numerous projects released in September closed throughout October and are now under review to determine the most suitable vendor(s)
- Several local governments confirmed large radio and 911 projects are moving forward with solicitations planned in the near future
- Los Angeles, Calif., released a request for proposals (RFP) for a CAD-to-CAD consultant to draft an RFP for vendors to construct and implement a system for connecting four separate fire departments’ CAD systems
- Massachusetts released an RFP for next generation 911 products and services to hire a contractor to design, install, operate, monitor and maintain a turnkey NG911 system throughout the commonwealth
- Travis County, Texas, released a solicitation for an electronic monitoring system with the ability to determine a person’s specific location as well as verify their compliance with any curfew restrictions
- Maine is currently working on its court case management system project and intends to spend the next year securing funding and developing project specifications
The number of canceled opportunities sharply increased in October, though the reasons and ways in which the projects were canceled varied significantly. Numerous entities simply chose to cancel projects due to budgetary constraints or priority shifts. Lafayette, La., canceled its next generation 911 system for these reasons; while South Carolina canceled its long-planned incident-based reporting system (SCIBRS) website project, as it no longer requires these services. Further entities chose to sole source projects, such as Effingham County, Ill., which determined that only its existing vendor, Motorola, could provide a suitable replacement for its aging radio system.
The cancelation of so many projects, particularly ones that had been in the planning stages for several years, indicates that many purchasing offices are working to clean up their files and prioritize for the rest of the year. Given the large number of projects that have begun moving forward in recent months, it is not surprising that many entities found projects they are no longer interested in pursuing during this review.
Recent contracting trends reflect agency consolidation and cost savings goals. As a result, competitive stakes are raised for awards under large contract vehicles and government-wide programs. Delays associated with the government shutdown have compounded concerns and challenges for government contractors. Once the government reopens, there’s likely to be lag before contracted activities resume.
The SEWP contract vehicle is one of several that have been delayed by this month’s government shutdown. Others include the General Service Administration’s One Acquisition Solution for Integrated Services (OASIS) contract, valued at $60 billion, and the Department of Homeland Security’s continuous monitoring program. On Thursday, October 10, 2013, the National Aeronautics and Space Administration (NASA) Goddard Space Flight Center issued a special notice regarding the Solutions for Enterprise Wide Procurement (SEWP) contract vehicle. The fifth iteration of the SEWP contract vehicle has a ceiling value of $20 billion and a performance period of 10 years. Issued to contractors and interested parties that have signed up for updates, the notice from the SEWP program office explained that:
Due to the Government shutdown, the NASA/Goddard Space Flight Center has not completed its review process for the remaining questions and answers. Therefore, an update to the due date for SEWP V proposals will be released once the current Government shutdown is lifted. However, we anticipate the due date to be no earlier than November 1, 2013.
As previously noted: "The Contracting Officer will address the extension of the proposal submission due date, as part of the next amendment release."
NASA will be unable to respond to any individual emails or phone calls until the furlough has ended.
With federal agencies pursuing multiple award contracts and strategic sourcing, the delays have added further complications to government contractors coping with reduced spending levels, restructured programs, and increased competition. Additional delays could be in store once the government reopens. For example, contracts that were impacted by ‘stop work’ orders will need to receive notice to ‘start work’ again. Program offices that planning for follow on contracts, like SEWP, will have to address work related to current orders as well as looking ahead to the next round of competition.
- Wisconsin released an RFP for an online WIC EBT system. Proposals are due by December 3, 2013.
- Alabama released an RFP for a state disbursement unit (SDU) for the state’s child support program. Proposals are due by November 14, 2013.
- Iowa released an RFP for the state’s Medicaid Enterprise System Services, the state’s Medicaid management information system (MMIS). Proposals are due by November 27, 2013.
The Western State Contracting Alliance (WSCA) and National Association of State Procurement Officials’ (NASPO) “Computer Equipment, Peripherals and Related Services” contracts are the most successful WSCA/NASPO contracts by sales volume. They provide computer equipment including PCs, laptops, printers and copiers to participating states and localities. The success of the WSCA/NASPO computer equipment contracts is evident by the spend volume and the number of participating entities, including 45 states, the District of Columbia, and several dozen localities. In 2012 alone, the spend volume was more than $2 billion.
The 22 vendors currently associated with the contracts provide states the chance to seek multiple quotes and request the lowest price available on a wide variety of products ranging from desktop computers, laptops, tablets, servers, storage equipment, and accessories such as printers and monitors. The contracts provide states the opportunity to purchase computer equipment from multiple vendors as needed and also reduce contracting costs by streamlining procurement, sharing the administrative load, and providing volume-leveraged pricing.
As much as this contract benefits states, it also offers many advantages to awarded vendors. One of the biggest factors is the sales volume throughout the duration of the contract. The sales volume through these contracts since 2009 has exceeded $8 billion, with certain states spending upward of $100 million or more per year. The top 10 states per sales volume for 2012 can be found in the graph below.
Not only do these contracts provide great financial returns, but the high number of participating states gives awarded vendors a chance to build strong business relationships with many states and their entities. The awardees also see savings in only managing one master agreement with common terms and conditions instead of having to balance several contracts. It also provides resellers and partnering vendors the potential to participate at the option of the states and awarded vendors.
Key Take Away
As states and localities increasingly look to purchasing consortiums for administrative and purchasing savings, vendors must seriously consider these purchasing vehicles and determine if they fit their products and services. Minnesota, the lead state for the WSCA/NASPO computer equipment contract, recently released a new request for proposal (RFP), with proposals due November 18, 2013. More information regarding the current contract set to expire in August 2014 can be found in Deltek’s State and Local Term Contract Resource, which has more than 15,000 IT term contracts.
Not a Deltek subscriber? Click here to learn more about Deltek’s GovWin IQ database and take advantage of a free trial.