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President Obama’s 2015 budget: Bringing back homeland and justice grants

The White House and President Barack Obama posted the fiscal year 2015 budget, which includes a number of initiatives from job growth and fiscal responsibility, to improving the nation’s security. Usually we think of national security at the federal level, with the Department of Defense and intelligence agencies, but often the first line of defense within the United States is held by state and local officials.
 
For nearly a decade, most Homeland Security and Justice Department grant programs have been reduced or remained stagnant. In cases like with the Federal Emergency Management Agency (FEMA), there are numerous grant programs, each with their own rules and regulations. As part of President Obama’s budget for the Department of Homeland Security (DHS), these grant programs will be simplified and consolidated into the already existing Homeland Security Grant Program (HSGP). While it is unclear the amount of funding that will be allocated, a more easily understood program will benefit state and local agencies vying for that money. Oftentimes agencies, particularly smaller ones, get bogged down with grant proposals and ultimately fail to win funds for reasons such as being unqualified for the grant to begin with.
 
As part of the budget proposal, both DHS and the Department of Justice (DOJ) would offer billions of dollars in grant funding. The DHS would have $1 billion for border protection and another half-billion dollars for technology research and development, and other initiatives. The DOJ and the DHS would offer local agencies millions to retain and rehire employees, including emergency management agents and police officers. The Byrne Justice Assistance Grant (JAG) has been funded in previous years, but a renewed commitment to these funds would be a vital source of money for local agencies. Agencies that are not connected to many of the federal criminal databases could utilize these funds to get up to speed as well as invest in officers.
 
Analyst’s Take
 
It is too soon to know whether President Obama’s budget will pass as constructed today. However, the inclusion of the public safety, emergency preparedness and other justice programs is a promising sign, especially to cash-strapped state and local agencies. There are numerous programs, including state criminal history initiatives that could move forward if funding is made available. The use of new technology in the justice system and within homeland security and emergency management would be welcomed by vendors with new tools, software and hardware that could reduce time in the field. Vendors should begin to follow the budget process to see what grant programs are funded, and reach out to existing clients who may want to expand existing systems or explore new opportunities.
 
 

DATA Act Passes House

Mid-November, the House passed the Digital Accountability and Transparency Act (or DATA Act), which stands to improve the transparency of federal spending. Introduced back in May of this year, the legislation would standardize and publish government reports and data related to financial management, procurement, and assistance. <font >

Under the legislation, the Treasury department is called to establish data standards in consultation with OMB, GSA, and the heads of federal agencies. In addition to standardizing the information, the data would be made publicly accessible in machine-readable format through the improved USASpending.gov site. Recipients of federal funding, including state and local organizations, would regularly report how money is being spent.

The accessibility of this data holds promise for delivering greater transparency to citizens and investors, identifying and eliminating waste and fraud through data analytics, and facilitating automation of compliance for contractors and grant recipients.

Introduced back in May, the House vote on H.R. 2061 passed the House on November 18, 2013. The Senate Committee on Homeland Security and Governmental Affairs passed their version of the bill (S. 994) and reported it to the full U.S. Senate on November 6, 2013. Although a version of the bill passed the House in 2012, it failed to receive Senate committee votes.

Currently, the version in of this legislation in the Senate removes a provision for an expanded role of the Recovery Accountability and Transparency Board’s accountability platform. This existing system has aided inspectors generals to find waste and fraud in stimulus grants and contracts. The substitute amendment not only cuts this accountability platform, it removes “prevent waste, fraud, abuse, and improper payments” from the goals of the bill. It might seem like this move hamstrings the inspectors generals ability to use this data, but that may not be the case. Once the data is available, other systems and technologies may advance to provide more robust analytics solutions. Although the Recovery Board’s accountability platform already exists, the Board itself is scheduled to end its operations in 2015. Unless the final version of the bill expands the accountability platform, inspectors general will be faced with a window to identify a replacement capability for recovering and preventing fraud.

Through its Open Data policy and associated initiatives, the administration has sought leverage transparency to stimulate innovation, increase efficiency, and reduce waste. Back in September 2013, the Data Transparency Coalition hosted the nation’s first open data policy conference to explore opportunities for new tools to streamline processes. As momentum behind these efforts continues and financial reporting requirements persist, contractors and grant recipients should anticipate further spending scrutiny to drive transparency and decrease waste, fraud, and abuse.

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Originally published for Federal Industry Analysis: Analysts Perspectives Blog. Stay ahead of the competition by discovering more about GovWinIQ. Follow me on twitter @FIAGovWin.

Deltek Pulse: Health care and social services July review

In July, the Department of Health and Human Services (HHS) released yet another round of funding under the health insurance exchange (HIX) establishment grants. Colorado was awarded a Level 2 grant, while Nevada, New Mexico, Vermont, Virginia and West Virginia all received Level 1 grants.

Here’s a quick breakdown of the recent awards:

·         Colorado - $116,245,677

o    Funds will be used to support outreach/education activities. They will also be used to assist in the development of Colorado’s consumer service center.

·         Nevada - $9,020,798

o    Funds will be used to support information technology security requirements, in addition to development of a virtual assistant to allow the state’s HIX to provide one-on-one consumer support and training.

·         New Mexico - $18,600,000

o    Funds will be used to support comprehensive outreach and marketing activities, training efforts, and standards for establishing the state’s Navigator program.

·         Vermont - $42,687,000

o    Funds will be used to support the design, development and implementation of the marketplace portion of fully integrating Medicaid and CHIP into the state’s newly integrated eligibility environment.

·         Virginia - $1,247,402

o    Funds will be used to perform analyses and reviews necessary to support certification, decertification and recertification of qualified health plans and stand-alone dental plans.

·         West Virginia - $10,165,243

o    Funds will be used to support the development of the state’s in-person assistance personnel and plan management activities.

States operating their own exchanges only have two months to get them up and running for consumers to enroll in plans that will begin in January 2014. HHS has awarded more than $4 billion so far in federal funding to support Affordable Care Act (ACA) requirements. This funding, which is critical to states’ development of HIX systems, will continue through 2014.

On the procurement side of the spectrum, July brought a lot of activity across health and social services departments. Here are a few contracts awarded last month:

Missouri - The Missouri Department of Health and Senior Services awarded its “Spirit System Software Enhancements” project to Custom Data Processing.

Arkansas - The Arkansas Health Connector Division awarded CAI to provide a guide management solution.

Wisconsin - The Wisconsin Department of Children and Families awarded Deloitte for “Child Support Enforcement Document Generation, System Integration Implementation and Training Services.”

And here’s a few projects coming down the pipeline:

Pennsylvania - The Philadelphia Department of Public Health (DPH) released a request for information (RFI) for health interface engine solution services. The state is seeking information on ways to facilitate the exchange of health-related data between several applications within the city.

Tennessee - The Tennessee Department of Finance and Administration confirmed plans to release a solicitation for pharmacy benefit management (PBM) services in June 2014. The current contract is held by CVS Caremark and expires in June 2015.

Nevada - The Nevada Department of Administration, on behalf of the Public Employees’ Benefits Program (PEBP), released an RFI for corporate medical exchange services. The state is seeking information on the scope of the market for the exchange to provide health insurance and related benefits to more than 31,000 people.

South Carolina - The South Carolina Department of Health and Human Services anticipates releasing a draft RFP and RFI for Medicaid management information system (MMIS) provider management services.

Wisconsin - The Wisconsin Department of Children and Families released an RFI for “Temporary Assistance for Needy Families and Collections Mainframe Transition Services.” The department is seeking information regarding moving similar systems from a mainframe environment to the Web.

Florida - The Florida Department of Health released an RFI for patient portal services. The department is looking to integrate a commercial solution to provide functionality required of a patient portal as a component desired to meet the 2014 electronic health record (EHR) certification criteria.

Want more? Be sure to check out Deltek’s robust database of opportunities that extend beyond the health and social services arena. Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial.  

Deltek Pulse: Health care and social services in review – April 2013

April saw the release of a tenth round of Health Insurance Exchange (HIX) Establishment Grants, awarded to Arkansas ($16.5 million), Hawaii ($128.1 million), Illinois ($115.8 million), New Hampshire ($5.4 million), and Rhode Island ($9.8 million). Details about states’ plans for these funds are explained here. On a related note, the Centers for Medicare and Medicaid Services’ (CMS) also announced the availability of new funding to support navigators in states with federally-facilitated or state-partnership HIX models. Activity also picked up in states that received funding for model design through CMS’ state innovation model (SIM) initiative, including Texas and Iowa.

Notable solicitation releases in April included:

  • The District of Columbia Department of Health Care Finance (DHCF) released an RFP for a Medicaid Information Technology Architecture (MITA) State Self-Assessment (SS-A). Deltek will provide updates about the future procurement of a Medicaid management information system (MMIS) here.
  • The Rhode Island Department of Administration, on behalf of the Department of Human Services (DHS), released an RFP for maintenance and operations of the InRHODES eligibility system.
  • Three states released RFPs for pharmacy benefits management (PBM) services, including the Kentucky Cabinet for Health and Family Services (CHFS), Mississippi Department of Health (DOH), and the Indiana Department of Administration (DOA).
  • New Hampshire’s Department of Health and Human Services (DHHS) released an RFP for SIM planning services.

Notable contract awards in April included:

Big news surfaced in Louisiana with the cancelation of a $29 million contract with Deloitte for the replacement Medicaid Eligibility Determination System (MEDS), originally awarded in April 2011. The state’s Office of Contractual Review cited the original RFP included a preference for a .net solution while Deloitte's contract proposal uses Microsoft Dynamics. The Department of Health and Hospitals (DHH) asked for an additional requirement for the system that was outside the original scopeand warranted a new RFP release. Prior to becoming the secretary of DHH, Bruce Greenstein was managing director of Worldwide Health for Microsoft. Greenstein also hired another Microsoft employee, Zachery Jiwa, to be DHH's chief technology officer, but he left the department in November 2012. DHH now plans to release a new RFP for the replacement MEDS.

Looking to May and the upcoming summer months, we anticipate activity will pick up in states participating in the SIM initiative as CMS approves states’ proposals, of which many have now undergone changes after initial review from CMS. We also anticipate an influx of contract awards for HIX navigator programs, particularly with CMS’ announcement of the availability of federal funding for navigators. States in federally-facilitated or partnership HIX models may also begin to draft legislation and plan for takeovers of additional HIX functions in the future, such as the recently enacted House Bill 1508 in Arkansas.

Not a Deltek subscriber? Click here to learn more about Deltek's GovWin IQ service and gain access to a free trial. 

Sequestration Effects on State and Local Opportunities

Several state programs could be in jeopardy beginning March 1st if the sequestration takes place. Programs that rely more heavily on grant funding through FEMA, such as emergency preparedness and disaster recovery, are more likely to be affected. Although, at this point, it is hard to determine the long-term effects; sequestration could potentially stunt any progress that has been made on these programs.
 
As previously highlighted by Kristin Howe, sequestration will have an impact on the public safety sector. Funds that have been set aside for relief of disasters such as Hurricane Sandy could be cut including the Disaster Relief Fund (DRF).  In addition, state 911 programs and emergency communication plans could also feel the aftermath of sequestration. States including: Massachusetts, California, Colorado, Michigan, Oregon, Pennsylvania, Virginia, Kentucky, Florida, Kansas, New Hampshire, North Carolina, South Dakota and New Jersey have all been making diligent efforts to implement or upgrade current 911 technologies to Enhanced or Next Generation systems. Some of these projects have already been put on hold in order to secure additional funding. Sequestration could potentially prolong that process.
 
Cuts to homeland security could diminish funds to the Assistance to Fire fighters Grant (AFG) program as well as state and local law enforcement grants from the Justice Department such as the Justice Assistance Grant (JAG). These cuts could harm a variety of  information sharing initiatives taking place in Arizona and Kansas as well as offender management projects taking place in Kansas, Oregon, Connecticut and Vermont.
 
Analyst’s Take
It will be interesting to see how sequestration could affect the extent to which localities move forward with projects. Many localities who have expressed desire to update 911 systems and emergency communication capabilities are prolonging their efforts in order to align with the state. Sequestration may diminish trickling funds and localities may instead look for opportunities to piggyback off statewide contracts.
 
Vendors should also note that there are other ways to get around DHS grant funding for projects such as NG911 and emergency communications. While there are other grant options available for NG911, many state agencies may choose to rely on increased surcharge collections to obtain additional funding.
 
GovWin IQ subscribers can read further into sequestration here. Non-subscribers can gain access with a GovWin IQ free trial.

 

Armed guards and video surveillance: A quest to further secure our schools

In the light of the recent shootings at Sandy Hook Elementary School in Newtown, Conn., governments across the United States are in hot debate over how to implement stricter security standards within our nation’s schools. This proactive approach to school security has led to the proposition of using armed security personnel such as police or trained guards to prevent the occurrence of any future tragedies. Another option brought to the table involves the implementation of extensive video surveillance networks in schools. Both approaches to increasing public safety standards have led governments to draw additional funds to help thwart these types of incidents.
 
Agencies across the nation, including the state of Virginia, are calling for budget discussions in efforts to restore funds that were previously cut for officer presence at schools. While personnel costs remain an expensive investment for governments to maintain, many feel the benefits will outweigh the extra costs in the long run.
 
Due to cost concerns, many states and localities are also considering arming teachers and other school staff to supplement having to hire additional law enforcement officers. This recommendation has generated a lot of questions among policymakers regarding liability, types of weapons, training, and standards that would differentiate between school staff and police officers. Schools are also considering hiring additional school resource officers (SROs), which are certified law enforcement officers assigned to a school district. The House Appropriations Committee has also announced a proposal for the inclusion of additional money to increase SRO presence within schools.
 
The spike in personnel needs also parallels the call for additional technology resources; some schools are considering increased surveillance measures such as linking video systems to police departments. While schools already utilize video surveillance systems for preventing criminal activity such as vandalism and theft, this is a first step to linking real-time feeds to law enforcement centers.The city of Atlanta, Ga., proposed integrating Atlanta Public Schools into the police department’s growing surveillance network. The goal is to have live video feeds transmitted into the city’s video integration center that is actively monitored by officers, and increase response efforts to any school-related catastrophe. By using this method, departments may have to increase their expenditures on employees to monitor the video feeds.
 
Analyst’s Take
 
These various steps to enhancing school security will surely offer vendors an opportunity to build business in the public safety market. Armed-personnel presence may push governments to purchase additional technology such as mobile/portable radios, and officer-worn cameras to improve operations. On the other hand, vast surveillance networks in schools could lead to the formation of private-public partnerships and additional systems integration with public safety departments. Cities and counties may even begin generating funds for the build out of real-time crime centers.
 
As part of continuous efforts to partner law enforcement and school districts, many schools will be eligible for additional grant funding for public safety infrastructure. Vendors should be on the lookout for grant programs that may be created or expanded, including the SRO program, to assist localities in paying for additional resources.
 
GovWin IQ subscribers can read further about surveillance projects here. Non-subscribers can gain access with a GovWin IQ free trial.

HHS releases $1.5 billion to states for exchange efforts

The Department of Health and Human Services (HHS) released a whopping $1.5 billion in funding to states to help fund initiatives around setting up their health insurance exchange, or should we say, “health insurance marketplaces,” as rebranded by HHS. The department believes the new name will help with marketing and raising public awareness of these upcoming systems. Here’s a breakdown of today’s awards:
 
Level-One Exchange Establishment Grant Recipients
Delaware - The Delaware Department of Health and Social Services received $8,536,543; activities will include supporting the review of qualified health plan applications in March 2013.
Iowa - The Iowa Department of Public Health received $6,844,913; activities will include developing an in-person assister program that will provide services to educate consumers about their health plan options.
Michigan - The Michigan Department of Licensing and Regulatory Affairs received $30,667,944; funding will be used to support the state’s Consumer Assistance Partnership Program.
Minnesota - The Minnesota Department of Commerce was awarded $39,326; funding will be used to support the technical infrastructure of the state’s information technology solution.
North Carolina - The North Carolina Department of Insurance received $73,961,296; funding will be used to support the implementation of the state’s healthcare reform module.
Vermont - The Vermont Department of Health Access received $104,178,965; funding will be used to complete projects necessary to meet the exchange certification requirements and ensure the system will be operational by October 2013.
 
Level-Two Exchange Establishment Grant Recipients
California - The California Health Benefit Exchange received $673,705,358; funding will be used to help build administrative and operational infrastructure.
Kentucky - The Kentucky Cabinet for Health and Family Services received $182,707,738; funding will be used to develop a comprehensive consumer and stakeholder engagement and support network.
Massachusetts - The Commonwealth of Massachusetts Health Insurance Connector Authority received $81,256,970; funding will be used to support the transition of the Health Connector to an Affordable Care Act-compliant, state-based exchange.
New York - The New York State Department of Health received $185,822,357; funding will be used to support marketing and outreach efforts.
Oregon - The Oregon Health Insurance Exchange Corp received $226,472,074; funding will be used to cover costs associated with testing, training and implementation of the IT user interface through the October 2013 enrollment date.
 
Be sure to check out Deltek’s brand new Health Insurance Exchange Vertical Profile Application. The expanded coverage gives vendors a competitive edge by extensively tracking states’ progress in HIX implementation. As always, be sure to follow Deltek’s Health Care and Social Services Team on Twitter @GovWin_HHS, or connect with us through LinkedIN.

REAL ID compliance deadline nears

On January 15, 2.2 million licensed drivers in the state of Iowa will have the option to possess a REAL ID. Iowa is among 13 states that have met the legal requirements necessary for implementing a REAL ID program. While many states are still opposed to any REAL ID legislation, those that have expressed interest will begin administering REAL ID cards on a voluntary basis beginning next week.
 
Efforts to implement REAL ID programs stem from the Department of Homeland Security’s (DHS) REAL ID Act of 2005, which proposes and regulates the inclusion of information and security features into each issued driver’s license/ID card. According to the Center for Immigration Studies, as of February 2012, 35 states expressed a commitment to comply with REAL ID requirements. Five of those states – Connecticut, Delaware, Maryland, South Dakota and Tennessee – have submitted compliance packages to the Department of Homeland Security. Ten states have expressed interest in improving secure driver’s license and identification standards, but are opposed to any REAL ID legislation.
 
Much opposition toward these programs is due to fear that REAL ID will eventually lead to the creation of national databases. Other issues center on the costs associated with compliance. Estimates have demonstrated that the cost of a REAL ID program will cost about $11 billion over five years. The cost burden has caused states to rely on available government grants to help fund their program. The DHS has awarded more than $200 million in available grants since 2008 to help fund implementation efforts. Total grant allocation has increased since first introduced in 2008. Initially, the only states that received funding were those that submitted proposals detailing how available funds would be used; these were termed “priority” states.
 
While REAL ID remains off the radar of federally mandated programs, it is expected in the coming years that some federal agencies and/or buildings will only accept a driver’s license in compliance with REAL ID standards. The current law is expected to be phased in over several years as drivers wait until their current license expires.
 
Analyst’s Take
 
Most states have generated some support for more stringent standards for DL/ID documents in efforts to curb identity theft and fraud as well as prevent future acts of terrorism; therefore, it is likely that many states will be committed to upgrading their current DL/ID systems in the coming years.
 
Although some states have flat out rejected any movement toward REAL ID programs, there may still be selling opportunities available for vendors. Michigan and New York are among a few states that have chosen to enhance existing security features to their current ID programs through an Enhanced Driver’s License (EDL) program. EDL has become a likely alternative to REAL ID due to lower implementation costs, and vendors should note that specific guidelines for obtaining EDL may vary from state to state as different forms of identification may be required.
 
Vendors should also make note of which states have applied for or have received grant funding to assist with REAL ID implementation efforts. January 15 may launch many state agencies to upgrade a multitude of systems including information-sharing databases that may need to be linked with state systems.

 

Deltek pulse: justice/public safety and homeland security December review

The most common technologies and services procured across states and localities in December were fire alarm and suppression systems, security/cctv systems and 911 systems. The word cloud below provides a visual interpretation of key-term frequency.

  • 911 systems: 6 solicitations
  • Security/ CCTV systems: 19 solicitations
  • Fire Alarm or Suppression Systems: 19 solicitations

Public safety communications for cities and counties around the country hit a turning point in December. While there were numerous trends throughout 2012 – from an increase in the use of NG911 technologies, to public safety institutions beginning to use cloud-based options for computer-aided dispatch (CAD) records management systems (RMS) – one trend exceeded them all: narrowbanding.

December was the final month localities had to meet the FCC’s narrowbanding requirement or request waivers if they had no hope of doing so. Even those granted waivers were required to have concrete plans in place about how and when they expect to meet the deadline, and localities worked diligently to put those in place. Several localities announced plans to replace or upgrade their radio systems in the near future, and others made definitive decisions about how they would be moving forward with those projects. Fulton County, Ga., released an RFP on December 28 for its radio system, and Carroll County, Md., made the decision to move forward with its radio system without the aid of a consultant. Despite the passage of the narrowbanding deadline, many counties and cities will still be looking to upgrade their radio systems in the coming months and years, as a large number have not yet met the FCC’s requirements.   

Radio solicitations were not the only ones released in December; several states and larger localities also moved forward with large-scale projects that had been in the works. The city of Freemont, along with Dodge County, Nebraska, released an RFP for 911 call processing equipment. Massachusetts released an RFP for its electronic filing project two years after the RFI was issued. The state also released a solicitation for an inmate phone system for all facilities run by the state corrections department. 

Numerous requests for information for major projects were also released in December. Kansas released an RFI for E911 GIS for all of the state’s public safety answering points (PSAPs), and Vermont issued a statewide RFI for an automated vehicle locating system for the Department of Public Safety. 

The widespread release of solicitations highlights one of December’s main trends: increased clarity regarding the direction of projects. Across the county, it seems as though decisions were finally being made about how to proceed with projects. Florida finally canceled its initiative to develop a federated security plan after releasing an RFI in July 2011, and in Alaska, development of a solicitation for a case management system has officially begun. 

The last major trend of December involved, unsurprisingly, increased interest in emergency notification systems. After the devastating weather phenomenon experienced in 2012, from July’s derecho to Superstorm Sandy, localities are beginning to realize the importance of being able to contact citizens at a moment’s notice. The increase in electronic communications has underscored the need for communities such as Honolulu, Hawaii, and Illinois State University to branch out in how they communicate with citizens.

Analyst’s Take

Vendors should be on the lookout for more solicitation releases in the coming months. It is likely that departments will issue RFIs to gather budget information for projects they hope to pursue in the coming fiscal year, which begins for most states and localities on July 1. Many departments will also begin assembling their budget proposals if they have not done so already, and they will require a clear picture of expected costs. This may also be the reason for the rise in solicitations. Often, departments are required to use the funds they have been granted before the end of the fiscal year, or they risk losing them. By releasing RFPs now, it is likely that they are counting on being able to award them and sign a contract prior to the beginning of the fiscal year. 

Many local agencies are also taking the fiscal cliff and sequestration into account as they make decisions about what projects will move forward. While the fiscal cliff was averted earlier this week, the bill passed acted only as a stopgap measure, and sequestration is still very much a reality. Congress only has until March 1 to pass additional measures to keep sequestration from going into effect. Agencies are therefore likely to continue working quickly to utilize any federal grant money they were given for this year. Should sequestration take effect, this grant money may be reduced or eliminated completely; so many communities are seeking to upgrade systems now in anticipation of the reduction in funds that may come next year.

These factors help explain the increased clarity on whether projects will be moving forward, as it will be imperative for solicitations to be released in the next few months to ensure that localities have time to conduct a complete evaluation period prior to the end of the current budget cycle. For those working on larger, multiyear projects, or that are allowed to carry over funds, it is still likely that procurement and program officers will be looking to move forward with projects as soon as possible. Expect solicitations to be released sometime toward the end of Q1 or beginning of Q2 so that agencies will be ready to award projects once FY 13 funds become available in July.  

 

Vendor landscape in relation to JPS contracts won

Vendors looking for business opportunities in the justice/public safety (JPS) market are more likely to turn their heads toward California and Texas. According to Deltek’s database, a majority of JPS contracts awarded over the last three years have taken place in these states.  Vendors seem to have picked up on this trend, as California and Texas are also home to many JPS vendors’ headquarters.
 
Deltek compiled a list of vendors who sell a multitude of JPS technologies, including radio communications, 911, surveillance and analytics. Most vendors who sell these technologies are primarily located in California, Texas, Florida, Virginia and New York, as shown below.
 
 
Over the last three years, the greatest numbers of awarded JPS contracts have come out of California, Texas, Washington state, Florida, Massachusetts, Virginia and New York. This is most likely due to the fact that these states have larger budgets and greater populations. Many of the darker-shaded states are home to some of the most populated cities in the United States. In addition, major cities within California, Texas, New York, and Massachusetts were among the top recipients of UASI grants in both FY 10 and FY 11, including New York City, Los Angeles, Houston, Dallas/Fort Worth and Boston. Allocations for 2012 show that cities in New York, California and Florida will be among top recipients.
 
There is also strong correlation between where JPS contracts are being won and where the majority of vendors’ headquarters are located. This is likely due to vendors seeing greater business opportunities in these areas, and catering the majority of their marketing to these states.
 
 
The map shown below better depicts the correlation between vendor locations to contracts awarded in each state over the last three years. The vendor-to-contract ratio is pretty close, as shown by the darker states having the greatest number of both awarded contracts and vendors.
 
 
 
Analyst’s Take
 
Most vendors are focused on larger states such as Texas and California. Vendor location is highly important for business since vendors find greater benefit in locating where they can lobby for more contracts. Vendors looking to expand business, whether through relocation or setting up an additional office, may consider doing so in states that sign the most contracts.
 
Larger companies may have shied away from setting up headquarters within some of the centrally located states, not because they can’t win business, but because some of these states house small cities and counties that have an allegiance to home-based companies. The JPS market is traditionally more localized; therefore, smaller companies, though less likely to win a plethora of contracts, are more likely to win business with localized cities and counties. This also holds true nationwide. Many smaller governments like to localize their purchases, which in turn stimulates the economy and creates a ripple effect of generating more local business and creating more jobs.
 
Still, with most massive statewide initiatives such as radio communications, there is less of a trend toward vendor location, as states tend to consider top technology providers regardless of where they are located.

 

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