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. 

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!

With more than 70 statewide term contracts from Mississippi’s IT Hardware Express Products List (EPL), it’s evident that the IT hardware category is a hot one in today’s market. The state took one solicitation and created 70-plus contracts offering a wide range of products including desktop/mobile-based computers, GIS-level workstations, monitors, printers/scanners, servers, storage, and video-conferencing equipment.

Mississippi has 77 approved manufacturers and 99 resellers on the IT Hardware EPL. While there is no confirmed spend value for statewide term contracts since they are based on purchases over the course of a contract, vendors may see large returns; statewide term contracts offer a large range of products and are available for use by all Mississippi agencies, universities, colleges and governing authorities.

The state has a purchase limit for users of $200,000 per project, per fiscal year for the IT Hardware EPL, which notes the anticipated high value. Mississippi also requires customers to obtain quotes from at least two EPL sellers if their purchase will be more than $50,000, which increases vendor competition. Another benefit to the EPL is that new sellers can submit proposals to get in on the action every six months.

Mississippi’s EPL Interactive website provides in-depth contract, vendor and pricing information, specifically for the IT Hardware EPL contract, but is not as robust with spending information. The site allows users to search by category, manufacturer, and seller name. You can also search by manufacturer reseller group, where a manufacturer sets a not-to-exceed price that resellers must obey; from there, some resellers will offer discounts on that manufacturer’s price. They keep this updated as the manufacturer changes any products on their website to make sure it meets state requirements.

Displayed in Table 1 are the different IT hardware categories offered under the EPL. The audio-visual components class is offered by 20 manufacturers and 66 resellers, the most of all categories. Interactive devices, which include whiteboards, voting devices and displays, is a close second with 18 manufacturers and 64 resellers. Some vendors offer both of those top contracts, like the Visix Term Contract. Deltek’s State & Local Term Contract resource has a searchable, saveable, living record for each of the more than 70 Mississippi IT hardware contracts, and 1,200 IT hardware term contracts throughout the United States.

Key take-aways

The IT Hardware EPL contract is set to expire in June 2014, and the state has indicated a replacement RFP will be released in April 2014. If IT hardware vendors don’t want to wait for the new solicitation, they can get on this contract in the next update cycle – the due date for proposals is June 4, 2013.

Forty-six states are using term contracts as an approach to purchase IT hardware. To explore more term contracts and gain insight into competitor contracts and pricing, check out Deltek’s State and Local Term Contracts resource. Not a Deltek subscriber? Click here to learn more about Deltek’s GovWin IQ database and take advantage of a free trial.

• Software/Applications  – 258 solicitations
• IT Hardware/Computers/Peripherals – 227 solicitations
• Maintenance & Support Services – 152 solicitations
• Implementation/Integration Services – 125 solicitations
• Cloud/Data Center/Big Data Solution/Services – 99 solicitations
• Wireless & Telecom Equipment/Solution/Services – 63 solicitations
• IT Professional /Staffing/Consulting/Project Management Services – 44 solicitations
• Content/Document/Records Management Systems – 35 solicitations
• Education Data/Learning Management/Student Info Systems – 24 solicitations
• ERP/Human Resources/Financial Systems – 18 solicitations
•  Data Warehouse/Business Intelligence/Analytics – 17 solicitations

• North Carolina Information Technology Services (ITS) should develop and publish written guidance for developing state agency IT project cost and schedule estimates. The guidance should also describe the education, experience, and credentials needed by the personnel who develop the estimates.
• ITS should require state agencies to obtain independent validation of the accuracy and reasonableness of IT project estimates. Alternatively, ITS should require agencies to submit appropriate and adequate documentation so that ITS can evaluate and determine the accuracy and reasonableness of agency estimates.
• ITS should request that the General Assembly consider enacting state law to hold state agency managers accountable and require them to meet IT project cost and schedule estimates.
• ITS should develop and document a method to identify state agency IT projects that require the SCIO’s approval. ITS should also ensure that the EPMO Tool retains both historical and current information to allow for trending and analysis.
• ITS should develop and document procedures to verify state agency data in the EPMO Project Portfolio Management Tool.
• ITS should consider asking the General Assembly for the authority to ensure that ITS receives project status reports on schedule.

In his FY 2013-2015 Executive Biennium Budget, Hawaii Governor Neil Abercrombie highlighted the daunting challenges that faced his administration during the last biennium, including a $1.3 billion potential budget shortfall that threatened deep programmatic cuts to department operations statewide. The governor utilized a fiscal strategy to only address pressing needs while investing in the state’s future, with goals to improve government efficiency and transparency. For this biennium, Hawaii’s gross domestic product (GDP) is expected to increase by 2.4 percent in 2013, while unemployment rates continue to decrease.

The new biennium budget (seen above in Figure 1) has several areas of investment, including:

• Early learning and early childhood health
• Education IT and digital curriculums
• Increased resources for Hawaii’s aging population
• Environmental sustainability and protection

The biggest gains by department from FY 2013-2014 include the Department of Human Services ($309 million), Department of Budget and Finance ($251 million), and Department of Transportation ($52 million). The Department of Hawaiian Home Lands saw a budget decrease of $140 million. Investments for FY 2014-2015 include $151 million for the Department of Human Services and $91 million for the Department of Budget and Finance.

Although the numbers in Figure 2 look as if Hawaii has invested millions in information technology, the numbers actually represent more transparency into Hawaii’s IT reporting. Deltek was able to gather more data on the total value of IT projects in the state for the biennium budget. Health IT was a major investment, including $2 million for its health information exchange (HIE), $45 million for Medicaid IT initiatives, and $15 million for an electronic medical record (EMR) system. The Department of Taxation is also investing nearly $32 million into its tax system modernization project for FY 2013-2015.

Despite tough times that followed the economic recession, Hawaii has laid the groundwork for a stable foundation and is continuing to increase both its GDP and IT spending. Vendors working in the education, health, and environmental space should check out Deltek’s analysis on Hawaii’s budget here, and brush up on the Aloha State in our state profile application. For a free trial, please click here.

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:

• The Mississippi Department of Health (DOH) awarded its Patient Information Management System (PIMS) contract to Siemens Medical Solutions for just more than $3 million.
• The Hawaii Department of Human Services awarded the Electronic Health Record (EHR) Incentive Program contract to Xerox for nearly $9 million.
• The Kentucky Cabinet for Health and Family Services (CHFS) awarded its Health Insurance Exchange (HIX) Call Center project to Xerox. Deloitte is building the state’s HIX through  a contract awarded in October 2012 for more than $100 million.
• The Alabama Department of Mental Health and Mental Retardation awarded the Integrated Health Record System contract to CoCentrix.
• The Connecticut Health Insurance Exchange awarded its Small Business Health Options Program (SHOP) project to HealthPass.

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. 

Last April, Deltek utilized the Federal Communications Commission’s PSAP Registry to give vendors an overview of public safety answering points (PSAPs) in counties nationwide. Now, we’re using the current registry to detail information on consolidation efforts and other changes that have taken place across the country in the last year.

Consolidation projects have been taking place for the last few years as cities and counties work to become more efficient and, ultimately, save more money; however, the total number of PSAPs actually increased by 64 from 2012 to 2013. Still, of the 8,393 PSAPs, only 7,485 act as the primary call-taking location – 908 are considered “orphaned” and are no longer utilized. These orphaned PSAPs will not be included in future filings with the FCC.

Just as in 2012, Texas has the most PSAPs (667), followed by California (587) and Illinois (422) – all three states also saw slight increases in their total number of PSAPs year to year.

New Hampshire still has the fewest PSAPs (5), and Delaware’s nine puts it second from the bottom. Washington, D.C. held that spot in 2012, but an increase from seven to 11 PSAPs now ties the district with Vermont and Hawaii for having the third lowest number.

As of April 2013, a total of 719 PSAPs have changed name, state, county or city compared to only 679 that had as of April 2012. The majority of these took place in California, followed distantly by Nebraska – providing further evidence that dispatch centers in many locations are consolidating efforts and working to cover a wider geographical span.

The below chart provides a visual representation of PSAP locations by city and county in 2012 and 2013, as well as information on where vendors can find the most opportunities.

Analyst’s Take

The number of dispatch opportunities in each of the regional areas has remained steady since 2012, with nine solicitations in the works in Los Angeles and Boston, and 12 within 100 miles of Chicago and 21 within 100 miles of New York City. This should provide some hope for vendors that cities and counties are still interested in purchasing dispatching technologies despite the tough economic climate.

Dispatch technologies are among the most vital tools that police use, and localities have little choice than to purchase new ones once they reach the end of their life cycles. This trend, along with increasing number of PSAPs, is likely to continue as individuals’ ability to report where and when crimes take place becomes easier. 

Not a Deltek subscriber? Click here to learn more about Deltek’s GovWin IQ database and take advantage of a free trial.