GovWin
 
 
A Look at the Defense Agencies Initiative (DAI) ERP Program

Since Congress first mandated in 1994 that the Department of Defense achieve full auditability of its financial statements, the DoD has engaged in multiple lengthy and costly efforts to implement Enterprise Resource Planning (ERP) Systems. Former Defense Secretary Leon Panetta recently pushed up the date by which the DoD is supposed to be ready for full auditability from FY 2017 to September 2014. Congress then adopted this date into the National Defense Authorization Act (NDAA) for FY 2013, a development that put considerable pressure on the DoD to accelerate the pace of its ERP deployments. The date changes are beneficial for the contracting community because the DoD is unlikely to meet its updated deployment schedule. This suggests that despite the difficult fiscal climate the DoD will continue funding ERP deployments and all of the related work associated with these systems. Funding means contracts and contracts mean business opportunity.
 
One of the many systems being implemented is the Defense Agencies Initiative (DAI). Per the FY 2014 Exhibit 300 for the DAI, the program leverages the Oracle E-Business Suite, version 11i, to modernize Defense agency financial management capabilities in 7 process areas: Procure to Pay, Acquire to Retire, Order to Fulfill, Time & Attendance, Budget to Report, Cost Accounting, and Grants Accounting. The DAI is a holdover project from the Business Transformation Agency that is now under the purview of the Defense Logistics Agency. Work on the various elements of the DAI is directed by the DAI Program Management Office (J623) which resides under the Information Operations (J6) Program Executive Office (J62) at DLA.
 
Background
 
Implementation of the DAI began at the BTA in 2006-2007 with the award of a 5 year contract to Computer Science Corporation (CSC) for the DAI Financial Business Management Solution. Since that initial award DAI implementation efforts have also commenced at the Defense Threat Reduction Agency (DTRA), TRICARE Management Agency (TMA), Defense Technology Security Administration (DTSA), Defense Prisoner of War Missing Personnel Office (DPMO), and Washington Headquarters Service (WHS). Readers should keep in mind that this list is limited to those customers for DAI which could be confirmed. According to the DAI PMO, the Defense Applied Research Project Agency (DARPA) and the Office of Economic Adjustment (OEA), Defense Security Service (DSS), and Defense Media Activity (DMA) also have been prepped for the implementation of DAI.
 
Assuming it is the DoD’s intention to eventually implement DAI across all of the Defense agencies, the following agencies remain potential candidates for DAI deployment, implying that further contract support may be planned.
 
 
Contract Support
 
The following contracts have been identified as related to DAI implementation efforts over the period from FY 2007 to FY 2013. As we can see, a number of these are expiring in FY 2014, 2015, and beyond, providing the potential for follow-on work to be procured, or for new contracts to be competed to perform deployment services and support for the agencies listed above. In addition, the possibility exists that more contractor support for DAI sustainment will be required.
 
 
Historical Spending
 
Historical spending to date on the contracts listed above is as follows. Curiously, there is a considerable discrepancy between the reported base and all options value of these contracts. Likely this is because many of the contracts have remaining option years on them to be exercised. Also, it is possible that spending on many of the contracts remains unreported.
 
 
 
Lastly, the chart below depicts spending on these contracts over the period from FY 2010 to FY 2013. Obligations on these contracts began ramping up in fiscal 2010 to reach a high point in fiscal 2012. Now, in fiscal 2013 it looks as if spending is slowing, probably due to the uncertainty surrounding Sequestration.
 

Conclusions
 
Wrapping up, there is good news and bad news. The bad news for the DoD is that much like the challenges facing Army ERP implementations, the Defense Agencies Initiative will likely struggle to hit full deployment milestones for all of the participating agencies by the September 2014 deadline mandated in the FY 2013 NDAA. The challenge of meeting the deadline becomes even more daunting when potential cuts from Sequestration are taken into account. Should Sequestration be imposed in its current form, funding for many of the DoD’s ERP deployments would undoubtedly take a hit. This does not mean that funding will dry up. It will simply be reduced.
The good news is that in chaos there is opportunity. Given the legislative mandates, the DoD is likely to continue spending on ERP implementation. In FY 2014 the budget for DAI is $99M, out of which $52M (52%) is for development, so funding for DAI this fiscal year is not a problem, assuming an FY 2014 budget is passed. Even if the DoD is forced to operate under another Continuing Resolution at FY 2013 baseline numbers, the funding for DAI will be similar (DAI DME funding in FY 2013 is $63M). In short, DoD ERP implementations like the DAI are likely to remain excellent places in the next few years to seek out business opportunity in trying economic times.

 

 

A closer look at Mississippi’s IT hardware term contracts

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.

Montana's 2013 spending forecast

Just four months into the year, Montana has already awarded 86 statewide contracts – 11 of which were IT related – according to the state’s transparency website. The state started off the year slowly, only awarding a few contracts in January and February, one of which was IT related; but with more than half of the contracts awarded in April, Montana’s procurement cycle is picking up steam.
 
The beginning and final months of the year are always slightly slower with contract awards, while the start and end of the fiscal year (ending in June and beginning in July for most states) prove to be much livelier for procurement. 
 
Last year, Montana’s awarded contracts had a bell-curve distribution; Q1 started off sluggish, the majority of contracts were awarded in Q2 and Q3, and activity died down again in Q4. If this year is any reflection of last year, we should look for an active next couple of months in the state.

As awarded contracts are growing in number, the Q2 spending trend becomes evident. Oftentimes states with a June-July fiscal year see a lull in spending at the end of the fiscal year, once funds have been used up. However, they typically see spending pick back up in July as project funds are approved and allocated. Therefore, vendors should be ready for high procurement activity ahead.
 
Most of this year’s awarded IT contracts are for software and software systems, and awarded vendors include Dell, High Point Networks LLC, and Hewlett Packard State and Local Enterprise Service. Further IT procurements include contracts for telecommunications systems, technological equipment, and professional services, of which CenturyLink, Compview Inc, and Northslope Capital Advisors are among the awardees. All of these vendors are pretty big players in the IT market, which means Montana contracts are fairly competitive and the state tends to do business with existing vendors. Smaller and newer vendors should take note of this.
 
The awarded contract values range from $17,000 to $500,000, and total approximately $1 million spent on IT contracts this year. Vendors should keep an eye out for more high-value contracts in the coming months as Montana still has a lot to spend. 
 
Additionally, state departments just submitted their proposed budgets and bills for approval, and as Governor Steve Bullock approves them, procurement activity will rise. The Governor’s Information Technology Summary mentions a few projects the state is most interested in pursuing, including a statewide voter registration system, enhancing e-services for property and state taxes, and a computerized management maintenance system. The state outlined more than $15 million for these opportunities, as well as more than $14 million in long-term IT projects. Further opportunities can be found in the Montana state profile database.
 
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North Carolina’s bleak performance audit of 84 IT projects

Vendors who have ever worked on a government IT contract know that there are often discrepancies between initial estimates and actual hours worked and dollars spent on the project. In a way, overages (time and budget) have become the unspoken status quo for many projects. The problem is state and local governments looking to cut waste and seek efficiencies are realizing that this new norm is counterproductive to their bottom line.
 
The North Carolina State Auditor’s Office released a performance audit on April 12 that called out 84 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 suggested. Essentially, these projects have cost twice as much and taken 65 percent longer than expected.
 
The audit highlighted some of the more glaring examples, such as the state’s Medicaid management information system (MMIS), which was initially estimated to cost $92.7 million with the project completed in November 2011. However, the MMIS project ballooned to $229 million and now has a completion date of October 31, 2013. Another example is the N.C. toll collection management system (TCMS) project, which was expected to cost $19.8 million, but now has a revised budget of $41 million.
 
The most egregious project on the audit is the state’s tax information management system (TIMS), which had early estimates of costing only $525,000, with a completion date of December 31, 2011. Nonetheless, the project exploded to $97.3 million and now has a due date of January 31, 2014.
 
The audit highlighted the seriousness in which the state of North Carolina is viewing this problem and pinpointed two main issues that have heavily contributed to the overages among state IT projects:
 
1.    Actual costs and schedules differ significantly from original estimates, which can result in unplanned spending and resource use.
a.     No standard practice for creating IT projects estimates
b.    No independent validation of agency estimates
c.     No accountability for unreliable estimates
2.     Procedures do not ensure complete, accurate, and timely data.
a.     No method to identify IT projects that circumvent the SCIO approval process
b.    No assurance that historical IT project data is preserved
c.     No oversight/review of self-reported IT project data from state agencies
d.    No consequences/incentives to compel state agencies to submit IT project status reports in a timely manner
 
The auditor’s office made six recommendations to mitigate these issues:
  • 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.
 
North Carolina’s new chief information officer (CIO), Chris Estes, agreed with all six recommendations produced from the audit and said ITS will address the issues found in the audit in the upcoming Statewide IT Plan, which is expected to be released on October 1, 2013.
 
Analyst’s Take
 
The audit reviewed IT projects from December 2011 to October 2012, and selected only projects whose original cost and schedule estimate data was available. North Carolina has a total of 1,034 state IT projects contained in its Project Portfolio Management database, with 128 active IT projects valued at $1.7 billion. Besides the cost of the overages identified, the fact that only 84 out of 1,034 IT projects had enough information to be included in the audit to begin with more than justifies the audit’s findings and recommendations.
 
If taken seriously, the North Carolina 2014 IT plan will include hard and fast solutions to improve oversight and management of state IT projects moving forward. These solutions will likely come in the form of policy, procedure and personnel restructures that will affect existing contracts and future procurements. Vendors looking to do business with North Carolina should count on an extra layer of scrutiny during the procurement process, especially when it deals with pricing, scheduling, and the management and success rate of past IT projects.
 
  
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The Joint Information Environment (JIE) Begins Taking Shape

Over the last two years, the Department of Defense’s effort to create a new Joint Information Environment (JIE) has been in the news a lot. The JIE is mentioned in practically every briefing and interview with DoD officials, but details concerning what the JIE is and where work related to the JIE is being done are hard to come by. In this post I will attempt to provide some substance to the elusive JIE and in the process point out a few areas where I see work happening.

First, what is the JIE? My rudimentary understanding is that the JIE is a common set of technology standards, products, and open architectural approaches that are being implemented to enable system interoperability, enhance security, and make capabilities available to any DoD end-user on any approved device. In short, the JIE is the DoD-wide version of common operating environments/pictures that many federal agencies are currently implementing. In the DoD’s case, work toward the JIE is going on at all levels. The Military Departments are working on it in their own network convergences (e.g., LandWarNet, NMCI/NextGen, and AFNET) and, generally speaking, work at the Defense agency level is being directed by the Defense Information Systems Agency (DISA). Given the size of this topic, this discussion will be limited to outlining some of the work going on at DISA.

DISA’s JIE Strategy

Back in August 2012, DISA released its Global Information Grid (GIG) Convergence Master Plan (GCMP), a strategy document that outlined the agency’s vision for the JIE. GCMP sections 2.1 through 2.3 described the following objectives that DISA is seeking to achieve. Readers please note I’ve changed a little of the language in the DISA document to cut down the amount of text:
Short-term objectives
  1. Provide common user services and platform services through consolidation of infrastructure and existing software licenses.
  2. Provide two private clouds: an unclassified DoD cloud and a classified DoD cloud.
  3. Improve end-user device access by migrating end-user applications to the cloud and migrating end-users to a Virtual Desktop Interface (VDI) environment.
Mid-term objectives
  1. Develop methods, when using commercial cloud service providers, which protect data in transit and at rest, authenticate users, and apply appropriate access controls.
  2. Provide virtual container technologies supporting secure unclassified operating environments on a wider variety of approved end-user devices.
Long-term objectives
  1. Move to a commercial-government hybrid cloud computing environment with DoD retaining the identity provider role.
  2. Improve service interoperability across core, intermediate and tactical edge environments.
Achieving the Short-Term Objectives

Although DISA laid out these objectives in short, mid, and long terms, each stage is interrelated and in some cases DISA appears to be working toward all terms simultaneously. Starting with Short-Term Objective #1, DISA, the Air Force, and the Army awarded the 3 year, $617 million Joint Enterprise License Agreement for Microsoft products last December. Meanwhile, as mentioned above, infrastructure consolidation efforts are ongoing at both the Defense agencies and in the Military Departments. An example of this would be the ongoing effort to integrate the networks of U.S. Africa Command (AFRICOM) and U.S. European Command (EUCOM).

As for the effort to establish the private clouds mentioned as Short-Term Objective #2, this is proceeding at a slower pace. DISA announced just last month that it has developed a process for gathering and assessing mission partner requirements and establishing contract evaluation criteria for an Enterprise Cloud Service Catalog. This suggests that competitions for cloud computing contracts by DISA are likely to be coming in FY 2014. DISA also began laying the groundwork to address Short-Term Objective #3 by awarding a sole source contract in April 2013 to Jackpine Technologies. Under this contract, Jackpine will continue developing combined milCloud and Infrastructure-as-a-Service capabilities resulting in the delivery of an ALVE (Application Lifecycle Virtualization Environment) that will support DISA's Agile, Rapid Development and Deployment Model. The migration of users to a Virtual Desktop Interface (VDI) is the one area of this plan that seems to be moving ahead at the slowest pace. One potential area of progress is the Broad Agency Announcement (BAA) for a Mobile Device Common-Access-Card-Enabled Thin Client solution that DISA released in September 2012. Under this BAA multiple vendors will provide innovative solutions for Common Access Card (CAC)-enabled virtual thin client solutions for managed and unmanaged mobile devices. Presumably, these solutions would also address the requirement for virtual container technologies listed as Mid-Term Objective #2.

Achieving the Mid-Term Objectives

Regarding Mid-Term Objective #1, work to be performed under the mobile device CAC enabled thin client BAA discussed above would address these requirements. Similarly, DISA’s Program Executive Office Mission Assurance and Network Operations recently released a Sources Sought Notice for Community Data Center (CDC) and Sensor Operations. Under this contract, the industry partner will support Centaur Operations within the Community Data Center. Centaur Operations protects and defends the JIE, DoD Enterprise Services, and the GIG through the maintenance of network sensors and tools that gather terabytes of data. Fulfilling this requirement entails designing, building, and maintaining cloud based multi-petabyte parallel distributed files systems and “big data” analytics.

Achieving the Long-Term Objectives

Concerning the longer-term objectives, it appears DISA will fulfill these by building on solutions that it acquires in the short and mid-term. For example, achieving Long-Term Objective #1 is fulfilled by DISA’s efforts to stand up commercial cloud and cloud broker offerings, as well as through the CDC and Sensor Operations acquisition. This leaves Long-Term Objective #2, enabling interoperability across core, intermediate and tactical edge environments. This goal will only be achieved when work being done across the Military Departments’ networks reaches a sufficient level of maturity. In DISA’s case, however, the agency recently took a big step in this direction by awarding a $45 million sole source Blanket Purchasing Agreement to Alliance Technology Group for Large Data Object Storage. The LDOS capability will provide the foundation for an ISR Storage Cloud that enables the sharing and analysis of ISR data across all components of the DoD.

In conclusion, work on the JIE is just getting started. Mobile computing and communication solutions, for example, will also be part of the JIE. However, DISA is expected to award contracts for this requirement soon. Industry can remain confident that more requirements are sure to come.

 

Deltek releases annual state-of-the-states analysis: Webinar to be held this Thursday

Every year, Deltek analysts carefully comb through all 50 governors’ state-of-the-state and budget addresses to identity crucial trends in rising and falling priorities. Understandably, the past few years haven’t been so fruitful, with states cutting key programs, canceling major projects and shifting efforts to stay afloat amid recession’s strapped-budget undertow.
 
Fortunately, states are successfully weathering the storm, and this year’s report contains a bevy of potential vendor opportunities as governors’ agendas increased project items for the first time since 2008. Overall, the total number of governor agenda items rose a sharp 11.6 percent from 2012.
 
In addition to the report, Deltek is presenting a free webinar this Thursday at 2 p.m. EST so vendors can learn how to align technologies with current and emerging policy trends. Go here to register for the free event.
 
Major take-aways from “State of the States, 2013,” include:
  • Governors’ renewed interest in performance-based management, particularly in education
  • More effort to cut corrections and incarceration costs by investing in probation, parole and electronic monitoring programs
  • Heavy focus on Medicaid expansion (both for and against), and how to reduce its costs
  • Increased dedication to developing a strong future workforce by establishing a wealth of present educational opportunities, led by digital learning platforms
  • Amplified justice and public safety initiatives due to natural disasters (Hurricane Sandy) and national tragedies (the Newtown shootings)
  • Continued plans to streamline and consolidate government operations through technology
The report also breaks down governors’ 2013 goals per vertical market, with several charts detailing the number of agenda items mentioned year to year and technology-specific projects.

The full list of report graphs include:
  • 2013 by vertical
  • 2011-2013 comparison by vertical
  • 2008-2013 average by vertical
  • 2013 Agenda Item Popularity vs. 2011-2013 average by vertical
  • Top 25 cross-over agenda items
  • Agenda items with mention of technology, 2013
  • Agenda items mentioned by state, 2013
  • Community development, economic development/regulation, natural resources/environment, and transportation agenda items, 2013
  • Education agenda items, 2013
  • General government services and public finance agenda items, 2013
  • Health care and social services agenda items, 2013
  • Justice/public safety agenda items, 2013
To read the full, 33-page report, please go here. Deltek clients that subscribe to State & Local Industry Analysis (SLIA) may also request (via their Deltek Client Advisor) the Excel workbook containing all of the agenda data compiled for the report.
Lastly, please register for our free webinar this Thursday to learn more about the initiatives and implications of 2013’s state-of-the-state addresses.

 

Deltek salutes national telecommunicators

Every April, National Public Safety Telecommunicators Week celebrates the work that telecommunicators engage in every day to keep their communities safe. These individuals are often the first line of defense in the face of tragedy and work to keep everyone calm on what may be the worst day of their lives. When a call comes in to 911, they are the ones charged with gathering salient information, determining which agencies are best to respond, and dispatching first responders.

Public safety telecommunicators also provide key instructions for individuals calling in with an emergency, whether instructing them where to hide during a home invasion or how to give CPR and clear an airway.  

Telecommunicators rely not only on their extensive training and people skills, but also a complex network of technologies to ensure the appropriate help arrives at the correct emergency location as quickly as possible. In the past year, communities nationwide have recognized the importance of these essential technologies and have sought to upgrade or replace antiquated systems.

In the past year, several solicitations were released for the following technologies:

  • 911 (Enhanced and Next Generation): 24 
  • Records Management Systems (RMS): 19 
  • Computer Aided Dispatch (CAD): 13 
  • Automatic Vehicle Location Systems (AVL): 7 
  • Geographic Information Systems (GIS): 6

Many public safety priorities for 2012 and 2013 emphasize increasing utilization of these systems and improving first-response efforts, which rely heavily on cooperation of neighboring jurisdictions or agencies in the event of an emergency. Increased interoperability coupled with the ability to receive information in real time has greatly enhanced overall telecommunications.

While most state and local governments manage their own dispatch centers, there is likely to be a continued focus on consolidation and partnerships between agencies to curb costs and improve efficiency. Dispatch equipment such as CAD, RMS, GIS mapping and AVL technology are typically procured through a formal solicitation process. Usually, CAD and RMS equipment are procured together, but as most of these technologies require integration, agencies may choose to procure all equipment within a technology suite. This helps agencies save time and money and allows for simultaneous upgrade and implementation processes.

The upgrade or enhancement of 911 systems to next generation has been on the radar of many governments over the past few years due to many systems becoming obsolete. Next generation 911 advancements have put pressure on agencies to incorporate new capabilities into 911 systems, such as the ability to receive text-to-911, video streaming and picture messaging. Most 911 projects are implemented through a formal procurement process, and some agencies even prefer to utilize an RFI or hire a consultant prior to formal implementation. Despite tight budgets, agencies will likely continue to put forth the effort to ensure the most efficient and advanced dispatching technologies are purchased because, like dispatchers, these systems are central to the mission of public safety agencies.

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Deltek pulse: General government services March review

March continued to follow the February trend of increased solicitation releases from state and local governments. A total of 1,539 IT-related general government solicitations were identified in Deltek’s GovWin IQ database in March, which is a 19.3 percent increase from February.
 
Here are March’s top 10 most common IT procurement categories in the state and local market:
  • Software/Applications – 320 solicitations
  • IT Hardware/Computers/Peripherals – 222 solicitations
  • Telecom/IT Maintenance and Support Services – 176 solicitations
  • Telecom/IT Implementation/Installation/Integration Services – 136 solicitations
  • IT Staffing/Consulting/Project Management Services – 72 solicitations
  • Data Center/Data Warehouse and Data Management/Collection – 28 solicitations
  • ERP/Human Resources/Financial Systems – 19 solicitations
  • Content/Document/Customer Relationship/Records Management Systems – 16 solicitations
  • Telecom Solutions/Equipment – 14 solicitations
  • BI/Analytics/Performance Management Solutions – 7 solicitations
 
Here is a look at current tracked general government IT opportunities:
The Texas Department of Information Resources (DIR) released a request for offers (RFO) on March 8 seeking a software reseller and related services. Originally, DIR planned to release an individual RFO for Microsoft software products, but opted to consolidate a solicitation for Adobe, Novell and Microsoft products into a single RFO. Offers and vendor references are due by 2 p.m. on April 9.
 
The Washington Department of Licensing released the request for proposals (RFP) for a prorate fuel tax reporting system on March 13. The state is seeking a single, fully-integrated Web-based computer system for management of the state's pro-rate and fuel tax responsibilities. This system is critical to the administration of two federally mandated programs – the International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) – and the collection of fuel tax revenues. RFP questions are due by April 16, and proposals are due by June 21. The state estimates an award in September, with a contract starting in November 2013.
 
The Illinois State Procurement Office released an RFP for a vendor portal. The state is seeking a Web-based, hosted solution to create a vendor portal to serve as the primary location for entering, organizing, and reviewing vendor information. Proposals are April 11. The state estimates an award date of May 6, 2013.
 
The Alameda County Procurement Office released a request for interest (RFI) on March 4 for a procurement card program. The county will continue to accept RFI responses until a formal RFP is issued, which is expected by April 15. Proposals are expected to be due by May 20, 2013.
 
Deltek’s point of contact in the Montana State Procurement Bureau confirmed that the current master contract for IT services, though set to expire on June 30, 2013, is expected to be renewed for an additional three years. The multi-vendor contract will have a new expiration of June 30, 2016, for all 37 incumbent vendors. The State Procurement Bureau confirmed that it expects to release a solicitation at that time.
 
Notable awards
Deltek confirmed that Florida’s Broward County Public Schools awarded a contract for its technical contract staffing project to three vendors: Key Technical Resources Inc, Millennium Technology Group LLC, and Universal System Technologies Inc. The contract is valued at $2,250,000.
 
The Connecticut Department of Administrative Services awarded its IT professional services project to multiple vendors: CoolSoft LLC, Hallmark Totaltech Inc, iTech Solutions Inc, On-Line Systems Inc, Pali Solutions Inc, Skylightsys, and Tri-Com Consulting Group LLC.
 
An assistant general counsel with Massachusetts Information Technology Division informed Deltek that its e-discovery services project was awarded to multiple vendors: Access Data Group LLC, Merrill Communications LLC, Navigant Consulting Inc, Rational Retention LLC, and Target Litigation Consulting Inc.
 
Deltek received confirmation from a purchasing director that a contract was signed between the Virginia Community College System and Augusoft Inc for a workforce enterprise system. The value of the contract shall not exceed $7,587,625, for a base term of five years. Vendors who submitted proposals include Destiny Solutions, Campus CE Corporation, Campus Management Corporation, Jenzabar and Augusoft.
 
Market analysis
Analyst Randi Powell published the State IT Transparency Report, 2013, which focuses on spending data collected from six respective state transparency sites. When analyzed, this data highlights actual dollar amounts, sales volume and usage along vertical, fiscal year, IT category, and even vendor. This IT spending data can be extremely useful for vendors looking to key in on potential state government customers to build out their pipeline with data-supported business opportunities.
 
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 pulse: justice/public safety and homeland security March review

The most common terms appearing in justice/public safety and homeland security solicitations during March were fire alarm and alerting, camera/surveillance and consultant. The below word cloud provides a visual interpretation of key term frequency.

  • Number of Public Safety Bids: 946
  • Top three states (by number of solicitations released): California (116), Pennsylvania (65) and Texas (65)
  • Top three keywords:  fire alarm and alerting, camera/surveillance and consultant

Frequency of terms:

  • Radio: 8 (6 local and 2 state)
  • 911: 1 (1 state, 1 local)

Compared to the flurry of activity in February, March proved to be a slow month for procurement across the country. One trend that carried over, unfortunately, was that of canceled projects. Governments continue to be concerned with sequestration and the potential funding impact it may have, which was especially evident in early March. The majority of canceled projects were at the state level, which is expected to get the most immediate impact of sequestration.

New Jersey’s Department of the Treasury canceled its requirement for statewide 911 telecommunications equipment, and West Virginia canceled its video surveillance system project. Some locations are even putting aside critical systems replacements in favor of cheaper upgrade options, as Sacramento, Calif., did with its radio system project.

Very little uniformity was seen in March in terms of the types of projects procured across states and localities. Fear of increased spending cuts has likely caused purchasers to create even more rigid priority lists and focus only on the most essential items first. Sandy Springs, Ga., for example, released a solicitation for its unified radio system project management opportunity, which will cover several cities in north Fulton County. The city plans to purchase the system off of a statewide contract once the project manager makes its recommendation. Likewise, Charleston County, S.C., released a long-awaited RFP for its public safety software system after releasing two RFIs for the project beginning in 2010. The project has undergone significant transformation from the original RFIs, with entities and systems joining and being removed over the last three years, as is common in projects that take significant time to finish.

Analyst’s Take

The evolution of projects from an initial RFI will be important for vendors to remember considering RFIs were particularly abundant in March for both state and local governments. The technologies sought through these RFIs vary widely and provide opportunities for vendors across the board. Orange County, Fla., released an RFI for thermal imaging cameras, while the Florida State Courts System released one for remote court interpreting technology. New York’s Metropolitan Transportation Agency (MTA) released an RFI for a new radio system, and the state of Iowa released one for digital radios and communications devices

The prevalence of RFIs continues to be an encouraging sign that the market may pick up; however, vendors should still practice cautious optimism. As seen in Charleston County, it can take several years before funding is secured for projects mentioned in RFIs, and the scope can shift significantly. Agencies often use RFIs as a way to estimate the cost of their projects and are often forced to cut back on the physical scope or requirements upon learning the true cost.

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Will FAA Spending on NextGen to Remain Strong through 2020?

A few weeks ago the U.S. Government Accountability Office (GAO) published a report entitled Department of Transportation: Key Issues and Management Challenges, 2013. This report examined challenges the DOT is facing when it comes to “leveraging investment in surface transportation networks to meet national goals and priorities.” Being a market analyst focused on federal IT I read through the report seeking insight into department pain points and future technology needs. This was time well spent, because I hit pay dirt. Check out this doozy of a revelation on page 19 - the Federal Aviation Administration’s “NextGen modeling indicates that even if all ongoing and planned NextGen technologies are implemented, 14 airports—including some of the 35 busiest—may not be able to meet the projected increases in demand.”
Among these 14 airports could be found Newark International, LaGuardia, and Philadelphia, or, in other words, major airports serving major population centers. A look through DOT line items in the fiscal 2013 Exhibit 53 shows that spending related to the FAA’s Next Generation Air Transportation System is expected to make up $2.2 billion of the DOT’s $3.1 billion IT budget in FY 13 alone. Spending on this level is not an aberration either. Every year an overwhelming majority of the DOT’s IT dollars are dedicated to NextGen related investments.
The results of the FAA’s NextGen modeling suggest a significant amount of IT dollars will continue flowing into NextGen related procurements for at least the next decade. In today’s climate of shrinking IT budgets, this revelation is akin to discovering an unexpected oasis in a desert. The question is figuring out where these dollars will materialize. The GAO report does not provide any clues so those of us looking in from the outside are left to speculate about potential investments. In my opinion, two general possibilities present themselves at this time.
First, current contracts supporting NextGen investments could be extended and/or scope increased to provide the extra capacity.  By my count there are more than 30 currently active contracts related to NextGen components expiring between September 2014 and October 2018. Still others expire up to 2020. Competing for the follow-ons to these contracts (assuming follow-ons are planned) is a no-brainer.

Second, the FAA may choose to compete brand new contracts for NextGen requirements. The $64,000 question at this point is will the FAA leverage cloud computing for its needs? Publicly, the FAA’s progress toward the cloud has been slow. Behind the scenes, however, it is beginning to look like the agency is growing more comfortable with using cloud-based solutions. For example, Noblis has been providing cloud computing support for the FAA’s System-Wide Information Management (SWIM) program since June 2012. That order was awarded via Enterprise Communications Support Services (ECSS) contract # DTFAWA11D00051. More recently the FAA Office of Airports awarded a contract to L-3 Services (a subsidiary of L-3 Communications) for its System of Airports Reporting (SOAR) II requirement. Section 4.2.3 of the Statement of Work called specifically for the awardee to complete an assessment of a potential cloud computing solution for SOAR II. Strictly speaking, SOAR II is not a NextGen system, but because it interfaces with NextGen systems I am wondering how long it will be before a lot more Market Surveys calling for NextGen related cloud solutions start appearing on FedBizOpps.gov.

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

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