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

OMB Report Charts Growth in Discretionary Spending

The Office of Management and Budget’s (OMB) submitted its reports on discretionary spending cuts to the President and Congress just ahead of the release of the President’s Budget Request. Along with a the review of spending caps, OMB also released a preview of sequestration in the spending plans for fiscal year (FY) 2014, which looks at discretionary spending out to 2023.
 
The Final 2013 Sequestration Report provides estimates of discretionary spending limits for each category in the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA), OMB’s scoring of the enacted 2013 discretionary appropriations bill, and comparisons with estimates from the Congressional Budget Office (CBO) in its Final Sequestration Report for Fiscal Year 2013. Examining appropriations legislations enacted through April 4, 2013, OMB found that the enacted appropriations are within the discretionary spending limits for 2013 and a sequestration of discretionary budget authority is not required. (Note: The assessment by OMB is distinct from the Joint Committee sequestration.) The chart below shows the caps after various re-categorization adjustments.

BBEDCA provides caps for discretionary program spending each year through 2021. Originally, discretionary programs were separated into “security” and “non-security” categories, which are shown above in the funding levels for fiscal years 2012 and 2013.
·          The security category included budget accounts for the Departments of Defense, Homeland Security, Veterans Affairs, the National Nuclear Security Administration (NNSA), the Intelligence Community Management Account, and all accounts in the international affairs budget function.
·          The nonsecurity category covered everything else. After 2013, BBEDCA provided a single category for all discretionary spending.
 
The Budget Control Act (BCA) allowed for revision of the spending caps if the Joint Select Committee on Deficit Reduction proposed legislation to reduce the deficit by $1.2 trillion was not enacted by January 15, 2012. Since legislation was neither proposed nor enacted, the caps were revised in OMB’s Final Sequestration Report of Fiscal Year 2012, which was issued January 18, 2012.
·          The revised security (“defense”) category included only funding for discretionary programs in the national defense budget function: Department of Defense, portions of Department of Energy (including NNSA), and the Federal Bureau of Investigation.
·          The revised nonsecurity (“non-defense”) category covered all other discretionary programs.
·          The discretionary category for 2014 to 2021 was replaced by caps for the defense and non-defense categories. While the budget caps were adjusted to reflect the redefined categories, the overall discretionary spending limits were not changed.
 
The spending caps were changed again, under the American Taxpayer Relief Act of 2012 (ATRA), which reinstated the security and non-security categories for 2013 and reduced the limits by $4 billion, split evenly across the two categories. The limits for defense and non-defense spending were left in place for 2014 to 2021. However, the 2014 levels were lowered by $8 billion, split evenly across the defense and non-defense categories.

The preview report sheds light on several proposed revisions to the spending caps in the President’s Budget. The 2014  Budget includes savings in the mandatory and revenue categories, reducing the discretionary limits, restoring the 2013 sequestration amount, cancelling the 2014 mandatory sequestration order, and increasing the 2014 discretionary levels to those agreed to by Congress in ATRA. The Budget Request also proposes extending the spending caps through 2023. The reductions continue to be split between defense and nondefense categories and are set to take effect in 2017.
 
While discretionary spending at the budget proposal levels shows less growth, the levels are higher overall. According to the FY2014 Budget Proposal figures in OMB’s Sequestration Preview Report for FY 2014, the discretionary funding levels from 2013 to 2012 average $25.9 billion above those in the Final Sequestration Report for FY 2013.

The gap between the two plans for FY 2014 leaps out as a notable difference in the two series. The $97 billion increase from the Final 2013 Sequestration report is comprised of several changes. In the budget proposal, both the discretionary categories see an increase from restoring limits from ATRA. The revised security category receives an additional $54 billion, and the revised nonsecurity category receives $37 billion. While the proposed budget shows less of a drop than the Final Sequestration figures, spending rebounds a year later. If the proposed budget is accepted (though, there's ample reason to doubt that it will be), spending would approach 2013 spending levels in 2019.
 
Originally published for Federal Industry Analysis: Analysts Perspectives Blog. Stay ahead of the competition by discovering more about GovWin IQ. Follow me on twitter @FIAGovWin.

Transparency success stories: Tacoma Public Schools

The first step in determining what a government is going to want to purchase in the future is to get a good sense of what it purchased in the past. For this reason, the transparency initiatives undertaken by the Tacoma Public School District over the past few years should be encouraging for vendors.
According to Stevel Demel, contracts and warehouse manager, the impetus to make existing contract information more readily available stemmed from a desire to proactively respond to frequent information requests from the vendor community that bogged the procurement department down in paperwork.
“Prior to 2011, the Tacoma School District Purchasing Department would typically get 3 – 5 public disclosure requests for information per month,” said Demel in a written response to Deltek. “As a result, we spent hours copying and preparing documents for disclosure.”
The idea of making all contract information available online came after the district began utilizing online bidding technology for open procurements. This system already allowed the district to automatically post bid tabulations – a fine feature since one of the most frequent requests Deltek gets from members is who they are competing against for a particular procurement. In late 2011, the district was able to pay for the ability to upload its contracts database to the Web for public viewing, which Demel said has dramatically cut down on ad-hoc public disclosure requests.
Tacoma Public Schools provides contract transparency in three forms: inter-local, inter-district and current public contracts. This provides vendors with more or less visibility into all contracting activity for the district, past and present. Additionally, you can filter your searches to search for all contracts set to expire within the next year, making it handy for quick, lead-generating searches. In 20 minutes, I was able to assemble a table of active IT contracts the district currently holds:
 
“We are convinced more bidders means more competition and better prices, so ultimately our customers are benefitting from our transparency efforts as well,” said Demel.
However, the drive for transparency does have limits, and Demel is skeptical about openly discussing upcoming projects to foster competition.
“We tend to avoid [pre-RFP discussions] if doing so would limit competition or drive the specification,” he said. “We want to strike a balance between fairness and the need for discussions/information.”
Further, Demel said the best thing a vendor can do to win a contract is homework. Doing so will ultimately help them develop the best value proposal or bid. He also said the worst things a vendor can do are assume that the last bid submitted will win and failing to read the bid document carefully enough during the RFP process. Purchases below $75,000 can be limited to a list of pre-identified companies; anything over that figure should be competitively bid.

 

 

 

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.

The Road to Federal Transparency

When he took office, President Obama promised to make his administration “the most transparent administration in history.”   According to a new report issued by the Center for Effective Government, much effort has been put forth in this area, however agency implementation of policies has been inconsistent.

The March 10 report, Delivering on Open Government:  The Obama Administration’s Unfinished Legacy, examines open government progress to date in the categories of creating an environment within government that is supportive of transparency, improving public use of government information, and reducing the secrecy related to national security issues.  Using a comprehensive set of recommendations that the open government

Community issued in November 2008, titled Moving Toward a 21st Century Right-to-Know Agenda, the Center for Effective Government measured the administration’s accomplishments to date.

The Center offered kudos to the administration on developing a strong policy foundation to support its open government vision, by issuing numerous plans, executive orders and directives, except in the area of national security.  But agency implementation of the policies has been inconsistent and at times, weak.

Technology use has emerged as the strongest area of performance, with implementation of websites, social media, mobile apps and other online tools.   Federal spending information is more readily accessible and user-friendly, and agencies are now required to transition to electronic records management.  Additionally, processes and release of information via FOIA have improved.  Protections for whistleblowers were strengthened, and the administration has also taken an aggressive approach to prosecuting leaks.  

On the flip side, agency policy implementation has been in consistent.  Some agency open government plans have been vague and several agencies have failed to make basic operational information available to the public. 

Additionally, open government advocates have been disappointed with administration’s lack of progress and visibility into national security.  According to the report, the Obama administration has relied on state secrets or secret laws as heavily as the previous administration.  Good policies were established on declassifying documents, but the process is the same. 

Below are the Center for Effective Government’s recommendations to continue open government progress:

Create an environment that supports open government

  • The administration should assign a senior official in the White House to oversee the implementation of open government policies and ensure that individual has the authority to carry out the attendant responsibilities of implementation.
  • Agency heads should develop and make public implementation plans for key open government policies and assign a senior official the responsibility for overseeing the implementation of the agency plan.  Additionally, the interagency Open Government Working Group should serve as a central forum to explore ways to improve overall implementation of open government policies.
  • Congress should play a more active role in supporting open government practices by passing legislation to codify open government reforms, such as the DATA Act and reforms of FOIA and declassification. Relevant committees should improve oversight of current open government policies and implementation. Transparency needs to be established by law. 

Improve the accessibility and reliability of public information

  • Agencies should modernize their IT systems to create and manage information digitally, and the administration should establish benchmark requirements for electronic records that all agencies must achieve over the next four years.
  • The administration should launch an aggressive effort to improve agency compliance with its guidance on fulfilling FOIA requests – speeding up processing, reducing backlogs, and increasing disclosure. The Justice Department should work with agencies to avoid FOIA litigation whenever possible and argue positions that are consistent with the president’s transparency principles when in court.
  • The administration should make proactive disclosure of public information the norm and establish minimum standards for disclosure that all agencies should adhere to, such as releasing communications with Congress and posting FOIA request logs. Additionally, agencies should continue to expand the datasets posted online and release inventories of data holdings.

Reduce national security secrecy

  • The administration should establish a White House steering committee on classification reform, initiate an oversight review of agency classification guides, and pursue policy and statutory reforms to streamline the declassification process.
  • The administration should revise its state secrets policy to require independent court reviews of secret evidence and work with Congress to permanently reform the state secrets privilege through legislation. Additionally, the Department of Justice should issue a public report on Inspector General investigations into complaints of wrongdoing that were dismissed because of state secrets claims.
  • The Justice Department should renounce the use of criminal prosecution for media leaks and protect the First Amendment rights of employees.
  • The administration should order an end to secret legal opinions, memos, and directives that are used to shield controversial decisions from oversight and legal challenge.

The Center suggests, “To secure its legacy as ‘the most transparent administration in history,’ the Obama administration must encourage agencies to establish environments that embrace openness; improve the accessibility and reliability of public information; and dramatically transform its policies on national security secrecy.”

In its second term, we can expect the administration to continue to make progress in opening up government.  In this era of data, data everywhere anticipate agencies to release more and more data to the public with the expectation of citizens and businesses analyzing it, building applications around it, and using it to further the public good.  However, in the face of sequestration and budget pressure in general, don’t expect agencies to make large IT investments to digitize information or develop new systems for the sole purpose of government transparency.

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

 

 

 

 

Deltek releases free report - state & local procurement visualizations, 2011 vs. 2012

In closing our weeklong blog series recognizing Sunshine Week, which highlights government transparency efforts, Deltek is offering an inside look into its GovWin IQ database with a free transparency report. The data presents nationwide state and local government procurement numbers to identify regional, offering/commodity, and government-level trends for 2012, in addition to comparing 2011 statistics for year-to-year visualizations. The report is culled from more than 300,000 bid opportunities captured in the GovWin IQ database from January 2011 through December 2012.
 
In analyzing the wealth of solicitations released over a two-year period, Deltek analysts examined several key procurement factors, including the total number of solicitations released in the following categories:
  • Across all states, state agencies, cities and counties
  • Per quarter
  • Per region
  • Per government type (state department, city, county, public university, independent school district, special district, tribal government, and other)
  • Per vertical market, including general government, health care, education, justice and public safety, and more
  • Per service type (architecture, engineering, construction, professional services, IT, operations and maintenance, etc.)
In addition, the free report features a breakdown of the average number of days a solicitation is open from release date to proposal due date. This data is captured per state, region, government type, vertical market, and service type.
 
In comparing the total number of bid opportunities released across all states, 2012 saw a 12.3 percent decrease in solicitation releases from 2011. Fiscal year 2012 was the first year post expiration of the American Recovery and Reinvestment Act, and many states needed to further reduce spending coming out of the recession. The good news is that 2012 should be the final year of budget-belt tightening, and states are expected to rebound and expand procurement activity in 2013 and beyond. The shading in the map below details the total number of solicitations released nationwide in 2012. Lighter shades indicate fewer solicitations; darker shades indicate greater numbers of solicitations released.
 
Texas tops the chart with the most solicitations released in 2012 when combining all opportunities at the state and local level. California is a close second, followed by New York. However, when only capturing projects at the state level, New York trades its bronze for gold with the most opportunities. California retains its silver, and Texas slips to third. Here is a sneak peek of the top five states for both charts; the full report contains a top-25 list.
 
When we segment procurement data by government unit, state departments represent a majority of solicitation releases in 2012 (30.8 percent), with cities at 28.7 percent, and counties encompassing 16.8 percent of releases. This is quite consistent with 2011 figures, with state agency bid opportunities at 30.5 percent, cities at 29 percent, and counties at 16.7 percent. It is important to note that although state-level solicitations appear to be most common, when combining cities and counties, local government procurement is dominant.
 
Drilling our data down to the solicitations-per-quarter level, the first half of the year proves to offer the greatest number of contracting opportunities. As Q1 2013 comes to a close, vendors should be prepared for an onslaught of procurement activity in Q2 before the end of the fiscal year. The below chart details the total number of solicitations released each quarter in 2011 and 2012 for all state and local agencies combined.
 
 
At the regional level, the South dominates procurement activity in both 2011 (35 percent) and 2012 (34.2 percent). Solicitations coming out of the East encompass slightly more than 24 percent during the two-year period, with the West averaging 22 percent of solicitations, and the Midwest at approximately 18 percent.
 
Additional analysis shows an interesting trend for the number of days a solicitation is typically open before all vendor proposals are due. In 2012, vendors were given an average of 19 to 21 days to submit a bid. However, state-level projects typically allowed more time for vendors to respond, with an average open period of 26.3 days. The report further breaks down these averages by state, vertical market, service type, and per quarter for 2011 and 2012. Note that these averages do not account for extended proposal due dates adjusted via amendments.
 
 
We’ve only scratched the surface of GovWin IQ opportunities captured over the years. The state and local 2011 vs. 2012 bid opportunity report features more than 40 charts of key procurement trends to help vendors build their business pipeline. To access the free, detailed visual report offering a deeper dive into 2011 vs. 2012 procurement data, please go here.
 
Non-subscribers can read more about specific projects with a GovWin IQ free trial

 

Sunshine Week: Maryland continues transparent CATS IT contract program

Day four of Deltek’s recognition of Sunshine Week continues promoting transparency in the name of efficient, effective and ethical government. The state of Maryland has long prioritized efficiency, transparency, and IT investment for the greater good of its constituency, and in doing so, has fostered an engaged citizenry and vendor community. The Maryland Consulting and Technical Services (CATS) contracts embody those priorities and are now entering their third generation as a streamlined procurement strategy for supporting information technology projects.  

The Maryland Department of Information Technology established the CATS program to allow state agencies to quickly and efficiently obtain IT consulting and technical services from a pre-qualified pool of vendors with services in 17 functional areas ranging from Web and Internet services to information system security and software engineering. 

The CATS methodology is often referred to as two-step procurement, with the first step qualifying a group of suppliers under one or more set of requirements, or functional areas. The second step allows using agencies to solicit responses from the aforementioned qualified vendors for a business need defined in a request for resumes (RFR) or a task order request for proposals (TORFP), depending on job’s anticipated value. 

Most two-step statewide term contracts close their curtains after the first, or qualification phase. This is often in contrast to other contracts in those same states whose award totals and contract documents are available. Since the first generation CATS contract was initiated in 2005, Maryland has not only made labor rates quoted in the qualification phase available, but also made the status and results of the second, or TORFP phase, transparent via the CATS website. Information provided includes the requesting agency, TORFP document, number of proposals submitted, awarded vendor, award amount, and in the case of CATS II, the MBE fulfillment. The Maryland Department of Information Technology also maintains a dashboard detailing CATS contract activity:

 

With a little bit of extra lifting with CATS data, we can see that 15 vendors have grossed more than $10 million in TORFP awards since 2005.

 

 

Of course, these are just a fraction of the 435 vendors qualified under CATS II. Additionally, there are more than 150,000 labor rates submitted under CATS II than can be viewed individually by vendors on the CATS II site or queried, sorted and downloaded by GovWin IQ members at the S&L Term Contract resource.

Sevice offerings under CATS II are classified under 17 functional areas and so by reviewing TORFP awards we can see what type of assistance state agencies are most often seeking.

 

After two successful generations of contracts with the original CATS and then CATS II, the Maryland Department of Information Technology decided to forge ahead with CATS Plus, and on July 2, 2012, released an RFP tracked under GovWin IQ Opportunity ID 51373Proposals were accepted on or before August 8, 2012, and awards are expected in April 2013. The department expects the third generation contract vehicle to engage more than 300 vendors and to exceed $400 million in spending volume in its five-year contract term, taking the total volume of the CATS contracts to nearly $1 billion.

Analyst’s Take 

Maryland’s CATS contracts provide a streamlined opportunity for IT professional services vendors to do business with the state directly or through partner opportunities. The transparency of the program also allows for insight into competitors’ pricing and successful bids. 

Look for more states to use statewide term contracts similar to CATS in the future and to additionally offer pricing and spending data around those contracts. Rest assured that GovWin IQ will be looking for those opportunities and including pricing in our State and Local Term Contract resource and the spending in our analysis activities.

Deltek will publish a full-length report, “State Government Transparency Report 2013,” providing detailed itemized IT expenditures for the state of Maryland and many other states in the coming weeks.

GovWin IQ subscribers can learn more about these statewide contracts in the provided links. Non-subscribers can gain access with a GovWin IQ free trial.

Sunshine Week: Virginia Transparency IT Spending for FY 11 and FY 12

Welcome to day three of Deltek’s Sunshine Week transparency blog series. In the lead up to our upcoming transparency report on IT state spending habits, to be published later this month, the general government services state and local team is providing a sneak preview of a handful of states included in the report. Today we will look at the commonwealth of Virginia, which spent more than $348 million on information technology systems, equipment and services in fiscal year 2012.
 

  

 

Contractual services make the lion’s share of the commonwealth’s IT spending totals, with $286 million dedicated in FY 2011 and $281 million in FY 2012. This fact bodes well for the vendor community, though it should be noted that a large chunk of Virginia’s contract spending for common IT needs is likely purchased off of existing term contracts as opposed to one-off technology procurements. Of that contract portion, information management program design and development services ($219.7 million), telecommunications services ($43.9 million) and computer software maintenance ($13 million) are the three largest expenditure categories, and together represent nearly 80 percent of total state IT spending in FY 2012.
 

 

 

 

 

 

 

From just a cursory look at the data, two things immediately jump out: IT spending overall remains remarkably consistent between FY 2011 and 2012, and the amount spent on specific technologies over this two-year stretch are all over the map. While the state reports only $14,823 of spending on vendor-related computer operating services in FY 2011, that figure jumps to $227,989 in FY 2012 – a more than 15-fold increase. Computer operating services performed by the state’s consolidated technology agency (VITA) is a mirror image, with more than $1 million of contract spending support in FY 2011 compared to just $4,095 in FY 2012.  
In isolation, this would make sense and could simply reflect a change in strategy for managing the state’s technology infrastructure. However, this trend shows up over and over again for other spending categories, contractual or otherwise. Technology infrastructure contract spending saw $213,495 in FY 2011 compared to $1.29 million in FY 2012. The state spent $53,973 on computer software rentals in FY 2011 and $313,309 in FY 2012. Computer software purchases rang up $5.7 million in FY 2011 and nearly doubled ($10.8 million) one year later.
Analyst’s Take 
From this (admittedly limited) sample, it is possible to make several inferences regarding Virginia’s IT spending strategies. First, that Virginia IT officials prefer to practice binge spending on specific technologies within a given budget year, making upgrades or legacy replacements all at once instead of  staggering the purchases according to schedule or individual need. Second, that if you deal with a specific type of IT product (say software rentals or microcomputers) and you want to do business with the commonwealth, you are likely to only get one chance to respond to RFPs or sell your wares every three to four years during the technology upgrade cycle.  
Finally, this makes future Virginia spending habits easier to predict, especially since the state updates its IT spend for FY 13 on a quarterly basis. Taking a look at the latest quarterly spending figures and comparing them to last year’s totals can help vendors determine which technologies have been given the purchasing green light by state officials for 2013. For instance, in the first two quarters of FY 2013, the state has already spent significantly more on network servers and network components than it did for all of FY 2012.  
The following opportunities are currently being tracked in Deltek’s system and have anticipated solicitation releases in the near future:
Deltek will publish a full-length report, “State Government Transparency Report 2013,” providing detailed itemized IT expenditures for the state of Virginia and many other states in the coming weeks. 
GovWin IQ subscribers can learn more about these statewide contracts in the provided links. Non-subscribers can gain access with a GovWin IQ free trial

Sunshine Week: A look into Washington state’s pocketbook

Continuing Deltek’s recognition of Sunshine Week, when government transparency is celebrated, we’re shining a light on Washington state. The state offers a look at its “checkbook” for more than 80 categories on its main transparency website. These breakdowns detail how much was spent, in which agency, which month, and who the recipient was.
 
The five IT-related categories from FY 2012 examined for this data analysis were: software, archives and record management services, financial services, computer and integration services, data processing services, and communications.  
 
 
Of these categories, Washington devoted the most money to communications efforts – more than $137 million. The runner-up in spending was data processing services at $85 million. These two technologies combined consumed more than half of the IT budget for the year.
 
 
Looking at Washington state contracts in 2012, Washington State Consolidated Tech Services was awarded the most — 931 out of more than 15,000. The top-earning vendor was tied between AT&T and DES IT & Brokering Leasing Services – each signing 815 contracts with the state in 2012.  Further vendors not far behind include Verizon, Qwest, Centurylink, and Comcast, all of which signed between 590 and 720 contracts, respectively. It’s important to note that the commercial vendors listed above have a strong focus on telecommunications.
 
Analyst’s Take
 
While Washington state spent a fair amount of money on technology initiatives last year, it was only a fraction of its total spending. Vendors should note that the state is being very careful with how it distributes its funds. As most money was put into communications and data processing services last year, vendors should be on the lookout for upgrades and maintenance opportunities in these areas.
 
Additionally, there were very few cases of vendors only winning one contract over the course of 2012; therefore, vendors who have done business with Washington state in the past should consider themselves at an advantage and be aggressive in pursuing more contracts this year.
 
The following opportunities are currently being tracked in Deltek’s system and have anticipated solicitation releases in the near future.
Deltek will publish a full-length report, “State Government Transparency Report 2013,” providing detailed itemized IT expenditures for the state of Washington and many other states in the coming weeks.
 
GovWin IQ subscribers can learn more about these statewide contracts in the provided links. Non-subscribers can gain access with a GovWin IQ free trial

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