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New CIO at the Helm of the FDCCI Task Force

Shortly after becoming the CIO of the Department of Justice, Joe Klimavicz also took the helm as chair of the Federal Data Center Consolidation Initiative Task Force.  In this role, he aims to focus on the promotion and adoption of private sector best practices that are applicable to government.

Klimavicz aims to push shared services and cloud computing as proven means for consolidation and optimization in the public sector.  “Whenever possible, interagency sharing of data centers and their assets increases efficiency across the federal government,” Klimavicz stated in a recent blog post on www.cio.gov

The task force will continue to focus on hardware and software utilization.  Sharing these assets across an agency, department or the federal government can allow the hosting organization to charge for usage, while eliminating IT duplication and creating standardization across the agency.

Klimavicz is also a supporter of cloud computing.  As former CIO at NOAA, he saw first-hand the benefits of consolidating 19 different e-mail systems onto a single cloud platform.  The move freed up floor space across NOAA data centers. 

The Task Force will also work to establish benchmarks and metrics to measure progress toward core data center optimization. 

I’m curious to see if Klimavicz will bring more visibility to data center consolidation and optimization progress.   Since becoming part of the PortfolioStat process in 2013, few statistics are available to the public regarding data center optimization progress.   Counts of core vs. non-core data centers by agency have not been published, nor have the final criteria for agencies to use to select their core data centers. 

Agencies continue to say that they are pursuing data center optimization and consolidation.  However without data to support efforts, it’s difficult for the public to assess progress or accomplishments.

 

Governors focusing on educational performance, corrections, and mental health

2014 finds the governors as committed as ever to their growth agendas launched over the previous two year. Continued budget surpluses open the door to state innovation and experimentation.

Each year Deltek compiles the forward-looking agenda items from each of the governors' state of the state addresses.  This year found some interesting shifts in the areas of emphasis.  States have been out of recession for more than two years now, and governors have been ambitious with their agendas.

Deltek classifies each of the governors' agenda items by vertical (as shown in Figure 1 below).  We also track the popularity of each vertical as compared to the recent trend.  For 2014, Education, Justice/Public Safety, and Social Services are the stand-out verticals.

Figure 1. 2014 Agenda Item Popularity vs. 2012-2014 Average, by Deltek Vertical

Source: Deltek

Deltek also subclassifies each agenda item below the vertical level (not shown above).  In the Education vertical, the governors were specifically interested in improved performance for Pre-K through 12 public education.  They are also keen to blend high school education into the two- and four-year higher educations systems to create a seamless pipeline of educational attainment for workforce development purposes.  Containment of higher education tuition costs is also a significant interest and a key part of performance measurement for these institutions.

Corrections continues to dominate the Justice/Public Safety vertical, where governors want to contain costs by moving non-violent offenders to community supervision.  They also want to develop better processes for reintroducing ex-cons back into society and the workforce.  This year marks the first time government have begun to look at the economic impacts of incarceration as well as the fiscal impacts.

Governor interest in Social Services increased for the first time since the recession.  With little federal direction in this area, the vertical has been adrift.  However, this year found governors interested in addressing public mental health concerns, driven in part by school shootings, veterans, and drug addiction.  Drug addiction and treatment, given recent upswings in crystal meth and heroine usage, has emerged a top level priority.

Learn more at our FREE upcoming webinar (May 8th).

More detailed information for all of the verticals covered in Deltek's recent report "State of the State, 2014." The report is available for immediate download by Deltek State & Local Industry Analysis subscribers.  It can be purchased online by those who are not subscribers.  The report comes with a spreadsheet that includes all of the governors agenda items categorized for easy sorting and reference by market strategists.

 

State and Local Regional Top Opportunities for FY 2014

Deltek’s recently published State and Local Regional Top Opportunities for FY 2014 Report shines light on state and local contracting from a regional standpoint, spanning all verticals (health care, social services, justice and public safety, homeland security, transportation and general government). Using the GovWinIQ opportunities database, the free report analyzes the quantity and value of projects in each region across all vertical areas, and also takes a closer look at how the verticals are represented in each of the four regions. The top opportunities highlighted in the report were selected for their representation of major technologies within the six vertical areas and their illustration of state and local contracting as a whole. 

GovWinIQ Active Opportunities and Leads

Key takeaways from our regional analysis of state and local contracting opportunities include:

  • The South has the highest number of projects per region (662) as well as the highest total value of projects per region ($15.2 billion), mainly due to the inclusion of Texas, Virginia and Florida. Southern states, especially Florida, often utilize regional projects and initiatives and later implement them statewide.
  • The Midwest has the highest average value per project ($23.3 million), but the lowest number of total projects (423). Midwest states are innovators for cooperative contracts (WSCA) and many generic term contracts.
  • The Northeast has an interim number of projects (514) as well as interim average value per project ($22.2 million). Northeast states are often early adopters and innovators for federally mandated initiatives.

From a vertical and regional standpoint, key takeaways include:

Justice and Public Safety (JPS) and Homeland Security (HS) Verticals

  • The Northeast has the highest concentration of JPS contracting opportunities
  • In the Midwest, most JPS initiatives occur at the local level (Ohio, Ill., Wis.)
  • FirstNet will be a huge driver for state broadband initiatives nationwide

Health Care (HC) and Social Services (SS) Verticals

  • Eighty-three percent of active HC/SS opportunities are for statewide systems
  • Consortiums are increasingly popular nationwide for social services IT systems, including WIC MIS, SNAP/TANF EBT, and UI systems
  • Most local-level HC/SS opportunities are for electronic health/medical records or vital records

General Government (GenGov) Vertical

  • The South has the most active opportunities in the GenGov vertical (35.4 percent), followed by the West (24.6 percent), Northeast (21.6 percent), and Midwest (18.3 percent)
  • Data center consolidation/modernization, disaster recovery services, server virtualization, and cloud services are expected to be popular technologies/services procured over the next few years
  • California, Illinois and Texas have the most active GenGov opportunities, while active GenGov opportunities out of Pennsylvania, Virginia and California have the highest total value

Deltek is hosting a free webinar on the State and Local Regional Top Opportunities for FY 2014 Report on November 7, 2013, at 2 p.m. EST. The webinar will delve into all three state and local verticals, providing insight into some specific projects and overall trends for fiscal year 2014. To register for the webinar, please click here!

 

 

Saint Charles, Mo., presents plentiful opportunities for justice and public safety IT vendors

In Saint Charles, Missouri’s fiscal year (FY) 2013-2018 capital improvement plan (CIP), City Mayor Sally Faith establishes: “With limited revenue available, we must really focus on establishing what our priorities will be for the community going forward.”

While this may be a nicer way of saying “do more with less,” the city’s CIP prioritizes funding for 57 IT-related projects with an estimated cost of $10,000 or more. Deltek has captured these projects as Lead Alerts in the GovWin IQ database. Read more about Deltek’s new Lead Alerts below.

With nearly $8.6 million allocated for capital projects for the city’s police and fire departments, nearly half of the 57 projects captured by Deltek will appeal to vendors in the justice/public safety (JPS) marketplace. 

Sample of police and fire department capital projects in Saint Charles, Mo.

While JPS projects take the cake, general government capital projects are plentiful. Top-dollar projects that span the six-year CIP include the provision of IT contract services ($1.1 million), routine city-wide computer replacements ($1.4 million) and software upgrades ($365,000). In total, the city’s CIP allocates nearly $3.65 million for IT projects.

Saint Charles is also investing to improve its geographic information system (GIS). This will be accomplished through updates to street and utility GIS data with street segments, pavement conditions, utilities, streetlights and other information, for which $80,000 is allocated. Similarly, $140,000 is assigned to provide an inventory of all sidewalks to comply with the Americans with Disabilities Act. An additional $200,000 is provided for orthorectification of the city’s aerial photography, which is part of the GIS. 

The CIP also allocates more than $100 million for capital projects over the six-year CIP term, demonstrating that there is no shortage of opportunities awaiting the hands of government contractors. While many of these capital project values do not reach six figures, winning just one small-dollar project may be the stepping stone to a strong, lucrative relationship between a single locality and a single vendor.

Deltek’s GovWin IQ Lead Alerts

Deltek’s new GovWin IQ State and Local Lead Alerts give government contractors an edge when it comes to identifying new pre-RFP opportunities. Lead Alerts include the necessary information government contractors can use to make quicker decisions about pursuing an opportunity and act as the first alert that a state or local government has a need for a new product or service. 

Lead Alerts highlight opportunities not captured through GovWin IQ’s traditional Tracked Opportunities, therefore expanding coverage and highlighting smaller-dollar projects and many more opportunities at the city, county, independent school district (ISD) and public university level. Read more about Lead Alerts here.

Deltek Pulse: general government services and education October review

As everyone gets back into the routine that fall brings, the uptick of procurement opportunities in October shows state and local governments are getting back to business as well. For most states and localities, budget season is around the corner, and many agencies have already submitted their budget requests, which will include funds for everything from routine IT software and services to major capital IT projects.
 
A total of 1,317 IT-related general government services solicitations were identified in October, and we’ve highlighted the top 10 most common procurement categories below:
 
  • Software  – 195 solicitations
  • Telecom/IT Maintenance & Support Services – 204 solicitations
  • LAN/WAN Equipment – 95 solicitations
  • Telecom/IT Implementation Services – 73 solicitations
  • IT Consulting Services – 49 solicitations
  • Desktop/Tablet/Laptop Computers – 40 solicitations
  • ERP/Human Resources/Financial Systems – 35 solicitations
  • BI/Analytics Solutions – 6 solicitations
  • VOIP/ACD/IVR Telecom Systems – 14 solicitations
  • Content/Document Management Systems – 13 solicitations
 
Here is a look at current tracked general government IT opportunities:
 
The New York Office of General Services released a request for information (RFI) on October 4, seeking IT task order support services. The state is looking to transform its IT equipment repair process from a decentralized, ad-hoc model, to a structured, centralized and proactive system. 
 
The city of Baton Rouge, La., released an RFI on October 29, seeking Internet bidding and reverse auction services. It is anticipated that information received in response to this RFI may be used to develop a future procurement.
 
The Texas Department of Information Resources (DIR) released a request for offers (RFO) on October 30, seeking cloud services. The cloud contracts awarded from this RFO will allow vendors to respond to statements of work (SOWs) from DIR customers (e.g. state agencies, localities, state universities, K-12 school districts) to perform services in the following categories: cloud infrastructure as a service (IaaS), cloud platform as a service (PaaS), cloud broker, and cloud assessment.
 
The New Jersey Office of Management and Budget is looking to replace its 30-year-old planning and budgeting system with a new budget preparation and monitoring system. The new budget system will integrate with the new comprehensive enhanced decision and information system of N.J. (EDISON), composed of ancillary and external decision-support systems throughout the state. The RFI responses for the replacement budget system were due by October 29.
 
Here is a look at current tracked education IT opportunities:
 
The North Carolina Department of Public Instruction (NC DPI) closed the bid for the N.C. Education Cloud project’s identity and access management system on October 5. NC DPI confirmed the following nine vendors submitted proposals: Deloitte & Touche, LLP; Verizon Business Network Services; IBM Corp.; Vexcel Corp.; Onwire Consulting Group, LLC; TechDemocracy, LLC; Identity Automation, LP; Tremolo Security, Inc.; and Mycroft Inc. A short list of finalists will be determined in early November 2012.
 
The Pennsylvania Department of Education released a procurement notice listing a need for help desk and LAN support servicesat local education agencies throughout the commonwealth. This is interesting in that only four other state agencies have put out or planned similar bids for help desk services in the past year: the Department of Labor and Industry, the Department of Environmental Protection, the Department of Conservation and Natural Resources, and the Pennsylvania State Police.
 
Notable awards
 
Bay City, Mich., approved a contract for an advanced meter infrastructure system to multiple vendors on October 1: Elster (AMI provider), ElectSolve (MDM supplier), Badger Meters (Meters) and Katama Technologies Inc (project management services). The total budget for this project is $6.7 million.
 
The Los Angeles Community College District, the largest community college system in the nation, confirmed a partial award to Oracle for a student information system (SIS) valued at $12 million. The LA Community College District released an intent to award notice, naming Ciber, Inc as the selected vendor to perform implementation services for the new SIS, though the contract has yet to be finalized.
 
The city of Columbus, Ohio, has awarded a contract for applicant tracking and testing management software to NeoGov Inc. The contract was awarded for $121,000 over four years. After releasing an RFI in January 2011, the city opted to postpone the project for a year. Ultimately, the city decided to make an award based off the submitted RFI responses.
 
Trends in state and local IT procurement
 
California recently passed a bill to move IT procurement from the Department of General Services to the California Technology Agency. California will join at least seven other states that are planning or have recently undergone IT transformations/reorganizations that have affected oversight of IT procurements: Tennessee, Oklahoma, Connecticut, Hawaii, Arizona, New York, and North Carolina.
 
October’s market analysis
 
The State & Local Education Data Systems, 2012 report by Randi Powell was released on October 4. The report focuses on how the near completion of most statewide K-12 longitudinal data systems should not be ignored by vendors looking for long- and short-term opportunities related to student-teacher performance tracking. These data systems will initiate new tracking and data sharing both vertically (federal-state-local) and horizontally (interstate, interdistrict, and intradistrict).
 
The State of City & County IT, 2012 report by Chris Dixon was released on October 18. In this report, Deltek, in partnership with the Public Technology Institute (PTI), conducted a survey of city and county CIOs and IT directors. The survey covered organizational and fiscal issues, IT investment priorities in the coming year, and buyer perceptions of IT vendors. The 84 cities and counties that responded to the survey represent a significant and wide-ranging market sample, and an estimated $570 million in annual IT spending.
 
A free report on theTop State and Local Opportunities for FY 2013,by Derek Johnson, was released on October 28. The report details the year’s premier state and local-level general government opportunities. At the top of the list, $600 million in estimated contract dollars, with an additional $10 billion award to be shared by multiple, qualified firms. Learn how your company can make an informed bid for FY 2013 dollars. Included in the report are insights on estimated contract values, key points of contact, background information on projects, and related procurement timeframes.
 
What’s on tap for November?
 
Deltek will recognize American Education Week, November 11-17, with a week-long blog series highlighting our top education IT procurement opportunities, as well as education IT market reports and analysis.
 
Stay connected to Deltek’s General Government Services team via Twitter @GovWin_GenGov for real-time updates on trends, analysis and opportunities in the state and local IT market.

 

Social media business opportunity growth in state and local government: The story in stats

Deltek recently published a report on social media use in state and local government (subscribers click here for free report download; non subscribers download for a fee). In that report, Deltek identifies several trends related to social media use in state and local government:
·         Social media and mobile application use are growing in society.
·         State and local government had significant growth in social media use from 2010 to present (Mossberger and Wu, 2012)
·         80 percent of State and local government employees see their agencies increasing social media use in the next 12-18 months (Market Connections, 2011)
Most notably, social media-related business opportunities have been increasing since 2008.

·         2012 has a robust number of social media business opportunities
·         Initially, it looks like a drop off of 28.6 percent from 2011 to 2012.
·         However, we only half way through 2012.
Since we are only half way through 2012, analyzing opportunities through the first 6 months of each year is a better comparison and illustrates a growth trend. For example, there is a 46 percent growth in opportunities in 2012, compared to the same point in 2011.

Comparing current opportunities (blue line) to January through June opportunities (orange line) demonstrates the continued growth of social media opportunities in 2012. Using the existing data to project future growth (green line) demonstrates the future projected strength of the market.

·         Through the first half of 2012, more social media opportunities than first half of 2008, 2009, 2010, or 2011.
·         2012 is projected to have the most state and local government social media opportunities than any previous year.
 
Analyst’s Take
 
·         Social media related business opportunities are projected to continue upward growth for the next several years prior to market saturation.
·         Even after initial market saturation with current social media applications and technologies, implementation will open the door to innovation of new technologies and applications that will make social media functionality an essential component of most IT solutions.
·          The paradigm shift presented by social media use in state and local government (see the Deltek report, here), will drive further innovation and social media integration.
·         The combination of technology and government innovation will drive social media functionality in IT systems moving well beyond the initial market saturation and well into the foreseeable future.
 
Recommendations 
·         Get in on the ground floor now with developing social media technologies, functionality, and integration that government can use.
·         Collaborate and partner with government to develop social media solutions.
·         Integrate social media functionality into your current solutions.
·         Integrate social media functionality into existing government enterprise systems.
·         Develop mobile applications with social media features as an integrated part of current solutions.
·         Look to integrate social media functionality.
·         Make plans to grow your state and local government-related business.
 
Subscribers have access to the full article, here, including more detailed graphs and figures.
If you haven’t done so already, download the Deltek report on social media in state and local government, here
Read the previous blog on social media, here.
Read the previous blog on crowdsourcing data,here.
Follow me on Twitter @GovWinCCotner.

 

 

 

Deltek releases state and local government social media report

Social media is one of the hottest topics in both government and the government contracting community today. Since 2008, overall social media (SM) use and state and local adoption rates have been astronomical. SM is also presenting a new paradigm for service delivery and innovation in state and local government. SM platforms (including mobile applications) can be used for direct government/citizen engagements that are profoundly changing society.
Beyond the influence of direct engagement, these SM platforms and related mobile devices can aggregate crowdsourced data to inform decisions. In turn, these informed decisions can be used to innovate and improve government by delivering more efficient services (either directly or by augmentation). SM interactions (including data gathered to inform decisions and services) can lead to greater innovation, improved government accountability, and broader civic engagement.
For the government contractor community, this change presents a myriad of business opportunities:
·         Working collaboratively with state and local government now to build short and long-term policy and related solutions; these solutions will be the foundation for future implementations.
·         Creating new solutions that were previously unimagined.
·         Adding value to existing vendor solutions through IT integration.
·         Adding social media integration to existing state and local government IT systems, including at the enterprise level.
·         Aggregating the big data of social media for government innovation.
·         Creating purpose-built mobile solutions that integrate social media to improve government service delivery
Deltek has researched and tracked these state and local government opportunities with SM components since 2008, when they first appeared in solicitations. As expected, while initially slow, the number of opportunities has grown and remains relatively steady (Figure 1, below). Opportunities are also spread across each state and local government type. While the majority of opportunities reside with the states, some of the more cutting edge and interesting opportunities are in the localities. Looking forward, opportunities are projected to grow along with state and local government’s increased use and integration of SM technology.
Figure 1: Deltek Opportunity Analysis – Social Media


For more insight on the implications of social media on state and local business opportunities, read Deltek’s recently released report, here.
Subscribers also have access to this article in Analyst's Perspectives, here.

Read our recent blog on crowdsourcing, here.

Read our recent blog on social media, here.

Follow me on Twitter, here.

Good news: Updated state budget projections and business opportunities

The news for state government finance during the recession and slow recovery has been challenged, at best. States reported widespread problems meeting their budgetary obligations during the recession and enacted a variety of measures to remain solvent in the face of declining revenues. The bulk of the most challenging cuts came in 2011 and 2012, as states adjusted to winding down stimulus dollars. Figure 1 (below) illustrates the budget measures states took in efforts to balance their budgets.
 
Figure 1: State Strategies for Budget Balancing FY 2011-2012

The balancing strategies resulted in 2012 being one of the
toughest fiscal years on record, with combined all funds budgets falling $42.1 billion (-2.4 percent) from 2011. It was the first all funds drop in state budgets since 1987 and dramatically juxtaposed to the $87.9 billion (+5.6 percent) overall state budget gains from FY 2010 to 2011. Putting the record 2012 state budget losses in prespective, the data includes the seminal 1987, 2000, and 2001 stock market losses and resulting economic declines (with 2012 still being the only overall loss).

Even with all of the recent negative press, there is excellent news for state government contractors in 2013 and beyond.
Deltek’s annual state budget analysis shows that with state revenues on the rise, all funds budgets are set to rebound in 2013, increasing $20 billion (+1.21 percent) to $1.67 trillion overall.
Continuing the positive trend, Deltek’s updated state budget projections show great news for continued upward growth in state budgets moving beyond 2013. What we found is graphed below (see Figure 2).We call it the “Good-News Graph.”
Figure 2: State All Funds Budget 10-Year Projections


Analyzing Figure 2, from FY 1987 through FY 2010, the data is remarkably consistent with an average 6.24 percent compound annual growth rate (CAGR). However, as the recession took hold, growth rates slowed to 3.56 in 2011 and fell into the red for 2012. The budgetary growth from 2008-2011 in the face of recession and slow recovery was due to many factors, including: federal stimulus funding, increased health care costs (both for state workers and through the increased Medicaid rolls as the result of the recession), increased retirement/pension costs for state workers, and unemployment compensation.
Subscribers have access to the rest of the article, including additional projections about the state government market, here.

Florida's New COO Hits Reset Button, Seeks to Repair State's Reputation for IT Turmoil

Deltek was pleased to join TechAmerica for the 2012 edition of “The CIO Speaks: Tech Days in Tallahassee” event. In a format similar to other half-day Deltek state and local events, the morning featured a keynote address by the State of Florida’s new Chief Operating Officer (COO), David Wilkins. He also serves as the Secretary of the Department of Children and Families (DCF). His speech was preceded by a two-hour panel with several agency CIOs who shared their visions with the statewide vendor community.
Wilkins opened his remarks with some elaboration on how DCF intends to overhaul its child protection investigative process with significant use of IT to improve accountability. He is also looking to modernize the case management system, which is too burdensome in its requirements for manual data entry at all points. In regard to mental health services, he’s seeking to implement more management information to improve overall performance.
 
Gov. Rick Scott asked Wilkins to take his experience from DCF and apply it statewide as the state’s first COO.  He is currently touring the agencies to determine what sorts of enterprise initiatives should be undertaken. A key question will be where to house certain initiatives and how to cost share and guarantee return on investment. Human resources systems and strategic sourcing are likely to be two of the highest priority initiatives. Real estate management is also a top target for streamlining.
 
As far as specific IT initiatives go, he is looking at desktop consolidation. CAD consolidation and fleet management are tier two targets for savings.  They are working on the math to prove the savings in each of these cases and invite any assistance on that. Many of the existing systems can’t provide the data they need to get at basic costs metrics for existing processes.
For the complete analyst perspective, go here.

 

Shining a light on statewide child welfare programs

April doesn’t just bring showers, it also brings the observance child abuse prevention. The U.S. Department of Health and Human Services’ (HHS) Administration for Children and Families (ACF) Children’s Bureau, Office of Child Abuse and Neglect (OCAN), deemed April National Child Abuse Prevention Month in 1983. As such, Deltek’s Health Care and Social Services team saw this as the perfect opportunity to highlight child welfare reform initiatives occurring nationwide. Stay tuned for related blogs throughout the month!

To kick things off, we take a look at two states that have received their fair share of publicity in recent months: Oklahoma and Nebraska. Last week, Oklahoma released its improvement plan for the state’s child welfare program, the Pinnacle Plan. The five-year plan, which will launch in fiscal year (FY) 2013, addresses 15 distinct performance areas, or “Pinnacle Points,” that are in critical need of improvement. These points include reducing staff turnover, increasing permanency outcomes for all children in the state’s care, increasing accountability of all involved parties, and engaging parties outside of the Oklahoma Department of Human Services (OKDHS).   Information technology upgrades to assist in addressing these points include the use of smartphones and/or tablets by state child welfare staff and a statewide matching solution for displaced children.

Nebraska legislators are now dealing with the aftermath of the unsuccessful and catastrophic attempt to privatize its child welfare program. While only one of the five original contracts remains active, the state is spending far more than its allocated budget to operate the program compared to its prior cost to privatize. According to an analysis performed by the Legislative Fiscal Office, the state spent an extra $542,929 in FY 2008-2009 to operate the program. This number jumped significantly to an alarming $22,472,951 in FY 2009-2010, and even higher in FY 2010-2011 to $27,244,348. Now that the program is back in the hands of the state (for the most part), it plans to hire more case workers and put more funding into foster care and other child welfare services that will directly benefit children and ease the workload of overrun caseworkers.

In this month’s future blogs, Deltek will take a closer look at the controversies surrounding Nebraska and Oklahoma’s child welfare programs, as well as highlight states that successfully transformed their child welfare programs to keep in line with advancing technologies and integrating human services programs and technology systems. Subscribers can check out the Child Welfare Vertical Profile for a closer look at child welfare programs on a state-by-state basis. Make sure to follow us on Twitter @GovWin_HHS  LinkedIn to be the first to get updates on the latest from the Deltek Health Care and Social Services team!

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