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GovWin Recon - January 31, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Health IT:

Big Data / Analytics:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

Budget / Sequestration:

Mergers and Acquisitions:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

GovWin Recon - January 30, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Federal IT:

Agency News:

Vendor News:

Cloud Computing / Data Center Consolidation / Virtualization:

Big Data / Analytics:

Defense / C4ISR / Embedded Technology:

Budget / Sequestration:

Legislation:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

Sequestration Threatens to Slow Army Network Modernization Efforts

The Government Accountability Office (GAO) released a report recently on Army network modernization entitled Army Networks: Size and Scope of Modernization Investment Merit Increased Oversight. According to the report, the GAO conducted the study because “for nearly 20 years” the Army has had limited success with its information network efforts and, more importantly, because in its fiscal 2013 budget request the Army asked for $3.8 billion to fund network-enabled mission command efforts. This funding breaks down into roughly $1 billion for research and development (RDT&E) and $2.8 billion for procurement (See Table 1).
 
Table 1: Network-Enabled Mission Command Requested Funding
Notice that these investments cover only those programs contained within the Mission Command portfolio. They do not necessarily include funding required for transforming CONUS posts, bases, and installations into “docking stations,” an objective that the Army CIO/G6 has called a priority. Presumably funding for that effort, as well as for modernizing Army transport networks will come from the Installation Information Infrastructure Modernization Program (I3MP) budget in the fiscal 2013 RDT&E request. Requested fiscal 2013 funding for those efforts totals $83 million, ramping up significantly in fiscal 2014 to approximately $370 million.
Also worth noting from the report is the fact that the Army estimates the programs listed above will require funding in excess of $3 billion annually for a period of undetermined length. As the GAO notes, “this level of effort could total in excess of $60 billion over a 20-year period.” Staying with the short-term outlook, assuming the requested $3.8 billion for the network-enabled mission command portfolio continues into next year, and is combined with the budgeted request of $370 million for I3MP, it means that overall funding for Army network modernization efforts alone will be no less than $4.17 billion in fiscal 2014. Fitting this spending into the larger Army budgetary perspective, FIA forecasts that the Army’s fiscal 2014 IT budget will total $17.4 billion (See Table 2). This means that Army spending on network modernization will take up 24% of the Army IT dollars spent next year. That is a big chunk of change!
Table 2: Forecast Army IT Budget for FY 2012-2017 
A final consideration in all of this is the potential impact of sequestration. If enacted, sequestration cuts $954 million (10.7%), from the total fiscal 2013 Army RDT&E budget request of $8.9 billion. This total amounts to the entire R&D requested funding for the mission command portfolio examined by the GAO. I do not expect that this portfolio alone would be subject to cuts, but I bring it up so we can see the magnitude of the threat. Then there are the cuts to the procurement budget to consider. Sequestration would bite this portion of the budget less deeply, but the potential for massive program cuts still looms large. The data provided to the GAO shows that requested fiscal 2013 procurement funding for the mission command portfolio totals approximately $2.8 billion. Compare this to the approximately $2.4 billion of the Army’s requested fiscal 2013 procurement budget that is subject to sequestration. Again, I would not expect to see this portfolio bear the entire brunt of the sequester, but the potential is there for cuts to be broad and deep. Plan accordingly.

 

Rhode Island's Health Insurance Exchange Awarded

Deloitte came up big again in the health insurance exchange (HIX) market, recently winning a $105 million contract for Rhode Island’s Unified Health Infrastructure Project. The project encompasses the state-based HIX and integrated eligibility for Medicaid and other human services programs. Neighbor-state Connecticut previously contracted with Deloitte for both its exchange and eligibility system, with a contract valued at $42.5 million.

 

Rhode Island estimates that nearly 200,000 new and existing Medicaid customers will use the exchange to sign up for insurance. The eligibility engine will ultimately replace the current eligibility-determination system that supports Medicaid, the Children’s Health Insurance Program (CHIP), the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), child care, general public assistance, and state supplemental payments. Like most eligibility revamps across the states, Rhode Island will split the project into two phases, with the human services aspect migrated over by December 31, 2015.

Look in February for a new report from our analysts on the HIX market. In the meantime, Deltek’s Health Insurance Exchange Vertical Profile Application provides expanded market coverage, giving vendors a competitive edge by extensively tracking states’ progress in HIX implementation. Non-subscribers can gain access with a GovWin IQ free trial. As always, be sure to follow Deltek’s Health Care and Social Services Team on Twitter @GovWin_HHS, or connect with us through LinkedIN.

 

GovWin Recon - January 29, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Big Data / Analytics:

Mobility:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

 

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

GovWin Recon - January 28, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding government technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Big Data / Analytics:

Mobility:

Transparency and Performance:

Defense / C4ISR / Embedded Technology:

Budget / Sequestration:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

 

GovWin Recon - January 25, 2013

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding govenment technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Federal IT:

Agency News:

Vendor News:

Cybersecurity:

Cloud Computing / Data Center Consolidation / Virtualization:

Big Data / Analytics:

Defense / C4ISR / Embedded Technology:

Contracting / Acquisition:

State and Local:

AEC News:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

Hidden costs in the cloud

Deltek is pleased to present a guest blog on cloud computing from Microsoft. Over the next year, the General Government Services team will be looking to partner with leading vendors in the fields of cloud computing, enterprise resource planning software, student and teacher information systems, statewide longitudinal educational data systems and other core technologies tracked in the GovWin IQ Opportunities Database. Special thanks to Joel Cherkis and Michele Bedford Thistle for contributing their valuable insight and opinions regarding cloud computing. Click here to view Joel's blog on cloud computing and shared services.  
If you are interested in guest blogging for Deltek in the topics mentioned above, reach out to DerekJohnson@deltek.com for more information! Meanwhile, be sure to follow us on LinkedIn! 
As governments continue to steadily march toward integrating the cloud into their daily IT operations, it is important to try and cut through as much of the hype and hoopla as possible to understand the return on investment IT managers are getting. One of the main alleged benefits of the cloud surrounds the cost savings that governments and businesses can find by shedding IT infrastructure and data center costs through software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS).
At the outset of the cloud phenomenon, this benefit was largely couched in hypothetical terms, such as “moving to the cloud could yield cost savings.” Since then, we have seen thousands of public and private sector organizations execute cloud migration strategies, and their experiences have led to the discovery of some significant caveats and holes in this theory. Cloud computing “allows savings only in the sense that you no longer have to provision servers based on your peak demands,” according to Tech Republic writer Thoran Rodrigues, adding that if your computing resource needs are steady, “there isn’t any real gain.” 
Many veterans of cloud migration compare outsourcing their software or infrastructure to the cloud with leasing a car or hiring a taxi to provide transportation. You can save some real scratch in the short term by shifting the cost burden for commodities such as gas, maintenance and repairs onto a third party. However, since you are paying a higher rate per mile than you would if you owned your own car, these returns tend to diminish over time. After a certain point, hiring a taxi to drive you everywhere will become cost-prohibitive. This is not a perfect analogy, but it helps illustrate why simply assuming you will automatically save money through cloud implementation may get you into trouble.
If you frequent technology conferences where public and private CIOs discuss their experiences with the cloud, you will find that this sort of trepidation around cost savings is beginning to permeate the marketplace. A recent survey commissioned by Symantec on the hidden costs of the cloud yield some fascinating results that should give IT managers pause before they pitch their cloud projects as big-time money savers. 
Depending on how an organization executes its strategy, the overall cost reductions could be diminished or wiped out altogether. Among the biggest mistakes organizations make are rogue cloud deployments where a single department or agency within an organization moves some aspect of its infrastructure to the cloud without coordinating with the rest of IT. Further missteps include costly, decentralized and sluggish disaster recovery operations, and poor cloud storage utilization strategies. Specifically, of the 3,236 organizations that responded to the survey, 68 percent said they experienced a data recovery failure in the cloud, while 79 percent claimed that the frequency of rogue cloud deployments within their organization has either remained steady or is becoming more of a problem.
These are fairly shocking numbers and emphasize the need for a coordinated, enterprise-wide strategic approach to cloud implementation if organizations want to yield any cost savings. Centralizing the procurement and migration process through IT, and bringing in consultants to navigate potential pitfalls and relay best practices is essential to executing a smart cloud strategy. 
To learn more about cloud computing procurement in the state and local marketplace, be sure to check out Deltek’s 2012 report, “Creating the Hybrid Cloud,” by research analyst Derek Johnson (subscription required).

Recon

GovWin Recon, produced by Deltek's Federal Industry Analysis (FIA) team, is designed to support awareness and understanding of the issues impacting the government and the contractors that serve it. Recon highlights key developments surrounding govenment technology, policy, budget and vendor activities.

Headlines beginning with an * include quotes from Deltek analysts. 

Federal IT:

Agency News:

Vendor News:

Mobility:

Transparency and Performance:

Defense / C4ISR / Embedded Technology:

Budget / Sequestration:

Mergers and Acquisitions:

State and Local:

GovWin Recon is Deltek's daily newsletter highlighting federal government contracting news and analysis from around the government contracting world. Get it delivered to your e-mail inbox, free!

 

 

 

 

Shared services: A compelling model for government business

Deltek is pleased to present a guest blog on cloud computing from Microsoft. Over the next year, the General Government Services team will be looking to partner with leading vendors in the fields of cloud computing, enterprise resource planning software, student and teacher information systems, statewide longitudinal educational data systems and other core technologies tracked in the GovWin IQ Opportunities Database. Special thanks to Joel Cherkis and Michele Bedford Thistle for contributing their valuable insight and opinions regarding cloud computing.
 
If you are interested in guest blogging for Deltek in the topics mentioned above, reach out to DerekJohnson@deltek.com for more information! Meanwhile, be sure to follow us on LinkedIn!
 
By Joel Cherkis, Government General Manager, Microsoft
 
As public sector organizations around the world seek to cut costs in response to economic and budget pressures, many are looking for new strategies to deliver on their missions. Adding to this challenge is that amid shrinking budgets and resources, more than ever, citizens are demanding services from government that rival the best and most innovative in the consumer world.
 
In this era of doing more with less, shared services – a new computing model made possible by the cloud – is rapidly gaining popularity in government. It refers to taking a service, application, or infrastructure owned by one organization and sharing it via the cloud with multiple parties, either within the same organization or adjacent ones. Analyst firm IDC Government Insights predicts that in 2013, shared services will account for 18 percent of the government cloud market and will offer new ways of procuring and provisioning technology.
 
The benefits of this model are clear. By combining the IT resources of departments, agencies, and even various levels of government, public sector organizations collectively stand to realize enormous cost savings by eliminating the need to independently own and manage their own IT resources. There are also important opportunities to boost efficiency by consolidating IT resources and maximizing the use of underutilized applications and services by opening them to a broader set of stakeholders. With this new model also comes greater access to innovation, particularly for local government leaders who, despite limited budgets, can now access the latest technologies by collectively sharing the cost. 
 
A great example of an organization that’s taken advantage of shared services in the cloud is Staffordshire County Council in the U.K., which created the Staffordshire Public Sector Network (PSN) to enable public sector organizations in the area to securely share services over a common network. As a result, the council is now able to deliver a pricing model based on usage of cloud services, maximize its current IT investments, and better predict future IT needs because of its new approach.
 
Shared services offers an exciting new model for government, and stands to change the way that public sector organizations use and procure technology. By fully leveraging economies of scale, shared services can help governments maximize their investments in technology, improve utilization of existing resources, and expand access to innovation by sharing the cost of adopting the latest technologies. As organizations continue facing challenging budget environments, I believe this will drive even more governments to adopt a shared services approach. If you’d like to learn more, I encourage you to check out our Microsoft On Government blog, which frequently covers this topic.
 
To learn more about cloud computing procurement in the state and local marketplace, be sure to check out Deltek’s 2012 report, “Creating the Hybrid Cloud,” by research analyst Derek Johnson (subscription required).

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