IT Acquisition Solutions That Save Time and Money While Transforming Government. Understanding Key Benefits of GSA s IT Schedule 70

Transcription

1 IT Acquisition Solutions That Save Time and Money While Transforming Government Understanding Key Benefits of GSA s IT Schedule 70

2 To our valued technology customers, I m Mary Davie, Assistant Commissioner of the General Service Administration s (GSA) Office of Integrated Technology Services (ITS). I am excited to introduce you to the GSA Information Technology (IT) Schedule 70 Contract Guide highlighting the largest and most widely used IT procurement vehicle in the federal government. This guide features IT Schedule 70 program capabilities and benefits, demonstrating the ways in which GSA offers integrated technology products, services, and solutions. This guide also addresses federal, state, and local governments greatest mission challenges. IT Schedule 70, part of GSA s Multiple Award Schedules (MAS) program, offers access to commercial information technology products and services from over 5,000 certified vendors. The program s value can be found in its ease-of-use, fair and reasonable pricing, free training, and access to an array of world-class industry partners, many of which are small businesses. Agencies face increasingly complex communications and computing challenges. To achieve their missions, agencies require equally complex solutions such as cloud IT and data center services, sustainability and green IT, cybersecurity, and commercial satellite communications. GSA s recently awarded Infrastructure-as-a-Service (IaaS) cloud offering provides an example of how we use IT Schedule 70 as a platform for creating integrated solutions. The IaaS blanket purchase agreement (BPA) packages IT Schedule 70 products and services into distinct lots featuring cloud storage, virtual machines, and web hosting. Through this offering, as well as GSA s upcoming -as-a-Service contract, agencies can meet the Office of Management and Budget s cloud and data center consolidation mandates, reduce their environmental footprint, save taxpayer money, and serve the American people better. IT Schedule 70 brings the latest technology to agencies and allows GSA to be more innovative and responsive to the needs of the government agencies we serve. Communication with our customers and industry partners is critical to our continuing success. As a result, I am happy to note that we have launched an improved helpline to ensure that people can get their questions addressed quickly and efficiently. We are also working to increase collaboration and improve our customer service offerings through training opportunities, industry forums, and enhanced regional representation. The recent enhancements to GSAAdvantage! increase our customers ability to perform market research on our suite of products and services and make informed buying decisions. The Federal Acquisition Service (FAS) and the IT Schedule 70 program remain committed to making it easier for agencies to meet their missions and conduct the business of the federal government through quick and cost-effective fulfillment of IT needs. Thank you for choosing to work with GSA. Sincerely, Mary Davie Assistant Commissioner Office of Integrated Technology Services Federal Acquisition Service General Services Administration s2

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4 IT Schedule 70 An Introduction Understanding Key Benefits of GSA s IT Schedule 70 The General Services Administration s IT Schedule 70 is the government s go-to source for IT acquisitions and is broadly recognized for its benefits of cost savings, time savings, selection, and built-in value. IT Schedule 70 is organizationally positioned under GSA s Federal Acquisition Service (FAS) and Office of Integrated Technology Services (ITS). The efficiencies associated with purchasing information technology via the pre-existing, pre-competed GSA IT Schedule 70 save both time and money for government customers. To confirm these benefits, GSA is examining the time it takes a government entity to award its own full and open contract, using products and services readily available from GSA. After a review of over 700 contracts, findings indicate that large-value IT contracts take 25 months to complete on average. This timeframe is well over the average of IT Schedule 70 contacts. Further, in 77 percent of the 700 contracts examined, contract awards were ultimately made to vendors that already hold existing IT contracts. Federal, state, local, and tribal government customers should consider utilizing GSA s IT Schedule 70 to optimize the planning and procurement process and leveraging GSA s suite What is IT Schedule 70? IT Schedule 70 is an Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Schedule (MAS) contract. It is an IT procurement vehicle that offers a comprehensive array of state-of-the-art IT products, services, and solutions. Approximately 80 percent of IT Schedule 70 contract holders are small businesses. Recently, this contract vehicle has been used primarily for service-oriented procurement offerings. Services made up more than $11 billion of the contract vehicle s $16.2 billion in FY2010 sales. Today, IT Schedule 70 is the largest procurement vehicle and the most widely-used acquisition offering in the federal government. Nearly one-third of all MAS contractors are available through IT Schedule 70 s Special Item Numbers (SINs). Considered Evergreen, IT Schedule 70 contracts contain a five-year base period, plus three five-year option periods. of e-tools that facilitate market research and offer automated purchasing capabilities. Cost savings are also generated via pre-negotiated ceiling prices that provide significant discounts from commercial pricing and serve as a starting point for head-to-head competition or further negotiations. Why IT Schedule 70? GSA uses IT Schedule 70 to deliver a full range of IT solutions including hardware, software, maintenance, network services, cybersecurity, professional IT services, and more. Key benefits include: Ease of Use Simplified online ordering and use of Blanket Purchase Agreements (BPAs). Built-in Value Nationwide network of resources, including complimentary e-tools, extensive training opportunities, and responsive regional GSA representatives. Safe-harbor Assistance with Federal Acquisition Regulation (FAR) compliance. Variety Access to 5,000 industry suppliers, providing millions of products and services. Teaming Contractor Team Arrangements (CTAs) allowing industry partners to collaborate and offer a total solution to meet specific customer requirements. Finally, GSA IT Schedule 70 offers customers both online and in-person training, providing the assistance and support they need to complete the often complex IT purchasing process. s4

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6 Leveraging IT Schedule 70 Patricia Waddell, Deputy Director for the Center for IT Schedule Business Programs The IT acquisition process is one of the most important and complex areas of coordination and collaboration between federal, state, and local governments, and industry partners. IT Schedule 70 uses enhanced communications to drive transparence and leverage partnerships towards simplifying the sometimes challenging acquisition process. Economies of scale and broad partnerships drive the biggest cost savings and greatest efficiencies on the IT Schedule 70 program. Patricia Waddell, Deputy Director for the Center for IT Schedule Business Programs said, IT Schedule 70 gives customers flexibility, vast selection, saves customers time, and provides built-in value. We provide the contracting expertise necessary to streamline the acquisition process, which can ultimately reduce the number of resources and level of commitment needed by the purchasing agencies staff. We provide online and on-site training sessions for customers to help them better understand how to use IT Schedule 70 and how to place task orders for different types of acquisitions, Waddell said. This training has been well received by the Department of Justice, the National Institutes of Health, and the Social Security Administration. Training is also provided to industry partners on how to prepare their proposals to offer products and services under the Schedule. Post-award, there is additional industry partner training available on topics such as how to better market your business, how to complete contract modifications, and how to ensure contract compliance, she added. Waddell added that GSA is moving towards using webinars and online training to improve understanding of the Program s many benefits and to make the Schedule more accessible to customers across the country. Additionally, to help agencies maximize the effectiveness of using the IT Schedule 70 program, GSA s FAS leverages an array of training and educational tools. FAS has worked with the Federal Acquisition Institute to develop basic and advanced pilot training courses on how to place MAS orders. FAS is also taking advantage of Web 2.0 and social media technology to better reach agencies and train customers on how to maximize effective use of the IT Schedule 70 and other MAS programs. Tools such as the new MAS Desk Reference online portal provide web-based updates to educate customers about the program. IT Schedule 70 managers also plan to create an open community on the FAS social collaboration platform, interact.gsa.gov in the near future. Webinars and online training are available through GSA's Center for Acquisition Excellence. FAS also conducts teleconferences and on-site meetings at customer locations to assist customers. GSA and non-gsa conferences provide another opportunity for FAS to help customers learn about key acquisition vehicles. For example, GSA s training conference in May includes over 200 classes in acquisition, project management, sustainability and technology. And yet another GSA etool called ebuy provides assistance with conducting head-to-head competitions through the use of an on-line Request for Quote (RFQ) tool. GSA s ebuy allows agencies to request information, find sources and prepare RFQs for required products and services offered on GSA Government wide Acquisition Contracts (GWACs) and MAS contracts. FAS has also improved customer facing electronic tools such as GSAAdvantage! which is an online shopping and ordering system that gives agencies access to over 18,000 MAS contracts, as well as over 28 million products, services, and solutions at the best value. The GSAAdvantage! website now has nearly 800,000 registered users and receives 500,000 visits per day. In addition to federal government users, state and local government agencies can use GSAAdvantage! to s6

7 purchase IT and disaster recovery products and services. With so many useful educational tools and services, GSA is striving to meet its customers diverse requirements. In addition to the many resources available, GSA is also planning to launch an end-to-end electronic contracting environment that will further drive process improvements, officials said. The goal of the GSA s upcoming online contracting environment will be to make it easier, faster, and cheaper for agencies to purchase goods and services. This online environment will: Standardize and eliminate duplicative processes; Automatically incorporate acquisition policy changes; and Increase transparency in GSA s daily operational activities. Customers should look for this online environment to be rolled out in In addition, to provide quality service to its customers and industry partners, IT Schedule 70 utilizes the support of GSA s Customer Service Director (CSD) network. The CSD network is a field sales force that provides regional support to customers and industry partners throughout the country and select international locations, Waddell explained. Additionally, in January, the Schedule launched a customer service help line. The support staff is trained in assisting customers with general questions about the Schedule and can provide assistance in locating products, services, or solutions within the suite of Special Item Numbers (SINs) or finding the appropriate contracting officer. The number for customers to call is Wide Selection, Volume Discounts on IT Schedule 70 Steven Kempf, Commissioner for GSA s Federal Acquisition Service (FAS), testified in March 2011 before the House Subcommittee on Financial Services and General Government that interagency acquisitions offer important benefits. Since its inception in 2003, GSA s SmartBUY (Software Managed and Acquired on the Right Terms) program has generated savings for software purchasers approaching $1 billion, he said. The SmartBUY program works in close collaboration with the Defense Department s Enterprise Software Initiative to establish Blanket Purchase Agreements (BPAs) against IT Schedule 70 contracts for frequently licensed, commercial off-the-shelf software, and related services. We continue to actively look for opportunities to apply this strategic acquisition model for additional products and services to bring these savings to the taxpayer, Kempf said. The SmartBUY team recently partnered with the DoD Enterprise Software initiative to negotiate government-wide agreements for Oracle database software. The results of their partnership increased the discounts agencies were previously able to achieve from GSA Schedule database license purchases from approximately 40 percent to 80 percent. Additionally, the SmartBUY program has raised the bar on security and compliance standards by incorporating National Institute of Standards and Technology (NIST) and Office of Management and Budget (OMB) standards, including the Federal Desktop Core Configuration (FDCC), Secure Content Automation Protocol (SCAP), Federal Information Processing Standards (FIPS) and Supply Chain Risk Management (SCRM). Damon McClure, Deputy Director for the Center for IT Schedule Operations, said the Federal Acquisition Regulation (FAR) allows for streamlined rules to meet competitive requirements and shorten the time it takes to fulfill a contract award, from 45 days in a traditional full and open competition, to typically less than two weeks on IT Schedule 70. Another key advantage GSA brings is pre-vetting contractors. We handle the due diligence so that agencies know the products they select come from contractors who offer fair and reasonable pricing. While they can and should do further negotiating to achieve bigger discounts from contractors, our customers gain from the legwork we do for them up front, McClure explained. Dennis Harrison, GSA s Director of the Contract Cost and Price Analysis Division, said government customers gain from the vast selection of products Damon McClure, Deputy Director for the Center for IT Schedule Operations s7

8 IT Schedule 70 Statistics and Features Core characteristics of IT Schedule 70 procurements include: ID/IQ contracting vehicle to procure IT commercial products and services; Ordering agency select products and services based on best value to end-users; An estimated 80% of all contracts are held by small businesses; More than 40% of all IT Schedule 70 sales come from small businesses; Helps agencies meet socioeconomic goals; and Vehicle is available to state/local governments, under certain authorities. purchase from GSA s IT Schedule 70 through the Cooperative Purchasing program, said Tricia Scaglione, Program Analyst in the Special Programs Branch Office of Acquisition Management. Section 833 of the John Warner National Defense Authorization Act of 2007 also established the use of Federal Supply Schedules by state and local governments for disaster recovery. Thomas Corcoran, Business Management Specialist and Cooperative Purchasing Lead for GSA s Center for IT Schedule Business Programs and services offered through IT Schedule 70, because of so many pre-qualified suppliers. Also, because IT Schedule 70 offerings are previously competed, there s no need for customers to address the rules and requirements of non- Schedule purchases. Prices on IT Schedule 70 are determined using most-favored customer rates, based on sales of a single unit. Most suppliers offer prompt payment and/or volume discounts to government customers who purchase through the Schedule as well, Harrison said. GSA IT Schedule 70 provides a diverse selection of local and global contractors, the majority of which fall under one of the federal government s socioeconomic categories such as service-disabled veteran-owned companies and small and disadvantaged companies. The Schedule program strongly supports small business, women-owned small business and small disadvantaged business participation, Harrison said. State and Local Government Initiatives The wealth of benefits and great services offered through GSA s IT Schedule 70 was extended beyond the federal sector in Under Section 211 of the e-government Act, state and local governments, tribal organizations and educational institutions have been able It is important to note that all state and local government programs are voluntary, said Thomas Corcoran, Business Management Specialist and Cooperative Purchasing Lead for GSA s Center for IT Schedule Business Programs. State and/or local governments have no obligation to use the Schedule, though many are willing to try the Schedule to help reduce acquisition time and expense, Corcoran said. IT Schedule 70 FY2010 state/local sales totaled $482 million. The growing number of suppliers gives state and local government customers better selection and enhances competition, allowing buyers more leverage in pricing negotiations, said Sharon Terango, a SmartBUY Project Manager for GSA. States and local authorities may purchase items via GSA s SmartBUY BPA program for data at rest (DAR), geospatial, situational awareness and incident response (SAIR), and even the new Infrastructure as a Service (IaaS) cloud computing solutions. They may also purchase from the satellite services available under the IT Schedule 70 Commercial Satellite Communications (COMSATCOM) SINs and IT Schedule 70 Contact Information Helpline: Fax: it.center@gsa.gov Webpage: s8

9 Industry Benefits of IT Schedule 70 IT Schedule 70 is a streamlined, convenient, money-saving and time-saving tool for government to obtain the commercial goods and services needed to satisfy requirements. The Coalition for Government Procurement (CGP) represents more than 300 firms selling commercial services and products to the federal government and advocates for common sense in government acquisition. According to Roger Waldron, CGP s President, the true value of the $16 billion IT Schedule 70 program is its ability to streamline acquisitions, making it easier for federal agency buyers as well as industry partners to transact business. Waldron maintains the sheer size of IT Schedule 70, along with the many features and capabilities offered, creates a cost-effective contract channel for government contractors to market their products and services. Typically, bid and proposal costs are expensive. IT Schedule 70, with its pre-negotiated terms and conditions, along with the ability to use ebuy to post RFQs, enhances competition, streamlines response times, and improves communications for agency buyers and contractors. The Schedule allows suppliers to focus on agency statements of work, to speed the process of acquisitions, he said. Mentor-Protégé Program Delivers Small Business Opportunities GSA s Mentor-Protégé Program is designed to encourage and motivate GSA prime contractors to assist small businesses and enhance their performance on GSA contracts. The program is intended to foster the establishment of long-term relationships between small businesses and GSA prime contractors and increase the overall number of small businesses that receive GSA schedule awards. Under the Mentor-Protégé Program, eligible small businesses can act as suppliers or provide services or subcontractors for any prime contractor with an approved subcontracting plan negotiated with GSA. Protégé firms are selected by mentors, which can open new markets for their businesses, said Anthony Eiland, Program Manager of GSA s Mentor-Protégé Program and Program Manager of Veterans Affairs Outreach Initiatives. For firms that have never done business with GSA, this special program teaches them how GSA works and how to interact with other agencies, Eiland said. Small businesses use this program to gain acceptance and viability as a contractor serving the needs of large federal agencies such as USDA, he said. For mentors, the biggest benefit of the program is a strong sense of giving back, said William Jaffe, Senior Vice President and General Manager of Technical and Project Engineering LLC (TAPE), based in Alexandria, Va. TAPE is a mentor with one protégé. The company serves as a mentor to help smaller companies learn the ropes of selling through the GSA schedule. Mentors typically start out seeking partner suppliers to fill out their small business set-aside requirement, Jaffe said. Gregory Olson, Associate Vice President of Operations at Catapult Technology Ltd., an IT services and management consulting firm based in Bethesda, Md., is a mentor to three protégé firms. As a recent graduate of the 8(a) program, we are always seeking partners to build strategic teams that can help us meet agency small business/8(a) requirements, he explained. Customers and Industry Have Their Say Customers and industry partners alike benefit from all that IT schedule 70 has to offer. Julia Lopez, Purchasing Manager of Applied Research Laboratories at the University of Texas at Austin, chose to purchase from GSA s IT Schedule 70 because the approval process was faster than seeking formal bids. The lab purchased custom configured high-performance servers and other IT equipment using the schedule program. The beauty of GSA is the speed at which Roger Waldron, President, The Coalition for Government Procurement Anthony Eiland, Program Manager of GSA s Mentor-Protégé Program and Program Manager of Veterans Affairs Outreach Initiatives s9

10 Kitty Klaus, Senior Program Manager of GSA Programs, for HP Enterprise Services procurements can be approved without additional bidding, said Lopez. Discounted pricing was another incentive for UT Austin, along with pre-approved terms and conditions, which helps streamline the decision process for utilizing the program, she added. I can count on solid service from the GSA Schedule holder to assist with an upgrade or reconfiguration if needed. I know he ll stand behind his products with good customer service and support. In 2010, Hewlett-Packard did $500 million in business on the IT Schedule 70 contract, said Kitty Klaus, Senior Program Manager of GSA Programs for HP Enterprise Services. Klaus especially appreciates BPA programs due to the opportunity for long-term commitments with customers. This allows us to work closely with government customers to provide the best possible pricing, she explained. With IT Schedule 70 s pre-established terms and conditions and fair and reasonable pricing, we can focus more attention on the agency s requirements in each schedule award, she continued, adding that GSA ebuy is another key advantage because we are able to see the RFQs from agencies all in one place. Ultimately the IT Schedule 70 program brings more competition and greater transparency to government acquisitions. It s a good value for customers, while also serving the needs of taxpayers, Klaus said. Seven Benefits of Holding a GSA Schedule 1. Builds brand recognition by providing a preferred vendor status. 2. Provides a door-opener into the government market. 3. Differentiates suppliers from non-schedule vendors with same services and products. 4. Offers a multi-purpose contracting device. 5. Reduces contract time from solicitation to award. GSA has reported a reduction from 268 days under standard agency RFPs to 30 days under an IT Schedule 70 RFQ. 6. Increases the speed for the government to buy from industry partners. Saves time during the acquistion process. 7. Offers fastest and least expensive entry into public sector market. Source: GSA ITS I m a big fan of the SmartBUY program, said Roy Stephan, Vice President of Technology Solutions for Intelligent Decisions Inc., a Data at Rest (DAR) and situational awareness and incident response (SAIR) SmartBUY contract holder based in Ashburn, Va. Stephan is looking forward to more SmartBUY programs to help address the many regulations federal agencies must take into account during acquisitions. GSA raises the bar for all industry partners by setting government-wide technical requirements in the SmartBUY program. This will ensure customers can quickly buy products and services that comply with known federal laws and regulations, without costly and redundant acquisition evaluations, he said. John Keese, President of Autonomic a GSA cloud computing provider was first awarded a DAR, then a SAIR contract, and is now offering Infrastructure as a Service (IaaS) cloud computing on his roster of available solutions offered via the SmartBuy BPA program under IT Schedule 70. SmartBuy BPAs help customers in federal, state and local governments to address key areas of concern regarding cyber security, and now cloud computing, by allowing them to purchase products and services that are pre-certified to meet stringent federal security requirements, he said. Particularly at the state and local government level, Keese said the key advantage of this program is avoiding a painful vetting process. States can now purchase a pre-vetted solution that complies with the Federal Information Security Management Act has been aggressively discounted to address government-wide requirements. On their own, the states simply can t achieve the same level of volume discounts they can find via the SmartBUY program, he added. s10

11 Strategic, Customer-Centric Solutions For the Future Similar to other government agencies, GSA is working diligently to meet the current government mandates, including the green initiatives of Executive Order IT Schedule 70 is moving to expand electronic contracting, increase sustainability, and achieve GSA s green IT goals, explained Patricia Waddell, Deputy Director for the Center for IT Schedule Business Programs. Pilot testing of the electronic contracting system is gaining momentum in the organization and yielding positive results. The online contracting system is expected to be fully functional in FY2012. Another key green IT initiative, according to Waddell, is GSA s 15 telepresence centers located across the country. The centers are not just for GSA employees, as all agencies can use the centers towards improving telework capabilities, reduce travel expenses, increase sustainability, and connect to other agencies and businesses. Current offerings such as the telepresence centers and webinars will decrease travel expenses, Waddell said. GSA is expected to expand IT Schedule 70 s role in improving cybersecurity for agency customers. IT Schedule 70 is currently assisting federal, state, local, and tribal governments in the procurement of cybersecurity, information assurance, and privacy (CIAP) project products and the authentication of critical infrastructure. To be most effective, the Center for Information Assurance and Identity Management (CIAIM) is listening to GSA customers about their needs and requirements and how GSA can best provide services to meet the growing demands for cybersecurity, information assurance (IA), and privacy. GSA is building a new foundation for how to acquire cybersecurity products and services within the IT Schedule 70 SmartBUY program, according to Shondrea Lyublanovits, Director of GSA s Security Services Division. Lyublanovits is responsible for IA and the Federal Risk and Authorization Management Program (FedRAMP) initiative, as well as Public Key Infrastructure (PKI). According to Lyublanovits, GSA is anticipating the launch of a FedRAMP BPA, which is expected to make migrating to cloud computing easier and more secure. Federal agencies should look forward to other enhancements as well. Securing the critical infrastructure of the federal government is of paramount importance to us. GSA wants to be the lead for all agencies in the procurement of all products and services, but we know this can only be achieved with the proper amount of awareness and security risk mitigation, Lyublanovits explained. Stanley Kaczmarczyk, Deputy Director in the Center of Strategic Solutions and Security Services for GSA heads the Homeland Security Presidential Directive 12 (HSPD-12) identification card program. Under a contract on IT Schedule 70, Kaczmarczyk s group offers a managed services program that helps 18 federal agencies issue HSPD-12 compliant ID cards for employees and contractors nationwide. In total, about 90 federal entities, including the Department of Energy, the Department of Justice, the Office of Personnel Management, the Department of Housing and Urban Development, and the Small Business Administration, among others are served by this program, which now has 450,000 active card holders. The agencies contract with us, and we provide the web-based program to them to allow them to enroll employees and contractors for these HSPD-compliant ID cards, Kaczmarczyk explained. In February, the OMB ordered agencies to add physical and logical access systems on these ID cards, he said. GSA is building new managed services now that will help agencies comply with this latest OMB requirement as well. Ultimately, IT Schedule 70 offers an enormous opportunity for government agencies to fully leverage GSA s existing products and services to create substantial savings for their agencies and for government as a whole. In the future, Steven Stanley Kaczmarczyk, Deputy Director for the Center of Strategic Solutions and Security Services s11

12 Kempf, Commissioner for GSA s Federal Acquisition Service, said in his congressional testimony in March, our focus will be on continuing to align our contracts to customer needs and focus on leveraging capabilities across the enterprise to develop, highlight, and deliver strategic offerings like cloud computing services, cybersecurity products and services, and data center services. We will expand our comprehensive suite of sustainable IT products and services, like telepresence, while leveraging the government s purchasing power to promote environmentally responsible products and technologies, and continue to provide leading edge solutions to enable agencies to comply with the Administration s Comprehensive National Cybersecurity Initiatives (CNCI). Undoubtedly, sustainability, cybersecurity, and cloud computing will all play greater roles in the future as part of GSA s overall procurement strategy to assist government customers in their IT modernization goals. Cloud Computing Procurement Options On the Rise Agencies to Gain One-Stop Shopping for Cloud-based Services As government agencies address the advent of cloud computing, the key advantages of using GSA s IT Schedule 70 to procure cloud-based services will bring enormous benefits and enable agencies to quickly achieve compliance with federally mandated goals. Recent federal mandates, including the Administration s 25-Point Implementation Plan to Reform Federal Information Technology Management published in December 2010 and its accompanying Cloud First Policy acquisition strategy, were designed to focus federal agencies on how to quickly get IT operations in shape to embrace cloud computing. Undoubtedly, cloud computing represents a paradigm shift that most agencies are learning to absorb, said David McClure, GSA s Associate Administrator in the Office of Citizens Services and Innovative Technologies. It s essential to remember cloud computing is a service-oriented approach to computing provided via the Internet. Using cloud-based services, agencies can move away from owning equipment and managing data centers, IT operations and applications. Instead, they can seek high-performance IT services to meet storage, computing capacity and applications needs, without worrying about the infrastructure, maintenance and personnel requirements of a physical IT environment. The Administration s plan, along with the Federal Cloud Computing Strategy report by U.S. Chief Information Officer Vivek Kundra, has set a brisk pace for IT modernization in In the report, Kundra advised the following procurement reforms, including: Develop procurement vehicles to accelerate the purchase of cloud solutions; Maximize strategic sourcing to buy cloud solutions; Eliminate redundant and inefficient vendor certifications; and Integrate needs of state and local governments. GSA is actively working to achieve these goals. Keeping up-to-date with technological change becomes the job of a cloud services provider, McClure explained. Another unique element of cloud computing is the self-service, on demand, pay-as-you go approach to computing, which is vastly different from what most agencies are accustomed to, he added. Agencies need to focus on the advantages cloud computing brings for reducing the complexity of contracting, acquisition, he said. They can leave the hard work of maintaining adequate performance to the cloud service provider. The ability to scale up as demand increases or reduce costs depending on the computing demand for each application should be very appealing to agencies, he explained. s12

13 Cloud Computing BPAs Available Under IT Schedule 70 GSA already provides an array of offerings for cloud computing, available now via Schedule 70 contracts. These include infrastructure, software, and platform as-a-service offerings, said William Lewis, Director of the Portfolio Management Division at GSA. Through Schedule 70 and our other ITS contracts, GSA will offer a full range of cloud computing services and the ability to accommodate newly developed services as they arise, he explained. The new Iaas offerings will provide a way for agencies to realize cost savings, efficiencies, and modernization without having to expand capital resources or their existing infrastructures, he said. The new IT Schedule 70 blanket purchase agreements, for example, are easy to use, feature firm/fixed prices for cloud services that were negotiated on behalf of the entire federal government, and were developed through close working relationships with agency customers, Lewis said. The IaaS BPA is designed for agencies seeking: Cloud Storage; Virtual Machines; and Web Hosting The IT Schedule 70 BPA offers cloud-based services in these three categories. So far approximately a dozen vendors are now able to compete for task orders. Prior to making IaaS solutions available through Apps.gov, industry partners must complete the Assessment & Authorization (A&A) process at the FISMA Moderate Impact Data security level as administered by GSA. Once granted authority to operate, products will be made available for purchase by government entities through the Apps.gov storefront. Apptis Inc. partnered with Amazon Web Services; AT&T; Autonomic Resources partnered with Carpathia, Enomaly, and Dell; Carahsoft; CGI Federal Inc.; Computer Literacy World partnered with Electrosoft, XO Communications and Secure Networks; Computer Technologies Consultants, Inc., partnered with Softlayer, Inc.; Eyak Tech LLC; General Dynamics Information Technology partnered with Carpathia; Insight Public Sector partnered with Microsoft Savvis Federal Systems; Verizon Federal Inc. The goal of GSA s Cloud Computing program is to provide uncomplicated cloud acquisition services to help agencies simplify the choices they must make, and bring greater transparency to the pricing of cloud-based services, McClure said. Some of the suppliers are small businesses. Others have chosen to partner to provide a rich variety of choices for federal customers, he added. In terms of support, Lewis said GSA has created a Cloud Computing Program Office to support the development, acquisition and migration to cloud services. This is a customer-focused organization willing to assist agency customers in acquiring cloud services, he explained. We can assist in the acquisition process, from requirements development to contract close, he continued. Other Cloud Examples GSA has migrated all of its public facing web activities on USA.gov to a cloud-based service, William Lewis, Director of the Portfolio Management Division at GSA Awarded suppliers have assembled skilled teams that will support the development of a range of services for government agencies. Awarded vendors and their associated teams include: Key IaaS BPA Advantages Customers can compare pricing of identical services across multiple industry partners; Vendor costs for completing the FISMA A&A process have been built into pricing; Customers gain from strong Service Level Agreements (SLAs); and Cloud-based services are certified for FISMA moderate risk security level. s13

14 Key Cloud Benefits The primary benefits of cloud computing for government, includes: Cost reduction Faster systems deployment Faster access to information Increased productivity Scalability Improved vulnerability assessment Improved self-service capabilities citing gains in economies of scale, simplified provisioning, as well as lowered costs. All in all, McClure reported the GSA s savings generated by moving USA.gov and its associated applications to the cloud was $1.7 million. GSA has also consolidated its emergency notification systems into a Software-as-a-Service (SaaS) offering that is now available 24 hours a day, seven days a week, according to McClure. This program has reduced annual maintenance costs from $77,000 to $17,000 and improved security while eliminating capital expenses. Finally, the GSA -as-a-Service initiative is currently under way, McClure said. So far, Google Apps has completed the security authorization phase, which means this solution may now be leveraged by other agencies as well. The GSA s cloud-based RFI, meanwhile, has generated 13 responses, which will be used to create GSA s final RFQ, McClure said. Cloud Futures Later this year, agency customers can look forward to greater efficiency in certifying the security of Federal Agency Early Cloud Adopters The following is a list of federal agencies that have already implemented cloud-based services, including: Bureau of Engraving and Printing. Environmental Protection Agency. Army. Air Force. Department of Veterans Affairs. General Services Administration. National Aeronautics and Space Administration. NASA Jet Propulsion Laboratory. Securities and Exchange Commission. Social Security Administration. Department of Treasury. U.S. Department of Agriculture Forest Service. Defense Information Systems Agency. Federal Labor Relations Board. Department of the Interior. cloud services through the Federal Risk and Authorization Management Program (FedRAMP), Lewis said. This program was structured to certify cloud services once on behalf of the entire government. Through FedRAMP, cloud services will become more secure and more efficient to certify than many premise-based services, he explained. Also, agency customers can expect to see enhancements that will make cloud services easier to purchase via online transactions, Lewis said. According to GSA s McClure, a government-wide -as-a-Service RFQ is being vetted now and will roll out in the second half of Agencies looking to move three services to the cloud in the next 18 months can count on GSA to help facilitate that migration process, McClure said. How to Get Rolling Now According to GSA officials, CIOs must plan ahead for successful cloud adoption. Key best practices for federal agencies to follow includes: 1. Gain agreement on the drivers behind adopting a specific cloud approach. Resource reduction/cost constraints; Need for specific cloud characteristic (elasticity, scalability, usage-based model); Need for rapid implementation; and Infrastructure, software, platform services or all three. 2. Grasp the move to services rather than buying physical technology. 3. Make cloud computing part of an overall IT investment portfolio and sourcing strategy, (Do you want to reduce capital expenses, infrastructure, applications inventory?) 4. Be realistic about possible cost reduction estimates and benefits realization. 5. Cloud creates opportunities to aggregate some sourcing. 6. Try not to focus on technology but on the desired outcomes driving key agency requirements. 7. Define where data resides or who has access to it. s14

15 Providing Government-wide Flexibility, Value in Satellite Services GSA and DISA Partner to Streamline the Delivery of Satellite Services The General Services Administration (GSA) and the Defense Information Systems Agency (DISA) have released the first contract awards under a combined IT Schedule 70 commercial satellite communications acquisition program, with more awards being rolled out daily. Part of an effort that began more than two years ago, the combined GSA/DISA venture, called Future Commercial Satellite Communications (COMSATCOM) Services Acquisition (FCSA), consolidates how federal as well as some state, local, and tribal organizations procure satellite-based services. GSA s IT Schedule 70, along with two indefinite delivery indefinite quantity contracts, are being used, the value of which is expected to exceed $5 billion over 10 years. The agencies in charge of the program agree the consolidated satellite delivery capabilities benefit users and providers alike. This innovative partnership will provide customers with a single platform for accessing critical communications services, said Jim Russo, GSA s FCSA and SATCOM-II Program Manager. This will result in significant savings for taxpayers, he added. One big benefit will be improved information assurance. Under the FCSA program, GSA is making sure industry partners meet federal Information Assurance (IA) requirements, demonstrating how they comply with IA standards now or how they will comply before accepting task orders. DISA already has three dozen task order competitions underway in the transponded capacity space, and has awarded a few contracts already, Russo explained. Moving from the older defense agency contracts to the new FCSA contract in a timely fashion only underscores how DISA and GSA are following through on the promise of this two-year old agreement. We now offer a path for all agencies to use in acquiring satellite services, Russo said. The federal government relies on commercial satellite communications to provide essential, secure communications to disaster recovery teams, domestic emergency responders, and war fighters. DoD is a major buyer of commercial satellite services, Russo explained. Satellite services are also used to support distance learning and remote access to global government networks, he added. The partnership between GSA and DISA is just one example of how GSA is working with customer agencies to meet their current needs while preparing for the future. A Little History Over the past decade, federal government customers have procured COMSATCOM services through an array of DISA and GSA contract vehicles. To increase government-wide cooperation and meet the ongoing demand for satellite services (multiple contracts expire in 2012), DISA and GSA announced the FCSA program to replace expiring contracts. Committed to President Obama s agenda for cooperation among federal organizations, DISA and GSA ultimately sealed the deal to ensure a common marketplace for satisfying the majority of the federal government s future commercial satellite communication requirements. Lt. Gen. Carroll F. Pollett, Director of DISA, and GSA s then Federal Acquisition Service Commissioner James A. Williams signed a memorandum of agreement Jim Russo, Program Manager for GSA s FCSA and SATCOM-II s15

16 in July 2009 to combine acquisition efforts in this area. The combined GSA and DISA common marketplace for commercial satellite communication services is finally ready to start delivering significant savings to defense and civilian agencies, as well as state, local and tribal governments, officials said. FCSA centralizes the procurement of commercial satellite communications for both civilian and military agencies. Instead of individual groups putting out their own requests for proposals, all organizations can now go through the GSA to place task orders under IT Schedule 70 or two related IDIQ contract vehicles. The GSA and DISA have been working to vet all industry partners of satellite services, certifying their offerings before industry members can bid on specific agency task orders. IT Schedule 70 Satellite Services Available Now FCSA incorporates satellite services that fall under the following special item numbers (SINs): Commercial Satellite Communications Transponded Capacity. This refers to owning/operating or reselling dedicated bandwidth and power on a communications satellite in any available COMSATCOM frequency band. Instructions from the Administration Regarding the 25-Point Plan The Administration s 25-Point Implementation Plan to Reform Federal Information Technology Management, published in December 2010, includes the following steps agencies should take now: Turn around or terminate at least one-third of underperforming IT portfolio projects within the next 18 months. Shift to Cloud First Policy. Each agency will identify three must move services within three months, move one of those services to the cloud within 12 months and the remaining two within 18 months. Reduce number of federal data centers by at least 800, by Approve funding of major IT programs only if they: Have a dedicated program manager and a fully staffed integrated program team; Use a modular approach with usable functionality delivered every six months; and Use specialized IT acquisition professionals. Work with Congress to: Consolidate commodity IT funding under the agency CIOs; and Develop flexible budget models that align with modular development. Launch an interactive platform for pre-rfp agency-industry collaboration Commercial Satellite Communications Subscription Services This is used for pre-existing, pre-engineered Fixed Satellite Service and/or Mobile Satellite Service solutions, typically including shared or dedicated satellite resources, ancillary terrestrial components, and contractor-specified networks and equipment in any available COMSATCOM frequency band. Separate End-to-End Solutions are also available to meet custom requirements as they arise. The two indefinite delivery/indefinite quantity (IDIQ) contract vehicles will include one called Custom SATCOM Solutions (CS2), a full and open competition. The second, CS2 Small Business, is a small business set-aside. Deadlines for these proposals expired last year. GSA is currently in source selection and expects to make awards in the fourth quarter of FY2011. According to GSA s Russo, the IDIQ contracts will help with specialized requirements and create even greater flexibility for agencies. He said there is talk now of efforts to build an Ancillary Telecommunications Component (ATC) that would combine terrestrial cellular phone capabilities with satellite telephony. This solution would allow users to make either satellite or terrestrial calls using one handset, switching coverage from terrestrial to satellite, when necessary. If a user is in the desert or without commercial wireless services, they can go to satellite service instead, he said. Although this type of all-in-one wireless communications solution is not yet available, it would fit into GSA s subscription services using the IDIQ vehicle down the road. In another example, other prior satellite contracts were stymied by specific frequency bands. Now if there is a new frequency band or further deregulation in frequency bands in the s16

17 future, GSA can add those new bands in its transponded contract SIN, Russo explained. At the time of this contract guide s publication, nine companies have received approval to be eligible to bid on task orders that serve the requirements of at least one of the two GSA SINs. GSA officials are already using Schedule 70 for customer task orders that fall under the scope of the Transponded Capacity and Subscription Services SINs. The industry partners approved so far include: Artel Inc., Segovia Global IP Solutions, CapRock Communications Inc., Hughes Network Systems LLC, and Intelsat General Corp., among others. Satellite services offered through the combined FCSA contract vehicle will replace those currently available through DISA s Defense Information Systems Network (DISN) Satellite Transmission Services-Global (DSTS-G), along with others, which will all expire by FCSA makes contracting for satellite services far more flexible, even for long-term planning, Russo said. In the past, each agency only had the ability to authorize funding for a specific length contract term. Without the ability to make a long term commitment, federal agencies really were not able to get the biggest discounts for commercial satellite services. Currently, broadcasters are the anchor clients for most industry partners, Russo said. The FCSA will allow agencies to extend long-term satellite leases to earn greater discounts, he explained. As we look at ways to do longer term leases, the length of our contracts will not be a sticking point, as we have set up the FCSA as an evergreen contract, with a five-year base term period and up to three, five-year extension options, he explained. the current contract vehicles available for satellite services, Russo said. For smaller organizations, or agency departments, GSA s new contract vehicle offers the advantage of bulk discounts to help them realize greater savings in satellite services as well, he added. How it Works For military organizations, the ordering process remains the same. Troops gain more solutions and technologies than were previously available under the DSTS-G contract. So far, the IT Schedule 70 award process has achieved all major milestones about five months ahead of schedule. The combined team has achieved its goal of prioritizing this program, through a concerted effort to review industry proposals and get contracts awarded promptly so that federal agency buyers can access new FCSA services now, Russo said. Under FCSA, military customers will continue to work with the Regional Satellite Support Center and DISA customer account managers to identify and develop requirements. Once requirements are refined, the DISA Program Management Office SATCOM will coordinate with the Defense Information Technology Contracting Organization to release the solicitation to vendors who are contracted under the FCSA program. On the civilian side, GSA officials will continue to provide the same level of support to customers with the development of requirements and selection of contract vehicle, when requested, as they now do under SATCOM-II. For the FCSA SINs, agencies may use any of the tools and mechanisms available to purchase services on GSA Schedules, such as ebuy and GSAAdvantage!, Russo explained. A website for FCSA has been set up. Anyone can visit to learn more about s17

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