SmartBUY : Transforming the way the Federal Government purchases software

1. SmartBUY: Transforming the way the Federal Government purchases software SmartBUY: Transforming the way the Federal Government purchases software Stephen Bell, Project Manager, SmartBUYDee Wardle, DoD ESI May 15 - 17, 2012

2. Value to the Customer • Value: SmartBUY leverages the Federal government’s • software purchasing power • Example: Teams with interagency commodity team to decrease government software commodity spend and achieve best terms and conditions • Value: Improves security and standards of Federal computers • Example: Works closely with OMB and NIST to insure BPAs include the latest guidance and standards

3. Agenda • GSA ITS Summary • GSA SmartBUY Overview • SmartBUY Program Stakeholders and Objectives • SmartBUY Products and Services • BPA Creation Synopsis • DoD Enterprise Software Initiative - Software Licensing • Audience Questions

4. ITS Mission, Vision, and Value • Our Mission • To excel at providing customers easy access to IT solutions through quality industry partners to fulfill government mission requirements • Our Vision • Great Government through Technology • Our Value • To reduce total acquisition time, cost, and risk, • allowing our customers to focus on their mission

5. ITS Program Offices • ITS Program Offices administer contract vehicles and deliver acquisition services to customer agencies to buy IT and telecommunications offerings and strategic solutions • Assisted Acquisition Services (AAS) provides complete acquisition lifecycle support to government agencies Network Services ProgramsYour one-stop shop for telecommunications solutions IT Schedule 70Fair and reasonable prices for IT products and services Governmentwide Acquisition ContractsComprehensive and flexible contracts that provide virtually any IT service IT Commodity Program IT commodities and ancillary services through innovative ordering ITS Center for Strategic Solutions and Security Services Good for Government Programs Services Assisted Acquisition

6. ITS Offerings and Solutions Communications and Network Services Offerings ITS “Great Government through Technology” Professional Services Hardware Products and Services Security Software Products and Services Strategic Solutions ITS offers government customers access to IT products, services, and strategic solutions

7. ITS SmartBUY Overview • SmartBUY (Software Managed and Acquired on the Right Terms) launched in June 2003 • Supports the current administration’s Homeland Security Agenda to modernize critical IT Infrastructures • Improves the configuration management, security, and standards of Federal computers • SmartBUY aligns with the President’s goal of saving taxpayer dollars by improving the IT investment planning process and streamlining IT procurement

8. GSA and SmartBUY • America's digital infrastructure is the backbone that underpins a prosperous economy, a strong military, and an open and efficient government • GSA is leading the way in building a reliable, resilient, trustworthy digital infrastructure for the future • GSA’s SmartBUY program supports these efforts with software agreements available to federal agencies in areas such as data encryption, configuration/vulnerability scanning tools, and geospatial information systems

9. SmartBUY Business Model • Provide Federal agencies the best obtainable terms and conditions • Work with Federal agencies to understand software requirements • Improve the configuration management, security, and standards of Federal computers • Reduce Acquisition and Support costs • Complement the Schedule 70 program by targeting large-volume software purchases

10. SmartBUY Key Service Objectives Best Obtainable Terms and Conditions SmartBUY Flexibility Flexibility Cost Savings Standardization Standardization

11. Software Publisher/Reseller Success Factors • Increase Federal Market Share • Create More Predictable Revenue Streams • Enhance Software Offerings with Professional Services • Lower the Cost of Sales to Government

12. SmartBUY Raises Bar on Security and Standards • SmartBUY BPAs incorporate the latest National Institute of Standards and Technology (NIST) and Office of Management and Budget (OMB) standards: • Federal Desktop Core Configuration (FDCC) • Secure Content Automation Protocol (SCAP) • Federal Information Processing Standards (FIPS) • Supply Chain Risk Management (SCRM)

13. GSA Schedule 70 / SmartBUY Relationship SmartBUY GSA Schedule 70 • Strategic Sourcing Methodology • Targeted Software Competitions • Partners Selected Based on Government Footprint • Schedule 70 Terms & Conditions • Broad Selection of Software Applications • Selection Flexibility • Fair and Reasonable Prices • Standard Terms & Conditions

14. SmartBUY Achievements • SmartBUY currently has 35 active Blanket Purchase Agreements (BPAs): • The BPAs reside within 6 software market categories. • 20 of the BPAs are available for state, local, and tribal use. • FY 2011 SmartBUY Program Achievements thru 4Q: • Sales = $310M • Federal Customer Savings = $388M • FY 2010 SmartBUY Program Achievements: • Sales = $215M • Federal Customer Savings = $238M • FY 2009: Federal Customer Savings > $195M. • Since program inception, Federal agencies savings are almost $1.3B

15. SmartBUY Software Market Categories • Business Intelligence • Database Management • Enterprise Backup/Recovery • Enterprise Content Mgt. • Enterprise Resource Planning • Geospatial Information Systems • Information Assurance • Network Management • Office Automation • Open Source • This template is set up with type sizes and locations already specified. • Just click on the text box of a new slide and start typing • If you are modifying an existing slide just highlight the text and replace it with new text. • Don’t move stuff around and you’ll be fine

16. SmartBUY Agreements

17. BPA Socio-Economic Classifications • 7 Large Businesses • 22 Small Businesses • 3 Small Disadvantaged Businesses • 2 Service-Disabled Veteran Small Businesses • 1 Woman-Owned Small Business

18. SmartBUY SAIR II Developments • RFQ scheduled for release 3rd Qtr 2012 • SAIR Tier II functional areas under consideration: • Malware Protection (Endpoint Protection Platform included) • Web Application Firewall • Security Information and Event Management • Data Flow Analysis • Intrusion Detection/Prevention • Storage Management • Vulnerability Assessment/ Analysis

19. Risk Management Framework BPAs • In coordination with the ISS LoB, GSA has awarded 14 industry partners blanket purchase agreements (BPAs) worth $58M to help agencies apply RMF to their IT systems. • RMF BPAs will meet existing and proposed FISMA and NIST security requirements. • RMF services: • Categorize Information System • Select Security Controls • Assess Security Controls • Implement Security Controls • Authorize Information System • Monitor Security Controls www.gsa.gov/rmf

20. Blanket Purchase Agreement (BPA)) In accordance with FAR 8.405-3, a GSA Schedule BPA: • Simplifies recurring acquisitions of products and services • Provides an opportunity to negotiate further discounts • Reduces administrative efforts • Obtains best value by leveraging buying power • Provides streamlined ordering procedures • Allows for quicker turnarounds on orders • Incorporates terms and conditions consistent with the underlying contract

21. SmartBUY BPA Creation Post-Requirements Definition, BPA milestones include: • Request for Information (RFI) • Developed by SmartBUY PMO and posted to FedBizOpps • Goal: Identify Industry capabilities • Industry Day • Discuss/Clarify requirements with Industry representatives • Request for Quotation (RFQ) • Released through e-Buy to IT Schedule 70 contract holders • Offer Evaluation and Bilateral BPA Award • Technical Evaluation • Price Evaluation

22. How to Use SmartBUY BPAs • SmartBUY Website: http://www.gsa.gov/smartbuy • BPA Ordering - In Accordance with FAR 8.405-3: • Single BPA – Authorized users may place the order directly under the established BPA • Multiple BPAs – Authorized users forward the requirement to all BPA holders and make a best value determination based on responses received • Decentralized Ordering Process • Standard Multiple Award Schedule (MAS) BPA Procedures • Spot Discounting Encouraged

23. Federal Strategic Sourcing Initiative (FSSI) SmartBUY

24. A FSSI SmartBUY Commodity Team has been established to develop and implement strategies to improve the government’s acquisition of software KEY ACTIVITIES SINCE JANUARY 2011 • Developed cross-agency Commodity Team comprised of senior CIO and CAO representatives • Developed an operating model and charter for the FSSI SmartBUY program • Interviewed Commodity Team members, stakeholders, and subject matter experts • Conducted multiple workshops: • Software Strategic Sourcing (JP Morgan) • Best Practices for Acquiring Microsoft product (led by IRS) • Best Practices for Acquiring Oracle products (led by DoI- June 8) • Conducted software spend data call & conducted follow-on discussions • Developed initial targets for savings STRATEGIC OBJECTIVES • Generate savings by improving the way the government purchases software • Drive improvements in software lifecycle management practices • Document and promote best practices • Provide a forum for cross-government knowledge sharing 24

25. FSSI SmartBUY program is executing and evolving GSA’s Strategic Sourcing model • DoD • VA • DHS • HHS • DOJ • DOC • USDA • GSA • FBI • DOE • IRS • STATE • NASA • DOI • TREASURY • EPA • OPM DevelopGSA business case & strategy to lower Federal TCO Analyze supply market trends & commercial best practices The SmartBUY Commodity Team represents 80% of overall Federal software spend Develop government-wide BPA(s) & change management plans Analyze agency spend & customer requirements

26. DoD Enterprise Software Initiative (ESI) Program • Founded in 1998 to establish a Department of Defense software enterprise management process. • Identifies, consolidates, and presents broad-based commercial IT requirements to commercial IT vendors, via a single negotiating position. • Negotiation, acquisition and administration methodologies are based on recognized best practices, and 14 basic operating principles • ESI Home Page: http://www.esi.mil

27. SmartBUY Program Management Office E-mail: SmartBUY@gsa.gov Website: http://gsa.gov/smartbuy 27

28. Thank you for your interest and participation! Please remember: • leverages the government’s immense buying power • SmartBUY aligns with the President’s goal of streamlining IT procurement • SmartBUY follows FAR guidance and IT Schedule 70 contract terms/conditions. • SmartBUY raises the bar on security and standards ITS can help make all of your IT acquisitions faster, cheaper and easier For more information contact: • stephen.bell@gsa.gov • www.gsa.gov/smartbuy • smartbuy@gsa.gov

29. Questions?