IT Schedule 70 2011 Annual Industry Partner Meeting

1. IT Schedule 702011 Annual Industry Partner Meeting May 9, 2011 Hilton San Diego Bayfront

2. Welcome

3. Purpose • Provide a brief update of IT Schedule 70 and new initiatives • Enhance communication between Industry and IT Schedule 70 leadership • Address your questions or concerns clearly and concisely

4. Agenda

5. Mary Davie, Assistant Commissioner for Integrated Technology Services

6. IT Schedule 70 Providing Pathways to Success Patricia Waddell, Deputy Director, Center for IT Schedule Business Programs Angela Jones, Director, Center for IT Schedule Business Programs, IT Market Development Division Damon McClure, Deputy Director, Center for IT Schedule Operations

7. What’s New • A New ITS Assistant Commissioner • New leadership team • Program: • Director, IT Market Development Division • Branch Chief, Program Analysis Branch • Operations: • Director, IT Schedule Contract Operations Division I • Director, IT Schedule Contract Operations Division II • Enhanced assistance efforts • IT Schedule 70 Helpline • New Vendors • Aggressive outreach efforts

8. Administrator’s Strategic Goals • Innovation • Customer Intimacy • Operational Excellence

9. Administrator’s Strategic Goals • Innovation • 25 Point Implementation Plan to Reform Federal Information Technology • Data Center Availability (#2) • Infrastructure-as-a-Service (IaaS) (#4) • Software-as-a-Service (SaaS) (#5) • Sustainability • Future COMSATCOM Services Acquisition (FCSA)

10. Administrator’s Strategic Goals • Customer Intimacy

11. Administrator’s Strategic Goals • Customer Intimacy

12. Administrator’s Strategic Goals • Operational Excellence

13. Administrator’s Strategic Goals • Operational Excellence

14. How to Market Your Business Shaunta Johnson, Director, Office of Small Business Utilization

15. Who uses GSA Schedules? • Executive & Other Federal Agencies • Mixed-Ownership Government Corporations (FDIC, Federal Home Loan Banks, etc.) • The District of Columbia • Cost Reimbursable Government Contractors authorized in writing by a Federal agency (48 CFR 51.1) • State and Local Government (Cooperative Purchasing) • Domestic and Worldwide

16. Prerequisites for Marketing: • Define your Niche • Conduct Market Research – You can not market successfully with out conducting market research • Learn the Rules – FAR • Narrow your focus • Create a Business Plan for federal contracting

17. Market Research • Who are my customers – All government agencies and other authorized users can order from the GSA Schedule but “All agencies” is not a focus • Focus on one or two agencies to start your market research

18. Who buys want I/we sell? • Consider the following resources to conduct market research. • IT Dashboard • http://it.usaspending.gov • Federal Business Opportunities • http://www.fedbizopps.gov • Federal Procurement Data System • https://www.fpds.gov • Acquisition Central • http://www.acquisition.gov/

19. Questions for your Marketing Plan • Who are we? What are our business strengths? Weaknesses? • Where do we want to go? • What is attainable now? • What/Who will help me meet my goals? • What is my budget for exploring? • What is the final outcome?

20. How agencies make purchases • Solicitation Procedures • Simplified Acquisitions – FAR 13 • Small Business Set-asides – FAR 19, FAR 6 • Sealed bids – FAR 14 • Negotiated Proposals – FAR -12,13, & 15 • Full and Open Competition – FAR 6 • GSA Schedule –FAR 8.404 • The Federal Acquisition Regulation (FAR) provides guidance for all these acquisition methods

21. How agencies make purchases • GSA Schedules • Often the preferred method • FY 2010 GSA Multiple Award Schedule IT 70 sales reached over $16 Billion • *Total FY 2010 Schedule Sales – $38 Billion – IT 70 received 42% of all schedules sales

22. How does GSA- NCR utilize Schedule 70? • Sales: • e-Buy • GSA Advantage!® • GSA IT – Solutions Shop*** - registration is a must if you want to respond to FAS – Assisted Acquisition Services opportunities

24. Locating Buyers • http://www.fbo.gov – Advanced Search • Pre-solicitation, Sources Sought, Solicitation/Synopsis • Agency Forecast of Contracting Opportunities • Legislation, GAO Reports, OIG Reports • News reports- Federal Times, WSJ, local publications

25. Know your customers purchasing practice • Research/Customer Base • Current • Potential • Industry Outreach events • Cost/Discounts • Budget • Success • Use Fedbizopps and eBuy to research what current needs request for RFI/Sources Sought, recent contracts awards • Use acquisition.gov/procurementforecasts/ to view potential opportunities

26. Market Research - Federal Business Opportunities Search for opportunities, set-asides, sole source, pre-solicitations, and Special notices

27. Seek/Create Federal Opportunities • www.gsa.gov/sbu - • Forecast (Updated) • NAICS Code • Title • State • Cold Calling • Authority to Purchase • Contact Information • Quarterly/Biannual Updates • Emails as follow-up only • Conference Attendance • Set Goals • Anticipate potential partners – not just buyers • Determine Needs • Network, Network, Network • Acquisition.gov • Portal to view all agencies • Forecast Opportunities • View agencies web sites and Small Business web pages

28. Utilizing Federal Points of Contact Effectively • Consider different mailing list • General – Any and everybody • Potential – High Probability • Direct – responsive/sure thing • Contact Steps • OSDBU for meeting request • Phone Call (discuss a real opportunity) • Follow-up • Update Annually • Points of Contact (POC’s) • Numbers • Address • General or Direct List • CCR Profile • Pricing • GSA Data Sites • e-library • GSA Advantage!

29. All agencies

31. Company Introduction • Capability Statement: Who, What, Where (about the company) • (avoid starting your Introductions – We are a Small Business. Talk about what your company does well) • Phone Call: Who, When, How Much (potential customer) • Follow –Up: Card, Email, Letter (quarterly update) GOAL: Visibility, Familiarity, Integrity, Trust, Confidence

32. Opportunities: Fedbizopps, eBuy, GSA Advantage or ITSS • Decide and Notify • Yes I will be participating • No, I will not • Respond in order • Not clear, then ask questions • Respond to all parts • Follow Directions • Describe your process and unique values • Spell Check and Grammar Check • Be Neat • Group Review before submission

33. Additional Support Resources • Eleven Regional GSA OSBU • www.gsa.gov/smallbizsupport • OSDBU for all agencies • www.osdbu.gov • Procurement Technical Assistance Centers • www.aptac-us.org • Customer Service Directors • www.gsa.gov/CSD

34. Utilize All Marketing Tools • www.gsa.gov/logo • Use images on GSA Advantage! ® • Attend large conferences like the GSA EXPO • http://www.expo.gsa.gov • http://www.gsa.gov/events • Attend outreach sessions designed just for small business - Access to Success (East coast), Opening Doors (West coast) • Come prepared to ask questions and get contact information • Invest in FedBizOpps

35. Know Your GSA Schedule Contract Terms • Warranty • Delivery • Discounts • Authorized Dealers • Quantity Discounts • Service Agreements • Expiration Date • Option Year Requirements Give copies to your Business Development team!!!

36. General Services Administration Office of Small Business Utilization http://www.gsa.gov/sbu Shaunta Johnson Director, Small Business Utilization National Capital Region (DC, MD, and VA) 202-708-5804 Shaunta.johnson@gsa.gov

37. Questions

38. 1105 Media Group Market Update Anne Armstrong, President of 1105 Government Information Group

39. An Update on the Government Market GSA Schedule 70 Holders May 9, 2011

40. “Follow the Money” Deep Throat

41. Fortune 1 • The US government spends more on products and services than any other enterprise in the country • It has historically been a steady and reliable market to sell into • Only 3 times in the last 35 years has Congress passed all the appropriations bills by the start of the new budget year • In our current Fiscal Year, government spending, the deficit and the debt ceiling have become polarizing political issues • 7 continuing resolutions (CRs) kept the government open • On April 15, the President signed into law funding for the Department of Defense and a “Full Year Continuing Appropriations Act.” • The battleground has now moved to shaping the budget for FY 2012 • How will this debate influence our market?

42. The budget for the rest of FY2011 • Lots of concern about funding , but Input believes IT is not taking devastating cuts • Input estimated federal IT spending to commercial contractors –now some $86 billion--will grow about 5 percent annually. Fed Sources sees it as flat. • Is it an appropriations bill or a full year continuing resolution? Unfortunately, it’s both. Line by line analysis required. • Cuts that were in the President’s Budget Request for FY12 have been moved up to current year • State and local spending in Q1 on Schedule 70 is up nearly 4% to a total of $145 million • Input says “Consumption of IT goods and services via GSA Schedule 70 is growing nearly twice as fast the total state and local market…”

43. Government IT A reliable and steady market 4.0% CAGR over the five year period Source: INPUT

44. Only once since 1994 has actual IT spending been less than a president’s IT budget request. Federal IT Budget Requests vs. Actual *Enacted **Assumes 103% of FY11 request. Source: OMB, INPUT FY10 figures are OMB estimates. 44

46. Government IT Buying Process:Government Buys All Year Long Percent of respondents typically engaged in each buying activity during the quarter Submit budget for approval Define programs Set budgets Acquire/purchase Evaluate products, vendors and solutions 4a. We want to gain insight into the timing of government IT buying decisions. Please indicate in which quarters you or your organization are typically engaged in the following activities. Select all quarters relevant for each activity. (N=1,054; 1,037; 1,034; 1,070; 1,070) Source: 2010 Buying Study

47. What the Budget Battle means for tech • The requirement to do more with less is forcing agencies to consider adopting new approaches that government would be slow to consider in better financial times • US Government is moving away from asset ownership to service provisioning • Money will be spent to save money, not to maintain legacy systems • Underperforming systems will be terminated or restructured into smaller, modular pieces with faster delivery dates

48. Highlights from the 25 point plan • Turnaround or terminate at least one-third of underperforming projects in IT portfolio within the next 18 months • Shift to “Cloud First” policy. Each agency will identify three “must move” services within three months, and 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 2015 • Only approve funding of major IT programs that: • Have a dedicated program manager and a fully staffed integrated program team • Use a modular approach with usable functionality delivered every six months • Use specialized IT acquisition professionals

49. Where will the money be spent? • Data Center Consolidation—from more than 2,100 to 1,300 by 2015. At least 800 data centers to be closed. task force to push moves online marketplace for data center availability • Cloud—each agency must identify 3 “must move” services and create a plan for moving them to cloud and retiring legacy systems within 12 to 18 months. • Infrastructure as a service • Cloud-based email services • Shared services • Green IT—locate data centers where costs are less and design for reduced cooling requirements • Telework—bill passed last fall