The General Services Administration (GSA) has requested industry feedback in regards for creating a Cloud Computing Services Special Item Number (SIN) to merge and streamline the way that cloud computing is offered on the GSA IT Schedule 70 contract.
The goal of this change is to improve and make more efficient methods for the GSA to offer cloud computing services to federal agencies. The GSA is striving to advertise and market the growing cloud computing services industry to their customer agencies. This is a great opportunity for vendors in this industry to differentiate their product and service lines from the traditional IT SINs. The GSA’s request for information says, “This effort would support the OMB ‘Cloud First’ policy by enabling agencies to take full advantage of cloud computing benefits to maximize capacity utilization, improve IT flexibility and responsiveness, and minimize cost.”
Cloud computing services are currently being offered under the GSA IT Schedule 70, but under several different SINs. This new proposal will allow these cloud computing services to have their own unique SIN, which will increase efficiency both for the vendors selling the services and for the government agencies looking to purchase the services. The GSA has come to the conclusion that the technology of cloud computing has become mature enough and that it is necessary that it has its own SIN. For more information and to give the GSA feedback, view the RFI on FedBizOpps.
Responses are being accepted until August 6, 2014.
For those of you in the telecommunications industry, this article points to some of the successes GSA is seeing with its Networx Contract vehicle which is designed to bring state of the art network solutions to Federal agencies. As noted in this article, despite there being a 800 percent increase in government use of telecom and network services, the total cost for such services has only increased by 43 percent.
The GSA is now claiming that they are saving $678 million in telecommunication services in FY2013 due to the Networx Contract vehicles. Along with that, the federal government recently purchased $1.3 billion in services from various vendors. However, it was confirmed by Networx’s program manager, Bill Lewis, that consolidating all these vendors and combining their buying power allowed for 35% savings in their services, which is enormous due to the amount of the money spent through Networx Contract vehicles.
Networx Vehicles Information
- Contract offering telecommunication services ranging from domestic to international access to network services for all federal serives.
- Networx contracts involve several popular vendors such as AT&T, Century Link Inc, Sprint, and Verizon.
- Designed to bring the leading network services to all federal agencies.
- Vendor determined based on price, past performance, and technical requirements for specific agency needs.
Read more about the benefits of the Networx contract in this blog post.
This past march, the United States Government cut approximately $85.4 billion from the US budget. These cuts started a movement of sequestration, and were part of austerity measures put in place to help combat the increasing budget deficit faced by the Sequestration. These decreases impacted government programs and services across the board. Spending cuts were evenly split between defense and non-defense programs.
Sequestration Budget Buster
Due to the decreases in budget, government agencies are going to be more frugal than ever in choosing who to do business with. As a result, the government marketplace is becoming hypercompetitive and increasingly harder for companies to stand out in.