GSA closes in on enterprisewide software deal with Microsoft
Dec 13, 2024
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Federal procurement is undergoing a transformation, with a focus on effective software licensing to overcome past challenges. A notable government-wide deal with Microsoft is on the horizon, promising significant improvements. Spending on IT contracts is rising sharply, now exceeding $42 billion, reflecting a shift toward service-based acquisitions. Additionally, the Transactional Data Reporting initiative aims to boost data quality and participation among small businesses, while insights on leadership highlight the value of authenticity and team welfare.
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Quick takeaways
The GSA is nearing a significant government-wide software deal with Microsoft, aiming to streamline procurement through enterprise-wide licenses.
Increased IT contract spending in FY 2024 reflects federal agencies' growing reliance on established procurement vehicles, emphasizing improved cloud acquisition processes.
Deep dives
Government-Wide Software Licensing Initiative
A significant development in federal software procurement is the General Services Administration's (GSA) progress towards finalizing a government-wide deal with Microsoft. This initiative, part of the Better Contracting Initiative, aims to create enterprise-wide software licenses that have historically posed challenges for federal agencies. By analyzing contract vehicles across various agencies and incorporating best practices, GSA has prepared to negotiate terms with the original equipment manufacturer (OEM) effectively. This collaborative effort reflects a shift towards category management, aiming to streamline the federal government's purchasing capabilities as a unified entity.
Growth in IT Contract Spending
Fiscal Year 2024 saw a remarkable increase in IT contract spending across the government, totaling over $42 billion, which represents a 10% rise from the previous year. The multiple award schedules, crucial in this growth, accounted for $27.2 billion of that total, marking a 16% increase. Notably, the Alliant 2 and Starz 3 contracts showcased impressive growth, particularly benefiting small business resellers. This upward trend highlights the growing trust and reliance that federal agencies have on established contract vehicles for procuring IT services and products.
Innovations in Cloud Acquisition and Data Reporting
The GSA is actively working to improve the cloud acquisition process to provide a better customer experience for government agencies. Feedback from agencies indicated that challenges existed in acquiring cloud services, prompting the GSA to standardize cloud offerings for better comparability. Additionally, the agency is expanding its transactional data reporting (TDR) to enhance data quality across various services and educate contractors on procurement challenges. This approach has already led to successful outcomes, such as increasing small business participation and decreasing instances of zero bids on requests for quotations.
The Office of Federal Procurement Policy launched its better contracting initiative more than a year ago. Leaders promised this time would be different when it came to developing enterprise wide software licenses, a long time bugaboo for federal agencies. Well, guess what? The General Services Administration is about to deliver on that promise. GSA says its IT vendor management office is close to finalizing a government wide deal with Microsoft. For details, Federal. Executive Editor Jason Miller, caught up with GSA Assistant Commissioner IT category, Laura Stanton.