Vendor agreements could slash federal wireless bills 25 percent or more
The GSA awarded the first Federal Strategic Sourcing Initiative Telecommunications Expense Management contracts to SYS LLC and Booz Allen Hamilton of McLean, Va., and Avalon Technologies of Arlington, Va. According to the agency, contract terms are two years, with three one-year options. Estimated value of the contracts is $93 million.
According to the GSA, the Federal Strategic Sourcing Initiative for wireless was set up so participating agencies could work together to achieve a set of common goals, including:
- Obtain best price and performance.
- Obtain total cost savings (target is 20 percent below baseline).
- Increase socioeconomic participation.
- Obtain accurate wireless spend/inventory data.
- Establish best practices in the areas of inventory, provisioning, management reporting, operations and technology refreshment.
The participating Federal Strategic Sourcing Initiative agencies collectively constitute an estimated $123 million in annual wireless spend, totaling nearly 220,000 lines. There were 13 agencies represented on the team.
According to the GSA, the Federal Strategic Sourcing Initiative Telecommunications Expense Management contracts will streamline the ordering and management of wireless devices and services for federal agencies, and ultimately lower the total cost of commercial wireless services. Specifically, the GSA said, the contracts will:
- Improve accuracy of wireless inventory and expenses.
- Improve asset management.
- Reduce monthly wireless bills, through optimized rate plans, to lower the effective per-minute price.
- Provide more accurate billing to ensure agencies are paying the proper amounts.
- Eliminate unused lines so agencies pay only for what is used.
- Improve compliance to rate plans and related wireless expense management policies.
- Manage conflict resolution and bill-related issues.
- Be a single source for ordering wireless devices and services.
- Save an estimated 25 to 40 percent, on average, over current wireless expenditures.
The GSA and the Department of the Treasury co-chair the governmentwide Federal Strategic Sourcing Initiative, created by the Office of Management and Budget in 2005. More than 50 military and civilian agencies participate in the initiative. The Telecommunications Expense Management services contracts follow the initiative’s procurement policies established for office supplies and domestic delivery services.
“Cross-government collaboration was instrumental in our collective success to award these contracts,” said Federal Acquisition Service Commissioner James Williams. “This demonstrates that we can efficiently aggregate requirements, streamline processes and leverage the government’s buying power.”
Added GSA Administrator Lurita Doan: “As the federal government’s chief procurement agency, GSA was very excited to work with federal agencies to develop and award the first strategic sourcing contracts for federal wireless management services.”