# Presentation: 668180

## SmartBUY: Government-wide Software ProcurementIT Quarterly ForumIT Infrastructure Line of BusinessJune 5, 2008

**Fred Schobert – Integrated Technology Services CTO****General Services Administration**

- See notes pages for accessible information

## SmartBUY Program Background

**SmartBUY leverages the Federal government's software purchasing power**
**SmartBUY is part of the President’s Management Agenda**

*SmartBUY Program Background*

**Notes:**
SmartBUY - Federal government-wide enterprise software licensing procurement program, launched in coordination with OMB:
SmartBUY is actually an acronym—Software Managed and Acquired on the Right Terms
The program provides reduced prices and best obtainable terms/conditions for COTS products and services.
Eliminates need for duplicative customer acquisition efforts, allowing agencies to focus on core missions.

## SmartBUY Governance Model

**SmartBUY Governance Board**

- Office of E-Government & IT

**Office of Management and Budget**

- Office of Federal Procurement Policy

- CAO Council*Vice-Chair*

- CIO Council*Vice-Chair*

- GSA ITS Assistant Comm.

- OMB E-Gov & IT Administrator*Chair*

**Federal Agencies**

*SmartBUY Governance Model*

**COTS Software Vendors**

**SmartBUY Program Management Office**

_***POLICY***_

_***GOVERNANCE***_

_***OPERATIONS***_

- _Analytical Support_
*Contractor (2)*

- _Project Managers_*On-Board (6)*

- _Contracting Officers_*On-Board (2)*

- Senior Program Manager

**Notes:**
Framework for SmartBUY Model
 Policy Guidance from OMB
 Governance from Inter-Agency IT Leadership (representatives from DoD, GSA, OMB, Education).  The Board prioritizes market category pursuits and approves business cases.
 Tactical Operations from the SmartBUY Program Management Office (PMO)

The SmartBUY PMO interfaces with specialty task groups for the purpose of enhancing offerings.  SmartBUY is working with several lines of business  to clearly define software requirements (e.g., ITILOB for automated tools).

Governance Board Members:
Karen Evans - OMB Administrator of E-Government and Information Technology
David Wennergren - DoD Deputy CIO / CIO Council Vice-Chair
Glenn Perry - Education CAO / CAO Council Vice-Chair
John Johnson - GSA Integrated Technology Services, Assistant Commissioner

## SmartBUY Business Model

**Work with Federal agencies to understand software requirements**
**Improve the configuration management, security, and standards of Federal computers**
**Help the Federal government better manage commercial software and IT resources**
**Complement the Schedule 70 program by targeting large-scale software purchases**
**Enhance our view into agency software asset management**

*SmartBUY Business Model*

**Notes:**
The SmartBUY program seeks to accomplish the following through enterprise-wide BPAs:
Provide all Federal agencies the best obtainable terms and conditions (e.g., price, security, configuration management, etc.) for enterprise level software.
Work with Federal agencies to understand software requirements at the enterprise level so the Federal government can act as one customer to its best ability.
Reduce the broad mosaic of different software versions installed to improve configuration management, security, and standards of Federal computers.
Help the Federal government become a wiser consumer and better manager of commercial software and IT resources, which ultimately saves taxpayer dollars.
Complement the Schedule 70 program by targeting large-scale software purchases, while adhering to the guidelines of the Schedules contracts.

## SmartBUY Software Market Categories

**Information Assurance**
**Database Management**
**Enterprise Backup/Recovery**
**Enterprise Content Mgt.**
**Enterprise Resource Planning**

**Geospatial Information Systems**
**Network Management**
**Office Automation**
**Open Source**
**Business Intelligence**

**SmartBUY Software Market Categories**

***SmartBUY promotes effective enterprise level software management.  By leveraging the government's immense buying power, SmartBUY can potentially save taxpayers millions of dollars via government-wide aggregate purchase of Commercial off-the-shelf (COTS) software products and services.***** **

*SmartBUY COTS Market Categories*

**Notes:**
OMB tasked SmartBUY to explore software agreements in 10 different market categories.

## SmartBUY Program Offerings

***Twenty seven SmartBUY BPAs are currently in place representing twenty two Software Publishers.  Each BPA is placed against an IT Schedule 70 contract.  Achieved FY 2007 cost savings of over $133M for Federal customers.  Twenty of the BPAs are held by Small Businesses.***

**Notes:**
SmartBUY currently has 27 agreements in place representing 22 unique software publishers.

Of the 27 agreements, 20 are with small businesses.

The agreements fall into 7 of the 10 market categories established by OMB.

## GSA Schedule 70 / SmartBUY Relationship

**GSA Schedule 70**

**Broad Selection of Software Applications**
**Selection Flexibility**
**Ease of Use**
**Standard Terms & Conditions**

**SmartBUY**

**Strategic Sourcing Methodology**
**Targeted Software Competitions**
**Partners Selected Based on Government Footprint**
**Aggregate Buy Savings**

***SmartBUY uses Terms & Conditions established by GSA Schedule 70 baseline contracts.  SmartBUY BPAs are awarded via competitions amongst GSA Schedule 70 contract holders identified as leading publishers/resellers within a Software Market Category.***

**Notes:**
SmartBUY generates revenue for GSA from sales through the IT Schedule 70 program.

## DoD-ESI / SmartBUY Partnership

**The DoD-ESI 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**
**DoD-ESI implements the GSA SmartBUY Program within the Department of Defense**
**ESI Home Page:  **_[http://www.esi.mil](http://www.esi.mil/)__	_

*DoD-ESI / SmartBUY Partnership*

**Notes:**
The ESI is the software enterprise management process within DoD.

The DoD-ESI identifies, consolidates, and presents broad-based commercial IT requirements to commercial IT vendors, via a single negotiating position.

In this way, favorable pricing, terms and conditions are made available to the DoD-ESI customer base (DoD Components, IC, NATO, U.S. Coast Guard, authorized Defense Contractors)

## Establishing SmartBUY Vendor Partnerships

***To work effectively, SmartBUY takes the time to understand a software vendor's business and provides education regarding the government-wide BPA process.***

**SmartBUY BPA Criteria for Software Publishers/Resellers:**
**Vendors possess a strong existing federal government presence, and show sufficient future demand for their products. **
**Products are available under a current GSA Schedule 70 contract. **
**Vendors agree to SmartBUY standard terms and conditions. **
**Products must meet requisite compliance standards, including Section 508 of the Rehabilitation Act and various NIST requirements.**
**The SmartBUY PMO creates business cases to justify the cost of awarding and maintaining enterprise agreements.**

## Our experience has shown that Software Publishers and their Reseller partners have multiple objectives:

Increase Federal Market Share
Create More Predictable Revenue Streams
Bundle Products for Total Solutions
Enhance Software Offerings with Professional Services 
Lower the Cost of Sales to Government
Increase Satisfaction of Existing Customer Base   
Other Unique Objectives

**Increase Federal Market Share**
**Create More Predictable Revenue Streams**
**Bundle Products for Total Solutions**
**Enhance Software Offerings with Professional Services **
**Lower the Cost of Sales to Government**
**Increase Satisfaction of Existing Customer Base   **
**Other Unique Objectives**

*Software Publisher Key Success Factors*

**Notes:**
The SmartBUY PMO establishes bilateral agreements with Software publishers and/or resellers.  Vendor motives vary according to their individual business models.  The agreements must be mutually beneficial.  

## Creating SmartBUY Agreements

***The average cycle time for a SmartBUY acquisition is six months.  Of critical importance is that requirements are comprehensive and well vetted to ensure quality products, while also decreasing the potential of contractual protests.***

**Identify Software Function / Map to SmartBUY Market Category**
**Define Requirements**
**Prepare Acquisition Plan**
**Prepare and Issue Solicitation via E-Buy**
**Evaluate Quotations**
**Seek Improved Prices via Negotiation with Compliant Offerors**
**Conduct Internal Administrative and Legal Reviews**
**Effect Bilateral Award**

## FAR Case Status

**The date for publishing the Final draft is pending.**
**Clause will ensure all agencies purchasing commercial software include SmartBUY in their acquisition process.**
**The SmartBUY clause will reside in FAR Part 39.**

*FAR Case Status*

**Notes:**
FYI – A FAR case is in process to add a SmartBUY FAR Clause that will ensure that agencies include SmartBUY offerings in their evaluation process when acquiring COTS products and services.

## How to Use SmartBUY BPAs

**SmartBUY Website: **_[http://](http://www.gsa.gov/smartbuy)__[www.gsa.gov/smartbuy](http://www.gsa.gov/smartbuy)_
**Decentralized Ordering Process**
**Standard Multiple Award Schedule (MAS) BPA Procedures**
**Spot Discounting Encouraged**
**Multiple Payment Options**

**Notes:**
Ordering via SmartBUY BPAs is decentralized. Orders are prepared by a Government Ordering Officer, in accordance with the terms and conditions of this BPA and the GSA Schedule.

SmartBUY agreements are GSA Multiple Award Schedule BPAs. Use standard MAS BPA procedures including contacting the Industry Partner, asking for spot discounts, accepting and paying the Industry Partners invoice, etc.

Orders may be placed against SmartBUY BPAs via EDI, credit card, facsimile, on an authorized form such as a Standard Form SF 1449, GSA Form 300, or Department of Defense DD Form 1155. 

## SmartBUY Pros/Cons

| Pros | Cons |
| --- | --- |
| Best Obtainable Terms and Conditions
Cost Savings
Consumer Flexibility
Greater Standardization
Strategic Sourcing Framework
 | Market Categories without Product Offerings
Few Niche Products
Vendor Participation is Voluntary
Lack of Upfront Funding
 |

**Notes:**
Pros
SmartBUY leverages the purchasing power of the government to achieve savings and more favorable terms and conditions.
SmartBUY recognizes that “no one size fits all” and seeks to achieve the best agreement between agencies and the software publisher.
SmartBUY does not dictate an agency’s choice of software.
Reduce the broad mosaic of different software versions installed to improve configuration management, security, and standards of Federal computers.

Cons
Currently no product offerings for three market categories: Enterprise Backup/Recovery, Open Source, and Business Intelligence
Publishers lacking significant Federal market share are not pursued by SmartBUY
Vendors may not choose to engage with SmartBUY for undisclosed reasons (e.g., Microsoft)
SmartBUY does not have upfront funding to entice vendors to enter into agreements.  Vendor risk would be mitigated by such a fund, since the mere establishment of a SmartBUY agreement does not guarantee sales.

## Adrian Fish – Project Manager / ITILOB Liaison
	Adrian.Fish@gsa.gov

*	**Adrian.Fish@gsa.gov*

*SmartBUY Points of Contact*

**Website: **_[http://](http://gsa.gov/smartbuy)__[gsa.gov/smartbuy](http://gsa.gov/smartbuy)_
**E-mail: SmartBUY@gsa.gov**

**Notes:**
ITILOB Status
Sampled Departments of Commerce, Justice, Interior, and Treasury to identify the fifty most commonly used automated tools.
Compare product sample set to current SmartBUY offerings.
If a SmartBUY solution exists, perform cost analyses for LoB’s Executive Steering Committee (ESC) to illustrate potential acquisition savings.
If a SmartBUY product offering void exists:
Include ESC-identified Subject Matter Experts to participate in SmartBUY Requirements Definition phase.
Develop Acquisition Plans for targeted Commercial off-the-shelf (COTS) products.
Solicit and Award SmartBUY BPAs.
Currently evaluating Helpdesk COTS products.