Networx Data Shapes our Understanding of Telecommunications

Big data is being used to help transform government by revealing information and patterns that can bring innovation, better services, and smarter decisions.

To effectively use big data, we must be willing to collect, analyze, and share the information we discover. You already know about some of the ways we’re helping the government buy smarter through big data: GWAC Prices Paid Tool, horizontal and vertical pricing in Schedule 70, and Reverse Auction pricing data.

Here is something you may not have heard a lot about: GSA’s major telecommunications program, Networx, collects data about what federal agencies are purchasing and how much they are paying. Because most federal agencies make network services purchases through the Networx program, these “big data” details from Networx provide a good picture of the federal networking and telecommunications market — and we’re happy to share it.

We’ve just completed an analysis of the first half of fiscal year 2014. And, it’s a good time to look at how federal agencies are using the Networx contracts and the trends we’re seeing in telecommunications buying.

In total, more than 136 federal agencies use Networx. Federal agencies have purchased $762 million in network and telecommunications services off the Networx contract through the second quarter of FY 2014. During the same period last year, federal agencies purchased $630 million through Networx. After accounting for FY 2013 purchases through now expired legacy contracts, this represents a year-over-year increase of 12.8% on the Networx contracts. The projected yearly increase we’re seeing is an indicator that agencies are utilizing Networx more often than ever to solve their network services solutions.

Read the rest of my blog for Networx buying trends, purchase increases/decreases by service from FY 13 to FY 14, and savings compared to commercial pricing.