IT Software: Cost Savings in Enterprise Licenses Agreements, Strategic IT Resourcing

This blog post is part of a seven-part series reviewing the Acquisition Gateway and IT Category data, trends, expertise, and advocacy that GSA’s ​Office of Information Technology Category (ITC) organization offers to support other agencies’ missions.

(Note: This is a guest blog post by John Radziszewski, Director, Office of IT Products within ITC in GSA’s Federal Acquisition Service (FAS). In this capacity, he oversees GSA’s IT Hardware and Software Subcategories.

GSA’s IT Software Subcategory team is implementing government-wide strategies and initiatives that will reduce costly duplication of enterprise software agreements, improve pricing, and better leverage the government’s buying power. This is being accomplished by enhancing current IT Schedule 70 contracts such as: Environmental Systems Research Institute’s (Esri) geospatial software, Carahsoft’s Adobe’s data-centric security and electronic signature solutions, and Carahsoft’s Hewlett Packard Enterprise (HPE) software. These enhancements give government users what they need, when they need it, and at the lowest cost.

The federal government spends at least $6 billion annually on commercial software through more than 50,000 individual contracting actions — not an optimal way to buy. This way of procuring commercial software licenses usually results in duplicate IT investments across agencies, causing disjointed pricing indexes, terms, and conditions, and increasing the complexity of licenses management.

To tackle this issue, the Enterprise Software Category Team (ESCT) is enhancing new Enterprise Licenses Agreements (ELAs) to reduce duplication of enterprise software agreements, improve pricing, and better leverage the government’s buying power.

Leveraging Government’s Buying Power through ELAs

Through smart government-wide mandates, GSA is currently enhancing ELAs on IT Schedule 70 to better meet government needs, while at the same time reducing duplication of enterprise software licenses, improving cost savings, and optimizing the government’s procurement capabilities. This allows agencies to redirect funding to other mission priorities.

In January 2016, we’ve already enhanced the following government-wide enterprise software license agreements:

GSA‑​Carahsoft’s HPE — The enhanced software agreement with Carahsoft for HPE IT management solutions could result in discounts of up to 39 percent over commercial pricing for government agencies and a potential savings up $50 million over five years for taxpayers.

GSA‑Carahsoft’s Adobe — Again working with Carahsoft, on their Adobe’s data-centric security and electronic signature solutions, it will result in potential savings of $350 million.

GSA‑Esri geospatial software — We agreed to modify Esri’s IT Schedule 70 terms and conditions for geospatial software ELAs. It will result to at least an additional 3% in savings for agencies.

Today, agencies with existing Carahsoft’s HPE/Adobe and Esri software can now take advantage of immediate savings by switching to these ELAs by processing a simple modification. Agencies who make the switch can receive additional savings on ELA prices.

A Look Ahead: Software License Management Service (SLMS)

Working with several agencies, GSA developed a Software License Management Service (SLMS) that can generate significant cost savings by:

• cutting unnecessary software license spending,
• implementing controls on the software license management lifecycle, and
• improving an agency’s cybersecurity posture by tracking and monitoring vulnerabilities.

SLMS uses subject-matter experts to engage agencies with one goal in mind: saving the government (and taxpayers!) money on software licensing. The program is the foundation for successfully managing software. It employs a phased approach to assess agency maturity relevant to IT Asset Management (ITAM), while establishing plans for implementing improvements.

To date, GSA has successfully launched SLMS pilots at three agencies:

• For GSA, our focus has been on deploying a cutting-edge software asset management toolset, targeting a quick ‘Return On Investment’ on software buys. This is achieved by capturing, controlling, and evaluating GSA’s current software inventory and procurement data, and finding areas for demand management.
• At the Office of Personnel Management (OPM), the SLMS team is conducting a current-state gap analysis based on an ITAM maturity model. The outcomes will be a detailed analysis of program performance and a future roadmap for organizational maturity.
• For the Nuclear Regulatory Commission (NRC), we helped develop a full suite of ITAM governance, processes, procedures, and policies.

We are ready to expand the pilot to other agencies as well. If your agency is interested in an approach to software asset management, please contact our team ([email protected]). We are here to help you capture real cost savings, enhance cybersecurity, and comply with federal mandates.

To learn more and to access best practices and contract information, please visit the Software Hallway on the Acquisition Gateway.

Also follow us on Twitter @GSA_ITC and LinkedIn to join our ongoing conversations about government IT.