16
SEWP IV Custom Report Customer Service Fuels Growth, s3 Contractors Follow Customers to SEWP, s8 Agency Buyers Offer New Ideas, s10 “GWACs Are Not MACs”, s12 Contractors Aim for High Performance Ratings, s14 SEWP Contract Listing, s15 Online report sponsored by

Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

SEWP IVCustom Report

Customer Service Fuels Growth, s3

Contractors Follow Customers to SEWP, s8

Agency Buyers Offer New Ideas, s10

“GWACs Are Not MACs”, s12

Contractors Aim for High Performance Ratings, s14

SEWP Contract Listing, s15

Online report sponsored by

Page 2: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

©2010 CDW Government LLC

Your mission is our command. 800.767.4239 | CDWG.com/federal

When everyone is dependingon you, you can depend on us.You’ve got an entire country to serve. Limited resources. And the pressure

to further agency objectives in the face of it all. Under such constraints, you

don’t just need the right technology; you need the right technology partner.

When you work with CDW•G, you’re working with a whole lot more. Like a

dedicated account manager experienced in government IT and purchasing

requirements. System engineers and solution architects to find the right

solutions for the job. And thousands of technology products to help your

agency advance its objectives. With CDW•G, any agency mission is possible.

Page 3: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

SEWP IV’s customer service

spurs rapid growth

Joanne Woytek, program manager for theNASA Solutions for EnterprisewideProcurement (SEWP) IV governmentwide

acquisition contract (GWAC), says thatincreasing its revenue is not her goal.“We’re not trying to grow or be the biggestcontract vehicle, but to offer somethingthat people find useful,” Woytek said.

But as Woytek and her staff are discovering,being useful – that is, providing top-of-the-line information technology service toagencies that use SEWP IV to buy IT products and software – leads inevitably togrowth. SEWP IV has grown consistentlysince it began in May 2007, and the revenuegenerated through the program jumpedfrom $1.358 billion in fiscal 2008 to $1.875billion in 2009, an increase of nearly 40percent. The program is on pace to exceed$2 billion in 2010, according to Woytek.

“SEWP is absolutely a valuable asset tofederal agencies,” said Kevin Plexico, seniorvice president of research and analysis atInput. “Why would purchasing officialsfrom across government – who have achoice where they go – go to this vehicle ifthey didn’t view it as a valuable vehicle?”

SEWP IV is an indefinite-delivery, indefinite-quantity GWAC consisting of 38 competed prime contract holders,including 21 small businesses. All federalagencies can purchase a wide variety ofadvanced IT products and product-relatedservices, including hardware and software,maintenance, warranty, installation, andproduct training, at fixed prices throughSEWP IV. Although the contract is not aservices contract, agencies can purchase theservices they need to install products and

software, as long the services do not exceed 10 percent of theoverall contract price. About 70 agencies and 10,000 peopleare using SEWP IV, according to Woytek.

SEWP IV also has a contract ceiling of $5.6 billion for eachof the 38 contract holders,so there is no danger thatthe ceiling will be breached.The contract is expected togenerate $10 billion to $14billion in sales over sevenyears, according to SEWPIV officials.

“The key to our success isthat we are not a contract.Rather, we are a programthat supports a contract,”Woytek said. “We try tomake sure that every pieceof the program – products,tools, outreach and servicedelivery – fits together.”

The SEWP Advantage

Several key factors explainSEWP’s popularity amongagency procurement officials,according to governmentand industry officials. Amajor attraction is SEWPIV’s low fee of 0.5 percent,which is calculated againstthe order price. In addition,all fees are capped at $10,000per order. The self-funding

program uses these fees to pay for the 38 program managersand staff and other overhead expenses necessary to run theSEWP IV program.

When SEWP I was launched 17 years ago, the programcharged customers 2.6 percent to use the vehicle. But SEWP’sgrowth has enabled the program to reduce its fee steadily overthe years while also expanding customer services. Because ofthe cap, the actual fee percentage charged to customers in2009 was 0.42 percent, according to the SEWP IV website.

“NASA doesn’t give us any money and we don’t give anymoney back to NASA. So we’re not trying to make a profit,”

s3

Custom Report

Sales to top $2 billion in fiscal 2010

“The key to our successis that we are not acontract. Rather, weare a program thatsupports a contract.We try to make surethat every piece of theprogram – products,tools, outreach andservice delivery – fitstogether.”

Joanne Woytek, SEWP IVprogram manager

SEWP IV NumbersTotal Revenue: $4,698,838,680

Total Orders: 71,774

Average Order Size: $65,164.94Source: SEWP IV Program Office, June 2010

Page 4: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

s4

Custom Report

Woytek says.Another appeal is SEWP IV’s broad scope and ability to

add new products quickly. Customers do not search for whatthey need from the SEWP catalog. They search for productsand solutions from SEWP contract holders. If a contractorhas what the customer wants, the products and solutions arethen added to the catalog after SEWP officials review themto ensure they are within the contract’s scope and are beingoffered at a fair and reasonable price. Typically, it takes just aday to add a new product.

“It’s very easy to add manufacturers and products to thecontract,” said Chuck Spence, director of federal programs at

FedStore Corp., a SEWP IV contract holder. Spence said thecompany is constantly adding products to the contract. “Thewide scope allows us to put a wide variety of informationtechnology products on it, including services that are directlyrelated to the products. So, as manufacturers update theirofferings or if a customer needs certain things, we can getthem added very easily through product refreshment. It getsreviewed quickly and on contract, ready to sell.”

The SEWP IV catalog now includes 3,000 manufacturersand more than 2 million products. Five new manufacturersare added each week, Woytek said. “By constantly updatingthe catalog, we can provide our customers with the latesttechnologies,” she said.

Automated Processes, One-Day Service

The watchword at SEWP is “one business day.” Programofficials strive to add products, process orders, respond toinquiries and complete other tasks within one business day.“That’s our metric for everything we do,” Woytek said.

And the program typically meets this goal, contract holderssaid. “If you we send in an e-mail inquiry, you can expect ananswer within an hour or so,” said Andy Lausch, vice presidentof federal sales at CDW Government LLC, a SEWP IV contractor. “Challenges are resolved quickly.”

Officials are able to quickly review and approve ordersbecause their processes are highly automated, said Steve

Charles, co-founder of and executive vicepresident at immixGroup, another contractholder. Charles said SEWP IV officials havebeen able to automate processes such as“fair opportunity,” which requires that allcontract holders be given a fair opportunityto respond to requests for quotes, becausethe procedures are crystal clear. “You can’tautomate ambiguity,” he said. As a result,“hiccups in the system get resolved within24 hours.”

The fast turnaround got even faster inApril, when SEWP IV added a chat featurethat enables contractors and customers tocommunicate live with the SEWP programoffice via instant messaging. Three to fourcustomers already use the chat tool each

Small businesses thrive

under SEWP IVMany federal agencies use the Solutions for Enterprisewide

Procurement (SEWP) IV governmentwide acquisition

contract to help meet their small-business goals, say

program officials, who point to two important statistics

to make their case:

• 35 percent of SEWP IV spending goes through

SEWP’s small businesses.

• 6 percent of SEWP IV spending goes through SEWP’s

Service Disabled Veteran-Owned Small Businesses

(SDVOSB).

“These statistics show that our small businesses are

widely used by government,” said Marcus Fedeli, a

support contractor who serves as SEWP IV business

manager.

Joanne Woytek, SEWP IV program manager, also

regards the spending on veterans’ businesses to be

significant. “Most SDVOSBs provide [information

technology] services, so we are quite pleased with

how our SDVOSB resellers are doing,” she said.

Of the 38 SEWP IV contract holders 21 are small

businesses: six 8(a) small, disadvantaged businesses and

10 veteran-owned small businesses, including

seven owned by service-disabled veterans. SEWP IV has

set-aside authority for small businesses and SDVOSBs.

But SEWP IV’s pool of small businesses also includes

those owned by women or Alaska Natives and those

that are situated in historically underutilized business

zones. Agencies can hold competitions but then give

preference to these other subcategories in addition to

8(a) companies.

SEWP IV Sales

Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010

$667.2 million

$1.358 Billion

$1.875 Billion

$755 million

$2.0 Billion

$1.5 Billion

$1.0 Billion

$500 million

$0

Source: SEWP IV Program Office, May 2010

Page 5: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

EXPERIENCE THAT DELIVERS 7 TIMES MORE RELIABILITY THAN THE INDUSTRY AVERAGE.As a core manufacturer that has worked closely with customers in government and business for 17 years, Panasonic has a unique understanding of your needs. Many of our employees come from the military, law enforcement, re, EMS and other government positions, and they have rst hand experience with the challenges you face. Our goal is to provide you with the most reliable computing solution to enable you to meet those challenges head-on without worrying about downtime. Because we build our products from the ground up, we are able to maintain exceptional quality control. The result is a rugged, reliable product line powered by the Intel® Core™ i5 vPro™ Processor,* which has one of the lowest annualized in-warranty failure rates in the industry.1 So what’s next? We’ll keep walking in your shoes so we can continue to deliver the performance and reliability you have come to count on.

Learn more: 1.888.322.3908 / panasonic.com/toughbook/federal

IN MY WORLD, WE WALK A THOUSAND MILES IN OUR CUSTOMERS’ SHOES.

Windows®. Life without Walls™. Panasonic recommends Windows.

FOR A TOUGHWORLDTM

TOUGHBOOK

1 Compared to the in-warranty industry average as noted in available published reports. Results may vary depending on environment product is used in.

Intel, the Intel logo, Intel Core and Core Inside are trademarks of Intel Corporation in the U.S. and other countries. Toughbook notebook PCs are covered by a 3-year limited warranty, parts and labor. To view the full text of the warranty, log on to panasonic.com/business/toughbook/support.asp. Please consult your Panasonic representative prior to purchase. Panasonic is constantly enhancing product specifi cations and accessories. Specifi cations subject to change without notice. (*CF-C1A, **CF-31A, ***CF-52M, CF52P are Intel® Core™ i5 vPro™ Processor models) ©2010 Panasonic Corporation of North America. All rights reserved. CustomerShoes_FG_FY10-3

Toughbook U1 Toughbook C1* Toughbook H1 Field Toughbook 31** Toughbook 52***

PAN2797-3_FG_FCW_Jul12_P4CB.indd 1 6/29/10 9:06 AM

Page 6: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

s6

Custom Report

day. The program office is also using a commercial tool totrack questions so that it builds a knowledge base to providecomprehensive answers to frequently asked questions.

Interestingly, Woytek implemented a chat function forSEWP nearly 10 years ago but withdrew it because chat toolsat that time lacked the sophistication the program required.But she watched the developing technology and implementedthe current tool after her own experience and some additionalresearch showed that a chat tool could provide the level ofservice she demanded. Woytek said she is watching the newapplication closely. “It appears to be working even better thanwe hoped with regard to customer interaction and service,”she said.

SEWP IV’s automated services also include a Request forQuote tool that allows procurement officials to send their

requirements online. SEWP officials reviewthe returned quotes from contractors and,after approving them, send them to agencycustomers with documentation verifyingthat the order is within the contract’s scopeand properly priced and that contractorsreceived a fair opportunity to bid. TheSEWP program recently added credit cardordering to the tool.

After orders have been placed, the automatedtools assist with reporting, tracking andcommunication to ensure that customersobtain the products and solutions in a timelymanner and that problems are resolved withinone business day. Contractors’ performanceis also monitored by an online ProgramPerformance system with ratings in performance categories such as customersatisfaction and adherence to the contract.In addition, the SEWP IV program officepublishes the average delivery time for eachcontract holder. All of this information isavailable on the SEWP IV website. (Formore details on SEWP IV ProgramPerformance ratings, see story on p. s14.)

With contractor performance publiclydisplayed, companies are working to keeptheir ratings at “excellent” or “very good.”This is not surprising to Woytek. “One ofthe reasons we selected these companies forSEWP IV was because they rated highly onpast performance. We expected them to begood,” she said. ❑

SEWP IV SnapshotNASA Solutions for Enterprisewide Procurement IV defined: A governmentwide

acquisition contract providing advanced information technology products and

related services at fixed prices

Contract ceiling: $5.6 billion per contract over seven years

Period performance: May 2007 to May 2014

Number of prime contractors: 38, including 21 small businesses

Product selection: More than 1.3 million products and product-based services

from 3,000 manufacturers

Fees: 0.5 percent annually for orders up to $2 million, with a cap of $10,000 per

order on orders totaling more than that

Fiscal 2009 activity: $1.875 billion in sales

Staff: 38

Web address: www.sewp.nasa.gov Source: SEWP IV Program Office

How committed are SEWP IV officials to processing purchase orders

within one day? When federal agencies flood the SEWP IV office with

end-of-the-fiscal-year purchases each September, SEWP officials

extend their hours to meet their self-imposed 24-hour goal.

“On September 30, we're here until midnight or until the last

delivery order gets processed that day,” said Joanne Woytek, SEWP IV

program manager, adding that her staff once processed 800 orders in

one day. “Everyone in the office pitches in and helps out.”

This commitment to customers has not gone unnoticed. Washington

Technology last year called the SEWP program “the gold standard for

customer service,” and named SEWP IV as one of nine contracts that

have changed how federal agencies buy technology. “The managers

running the contract see both agencies and their contractors as

customers,” Washington Technology said. “The focus on service has

helped SEWP survive and thrive into its fourth generation.”

Similarly, in a survey of 160 federal IT and procurement professionals

by MeriTalk, SEWP IV was named as the “Federal IT King of the

Contracts.” SEWP IV was the top rated federal contracting vehicle with

a 93 percent approval rating from survey participants. SEWP IV's

approval rating was 7 percentage points higher than the second-ranked

contracting vehicle, the General Service Administration’s 8(a) Stars

program.

Among their top recommendations, survey respondents said that

contracting vehicles should provide more transparency into the past

performance of their contract holders. SEWP IV does precisely that

with its online performance rating system.

“The focus on service has helped SEWP survive and thrive

into its fourth generation.”

Washington Technology

SEWP IV Recognized for Customer Focus

Page 7: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

Picture yourown Federal

procurement team

The business of acquisition requires in-depth knowledge and a keen understanding

of the big picture. As a Federal acquisition shared services provider, focusing on

the details is what the Acquisition Services Directorate – AQD – does best.

Our experienced contracting officers will handle all phases of your procurement.

From one Federal agency to another, we deliver a proven process that’s completely

compliant with laws and regulations. So you can focus on meeting mission

requirements on time, every time. We're Always Part of the Picture.

©2010 Acquisition Services Directorate, U.S. Department of the Interior www.aqd.nbc.gov

Page 8: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

Contractors follow their

customers to SEWP IV

When NASA officials opened the competition for theSolutions for Enterprisewide Procurement (SEWP) IV program in 2006, officials at FedStore Corp. knew

they needed to get on the governmentwide acquisition contract (GWAC).

“We have a large number of customers in the Departmentof Veterans Affairs and Air Force, and they use SEWP on aregular basis,” said Chuck Spence, director of federal programsat FedStore. “SEWP is a great vehicle for serving our customers.”

Other SEWP contract holders agree. “The reason we wantedto be on SEWP is because it’s widely used by our customers –in many cases it’s the preferred vehicle,” said Andy Lausch,vice president of federal sales at CDW Government LLC. “So we wanted to make sure we were on the vehicle to helpthem meet their needs.”

Agency customers tell contractors they like SEWP IVbecause it is easy to use and has a wide scope and catalog ofinformation technology offerings. They also like its ability toadd new and advanced IT products quickly to the catalog.“It’s certainly an advantage to contractors to be able to offertheir customers the latest and greatest technology items asthey become commercially available,” said Steve Charles, co-founder of and executive vice president at immixGroup.

Supporting Contractors

The SEWP IV program office has two full-time staff

members – called contract holder relationshipmanagers (CHRMs) – who work directlywith contractors to keep them informed of new policies and program tools, answerquestions, resolve problems, and ensure thatthe contract is implemented correctly. Inaddition, CHRMs act as advocates foragency customers to make sure that ordersare fulfilled on schedule and as expected.Contractors and SEWP program officialsdescribe the relationship as collaborativerather than confrontational, saying opencommunication is the norm.

“The CHRMs allow us to communicateon a one-on-one basis with the programoffice,” Spence said.

To ensure that contract holders are properlyinformed and provide accurate informationto potential customers, SEWP requires thatall contractors’ sales staffs receive SEWPtraining. SEWP will also train companiesthat are not on the contract, in case theywant to offer their products as a subcontractorthrough SEWP IV.

Program officials meet with contractholders quarterly to discuss common issuesand facilitate their use of SEWP IV. “Wedon’t want to make things too costly forthem,” said Joanne Woytek, SEWP IV program manager.

Woytek also said the program managersfor each contract holder have strong corporate backing so that if problems arise,they will be quickly resolved. “Salespeoplearen’t going to take money out of theircommissions to fix something, but programpeople will make sure issues get resolved,”Woytek said.

Thus, SEWP IV’s programs and processesfor working with contractors are focused onlong-term goals and, ultimately, customersatisfaction. “We’re not just partnering withgovernment,” Woytek said. “We’re alsopartnering with industry.” ❑

s8

Custom Report

SEWP is the preferred vehicle of many federal agencies

Top 10 SEWP IV Contract HoldersContractor Total SEWP IV Revenue

(millions of dollars)

World Wide Technology 591.5

GTSI 440.6

CDWG 436.2

HP 250.0

TKC Integration Services 249.0

PC Mall Gov-GMRI 248.9

immixGroup 207.1

Dell 201.7

FORCE 3 195.4

Sword & Shield 175.2

Source: SEWP IV Program Office, June 2010

Page 9: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

HERE TO GUIDE YOU THROUGH ALL YOUR IT NEEDS

Four Points Technology, LLC is a Service Disabled Veteran Owned Small Business (SDVOSB) dedi-

cated to providing IT Products and Professional Services to the Federal Government. Four Points Tech-

nology offers solutions that support a wide variety of business initiatives specifically suited for Gov-

ernment organizations. Working with Four Points Technology not only ensures that our clients can

fulfill their technology needs, but as a Small Business and SDVOSB, purchasing goals are easily met,

as mandated by the Federal Government.

NNG07DA16B

[email protected]

Page 10: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

Agency buyers infuse

SEWP IV with new ideas

When federal customers suggested that NASA’s Solutions forEnterprisewide Procurement (SEWP) IV governmentwideacquisition contract allow credit card purchases, program

officials listened and added the capability two months ago. “Many of our upgrades to our Request for Quote tool and

other innovations have come from our customers,” saidJoanne Woytek, program manager for SEWP IV.

SEWP officials gather comments from agency usersthroughout the year, using their training sessions and annualconference as an opportunity to find out what works well andhow they can improve processes. During the past 12 months,for example, SEWP officials conducted 75 training sessionswith nearly 1,000 people. “We get a lot of direct feedbackfrom people on how they are using the tools and the contract,and what they would like to see us do better,” Woytek said.

SEWP IV has recently introduced new tools such as a livechat function for customer service, help ticketing to improvetracking of the help desk, enhanced tracking capabilities ofdelivery orders and a new online interface that streamlinesthe ordering process for procurement officers.

SEWP IV training

The SEWP IV program has a training video on its website,but it also offers free training at customers’ offices, even overseas. Program officials are leaving soon for Germany,where they will conduct 10 days of training at 10 DefenseDepartment locations. A training session typically lasts about 90 minutes. “We want to make sure the customer isfully aware of the rules for using the contract, the tools thatare available to do that easily and what services we provide as a program,” Woytek said.

“When you walk out of training, you can walk to your deskand begin using SEWP immediately,” said Marcus Fedeli, asupport contractor who serves as SEWP IV business managerand conducts some of the training sessions.

SEWP officials have 10,000 customers, including technicaland procurement officials, and have trained 4,500 of them.Woytek relishes the training, which lets SEWP officials workone-on-one with customers. “It gives us a chance to see howthe program is being used and get recommendations for thetools,” she said.

Learning at SEWP IV Conferences

Attendance at the SEWP Conference 2010 jumped 30 percentover last year’s conference, with more than 240 people,

including 150 from government, attendingthe annual event. Held in April in Orlando,Fla., the conference let customers exchangeinsights and tips for using the contract.

Contract holders also attended, but nosalespeople were allowed, just program staff.SEWP officials assigned seating so that peopledidn’t sit with their coworkers. “You get alot of cross-pollination of ideas that way,”Woytek said.

One of the conference’s major draws wastraining workshops. Woytek estimated thatabout 50 percent of the attendees had neverhad training on SEWP IV. And for thosewho had, the conference allowed for a morein-depth education on how procurementofficials can take advantage of SEWP’s procurement tools. As people gain moreunderstanding about how SEWP IV works,they feel more confident in the integrity ofthe process and the capabilities of SEWPprogram officials, Woytek said. “Being comfortable with the process is very importantfor procurement people, because they haveto personally sign the documents,” she said.“They want to be comfortable with whatthey are signing.”

Training a Federal Acquisition Workforce

At the FOSE 2010 Conference and Expo,an annual information systems conferenceowned by the 1105 Government InformationGroup held in Washington, D.C., in March,SEWP IV training sessions filled with threetimes the usual number of participants. SEWPofficials say federal procurement officials arebecoming more aware of the contract andhow it can help them do their jobs. “SEWPis becoming more popular with new peoplecoming on board in the acquisition community,” Fedeli said. “We’re helping to train federal procurement staff for free.”

Procurement officials and other federalemployees can request free training by writing to [email protected]. ❑

s10

Custom Report

Program officials use training and conferences to spur innovation

Page 11: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

STRONG.FLEXIBLE.TARGETED.IRON BOW TECHNOLOGIES

For over two decades, Iron Bow Technologies has been a proven leader in providing intelligent, full-lifecycle technology solutions for government and industry. A strong and flexible partner, we’re committed to delivering solutions that are precisely on target for your mission.

We have just one goal—to help you reach yours.

Data Center Network Infrastructure Unified Communications Information Security Client Computing

SEE MORE AT WWW.IRONBOW.COM

Page 12: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

“GWACs are not MACs”

Joanne Woytek wants people to understand that NASA’sSolutions for Enterprisewide Procurement (SEWP) IV program is a governmentwide acquisition contract

(GWAC), not a multi-agency contract (MAC). Althoughthe distinction between a GWAC and a MAC is probablymeaningless to most people, it can make a world of differencein government contracting.

GWACs are a small group of information technology contracts that the Office of Management and Budget’s Officeof Federal Procurement Policy (OFPP) authorizes and tightlymanages. Only four federal agencies – NASA, the EnvironmentalProtection Agency, the National Institutions of Health(NIH) within the Department of Health and Human Services,and the General Services Administration – have GWACauthority. In contrast, individual agencies establish MACsand allow other agencies to use them, as dictated in theEconomy Act.

The Government Accountability Office (GAO) in Aprilidentified several problems with MACs and other enterprisewidecontracts. The GAO report, “Contracting Strategies: Data andOversight Problems Hamper Opportunities to Leverage Valueof Interagency and Enterprisewide Contracts,” states thatlimited governmentwide policy exists for establishing andoverseeing MACs and enterprisewide contracts. The reportalso states that the number of MACs and other enterprisewidecontracts is unknown, and that the rising number of contractsis driving up vendors’ costs, because they must spend an inordinate amount of time and money competing for a spoton each contract. Ultimately, the vendors’ costs are passed onto the government.

“Interagency contracts were intended to increase governmentefficiency,” said Sen. Joe Lieberman (I-Conn.), one of threesenators who requested the report. “Instead, on a daily basis,

agencies duplicate each other’s contractingefforts, raising the cost of government.”

Among its recommendations for MACs,GAO called for improved reporting andstronger authorizing procedures, such asrequiring a comprehensive business caseanalysis, to avoid further duplication ofexisting contracts. Woytek points out thatSEWP IV already provides reports and business cases, and so NASA did not raiseany objections to the GAO report. “Thekey thing to understand is that GWACs are not MACs,” she said. “We are a small,controlled, authorized group of contractvehicles. There is not a proliferation ofGWACs.”

No Attack on SEWP IV by GSA

Still, some question whether agenciessuch as NASA, NIH and EPA should haveGWAC authority. Consequently, some anxiety and handwringing often occurswhen it comes time for OFPP to review and renew these agencies’ GWAC authority.OFPP Administrator Daniel Gordon is currently reviewing NIH’s Chief InformationOfficer Solutions and Partners 2 (CIO-SP2)contract to determine whether to renew itsGWAC authority. SEWP IV comes up forreview in 2012.

Fears that Gordon will not approve NIHauthority also prompted speculation thatSEWP IV might be in danger in 2012. Press reports suggested that GSA might askOFPP to disapprove NASA’s authority,because SEWP IV competes with GSA’s IT product schedules.

However, an OMB spokeswoman dispelledthis notion, saying that “GSA has notrequested that OMB remove NASA as theexecutive agent for the SEWP contract.”

Praising Competition Among Contracts

Many government analysts praise theSEWP IV contract, saying it provides neededcompetition for GSA and other in-houseagency vehicles. “Having competitive vehicles means the government is usually

s12

Custom Report

SEWP IV is authorized and managed by OMB’s Office of Federal Procurement Policy

Top Agency SEWP IV SpendingDepartment/Agency Total SEWP IV Spending

(millions of dollars)

Department of Defense/Army/AF/Navy $1,300

Department of Veterans Affairs $940

Department of Justice $460

NASA $265

Social Security Administration $190

General Services Administration $172

Department of Health and Human Services $125

Source: SEWP IV Program Office, May 2010

Page 13: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

s13

Custom Report

going to get a better price,” said RayBjorklund, chief knowledge officer and senior vice president at FedSources.

Steve Kelman, former OFPP administratorunder President Bill Clinton, echoed thissentiment in a recent blog post for FederalComputer Week’s Web site, FCW.com.“Competition among contract vehicles(including the default alternative of usingone’s own contract shop) promotes customerservice and innovation, just like competitionin other markets,” Kelman wrote. “In thecurrent marketplace, competing vehicles such as CIO-SP and SEWP provide goodalternatives for government customers.”

Kelman lauded SEWP IV officials fortheir ability to fill orders within a day,update their catalog quickly and deliverengineering-related IT.

Bjorklund said the government shouldavoid having too many contract vehiclesbecause of the added cost to contractors.But he said SEWP’s continued growthdemonstrates its value to federal procurement

officials.Bjorklund pointed out

that SEWP IV’s averageannual growth rate from fiscal 2007 to 2009 was 29percent, while the equivalentIT product sales on GSA’sSchedule 70 had an averageannual growth rate of minus4 percent during the sameperiod. “The bottom line isthat SEWP appears to be amore attractive contractvehicle than Schedule 70

for buying IT products,” Bjorklund said.For those still worried about SEWP’s future, OFPP’s

upcoming decision on the CIO-SP program could providereassurance. “I would look at CIO-SP as a bellwether for thefuture of SEWP,” said Kevin Plexico, senior vice president ofresearch and analysis at Input. He said SEWP probably has astronger position than CIO-SP because of its growth. As aresult, “if they approve CIO-SP, I wouldn’t see any reasonwhy they wouldn’t continue supporting SEWP,” he said. ❑

“Having competitivevehicles means thegovernment is usually going to get a better price.”

Ray Bjorklund, chief knowledge officerand senior vice president,FedSources

GovConnection is dedicated to fulfilling the unique, specialized IT

requirements of organizations just like yours. By offering 1400+ top

brands, including Cisco, HP, and Microsoft, we are able to create

customized technology solutions. Our dedicated Account Managers

will work with you before, during, and after every purchase to make

sure you get exactly what you need when you need it. And with our

nationwide network of service partners and teams of certified technical

experts, we provide end-to-end support to help you operate efficiently

and effectively.

• Attentive, personal service • Contract purchasing expertise

• Available overnight delivery • Volume software licensing

• 180,000+ products

Call your GovConnection Account Manager

today for SEWP IV contract purchases.

888.302.7397 (SEWP)[email protected]/sewp

Information Technology—On Call and On Contract

Contract #NNG07DA32B

»

Page 14: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

Performance rating system

keeps contractors on their toes

The Program Performance online scoring system of NASA’sSolutions for Enterprisewide Procurement (SEWP) IVgovernmentwide acquisition contract, which publicly

rates contractors’ performance, has proven to be a valuabletool not just for SEWP officials and agencies, but for contractors, too.

SEWP IV program officials, who evaluate contract holdersbased on feedback they receive from agency customers, provide ratings in four categories: reports, customer satisfaction,information distribution and contract adherence. Contractorscan receive ratings of excellent, very good, good and poor, which havecorresponding color ratingsof blue, green, yellow andred.

In addition, SEWP IVtracks the average time ittakes for contract holders to deliver their orders, andthese statistics are also posted on the ProgramPerformance website. All of the performanceinformation is public.Agencies may use the evaluations to help guide decision-making when they areawarding orders based on best value.

“It’s [an] incentive for the contract holders and helps usmake sure things are done right,” said Joanne Woytek, SEWPIV program manager.

If contractors are experiencing problems, they receivewarnings from the SEWP IV program office before their ratings are dropped. Currently, all 38 SEWP IV contractorshave ratings of excellent or very good.

The rating system keeps contractors on their toes, industryofficials said. “One of our goals is to remain blue [excellent]across the SEWP contract,” said Chuck Spence, director offederal programs for FedStore Corp., which has all excellentratings. “We take it very seriously and will do what we needto do to retain that rating, both for our customers and ourselves.”

The system serves to create a sharedexpectation of high performance within the SEWP IV program, said Steve Charles,co-founder of and executive vice presidentat immixGroup Inc., a company that alsohas across-the-board excellent ratings. “If Joanne calls you up and says there’s a problem, you had better get it fixed immediately,” he said. “You don’t want your score to drop, because just about everyone is excellent.”

Another value of the online rating systemis that SEWP IV contractors can point totheir scores when introducing themselves toa new customer. “It’s much more valuablefor a firm to refer potential customers toother agencies and say, ‘Ask them how we’redoing,’” said Andy Lausch, vice president offederal sales at CDW-Government LLC,which has all excellent ratings and theshortest average delivery time of all SEWPIV contract holders. “SEWP can providereporting that gives an unbiased view ofhow each firm is doing.”

Woytek points out that one of the rea-sons the rating system is effective is that itempowers program managers and motivatesthem to resolve problems quickly. “It enablesprogram managers to go to their corporateoffice and say, ‘We need to fix this or we’regoing down in rating.’” ❑

s14

Custom Report

The ProgramPerformance system“enables programmanagers to go totheir corporate officeand say, ‘We need tofix this or we’re goingdown in rating.’”

Joanne Woytek, SEWP IV program manager

excellent very good good poor

Page 15: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

SEWP IV contract listing

s15

Custom Report

Source: www.sewp.nasa.gov

Listing as of June 30, 2010

Company Contract number Small Business Designation

Alliance Technology Group, LLC NNG07DA10B 8(a) and Woman Owned Small BusinessAlvarez & Associates, LLC NNG07DA46B SDVOSBBest Buy, Gov LLC NNG07DA48BBlue Tech, Inc. NNG07DA22B 8(a), Woman Owned, and Hub Zone Small BusinessCDW*G NNG07DA35BCounter Trade Products NNG07DA40B 8(a) and Woman Owned Small Business

NNG07DA50BNNG07DA24B

Dataline, LLC NNG07DA63BDell Federal Systems L.P. NNG07DA15BEmtec Federal NNG07DA51BFCN Technology Solutions NNG07DA26B Woman Owned Small BusinessFedStore Corporation NNG07DA43B SDVOSBForce 3, Inc. NNG07DA11B Minority Owned Small Business

NNG07DA18BFour Points Technology, LLC NNG07DA16B SDVOSBGC Micro NNG07DA30B Woman Owned and Minority Owned Small BusinessPC Mall Gov Inc. d/b/a GMRI NNG07DA08B

NNG07DA62BGovConnection, LLC NNG07DA38B

NNG07DA32BGTSI Corp NNG07DA33B

NNG07DA49BHewlett Packard (HP) NNG07DA17Bi3 Federal NNG07DA42B SDVOSBIBM (International Business Machines) NNG07DA12BIntelligent Decisions NNG07DA28B Minority Owned Small BusinessiGov.com NNG07DA27B Small BusinessimmixGroup NNG07DA20B Small Business

NNG07DA64BIron Bow Technologies, LLC NNG07DA31B

NNG07DA39BMerlin International NNG07DA23B 8(a) and Veteran Owned Small BusinessMicroTech, LLC NNG07DA47B 8(a) and SDVOSBPresidio Networked Solutions Inc. NNG07DA36BRed River Computer Company Inc. NNG07DA25B Small BusinessRicoh Americas Corporation NNG07DA52BSilicon Graphics Federal, Inc. (SGFI) NNG07DA14BSoftchoice Corporation NNG07DA37BSword & Shield Enterprise Security, Inc. NNG07DA21B Veteran Owned Small BusinessTechnica Corporation NNG07DA29B Veteran Owned and Minority Owned Small BusinessThree Wire Systems NNG07DA44B SDVOSBThunderCat Technology, LLC NNG07DA45B SDVOSBTKC Integration Services, LLC (TKCIS) NNG07DA19B 8(a) and ANC Small BusinessUnisys Corporation NNG07DA09B

NNG07DA13BNNG07DA34B

World Wide Technology, Inc. (WWT) NNG07DA41B

Page 16: Custom Report Online report sponsored by SEWPIVdownload.101com.com/GIG/Custom/2010PDFS/SEWP/SEWP... · Of the 38 SEWP IV contract holders 21 are small businesses: six 8(a) small,

Where rugged works.

Meet the rugged Dell™ Latitude™ E6400 XFR.T3 magazine called it one of the toughest gadgets on Earth and it’ll work in some of the toughest conditions on the planet. Whether that’s Alaska, Afghanistan, or anywhere in-between.If you need a computer that goes above and beyond the call of duty, visit dell.com/ruggedcomputer or call 1-866-810-8617.

Windows®. Life without Walls™.Dell recommends Windows 7.