Jennifer Sakole is the principal analyst for Federal Information Solutions at Deltek.
There has been quite a bit of hubbub over the past few weeks in response to GSA moving forward with the first procurement of the Infrastructure Solutions portion of its Network Services 2020 (NS2020). The move, a result of the release of the Enterprise Infrastructure Solutions (EIS) draft RFP on March 1, prompted a flurry of industry articles and notable bumps in page views on both the NS2020 and EIS opportunities on Deltek's GovWin IQ.
I thought I'd add to the fray by providing a quick breakdown of top vendors, buyers and types of task orders being awarded under the incumbent Networx Enterprise and Universal contracts – the type of information companies use when making bid and teaming decisions. The data used is based on what has been reported through the Federal Procurement Data System (FPDS) under the Networx Enterprise and Networx Universal contracts; however, GSA posts updates on total purchases via its technology blogs and on data.gov (search term: Networx). Per the most recent Networx blog dated January 10, 2015, "Federal agencies purchased $1.53 billion in network and telecommunications services from the Networx contract in FY 2014."
GSA describes NS2020 as a portfolio of next generation telecommunications services and IT infrastructure services. The portfolio provides six program offerings, including four categories of Infrastructure Solutions: Enterprise Infrastructure Solutions (EIS), Northeast Infrastructure Solutions (NIS), Central Infrastructure Solutions (CIS) and Western Infrastructure Solutions (WIS).
Most current Networx services will transition to the EIS vehicle, which is the largest NS2020 acquisition, anticipated to have a $50 billion ceiling value. The government expects products and services acquired under EIS to be provided both domestically and internationally.
As reported in FPDS since FY 2007, more than 13,000 tasks were awarded under Networx for a total ceiling value of $2.3 billion. To date, slightly more than 70 percent of the ceiling value has been obligated on those awards, a total of $1.6 billion.
Networx is comprised of two programs, of which AT&T, CenturyLink and Verizon are vendors:
Networx Universal, which is designed to provide federal agencies a full range of network services.
Networx Enterprise, which is also designed to provide federal agencies a range of network services, but with a special focus on access arrangements, per the GSA. Additional vendors on Networx Enterprise are Level 3 and Sprint.
Who is the top Networx vendor?
One of the factors used to evaluate potential competitors and teaming partners is which company is winning the most work. Knowing which companies have high levels of success and past experience will assist in making a decision about whether or not you can compete and win.
Based on available FPDS data,AT&T leads in both the ceiling value of task orders awarded under Networx (more than $1.2 billion) and reported spending on those awards (greater than $760 million), while Verizon had the highest volume of task order awards (more than 6,700).
Another consideration for bidding on EIS would be whether or not your company's current and target customers use Networx. An agency's buying preferences can determine what contract vehicle offerings should be included as part of your company's portfolio, and whether or not the addition of a new vehicle will enhance your opportunity to increase business.
FPDS data shows thatNetworx has been utilized broadly across the government, with 46 department-level buyers. Defense buyers drive the majority of awards and spending on the program, followed by Veterans Affairs (VA).
In terms of FPDS reported spending, which Networx companies have the highest levels of reported spending in the top buying departments?
- AT&T is the top vendor with the VA, Treasury, USMC and USAID.
- Verizon is the top vendor with Army, DoD, Air Force, DOJ and DOT.
- Century Link is the top vendor with the Navy.
What about the work?
Yet one more area to review would be the task orders – starting with the obvious question: are tasks being awarded under the contract? If so, what are the ceiling values and how stiff is the competition?
There is no doubt that Networx is being utilized. Awarded tasks on Networx reported via FPDS since FY 2012 ranged in value from less than $20,000 to more than $65 million; the lowest value of the top 10 tasks awarded since FY 2012 was $18.5 million.
Of the top 10, seven of the tasks were awarded to AT&T, including the highest dollar-value task awarded: FY13 Renewal for the TNET Contract MPLS Circuit & Services, a $65.2 million task order with the IRS in 2012. Three bids were received for this task, which is consistent with the average number of bids received since the start of Networx.
Comments on the EIS draft RFP were due by March 31. With the final RFP expected to be released in June or July, now is the time to make your bid/no bid decision for EIS.
