Total Cost Savings Key in Federal Network Connections

Improving and maintaining reliable and flexible basic connectivity continues to be important for government, including a focus on total cost of ownership savings.

Connections II is the GSA contract agencies use to purchase network integration support and communications equipment to ensure connectivity from the user to the network provider.

FY15 Customer Buying Trends

Federal agencies obligated $172 million to Connections II network integration and support services via 292 task orders in Fiscal Year 2015 (FY15).

While building and campus connectivity remain the primary purpose of the Connections program, as technology continues to evolve we see a shift in what agencies are ordering. For example, traditional building and campus wiring and cabling projects are now becoming wireless.

Agencies are looking to Connections to support engineering, installation, testing, project management, and life-cycle management of Digital Antenna Systems, Wi-Fi, and other wireless technology that become the user interface to the broader networks of the world.

Connections II purchase data tells us that agencies need continued support and resources in this area. Five service types available from Connections II make up almost 80% of demand. Demand for telecommunications, network upgrades, and general network support were higher priority in FY15 than the year before.

Connections II contractors offer strong integration skills, which are important during long upgrades or transition, to watch for technology changes and incorporate them into the final result.

Focus on Total Cost of Ownership Savings

Connections II customers are focusing on solutions that save dollars at both contract award and on long-term operational costs (total cost of ownership).

One agency awarded a large task order in FY15 that achieved more than 10% in labor savings and 40% in equipment savings over listed prices. Other agencies are anticipating more downstream savings as a result of consolidation and modernization.

Agencies are able to save millions with more efficient telecom operations and billing management over several years. They also reduce cost of operations and security, and increase network efficiency by modernizing technology such as nationwide Unified Communications Convergence.

Orders Increasing Year to Year

Demand for solutions from Connections II is growing every year. FY15 obligations represent an increase of 31% in obligations from FY14, and 60% in obligations from FY13.

In addition to Unified Communications, we see interest growing for Radio Access Networks (RAN), Distributed Antenna Systems (DAS), and Land Mobile Radio (LMR). This is no surprise with the growth in mobile, since these technologies broaden the area signals can be received by mobile devices. They also assist with emergency preparedness.

Please follow us on Twitter @GSA_ITS to join the conversation.

Mary Davie is part of the GovLoop Featured Blogger program, where we feature blog posts by government voices from all across the country (and world!). To see more Featured Blogger posts, click here.