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HHS announces additional HIX Establishment Grant awards

Today, the Department of Health and Human Services (HHS) released more than $181 million in Establishment Grant funding to Illinois, Oregon, Nevada, South Dakota, Tennessee and Washington state to help set up their health insurance exchange (HIX) systems. This brings total federal funding for HIXs to $1 billion! HHS also released more guidance on creating these novel systems with an exchange blueprint that states can utilize to assist in implementing a competitive system of private health insurance options. The blueprint also provides direction for states interested in participating in a partnership exchange. The document encourages states to contact Centers for Medicaid and Medicare (CMS), Centers for Consumer Information and Insurance Operations (CCIIO), and state officers for specific questions regarding their exchange blueprint.
 
HHS also released guidance on how the federally-run insurance exchange will be implemented within a state, including how HHS will consult with numerous stakeholders in its implementation, when necessary. The department is expected to hold implementation forums in the next few months to answer questions and assist states in building exchange infrastructure. HHS is also expected to work with tribes, tribal governments and tribal organizations to scope out ways these systems can help their communities.
 
Here’s a breakdown of today’s Establishment Grant awards:
Illinois: The Illinois Department of Insurance received $32,789,377 in federal funding and plans to use some of the funds to set up an HIX design management team to continue development of a consumer assistance portal and a navigator education and training program.
 
Oregon: The Oregon Health Insurance Exchange Corporation received $6,682,702 in federal funding and plans to use funds to support the state’s continued progress toward exchange implementation, including final design and initial completion of the exchange’s business and operations plan.
 
Nevada: The Nevada Department of Health and Human Services received $4,397,926 in federal funding and plans to use funds to build on previously award grants. The state will also use funds to establish the Nevada Silver State Health Insurance Exchange.
 
South Dakota: The South Dakota Division of Insurance received $5,879,569 in federal funding and plans to use funds to further its planning, research and design of a state-run insurance exchange. The state plans to analyze the exchange’s effects on South Dakota’s insurance markets, create a risk adjustment/reinsurance plan, design a comprehensive outreach/education plan, and research a SHOP exchange.
 
Tennessee: The Tennessee Bureau of TennCare received $4,300,000 in federal funding and plans to use funds to build on past grants and support SHOP program system infrastructure, reinsurance and risk adjustment administration, and qualified health plan contract actuaries. 
 
Washington: The Washington State Health Benefit Exchange received $127,852,056 in federal funding and plans to use funds to accomplish the activities necessary for the exchange to meet certification requirements in January 2013, provide coverage to enrollees by January 2014, and be self sustainable by January 2015. The funding will also be used to hire staff and consultants to manage activities related to the creation and ongoing operations of the exchange.
 
As always, be sure to follow Deltek’s Health Care and Social Services Team on Twitter @GovWin_HHSand LinkedIn!

Federal Procurement Mythbusters and Best Practices

In February 2011, the Office of Federal Procurement Policy (OFPP) released a memo aimed at dispelling misconceptions about government and industry practices around procurement. This week, follow up memo was released that attempts to approach issues from the industry perspective. Joanie Newhart, OFPP's associate administrator for acquisition workforce programs, noted that "The memo is targeted more for the vendors who are newer in working with the government." While the revelations may not be common knowledge among experienced contractors, the observations are excellent reminders about pitfalls that can be easily avoided. Additionally, beyond the misconceptions, the OFPP memo draws out examples of best practices around procurement issues like outreach, technology expertise, and fulfilling proposal requirements.
OFPP’s second mythbuster memo continues efforts to clarify misconceptions around government contracting. These 8 myths were selected through meetings with industry, member from the Frontline Forum and senior procurement executives.
 
Acquisition struggles have been a long standing issue for government contracting. Simply identifying some of the common points of vendor confusion may benefit those new to government contracting as well as those looking for a refresher. Perhaps more practical, however, are the examples of activities agencies undertake to support procurement. These descriptions of best practices give insight into how agency procedures and tendencies are changing, e.g. increasing use of virtual outreach sessions, and suggest ways for vendors to enhance their engagement with current and potential customers.
 
As agencies shift their buying strategies, communication between government and industry will influence federal IT market landscape. The rapid pace of technology evolution and adoption increases the competitive demands placed on contractors. Part of maintaining a competitive edge will require vendors being well informed about customer practices and agile at leveraging every opportunity to shape customer requirements.
 
As agencies shift their buying strategies, communication between government and industry will influence federal IT market landscape. The rapid pace of technology evolution and adoption increases the competitive demands placed on contractors. Part of maintaining a competitive edge will require vendors being well informed about customer practices and agile at leveraging every opportunity to shape customer requirements.
 

 

 

Potential Mobile and Cloud Opportunities at Army and DISA: Notes from Tech Net Land Forces Southwest

Mobile computing is poised for growth at DoD and the Army is seeking a cloud-based solution for an enterprise service desk.
Potential Mobile and Cloud Opportunities at Army and DISA: Notes from Tech Net Land Forces Southwest
During his two plenary session appearances at the Army’s recent TechNet Land Forces Southwest Conference, Mike Krieger, the Army’s Deputy CIO/G-6, had many interesting things to say. I’d like to focus on just a couple points he made to clarify where upcoming business opportunities may lie at the Department of Defense and the Army and where they fit into the market trends that we write about here at the FIA Blog.
First, Mr. Krieger announced that the Defense Information Services Agency (DISA) will be releasing a Request for Information in the near future for a zero client solution for mobile devices. According to Mr. Krieger, DISA wants to receive industry comment on the feasibility of a zero client solution for mobile devices as part of its evolving role as the mobile provider for DoD.
This forthcoming RFI serves as an excellent example of the trend I wrote about recently toward the increased use of thin client and mobile solutions at the DoD. To briefly recap, DoD has established the basic policy framework necessary for a rapid expansion of the mobile computing market. Zero clients will play a central role in that expansion. I also noted, per comments made by DoD CIO Teri Takai, that more than 50 mobile computing pilot programs are underway across the DoD. Mr. Krieger’s announcement suggests that DoD is moving toward implementing a Bring-Your-Own-Device (BYOD) policy. This said, Mr. Krieger was also careful to state that for the time being the DoD and the Army will continue to rely heavily on Blackberry devices. Blackberry will remain on top at DoD for the foreseeable future because it meets the 4 basic requirements that the DoD has for mobile devices: 1) PKI authentication, 2) FIPS 140-2 cryptography, 3) Data-at-Rest, and 4) enterprise management applicability. As solutions evolve for other brands of mobile devices, however, the number of options available to DoD customers should grow.
The second point worth mentioning here concerns the growing ubiquity of cloud computing. Industry is constantly finding new ways to leverage cloud-based solutions and technology acquisition leaders across the DoD are aware of the innovation in the market. Take the applicability of cloud to IT Services Management (ITSM) as an example. Mr. Krieger stated that the Army has heard about new cloud-based solutions for ITSM being developed by industry and so it is now seeking ways to leverage these. Mr. Krieger noted that up to now the Army has bought various vendor solutions and none of these has met the Army’s needs. Vendors are now emerging, however, that provide excellent ITSM processes for an Enterprise Service Desk from the cloud. The Army is therefore looking into ways it can acquire ESD-as-a-Service on the back-end while it manages business processes on the front-end. For this reason, the Army is planning to release an RFI asking for industry comment on delivering those back-end services. The plan is eventually to develop a Statement of Objectives Request for Proposals for running ITSM from the cloud.
Mr. Krieger did not say when these RFIs would be coming out or which contracting offices will be handling the market research, but an educated guess would put the zero client RFI coming out of DITCO and the ESD-as-a-Service RFI coming out of Army Contracting Command, although DITCO is also a possibility. My guess is that industry will see both of these RFIs sometime this summer.

To BYOD, or not to BYOD, That is the Question

At the Telework Exchange Town Hall Meeting last week, it was apparent that a paradigm shift is underway in most federal agencies about the value and inevitability of mobility as a standard enterprise means of delivering capabilities to users. The cloud will figure prominently in enabling mobility. Most agencies are moving more quickly to embrace both telework and, more broadly, mobility, than other emerging technologies in the past. Perhaps the biggest question still remains the practicality of the “bring your own device” (BYOD) approach.
Driven by high consumer adoption of smartphones to manage our lives and the desire to avoid device proliferation, federal agencies seem to be moving toward BYOD, at least in initial pilots. Many have taken the agency perspective when evaluating BYOD policies, citing concerns about security of agency networks when a multitude of disparate personal devices are allowed to access government networks. Another major concern is privacy, both the privacy of the personal data on a federal employee’s own devices and the privacy of citizen data that might find its way onto a federal employees device since agencies have a high level of accountability to protect personally identifiable information (PII).
 
However, at the Town Hall, Casey Coleman, the CIO of GSA, which currently has a BYOD pilot going on with couple of dozen people, noted that it might actually be federal employees that reject BOYD policies. This despite employees’ current active use of their own devices on their agencies’ networks in the absence of a formal policy (NextGov reports that 60% respondent to a recent survey said there are no restrictions on what types of personal mobile devices can access their agencies' networks). Coleman pointed out that policies such as who takes responsibility for support of devices, consent of employee for their own devices to be agency managed and monitored, and a policy to wipe their devices of clean data if lost, may actually inhibit employees from opting to use their own devices.  Who would want their personal contacts and family pictures automatically deleted, without even an attempt to recover the device, if lost. Security experts say that loss of smartphones is actually one of the biggest security challenges. Partitioning personal data from government data on personal devices and wiping only the government portion might help some in that regard. The more likely scenario, Coleman believes, is that agencies will only take advantage of safer “opportunistic instances” to allow employees to use their own devices, such as allowing them to only viewing a doc on the network, but not downloading it to their own personal device.  
 
Allowing access to email and web-based applications is feasible, but panelist made it clear that connecting personal devices to internal secure networks is clearly the greatest challenge and risk. FCW reported that at GSA’s Federal Systems Integration and Management Center, before a personal device can be connected to GSA’s network, the agency requests that the employee sign several agreements, including one allowing remote wiping of the device. Only about 10% of the employees have opted to sign the agreement for network access for their devices due to the remote wiping policy.
 
Peter Tseronis, the CTO of the Department of Energy said that his agency is allowing BYOD with role-based segmentation; in other words, it is being allowed only for certain roles of functions. He also noted the need for agencies’ general counsels to be involved up front in the discussion on BYOD policies.  However, the most likely role type—executives—are likely the very ones who are the targets of security threats from foreign agents or hackers.
 
One of the most forward looking panelists at the Town Hall meeting, Dr. Sasi Pillay, the CTO at NASA, assumes that BYOD will be the way agencies will have to eventually go in the future given demands of users and the speed of technology advancement.  However, most likely by that time security advances will need to have also been made.  Former White House cybersecurity adviser Richard Clarke recently said of the growing BYOD trend, “this is the newest and largest vulnerability now.”      
 
The White House is working on a government-wide mobility policy, the Federal Digital Strategy (former the “Federal Mobility Strategy”), which should provide policies for cost-effective, standards-based adoption of mobility that relies on common principles of security, manageability, and device and application deployment for all agencies.  It will be very interesting to see if they issue government-wide policies related to BYOD or leave it to the discretion of agencies.

Draft FY 2013 Defense Authorization Ties Funding to Services Contract Inventories

The U.S. House of Representatives Armed Services Committee is marking up a draft fiscal year (FY) 2013 National Defense Authorization Act (H.R. 4310) that includes limitations in funding for several branches of the Department of Defense (DOD) until they make progress in implementing their services contract inventories. In an atmosphere of increased scrutiny and budget gloom the impact, if sustained, could mean double-digit cuts in authorized acquisition funding for these branches.
For those unfamiliar with these inventories, Congress passed legislation years ago that instructed DOD to collect data and report on the purchase of contracted services by military departments or defense agencies. The goal was to improve the quality and availability of such information and improve the management of DOD’s acquisition of these services. After all this time and some concerted efforts progress has been limited. 
In a recent entry I looked at a report by the Government Accountability Office (GAO) which assessed DOD’s progress in addressing previously identified limitations to their contract review approach. Currently, DOD service contract inventories for most defense components other than the Army rely on data from the Federal Procurement Data System-Next Generation (FPDS-NG).  Since FPDS data does not capture all of the data elements needed to conduct these reviews at the prescribed granularity, the data is of limited utility. 
Currently, the Army is the only the military service that has a centralized, comprehensive reporting system – their Contractor Manpower Reporting Application (CMRA). In the FY 2011 Defense Appropriations Act Congress made $2 million available to the Air Force and Navy to work toward leveraging the Army’s CMRA system. But this is easier said than done. In November 2011 when DOD submitted to Congress a plan to collect contractor manpower data to meet current shortcomings in conducting reviews they noted that developing a common data system to collect and house these data would be challenging given the different requirements from the military departments and components. Consequently, DOD does not expect to fully collect contractor manpower data until FY 2016. 
It seems that the limited progress is meeting with disapproval from members of the Armed Services Committee. In this current mark-up Congress is taking a two-prong approach. First, they would restrict 20% of the funding for the following defense offices until DOD complies with the Inventory of Contracts for Services mandated by U.S. code:
  • The Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics
  • The Office of the Assistant Secretary of the Navy for Research, Development, and Acquisition
  • The Office of the Assistant Secretary of the Air Force for Acquisition
Second, Congress would restrict 20% of the funding for fiscal year 2013 for the Office of the Secretary of Defense, the Department of the Navy, and the Department of the Air Force for spending on “other contracts” from being available to be spent.  To free up all these funds for use Congress wants the Secretary of Defense to certify that they have begun collecting the data for purposes of meeting the requirements of the law.
Implications
Clearly the committee is drawing a line in the sand to encourage the lagging members of the DOD to move forward with their contracted services inventories. The bill authors provide their perspective on the reasoning behind the limitations:
“The committee continues to be disappointed that the defense agencies, the Navy, and the Air Force have not fully implemented the Inventory of Contracts for Services, a requirement initially codified by section 807 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181). The committee notes that the Department of the Army has successfully undertaken an extensive manpower and costing inventory of all Army service contractors since 2002, and the Army’s inventory has been designated as the model for implementation of section 807. The committee remains convinced that the inventory is an important tool to provide transparency in Government contracting and would be a beneficial tool for decision-makers in their planning, programming, and budgeting.”
So not only will many segments of the DOD face the challenge to “do more with less” in the coming fiscal year, they will also face pressure to agree on data and other standards and systems to show progress on meeting long-overdue services contract inventory demands. The irony could be that the heightened pressure to monitor (and reduce) the amount of all contracted services might result in an increase in the contracting of IT services, at least in the short-term.

White House Promotes Business Driven IT Sharing with its Final Shared Services Strategy

Last week OMB released the final Federal Information Technology Shared Services Strategy.  In an effort to reduce wasteful spending that results from building duplicative IT solutions, OMB is pressing agencies to adopt a business driven approach to shared IT services across government.  Savings gained through implementation of shared services will allow agencies to invest in innovative mission systems.
In December 2011, OMB released a draft “Federal IT Shared Services Strategy” to encourage agencies to look first at shared services rather than new development. The final strategy was released last week, and builds on the federal Campaign to Cut Waste and recommendations in the December 2010 25-Point Implementation Plan to Reform Federal IT.
 
The strategy defines IT shared services as, “An information technology function that is provided for consumption by multiple organizations within or between federal agencies.” The graphic below shows the Shared Services Concept Overview and the three categories of IT shared services: commodity, support, and mission.

The initial focus of the “Shared-First” strategy is on consolidating intra-agency commodity IT services to realize the improvements to both efficiency and service delivery possible through broader adoption of intra-agency commodity IT services. The strategy promotes the use of strategic sourcing methods to combine agency buying power for similar IT needs at lower prices and optimum service levels.
 
The table below shows the number of IT investments per investment category and FY2013 planned spending for each area.
 
Consolidation and shared services across these business functions could potentially save billions of dollars for the federal government, and is a way for federal agencies to "do more with less funding.”
 
The strategy document also mandates that agencies move at least two IT services to a shared services approach in 2012 as part of a shared services plan that each agency was to submit by March 2012. Shared First will be a multi-phased effort, beginning with the adoption of intra-agency shared services to bring centralized IT services to agencies that remain too often fragmented today. The strategy will then push into intra-agency shared services for commodity IT, and finally shared services in more strategic IT.   Major implementation milestones are listed below.
 
 
Past administrations have pushed shared services, but budget constraints, the push to cloud computing, and efforts to consolidate data centers could help propel Shared First forward.  Agencies have increasingly adopted shared services for intra-agency purposes during the last couple of years, pooling together resources to offer centralized email and other shared services. For example, the U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms, and Explosives are teaming up to create a shared mobile app store, and the Department of Defense is pushing services to adopt centralized email served up by the Defense Information Systems Agency.
 
Federal CIO Steve VanRoekel stated, “The Federal IT Shared Services Strategy is an enduring concept, which must be ingrained in agency management cultures to ensure that mission success continues during times of tight budgets.”
 
Deltek predicts, as agencies embrace shared services, work will increase for contractors providing the shared services, but will be reduced for those without a piece of the pie. According to OMB, “The Shared-First approach creates new opportunities for industry to provide shared services to agencies that are more agile in delivery and more responsive to a wide variety of evolving mission, support, and commodity IT requirements.” Some agencies may be positioned to become providers of IT shared services for other agencies, which might further erode work available for the contracting community.  
 
Finance and human resources have been the first functions agencies have ported to a shared services model.  Contractors can expect more shared services activity in these areas, as well as areas such as general government, budgeting, and IT management.

National Police Week: ALPR and speed-monitoring devices

Of the countless technologies police officers use on a daily basis, speed-measuring devices and Automatic License Plate Recognition (ALPR) are two of the most visible to those outside of law enforcement. These are the devices drivers see officers holding while parked on the side of the road. License plate readers, which can be either handheld or mounted, have a myriad uses including access control and assessing traffic and security. The readers use infrared illumination to scan the plate, and the system then captures and stores the image. Mounted readers can be connected to a computer system and security gates to note whether the license plate on the car approaching is approved to enter the facility; the gate can open or close depending on the plate scanned. Handheld readers are more often used by police officers to ensure cars are not stolen and that registration and inspections are current.

Speed-measuring devices also come in many forms including RADAR (radio detection and ranging), speed computers, LIDAR (light detection and ranging), and speedometer clocks. As discussed by Deltek Analyst Evan Halperin, newer technologies to help officers determine the speed of a vehicle include drone aircrafts. While the use of aircraft to monitor speed is likely to increase, particularly along border states, standard handheld devices are still the norm.

Earlier this week, South Carolina awarded five contracts for its statewide handheld down-the-road and LIDAR speed measuring devices project, at a total value exceeding $3 million. These devices play a huge role in officers’ day-to-day duties, as nearly every traffic stop is based on evidence captured and stored by the speed-measuring devices, which can later be used as evidence in court.

Below is a visual representation of the number of public procurements that have been released for these technologies since 2011 according to the GovWinIQ Database.

Analyst’s Take:

Vendors should continue to focus on more traditional handheld and mounted technologies while cautiously considering looking into drone and aircraft-based options. The bread and butter of the industry is unlikely to change in the foreseeable future as police officers continue to use handheld devices to apprehend reckless drivers and more hardened criminals. Vendors who have not done so should consider expanding into other sectors, particularly vendors who focus on license plate technology that can monitor private sector parking lots, toll plazas, and even city zones to capture congestion and traffic violations.

 

National Police Week: Procurement Strategies for Police Departments

This week, we recognize police officers across the country with National Police Week. Deltek will be posting a series of blogs focusing on procurement, spending, and IT initiatives related to police officers and departments nationwide. Today’s blog covers public safety procurement strategies.  
Due to the prevalence of criminals finding new ways to commit crime and disrupt the peace, public safety agencies increasingly require new IT equipment and services. Agencies have taken a variety of innovative measures to ensure both citizen and officer safety, including implementing officer-worn cameras, video surveillance, and predictive policing.
These initiatives typically result in some form of procurement or purchasing strategy. In order to effectively implement new technologies, agencies need to fully understand the methodology and timeframe associated with procurement strategies.
The following is a sampling of solicitations most commonly used in procuring public safety equipment and services:  
  • Request for proposals (RFP) - Most commonly used with large-scale, high-dollar projects such as radio communications, dispatch software, and field reporting.
  • Request for quotes (RFQ) - Most commonly used for commodity-based purchases such as laptops, fingerprint readers, and handheld radios.
  • Request for information (RFI) - Most commonly used to gather information on a new technology and the options available from vendors (non-binding pricing).
The procurement process can last anywhere from three months to one year, depending on the purchase. Typically, commodity-based or low-dollar purchases can be done in a shorter period of time than integration purchases. One thing vendors and government officials should keep in mind is that the procurement process starts well before a solicitation is released. It is only after a need has been identified and funding has been approved that a project can move into the solicitation phase. Below is a visual representation of the procurement process:  

 

Analyst’s Take
 
Public safety procurement takes place every day. Over the past month, public safety agencies have released more than 250 solicitations seeking police equipment and services. This amounts to about 10 procurements a day for equipment and services such as computer-aided dispatch (CAD), records management systems (RMS), 911 phone systems, automated fingerprint identification systems (AFIS), interoperable communications, and more. Agencies need to ensure they have properly outlined their procurement strategy and understand the timeframes associated with any new purchase in order to get the best bang for their buck.

States Taking Different Paths Towards Medicaid Sustainability

As Deltek analysts have been crunching state budget numbers, the health care team has been posting in-depth analysis on Medicaid spending and its impact on budgets. To pay for the rise in Medicaid costs, states are scrambling to shift funding, overhaul programs, and produce creative solutions to close budget gaps. Alabama recently restored $184 million in Medicaid funding by transferring money from the state’s prison system. Like most states in the nation, West Virginia is looking to expand Medicaid managed care; the shift of patients is expected to start in December 2012. The rising cost of health care is the major driver behind the change in tactics, as the legislature budgeted an additional $132 million for next year’s Medicaid spending plan.

Oregon recently received nearly $2 billion from the Center for Medicare and Medicaid Services to begin implementing a coordinated care system. Governor Kitzhaber estimates that if every state Medicaid program implements Oregon’s model, the nation could save $1.5 trillion over 10 years. One thing’s for sure: States facing multimillion dollar Medicaid deficits are faced with an uphill battle, pitting cost savings against quality of care. There will be no easy solution to Medicaid sustainability, but states need to ensure measured, careful system planning before rushing into overhauls and coverage changes that could hurt the very citizens they’re trying to protect.

Inmate telephone systems: market overview

Inmate telephone systems, which allow inmates to make phone calls to friends and family, are installed in every correctional facility in the country. Inmates pay for these phone systems through funds deposited into their trust-fund accounts. This money can be deposited by friends or family via check, money order or through Western Union transfers; some facilities even allow online and phone deposits, or deposits made through a machine in the actual facility. Funds deposited into these accounts can also be used to purchase food and other items from the facility’s commissary, and when an item is purchased or a phone call is made, the cost is automatically deducted from the inmate’s account.

Due to the fact that the cost of phone use depends on the number of calls made by inmates as well as the length of the calls, pricing for inmate telephone contracts is always difficult to predict. These contracts usually award a percentage of the gross revenue from the calls made by the inmates to the winning vendor. Requirements for these types of systems can vary depending on the agency issuing the solicitation, but there are notable similarities in specifications. For most projects, vendors are required to provide the telephones, network services and the call recording and monitoring systems, as well as any verification systems that might be needed. As previously mentioned, phone systems are also often required to be linked to an inmate’s trust-fund account.

Analyst's Take:

Given the pervasive nature of the American prison system and the fact that inmate populations continue to rise, vendors will likely have ample opportunity to win large contracts for inmate phone systems. Corrections spending is up .03 percent since 2010 and is expected to rise even further. Due to the nature of the corrections market, inmate phone systems are usually procured on a county and state level, not city level. While many agencies require similar systems and options, Vendors should keep in mind that it is still important to read the requirements carefully and ensure their proposals address each of the individual requirements. 

For more information on inmate telephone systems, go here.

 

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