Office of the Secretary of Defense on the Hunt for a BPM Suite — RSVP by 4 p.m. Today for OSD’s Industry Day

Rick Antonucci_65x85by Rick Antonucci, Analyst

A new opportunity has sprung up for BPM manufacturers. The Office of the Secretary of Defense released a Sources Sought notice on FBO for a Business Process Management suite last Tuesday. OSD’s Program Development and Implementation office within the Defense Procurement & Acquisition Policy Office is interested in sourcing a COTS or GOTS BPM suite to support DOD procurement efforts. To that end they will be hosting an industry day in McLean, VA on September 19th with RSVPs due on the 16th with second industry day anticipated in mid to late October.

Right now OSD is looking to conduct market research to gather information from industry on available solutions for BPM suites with Full and Open competition anticipated down the line. Responses to the sources sought notice are due on September 26th.

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FY15 Defense IT Budget Forecast: Cloudy with No Chance of Sequestration

Lloyd McCoy_65x85by Lloyd McCoy Jr., Consultant

The FY15 base DOD budget request came in at $495.6 billion, (about even with FY14) but more importantly, it’s under OMB’s budgetary caps, meaning sequestration isn’t in the cards for this year. Diving into the DOD IT budget, we see a 6% drop from FY14 to about $36.4 billion; fortunately, much of this decline has to do with a shrinking workforce and cost-savings generated by earlier IT investments.

Yes the budget is down 6% from last year, but before you go running for the hills, it’s important to remember the following: while the IT budget is reduced from FY14, agencies that purchased software are continuing to purchase software— and with no sequestration and government shutdown in sight, we’re positioned to see a better FY15 than we did FY13.

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Year-End Tip: Ask, “Is the Right Amount of Money in the Right Account?”

Steve Charles_headshot _7-23-2013_65x85by Steve Charles, Co-founder and Executive Vice President

During typical years, the feds spend about a third of the budget in the last quarter. While sales for complex deals and engagements are off, sales for easy to buy commercial items are staying strong. So, what can you do to be successful this September? Make sure to ask one of my favorite closing questions: “Is the right amount of money in the right account?”

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How to Sell Your Products to the Army in FY15

Stephanie Headshot 65x85by Stephanie Meloni, Senior Analyst

Despite declining budgets, the Army remains one of the largest IT organizations in the world, and it still has the largest IT budget of all the services. Army’s FY15 budget request represents about a 10 percent reduction in funding US Army Logofrom FY14 enacted levels. Many of the IT initiatives the Army is implementing to modernize their systems and networks deal with consolidation, simplification, and standardization – and this accounts for some of the reduced funding levels, since there aren’t as many costly legacy systems to maintain. So, for the COTS community, this reduction in funding isn’t all bad news, especially if your products can help the government operate more efficiently. In FY15, many of the IT modernization efforts will focus on making systems interoperable as well.

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DCMA RFI Offers Enterprise Opportunities

Rick Antonucci_65x85by Rick Antonucci, Analyst

The Defense Contract Management Agency (DCMA) released an RFI for Legacy System Modernization earlier this month with a quickly approaching August 4th response date. The RFI seeks to obtain modernization of the Mechanization of Contract Administration Services (MOCAS) system. The system, which dates back to the 1950s, is an enterprise solution that provides contract management and disbursement and management of funds. It is 65% owned by DCMA and 35% owned by the Defense Finance and Accounting Service (DFAS).

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GSA RFI Requires O&M, Middleware & Hosting Support

Mohamad Elbarasse_headshot_7-23-2013_For WordPressby Mohamad ElbarasseAnalyst

GSA recently extended the response date for the Pegasys Hosting and Operations and Maintenance contract to August 5, 2014. GSA’s primary goal is to find application and support models that will lower the overall hosting and O&M costs of Pegasys, GSA’s version of Momentum Financials and core financial system. Pegasys supports funds management (budget execution and purchasing), credit cards, accounts payable, disbursements, standard general ledger, and reporting at the GSA.

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Lower Budget Doesn’t Mean Less Opportunity at HHS

Christopher Wiedemann_headshot-65 x 85by Chris Wiedemann, Senior Analyst

Last week, we talked about looking forward to FY15 and beginning to make some strategic decisions about sales targets at your agencies. Well, if you sell to HHS and you followed that advice, you may have noticed something a little concerning – namely, the department’s requested IT budget of $8.6 billion is significantly down from their FY14 enacted level of $9.6 billion. At first glance, it looks like the department may be getting squeezed in the aftermath of the Affordable Care Act rollout, and a lower budget almost always looks like bad news to industry. If HHS is a customer, you’re probably asking yourself how much the projected budget decrease will affect your total addressable market.

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