GSA Enterprise Infrastructure Solutions ( - PowerPoint Presentation

GSA Enterprise Infrastructure Solutions (EIS) 1102 Briefing February 16, 2017 Office of Information Technology CategoryFederal Acquisition Service U.S. General Services Administrationgsa.gov/eisinteract.gsa.gov/EIS Enterprise Infrastructure Solutions (EIS) 1

Presenters2Introduction (Jim Connors, Telecom Division Director) Welcome (Keith Nakasone, Acquisition Executive) Business Context (Bill Lewis, Customer Engagement Director)EIS Overview (Tim Horan and Dinaira Borba, EIS COs) EIS Pricing (Bob Sodano, EIS Pricing Chair) Questions and Answers (EIS Team) Closing (Jim Connors)

February 16, 2017 Enterprise Infrastructure Solutions Business Context

4Enterprise Infrastructure Solutions – Purchasing Context By March 2020, approximately $2.2B in network and communications services need to be transitioned from expiring contracts (Networx, WITS, and Regional Local Service Agreements) to Enterprise Infrastructure Solutions (EIS) Three year extensions on Networx and the Regional Contracts have been awardedTransition is about continued operations and money

Purchasing trends – Network Services:5Program Purchasing (2016)Purchasing Trends Networx$1.8BUp 33% since 2013 dominated by increased demand for bandwidthRegional Services (WITS III and Local Service Agreements)$0.4BDown 18% since 2013 driven by decreased demand for legacy voice services (POTS/ISDN) Total $2.2B In 2007, less than $1B in network services needed to be transitioned

Supplier Mix – Networx:SupplierPurchasing (FY16)Share of purchasing (FY16) Verizon$775.8M43.4% ATT$719.5M40.2%CTL$253.5M14.2%LVLT $26.7M1.5% Sprint $15.9M 0.9% 6

Service Mix - NetworxServicePurchasing (%)YoY Growth(%) VPNs48.8 11.3Managed Services11.68.7Private Line7.17.6Toll Free 7.1 3.9External Bandwidth 3.5 5.0 MTIPS 2.1 36.5 Remaining Services 19.8% 11.1 Total 10.4 More bandwidth, managed services, security related services Path of least acquisition resistance Wireless Services 7

Support for transition:Your agency manager is your business partner who will get the resources of GSA to support your timely transitionDocuments to read:GAO-14-63 (Report on the last transition)Fair Opportunity and Ordering GuideTransition Handbook Management and Operations HandbookTransition Strategy and Management Plan (TSMP)www.gsa.gov/EISSolicitation and Statement of Work Assistance 8

Enterprise Infrastructure Solutions (EIS) from GSAThe Governmentwide Telecom Solution Tim Horan and Dinaira Borba Office of Information Technology CategoryFederal Acquisition Service U.S. General Services Administrationgsa.gov/eisinteract.gsa.gov/EIS Enterprise Infrastructure Solutions (EIS) 9

AgendaWhat is EIS?Benefits, Acquisition ApproachWho can use EISDPA ProcessOrdering Contracting Officer ResponsibilitiesContracting Officer RepresentativeEIS Services and ScopeAgency actions to use EISTask Order and Fair Opportunity ProcessGSA Training, and Tools 10

What is EIS? 11 NS2020 Government’s strategy to meet future federal information technology and telecommunications needs EIS Enterprise Infrastructure Solutions is the acquisition contract and foundation for implementing the NS2020 strategy

EIS Acquisition Approach12 Global Telecommunications Acquisition $50B Ceiling Multiple Award / Indefinite Delivery Indefinite Quantity (IDIQ) Interagency Acquisition Fixed price and Time & Materials w/ Economic Price Adjustment Supports Telecommunications Inventory Management 15-year Period of Performance 5-year base, two 5-year options Mandatory price resubmission for option periods 5-year pricing matches industry best-practices Economic price adjustments tied to BLS indices Last 3 years of contract will be used for transition to eliminate need for contract extensions

Who Can Use EIS?The EIS program is available to authorized contract users. These include Federal agencies as well as other entities listed in OGP 4800.2I, Eligibility to Use GSA Sources of Supply and Services. Before issuing task orders on the EIS contract, agency Ordering Contracting Officers (OCOs) must complete training and receive a Delegation of Procurement Authority (DPA). If an organization does not have contracting officers, it may identify other authorized officials for this delegation. A Delegation of Procurement Authority (DPA) is a GSA certification that enables an OCO to order from EIS and establishes the roles between the GSA Contracting Officer and the Agency OCO. 13

DPA ProcessComplete DPA training (Defense Acquisition University (DAU)) Submit the DPA Request Form ( EIS website)Email a Training Completion Certificate to GSA Familiarize yourselves with the roles established in the Delegation Letter. A GSA Contracting Officer will issue a signed Delegation of Procurement Authority Agreement Letter.Each agency may have multiple OCOs, all OCOs will need to take training and request DPA. 14

Ordering Contracting Officer ResponsibilitiesComply with terms and conditions of the EIS contract as well as with FAR and agency guidance Include the signed DPA letter in any task order solicitation Verify/obligate funding and comply with appropriation law and financial policy Prepare the task order solicitationEnsure all contract holders are provided a fair opportunity to be considered for award (over the micro-purchase threshold)Award task order(s)Determine prices fair and reasonable for catalog items, task order unique CLINs and individual case basis CLINsMaintain an accurate record of Task Order Inventory15

OCO: Task Order Management/Administration ResponsibilitiesAssign a Contracting Officer’s Representative (COR) and designate the COR’s specific responsibilities and extent of authority based on FAR and Agency RequirementsMonitor and evaluate contractor performance; enter performance data into the Past Performance Information Retrieval System (PPIRS) and/or other systems, as requiredEnter task order data into the Federal Procurement Data System (FPDS) as applicableRespond to Freedom of Information requests, protests, disputes and claims at the task order levelEnsure prompt payment of contractor invoices Administer task order modifications 16

Contracting Officer Representative (COR)Replaces DARs under EIS May place service orders May accept or reject services ordered and verify that services meet technical requirements May confirm funding availability prior to service orderingMay execute other duties (e.g. billing disputes, past performance), as defined by the OCOCORs MAY NOT bind the government by obligating funds or by issuing or modifying task orders 17

EIS Services and Scope18

Geographical Scope of EIS19Use Core-Based Statistical Areas (CBSAs) defined by OMB CBSAs are U.S. areas with 10,000 or more peopleIncludes territories and possessions 929 CBSAs in U.S. 925 currently invoicing under existing GSA Telecom contracts To be eligible to receive EIS task orders, contractors must O ffer all mandatory services in 25 of the top 100 CBSAs Receive an EIS contract award or contract modification to include CBSAs they plan to support

Task Order Funding 20Funding must be obligated on a task order by an OCO or an individual authorized to bind the ordering entity (e.g., Indian tribe or non- government entities). Initial funding must cover all services ordered in the base period. Additional funding must be provided when an option period is exercised. Taxes, fees and surcharges for telecommunication services may run as high as 22% so the OCO should ensure that funding is available.

Task Order Process21 Planning Complete DPA Register with GSA for Access to Tools (Pricer, etc.) Develop Acquisition Plan Secure Funding Develop Requirements Solicitation Submit Document to GSA for Scope Review Develop Solicitation Documents Fair Opportunity and Task Order Award Conduct Fair Opportunity Fairly Evaluate Proposals Award Task Order Respond to requests for debriefings/protests (as applicable) Administration Winning Contractor provides Task Order information to GSA Place Service Orders (if required) Administer and Close Out Task Order

Fair Opportunity22Ordering Contracting O fficer (OCO) MUST provide a fair opportunity (FO) to all awardees in accordance with FAR 16.505 FAR 16.505(b)(1)(iii)(A) states “ Each order exceeding the simplified acquisition threshold shall be placed on a competitive basis in accordance with paragraph (b)(1)(iii)(B) of this section, unless supported by a written determination that one of the circumstances described at  16.505 (b)(2)(i) applies to the order and the requirement is waived on the basis of a justification that is prepared in accordance with  16.505 (b)(2)(ii)(B) .”

FAR 16.505 Fair Opportunity Dollar Levels23Awards above $3500 and below Simplified Acquisition Threshold (SAT) ($150K) The contracting officer need not contact each of the multiple awardees under the contract before selecting an order awardee if the contracting officer has information available to ensure that each awardee is provided a fair opportunity to be considered for each order.

FAR 16.505 Fair Opportunity Dollar Levels (cont.)24 Awards above SAT and below $5.5M Provide a fair notice of the intent to make a purchase, including a clear description of the supplies to be delivered or the services to be performed and the basis upon which the selection will be made to all contractors offering the required supplies or services under the multiple-award contract; and Afford all contractors responding to the notice a fair opportunity to submit an offer and have that offer fairly considered.

25For orders exceeding $5.5M, the requirement to provide all awardees a fair opportunity to be considered for each order shall include, at a minimum —A notice of the task or delivery order that includes a clear statement of the agency’s requirements; A reasonable response period; Disclosure of the significant factors and subfactors, including cost or price, that the agency expects to consider in evaluating proposals, and their relative importance; Where award is made on a best value basis, a written statement documenting the basis for award and the relative importance of quality and price or cost factors; and An opportunity for a postaward debriefing in accordance with paragraph (b)(6) of this section. 16.505 Fair Opportunity Dollar Levels (end)

EIS Task Orders26FAR Part 2.101 defines a TO as “an order for services placed against an established contract or with government sources.”Task orders placed under indefinite-delivery contracts must contain the following information: Date of order Contract number and order number For supplies and services, contract item number and description, quantity, and unit price or estimated cost or fee Delivery or performance schedule Place of delivery or performance (including consignee ) Any packaging, packing, and shipping instructions Accounting and appropriation data Method of payment and payment office All services and CBSAs must be on the EIS contract prior to the award of a task order containing those services and locations .

Service Orders and EIS27 Telecom industry historically uses Service Orders (SOs) to order/modify services Agency OCOs and TO CORs can place SOs against EIS TOs SOs must be within scope of the TO and EIS contract, and not exceed TO funding SOs can be issued to give a contractor delivery requirements details for agency-specific services Historically, SOs authorized start , change, or discontinuation of circuits, trunks, links, or systems …. amend previously issued SOs and effect administrative changes …. include basic circuit design information for new or changed …. procure specific devices and ancillary equipment necessary to install circuit or services.

Special EIS CLINs28 EIS gives agencies and contractors flexibility to customize TOs to meet unique requirements, yet still maintain inventory records through billing. To accommodate special requirements, EIS includes fixed-price contract CLINs and: Individual Case Basis (ICB) CLINs Task Order Unique CLINs (TUCs) Catalog CLINs When establishing a price, ICB, TUCs and Catalog CLINs do not require modifying the EIS contract. Agency OCO must determine the awarded prices are fair and reasonable.

EIS Option Years Pricing29 EIS contains an Economic Price Adjustment – Price Refreshment clause (H.19) that indexes the contract prices to a series of Bureau of Labor and Statistics (BLS) indices. The contract base period prices have defined prices. However, the option periods pricing may increase or decrease depending on the inflation. Accordance with FAR 17.207(f)(2) - Option periods have been evaluated as part of the initial competition and are exercisable at an amount reasonably determinable from the terms of the basic contract. TOs P eriod of Performance - POP may be extended through the optional periods.

GSA Training and ToolsDPA Training (on DAU)EIS FAQ’sFair Opportunity and Ordering Guide (FOOG) (on Interact)Management and Operations (MOPS) Handbook (on Interact)SOW Assist and Solicitation Template (on Interact)Telecom 101 (Instructor led) Service Mapping to EIS and Pricing Transition Handbook (on EIS website) Transition Website: gsa.gov/EISTransitionEIS Website: gsa.gov/EIS Interact: interact.gsa.gov/EISWhite Papers EIS RFP30

Network Services 2020 Enterprise Infrastructure Solutions (EIS) EIS Agency 1102 Introduction to EIS Pricing StructuresFebruary 16, 2017 Office of Information Technology Category (ITC ) Federal Acquisition Service (FAS) General Services Administration (GSA)

Networks and Pricing Point of Presence (POP) Customer Location Access Three Fundamental Pricing Components Based on the Physical Layout of the Network Transport 32

Pricing Terms and Definitions Example: VPN Service Pricing Elements 50MB Ethernet Dedicated Access NRC CLIN AA00210 and MRC CLIN AA00310 100MB Ethernet Dedicated Access NRC CLIN AA00215 and MRC CLIN AA00315 Ethernet 100MB Port MRC CLIN EIS IP/MPLS VPN Backbone (“the cloud”) Transport Access Access POP POP Logical path Ethernet 50MB Port MRC CLIN Agency NSC ATLGAKA PHUB EN_Area1 Agency NSC GRNSWYAN PHUB EN_Area1 33

Pricing Terms and Definitions Point of Presence (POP) Connection point where an agency’s communication initially enters a vendor’s networkServing Wire Center (SWC) A physical facility location (termination point) for wires joining a set of user locations within a given geographic area A serving wire center is associated with each customer location A term used under Networx for a local access provider facility where multiple user locations are connected and aggregated for switching Physical Concentration Location (PCL) The EIS term that replaces and expands SWC Incorporates new types of interconnection points 34

EIS Access Pricing Access Arrangement An arrangement to transport access traffic between a customer location and a contractor’s POPA single access arrangement can be provided for multiple network transport services Customer/agency location by contractor will determine what access technologies are available Access types defined and priced under EIS Wireline Ethernet Cable Fiber Wireless Commercial Satellite (mobile and fixed) 35

Pricing Terms and Definitions Common Language Location Identifier (CLLI) code 11-character code used to specify a telecommunication provider’s equipment location (e.g., a serving wire center or a physical concentration location ). Standard mechanism used by network providers to communicate building information Network Site Code (NSC) The 8-character portion of the CLLI code that identifies the physical location of a building with network functionality 36

Four Basic Charging Elements for EIS Services Non-Recurring Charge (NRC) – one-time charge e.g., service installation charge, capacity upgrade charge, equipment charge, etc.Monthly Recurring Charge (MRC) – a charge billed every month that the service/capability is installed e.g., internet access charge, private line charge between two agency locations 37

Four Basic Charging Elements for EIS Services Usage Charge – charge billed every month based on a quantity or capacity consumed per unite.g., voice usage per minute or fraction thereof; cloud storage capacity used per hour; wireless data capacity used per month Features Charge – charges for additional capabilities provided to accompany a purchased service May be MRC, NRC, or Usage charge e.g., voicemail, language translation service, conference recording 38

Special EIS Pricing Concepts – CBSAs Represents the means for geographically defining service “coverage” under EISDefined by Office of Management and Budget based on population density (929 CBSAs)To bid a CBSA Offeror must offer prices for all mandatory services (Voice, Ethernet, MNS, VPNS), plus access and NS/EPGSA groups government locations and defines bidder eligibility requirements by CBSA Top 100 CBSAs account for vast majority of government business. Must win 25 of top 100 CBSAs. G reater competition for federal telecommunications achieved by reducing minimum coverage requirements Dynamic EIS feature allows contractors to add non-bid CBSAs after award 39

Special EIS Pricing Concepts – CBSAs CBSA topology 40

EIS Services, CLIN IDs, and Service IDs Service Name CLIN ID Service ID Service Name CLIN ID Service ID Service Name CLIN ID Service ID Virtual Private Network Service VN VPNS Co-located Hosting Service CH CHS Managed Security Service MS MSS Ethernet Transport Service EN ETS Infrastructure as a Service IS IaaS Managed Mobility Service MM MMS Optical Wavelength Service OW OWS Platform as a Service PS PaaS Audio Conferencing Service AC ACS Private Line Service PL PLS Software as a Service SS SaaS Video Teleconferencing Service VC VTS Synchronized Optical Network Service SO SONETS Content Delivery Network Service CD CDNS DHS Intrusion Prevention Security Service DI IPSS Dark Fiber Service DK DFS Wireless Service WL MWS Access Arrangements AA AA Internet Protocol Service IP IPS Commercial Mobile Satellite Service CM CMSS Service Related Equipment EQ SRE Internet Protocol Voice Service VI IPVS Commercial Fixed Satellite Service FS CFSS Service Related Labor LA LABOR Circuit Switched Voice Service VS CSVS Managed Network Service MN MNS Cable and Wiring CW CW Toll Free Service TF TFS Web Conferencing Service WC WCS National Security and Emergency Preparedness NS NS/EP Circuit Switched Data Service CS CSDS Unified Communications Service UC UCS General GN GEN Contact Center Service CC CCS Managed Trusted Internet Protocol Service MT MTIPS 41

Service CLIN Each service is identified by a 7-character Contract Line Item Number (CLIN) Two-letter prefix identifies the service (see previous table)5-digit suffix identifies additional detail about the service (e.g., charging type, speed, feature, etc.) 42

Individual Case Basis CLIN ICB (Individual Case Basis) CLIN – identifier for an EIS service or product that is defined in the EIS contracts, but not priced E.g., high speed access line/circuit not generally available at a standard price; Network Operations Center 43

Task Order Unique CLIN TUC (Task Order Unique CLINs) can be one of two typesIdentifier for combining/bundling multiple CLINs into a single CLIN for pricing – the TUC For example, VPN access for agency small and large locations bundled for each size Recruiting center with 3 voice lines (small) Regional agency locations with dozens of voice lines (large) Price for the TUC bundle only is specified Custom solutions – not fully defined or priced An entire enterprise network The price is unique to that agency’s requirements and TO Note that all TUCs are ICB since they are unique to a given TO 44

Special EIS Pricing Concepts – PHubs Pricing Hubs (PHubs) – Price groupings used only for pricing purposes under EIS, not a physical entitySimplifies pricing and pricing administration Unique identifier assigned to multiple locations that have the same access service type at the same price Allows contractors to assign the same price to many different locations using a single price element Also can be used to provide deep discount pricing for a single location New government locations can be added without a contract mod Contractor simply associates a new location with an existing PHub Existing locations may only be moved to less expensive PHubs 45

SITES01 PHUB PHub Examples: Uniform and Targeted Access Pricing Uniform pricing for 8 agency locations Agency Location Network Site Code (NSC) CB1 CB2 CB3 CB 4 CB5 CB6 CB7 CB8 Provider Physical Concentration Location (PCL) DENVCO01 HERNVA03 RESTVA01 TYSOVA04 ALBANY01 BLDGSPECIFIC#1 PHUB 26FEDPLZ Targeted pricing for a single location 46

Catalog Pricing Catalogs Developed to allow for the rapid change of products and services Latest technology is available almost immediately Helps reduce contract modifications Contractors maintain their catalogs in accordance with the terms of their EIS contracts EIS Catalog Services Wireless domestic to non-domestic Wireless international mobile roaming Commercial Mobile Satellite Service Managed Security Service Service Related Equipment (SEDs under N etworx) C loud services (SaaS, PaaS, IaaS and CDNS) 47

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Resources49 Website gsa.gov/eis and interact.gsa.gov/EISUpdated Sections of EIS RFPFair Opportunity and Ordering Guide EIS Management and Operations Handbook FAQs White Papers Other Useful Tools Today’s Presentation GSA Points of Contact: gsa.gov/portal/content/105587 or the general mailbox is ITCSC@gsa.gov