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FCW : April 15, 2015
The Army’s massive procurement vehicle for IT services is gradually moving to a new phase. Vendors say the IT Enterprise Solutions–2 Services (ITES- 2S) contract has been effective because it gives agencies flexibility in the IT services they buy. Given that multiple agencies have placed billions of dol- lars’ worth of orders through the contracting vehicle to date, how ITES-3S pans out could have a big impact on the future of federal IT contracting. The fundamentals ITES-2S dates back to 2006, when the Army component in charge of the contracting vehicle — Computer Hardware, Enterprise Software and Solutions, or CHESS — awarded contracts to 19 firms, five of which were designated small businesses. That pool has since shrunk to 16 firms after three of the five small businesses were acquired. Since then, agencies have issued about $10 billion in con- tracts through the vehicle, said Stephani Antona, a research analyst at Deltek. One of the prime contractors is systems integrator Harris IT Services. The company’s president, Wayne Lucernoni, said the Army has planned ahead and communicated proac- tively with industry in advance of the transition to ITES-3S. Other agencies would do well to emulate the Army’s model of tapping vendors to help shape a procurement vehicle, added Lucernoni, who estimated his firm has generated about $500 million in revenue through ITES-2S since 2007. Can the Army build on ITES-2S’ momentum? BY SEAN LYNGAAS The key to the ongoing success of the Army’s IT contracting vehicle is incorporating cloud and cybersecurity solutions into the next iteration 28 April 15, 2015 FCW.COM ExecTe c h The Army’s IT Enterprise Solu- tions-3 Services contract will allow federal agencies to buy: • Cybersecurity services • Information assurance and information systems security • IT services • Business process reengineering • Enterprise design, integration and consolidation • Network/system operation and maintenance • Telecommunications/system operation and maintenance • IT supply chain management • IT education and training And although the Army’s Computer Hardware, Enterprise Software and Solutions office has stressed that nothing is final until the request for proposals is issued, ITES-3S is expected to include the following provisions: • The contract will have a five- year base with one four-year extension option. • It will feature a “restricted suite” of 14 small-business contractors and an “unrestricted suite” of the top 10 contractors regardless of size. • All task orders under $150,000 will go to companies in the restricted suite. • Contractors in the restricted suite must be allowed to submit a capability brief for all task orders under $5 million before those orders are issued as unrestricted. Source: CHESS presentation, November 2014 ITES-3S at a glance 0415fcw_028-030.indd 28 3/25/15 9:32 AM
March 30, 2015
April 30, 2015