Department of State

Consolidating IT contracts across agencies achieving a whole-of-government approach to cost savings

U.S. Mission Indonesia consolidated nineteen IT contracts from eleven departments in six agencies (DoS, DoD, DoJ, FCS, DHS, and DoA). This whole-of-government approach increased our purchasing power with our local Internet Service Provider (ISP). By presenting a unified approach to contract solicitation, we increased our purchasing potential and achieved a realized cost savings of $300,000 a year and $1.5 Million over the five year contract (base year with four options years). The majority of the cost savings comes from internet connections. Prior to consolidating the contracts, each agency procured an internet connection at $33,000 a year for a 512k (0.5 MB) bandwidth. With the consolidated contract, each agency now pays $6,500 a year and receives a 6 MB connection. The unified contract increases communications bandwidth by 14,500%.

 

Consolidating the 19 contracts into one also saves the Embassy Procurement section valuable time every year. With the base year and four option years currently setup, the procurement section is not competing 19 contracts every September, they simply sign the contract option for that year. The consolidated contract also covers the Consulates in Medan and Surabaya.

 

Consolidating procurement for IT communication resources across agencies in Indonesia has proven successful and cost efficient.

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Idea No. 11691