Although many Federal/state agencies/departments have some enterprise software licensing capability, most do not have a robust capacity. In the Department of the Navy, the DON CIO has developed such an approach, which coupled with a mature Strategic Sourcing methodology, will save conservatively $350+ million over FY11 to FY14. This Strategy, called the Dept of the Navy Enterprise Commercial IT Strategy, will be applied to all Dept COTS software, IT hardware, and related IT services.
Soft Savings/Cost Avoidance:
• Greater efficiency by reducing 100’s of duplicative procurements and management related activities.
Other Key Benefits:
• Improve delivery time of IT capability to warfighter/user
• Improve compliance with DoD/DON policy;
• Structure policy compliance into acquisition process;
• Establish organizational buy-in, improved policy and process development and deployment;
• Identify and institute best practices and other solutions at the organizational level; and
• Establish, for the first time, a coherent strategy allowing the DON to strategically manage its IT assets and services across the enterprise.
By establishing an IT Management Team to include key senior leaders of the Department's functional areas (IT, Financial, Acquisition, Program Management) as well as key personnel working in these functional areas throughout the 650,000 person Department and instituting the processes delineated in the recently developed Concept of Operations (CONOPS), the DON CIO and its key IT partners, will:
o Leverage existing distributed pockets of expertise across the DON, reducing the need to establish a costly workforce pool; and
o Align horizontally and vertically the key IT stakeholders across the DON.
This enterprise approach implements processes designed to lower Total Cost of Ownership (TOC) and improve life cycle management by identifying and coordinating commercial IT requirements and sourcing activities at the DON enterprise level.
This same strategy could be replicated across the Federal Government using resources such as the Information Resources Management College, National Defense University; Defense Acquisition University, and other recognized sources of education. Additionally, the Federal CIO Council could launch a task force to study, develop and launch IT COTS software, hardware, and related services focused Strategic Sourcing Initiative to guide the departments and agencies in their implementation of the high ROI strategy.