Some agencies spending 90-percent of IT budget on legacy systems — report
October 21, 2016
Some agencies are spending 90 percent or more of their IT budgets on operations and maintenance, the report released last week found.
David Stegon was a staff reporter for FedScoop and StateScoop from 2011-2014.
The Navy signed an enterprise licensing agreement with Microsoft valued at $700 million.
“This agreement, valid through 2015, consolidates previous Microsoft enterprise licenses; and, therefore, optimizes cost savings by leveraging the full purchasing capacity of the department,” the department said in a statement.
The announcement falls in line with a February memo from department Chief Information Officer Terry Halvorsen, who called for the mandatory use of DON enterprise licensing agreements.
The statement from the Navy:
Per the recently signed Microsoft Department of the Navy enterprise licensing agreement, all procurement of Microsoft brand software licenses including software assurance (SA), SA only, and subscriptions and SA-step up (SASU) for desktop and server based products must be acquired through the Microsoft DON enterprise licensing agreement (ELA) if that product is offered by the DON ELA.
This agreement, valid through 2015, consolidates previous Microsoft enterprise licenses; and, therefore, optimizes cost savings by leveraging the full purchasing capacity of the department. Acquired licenses and SA must be compatible and interoperable with existing DON hardware and technology equipment.The maximum dollar value, including the base period and two option periods, is $700 million.
Ordering guidance: All Navy and Marine Corps procurement actions for information technology software must go through their respective processes identified at the Program Executive Office for Enterprise Information Systems PMM-110 portal page. Since this is a dynamic environment, other policies may be added with little notice. Information about ordering products via DON ELAs can also be found at this site.
Use of DON ELAs, where available, is mandatory by all DON organizations and programs per the joint memo "Mandatory Use of DON Enterprise Licensing Agreements," which was signed Feb. 22, 2012, by the Department of the Navy Chief Information Officer, the Assistant Secretary of the Navy for Research Development and Acquisition, and the Assistant Secretary of the Navy for Financial Management and Comptroller.