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GSA to launch cloud broker pilot

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The General Services Administration is moving forward with plans to stand up a cloud broker contract for acquiring and managing the performance of federal cloud services.

The Department of Homeland Security is one of two agencies that has committed to testing GSA’s cloud broker model in a pilot program expected to launch this fall, said GSA’s Mark Day. Speaking Monday at the annual Management of Change conference in Maryland, Day said GSA will award one contract to test the concept of a broker model and reevaluate the pilot by year’s end to determine how it could be expanded.

GSA has not yet defined all the services a cloud broker would provide, but the National Institute of Standards and Technology defines a cloud broker as “an entity that manages the use, performance and delivery of cloud services and negotiates relationships between cloud providers and cloud consumers.” Technology research firm Gartner defines cloud brokerage as a business model in which an entity adds value to one or more cloud services on behalf of one or more cloud users.

Some question whether the cloud broker model will add value or end up costing agencies more money. In a Feb. 14 letter to Rep. Doris Matsui, R-Calif., GSA’s Lisa Austin said the cloud broker model could be more effective in creating ongoing competition among cloud providers, rather than awarding single contracts for each cloud service.

“Part of the pilot is really understanding what’s the right role, [and] what’s the right process” for a cloud broker model, Day told Federal Times. ”We think we have an idea, but now we’ve got to test it.”

Day made clear what cloud brokers would not do inherently governmental functions, such as contracting. It isn’t clear to what extent brokers would negotiate services between agencies and cloud service providers, but the hope is that cloud brokers will increase vendor competition and reduce pricing and reduce the complexities of acquiring cloud services and integrating them with existing services.

Roughly 15 agencies are part of the cloud broker discussion, Day said. He would not name the second agency that has committed to testing the broker model because the agency has not announced it publicly.

The challenge for GSA has been attracting business to some of its existing federal contracts, rather than agencies launching their own contracts or using other agencies’ contracts. To garner greater use of its strategic sourcing contracts and future use of its cloud broker contract, GSA is meeting with agencies to determine their commitment to participate in market research and use the contracts, Day said. GSA can better leverage the federal government’s buying power, and vendors have an idea of what’s possible, in terms of business volume on a contract, he said.

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