Air Force Leases Software

An Air Force unit has become the first agency to acquire computer products through a lease under the General Services Administration schedules.

In the $17 million deal, the Air Force unit got a discount of more than 80 percent by opting for the lease-to-purchase arrangement instead of buying its software licenses through the schedule, according to GSA officials. The supplier is BTG Inc. of Fairfax, Va., which beat out the competition to make the first lease deal under a much-touted GSA innovation.

GSA officials have promoted leasing as a means through which agencies can avoid amassing inventories of obsolete hardware and software. But the Air Force acquisition will result in the service's owning the software, according to Mary Souther, BTG's vice president for strategic programs. The Air Force will get product upgrades, along with on-site maintenance, during the three-year lease period, she said.

The Air Force unit acquiring the software is the Medical Systems Implementation and Training Division (MEDSITE), part of the Air Force Materiel Command at Brooks Air Force Base, according to GSA officials in Kansas City, Mo. MEDSITE will install products from Informix Software Inc., which specializes in relational database systems, at 180 locations worldwide, they said.

GSA's Federal Acquisition Services for Technology (FAST) program in the agency's Greater Southwest and Heartland regions negotiated with BTG on behalf of MEDSITE. GSA said the deal was concluded in 15 days.

BTG's Souther said leasing allows agencies to spread out their payments and finance major infrastructure improvements over more than one year. A financial services company, FSM Inc. of McLean, Va., will finance the Air Force acquisition. FSM has arranged to pay the manufacturer for the software licenses at the beginning of the lease term, and this upfront payment prompted the manufacturer to discount the product substantially, Souther explained. She said agencies could expect to get discounts of 50 percent to 60 percent through IT leasing arrangements.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


When you download a report, your information may be shared with the underwriters of that document.