Suppliers that received contract awards include:
· State website: CapTech Ventures
· Hosting: AIS Network, Cyberdata Technologies and Sitevision
· O&M: Broadpoint Technologies and Cyberdata Technologies
Contract awards followed in-depth evaluation of responses to VITA’s three requests for proposals (RFPs) for eGov services. The RFPs were publicly issued in November. The three RFPs separately include development of 1) the state website, www.virginia.gov, 2) hosting and 3) operations and maintenance (O&M) of Web applications. Each eGov RFP was developed and evaluated by collaborative, multi-agency workgroups. Supplier responses were scored according to standard, pre-established benchmarks. Awards were made based upon demonstrated, measurable benefit to the Commonwealth. Contracts are for a period of three years with provision for two one-year extensions.
Virginia Interactive (VI), a division of NIC Inc., has developed and maintained the state website since 1997, and also has offered Web and application development and maintenance and hosting to various public customers. Its contract expires Aug. 31 and is not eligible for extension under state procurement regulations. VI will continue to provide services for a limited time following expiration of the contract to ensure continuity as state agencies transition to new service providers.
Thanks in part to the firm’s significant expertise and dedication, Virginia frequently has been noted as a national leader in provision of eGov services to citizens. I want to personally thank VI for their exemplary performance during the previous 15 years. However, VI is not included among the suppliers awarded contracts. VI could not agree with new contract terms and conditions.
I am pleased to share with you the value to the Commonwealth of the approach we have taken. In re-procurement, there are numerous benefits to de-bundling, including:
· Greater transparency in related revenue and expenditures, including how funds are collected and reinvested
· Opportunities for agencies to create cost efficiencies for citizens/customers while generating new internal revenue streams, including a cost advantage for transaction fee-based customers
· Additional choices in scalable hosting solutions for Web and non-Web-based applications and data
Now that contracts have been issued, you can make the choice most advantageous to your business needs and begin specific transition planning to new contracts. We are planning a vendor fair and will share the date with you as soon as details are finalized so that you can talk with representatives of the companies awarded contracts. Please contact your customer account manager (CAM) as needed for assistance with this important project.
NIC Inc, the parent company of Virginia Intractive, released the following:
Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure
The three RFPs were for (1) web site services (the portal front page), (2) hosting, and (3) operation and maintenance of existing online applications (O&M). Development of new online applications was not bid out, but will be the responsibility of each agency. Funding for all services under the new contracts, as well as for development of new online applications, will be through traditional budget appropriations.
VI responded to the RFPs and was selected for negotiations, along with other contractors, but could not come to an agreement with the Commonwealth on terms that reflected acceptable business risk, in VI's judgment, comparable to the protection afforded its business and intellectual property under the current enterprise-wide model.
VITA, the contracting agency for the new contracts as well as for VI's current contract has notified VI that it intends to utilize VI for "transition services," as provided for in VI's expiring contract. Transition services are available for up to one year following the contract expiration on August 31, 2012.
NIC Inc. does not intend to amend its financial guidance for 2012 as a result of these events. Although second in population among the states served by subsidiaries of NIC, VI revenues account for approximately 4% of total NIC consolidated revenues for the year ended December 31, 2011.