Federal Acquisition Service U.S. General Services Administration Telecommunications Expense Management - Wireless Russ Peery – GSA TEM COTR Jordan Weinstock – Booze Allen Hamilton Todd McMillen – iSys June 2009

Federal Acquisition Service U.S. General Services Administration 2 Federal Strategic Sourcing Initiative  OMB implemented strategic sourcing on May 20, 2005  Share best practices and build the strategic sourcing community  Establish mechanisms to increase savings, value, and socio-economic participation  Avoid unnecessary duplication of effort  Three commodity teams were established.  Express and Ground Domestic Delivery Services  Wireless Telecommunications Expense Management  Office Supplies  difying an existing slide just highlight the text and replace it with new text.  Don’t move stuff around and you’ll be fine

Federal Acquisition Service U.S. General Services Administration 3 Telecommunications Expense Management Services  January 2006, the FSSI Wireless team began gathering spend and commodity inventory data from the participating agencies  Market research and analysis determined that the federal agencies were not effectively managing their wireless assets. Unknown inventories and spend.  Conducted an Industry Day (3 rd Quarter FY 06)  To mitigate the issues facing the agencies on their wireless programs, the team determined a Wireless TEM solution was appropriate.

Federal Acquisition Service U.S. General Services Administration 4 Primary Objectives - TEM  Establish a common procurement vehicle through which agencies may procure and utilize TEM Services  Lower total costs associated with TEM while achieving similar or improved service levels versus today  Utilize business intelligence to better support overall decision making and performance management

Federal Acquisition Service U.S. General Services Administration 5 Key Features  Solicitation Number: 7TF  Contract Type: Indefinite Delivery/Indefinite Quantity (IDIQ)  Firm Fixed Price - Multiple Award Contract  Partial small business set-aside  Contract Maximum: $93M  Period of performance: 2 years with 3 one year options  Contract awarded 11 January to:  Avalon Technologies, Inc - GS07T08BGD0002  Booz-Allen Hamilton - GS07T08BGD0003  iSYS LLC - GS07T08BGD0001

Federal Acquisition Service U.S. General Services Administration 6 Benefits  Optimized rate plans/lower effective per minute pricing  Accurate billing and payment  The ability to identify and eliminate unused devices/lines  Improved compliance to rate plans and related wireless spend management policies  Improved asset management  Management of bill related issues and conflict resolution

Federal Acquisition Service U.S. General Services Administration 7 Core Services  Wireless Service Contract/Agreement Administration  Inventory Management  Invoice Management and Audit  Rate Plan Optimization  Management Reporting

Federal Acquisition Service U.S. General Services Administration 8 Optional Services  Contract Optimization  Ordering and Procurement  Bill Payment  Dispute Recovery  Device Disposition/Disposal

Federal Acquisition Service U.S. General Services Administration 9 Jordan S. Weinstock Booz Allen Hamilton June 2009

Federal Acquisition Service U.S. General Services Administration 10 Session Agenda  Need for Wireless TEM  Case Study—U.S. Postal Service  Lessons Learned

Federal Acquisition Service U.S. General Services Administration 11 Wireless devices and services generate tangible benefits, but also introduce new challenges  Mobile spend is quickly outpacing fixed telecom spend  Many organizations lack the required resources—tools, policies, processes, FTEs—to fully support mobility  Mobile devices often blur boundaries between business and personal use  Proliferation of smartphones poses increased data security risks and increases complexity to support Top Mobility Management Challenges

Federal Acquisition Service U.S. General Services Administration 12 According to Aberdeen, telecom is one of the top three operating expenses—requiring proactive management  Do you have a comprehensive enterprise policy for wireless services and mobile devices?  Do you conduct detailed reviews of your rate plans and contracts?  Do you have an accurate inventory of mobile devices, including assignment to staff?  Do you have sufficient FTEs to effectively support procurement, invoice processing and help desk operations?  Do you have automated controls to monitor policy compliance, optimize cost performance and identify potential waste, fraud and abuse? Key Telecom Expense Management Components Wireless Strategy and Policy Management Rate Plan and Contract Optimization Asset Management Operational Support Procurement Invoice Processing and Audit Business Intelligence

Federal Acquisition Service U.S. General Services Administration 13 Case Study: United States Postal Service  Situation  Geographically dispersed organization with more than 40,000 devices  Sought to “centralize, standardize and save”  Key Issues and Pain Points  Decentralized management of devices across thousands of locations  Lacked visibility into plans, total spend and optimization  Limited inventory, lacked visibility into device assignment

Federal Acquisition Service U.S. General Services Administration 14 Case Study: United States Postal Service (cont.)  Our Contribution  Centralized and consolidated inventory across all carriers and users  Conducted quarterly rate optimizations delivering hard dollar savings  Implemented online ordering portal enforcing policies and controlling costs  Provided 24/7 help desk support for all wireless issues  Results  Realized savings of more than $5M to date  Identified and disconnected more than 3000 devices with zero-usage  Resolved more than 2,000 monthly Tier I and Tier II Help Desk inquiries  Supported 1,700 wireless service requests per month

Federal Acquisition Service U.S. General Services Administration 15 Lessons Learned  Active participation and buy-in from stakeholders (e.g. - IT, legal, human resources, procurement, finance) is critical in developing a comprehensive mobility policy  Executive support and proactive communication before implementation of a managed mobility program will improve user acceptance  A centralized procurement portal is one of the best ways to enforce compliance to organizational policies and achieve wireless objectives  Help desk and operation support staff must be knowledgeable of organizational policies, processes and tools to ensure policy compliance, user satisfaction and achievement of program goals  Inventory accuracy can be significantly improved through automation of human resource data feeds and identification of points of contact

Federal Acquisition Service U.S. General Services Administration 16 Kelly Collins Director of Program Implementation Avalon Technology, Inc. June 2009

Federal Acquisition Service U.S. General Services Administration 17 Comprehensive Mobility Lifecycle Management (MLM) MobileVision TM Technology management. Simplified.

Federal Acquisition Service U.S. General Services Administration 18 The Solution: Mobility Lifecycle Management (MLM) Project Management Online Portal Device & Accessory ordering MACD’s Moves, Adds, Changes, Disconnects Inventory management Expense management 24x7 Help Desk Support Rate Plan Analysis and Optimization Billing Reconciliation Dispute Management Account Migrations Contract negotiation 20+ wireless carrier invoices validated, verified & consolidated into one monthly invoice New orders / new activations Disconnects/suspensions Device Replacements/Device Upgrades Troubleshooting (cell phones and blackberries) Local Number Portability Invoice Management Dedicated Program Manager Large upgrade projects Emergency Support projects Porting/Account Migration projects Lost, Stolen, Broken, phones Next Day Replacement TOMORROW

Federal Acquisition Service U.S. General Services Administration 19 Analytical Reports = Business Intelligence Historical Trends Weekly & Monthly Usage Patterns Call Detail Records Executive Dashboard Usage by Time of Day Asset / Inventory and Bills

Federal Acquisition Service U.S. General Services Administration 20 Case Study – Large Federal Agency Result = 20% cost reduction = $1.3M over 24 months Background: –$2.8M/year carrier fees & charges –5K wireless devices Agency Objective: 1.Lower Total Cost of Operations (TCO) by 20% –Reduce voice airtime charges –Organize no-charge technology refresh 2.Provide analytical reports 3.Deliver policy enforcement 4.Reduce end user hassle and downtime 5.Limit burden on staff Hard Savings: –Reduced average MRC from $236K/month to $189K/month –$223K – rate plan optimization –$152K – disconnect zero usage –20% reduction in carrier charges Soft Savings: –$580K - Wireless technology upgrades –Over 2500 devices Upgraded or replaced –$384K/year - Implemented new Sprint/Nextel Law Enforcement rate plans –Maintained client staff at 1.5 x FTE

Federal Acquisition Service U.S. General Services Administration 21 Why MLM will work for you!  Single Source  Cost & Operational Controls  Asset Management & Positive Inventory Control  Improved Business Processes  Increased Employee Productivity  Reduced monthly wireless spend  Increased Business Intelligence

Federal Acquisition Service U.S. General Services Administration 22 How to get Started – 2 steps to success! Step 1: Collect 3 months of wireless invoices Establishes an inventory of active lines Provides initial consumption patterns for rate plan optimization Step 2: Call GSA today!

Federal Acquisition Service U.S. General Services Administration 23 Todd McMillen/Todd Dzyak Vice Presidents, Client Services & Operations iSYS, LLC June 2009

Federal Acquisition Service U.S. General Services Administration 24 Why TEM Services?  Policy - Development, Implementation, & Practices  Asset & Service Management  Cost Control & Management Oversight

Federal Acquisition Service U.S. General Services Administration 25 Policy - Development, Implementation, & Practices  TEM is mechanism to drive policy development by defining:  WHY are wireless services needed in organization  WHAT type of services/equipment are authorized  WHO is authorized (to have device, requests, approvals, provision)  HOW are services and devices provisioned and managed  WHERE do managers, staff, and customers go for assistance  TEM can ensure policy implementation:  Through IT system  Help desk  On-sight support  TEM provides management oversight by providing  Asset/Service management  Usage and cost reporting/monitoring  Cost analysis and savings

Federal Acquisition Service U.S. General Services Administration 26 Asset & Service Management Asset Management Equipment Inventory What type of equipment - Cell Phones, PDA’s/Blackberry, Air Cards, Pagers, Satellite, Push-to-Talk Radio & Cellular, International Are they “older” equipment? (E911 compliant? TDMA? 1XRTT?) Determine who has these devices Is the device being used or emergency spare? (voice & data usage) Service Management What services are being paid for on each device? Are the rate plans optimized to meet your organization’s mission requirements? Are you utilizing the carrier’s pooled minute plans when needed? Are you buying too many or too few minutes? Are you purchasing text messaging in the best manner? (plan vs. pay per use) Do you need an international calling feature plan? Do you require WPS to be on certain lines? Is Push-to-Talk Functionality necessary or just a convenience? Do camera phones meet the organization’s security guidelines?

Federal Acquisition Service U.S. General Services Administration 27 Cost Control & Management Oversight  Optimize Rate plans to ensure that an appropriate amount of peak minutes are purchased  Ensure end users are placed onto the appropriate Data plans and feature plans that meet the organization’s requirements, but are most cost effective  Review and monitor monthly usage and cost reports to identify any anomalies

Federal Acquisition Service U.S. General Services Administration 28 A Southern California City History: City has approximately 4,000 cellular devices Telecommunications are centrally managed  Top user in minutes and most expensive line in the city was identified as NOT being an employee of the city, but just a regular citizen that somehow was placed onto the city’s account.  The Southern CA City was paying State of Kentucky Taxes on one of their cellular accounts.  Approximately $45k/month was saved by placing “emergency” devices onto a local “pay per use” plan versus the carrier recommended National Plan.  iSYS provides an internal Journal Voucher report that allows the city to perform an internal re-bill of cellular services to it’s various departments. This allows the City to pay one invoice to the cellular carrier, but also allocates the budgetary expenses to the appropriate cost centers.

Federal Acquisition Service U.S. General Services Administration 29 Points of Contact Michael Loria GSA/FAS Program Manager, Russ Peery GSA/FAS COTR, Lucy Cavazos GSA/FAS Contracting Officer, Gary Ibach Avalon Technology Vice President, Jordan Weinstock Booz Allen Hamilton Program Manager, Todd Dzyak iSYS LLC VP TEM Operations,