1. 1 Management Information Systems Division Application Support Outsourcing Presentation to Industry 24 July 2006 Management Information Systems Division General Procurement Service

2. 2 Management Information Systems Division Application Support Outsourcing Agenda 14h30-15h00 Drivers, objectives and scope – P. Soerensen, Head of Management Information Systems Division 15H00-16h00 Application Support Management –L. Mastrangelo, M. Douzal, Management Information Systems Division 16h00-16h30 Tender and Contractual Aspects –S. Benetti, Head of General Procurement Service 16h30-17h15 Coffee Break 17h15-17h30 Transition and Schedule –S. Benetti, Head of General Procurement Service

3. 3 Management Information Systems Division Drivers, objectives and scope P. Soerensen, Head of Management Information Systems Division Application Support Outsourcing

4. 4 Management Information Systems Division Drivers and Objectives Establishment of clear internal / external responsibilities and reporting lines End-to-end system approach to the applications Integrated service approach Economies of scale, reduction of costs Better use of the market for standard services Separation of projects and services Improved performance of applications Increased user satisfaction Streamlining of supplier interfaces (single contract)

5. 5 Management Information Systems Division Scope Strong Management by Prime Assure Governance, Quality and Performance management of the service Assist the users in exploiting the applications Perform the administration of the applications and of the data Detect, identify and remove defects Implement the minor evolutions made necessary by –New requirements –Evolving environment and Technical considerations

6. 6 Management Information Systems Division Coverage – Applications L.Mastrangelo Management Information Systems Division Application Support Outsourcing

7. 7 Management Information Systems Division Coverage List of Applications Granularity = individual application Coverage for each application can be –Full –Functional Support only 43 apps in initial scope (info cards) 9 more applications known to be inserted –7 in FS mode, 2 in full mode

8. 8 Management Information Systems Division Overview of the Applications

9. 9 Management Information Systems Division Coverage Applications per Area

10. 10 Management Information Systems Division Coverage Applications per Architecture Lotus Notes (21) –2 large, 19 small Web (22) –7 large, 15 small Client/Server (9, accessed via Citrix) –4 large (SAP, Smartstream, Archibus), 5 small Tecnology: SUN – Oracle – Sybase - Microsoft - Novell – BO

11. 11 Management Information Systems Division Coverage Maturity of Application in initial scope

12. 12 Management Information Systems Division Coverage Applications Statistics (per Year) Issue TypeNumber Problem Report 1.000 Change Request 650 Ticket (Help Desk) 17.000

13. 13 Management Information Systems Division Coverage Estimation of activities (Working Days per Year)

14. 14 Management Information Systems Division Coverage ESA’s best evaluation of documentation status

15. 15 Management Information Systems Division Application Support Management M. Douzal, Management Information Systems Division Application Support Outsourcing

16. 16 Management Information Systems Division Application Support Management Approach Processes and services SLA Reporting Support tools Roles and Responsibilities

17. 17 Management Information Systems Division Application Support Management Approach Outsource complete and coherent service processes Select single Prime Contractor (CASP) in charge of –Overall service delivery –Service coherence and quality management Define Baseline and Delta services for flexibility –Baseline Delivered continually for a given set of applications Paid through flat fee –Delta Delivered upon request Based on WO contents and agreed unit prices

18. 18 Management Information Systems Division Application Support Management Baseline Processes and Services Functional Support / 2nd line –User assistance –On-site presence at HQ, ESTEC, ESOC –Execution of procedures (date or event driven) –Troubleshooting –Preparation of PR and CR –Change Management Corrective maintenance Verification and Roll-out Service management and reporting

19. 19 Management Information Systems Division Application Support Management Delta Processes and Services Minor evolution Extension of service parameters –Extra Working hours –Extension for the quality of service –Extension of the Functional Support (on-site/remote) Engineering Options –Application infrastructure management (base or full) –Site presence at ESAC

20. 20 Management Information Systems Division Application Support Management SLA’s CASP SLA / internal Customer SLA’s Issue classification and severity KPI –Observed, measured and reported –2 categories: subject / not subject to penalties Quality matrix –Acceptable limit values assigned to KPI

21. 21 Management Information Systems Division Application Support Management Monitoring and Reporting Performance of overall Process and Service management Performance against service level targets for all KPIs Non-conformances to the SLAs with root cause analysis Penalties Trend analysis CA usage statistics Statistics on the issues and tickets handled

22. 22 Management Information Systems Division Application Support Management Support Tools Knowledge Management Communication Management Change and Configuration Management Ticket Management Performance Management –CA Availability Monitoring –SLA Monitoring –Service Reporting Test Automation

23. 23 Management Information Systems Division Application Customer / User Application Coordinator / Project Manager ESA Service Supervisor Technical Officer of the contract Application Infrastructure Services and helpdesk: new IT OSP Application Support Management ESA interfaces

24. 24 Management Information Systems Division Provides the funding for the Applications Has authority over the: –business process –functionality Exercises the governance of the applications assisted by the User Group ESA interfaces Application Customer

25. 25 Management Information Systems Division Application Governance: final OPS-E authority for any decisions concerning the Application –Responsible for the application vis-à-vis the Customer –Ensures that the Customer SLA is respected –Manages the Delta budget –Accepts the deliverables / Validates the releases –Co-chairs UG and governance meetings Handles Application-related exceptions and escalations Main user of CASP’s service ESA interfaces Application Coordinator

26. 26 Management Information Systems Division Manages the Service – in particular conformity with SLA Handles Service-related exceptions and escalations Counterpart of CASP’s Service Delivery Manager Final authority for any decisions concerning the Service ESA interfaces ESA Service Supervisor

27. 27 Management Information Systems Division Key Points Emphasis on governance –Efficient organisation –Strong management and monitoring system –Pro-active attitude Gradual reduction of number of problems / user issues Coherent collection of all Support data Synergies and cooperation with all interfaces

28. 28 Management Information Systems Division Tender and Contractual Aspects S. Benetti, Head of General Procurement Service Application Support Outsourcing

29. 29 Management Information Systems Division Application Support Outsourcing Tender and Contractual Aspects Tender and Contractual Conditions RELAX AND CHATTING Transition Planning ITT schedule Questions and Answers procedure

30. 30 Management Information Systems Division Application Support Outsourcing Tender and Contractual conditions (1) Start-up and renewal –Transition –Duration 3 years + 2 Termination and exit –Exit Phase – 6 month phase-out period on exit –Termination by Fault of contractor

31. 31 Management Information Systems Division Application Support Outsourcing Tender and Contractual conditions (2) Variation of scope –Applications added / dismissed 2-month notice No cost for insertion/removal Addition normally in FS mode then full mode Possibility to hire independently manpower to solve the problems and CASP will pay for this.

32. 32 Management Information Systems Division Application Support Outsourcing Tender and Contractual conditions (3) Sub-contractors –Prime free to select sub-contractors NO EXCLUSIVITY AGREEMENTS –Prime retains full responsibility and single interface –Prime applies contract conditions to Sub –ESA can veto change of Subs in Op Phase –Change of Sub transparent to ESA

33. 33 Management Information Systems Division Winning Bidder Selection elements –Customer References –Price ESA Non-Member States subs participation to be proposed as option Application Support Outsourcing Tender and Contractual conditions (4)

34. 34 Management Information Systems Division Application Support Outsourcing Tender and Contractual conditions (5) Financial provisions CA commitment for 3 years Minimum guaranteed (70% of initial baseline value) Cost decrease year-on-year Benchmarking and price alignment Penalties based on KPI

35. 35 Management Information Systems Division RELAX & CHATTING

36. 36 Management Information Systems Division Application Support Outsourcing Transition planning Transition Phase 1, Jan to Apr 2007 –setup, familiarisation –Incumbents fully in charge Transition Phase 2 –Incumbents' exit phase, May to June 2007 –Specific provisions for knowledge transfer End of Transition Phase 2, June 2007 –Incumbents as support to CASP –SLA respected for, at least 3 weeks Operational Phase July 2007 –CASP in charge and performing (responsible)

37. 37 Management Information Systems Division Application Support Outsourcing ITT Schedule 13 October 2006: ITT closing Date October/November 2006: Evaluation Mid Jan 2007: KO, start of transition July 2007: start of operational phase

38. 38 Management Information Systems Division Written questions ESA answers via EMITS reply Application Support Outsourcing Q&A