Corporate Capabilities

1. SEIC Corporate Capabilities Science Engineering & Integration Consulting, LLC Bridging Technical Gaps to Achieve Program Success

2. Corporate Profile • Science Engineering & Integration (SEIC) is a full service engineering support and technical project management consulting firm. • Our specialty is providing technical and managerial support for implementation of strategic IT initiatives for major corporations, Federal and State agencies, and the Department Of Defense. • The company was established by the founder Mr. Cecil R. Hines in 2002 . • We were accepted in the Small Business Administration’s 8(a) business development in February 2006.

3. Our PartnerThe CBT Workshop • Nine years experience in IT consulting and training specializing in Program Management and Earned Value Management Systems (EVMS). • Supported clients in EVMS from inception through contract close out. • Performs analysis, recommendations and support as needed for complex programs. • Role will be to provide SEIC, LLC short term staffing support as needed until they can build up and mobilize our own in-house resources. • Will use our resources to provide SEIC,LLC candidates to become full time employees. • Act as mentors and trainers to SEIC, LLC employee

4. Leadership roles On this engagement SEIC will have several roles. Three important roles will be: • Project Manager • Coordinator • Communicator

5. Project ManagerRole • As prime contractor on this engagement, SEIC will: • Work with the Program Director to ensure the coordination and successful completion of functional tasks assigned to the project and organizational resources. • Act as liaison between all contractor technical leads and the client organization. • Be responsible for vertical and horizontal project communications including scheduled status updates. • Assume responsibility for the overall success of the program.

6. Coordinator Role In the Coordinator role, SEIC will be responsible for: • Ensuring that all program stakeholders and resources are well informed and coordinated. • Coordinating all activities relating to a specific project. • Coordinating and scheduling meetings. • Setting project timelines. • Measuring project success through metrics • Ensuring project stays on schedule.

7. Communicator Role Good communications management is a vital key to the success of any endeavor that involves the coordinated efforts of many. As a communicator, SEIC will: • Establish guidelines procedures for communications planning in support of the program. • Be responsible for developing a collection and filing structure. • Establish methods for the storage and retrieval of program information. • Determine various methods of accessing information between communications.

8. Experience in IT Program and Project Management Veteran’s Affairs Enterprise Program Management Office (EPMO), Central Office, Washington, DC • As subcontractor to Robbins-Gioia, LLC, SEIC provided direct on-site program management support, to the VA EPMO Office of Policies, Plans and Programs. • Recognizing a need for consistency in the manner in which projects are managed, we assisted in the development of standardized program management methodologies, training and policies to facilitate the training and mentoring of Department of Veterans Affairs Project managers. • We also facilitated the implementation of Earned Value Management methodologies VA wide.

9. Experience in IT Program & Project Management cont’ d Veteran’s Affairs Office of Enterprise Architecture Washington, DC • Provided direct on-site Primavera and Earned Value Management (EVM) subject matter expertise support, assistance and project management mentoring. • Coordinated the work and effort required to successfully deliver the Registration & Eligibility Program EVM Performance Measurement Baseline (PMB). • Analyzed and corrected project schedules to ensure concise mapping to OMB Exhibit 300 and made necessary corrections to ensure adherence to ANSI 748 criteria for performance measurement baselines.

10. Experience in IT Program & Project Management cont’ d Veterans Benefits Administration, Office of Facilities, Access and Administration , Washington, DC • As subcontractor to Robbins-Gioia, provided direct on-site project management support, assistance and project management mentoring to the Office of Facilities, Access and Administration • SEIC’s role was to provide VBA project managers with professional project management consulting services (including mentoring and training) needed to develop, maintain and analyze construction project schedules, and to ensure the associated Information Technology (IT) infrastructure tasks are properly integrated into the project plans to ensure schedules meet the operational and business needs of the organization.

11. Experience in IT Program & Project Management cont’ d Internal Revenue Service Treasury Information Processing Support Services project, Oxon Hill MD • Was appointed the interim manager of the IRS’s End-User Deployment & Training Support Center • Tracked and monitored metrics and performance of the Call Center team. • Developed and delivered software and hardware impact analysis. • Developed vendor compliance documentation • Developed master software rollout plan for 130,000 seats at 800 locations nationwide.

12. Experience in IT Program & Project Management cont’ d Johnson & Johnson World Headquarters New Brunswick, NJ • Our role on this contract was Windows 2000 Project Coordinator for Corporate Information Management office of Johnson and Johnson, a 30 billion dollar healthcare company with over 200 individual operating affiliates worldwide. • Responsible for the planning, coordination and execution of all projects associated with for the corporate-wide roll out of the Windows 2000 (W2K) operating system . • Successfully coordinated task assignments for project team of 20 individuals supporting the execution of all W2K related projects.

13. Experience in IT Program & Project Management cont’ d Johnson & Johnson World Headquarters New Brunswick, NJ,Continued • Guided and mentored project team in the establishment and execution of formal project management processes and procedures to be used over the lifecycle of the project. • Created project management guidance documents and templates for use by the project team to aid in the development of individual project plans. • Tracked and monitored the status of all project funding. • Tracked and monitored the performance of the project team leads and contractors to ensure adherence to the program goals.

14. Experience in IT Program & Project Management cont’ d Pentagon Renovation Project , Arlington, VA • Provided on-site project management and engineering services to relocate the Chief of Naval Operations Command Center and the Commandant of the Marine Corps Headquarters Command Center to the new spaces within the Pentagon. • Tasking included coordination of overall system design development, floor plan layout design, transition plan development, test plan development, and development of the following subsystem engineering installation packages: • IT subsystems • Communications • Information Processing • Briefing & Display

15. Best Practices in government and Industry • Project Management Body of Knowledge (PMBOK Guide) • ANSI/EIA – 748A • NDIA ANSI EIA 748 Intent Guide • MIL handbook 881A • Systems Development Life Cycle • SWEBOK Guide to the Software Engineering Body of Knowledge

16. Project Management Body of Knowledge (PMBOK) • The Project Management Body of Knowledge by definition, is the sum of knowledge within the profession of project management. • The PMBOK® Guide provides the principles, methods, tools, techniques, and processes integral to plan, control and successfully complete a project. • It identifies that subset of the Project Management Body of Knowledge that is generally recognized as good practice.

17. ANSI/EIA – 748A • Earned value management has been in practice on military programs for nearly 40 years. This method of evaluating cost and schedule variance and performance has become a national standard and is gaining international interest. • The ANSI/EIA – 748A standard is the earned value management system “Best Business Practices” guide that describes the 32 industry EVMS criteria. • Standardized 32 guidelines for industry and guidance for EVM systems implementation.

18. NDIA ANSI EIA 748 Intent Guide National Defense Industrial Association, ANSI/EIA-748 EVMS ‘Intent Guide’, 2005 • Recognized as an authoritative source for determining compliance with the ANSI standard. • Provides additional insight into the ANSI EVM guidelines. • Defines in detail the management value, intent, typical attributes, and objective evidence for each of the ANSI standard guidelines. • Can be used in performing an initial compliance assessment and for performing implementation surveillance.

19. Mil-Handbook-881A • This handbook presents guidelines for effectively preparing, understanding, and presenting a Work Breakdown Structure (WBS). • It is intended to provide the framework for Department of Defense (DoD) Program Managers to define their program's WBS and also be valuable guidance to defense contractors in their application and extension of the contract's WBS. • The primary objective of this handbook is to achieve a consistent application of the WBS for all programmatic needs (including Performance, Cost, Schedule, Risk, Budget, and Contractual). The guidance provided in this handbook was compiled based on many years of lessons learned in employing WBS's on defense programs

20. Systems Development Life Cycle • The Systems Development Life Cycle (SDLC) is a conceptual model used in project management that describes the stages involved in the project from an initial feasibility study through maintenance of the completed application. • Some objectives of the SDLC are as follows: • Present an organized and structured methodology for developing and implementing new or revised IT products, services, and systems • Integrate the SDLC processes with the IT Capital Planning and Investment Control Process and its related IT data collection system that supports the reporting requirement • Integrate IT Review Board (ITRB) activities

21. SWEBOK Guide to the Software Engineering Body of Knowledge • The purpose of the Guide to the Software Engineering Body of Knowledge is to provide a validated characterization of the bounds of the software engineering discipline and to provide a topical access to the Body of Knowledge supporting that discipline. • The Body of Knowledge is subdivided into ten software engineering Knowledge Areas (KA) plus an additional chapter providing an overview of the KAs of strongly related disciplines. • The descriptions of the KAs are designed to discriminate among the various important concepts, permitting readers to find their way quickly to subjects of interest.

22. Performance Measures and Metrics • Earned Value Management Systems • Critical Path • Integrated Baseline Review (IBR) • Schedule Variance • Cost Variance • Performance Indices • Cost Performance • Schedule Performance

23. Earned Value Management Systems • Ensure that government activity and contractor Earned Value Management Systems (EVMS) provide data that: • Indicate work progress • Properly relate cost, schedule, and technical accomplishment • Are valid, timely, and auditable • Supply managers with a practicable level of summarization • Ensure that government activities and contractors establish innovative, cost effective tools and processes, and improve them continuously • Experienced personnel • Tools that work in real time

24. Critical Path • Critical path analysis is another tool commonly used for monitoring progress of a program. • The critical path displays the longest, continuous sequence of tasks/activities through the network from contract start (or the current status date) to contract completion and other major program milestones. • Any change in duration of items on the critical path could adversely affect the programs completion date. • Network diagrams can be used to graphically display critical path activities.

25. Integrated Baseline Review (IBR) • Initial review conducted within 180 days • Ongoing reviews triggered by major modifications • Outcome of the review: • Is scope fully and mutually understood • Does the baseline capture all work • Is MR adequate given expected risk • Does the contract have an executable, time-phased plan

26. Schedule Variance • Comparison of the amount of budget for work earned and the amount of budget for the work planned • SV = BCWP – BCWS. • A negative result means less progress was made than planned.

27. Schedule Variance Example

28. Cost Variance Comparison of the amount of budget for the work earned with the actual costs for the same work • CV = BCWP - ACWP • A negative CV means more dollars were spent for work accomplished than what was planned.

29. Cost Variance Example

30. Performance Indices Cost and Schedule performance efficiency calculations: • Cost Performance Index (CPI) = BCWP/ACWP (or Earned Value/ Actual Cost) • Schedule Performance Index (SPI) = BCWP/BCWS (or Earned Value/ Planned Value)

31. CPI Example The cost performance index (CPI) measures the efficiency of staying on budget for a given timeframe. • CPI = BCWP/ACWP • CPI = $90K/$115K = .783 • $.78 worth of work was actually done for each $1 spent.

32. SPI Example • The schedule performance index (SPI) represents that portion of the work scheduled within a given timeframe that was actually completed within the same timeframe. • SPI = BCWP/BCWS • SPI = 90K/105K = .857 • Working progress is at a rate of 86% of plan

33. Performance Indices Example

34. Incentive Plans and Programs • Cost Incentives • FFP Contracts • CPIF Cost Incentive Contracts • Performance Incentives • CPAF Award Fee Contracts • CPIF Performance Incentive Contracts • FFP With Performance or Award Incentives

35. Types of Incentive Contracts • Fixed Price Contract (FP) • Contractor has responsibility for performance cost and profit • Fixed Price Incentive • Firm Price Incentive Firm • Fixed Price Successive Targets • Fixed Price Award Fee • Cost Reimbursement (CR) • Government assumes responsibility for costs and pays a predetermined fee • Cost Plus Incentive • Cost Plus Incentive Fee • Cost Plus Award Fee

36. Fixed Price Guaranteed performance Paid upon delivery or contract financing Profit related to performance Technical maturity Comparison • Cost • “Best effort” • Costs paid as incurred • Fee agreed up front • Scope not well defined

37. The CR FP continuum Production/Sustainment Research Development CPFF CPFF / CPAF CPIF/CPAF FPAF/FPIF/ FFP FPIF /FFP LRIP/ Production Follow-on Production/OS SDD CR TD Higher risk, less-defined requirements Government assumes Contractor assumes more cost risk more cost risk Greater Performance Risk = Government Assumes More Cost Risk

38. Examples

39. Cost Plus Award Fee (CPAF) • CPAF contracts consist of an estimated cost and an award fee amount that is paid upon periodic, subjective evaluations of the contractor’s performance • Award Fee consists of • Base fee (which may be zero) fixed at inception of the contract • Must not exceed 3% of estimated cost • Works the same as a Fixed Fee • Award amount based upon a judgmental evaluation by the Government • Subjective criteria

40. Award Fee • CPAF contracts provide flexibility in two ways: • Subjective evaluation of contractor performance levels and the conditions under which the levels were achieved • Ability to adjust plans quickly to reflect changes in management emphasis or concerns • The contractor must earn the award fee. Award fee starts at 0%, not at 100% • Contractor earns above average fee for above average work • The award fee plan is a management tool. It provides a method to incentivize and reward a contractor for ideas, practices, or efforts that affect the end item of the contract in a positive way.

41. Incentive-Fee Contracts • Many incentive-fee contracts do not meet cost or performance targets • Incentive-fee contracts are based on formula-like mechanisms • Determines amount of fee earned • Nature of fee criteria eliminates most of the subjectivity • Cost, schedule or delivery and performance incentives are based on targets that can be evaluated against actual costs, actual dates and actual performance • Gives evaluators a clear sense of contractor’s performance

42. Performance-Based Contracting (PBC) • PBC is contracting for results; not best effort • All aspects of acquisition structured around work to be performed • Preferred method for acquiring services, R&D, and supplies • PBC must have performance requirements, standards, and a performance incentive plan • Focus on required output not how the work is done

43. Performance-Based Incentives • Full, SOW performance is primary objective • Cost strategies must be balanced against risk of failure • Cost incentives must be adequate, but must not detract from emphasis on SOW performance • Minimize financial incentives for under runs • Contractor to earn fee during contract performance but retains fee based system operation • Full system performance is the only way contractor can retain all previously earned fee

44. Performance-Based Incentives Cont’d. • Measurable, performance-based criteria must be identified prior to and during system operation • Cost plus incentive fee contract • No under run incentivized without approval • Can lose no more than 60% of total incentive fee as result of cost overrun • Each system must be incentivized independent of success/failure of other systems

45. System Performance Determination • Critical parameter list made part of contract • Based on contract requirements and technical specifications • List includes required quantitative ranges for critical parameters and method of determination • If more than one contractor involved, all critical parameters covered through combination of Fee Plans • Examples: Up times, system availability; system performance; data availability; timeliness; and utility

46. Typical Fee Structure • Up to 60% of fee subject to loss due to cost overrun • Cost incentive applied to all deliverables • Overrun near end of program can offset fees retained by the performance of previous deliverables • May include schedule incentive • Amount at risk for contractor must be measured against importance of schedule and total cost to Government • Must ensure that cost incentive does not reward contractor for meeting or exceeding performance requirements when results outweigh value • Technical performance demonstrated through pre-delivery test requirements • May use award fee for subjective evaluation during system design/development • Management, Technical, Financial,, Security, Operations, etc.

47. INCENTIVES SUMMARY • Contractual incentives that are properly structured can maximize value for all parties • A successful business relationship recognizes the results the Government and contractor want to achieve while avoiding the undesirable outcomes. • Challenge: determine what contractor behavior you want to motivate and then structure the proper incentive strategy to effectively motivate that behavior

48. Contact Us Science Engineering & Integration Consulting, LLC 107 Bonhill Drive Fort Washington, MD 20744 Toll Free: 1-888-822-7540 Mobile: (301) 481-8228 Fax: (301) 203-1411 Cecil Hines, President