Personnel Services Delivery Transformation PSDT program AIR FORCE PERSONNEL CENTER Randolph AFB, TX

1. Personnel Services Delivery Transformation (PSDT) programAIR FORCE PERSONNEL CENTER Randolph AFB, TX April 2007

2. Page 2 Input ID: 39043 Program Overview Personnel Services Delivery Transformation (PSDT) program Client: Air Force Personnel Center, RAFB, TX Est. Value: $260M Full/Open; Single Award Type: TBD Primary NAICS Code: 541511: Custom Computer Programming Services POP: 5 Year Base 2007 Schedule (As Of 5 April 07): OCI Plans were due: 2 Apr DRFP: TBD Apr Industry Comments on DRFP due: 20 (tentative) Apr Industry one-one discussion topics due: 5 May Industry one-one discussion sessions: 8-9 May RFP: 11 May PDD: 20 June Award: TBD Competition: Many (See Competitive Landscape Slides) Critical Success Factors Improved customer satisfaction thru near real time access and understanding Improved accuracy and availability of information and services Greater efficiencies provided by economies of scale as transactions are centralized and provided via web and contact center channels Cost savings and avoidance by returning personnel authorizations to the corporate structure to support a reduction in the Air Force administrative footprint and focus resources on operational efforts

3. Page 3 Input ID: 39043 Type of Work The major achievements of PSDT will be to: Redesign Personnel Service Processes to make them more streamlined and effective. Eliminate unnecessary steps and approvals to speed up work and reduce workload Recast Field Organizations and Career Field to make sure personnelists are ready to shift focus to strategic advisory roles instead of performing routine transactions. This new role will provide even more value to both Airmen and commanders and will lead to new opportunities within ongoing career field development Enhance Contact Center and Self Service Capabilities by creating a Shared Services Organization (SSO). The SSO should provide more accessible (24/7) self-service personnel services through an enhanced web Portal and an improved contact center Modernize DP Architecture & Technology to ensure the right system is in place to support and integrate web-based applications and enhanced contact center capabilities

4. Page 4 Input ID: 39043 Description of Services STRATEGIC PARTNERSHIP Strategic Partnership. Establish a strategic partnership with the Air Force to provide Total Force Personnel Services as outlined in the program objective. This strategic partnership will provide the foundation for decisions and implementation of initiatives OPERATIONS Tier 1 Military Contact Center. Assume operations for current configuration with provisions for assuming all transformed MPF functions over time. In partnership with Government employees in Tier 2 & Tier 3, provide responsive, total assistance to active duty military customers. Prepare and implement, upon approval, a strategic plan for transition to total force personnel center(s). Plan should represent the most effective and efficient utilization of government and contractor resources while maintaining world class customer service and support. AFPC, 554th ELSG/PN, A1 contracted tasks. Assume all existing contracted efforts within the A1 community including all subordinate, field and related activities. Review the current contracts and provide a consolidated performance work statement that encourages innovation, industry best practices, and maximizes efficiencies yet maintains current capabilities and maintenance. Responsibility for each contract/task order will transfer at normal completion/expiration of existing contracts, delivery orders and/or option periods.

5. Page 5 Input ID: 39043 Description of Services (Cont) SYSTEMS ENGINEERING (SE) AND INTEGRATION Legacy Systems. Assume the SE and integration efforts for current and future Total Force Personnel Systems and implement, upon approval, a plan for retiring legacy systems. Evolving Total Force systems. Using sound engineering principles, to include Service Oriented Architecture, provide/assume the SE and integration efforts to ensure the successful operations of Total Force personnel systems and successful integration with evolving DoD systems. TRANSFORMATION MANAGEMENT Strategic Planning for Evolving and Future HR Systems. Utilizing the latest concepts of change management, assume responsibility for identifying, defining, and documenting future system requirements, engineering interfaces, and business process rules/procedures as they apply to existing/new HR systems for the near (0-3 yrs), mid (3-5 yrs) and far (5-10 yrs) term. Perform management planning for state of the art information technology, human resource best practices and management, and warfighter support concepts. (5-10 year term) Business Process Reengineering and Redesign. In partnership with Air Force functional Subject Matter Experts (SME) conduct business process reengineering and redesign; optimize both service delivery and cost efficiency. Business Process and Rules Clarifications/Descriptions. Support ongoing business process rules definition and descriptions for interface with evolving systems. In partnership with ongoing AF efforts, determine gaps in system capabilities/process requirements and recommend solutions that maximize efficiency while maintaining capability.

6. Page 6 Input ID: 39043 Customer�s Vision / Mission PSDT will provide a new personnel service delivery model that increases the Total Force capability to deliver the right people at the right place at the right time. Benefits Sought Improved service delivery model that shifts many personnel transactions to web-based self-service and to a much lesser extent, an enhanced contact center. An objective of 85% web, 10% contact and 5% face to face is a desired threshold Change personnelist focus from conducting routine transactions to providing value added and strategic advisory services Improve availability of current and accurate personnel and manpower information Improve services through standardization, improved data and enhanced self-service accessibility Give Airmen the convenience and control over their own personnel transactions�at their own schedule and pace. Less time waiting in line or traveling to multiple offices Enable most effective use of resources (both human and capital) to support war fighting operations. Reduction of total ownership costs.

7. Page 7 Input ID: 39043 Client Environment The Directorate of Personnel Data Systems is the information technology focal point for AFPC and provides life-cycle management and sustainment of personnel data and records management systems for active military, Guard and Reserve. Directorate team members operate and maintain the military personnel data system, Defense Civilian Personnel Data System and Air Force civilian unique applications. The directorate also develops and implements IT architectures supporting personnel operations and the Personnel Services Delivery/Personnel Services Transformation initiatives; introduces, assesses and facilitates implementation of new technologies to improve business processes; and develops, coordinates, and implements strategies to intelligently implement proven best practices in communications and information management. The staff operates and maintains a portfolio of more than $80 million in IT systems comprising nearly 700 servers supporting military and civilian personnel transactions for the total force. The directorate provides certification and accreditation for all Air Force personnel data systems, while providing network operations and security for worldwide access to Air Force personnel data systems.

8. Page 8 Input ID: 39043 Customer Contact Decision Makers/Influencers Any facility tours and documentation requests should be coordinated through Mr. David Bailey, david.m.bailey@randolph.af.mil 210-565-1272 (email preferred), or Mr. Tim Thomas, timothy.thomas@randolph.af.mil (email preferred) 210-565-1322. Mr. Tim Thomas-Program Manager, (210) 565-1322, Timothy.thomas@randolph.af.mil Ms Renee Stenborg-Procurement Contracting Officer (PCO), (210) 565-1271, Renee.stenborg@randolph.af.mil Mr. David Bailey � Contract Specialist, (210) 565-1272, David.bailey@randolph.af.mil Call Plan

9. Page 9 Input ID: 39043 Customer Major Issues and �Hot Buttons� Solutions involving IT services must integrate into existing Air Force and DoD IT architecture, the evolving 554 ELSW data implementation strategy, and the GCSS-AF framework, and must integrate with existing and planned DoD systems (DIMHRS, DCPDS, etc.) and with planned ERPs in other functional areas (DEAMS, ECSS, etc.), where such systems require personnel data. Comply with all applicable Air Force and DoD policy. If a solution requires a waiver or change of this policy in order to effectively implement the solution, this should be clearly identified. Considerations include security, classified systems and information, data interchange, and COOP. Personnel systems are Combat Support Systems. PSDT operations will provide the highest levels of reliability and availability and rapid response times for customer outages to include both web based and contact center activity. All PSDT components and links must be located in the continental U.S. PSDT will be operated on a 24/7 basis by the contractor. Support and maintenance of all Total Force legacy systems prior to transition to an end-state solution. Support and maintenance of the end-state solution. Systems engineering and integration for legacy, evolving, and future DoD or Total Force HR systems. PSDT shall evolve to maintain technology and service currency with state of the art commercial services to the maximum extent practical.

10. Page 10 Input ID: 39043 Assumptions What keeps us ahead of the competition?

11. Page 11 Input ID: 39043 Why Paragon? Do we have a real discriminator that applies to this deal? Do we have an opportunity to influence the requirements? Evaluation Factors: As with all efforts, staffing will be critical, so we need to make sure we can find someone familiar with the SEP (System Engineering Process) and Spiral Development Lifecycle, since these are the two major lifecycles at SSG. SEP is extremely well-developed over many years. So much so that Intergraph Corp adopted and adapted it for their lifecycle methodology. The Spiral Development methodology is much younger, but, last I checked, is increasing in prevalence with newer technologies and projects. This expertise is critical if we are to propose improved acquisition processes that dovetail into the lifecycle methodologies. We'll also need someone versed in the Rational Unified Process as it is becoming the standard for rapid development/deployment. Whatever we do, we need to make sure the acquisition models mesh well with the development lifecycles, so staffing is critically important. I would suggest we bring someone onboard upfront during the business development stage (not sure Corporate will buy-off on that), but it lend significant credibility. My caution is that if the powers-that-be believe that acquisition strategy is separate and independent of development lifecycle, then we will struggle, at best, and fail, at worst. The acquisition models must complement the lifecycle.As with all efforts, staffing will be critical, so we need to make sure we can find someone familiar with the SEP (System Engineering Process) and Spiral Development Lifecycle, since these are the two major lifecycles at SSG. SEP is extremely well-developed over many years. So much so that Intergraph Corp adopted and adapted it for their lifecycle methodology. The Spiral Development methodology is much younger, but, last I checked, is increasing in prevalence with newer technologies and projects. This expertise is critical if we are to propose improved acquisition processes that dovetail into the lifecycle methodologies. We'll also need someone versed in the Rational Unified Process as it is becoming the standard for rapid development/deployment. Whatever we do, we need to make sure the acquisition models mesh well with the development lifecycles, so staffing is critically important. I would suggest we bring someone onboard upfront during the business development stage (not sure Corporate will buy-off on that), but it lend significant credibility. My caution is that if the powers-that-be believe that acquisition strategy is separate and independent of development lifecycle, then we will struggle, at best, and fail, at worst. The acquisition models must complement the lifecycle.

12. Page 12 Input ID: 39043 Paragon Team Coverage

13. Page 13 Input ID: 39043 Management Solution Meets Our Solution Set � Yes? How will we staff the work? Win strategy includes the following thoughts: Reduce costs of expensive legacy systems. Program Management (PMI PMBOK) and ProSight Portfolio Management Transition while maintaining continuity of operations Rapid Response Agility Risk Management IT Security Integrated Team Complete Solution Commercial Best Practices Low turnover �Best places to work PM with local ties and name recognition

14. Page 14 Input ID: 39043 Questions driving the customers acquisition How would a Strategic Partnership be implemented? Please provide example PWS paragraphs that would explain this effort. What are the Strategic Partner�s role and responsibilities? Identify any issues associated with systems integration and engineering strategies affecting legacy and future systems (DIMHRS) What would be the most effective means for maintaining legacy systems in preparation for DIMHRS? What is industry best practice for retiring legacy systems? In generalities, what is your idea for AF HR Transformation? At what level or to what extent does it make sense for the AF to accomplish a Total Force transformation? What performance metrics would you recommend in managing the program? Describe your experience(s) with HR transformation programs (both commercial and government)? How many have you performed? Has your company performed its own HR transformation? What would be a general timeline/schedule for PSDT implementation? Please list in priority order (highest to lowest) the expected risks associated with this type of effort. What do you see as the greatest potential opportunities associated with this effort and what steps are necessary to take advantage of them? What would the AF need to provide in order to successfully propose and manage the PSDT program? What contract structure and period of performance would you propose? How would you manage it? How should the contract be structured to balance maximum flexibility and minimize total ownership cost? Based on your experience and utilizing the information provided herein and SOO what would be an approximate cost of the PSDT program? (i.e., order of magnitude, ballpark estimates, etc.) Do you have any ideas and suggestions that might provide alternative approaches to designing, developing, acquiring, operating, and managing PSDT?

15. Page 15 Input ID: 39043 Technical Solution Do we have to build a technology or support a development or management effort? CMMI-II/III Win strategies includes the following thoughts: Discipline and Rigor Technical Compilation �Best of the Best Tried and Proven

16. Page 16 Input ID: 39043 Pricing Do we think price will be a big driver? � Yes

17. Page 17 Input ID: 39043 Relevant Experience What work are we doing or have completed that supports winning this deal? Current work performance

18. Page 18 Input ID: 39043 Past Performance Which contract or staff references best apply?

19. Page 19 Input ID: 39043 Proposal Resources Who will assist? Proposal Development Plan Proposed Staffing � Will need recruiting help Resources & Facilities Required � Help from team mates Themes & Discriminators � TBD B&P Budget �

20. Page 20 Input ID: 39043 Competitive Landscape Incumbents: None � This is new work Industry Day Attendees 139 Individuals 60-70 companies (Large, Medium, Small and SDB)

21. Page 21 Input ID: 39043 Bid/No-Bid Rationale Technologically challenging work Priority client Existing client relationships Team transition track record Meets Our Solution Set Funded Program/s Tactical or strategic value Match to Paragon core competencies IT Governance Business Intelligence Enterprise Integration Acceptable incumbent performance Procurement timetable Capture strategy not defined CMM Level 2/3 certification

22. Page 22 Input ID: 39043 SWOT Assessment

23. Page 23 Input ID: 39043 Required Actions Meeting with Accenture and IBM (two leading contenders) to secure a position on one or both of the teams Continue contact with the client Develop an executable win strategy with prime Develop Capture Plan

24. Discussion Questions?