Telecommunications Expense Management - Wireless

1. Telecommunications Expense Management - Wireless Russ Peery – GSA TEM COTRJordan Weinstock – Booze Allen HamiltonTodd McMillen – iSys June 2009

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

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 (3rd Quarter FY 06) • To mitigate the issues facing the agencies on their wireless programs, the team determined a Wireless TEM solution was appropriate.

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

5. Key Features • Solicitation Number: 7TF-06-0018 • 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

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

7. Core Services • Wireless Service Contract/Agreement Administration • Inventory Management • Invoice Management and Audit • Rate Plan Optimization • Management Reporting

8. Optional Services • Contract Optimization • Ordering and Procurement • Bill Payment • Dispute Recovery • Device Disposition/Disposal

9. Jordan S. WeinstockBooz Allen Hamilton June 2009

10. Session Agenda Need for Wireless TEM Case Study—U.S. Postal Service Lessons Learned

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

12. According to Aberdeen, telecom is one of the top three operating expenses—requiring proactive management Wireless Strategy andPolicy 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 Rate Plan andContract Optimization Asset Management Operational Support Procurement Invoice Processingand Audit Business Intelligence

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

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

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

16. Kelly CollinsDirector of Program ImplementationAvalon Technology, Inc. June 2009

17. Comprehensive Mobility Lifecycle Management (MLM) MobileVisionTM Technology management. Simplified.

18. Next Day Replacement • Project Management Online Portal • Dedicated Program Manager • Large upgrade projects • Emergency Support projects • Porting/Account Migration projects TOMORROW • Lost, Stolen, • Broken, • phones • Device & Accessory ordering • MACD’s Moves, Adds, Changes, Disconnects • Inventory management • Expense management • 24x7 Help • Desk Support • Invoice Management • 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 The Solution: Mobility Lifecycle Management (MLM)

19. Analytical Reports = Business Intelligence Asset / Inventory and Bills Call Detail Records Executive Dashboard Weekly & Monthly Usage Patterns Historical Trends Usage by Time of Day

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: • Lower Total Cost of Operations (TCO) by 20% • Reduce voice airtime charges • Organize no-charge technology refresh • Provide analytical reports • Deliver policy enforcement • Reduce end user hassle and downtime • 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

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

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!

23. Todd McMillen/Todd DzyakVice Presidents, Client Services & OperationsiSYS, LLC June 2009

24. Why TEM Services? Policy - Development, Implementation, & Practices Asset & Service Management Cost Control & Management Oversight

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

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?

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

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.

29. Points of Contact Michael Loria GSA/FAS Program Manager, 504.589.4348 michael.loria@gsa.gov Russ Peery GSA/FAS COTR, 817.574.4318 russ.peery@gsa.gov Lucy Cavazos GSA/FAS Contracting Officer, 210.341.8307 lucy.cavazos@gsa.gov Gary Ibach Avalon Technology Vice President, 703.647.6675 gary@avalontechnology.com Jordan Weinstock Booz Allen Hamilton Program Manager, 703.377.0937 weinstock_jordan@bah.com Todd Dzyak iSYS LLC VP TEM Operations, 614.668.0799 tdzyak@isysllc.com