Federal Acquisition Service U.S. General Services Administration Telecommunications Expense...

Federal Acquisition Service

U.S. General Services Administration

Telecommunications Expense Management - Wireless

Russ Peery – GSA TEM COTRJordan Weinstock – Booze Allen HamiltonTodd McMillen – iSys

Russ Peery – GSA TEM COTRJordan Weinstock – Booze Allen HamiltonTodd McMillen – iSys

June 2009June 2009

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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

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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.

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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

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Key FeaturesSolicitation Number: 7TF-06-0018Contract Type: Indefinite Delivery/Indefinite Quantity (IDIQ)Firm Fixed Price - Multiple Award ContractPartial small business set-aside Contract Maximum: $93MPeriod of performance: 2 years with 3 one year optionsContract awarded 11 January to:

Avalon Technologies, Inc - GS07T08BGD0002Booz-Allen Hamilton - GS07T08BGD0003iSYS LLC - GS07T08BGD0001

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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

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Core Services

Wireless Service Contract/Agreement Administration Inventory Management Invoice Management and Audit Rate Plan Optimization Management Reporting

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Optional Services

Contract Optimization Ordering and Procurement Bill Payment Dispute Recovery Device Disposition/Disposal

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Jordan S. WeinstockBooz Allen Hamilton Jordan S. WeinstockBooz Allen Hamilton

June 2009June 2009

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Session Agenda

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

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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 Top Mobility Management Challenges

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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?K

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Wireless Strategy andPolicy Management

Wireless Strategy andPolicy Management

Rate Plan andContract Optimization

Rate Plan andContract Optimization

Asset ManagementAsset Management

Operational SupportOperational Support

ProcurementProcurement

Invoice Processingand Audit

Invoice Processingand Audit

Business IntelligenceBusiness Intelligence

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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

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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

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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

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Kelly CollinsDirector of Program ImplementationAvalon Technology, Inc.

Kelly CollinsDirector of Program ImplementationAvalon Technology, Inc.

June 2009June 2009

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Comprehensive Mobility Lifecycle Management (MLM) MobileVisionTM

Technology management.

Simplified.

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The Solution: Mobility Lifecycle Management (MLM)

Project ManagementOnline 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

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Analytical Reports = Business Intelligence

Historical Trends

Weekly & Monthly

Usage Patterns

Call Detail RecordsExecutive Dashboard

Usage by Time of Day

Asset / Inventory and Bills

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Case Study – Large Federal AgencyResult = 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

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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

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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!

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Todd McMillen/Todd DzyakVice Presidents, Client Services & OperationsiSYS, LLC

Todd McMillen/Todd DzyakVice Presidents, Client Services & OperationsiSYS, LLC

June 2009June 2009

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Why TEM Services?

Policy - Development, Implementation, & Practices

Asset & Service Management

Cost Control & Management Oversight

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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

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Asset & Service ManagementAsset Management

Equipment InventoryWhat type of equipment - Cell Phones, PDA’s/Blackberry, Air Cards, Pagers, Satellite, Push-to-Talk Radio & Cellular, InternationalAre they “older” equipment? (E911 compliant? TDMA? 1XRTT?)

Determine who has these devicesIs the device being used or emergency spare? (voice & data usage)

Service ManagementWhat 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?

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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

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A Southern California CityHistory:

City has approximately 4,000 cellular devicesTelecommunications 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.

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Points of Contact

Michael Loria GSA/FASProgram Manager, [email protected]

Russ PeeryGSA/FASCOTR, [email protected]

Lucy CavazosGSA/FASContracting Officer, [email protected]

Gary IbachAvalon TechnologyVice President, [email protected]

Jordan WeinstockBooz Allen HamiltonProgram Manager, [email protected]

Todd Dzyak iSYS LLCVP TEM Operations, [email protected]

Federal Acquisition Service U.S. General Services Administration Telecommunications Expense...

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