Wireless Telecommunications Expense Management Services (TEMS) David Peters Program Manager - Mobility GSA ITS May 2012

TEMS Agenda Introduction to Wireless TEMS Options for Purchasing Wireless TEMS Outline the TEMS Process—Agency Customer Perspective TEMS Success Stories

What is Wireless TEMS---Now and in the Future? Managed service that enables increased financial and operational control over wireless assets---service plans and devices Supports wireless assets over the entire lifecycle continuum: TEMS is NOT Mobile Device Management or Mobile Application Services TEMS is an important component of an overall Mobility Management Solution TEMS complements Mobile Acquisition and MDM; TEMS may eventually converge with MDM (5+ years) Acquisition Policy Implementation/ Management Device Refresh Plan Validation/ Optimization Inventory Reporting Invoice Review Device Disposal/ Disposition

Wireless TEMS Value Proposition Analysis suggests that the Federal Government can save roughly $150 - $200M annually on wireless spend through improved service management The Federal Strategic Sourcing Initiative (FSSI) PMO estimates that government-wide wireless spend is roughly $1.3B per year on more than 1.6million service plans TEMS can produce upfront acquisition savings (15-20%) , operational savings (varies), and ongoing optimization (5-10% ROI in years 2 +) Acquisition Savings: Contract Consolidation, Volume, Competition, Improved Plan Selection, Policy Implementation Operational Savings: Improved Support Ratios—CO, DAR, IT, etc Optimization: Utilization of Pooled Plans, System and regular evaluation of usage as business needs change 4

TEMS Complements Wireless FSSI and Other Mobility Initiatives, Federal Directives TEMS is a management tool that can ensure the strategic objectives of the Wireless FSSI are met: Improved Management/Operations Improved Results TEMS can support policy implementation Plan and device selection Device refreshment/replacement/disposal/disposition reporting TEMS can be the first step towards strong integration between mobile assets and the overall IT enterprise Enable more efficient adoption of mobile applications Accelerated optimization, waste elimination, policy implementation

TEMS Solution Components (Based on FSSI IDIQ) Core Services Wireless Service Contract/Agreement Administration Services Inventory Management Services Invoice Management and Audit Services Rate Plan Optimization Services Management Reporting Services Optional Services Contract Optimization Services Ordering and Procurement Services Bill Payment Services Dispute Recovery Services Device Disposition / Disposal Services Portal Services1 Wireless Service Contract/Agreement Administration Services Inventory Management Services Management Reporting Services Ordering and Procurement Services 1Modification in-development

TEMS Contract Options TEMS FSSI IDIQ Awardees iSYS, LLC (Small Business) Avalon Global (Small Business) Booz Allen Hamilton/ProfitLine Contract Term: 5 years, expires 1/2013 Next Steps: Incorporate TEMS as Managed Mobility Component Increase awareness regarding ability to acquire TEMS via Schedule or Connections Connections II: Numerous providers, direct and via sub-contractors. TEMS ability was validated via CNX I and via CNX sample proposal process. Small Business: A&T, American Systems, NetCom Open: Verizon Schedule 70 Several providers on Schedule 70 including: iSys (SIN 132 51, 132 53) Avalon Global (SIN 132 51) A&T Systems (SIN 132 51, 132 52) ProfitLine, Inc (SIN 132 52, 132 53) Others

TEMS/Managed Mobility Next Steps Support FSSI PMO and Customers thru balance of contract Develop Managed Mobility Strategy that Addresses TEMS Value Proposition and Demand Drive Awareness of All TEMS Acquisition Programs and Tools Continue Support of Digital Government Strategy and Role of TEMS

TEMS Process Outline Month Activity 1 Identify Owner, Scope, and Objectives 2-4 Document Owner, Scope, and Objectives Identify $ expectations--year 1 savings, ongoing ROI Identify acquisition strategy Validate strategy complements overall mobile strategy 5-6 Conduct acquisition 7 Award with approved implementation plan Kickoff meeting; confirm status of owners Begin forwarding invoices to TEMS provider 8 Begin implementation All in-scope accounts forwarded to provider Monthly reporting begins 9 All wireless accounts should be inventoried 10 Initial optimization and contract alignment complete, if in-scope 12 Initial savings report identified 15,18,21… Quarterly savings report delivered to agency and program 24 Annual savings report identified Notes: 1. Actual timeframes will vary as a function of: a. Centralization b. Planning c. Level of starting fragmentation d. # parties involved e. Complexity of custom elements, i.e. audit and optimization 2. Ideally, 3 months of invoices are provided up front as a means of validating existing plan selection and immediately identifying zero-use accounts. 3. Although upfront/implementation charges may apply, positive ROI has been obtained within the first 12 contract months of all TEMS FSSI projects. Positive ROI continues in Year 2+.

TEMS Savings and Return On Investment –FSSI  Agency Units Months Total Spend Total Savings ROI The Centers for Disease Control & Prevention (CDC) 6,896 42 $ 16,804,167 $ 9,554,130 1162% Customs & Border Protection (CBP) 21,963 41 $ 44,321,346 $ 7,354,325 248% U.S. Courts: 3rd District Court of Appeals (CA3) 120 18 $ 153,132 $ 28,935 306% Administrative Office of the U.S. Courts (AOUSC) 1,495 21 $ 2,546,734 $ 277,622 73% U.S. Army Corps of Engineers (USACE) 23,928 11 $ 14,084,024 $ 1,783,331 117% Veteran's Administration: VISN-5 3,391 5 $ 299,199 $ 36,517 30% Notes: TEMS Savings includes acquisition and optimization versus average baseline ACPU Units reflect wireless plans supported

Centers for Disease Control & Prevention CDC started their Wireless TEM Initiative as a Pilot Program with the OIT Department. After Realizing incredible savings, the other departments within CDC joined the Wireless TEM Program and immediately realized substantial savings by : Utilizing more effective Federal Service Contracts Optimizing Rate and Feature Plans within those Contracts Standardizing Procurement Policies

Customs and Border Protection CBP’s focus has been to initially build an accurate inventory database and identify opportunities for reducing costs. Total Devices 21,963 Air Cards 2,793 Cell Phone 6,926 Blackberry 12,244  Fiscal Year Optimization Savings Zero Use Savings Devices Deactivated Total Realized Savings FY09 $ 1,065,391 $ 493,281 923 $ 1,558,672 FY10 $ 2,754,336 $1,139,152 2,316 $ 3,893,488 FY11 $ 518,545 $1,022,544 1,762 $ 1,541,089 FY12 $ 71,426 $ 224,599 513 $ 296,025 Total Program Savings $ 4,409,698 $2,879,576 5,514 $ 7,289,274 CBP’s next step is to roll out a secure on-line ordering system to help streamline the procurement process and ensure that procurement policies are enforced. Estimated roll-out – June 2012 CBP’s success is featured in CIO Steven Van Roekel’s Digital Government Strategy as a Mobility Management Best Practice

U.S. Courts Court Units "Opting In“: 146 The 3rd District Court of Appeals (CA3) in Philadelphia launched a pilot program under the GSA FSSI Wireless TEM contract in 2009. In 18 months CA3 realized a 19% savings that equaled $14 per unit per month for their task order. In 2010, the Administrative Office of the U.S. Courts (AOUSC) issued a Task Order against the TEMS FSSI Contract so that any court unit could benefit from the total aggregation discounts allowed by the contract under the Task Order. Each court unit has the option to pick and choose the services they wish to utilize. All Court Units “opting in” receive the Core Services Invoice Audit Rate Plan & Feature Optimization Project Management Optional Services include: Order Management Dispute Recovery Services Bill Payment Services Device Disposal/Disposition Services Court Units "Opting In“: 146 Total Task Order Savings: $277,622 Savings Percentage: 11% Return On Investment: 73%

U.S. Army Corps of Engineers USACE was able to lower their average cost per device type significantly 15% Average Savings utilizing original contract 20% Additional Savings with new BPA contract 3,685 Devices with 3 months or more of no usage Cancelled resulting in $604,750 savings. USACE has been able to implement a secure web-based ordering process that allows for real-time database updates of inventory. ACPU – Average Cost Per Unit Implementation of New BPA Pricing

Veteran’s Administration – VISN 5 VISN-5 based in Martinsburg, WV has taken the initiative to begin the implementation of a Wireless TEM Solution. Issues 14 invoices with 5 carriers were being paid out of various offices No visibility across offices into inventory or spend Solutions: Built a Master inventory database of all devices and services Identified and submitted cancellation orders for 342 devices not needed Device Type Unit Count Baseline Cost (July- September 2011) Average Cost per Unit February 2012 Average Cost per Unit Average Savings per Unit Percentage Savings per Unit Aircard 409 $ 39.53 $ 38.78 $ 0.75 2% Blackberry 555 $ 52.76 $ 47.83 $ 4.93 9% Cell 476 $ 31.10 $ 27.70 $ 3.40 11% Pager 2,225 $ 6.97 $ 5.65 $ 1.32 19%

Program and TEMS FSSI Provider Leads David Peters GSA/FAS-ITS Program Manager-Mobility 703.306.6403 david.peters@gsa.gov Monica Hedgspeth COTR 703.306.6350 monica.hedgspeth@gsa.gov Jon Johnson Contracting Officer, 703.306.6481 jon.johnson@gsa.gov Website: www.gsa.gov/fssitem Todd Dzyak iSYS LLC VP TEM Operations, 614.410.1588 tdzyak@isysllc.com Larry Schwartz Avalon Global Solutions EVP of Government Business 410-37-0533 Larry.Schwartz@avalon-gs.com Bryan Padgett Booz Allen Hamilton Program Manager, 703.902.6811 Padgett_bryan@bah.com 16 16