SHREYA GOPAL ISM 158 – BUSINESS INFORMATION SYSTEMS PANKAJ MEHRA SPRING 2010 Defense Information Systems

Overview Defense information systems at the state level (Virginia) Defense information systems at the national level (USA)

AT THE STATE LEVEL (VIRGINIA) Defense Information Systems

Defense Info Systems at State Level Virginia government had concerns about improving defense information systems came after complaints of poor, slow service from Northrop Grumman Want to make changes to the Virginia Information Technology Agency partnership (VITA). The purpose of VITA is to help bridge the technology and information gap and help implement information technology systems

Defense Info Systems at State Level VITA and Northrop Grumman partnered up in 2003, though the complaints about the services began far before 2003 Came up with a 10-year contract outlining revisions to the current systems to be implemented

Defense Info Systems at State Level To help ensure the partnership is making progress, the governor was personally watching over the work between VITA and Northrop Grumman

Defense Info Systems at State Level Contract was recently changed between VITA and Northrop Grumman [April 7, 2010] Major Changes include:  Penalties if the 15% performance increase benchmark is NOT met  3 month period to test company performance (until the end of June)  Contract extended for another 3 years beyond the initial 10 year agreement

Contract Changes Performance Changes  Creates Rapid Response Teams - Assignment of additional onsite resources with additional abilities to quickly resolve individual IT issues  Provides agencies greater flexibility over routine administrative tasks  Expedites replacement of damaged desktops/laptops by replacing equipment within 24 hours of repair determination  Overhauls Help Desk Services– a thorough top to bottom review of current procedures to implement changes outlined in the agreement and other suggested improvements. Changes include the creation of 1 hour password reset and encryption password reset that were reduced from 3-5 days.  Redesigns work order process. Changes in procurement process to more automated format to ensure a more timely response.  Formalizes agreement for Northrop Grumman to develop a new technology investment council for agency involvement.  Moves forward on long delayed migration plans for all desktop OS upgrades, exchange server and MS office platform upgrades, all beginning in 2010.

Contract Changes Operational Efficiencies  Consolidates and strengthens Performance Level Standards with a 15% increase in penalties across the board if Northrop Grumman fails to perform on clearly identified and measured performance standards.  Improves Incident Response teams to determine technology failures and expedite repair  Institutes clear performance measurements for Northrop Grumman that agencies can easily track  Creates an enhanced dispute resolution process that's fast and predictable.  Adds new services to contract such as improved disaster recovery and enhanced security features  Establishes a three-month review period for performance under the revised agreement ending June 25, 2010 which allows the Commonwealth to test new operational, financial and contractual changes to ensure significantly improved contractor performance in a short time frame

Contract Changes Financial  Commonwealth releases $15 million in previously withheld contract payments after deducting $1 million in performance level penalties  Prior administration negotiated contract modification included $196 million in additional cash payments over 6 years with an average payment of $32.5 million a year.  Current revision includes $105 million in additional cash payments over 9 years with a net present value cost of $63 million  Northrop Grumman will not recover any increased costs incurred for additional hardware, storage or licenses provided during the first 4 years of the contract, nor increase the base price in the extension period of three years  Addresses all outstanding financial and contractual issues, including additional storage, hardware and license costs incurred by vendor, estimated to be at least $30 million a year  Adds payment for new services of $47 million not in original contract for additional security measures and enhanced disaster recovery  Provides a one-time cost of living adjustment in year 10 of the base agreement  The 3 year extension is at the Year 10 base price  Northrop Grumman will retain any efficiency discount realized in years  Presents much better option than tremendous cost and uncertainty of terminating agreement at the stated contract price of at least $353 million if terminated for cause, and $685 million if terminated for convenience. This doesn't include the cost of keeping IT servers up and running.

AT THE NATIONAL LEVEL Defense Information Systems

Defense Info Systems at National Level Defense Information Systems Agency (DISA)  Mission Statement: “DISA, a Combat Support Agency, engineers and provides command and control capabilities and enterprise infrastructure to continuously operate and assure a global net-centric enterprise in direct support to joint warfighters, National level leaders, and other mission and coalition partners across the full spectrum of operations.”  Vision Statement: “Leaders enabling information dominance in defense of our Nation” Mainly trying to change the information systems in the department of defense

Defense Info Systems at National Level Recently requested for information for integrated technology contract valued at more than $100 million [April 6, 2010] Requesting operational support for areas such as training, exercises and events, analysis of operational readiness, and development of concepts to provide global networks and IT systems.

Defense Info Systems at National Level “The contract would provide support for information security, operations centers, program management, test and evaluation, enterprise architecture, systems engineering and spectrum management, as well as other areas that cover practically everything that DISA does, except for point-to-point circuits.”

Defense Info Systems at National Level DISA is encouraging small and large defense or military related businesses to respond to them By using the information collected from these businesses, DISA can propose a contract that helps meet the businesses’ needs

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