Telecommunications Expense Management Wireless

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Telecommunications Expense Management - Wireless
Russ Peery GSA TEM COTRJordan Weinstock
Booze Allen HamiltonTodd McMillen iSys
June 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.
• Dont move stuff around and youll 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 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

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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

June 2009
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Session Agenda

• Need for Wireless TEM
• Case StudyU.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
  resourcestools, policies, processes, FTEsto
  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
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According to Aberdeen, telecom is one of the top
three operating expensesrequiring 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
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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.

June 2009
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Comprehensive Mobility Lifecycle Management
(MLM)
MobileVisionTM
Technology management. Simplified.
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The Solution Mobility Lifecycle Management (MLM)
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Analytical Reports Business Intelligence
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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

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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

June 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 Management
Asset Management Equipment Inventory What type of
equipment - Cell Phones, PDAs/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 organizations mission
requirements? Are you utilizing the carriers
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
organizations 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
  organizations 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 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 citys 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 its 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/FAS
• Program Manager, 504.589.4348
• michael.loria_at_gsa.gov
• Russ Peery
• GSA/FAS
• COTR, 817.574.4318
• russ.peery_at_gsa.gov
• Lucy Cavazos
• GSA/FAS
• Contracting Officer, 210.341.8307
• lucy.cavazos_at_gsa.gov

• Gary Ibach
• Avalon Technology
• Vice President, 703.647.6675
• gary_at_avalontechnology.com
• Jordan Weinstock
• Booz Allen Hamilton
• Program Manager, 703.377.0937
• weinstock_jordan_at_bah.com
• Todd Dzyak
• iSYS LLC
• VP TEM Operations, 614.668.0799
• tdzyak_at_isysllc.com