Presented by

Specialty Underwriters LLC

Hardware MaintenanceManager Program

State of South CarolinaInformation Technology Management Office

A Subsidiary of SU Group LLC

Link to Dedicated Website: http://www.su-group.com/maintenance_program.asp

HARDWARE MAINTENANCE MANAGER PROGRAM

KEY OBJECTIVES

KEY OBJECTIVES

• Creation and management of a statewide asset database by Specialty Underwriters (SU).

• Evaluation and tracking of vendor service reports and corresponding invoicing for equipment maintenance repairs.

• Development of a reporting system for Agency use that can be used to view all aspects of Agency assets (Mfg. Model, Serial No., location, purchase date, purchase cost, warranty terms, etc.) as well as associated maintenance expenses (vendor name, maintenance contract costs, time and materials costs, PM’s performed, etc.).

To build a system that bridges the gap between an Agency’s Information Technology Assets and all activity associated with maintaining that asset. This will include……

EXPECTED OUTCOMES

The expected outcomes from our program will be:

• A Significant Savings on Equipment Maintenance Costs and Agency Administrative Workload

• An Improvement Managing Vendors

• Streamlined Equipment Asset Management

• Enhanced Agency Reporting Process

MAINTENANCE MANAGER OVERVIEW

WHO IS SU GROUP

SU Group is the only organizational team to have:

Ability to review Agency’s TOTAL maintenance spend and address all Information Technology equipment types

A vast database of over 26 years of equipment repair history

A comprehensive menu of solutions ranging from Maintenance Service Agreements (MSA), Asset Management Options, and Consulting.

Proven systems and an experienced staff that handles some of the country’s largest and most complex cost savings programs.

COMPANY OVERVIEW

CURRENT MAINTENANCE OPTIONS

AGENCY

AGENCY’S CURRENT MAINTENANCE OPTIONS

• Maintenance Contracts (Including State Term Contracts): These are annual maintenance Contracts that your Agency currently has in force. These contracts generally contain equipment maintenance protection against equipment breakdown to include; Parts, Labor and Travel and scheduled Preventive Maintenance.

• Time & Materials: This is equipment that your Agency does not have a maintenance contract in place on and you handle your maintenance on these items as it occurs and pay costs for Parts, Labor and Travel to repair the equipment.

• Initial Warranty: This is equipment that your Agency has purchased and it is currently covered by a manufactures warranty.

• In-House: This is equipment that your Agency maintains yourself using trained Agency staff

NEW MAINTENANCE OPTIONS

SU GROUP

Depending on your Agency’s current operational requirements, the new program may include a number of different approaches to maintaining your equipment:

Hardware Maintenance Manager Program (HMMP) with SU

Asset Management Only Services

Consulting Services

NEW MAINTENANCE PROGRAM METHODS

HARDWARE MAINTENANCE MANAGER PROGRAM (HMMP)

Current Maintenance Contracts are consolidated to one annual Specialty Underwriters Equipment Maintenance Service Agreement (MSA) at a guaranteed cost of 20% below current cost and includes:

Equipment Repair Tracking Vendor Dispatch Services

Database Population Repair Invoice Processing

Asset Management Vendor Payment

As well as…

In-house Repair Reimbursement at $50 per hour plus PartsComprehensive On-line Reporting

Engineering Support

Single Point of Contact

HMMP PROCESS:HOW A SERVICE CALL WORKS

• TELESERVE™ (24X7 Dispatch)

SERVICE CALL PLACED800-833-7050

*SU CONTACTS VENDORAND ISSUES

PURCHASE ORDER

SERVICE VENDORREPAIRS EQUIPMENT

VENDOR FORWARDSFIELD SERVICE REPORT & INVOICE TO SU

SU MATCHES FIELD SERVICE REPORT TOINVOICE, INITIATES

AUDIT

SU PAYS INVOICEWITHIN 30 DAYS

MANAGEMENT REPORTSAVAILABLE ON-LINE

AUDIT PASSED

SU CONTACTS VENDORAND/OR AGENCY FOR

RESOLUTION

YES NO

*SU DISPATCH CAN CONFERENCE THE VENDOR INTO THE SERVICE CALL

PROFIT SHARE AGREEMENTSpecialty Underwriters is also please to offer a “Profit Sharing Plan” for State of South Carolina Agencies which further enhances the direct cost savings benefits of the Equipment Maintenance Management Program offered by ITMO.

Structure: The renewal credit incentive will be calculated and applied annually, and will be the amount equal to 50% (fifty percent) of the difference between 65% (sixty percent) of the earned annualized MSA fees, less the paid repair losses. 50% of such amount in this example would be credited to the State of South Carolina upon renewal of the contract for each successive year.

EXAMPLEA. Earned MSA Fees $ 3,000,000B. Renewal Credit Threshold (@ 65% of A) $ 1,950,000C. Incurred and Paid Repairs $ 1,500,000D. Available Renewal Credit Incentive (B-C) $ 450,000•*Renewal Credit $ 225,000

*Incentive @ 50% to State Agency

ASSET MANAGEMENT ONLY SERVICESWhen utilizing our Asset Only Services, SU does not “Cap Agency Repair Costs”, but does provide comprehensive services that allow your Agency to outsource cumbersome administrative tasks. The Annual Pricing Model for these services is as follows:

In Combination with any Other Services: $ 0.00*Database Population and Management (Annual Billing): + $ 5.00 per assetPhysical Inventory of Assets (Billed Per Occurrence): + $ 5.00 per assetVendor Dispatch Services (Annual Billing): + $ 15.00 per assetFull Asset Management (w/repair tracking) $ 25.00 per asset

All services include…Comprehensive On-line Reporting

On-going Inventory UpdatesEngineering Support

Single Point of Contact

*Database Population is electronic upload of existing equipment inventories

ASSET MANAGEMENT PROCESS:HOW A SERVICE CALL WORKS

•TELESERVE™ (24X7 Dispatch)

SERVICE CALL PLACED800-833-7050

*SU CONTACTS VENDORAND ISSUES

PURCHASE ORDER

SERVICE VENDORREPAIRS EQUIPMENT

VENDOR FORWARDSFIELD SERVICE REPORT & INVOICE TO SU

SU MATCHES FIELD SERVICE REPORT TOINVOICE, INITIATES

AUDITSU FORWARDS FIELD SERVICE REPORT &INVOICE TO AGENCY FOR

PAYMENT

MANAGEMENT REPORTSAVAILABLE ON-LINE

AUDIT PASSED

SU CONTACTS VENDORAND/OR AGENCY FOR

RESOLUTION

YES NO

*SU DISPATCH CAN CONFERENCE THE VENDOR INTO THE SERVICE CALL

CONSULTING SERVICES

SU’s Consulting Services can include any services outside of the previously mentioned service options. These services will be individually tailored for each Agency and a Statement of Work will be mutually developed by ITMO, SU and the Agency.

SU will propose Pricing for Consulting services and Agency and ITMO will approve prior to commencement of work.

Fee Proposed can be negotiated to be 20% of savings realized through consulting services or a fee of $125 per hour. The applicable fee structure will be developed through negotiations between Agency, ITMO and SU.

ON-LINE REPORTING

EQUIPMENT INVENTORY AND MAINTENANCE ACTIVITY

REPORTING FEATURES

REPORTS MAIN MENU

MAINTENANCE ACTIVITY REPORTS

EQUIPMENT INVENTORY REPORTS

HOW DOES IT WORK

SU’S THREE (III) PHASE APPROACH

PHASE I: ANALYSIS

Review of existing equipment inventories, maintenance expense records (PO’s, Invoices, Contract Terms and Conditions), existing warranties and time and materials expenses (PO’s, Invoices)

Identification and selection of SU services recommended

Development of SU’s minimum costs and minimum service levels

Development of guaranteed savings report

Development of agreement to proceed with planning and implementation

METHODOLOGY

PHASE II: PLANNING

“Individually tailored solutions for each Agency”

Report on SU recommendations, (Why SU recommends which services are to be utilized):

Proposed Approach for Development of Implementation Plan

▪ Discuss Impact of proposed solutions on repair services

▪ Develop recommendations and strategies for vendor management

▪ Establish service level benchmarks

▪ Prioritize based on Agency requirements and potentialfor savings

METHODOLOGY (continued)

PHASE III: IMPLEMENTATION AND MEASUREMENT

Implementation of New Program Strategies▪ Manage the database (equipment adds, deletes and changes)

▪ Resolve and manage service events, service level exceptions, and contract issues

▪ Communicate with Agency personnel regularly on ‘day-to-day’operational issues and results

Process and Methodology for Calculating Savings▪ Obtain maintenance expenditure data

▪ Work with purchasing to get copies of relevant contract andmaintenance expenditure data

▪ Determine ‘in-house’ repair costs

▪ Contact existing service providers to provide cost datafor work they perform for the Agency

METHODOLOGY (continued)

ON-GOING PROGRAM ADMINISTRATION

SU GROUP

Administer the new program, monitor results and support on-going Agency requests

Provide On-Going Management to Support the New Program

▪ On-Site Administrator ▪ Sales / Marketing Personnel ▪ Account Services Coordinator ▪ Administration Manager▪ Vendor Relationship Manager ▪ Account Manager▪ Reimbursement Coordinators ▪ Dispatch Engineers

Provide On-Going Support to Agencies

▪ Weekly / Monthly Meetings ▪ Quarterly / Annual Reviews

▪ On-Site Orientation / Training ▪ Website Reporting Support▪ Program Marketing

PROGRAM ADMINISTRATION

REQUIREMENTS FOR PROGRAM SUCCESS

YOUR AGENCY

Achieving the full impact (savings, efficiencies) of a costreduction initiative of this size is contingent upon the following critical elements:

Access to information (asset inventories and all maintenance related documents)

Full support from ITMO and Senior Agency Management▪ Vendor compliance▪ Agency staff compliance ▪ Program marketing, education and communication to all end users

Participation in monthly / quarterly / annual program reviews▪ Open lines of communication▪ Willingness to evaluate and participate in future cost reduction initiatives, as appropriate

REQUIREMENTS FOR SUCCESS

THANK YOU FOR REVIEWING ITMO’S

HARDWARE MAINTENANCEMANAGER PROGRAM