tco sow 1-5-05 v1.0.doc

[insert Logo]

Air National GuardChief Information Officer

Statement of WorkFor An

Information TechnologyTotal Cost of Ownership Assessment

FY 2004

Jan 2003

ANG IT TCO Assessment SOW

Table of Contents

Project Plan......................................................................................................................................1Introduction..................................................................................................................................1

Purpose of the Plan..................................................................................................................1Background Information About the Project............................................................................1

Why TCO Measurement..............................................................................................................2Project Approach.........................................................................................................................3Scope Definition & Approach.....................................................................................................3Project Stages...............................................................................................................................4

Stage I - Preparation................................................................................................................4Project Plan..........................................................................................................................5TCO eSurvey Design/Test...................................................................................................5eSurvey Team Training.......................................................................................................6Registration of TCO assessment Web Portal.......................................................................6

Stage II – Assessment..............................................................................................................7Customer/End User eSurvey Invitation...............................................................................7IT Staff eSurvey Invitation..................................................................................................7TCO Assessment Data Collection.......................................................................................7myKPI Data Repository.......................................................................................................8

Stage III - Analysis..................................................................................................................8TCO Analysis......................................................................................................................8

Stage IV - Reporting................................................................................................................8TCO Findings Report Deliverable.......................................................................................8Business Case....................................................................................................................10

Optional Services...................................................................................................................11Detailed Analysis Training & IT Value Alignment Workshop.........................................11TCO Light Data Collection...............................................................................................11Web Based Training for TCO Light Data Collection........................................................11Onsite Executive Briefing Session....................................................................................11ITIL Executive Overview Briefing....................................................................................12ITIL Foundations Training & Certification.......................................................................12ITIL Support and Delivery Process Maturity Assessment................................................12Onsite IT Functional Capability Maturity Assessment.....................................................13Project Implementation Planning Service.........................................................................13Program/Project Management Office................................................................................14

Program/Project Management.......................................................................................15Business Consulting.......................................................................................................16

Customized Performance Management Reporting Service...............................................17Project Deliverables List............................................................................................................18Milestones..................................................................................................................................18Participating Locations..............................................................................................................18Project Assumptions..................................................................................................................19Project Management Approach.................................................................................................20

Project Gantt Chart................................................................................................................20Project Organization..............................................................................................................20

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ANG IT TCO Assessment SOW

Project Effort Estimation.......................................................................................................21Project Roles and Responsibilities.............................................................................................21

Contractor Responsibilities....................................................................................................21ANG Responsibilities............................................................................................................21Detailed Roles and Responsibilities Definitions Chart.........................................................22

Change and Issue Management Approach................................................................................23Change Management Process & Authority...........................................................................23Project Escalation & Risk Management Process...................................................................23

Communications and Control Approach...................................................................................24Payment Schedule......................................................................................................................24

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Jan 2005 ANG IT TCO Assessment SOW Page 1 of 28

Project PlanIntroductionPurpose of the PlanThe Headquarters Air National Guard Chief Information Officer provides decentralized (IT Operations) support services to the Distributed Computing Environment (DCE) in the command. The ANG CIO is responsible for IT investments and has to cope with rising demands for IT with more or less the same IT budget. Much effort, resources, and investment have been made over recent years to implement best practices in the DCE. It is expected that significant change will occur over the next few years as it relates to ANG CIO’s desire to raise the cost/performance ratios and optimize the IT budget distribution while migrating to new technology platforms, operating systems, and applications. However, forecasting the cost metrics, economic benefits, impact to service levels, user satisfaction, and overall command benefits as a result of technology change is difficult to predict.

Background Information About the ProjectThe goal of TCO assessment is to institutionalize cost measurement processes that improve management of all IT assets and services. The objectives to reach the goal will be accomplished via a semi-automated process of manual data collection, web-based data input and customer satisfaction surveys, and finally, commercial vendor data analysis and report generation.

In preparation for future technology strategy decisions, ANG CIO must first establish and maintain a “Baseline” and methodology from which careful assessment can be made to help forecast the impact of technology decisions to the command. The baseline will consider the following areas:

Data collection through a web-based portal to capture:- Current direct cost of providing network services- Current indirect cost of providing network services- Current network service metrics- Best practices that are currently being achieved- Current complexity of the network environment- Current customer satisfaction levels

Data analysis and reporting through a web-based portal to document:- Source Data Assumptions – what were the source data assumptions for each of the

bases?- TCO – what are ANG’s current TCO rollups, breakdowns, distributions and trends

(baseline)?- Best Practice Opportunities – which best practice improvements will provide ANG

with maximum TCO reduction opportunities?- Compare and Contrast - How does ANG’s TCO compare to external and internal peer

groups?- Complexity – what is the relative measure of the variety and type of applications,

assets, users, processes, policies and management that can make an environment more expensive (high complexity) or less expensive (lower complexity)?

- User Satisfaction – where are the opportunities to improve service levels to the User community?

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- Key Performance Indicators – what are ANG’s service level metrics, costs per User, cause & effect, and key ratios relative to peer groups?

- Performance Management Scorecard – what is the current status of ANG’s TCO management capability relative to identified goals and objectives?

Once the baseline has been established and maintained, ANG CIO will understand the cost of delivering technology to the customers and where cost reductions/process improvements can be made. With this knowledge, ANG CIO will be better equipped to:

Strategically & tactically plan IT direction Improve efficiencies, effectiveness and economies Provide better service to the end-user community Manage cost through leverage, automation and integration as a result of IT growth Measure and manage distributed service and cost on a go-forward basis Assess and mitigate risk

Why TCO MeasurementTotal cost of ownership (TCO) is the total cost of computer assets throughout their lifecycle, from acquisition to disposal. The aim of TCO analysis is to identify, quantify, and ultimately, reduce the overall costs associated with ownership of networked assets.

Total Cost of Ownership is the combined hard and soft costs of owning networked information assets. ‘Hard’ costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance contracts, support contracts, and disposal costs. These costs are considered ‘hard costs’ because they are tangible and easily accounted for. Even more significant in most environments however, are the ‘soft’ costs related to management, support, training, hidden costs, and downtime. Because they don’t occur at acquisition time, they are often overlooked in budgets, often leading to unexpected increases or worse, a transfer of management and support responsibility to customers.

The following diagram illustrates the TCO of computer assets throughout their life cycle:

Asset Life Cycle, YearsAss

et C

ost D

o ll a

r s

Not to scale

Planning Acquisition Operations & Maintenance Disposal

Mid LifeRefurbishment

Hidden Costs

AverageTCO

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Project ApproachANG has contracted Micromation, an IT Professional Services company, to provide ANG with an extensive portfolio of TCO benchmarking & management consulting services for networked environments.

In an effort to fast-track and assist ANG with the objectives identified above, Contractor shall provide a “1-800-type” TCO Help Desk service; deploy TCO assessment tools and support the data collection processes through a Web Portal; perform analysis and report the TCO analysis results of the “current state” network environment; and provide a business case on selected improvement initiative. From the assessment, Contractor shall report the current state baseline TCO of networked assets for ANG and supporting bases with online reporting. Contractor shall provide expert advice on which actions will provide ANG optimal improvements. Contractor shall provide additional services to help ANG develop implementation project strategies and provide skilled resources for implementation and change management.

Contractor shall provide ability to expand the scope into other environments including SIPRNET, WAN, Telecom, Help Desk, Enterprise Operations Center.

Scope Definition & ApproachContractor shall provide ANG CIO with an extensive portfolio of Total Cost of Ownership (TCO) benchmarking & consulting services for the Distributed Computing Environment (DCE) network, servers, peripherals, desktops, and notebooks.

The scope of the TCO assessment is to capture and report the annual baseline costs/activities for ANG’s FY2004 by April 30, 2005 in preparation for future TCO model comparisons and recommendations. The final analysis of the baseline report of findings and business case should be completed by June 30, 2005. The TCO assessment will capture costs, activities and metrics for the following areas:

Assets- Client Computers (desktop & mobile)- Servers (Intel-based & midrange)- Peripherals (printers, plotters, scanners)- Network devices (switches, hubs, routers)

Activities:- Client technical services- Server technical services- Network technical services- Planning & process management- Database management & administration- Services Desk- Finance & Administration- Training- customer/end user operations- Downtime

Metrics

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- Service desk- User support- Complexity- Best practice maturity

The base locations required to participate in the TCO assessment for ANG are as follows: [insert locations here]

The approach to capturing the baseline by June 30, 2005 will include four stages: Preparation – fine-tune TCO assessment tools fit for ANG’s purpose and train staff Assessment – collect the annual cost and activity data for FY2004 Analysis – analyze the data collected by base and MAJCOM Reporting – provide reporting based on FY 2004 findings, recommendations and business

case.

The following diagram provides an overview of the project plan stages:

MAJCOM Summary

Reporting

MAJCOM SurveyTeams

Requirements Planning

- SOW

- Timing

- Deliverables

eSurvey Design/Test

- TCO Assessment

- Support Aides

- User Survey

- Register Team Members- eSurvey Dissemination- Data Collection- Online Support- Status Reporting

myTCO WebPortal

Costs - HW / SW - Operations - Administration - User Operations - DowntimeActivitiesMetrics

1. TCO DCA Model Data

2. myTCO Repository TCO Reports BP Opportunities KPI Measurements Score Card

2. Analysis Report

3. Business Case Report

Preparation Assessment Analysis Reporting

"myTCO Baseline"Repository TCO Base 1

TCO Base 2

TCO Base ...

Training

TCO AssessmenteSurvey

Project Plan

eSurvey Team Training

- myTCO Web Portal

- Downloads

- Tele-Support

Project StagesThe following descriptions provide the details of the activities within each project stage:

Stage I - PreparationContractor shall facilitate the planning process with the ANG TCO assessment team to gather information relating to the people, processes, and systems associated with fine-tuning the assessment tools and provide training for base survey teams. The follow sections describe the tools and activities throughout the planning & preparation process:

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Project PlanContractor shall work with ANG TCO assessment team to gain consensus on requirements, objectives, timing and design acceptance criteria. In addition, Contractor shall help educate the ANG TCO assessment team on current measurement techniques, tools, processes and benefits of implementing myKPI measurement program. Project planning will be conducted via teleconference calls and e-mail. Discussion topics include:

Vision, mission, objectives and strategies review Scope of TCO project How to conduct a TCO assessment using myKPI Web Portal TCO assessment eSurvey tools & support aides eSurvey design acceptance criteria and testing customer/end user eSurvey e-mail invitation requirements myKPI web portal repository myKPI reporting and score cards myKPI user access restriction and administration ANG base location details ANG participation requirements, members, roles & responsibilities ANG base project lead contact information customer/end user eSurvey sample size and invitation process Schedules & timing Contingency planning

TCO eSurvey Design/TestBased on the input provided from ANG TCO assessment team, Contractor shall fine-tune (vernacular) and test the Web based TCO eSurvey tool, support aides and customer/end user eSurvey. The TCO assessment eSurvey tools are used to gather information required in calculating the direct cost of computing for the associated technology, process and people. The TCO assessment eSurvey will solicit information on the following:

Information about your base Your computer assets Your asset costs Your staffing & support costs Your vendor costs Your staffing & management costs Your service activity volumes The complexity of your environment Your current best practices

The customer/end user eSurvey gathers information on computer usage, source of service and support, reliability and satisfaction levels. The customer/end user eSurvey is used to gather information required in calculating the indirect (hidden) cost of computing and perceived service levels. The customer/end user eSurvey will solicit information on the following:

Tell us about you Tell us about how you use your computer How and where do you get help and service when you need it? Tell us about your computer’s reliability

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Tell us how we are doing Tell us about your software tools

The IT Staff eSurvey gathers information on the allocation of time spent on task and activities related in support the IT infrastructure. The IT eSurvey will solicit information from CS, WGM and FSA staff on the following:

Tell us about you Do you support IT on a part time or full time basis Which activities and tasks consume your time

eSurvey Team TrainingContractor will facilitate an on-site 3-day training workshop for the Base TCO Project Leaders and Survey Team members at ANG’s location of choice. ANG will send an invitation to Base Project Leaders and Survey Team members with details on attending Training sessions. The Training session will focus on the eSurvey tools, process, time-constraints and support aides. ANG will provide Contractor Facilitator(s) security access to facilities, access to the Internet connection, PC projector and classroom facilities. Training sessions will include topics such as:

What is TCO and how can it help you What’s required to perform a TCO assessment Where are the Sources of Data Data Collection Team Roles & Responsibilities Estimated workload requirements TCO Project schedules and time-lines myKPI Web Portal access myKPI eSurvey Tools and download instructions Sources of Support Submission of completed eSurvey Results

Contractor will provide one-on-one teleconference follow calls to each base for post-training follow-up.

Registration of TCO assessment Web PortalContractor shall register the ANG TCO assessment team, base project leads and survey teams on Micromation’s secure myKPI Web Portal and send logon instructions and passwords. The Web Portal provides the necessary electronic survey tools to assist base project leads and survey teams in the assessment stage. The TCO assessment Web Portal tool-set will include the following functions:

Instructions Downloads What’s new Reporting FAQs Bugs Suggestions

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Search

Stage I – Preparation will be concluded with completion of the Web Training sessions.

Stage II – AssessmentThe follow sections describe the tools and data collection activities throughout the assessment process:

Customer/End User eSurvey InvitationBase project leads will forward an e-mail invitation to participate in the customer/end user eSurvey. Through e-mail, customers/end users are invited to participate in a 15-minute multiple-choice English language questionnaire by clicking on a secure Web URL hosted by Contractor.

Contractor shall conduct a TCO Customer eSurvey random sample of the User population (not including the communications and information customer base) using a Web based eSurvey tool and based on a minimum of 170 to a maximum of 200 surveys to achieve a confidence level of 95%. Once the number of surveys is achieved to reach the desired 95% confidence level per base, Contractor shall stop accepting surveys.

IT Staff eSurvey InvitationANG Project Sponsor/Leader and Base Project Leaders will forward an email invitation to participate in the IS Staff eSurvey. Through email, IT Staff (i.e. Com Squadron, Workgroup Manager, or Functional Systems Administrator) are invited to participate in a 15-minute multiple-choice English language questionnaire by clicking on a secure Web URL hosted by Contractor.

TCO Assessment Data CollectionUsing the eSurvey tools provided through the myKPI assessment Web Portal, ANG and assigned base survey team will collect the necessary information required by the TCO assessment. The Discovery process utilizes a downloadable data collection tool referred to as the “TCO assessment eSurvey”. The TCO assessment eSurvey consists of questions related to current assets, complexities, costs, service activities, staffing and vendors associated with the network environment. As a contingency, assumptions may be used where accurate information is not available provided they are documented and approved by base project lead. Contractor shall monitor base data collection progress; provide data validation; report the status of the data collection process; and escalate potential problems or threats to the base project lead or ANG TCO assessment team for resolution. Contractor shall provide telephone/e-mail support during the 60 day TCO assessment data collection period to the designated base survey team. Data collection period can be extended through a project change request.

myKPI Data RepositoryContractor shall host a myKPI data repository for the data collected by ANG during the assessment stage for one year. Contractor shall provide ANG with TCO Manager DCA export data files.

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Stage II – Assessment will be concluded on a predetermine milestone date; any data not collected by this milestone date will be deemed “out-of-scope” and require a project change request.

Stage III - AnalysisThe follow sections describe the analysis stage of the project:

TCO AnalysisStage III of the project includes analysis of the data collected during assessment stage. Analysis results will be made available online through the myKPI assessment Web Portal. Contractor shall include analysis to answer the following types of questions:

Source Data Assumptions – what were the source data assumptions for each of the bases? TCO – what are ANG’s current TCO rollups, breakdowns, distributions and trends

(baseline)? Best Practice Opportunities – which best practice improvements will provide ANG with

maximum TCO reduction opportunities? Compare and Contrast - How does ANG’s TCO compare to external and internal peer

groups? Complexity – what is the relative measure of the variety and type of applications, assets,

users, processes, policies and management that can make an environment more expensive (high complexity) or less expensive (lower complexity)?

User Satisfaction – where are the opportunities to improve service levels to the User community?

Key Performance Indicators – what are ANG’s service level metrics, costs per User, cause & effect, and key ratios relative to peer groups?

Performance Management Scorecard – what is the current status of ANG’s TCO management capability relative to identified goals and objectives?

Stage III – Analysis will be concluded with the posting of Basic TCO Reports to the myKPI Web Portal for dissemination. ANG TCO assessment team will administer who gets access to what data.

Stage IV - ReportingThe follow sections describe the TCO Report and optional services for the reporting stage:

TCO Findings Report DeliverableThe purpose of the TCO Findings Report is to provide expert insight and advise to senior IS management. Stage IV of the project will include a TCO Report softcopy report outlining specific recommendations from the analysis for ANG and individual bases. Contractor shall provide comprehensive electronic soft-copy report in Microsoft Office application suite format that documents both qualitative and quantitative observations, and comparisons of ANG’s existing DCE. Contractor shall provide one TCO Assessment Report for each base and one rolled-up TCO Assessment Report for the command. Each report deliverable will contain the following sections:

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Section 1. Executive Summary

The report will contain a summary of the following sections suitable for the executive reader.

Section 2. Project Plan Review

This section will contain a narrative describing the process and methodology used to develop the report. Section will include a summary of:

Scope Total Cost of Ownership (TCO) Benchmark Study Objectives Key Assumptions Geographic Extent Of Study Data Collection Methods Project Schedule Project Members DCA Chart Of Accounts Best Practices Reviewed Complexity Benchmark Comparison Overview – Actual / Simulation / Worst / Best

Section 3. Data Collection Summary

This section will contain a narrative describing the results found from the analysis including:

Summary Of Costs Assets Asset Costs Summary Operations Costs Summary Staffing Costs Operations Staff & Vendor FTE Counts NCC Help Desk Statistics Desk Side Support Activity Analysis Administration Costs Summary Administration Staff & Vendor FTE Counts End User Operations Cost Summary End User Operations FTE Counts End User Downtime Cost Summary Downtime Calculation Summary Best Practices Current Environment – Complexity End User Survey Results Key Utilization Metrics Potential Data Integrity Issues

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Section 4. Success/Challenge AnalysisThis section will contain narrative describing the success and challenges found and the root cause analysis results.

Overview Successes – Green Status Factors Requiring Investigation – Yellow Status Challenges – Red Status Factors Off the Scale – Black Status Summary of Root Cause of High Costs

Section 5. Recommended Improvements

This section will contain a narrative describing the recommendations of improved best practice areas, technologies, and/or by reducing complexity:

Best Practice Opportunities TCO Reduction Opportunities

Business CaseThe purpose of the cost/benefit analysis and business case report is to optimally size investments fit for purpose (i.e. the 80% solution rule-of-thumb). The goal is to assess which alternatives have the best possibility for success. Contractor shall conduct Discovery Interviews with ANG TCO assessment team and key staff to gather information relating to the “Target” best practice improvements; proposed technology changes; associated implementation costs; timing and benefits of the proposed improvements. The Discovery Interviews are used to gather information related to “desired state” of the network environment and preparation for a cost/benefit analysis. Contractor shall work with ANG TCO assessment team to transfer knowledge and skills on business case development. Business case development includes articulation of a minimum of three alternative scenarios and assessing the following criteria for each:

Direct and indirect cost savings Intangible benefits Implementation costs & timing Risk mitigation Internal rate of return Return on investment Break-even point Key performance indicator measurements*

Note: key performance indicator measurement progress can be reported monthly through the Customized Performance Management Reporting Service.

Stage IV – Reporting will be concluded with the posting of the TCO Findings Report and Business Case report to the myKPI Web Portal for dissemination.

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Optional Services

Detailed Analysis Training & IT Value Alignment WorkshopThe purpose of the Detailed Analysis Training and IT Value Alignment Workshop is to provide skills transfer. Contractor shall facilitate an optional one-week Analysis Training and IT Value Alignment Workshop session in Toronto for ANG to train up to 5 individuals in the basic methodology and techniques used to analyze the raw data report generated by the DCA model. This training, while not in-depth enough to allow an individual to develop an accurate report of findings, will provide an individual with the capability to validate a report of findings and be able to substantiate and defend the recommendations put forth in a report of findings. Additionally the IT Value Alignment Workshop session will focus on identifying the key performance measures and indicator which help to increase the value of IT for the command. A prerequisite is subscription to the TCO Findings and Analysis Reporting service.

TCO Light Data CollectionThe purpose of the TCO Light Data Collection is to establish an estimated TCO baseline with less effort than a full TCO Assessment. Contractor shall optionally provide a Light version of the TCO assessment (TCO Light) to help gather important key performance indicators (KPI). From the TCO Light assessments, Contractor shall establish the estimated TCO “baseline” for the subject location. Contractor shall compare the KPIs to previous year baseline data (if available) to determine trending (positive or negative).

Web Based Training for TCO Light Data Collection The purpose of the Web Based Training for TCO Light Data Collection to provide the necessary working knowledge required to use the eSurvey tools and web portal. Contractor shall facilitate a 2-hour Web Training session for the base project leads and survey team members. ANG will send an invitation to base project leads and survey team members with details on attending Web Training sessions. The Web Training sessions will focus on the eSurvey tools, process, time-constraints and support aides. The prerequisites for training are participants will require a Web Browser (Internet Explorer 5.0 of higher), access to the Internet and a telephone conference number.

Onsite Executive Briefing SessionThe purpose of the Optional Onsite Executive Briefing Session is to provide knowledge transfer. This ½ day executive overview reviews the insight and advice found from the TCO findings report and/or business case report; general industry best practices; and helps to articulate the TCO program’s value as a performance management tool.

ITIL Executive Overview BriefingThe purpose of the ITIL Executive Overview Briefing is to provide knowledge transfer on the features and benefits of the ITIL Framework to the IS Executive. Many support departments are under pressure to improve service and reduce costs. They tend to work in reactive mode, as a loose collection of disparate groups, spending vast amounts of time fire-fighting and generally keeping their heads above water.

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ITIL™ (Information Technology Infrastructure Library) is a public domain approach for managing IT services. ITIL provides a comprehensive, consistent and coherent set of best practices for IT Service Management. This ½ day executive overview reviews the ITIL quality approach to achieving business effectiveness and efficiency in the use of information systems.

ITIL Foundations Training & CertificationThe purpose of the ITIL Foundations Training & Certification is to provide skills upgrade for IS management. ITIL™ (Information Technology Infrastructure Library) is a public domain approach for managing IT services. ITIL provides a comprehensive, consistent and coherent set of best practices for IT Service Management. This intensive 2 ½ day course focuses on the concepts, terms, definitions, objectives, benefits and relationships within the core service management processes and functions of ITIL. Course includes multiple-choice certification exam, participates must receive 65% to receive passing grade. Prerequisites are some working experience in IT; location determination; and a minimum class size of 10 students. This Foundation Certificate is a prerequisite for all other levels of ITIL certification, and is designed as an introductory ITIL qualification for all professionals who want to become familiar with best practices for IT service management. The course will cover the following discipline areas:

Service Delivery Service Support Service Level ManagementIT Financial ManagementCapacity ManagementContinuity ManagementAvailability Management

Service DeskIncident ManagementProblem ManagementChange ManagementRelease ManagementConfiguration Management

ITIL Support and Delivery Process Maturity AssessmentThe purpose of the ITIL Support and Delivery Process Maturity Assessment is for process maturity and gap identification. The ITIL Maturity Assessment is used to determine the current maturity of the organization's processes in relation to the ITIL framework and identify where gaps exist.

Contractor will provide ANG with ITIL self-assessment tools to gather and document the current level of maturity within the organization. The self-assessment scheme is composed of a simple questionnaire which enables you to ascertain which areas should be addressed next in order to improve the overall process capability. The assessment is based on a generic framework, which recognizes that there are a number of structural elements, which need to be in place for process management and for it to satisfy the overall intent and meet the needs of the customer.

The ITIL Maturity Assessment includes review and assessment of the following processes:

Service Delivery Service Support Service Level ManagementIT Financial ManagementCapacity Management

Service DeskIncident ManagementProblem Management

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Continuity ManagementAvailability Management

Change ManagementRelease ManagementConfiguration Management

Onsite IT Functional Capability Maturity Assessment The purpose of the IT Functional Capability Maturity Assessment is to determine the strength, weakness, opportunity or risk; the level of maturity; and potential gaps within subject functional process areas. The list of issues are used to help determine the gap between the current and the desired states of the identified functions and may be used to create a baseline against which future service delivery will be assessed.

Key functional processes within respective areas are rated using the Capability Maturity Model (CMM) levels developed by the Software Engineering Institute of Carnegie Mellon University, Pittsburgh, PA.

Level 1: (Undisciplined or ad hoc processes) Level 2: Repeatable (Disciplined Processes) Level 3: Defined (Standard Consistent Processes) Level 4: Managed (Predictable Processes) Level 5: Optimizing (Continuously Improving Processes)

Contractor and ANG will identify key ANG management staff and schedule a number of functional process interviews each lasting approximately 1.5 hours over a one - two week span at ANG’s location of choice. Functional process areas can include any of the following areas:

Network Operations Computer Operations

Unix Support

NT Support Desktop Support Database Support Help Desk e-mail Storage

Management IT Asset

Management IT Acquisition IT Education

Services

Project Implementation Planning ServiceThe purpose of the Project Implementation Planning Service is to enhanced senior management decision making ability through strategy and plan development. The goal of the Project Implementation Planning Service is to develop an implementation strategy and plan to successfully transform the current recommendations from the business case service into action. The objective is to enhance ANG’s decision-making regarding the necessary costs, time, resources and consequences to implement the proposed recommendations. The scope of the Project Implementation Planning Service is variable based on the complexity of the recommendations. The methodology used in the development of the strategy and plan will include:

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1. Discovery—Current environment reviewa. Review/familiarization of current practices/capability/architecturesb. Identify stakeholder/partner capabilities and requirements

2. Best practice analysisa. Identify applicable best practice targetsb. Identify applicable technologies, tools and Tactics, Techniques Procedures (TTPs)

3. Target environment/capability analysis and determinationa. Determine feasibility of implementing best practice targetsb. Implementation ease, political limitations, costs, benefit, etcc. Determine performance criteria metrics

4. Implementation plan developmenta. Determine necessary requirementsb. Determine success criteriac. Change consequences

5. Implementation plan delivery/hand off

The Implementation Strategy/Plan will include four distinct deliverables:

1. Current capability assessment2. Implementation strategy/plan recommendations3. Risk management plan4. Review presentation

Program/Project Management OfficeThe purpose of the Program/Project Management Office is to assist ANG in delivering projects and/or improvement initiatives on-time and on-budget. Given critical dependencies that exist between multiple engagements and projects, project teams should work in conjunction with a program/project management office (PMO) to ensure timely and coordinated delivery of projects and improvements. The PMO is responsible for the following:

1. Measuring and Reporting Progress 2. Defining Milestones and Deliverables3. Monitoring and Reporting the Status of Key Milestones and Deliverables 4. Preparation of Weekly Status Meetings, including:

a. Accomplishmentsb. Issuesc. Completion Percentaged. Burn rate

5. Monitoring Issue Resolution 6. Managing Change Control Process

a. Preparing Estimates for Change Requestsb. Conducting Change Control Meetings c. Conducting Impact Assessment for Agreed-upon Changesd. Update Plan to Reflect Changes

7. Coordinating of Institutional and Retail Initiatives 8. Promoting and Aiding Software Object Reuse

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9. Fostering Clear Communication of Multi-Site Project 10. Maintaining Project Documentation Repository 11. Managing Sign-Off of Key Deliverables 12. Conducting Quality Assurance Reviews

a. Establishing Quality Standards b. Performing Quality Reviews to Review Reasonableness of Planned Deliverables

and Dates

c. Managing Standards Adherence 13. Identifying Potential Synergies among Various Components14. Synchronizing Activities among Geographies15. Fostering Communications among Geographies and Business Units 16. Facilitating Workshops and Software Trials17. Conducting Risk Review -- Reoccurring18. Establishing Shared Risk Mitigation Plan

The scope of the PMO is variable based on the complexity of the projects and expected improvement initiatives. The resources used to staff the PMO are experienced program/project managers and business consultants who are subject matter experts. The following outline provides the attributes of the PMO resources and their skill-sets:

Program/Project ManagementMinimum General Experience

Ten (10) years experience managing a staff of consultants and support staff to implement a strategic program or lead and direct a project team; allocates work among the staff and provides guidance to team members; prepares project schedules and performs routine employee relation activities.

Functional Responsibility:

Responsible for the successful implementation and delivery of strategic programs. Including project plans, level of effort estimates, scheduling, monitoring and progress tracking of project.

Allocates work, provides advice, guidance and training to subordinates, and recommends personnel staffing.

Responsible for program and risk management including strategy, project controls, project plan reviews, risk analysis and mitigation, staffing, and organizational development.

Minimum Education

Master’s Degree, or a Bachelors Degree and ten years of relevant experience; or equivalent combination of experience.

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Business ConsultingMinimum General Experience

Twenty (20) years of progressive consulting experience, providing information technology (IT) organizational, strategic and technology recommendations and support to large scale, enterprise-wide operations and organizations. Experience includes working with executive management in large government and commercial organizations to assess, diagnose, recommend and implement large scale organizational, strategic and technological programs and projects. Experience includes company-wide strategy implementation; designing, leading, and organizing organizational workshops and seminars; performing benchmark studies; create unique procedures and methods to support implementation of approved strategy or business change or improvement; conduct training sessions; provide mediation and facilitation services and executive coaching; publish articles regarding strategy development.

Functional Responsibility

Provide consulting to chief information officers, vice presidents, directors and senior managers on implementation of IT wide strategy development, implementation and process improvement initiatives. Possesses extensive experience in group collaboration and one-on-one executive coaching to organization leaders.

Design, organize, lead and conduct executive level workshops, seminars, training sessions and facilitation.

Tailor strategy development, implementation and quality improvement courses and workshops for an IT organization and its specific needs.

Design, organize, lead and conduct benchmarking and surveys for an organization.

Creates original and innovative models and techniques to facilitate organizational assessment, strategy development, implementation and process improvement efforts requiring a mastery of technical and financial expertise in scientific/technical/accounting disciplines or area.

Manage a team of senior consultants and analysts supporting an IT organization’s assessment, strategy development, implementation, organization change, process improvement and training efforts.

Give lectures, speeches or write original articles or documents relating to strategy development, implementation and process improvement or technical enhancements to process improvement and customer service.

Minimum Education

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Master’s Degree in Business or Public Administration, or a Bachelor’s Degree; or equivalent combination of education and/or experience.

Customized Performance Management Reporting ServiceThe purpose of the Customized Performance Management Reporting Service is to inspire change “what gets measured, gets done”. Performance management is the activity of tracking performance against targets and identifying opportunities for improvement – but not just looking back at past performance. The focus of performance management is the future – what do you need to be able to do and how can you do things better? Managing performance is about managing for results. Performance-based management at any level in the organization should demonstrate that:

you know what you are aiming for

you know what you have to do to meet your objectives

you know how to measure progress towards your objectives

you can detect performance problems and remedy them.

The goal of the Customized Performance Management Reporting Service is to provide ANG a method to report the progress of improvement initiatives.

Contractor will develop and host additional performance management measures through dashboards and scorecards to independently monitor and report on ANG’s progress in operations and processes within a strategic change program framework. Results will be posted monthly to the myKPI web portal. Any thresholds exceeded will generate alerts and events, which will be actioned through email on a predetermined escalation chain.

Contractor will work with ANG to determine Key Performance Indicators are to be monitored, at what frequency, thresholds for alerts and escalation paths. The scope of the Customized Performance Management Reporting Service is variable based on the complexity of the improvement initiatives and reporting requirements. The methodology used in the development of the Customized Performance Management Reporting Service will include:

1. Setting performance goals, objectives and targets2. Designing measures of performance relevant to the targets

3. Systematically and accurately acquiring measures

4. Identifying roles, responsibilities, actions and escalations

5. Reporting and communications requirements

Project Deliverables ListContractor will provide the following deliverables as part of the data collection and TCO Findings and Analysis Reporting:

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Project Manager myKPI Web Portal Data Collection Tool Facilitation of a TCO Training Teleconference reviews with each location Data collection forms, templates and help aids 1-800 (North America) telephone support during data collection phase TCO Manager EXD Export Files TCO Findings & Analysis Report Business case report Hosting the final reports on myKPI web portal for 1 year

MilestonesThe following milestones have been identified for the TCO project:

Milestones Target DateRequirements planning completedeSurveys tested and readyTCO team training completedData collection completed Data validation completedDCA Data files are posted to webAnalysis completedRecommendations reports are completedScorecards are postedBusiness case completed

Participating LocationsThe following locations have been identified as subject areas for the TCO project:

Base Wing ID User Population

[insert base here] [insert Wing here] [insert User population

here]

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Project AssumptionsThe following assumption approximations have been identified:

Description AssumptionStart Date Feb. 15, 2005Time to complete 16~21 WeeksFinancial Year to Capture FY 2004Number of PC Users [insert Users here]Number of IT Staff (CS, WM, FSA)

[insert IT Staff here]

Number of MAJCOM/Base/GSUs myKPI repositories

[insert participating locations here]

Number of MAJCOMs 1Language interviews, presentations, support, surveys & reports

English

Travel costs included NoTravel to HQ offices required YesTechnology devices in scope Unclassified Midrange, Network, LAN,

Servers, Peripherals, Desktop, MobileSoftware applications in scope Commercial off the shelf costs onlyCurrency reported US DollarsANG project team assigned with adequate representation to provide TCO data and attend training workshops

Yes

Number of onsite eSurvey Team Training days for ANG

3 days

Maximum number of one-on-one teleconference Interviews

[insert number of locations here]

TCO User eSurvey sample size [insert expected number of User respondents here]

TCO IT Staff eSurvey sample size

[insert expected number of IS Staff respondents here]

TCO End User eSurvey medium Conducted by ANG Users via email to an internet URL Web Page.

Number of TCO Manager EXD Export Files

[insert number of locations here including MAJCOM]

Number of electronic softcopy TCO Findings & Analysis Reports

[insert number of locations here including MAJCOM]

Number of onsite Detailed Training Days per MAJCOM in Toronto Ont.

3

Number of softcopy Business Case reports (3 scenarios)

1 - MAJCOM

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Project Management ApproachProject Gantt ChartThe following Gantt Chart overview provides the expected timing for each stage:

ID Task Name Start Finish Late Start

1 PACAF TCO Project Tue 2/15/05 Fri 6/24/05 Tue 2/15/05

2 Stage I - Preparation Tue 2/15/05 Fri 3/18/05 Tue 2/15/05

3 Requirments Planning Tue 2/15/05 Tue 2/22/05 Tue 2/15/05

4 eSurvey Design/Test Wed 2/23/05 Tue 3/8/05 Wed 2/23/05

5 eSurvey Team Training Wed 3/9/05 Fri 3/18/05 Wed 3/9/05

6 Stage II - Assessment Mon 3/21/05 Fri 4/29/05 Mon 3/21/05

7 Data Collection Mon 3/21/05 Fri 4/15/05 Mon 3/21/05

8 Data Validation Mon 4/18/05 Fri 4/29/05 Mon 4/18/05

9 Stage III - Analysis Mon 5/2/05 Fri 5/27/05 Mon 5/2/05

10 Stage IV - Reporting Mon 5/30/05 Fri 6/24/05 Mon 5/30/05

11 Finding report Mon 5/30/05 Fri 6/24/05 Mon 5/30/05

12 Business Case Mon 5/30/05 Fri 6/10/05 Mon 6/13/05

M E B M E B M E B M E B M E B M E B M E B M EFebruary March April May June July August September

Project OrganizationThe following diagram provides an overview of the organizational structure and project team members required for the TCO project:

Project Effort EstimationThe following table estimates the time commitment required from each of the project team participants during the preparation and data collection stages. Names have been indicated where available:

Role Assigned RepresentativeANG TCO Assessment Manager [insert POC here]ANG TCO Government Representative [insert Gov. Rep here if

applicable]Base Project Leads One Comm. Sqdn. repBase Survey Team Members Various base reps

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ANG TCOAssessment Team

MicromationProject Manager

Base Project Lead(1 per location)

Sr. Business Analyst

Sr. Business Analyst

Base Survey Team

Business Analyst

Service/Help Desk


Role Assigned RepresentativeContractor Engagement Manager David SmithContractor Project Manager John LutzContractor Sr. Business Analyst Alex SokolowContractor Sr. Business Analyst Bill CarruthersContractor Business Analyst Jim JanesContractor Service/Help Desk Janice Janes

Project Roles and ResponsibilitiesContractor ResponsibilitiesContractor shall be responsible for performing the tasks described below. Contractor shall provide management services through a Project Leader, who will be responsible for the administration and technical direction of overall Contractor effort on this project. The Contractor Project Manager will be the focal point for coordinating Contractor joint activities with the ANG TCO assessment manager. The Contractor Project Manager will:

Work with the ANG TCO assessment manager to develop a mutually acceptable project plan within two weeks of project initiation;

Maintain project communications through the ANG TCO assessment manager; Measure and evaluate progress against the project plan; Resolve deviations from the Project Plan with the ANG TCO assessment manager; Provide the ANG TCO assessment manager with the data collection templates, the data

collection support aides, end user survey and data repositories; and Prepare and submit weekly status updates using E-mail to the ANG TCO assessment

manager, highlighting task completion, schedule attainment, future objectives and inhibitors requiring management attention

ANG ResponsibilitiesANG TCO assessment team will be responsible for performing the tasks described below. ANG will:

Be responsible for the actual content of any data files and implementation of controls on its access and use, and security of the stored data.

Be responsible for the identification and interpretation of any applicable laws, regulations and statutes that affect ANG systems or applications which Contractor shall have access to during the project.

Provide suitable office space, office supplies, furniture, telephone and other facilities equivalent to those provided to other project teams while working on ANG premises.

Provide all necessary clerical, reproduction, and typing services required to support the Contractor personnel while working on ANG premises.

Temporarily provide contractor with Gartner license key during project, contract will return key after completion of project.

Meet all milestones for training, data collection and validation time-frames. Appoint a ANG TCO assessment Manager and base Project Leads for the TCO

assessment who will:- Work in tandem with the Contractor Project Manager;- Provide timely access to information required for the study;- Attend designated training sessions;

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- Complete data collection templates in a qualitative and timely manner;- Appoint and manage key contact personnel at remote locations;- Participate in the selection of interview candidates;- Manage the distribution and return of the eSurveys that are supplied by the Contractor

Project Manager;- Identify personnel to assist Contractor in reviewing and validating interim data and

findings as the analysis progresses;- Provide logistical support for the distribution, collection and processing of end user

surveys

Detailed Roles and Responsibilities Definitions ChartThe following table outlines the roles and responsibilities of the project members:

Role ResponsibilityANG TCO assessment team Overall project acceptor

Provides vision and direction Authorizes changes to project scope Participates in preparation and planning Provides project leadership Assigns resources to project team Delegates tasks and activities Keeps project on schedule Manages project challenges as they arise Assists in communications, scheduling, facilities General project administration and coordination Assists in User Survey dissemination Provides contact lists and details

Base Stakeholders, Project Leaders and Survey Team Members

Provides project leadership Assigns resources to project team Delegates tasks and activities Keeps project on schedule Manages project challenges as they arise Attends training sessions Provides data required by the TCO assessment

eSurveysBase Customers1 Responds to customer/end user eSurvey requestContractor Project Leaders and Business Analysts

Provides project team guidance & support Provides methodologies, process and templates Facilitates all workshop, interview & round table

discussions Collection point for all data

1 Excluding communications squadron personnel.

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Change and Issue Management ApproachChange Management Process & AuthorityOccasionally during the TCO assessment project, it will be necessary to make changes to resource assignments, schedules and scope of effort, which may result in engagement cost increases. The following table depicts the change management process and approval levels:

Change Type Authority LevelChanges not affecting cost [insert POC name here]Changes affecting cost [insert POC Boss name

here]

Changes will be processed as a modification to the contract/task order. Evaluation and/or implementation of requested changes might result in modification to price, schedule or other terms of this agreement.

Project Escalation & Risk Management ProcessProject escalation is necessary when tasks, milestones and project schedules are compromised due to lack of resources or prioritization conflicts resulting in missed schedules and cost overruns. The following table depicts the escalation process to be used in the event of missed project task due dates, please modify where appropriate:

Severity Level Escalate To1st Level Escalation Critical tasks in risk of missed completion date Non-Critical tasks that missed completion date

Base Project LeadsCC: [insert POC name here]& [insert POC Boss name here]

2nd Level Escalation Milestones in risk of missed completion date Critical tasks that missed completion date Identified risks which may impact completion dates,

costs, and/or project scope

[insert POC name here]

3rd Level Escalation Project in risk of overrun and/or cost increases Milestones that missed completion date Identified risks which will impact completion dates,

costs, and/or project scope

[insert POC Boss name here]

Communications and Control ApproachContractor Project Leader and ANG TCO assessment Manager will host a weekly project status meeting via telephone. Contractor shall update a master project schedule and provide updates via e-mail to project members on a monthly basis.

Payment ScheduleCLIN ITEM Qty001 TCO Data Collection Training Class002 End User / IT Staff eSurveys

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003 Base/ANG Data Collection & Gartner EXD Report004 Base/ANG TCO Report of findings005 ANG Business Case report006 Detailed Analysis Training & IT Value Alignment Workshop days007 Base/ANG TCO Light Data Collection & Gartner EXD Reports008 Web Based Training for TCO Light Data Collection days009 ITIL Executive Overview Briefing days010 Onsite Executive Briefing days011 ITIL Foundations Training & Certification days012 ITIL Support and Delivery Process Maturity Assessment days013 Onsite IT Functional Capability Maturity Assessment days014 Project Implementation Planning Service days015 Program/Project Management days016 Business Consulting days017 Customized Performance Management Reporting Service days

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