Digital Systems Group, Inc.

**Capabilities Statement**

Established in 1982, Digital Systems Group, Inc. (DSG) initially
specialized in scientific and engineering computing including real-time
simulations for aircraft and aircraft systems, and RADAR and SONAR
processing. We also provided applications programming, systems analysis,
hardware design, hardware and software integration, and communications
support.

In 1984, DSG expanded the business to include financial and business
systems support. This expansion was in response to the needs of both
Financial Managers and Project Managers for better processes and tools,
for planning and managing budgets, and for the execution of funds. The
result was the design and development of the Integrated Financial
Management Information System (IFMIS) specifically for federal
government operations and was first installed in 1989.

DSG offers a unique commercial off-the-shelf (COTS) software package and
impressive technical and financial expertise that will ensure a
successful implementation for government. We will support the goals of
procuring a fully integrated COTS software package that meets both the
government's and the Joint Financial Management Improvement Program's
(JFMIP) functional and technical requirements; to support various levels
of user expertise; and utilize state of the art technology within a
Windows environment.

DSG will help the government achieve these goals with our success with
multiple federal implementations; our seasoned personnel who
consistently worked well together as a team; our solid interface,
conversion and reporting capabilities; a flexible and compliant system;
and by supporting both the functional and technical efforts with our
diverse and extensive capabilities.

Our keystone product is the Integrated Financial Management Information
System (IFMIS). IFMIS is a commercial, off-the-shelf (COTS) software
designed for federal government agencies and activities operating in a
Federal Financial Management (FFM) environment. IFMIS was designed and
developed specifically as a Federal Financial Management Software System
(FMSS). IFMIS was first implemented in 1989 and has been in continuous
operation throughout the federal government since that time. IFMIS went
on the GSA Schedule originally in 1994. After passing the Joint
Financial Management Improvement Program (JFMIP) IFMIS went on the FSC
Group 70 Schedule on October 1, 1999. As one of the largest providers of
federal financial management systems to the federal government with a
system that was designed exclusively for federal use, we have the
background and knowledge to meet the federal government's core financial
requirements.

IFMIS has several integrated modules that share a common database. The
core financial modules include Funding, Disbursements, Cost Posting,
Accounts Receivable and General Ledger and fully meet the requirements
of JFMIP; the Treasury Financial Manual; the published standards of the
Federal Accounting Standards Advisory Board (FASAB); the Privacy Act and
Office of Management and Budget (OMB) Policy Circulars A-123, A-127,
A-130, A-134, A-11 and A-34. IFMIS also supports Planning/Budget,
Billing, Property, Inventory, Procurement, Travel, Point of Sale and
Credit Cards. In addition, reporting capabilities are integrated into
each module of IFMIS.

Appropriately, IFMIS handles the financial management needs for both
appropriated funds and reimbursable funds such as the Defense Working
Capital Funds (DWCF). A brief summary of each module follows:

**Funding** - Processes direct appropriations of funds received from
Congress as well as funds authorized for reimbursement. Controls the
distribution of appropriations to the various funding levels and tracks
the available amounts at the different levels.

**Cost Posting** - Processes cost accumulation of purchase requests,
purchase orders, receiving reports and invoices. Updates the available
funds associated with these documents. Processes on-line transactions,
transactions received from external feeder systems, and those
transactions generated internally by the IFMIS Accounts Receivable
module and IFMIS Disbursements module.

**Accounts Receivable** - Processes various types of receivables for
federal and commercial customers. Generates billing documents,
calculates interest, penalties and administrative charges, matches
payments to invoice line items, and liquidates the receivables.

**Disbursements** - Offers invoice entry, certification, scheduling of
payments, and Treasury confirmation. Calculates discounts earned and
lost, lag time, and interest penalties according to the Prompt Payment
Act. Maintains vendor information for all types of government and
commercial vendors.

**General Ledger** - Maintains the Standard General Ledger (SGL) which
includes proprietary and budgetary accounts. Updates the debit and
credit balances of the accounts specified by transaction codes.
Transactions are recorded using the accounting classification structure
(ACS) and trial balances are generated for the levels of the ACS.
Produces the required financial reports for the current accounting
period as well as the month-end and year-end closings.

**Planning** - Allows project managers to establish multiple levels of a
plan from the project level down to the lowest level of the work
unit/work breakdown structure (WBS) level. Estimated hours, worker
years, and amounts for various types of costs (labor, material, and
services, for example) are entered on-line and can be modified for
different versions of a plan.

> **Budget Formulation -** Provides at both a detailed and summary level
> the information required for an A-11 budget submission. Uses actual
> cost incurred at the fund level as the basis of the formulation. Posts
> budget projection to the General Ledger to facilitate budget vs.
> actual.

**Billing -** Yields the billing records used to print preliminary and
actual bills of government and non-government customers and generates
the billing tape for Treasury. Produces comprehensive reports on
customers and creates the journal vouchers that feed the IFMIS General
Ledger module.

> **Property --** Has the ability to track both capital and non-capital
> items. Accumulates all the costs associated with the acquisition of an
> asset including installation and transportation costs. Tracks the
> source of the assets, as well as, purchase and in-service dates.
> Records estimated salvage value, if any. Calculates and records
> depreciation of capital assets. Calculates and records disposal of
> capital assets including gain/loss calculation. Maintains the current
> status, location and possessor of the asset. Allows for an asset to be
> allocated among various funds. Interfaces with Cost Posting and
> General Ledger modules.
>
> **Point of Sale -** Provides for the recording of funding documents
> for work to be performed. Allows for the estimation of the level of
> effort and costs associated with the job. Provides for the tracking of
> the progress of the job throughout the process. Generates the
> recording of actual costs associated with the job and the billing
> revenue generated. Interfaces with the Funding, Cost Posting and
> General Ledger modules.
>
> **Time and Attendance -** Allows for the allocation and tracking of
> hours to specific tasks within the agency. Provides a basis for labor
> cost accruals. Captures actual labor hours and costs facilitating
> estimated vs. actual time and cost comparison. Interfaces with both
> civilian and defense agency payroll systems. Interfaces with Funding,
> Cost Posting and General Ledger modules.
>
> **Procurement -** Provides for the tracking of purchases from initial
> request through receipt of material. Provides for multiple levels of
> approvals based on spending limits or other user-defined criteria.
> Generates standard government procurement forms. Capable of the
> electronic transmission of procurement documents. Interfaces with
> Funding, Cost Posting and General Ledger modules.
>
> **Travel --** Permits authorized users on-line access to enter,
> authorize, print and track travel requests/orders and associated
> vouchers. Per Diem rates, travel cost estimates, funds validation and
> availability, and personnel data are automatically provided to reduce
> errors. Creates obligations and cost invoices that are sent
> automatically to the financial system. Provides local and centralized
> forms printing for civilian, military, invitational and permanent-duty
> travel and claims forms. Produces necessary reports.
>
> **Consumable Inventory -** Records the receipt and utilization of
> materials used to produce a product. Maintains inventory valuation on
> a weighted average basis. Maintains minimum and maximum quantities, as
> well as, reorder point and unit of issue. Maintains source and
> description of inventory. Interfaces with Point of Sale, Cost Posting
> and General Ledger modules.
>
> **Credit Card** - ICVERIFY by CYBERCASH is integrated with IFMIS.
> Amounts pre-authorized through IFMIS are automatically charged to
> credit cards. Bank settlement files are automatically created and
> transmitted to the bank for all credit card billings generated by the
> system.

**Talented and Experienced Personnel**

The key personnel of any effort are just that -- key to the success of
the project. Our key personnel are selected from the best that DSG has
to offer. They are the experts in their respective fields. They are well
versed in government regulations, financial requirements and accounting.
They are strong in the technical aspects of implementations. They are
talented, knowledgeable and experienced and committed 100% to the
success of any implementation.

# 

# A Flexible System

When any new system is brought on-line in an agency, the "user-friendly"
issue is key. New users are more likely to "buy into" a system that is
simple to use and allows them the flexibility to perform their tasks as
needed. IFMIS is just that--easy to use and flexible. The ease of use is
built into the system with such features as systems integration, single
point of entry, on-line validations, on-line calculation of balances,
real-time updates of transactions, *ad hoc* reporting/query and IFMIS
Client Environment (ICE) Help.

IFMIS is also an extremely flexible system because it is substantially
table driven. Key elements are not "hard wired" into the IFMIS code.
This would require expensive vendor dependence or availability of
in-house information technology resources. Rather, this table-driven
design permits authorized government personnel to control and operate
IFMIS, by customizing, updating, and maintaining the system as needed.

# Interfaces

In order to support our customer's varying interface needs, DSG has
developed within IFMIS an outstanding import/export interface
capability. This capability has created many export files for external
systems accommodating the external system. IFMIS also receives many
files for processing from these systems and these files go through the
same edits and validations as the on-line transactions. The IFMIS
interface system ensures that all data is converted and reformatted into
the same standard interface record format. These interfaces allow only
valid charges against the Accounting Classification Structure (ACS) and
these new records are then posted to the cost accumulation tables. IFMIS
interfaces in real time and/or batch mode as necessary and is fully
functional to meet the government's exchange and data interface
requirements.

**Conversion**

DSG has also developed within IFMIS, a data conversion process that has
been very successful in converting and importing our client's historical
data. The Conversion Team works solely on data conversions from the
existing systems to the new IFMIS system. This team plans, develops
specifications, programs routines, tests and implements the data
conversion requirements set forth by the government.

**Reporting/Data Extract**

Reporting and data extract capabilities are key function for Federal
Financial Managers. Our IFMIS solution captures high-quality data with
its single source of entry, making it a corporate resource, and allowing
it to be viewed simultaneously as consolidated data for central
management and as segmented data for physically dispersed activities.
Authorized users can take any combination of data to review information
or to generate reports as needed. Reporting can be done in many
different categories, including OMB or Treasury specifications.
Information may also be acquired through on-line inquiries.

**Discriminators**

"We sweat the details." As a company, we tend to be tenacious in our
efforts to provide the best possible service and the best possible
system to our customers. We have an excellent balance of keeping our
eyes focused on not only the "big picture," but on the multitude of
details that make up the "big picture." We leave little or nothing to
chance.

We believe that it is fair to say that we are the only JFMIP certified
vendor with two 90 day or less implementations to their credit. We are
extremely proud of our implementations at the Office of Justice Programs
(OJP) at the Department of Justice (DoJ) and the Naval Facilities
Engineering Service Center (NFESC) and have actually encouraged other
potential customers to consider the positives of getting underway in 90
days. For instance, if the timing is such that a customer would be able
to start IFMIS in time to open the next fiscal year -- life may be
hectic 90 days prior, but the rewards are incalculable.

Without talking to or working with them it is difficult to substantiate
the statement that many of DSG's personnel can recite federal accounting
and budgeting rules and regulations by "chapter and verse." The many
successes that we have had in this arena substantiate this statement.
Our personnel pride themselves on the depth and breadth of their
knowledge and understand the urgency of staying current with changing
regulations.

Because of our commitment to offering the finest government accounting
software, we work proactively to implement future JFMIP requirements
early. We solicit draft documents of the proposed JFMIP changes and
improvements made by OMB and Treasury. We then use our software design
methodologies to incorporate these requirements for our customers. We
believe this distinguishes DSG, and in turn, IFMIS from the competition.

Since every IFMIS implementation involves multiple interfaces, DSG has
developed within IFMIS an outstanding import/export interface
capability. This capability has created many export files for external
systems accommodating the external system. IFMIS also receives many
files for processing from these systems and these files go through the
same edits and validations as the on-line transactions. The IFMIS
interface system ensures that all data is converted and reformatted into
the same standard interface record format. These interfaces allow only
valid charges and these new records are then posted to the cost
accumulation tables. IFMIS interfaces in real time and/or batch mode as
necessary and is fully functional to meet our customer's exchange and
data interface requirements.

And finally, the fact that IFMIS was designed specifically for the
federal financial management arena and has been certified by JFMIP is
key. IFMIS is a proven system that works, is easy to use and is
available today. Government activities utilizing IFMIS have experienced
significant and real monetary savings in overhead. IFMIS meets the
federal government's internal and external functional requirements and
yields even greater management rewards and financial control. IFMIS is
designed for federal government operations, it uses current technology
and is adaptable to meet all of the needs of the government.

# The Solution

DSG has a financial management solution that can be used throughout the
federal government. The combination of our excellent IFMIS system and
the expertise of our personnel are key to the success of this effort.
IFMIS "works" and is fully compliant with Federal regulations. IFMIS is
also easy to use, flexible, easily interfaced to other systems, features
a systematic data conversion capability and fulfills government's needs
for reporting. Our people are experienced, dedicated and determined to
work together with the federal government, to provide the best financial
management solution available.