# Presentation: 001912

## DOI Enterprise Resource Management Program

- CPIC Advance
- Last Updated – January 2005
- Prepared by: Samantha Goldstein
- Enterprise Resource Manager

**United States Department**** ****of the**** ****Interior**** **

## ERM Program Highlights

- •	ERM Program was officially established in February 2003 to support the Administration’s E-Government Goal emphasizing improved delivery of IT products and services at reduced costs.
- •	Key ERM Program Objectives are to:
- 	−	Coordinate and consolidate the acquisition and management of IT hardware & software products across DOI.
- 	−	Ensure that acquired IT products and services comply with standards and specifications prescribed by 	enterprise architecture (updated TRM versions).
- 	−	Provide marketing and outreach to DOI users on enterprise-wide contracts to ensure that they can quickly and 	easily obtain the products that they need through on-line ordering systems.
- •	Key information related to the contracts covered under the ERM Program, is posted on DOI’s password-protected storefront - _[http://](http://www.doi.gov/ocio/erm/)__[www.doi.gov/ocio/erm](http://www.doi.gov/ocio/erm/)__[/](http://www.doi.gov/ocio/erm/)_
- •	Prior to establishment of ERM Program, DOI bureaus contracted out separately for IT products and services without any type of acquisition coordination.  This lead to wasted resources, and acquiring products that did not always support DOI’s technical infrastructure.

## Key Phases of Acquisition Process Used to Establish DOI-wide Agreements

- DOI
-  Stakeholder

- DOI Architect

- DOI ERM

- DOR ARB

-  DOI IPT

- Phase 1 Establish Technical Working Group

- Phase 2: Define Requirements

- Phase 3: Develop
- Solicitation

- Evaluate
- RFI

- Finalize
- Acquisition
- Strategy

- Draft
- Solicitation

- Identify
- Requirements

- Appoint Technical
- Team

- Appoint CO

- Appoint Price &
- Evaluation Team

- Draft SOW

- Issue
- RFI

- Appoint Program
- Manager

- Issue
- RFQ

- Obtain Vendor
- Responses

- Conduct
- Price
- Evaluation

- Request
- Clarification

- Conduct
- Technical
- Evaluation

- Establish
- Range
- Considerations

- Conduct
- Negotiations

- Obtain Best
- and
- Final Offer

- Issue
- Award

- Complete
- Source
- Selection

- Finalize
- Award
- Decision

- Administer
- Contract

- Phase 4: Establish Procurement

- Document
- Standardization
- Decision

## Hardware BPA Highlights

**Vendors Currently warded BPAs:**
**•****	****	**PCs & Servers - 			Dell Corp.
- •		Ultralight Laptops - 		NCS Technologies, Inc.
- •		Traveler / Telecommuter Laptops -	IBM Corp.
- •		Tape Library -			loDynamix
** ****Duration of Agreement:**
**•****	****	**Established in June – August 2003, with a 1 year base period and 1 Option Year for renewal.
**	****Contract Re-compete Deadline:**
- •		Contracts are currently up for re-competition / renegotiation.
- •		Emphasis is placed on reviewing and revamping existing requirements for select hardware equipment that will 		be used as basis for new solicitations.
- •		New awards for select equipment need to be made between June – September 2005.** ****	**

## Hardware BPA Highlights

**Key Advantages of Using Hardware BPA:**
- •	**Establishes Product Standards for Select Equipment**.  All hardware equipment products on BPA have standard configurations with select options that conform to the requirements developed and agreed to by DOI’s Platform Domain Architecture Team (DAT), and the acquisition community.  This ensures that appropriate equipment is in place to support key DOI infrastructure initiatives.  Requirements will be continuously reviewed and updated.
- •	**Yields Substantial Cost Savings**. DOI’s combined savings for FY 2003 and FY 2004 total nearly **$11 million**, or **19%** below GSA-schedule pricing.
**•****	****Provides for Flexibility in Purchasing.  **BPA contract type allows DOI customers to purchase desktops, laptops, and servers directly off the contract at anytime throughout the duration of the contract, without having to commit to specific quantities up-front.
- •	**Promotes Acquisition of Up-to-Date Products.**  Each BPA goes through a technology refresh review by the DAT on a quarterly basis to ensure that DOI is taking advantage of the latest technological advances.
- •	**Promotes E-Commerce Goals**.  Established on-line orderings systems for each BPA/vendor allow DOI customers to place orders and make purchases on the spot.

## Hardware BPA HighlightsDOI & GSA Cost Comparisons for FY 2003 & 2004(IDIQ Basis)(Dollars in Millions)

| Hardware Products  | Actual DOI Cost  | Comparable GSA Cost  | DOI $ Savings Over GSA  | DOI % Savings Over GSA  |
| --- | --- | --- | --- | --- |
| PCs (Office Automation, Power GIS Models)  | $27.57 | $34.00 | $6.43 | 18.91% |
| Laptops (Telecommuter, Traveler, Ultralight)  | $5.56 | $7.11 | $1.55 | 21.80% |
| Servers (Small, Mid, Large)  | $8.11 | $9.81 | $1.70 | 17.33% |
| Total, All Hardware Equipment  | $41.24 | $55.88 | $10.82 | 19.36% |

## Software ELA Highlights

**Following Software ELAs are Established:**
**	****−****	**Oracle Enterprise Agreement 		−	Environmental Systems Research Institute (ESRI)
**	****−****	**Microsoft Enterprise Agreement		**−****	**MAXIMO Facility Management Software
- 	−	Symantec Enterprise Agreement		−	FBMS-support Software Licenses
**ELA Structure Consists of Two Types:**
**•****	****Minimum Seat Enrollment**** - **Commitment is required up-front for a specified number of seats for DOI to obtain maximum cost-savings.  This offering usually consists of license bundles and maintenance that best fits DOI needs.  The estimated savings to DOI from entering into ELAs, total over **$58+ million**, or **51%** below GSA-schedule pricing.
**•****	****Additional BPA Purchase Option – **ELAs also include a “true-up” option where DOI customers can purchase additional quantities of select products offered by Oracle, Microsoft, Symantec throughout the duration of the contract.  In FY 2004, DOI saved another **$1+ million**, or **23%** below GSA-schedule pricing for these optional products.

## Software ELA Highlights

**	****Key Advantages of Establishing Software ELAs:**
**	****•****	****Provides a Standard Microsoft Operating System Across DOI Organization.  **DOI standardized 	on Microsoft desktop and server products in September 2002, and is deploying the Active Directory 	throughout the Department to ensure that critical systems are consistently secured and managed 	across the enterprise.
**	****•****	****Promotes Using Standard Software to Support Major IT Projects / Systems.  **Established ELAs 	enable project managers to have easy access to the appropriate IT tools needed to implement major 	IT initiatives that support DOI’s key missions and programs.
**	****•****	****Enables DOI to Leverage Higher Volume Purchasing Power for Widely Used IT Products.  **By 	pooling together common requirements, DOI is able to obtain software at significantly lower cost 	than the individual bureaus would be able to obtain on their own.

## Software ELA Highlights DOI & GSA Cost Comparisons for Basic ELA Offerings(Minimum Seat Enrollment Required)(Dollars in Millions)

| Software Products | Actual DOI Cost 
 | Comparable GSA Cost | DOI $ Savings Over GSA 
 | DOI % Savings Over GSA | Duration of ELA |
| --- | --- | --- | --- | --- | --- |
| Oracle | $6.31 | $12.92 | $6.61 | 51.16% | 05/24/01 – 05/24/06 |
| Microsoft | $20.08 | $30.35 | $10.27 | 33.84% | 09/30/02 – 10/31/05 |
| Symantec | $1.47 | $2.78 | $1.31 | 47.12% | 09/30/03 – 09/30/06 |
| ESRI | $25.50 | $59.00 | $33.50 | 56.78% | 10/01/03  - 09/30/08 |
| MAXIMO | $2.64 | $9.11 | $6.47 | 71.02% | 09/30/02 – 09/30/05 |
| Subtotal | $56.00 | $114.16 | $58.16 | 50.95% |  |

## Summary of ERM Program Accomplishments to Date

**•****	****Established ERM Program Umbrella for Hardware and Software Contracts.**  Prepared marketing packages that 	outlined specific products offerings available under each contract to DOI users, and the savings generated from 	pursuing 	consolidated acquisitions in comparison with GSA-schedule pricing.
- •	**Developed Process to Capture DOI Cost-Savings / Avoidance**.  Given current data constraints, the comparison is 	based on 	comparing DOI costs for select products covered under each contract, with GSA-schedule costs for similar 	products.  The underlying assumption is that without the consolidated contract, DOI customers would have still 	purchased the same product quantities off the GSA-schedule.
- •	**Expanded Marketing & Outreach for Existing Contracts.**  Revamped and updated the storefront link – 	_[http://www.doi.gov/ocio/erm/](http://www.doi.gov/ocio/erm/)__ _to provide DOI customers with most up-to-date information so that they can easily 	access the products that they need off established contract vehicles.
- •	**Strengthened Collaboration Role w/ Domain Architecture Teams, ESRI rep, and Other Technical Experts.**  	Participated in ongoing phone conferences and monthly meetings held by Platform DAT to address issues surrounding 	the existing hardware BPA, and plans to re-compete for select equipment, based on changing DOI-user requirements.
- •	**Defined Acquisition Process Used for Establishing Future DOI-wide Contracts.**  Consistent with product standards 	and specifications outlined in the updated TRM version, the majority of future DOI-wide contracts will be established 	according to four key phases prescribed by the Federal Acquisition Process.

## ERM Program Challenges / Opportunities

- 	**Inconsistent Tracking of Hardware & Software Licensing Costs that Support Major Infrastructure Initiatives:**
- 	−	In concert with OMB’s budget guidance for FY 2006, DOI’s Office of Budget (POB) and the OCIO 	IT-PMD are emphasizing the need for more consistent tracking of investments reflected in the IT 	Infrastructure Business Case.  This includes the hardware and software licensing costs that 	support the major infrastructure initiatives.
- 	−	Currently, the bureaus are all tracking hardware and software licensing costs differently, making it 	difficult for DOI to accurately capture **$41+ million** in hardware costs, and **$56+ million** in software 	licensing costs in the Infrastructure Business Case, and in Part II of Exhibit 53.
- 	−	Given the magnitude of these licensing costs, there is an opportunity to capture them more 	accurately and consistently in the FY 2007 budget cycle by allocating them according to the defined 	OMB Budget Cluster and Category.

## Categorization of DOI-wide Agreements by Budget Cluster and Category

| DOI-wide Agreement | OMB Budget Cluster | OMB Budget Category |
| --- | --- | --- |
| Hardware Products | Computing Services | Desktop Hardware & Software |
| Microsoft Desktop & Server Products | Computing Services | Desktop Hardware & Software |
| Oracle Database & Server Products | Computing Services | Application Services |
| MAXIMO Facility Management Software | Computing Services | Application Services |
| Symantec Anti-Virus Software | Cross-Cutting Categories & Services | Security Category |
| ESRI Software | Cross-Cutting Categories & Services | Software Engineering |

## Next Steps

- 	**Achieving More Consist Tracking of Licensing Costs in FY 2007 Infrastructure Business Case:**
- −	Formal guidance will be issued by the OCIO – IT PMD for the FY 2007 budget cycle to provide direction to the bureaus on how to allocate their respective hardware and software licensing costs by the appropriate Budget Category and Cluster, as provided in the table.
- −	In the meantime each bureau should be getting ready for updating the business case by striving to accurately capture their respective licensing costs for the mentioned hardware and software agreements.
- −	The OCIO will also be developing a breakout of these costs by bureau that the bureaus can in-turn use for reference as they proceed to reconcile their initial figures against those provided by the Department.