Federal Firearms License Case Study 2010

Coloseum Software Corporation
Case Study 2010
Coloseum Software Corpora tion FFL Study 2006-2009

Case Study Coloseum Software has completed an extensive research study
on the FFL Dealer. This Case Study was conducted in effort to
prove electronic compliance software can reduce or eliminate
common human errors. The firearms industry is one of the
most regulated industries in America and as a result errors are
common and often result in the revocation of FFL licensees.
Prior to the release of compliancy software for the firearm
industry, dealers had limited tools to deal with human errors.
The following findings were gathered from a study commenced

with 100 participating FFL Dealers over a period of 3 years in 50
“It is important for the states. (2006-2009) The study was based on an average of 10,000
FFL Dealer to realize they firearm transactions per year.
are the keeper of records
The study consisted of the following:
as an extension of the
ATF who facilitates all • On site observation of the FFL Dealer.
paperwork. Only when • Data feed back.
that is understood will • Questions and Answers from the FFL Dealer.
we see significant • Inspection results before and after AIMI eBook Pro was
changes in the Firearms implemented.
Industry.”
Study Requirements: The FFL Dealers participating have been
James LaMonte , CEO inspected using manual methods or other electronic boundbook
Coloseum Software Corp. software and inspected again after using AIMI eBook Pro. This
study continues to prove that not only can the process of
purchasing a firearm be fast but also accurate for both the buyer
and for the FFL Dealer.
Accuracy
In 2005, one year prior to this study, 39% of FFL violations were based on mistakes or missing information on
the written Form 4473. 61% of violations were based on the other factors (i.e. disposition not complete,
firearms not entered, serial numbers improperly recorded, failure to complete a 3310.4, Multi-Handgun Sales
report). Coloseum Software set out to provide a vertical solution to address the everyday issues above and
beyond the common clerical errors with the Form 4473. This study reports the results based on these numbers.
*Data Sheet A provides the top 15 examples found in our study of repetitive mistakes made on the written form
4473. *Datasheet B covers the 61% of compliance violations not caused by the 4473. *Datasheets C shows
common occurrences when using AIMI eBook Pro.
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Case Study 2010
Time Saving
Several scenarios provided in *Datasheets D, E

& F will document the time involved in the
standard written 4473 method from our studies.
Coloseum Software’s designs reduce the
amount of time involved in a firearm sale by an
average of 86% with an average hourly
reduction time of 11 to 96 hours per week. This
frees up more employee resources to complete
more sales transactions in less time with more
accuracy.
Weekly Hour s Saved using AIMI eBook Pro.
Manual AIMI eBook Pro Time Saved * Percentage of Savings
2
Case Study 2010
eKiosk Online e4473
eKiosk by Coloseum Software Corp. enables any Federal Firearms
License (FFL) dealer using AIMI eBook Pro to have their customers
electronically fill out the required Form 4473 over the Internet using
Aimiebook.net. The Customer’s e4473 is then transmitted into AIMI
eBook Pro where it is placed in a holding queue to be completed
when the customer arrives to finalize the firearm purchase.
Note: Coloseum Software’s eKiosk is a pre-application to complete an

official 4473 and is not used in place of that method. The customer
must first present their valid, government issued ID before
proceeding.
eKiosk was released in January 2009 to eliminate the need for the FFL Dealer to purchase additional
hardware. With eKiosk, customers have no direct access to the Dealers firearm records so they can submit
the e4473 from any internet environment.
Time Reduction
Extensive research has proven that eKiosk not only saves time but also increases accuracy. This study has
shown a significant time reduction in the 4473 process using eKiosk.
Processing Facts:
• The implementation of the eKiosk process has reduced 4473 processing time by 85%.
• A typical written 4473 transaction has the average completion time of 30 minutes.
• A typical eKiosk 4473 transaction has an average time of 5 minutes and 51 seconds.
• If used in a state with a NICS check, and eSign is approved, the 4473 process can be
completed in 3 minutes and 28 seconds when using stored data in AIMI eBook Pro and the
Direct NICS Check offered in the AIMI eBook Pro.
• eKiosk 4473 transactions have a proven 99% accuracy rate (factoring in human data entry errors).
Customer Facts:
• eKiosk customers surveyed showed a 70% reduction in the stress level of completing written
4473 paperwork, when purchasing a firearm.
• 98% of eKiosk customers* surveyed stated they enjoyed the eKiosk experience and would
choose a dealer using eKiosk over a dealer who doesn’t, for future firearm purchases.
*Note 2% customers surveyed did not trust electronic online processing.
Dealer Facts:
• All Dealers in our study stated that using eKiosk has changed the way they do business,
allowing them to complete more sales transaction, in less time, with supreme accuracy.
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Case Study 2010
Common Errors Completing Written Form 4473
Datasheet A
During Coloseum Software’s three year study of nearly 30,000 firearms transaction, the following
data was reported.
• In three years, the study showed no changes in human errors. The original base
data was taken from a DOJ report for YR 2005 which reported 39% of errors were
4473 related, and 61% were non 4473 related errors.
• The following data will show there were no reductions in the occurrence of these
errors by any other available methods previous to the advent of compliancy
software.
• During the three year study the data showed common clerical errors could be
verified and quantified.
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Case Study 2010
Datasheet A
39% of FFL violations were based on mistakes or missing information on the written Form 4473 reported during
Coloseum Software’s 36 month study. The following are the results of 30,000 firearms transactions.
Acurracy Accuracy
Common Mistakes when Completing Written Form 4473 Aimi eBook Pro Solutions
Before After
Failure to include middle name and not middle initial on written form. 56.40% Aimi eBook Pro as well as the Kiosk will not allow dealer to continue a firearm sale if the 99%
middle name field is left blank. If a salesperson puts a middle initial instead of a middle name
the software will prompt for a complete middle name.
Failure to check firearm type on written form. 74.30% Aimi eBook Pro will not continue an electronic 4473 transaction if dealer has not checked a 100%
firearm type in Box 18 in the 4473 process.
Failure to have buyer resign written form if delayed. 63.70% Aimi eBook Pro promts dealer to have customer resign form if transaction is the next business 99%
day.
Failure to fill out multiple handgun form within 5 business days. 38.80% Aimi eBook Pro not only prompts the salesperson if a customer has purchased a handgun 100%
within 5 business days but also completes the multi sale form adding all information needed
and making the form available to print.
Failure to start written paperwork over after a transaction is on hold for 30 days. 47.80% Aimi eBook automatically calculates a transaction period on hold. After 30 days the 100%
transaction is cancled and moves to a canceled transaction folder to remind dealer to begin
transaction again as required by the DOJ.
Proceeding a written transaction before 3 business days with no reply from 77.40% Aimi eBook Pro will mark transaction with a green proceed after 3 business days and allow 100%
NICS. dealer to complete the transaction until that time.
Failure to dispose a firearm correctly on written form. 56.30% Aimi eBook Pro has exclusive features design to insure a firearm is disposed of correctly. The 99%
program is designed to take the user through a step by step process to dispose a firearm
prompting for every required field.
Failure to add city or state in city/state field on written form. 41.60% Aimi eBook Pro will not allow a customer to be saved if any of the required information fields 100%
are missing. All required fields for a firearms sale are highlighted in the add/edit customer
entry section.
Failure to have customer completely answer all required questions on written 55.10% Aimi eBook Pro follows all customer questions on form 4473. If a question is missed a prompt 100%
form. will inform the dealer or customer that the question is missed. If a question is answered
incorrectly Aimi eBook Pro will deny the firearm transaction only after form is signed by
customer.
Failure to add state of residence on written form. 56.30% Aimi eBook pro will not allow a firearm sale if required fields in the customer information are 100%
missing.
Failure to have customer sign and date written form. 67.30% Aimi eBook Pro will promt the sales person to print the first 2 pages of the 4473 and have the 99%
customer sign and date the form before proceeding.
Failure to add ID info on line 20A on written form. 65.10% In Aimi eBook Pro indentification is added in the customer profile. The program will not allow 100%
the dealer to save customer information without entering a valid form of identification. Aimi
eBook Pro will also track the expiration date of identification. A prompt will remind the dealer
when the identification is expired and will not allow a sale until the information is updated.
Failure to add MDI Date on 21C. 37.20% Aimi eBook Pro will not allow a transaction to complete without a entering an MDI date. 99%
When a transaction is out on hold the software will immediately check the delayed box in box
20C. The transaction will not continue until the MDI date is enterered into the software
changing the status of the transaction to proceed and allowing the salesperson to continue.
Failure to add 21D call back status on written form. 73.10% Aimi eBook Pro will promt the dealer to add call back status in line 21D 99%
Clerk fails to sign, date and add title on written form. 86.30% Upon ATF approval of eSign electronic signature in Aimi eBook Pro a captured signature will 99%
be used to avoid this issue.
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Case Study 2010
Most Common Complia ncy Errors

Datasheet B
During Coloseum Software’s three year study of nearly 30,000 firearms transaction the following
data was reported:
• In the three years the study showed that 61% of compliance violations were not
referencing 4473 issues.
• The original base data was taken from a DOJ report for YR 2005, which reported
61% of non 4473 errors occurred and only 39% were 4473 violations.
• What the following data will show is there were no reductions by any other
method previous to compliancy software to reduce these compliance errors.
• During the three year study the data showed common errors could be verified
and quantified.
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Case Study 2010
Datasheet B
Other Common Compliance Errors

61% of FFL violations were based on Other Common Compliance Errors reported during Coloseum Software’s 36 month
study. The following are the results of 30,000 firearms transactions.
Other Common Compliance Errors Acurracy Before Aimi eBook Pro Solutions Accuracy After
Dealer fails to check if an FFL is active when aquiring or transferring a firearm. 27.30% Aimi eBook is equiped with eFFL check. The software will pull required information into Aimi 100%
eBook and track the expiration of the FFL prompting the Dealer to recheck upon expiration.
Dealer fails to complete a NICS check. 76.30% Aimi eBook is equiped with NICS EZ Check. This allows Dealer to do a quick NICS check within 100%
the software returning the NTN number to the 4473 form.
Dealer fails to record dispositions correctly in boundbook. 33.70% When a firearm is disposed in Aimi eBook the software automatically records the disposition 99%
in the boundbook with all required information.
Dealer fails to complete NFA forms correctly when transfering a firearm. 38.50% Aimi eBook has built in NFA forms. When doing an NFA transfer forms 3, 4 or 5 will 99%
automatically fill out within the program. All other NFA forms are built into the program as
well.
Dealer fails to properly submit Theft/Lost paperwork. 41.70% Aimi eBook has a Theft/Lost report built in to the software. 99%
Dealer fails to properly submit paperwork when destroying a firearm. 53.80% Aimi eBook has a Destroyed Firearms report built in to the software. When completing this 99%
process the application will submit the destroyed firearm into the boundbook automatically.
Dealer fails to properly submit firearms when they are aquired. 38.30% When submitting a firearm that has been aquired Aimi eBook highlights all fields that are 99%
required by the ATF for the dealers boundbook. When saving the information promts will
show if any of the required field are left out not allowing you to save the firearm until all
required field have been entered.
Accuracy Percentage
* 61.80%
120
120
* 96 Hours * 99.9%
100
100
Manual
100 8080 Accuracy
* 61.26%
6060 eBook Pro

Accuracy
4040
2020
* 11 Hours
10 0
Manual eBook Pro
Accuracy Accuracy
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Case Study 2010
Common Errors using AIMI eBook Pro
Datasheet C
During Coloseum Software’s three year study of nearly 30,000 firearms transaction the following
data was reported:
• The following datasheet will list the common errors using AIMI eBook Pro.
• A large percentage can be reduced with DOJ adoption of eSign.
• As with any introduction of technology there is a natural evolution of the

technology and the user’s adjustment to the technology.
• During the three year study the data showed common errors could be verified
and quantified.
Learning curve in technology and user training along with other methods will further
reduce common human errors. Software is only a tool and not a replacement for human
interactions
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Case Study 2010
Datasheet C
Common Errors using AIMI eBook Pro

Common Errors reported during Coloseum Software’s 36 month study. The following are the results of 30,000 firearms
transactions.
Common Errors Found When using Electronic System Occurances Aimi eBook Pro Solutions Accuracy After
Deringer is not recorded as a handgun /no multi sale form prompt. 2 System changed to add new type. This allows for 100%
user to select whether it's a pistol or handgun.
Multi sale form updated and will be released in
version 2.
Dealer does not sign and date Form 4473 after printing from system. 383 Upon ATF approval of eSign electronic signature 100% Upon Approval
in Aimi eBook Pro a captured signature will be
used to avoid this issue.
Dealer does not print instruction pages. 563 Aimi eBook Pro will print all pages of the 4473 99%
including the instruction pages as required by the
ATF. The software also has the ability to re-print
select pages if nessesary.
Dealer selects wrong serial number when adding firearm to form. 863 Aimi eBook Pro has a Delete Issue function which 100%
will roll back a transaction allowing the Dealer to
correct serial number and re-enter the
transaction using the same 4473 number.
Dealer enters incorrect serial number when logging in firearm information. 1273 Aimi eBook Pro has an Update Serial function 100%
which will allow the Dealer to update a serial
number that was entered incorrectly.
Total 3084
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Case Study 2010
Time and Accuracy Study (2006-2009)
Datasheet D
Datasheet E
Datasheet F
The following section covers the results of a time and accuracy study with the use of manual
methods and compliancy methods.
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Case Study 2010
Datasheet D
Time Savings - Scenario 1 – Standard Handgun Sale Comparison
- Scenario 1 is bases on a standard handgun sale. 1 Handgun - NICS Check
- Does not include Acquisition & Disposition
- Does not include POS Checkout time
* No online Aimiebook account setup
* Time averaged based on customer typing skills
Firearm Transaction - Manual Firearm Transaction – Kiosk & AIMI eBook Pro
Scenario 1 - 1 Hand Gun w NICS Time * No Online Account Set up Time
Clerk greets customer N/A Clerk greets customer and directs to Kiosk N/A
Clerk presents customer with 4473 Form N/A Customer enters information into Kiosk 1:15 - 4:21**
Customer hand forms 4473 handwriting 11 Min Clerk pulls up stored customer Kiosk information 3 Sec
Clerk watches customer fill out forms N/A Clerk verifies ID matched form information 15 Sec
Clerk reads forms 3 Min Clerk prints page 1&2 of 4473 form 20 Sec
Clerk verifies ID asks customer to sign and date 1 Min Customer signs & dates form 10 Sec
Manually adds id information to form 4 Min Clerk checks box for firearm type 2 Sec
Clerk adds firearm type on form N/A Clerk completes background check – NICS 1:38 Min
Clerk completes background check – NICS 6 Min Clerk pulls firearm to form in AIMI eBook Pro 10 Sec
Clerk writes firearm information on form 5 Min Clerk prints form 20 Sec
Clerk verifies that firearm information is correct N/A Clerk signs form 5 Sec
Clerk signs and dates form N/A Clerk files form 10 Sec
Clerk files form N/A
Total Time 30 Min Total Time 7:44 Min
Time Savings - Scenario 2 – Standard Multi Handgun Sale Comparison

- Scenario 2 is bases on a standard 2 handgun sale. 2 Handgun - NICS Check - Multi Sale Form
Scenario 2 - 2 Hand Guns w NICS Time * No Online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 1:15 - 4:21**
Clerk files form N/A Time completing Multi Sale Form - Aimi eBook Pro 5 Sec
Time completing Multi Sale Form 7 Min
Total Time 37 Min 7:49 Min
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Case Study 2010
Datasheet D
Time Savings - Scenario 3 – Standard Handgun Sale Comparison w State Check

- Scenario 2 is bases on a standard 2 handgun sale. 2 Handgun - State Check - Multi Sale Form
* Developing API's for State Checks
Scenario 3 - 1 Hand Gun w State Check Time * No Online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 1:15-4:21***
Clerk adds firearm type on form N/A Clerk completes background check – State 6 Min*
Clerk completes background check – State 6 Min Clerk pulls firearm to form in AIMI eBook Pro 10 Sec
Time Savings - Scenario 4 – Standard Multi Handgun Sale Comparison w State Check
- Scenario 2 is bases on a standard multi handgun sale 2 Handguns - State Check - Multi Sale Form
Scenario 4 - 2 Hand Guns w State Check Time * No Online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 1:15-4:21***
Clerk files form N/A Time spent completing Multi Sale Form - Aimi eBook Pro 5 Sec
Time spent completing Multi Sale Form 7 Min
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Case Study 2010
Datasheet D
Total Time Savings – No Aimiebook.net customer account set up
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Case Study 2010
Datasheet E
- Stored Customer Aimiebook.net account - NICS Check
- Scenario 1 is bases on a standard handgun sale. 1 Handgun - NICS Check
* Customer has Aimiebook account
Scenario 1 - 1 Hand Gun w NICS Time * With online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 2:23 Min**
Time Savings - Scenario 2 – Standard Multi Handgun Sale Comparison

-Stored Customer Aimiebook.net account - NICS Check
- Scenario 2 is bases on a standard 2 handgun sale. NICS state - Multi Sale Form
Scenario 2 - 2 Hand Guns w NICS Time * With online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 2:23 Min**
Clerk files form N/A Time spent completing Multi Sale Form-Aimi eBook Pro 5 Sec
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Case Study 2010
Datasheet E
-Stored Customer Aimiebook.net account - State Check
- Scenario 1 is bases on a standard handgun sale. 1 Handgun - State Check
Scenario 3 - 1 Hand Guns w State Check Time * With online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 2:23 Min***
Time Savings - Scenario 4 – Multi Handgun Sale Comparison

-Stored Customer Aimiebook.net account - State Check
- Scenario 1 is bases on a standard handgun sale. 1 Handgun - State Check
Scenario 4 - 2 Hand Guns w State Check Time * With online Account Set up Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk 2:23 Min***
15
Datasheet E Case Study 2010
Total Time Savings – Customer has Aimiebook.net account
16
Case Study 2010
Datasheet F
Time Savings - Scenario 1 – Standard Handgun Sale Comparison - Using eSign
- Scenario 1 is bases on a standard handgun sale. 1 Handgun - State Check - eSign
* Customer uses eSign - Pending Approval
Scenario 1 - 1 Hand Gun w NICS Time * Customer uses eSign - Pending Approval Time
Clerk presents Customer with 4473 Forms N/A Customer enters information into Kiosk N/A
Time Savings - Scenario 2 – Standard Multiple Handgun Sale Comparison - Using eSign
- Scenario 2 is bases on a standard multiple handgun sale - NICS Check - eSign
Scenario 2 - 2 Hand Guns w NICS Time * Customer uses eSign - Pending Approval Time
Clerk presents customer with 4473 Forms N/A Customer enters information into Kiosk N/A
Clerk files form N/A Time spent -multi sale form using Aimi eBook Pro 5 Sec
Time spent completing multi sale form 7 Min
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Case Study 2010
Datasheet F
Time Savings - Scenario 3 – Standard Handgun Sale Comparison - State Check - Using eSign
- Scenario 2 is bases on a standard handgun sale - State Check - eSign
Scenario 3 - 1 Hand Guns w State Check Time * Customer uses eSign - Pending Approval Time
Time Savings - Scenario 4 – Multiple Handgun Sale Comparison - State Check - Using eSign
- Scenario 2 is bases on a standard multiple handgun sale - State Check - eSign
Scenario 4 - 2 handguns - State Check - Multi Sale Form
Time * Customer uses eSign - Pending Approval Time
Time Spent completing Multi Sale Form 7 Min
18
Case Study 2010
Datasheet F
Total Time Savings – Customers using eSign
19
Case Study 2010
In Summary
This study proves FFL dealers with traditional methods were continuing to repeat errors over the
last three years without some type of compliance technology to aid them. The previous
traditional methods of, meetings, seminars and employee training were not effective in the
reductions of common errors. The common belief is that most violations occur from Form 4473,
when, in reality, it only comprises up 39% of violations. 61% of violations were originating from
other daily activities from the FFL. Compliancy software has proven it can reduce and/or
eliminate the additional 61% of violations. The firearms industry must start adopting compliancy
software as a vital tool for the FFL dealer to ensure their continued survival in an industry noted
for its myriad of government regulations and paperwork requirements.
The following recommendations are reported as a result of this study.
• More aggressive compliancy software in the market place.
• Government needs to, without delay, approve eSign to further reduce common
clerical errors.
Copyright 2010 Coloseum Software Corporation. All rights reserved. Coloseum Software Logo, Aimiebook, Aimiebook.net,
Gunharbor, Gunharbor.com all tradema rks of Coloseum Software Corp. and its subsidiaries in the United States and other
countries. This document is for informational purposes only. COLOSEUM SOFTWARE MAKES NO WARRANTIES, EXPRESS OR
IMPLIED, IN THIS DOCUMENT. Other names and brands may be the property of their respective owners. Copying or printing this
document requires direct authorization from Coloseum Software Corp.
20

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Coloseum Software Corporation

Case Study 2010

Coloseum Software Corpora tion FFL Study 2006-2009

The following findings were gathered from a study commenced

Several scenarios provided in *Datasheets D, E

Weekly Hour s Saved using AIMI eBook Pro.

Manual AIMI eBook Pro Time Saved * Percentage of Savings

Note: Coloseum Software’s eKiosk is a pre-application to complete an

Common Errors Completing Written Form 4473

Most Common Complia ncy Errors

Other Common Compliance Errors

6060 eBook Pro

Common Errors using AIMI eBook Pro

• A large percentage can be reduced with DOJ adoption of eSign.

• As with any introduction of technology there is a natural evolution of the

Common Errors using AIMI eBook Pro

Time and Accuracy Study (2006-2009)

Total Time 30 Min Total Time 7:44 Min

Time Savings - Scenario 2 – Standard Multi Handgun Sale Comparison

Time Savings - Scenario 3 – Standard Handgun Sale Comparison w State Check

Total Time Savings – No Aimiebook.net customer account set up

Time Savings - Scenario 2 – Standard Multi Handgun Sale Comparison

Time Savings - Scenario 4 – Multi Handgun Sale Comparison

Total Time Savings – Customer has Aimiebook.net account

Total Time 30 Min Total Time 3:28 Min

Total Time Savings – Customers using eSign

The following recommendations are reported as a result of this study.

• More aggressive compliancy software in the market place.

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