April 15. Inc. Guerra. Thomas. Cureton. Chief Information Officer. Inc. Rehana L. Guerra Kiviat.Managed Services Breakout Session # 1406 Linda Y. Tuesday. Executive Vice President. 2008 3:20pm-4:20pm 2 . Analyst. NASA Goddard Space Flight Center Robert J. Acquisition Solutions.

Cureton & 3:30pm-3:50pm Robert J.Agenda • • • Introduction of Panel Members Overview of Managed Services Panel Discussion Rehana Thomas Rehana Thomas 3:20pm-3:25pm 3:25pm-3:30pm Linda Y. Guerra All presenters and 3:50pm-4:20pm audience • Open Discussion 3 .

“Managed Services: Solution-Based Information Technology Acquisitions.Defining Managed Services • “Managed Services” Generally: Delivery of a function as a service – Examples: facilities maintenance.” May 2006 2 Gartner Research Services. 2008 4 . call center services • IT: A mechanism that enables industry to perform a function in support of customer’s information technology operations1 • IT: Network Managed Services: sourced management and operation of IT infrastructure and applications through a centralized network operation center (NOC) – Typical elements: monitoring change management and configuration software management 2 1 Acquisition Solutions Advisory. transportation. physical and cyber security.

Varying Interpretations of Managed Services Managed Services Narrowly Defined (IT Telecom Voice Remote Support) Ownership – End User Location – End User Management – Vendor Contract Duration – Short Outsourced Ownership – Vendor Location – Vendor Management Vendor Hosted Ownership – End User Location – Vendor Management – Vendor Source: Gartner Research Services. Managed Services Broadly Defined Ownership End User/Vendor Location End User/Vendor Management – Vendor Contract Duration: Long 5 . Inc. Acquisition Solutions.

TELEWORKING Security & Privacy Operations Hardware Deployment & Support Messaging Services Help Desk Services Call Center Services 6 .Categories of Managed Services DISASTER RECOVERY Application Development & Maintenance DATA STORAGE Server Management SYSTEMS & DATA CENTER SUPPORT NETWORK OPERATIONS REMOTE ACCESS.

Advantages of Managed Services • Better use of staff: allows agencies to focus human resources on strategic planning and core mission support Cost savings: choose not to build and support IT and network infrastructure available in the commercial sector. use limited capital to purchase needed service levels and reduce total cost of ownership Ability to use optimal technologies: adjust types and mix of hardware. skilled labor. software. capital investment and technology to support changes in mission needs Rapid response to mission changes: supplier is measured by ability to produce solutions • • • 7 .

Open Discussion Topics Performance Based Acquisition : Major Themes Lessons Learned from Managed Services Acquisitions • • • Identifying the Functional Need Focus on Outcomes (Metrics and Measures) Alignment with Objectives and Mission – The right approach to SLAs and OLAs. Trust) 8 . Pros and Cons • Communications (Visibility. Transparency.

Guerra. NASA Goddard Space Flight Center • Robert J. Guerra Kiviat. Inc. Chief Information Officer. 9 . Cureton.Panel Discussion • Linda Y. Executive Vice President.

Managed Services Are Hard To Define and Even Harder To Do • Range of Definitions Spans Broad Scope – AKO Phase I – Product Lease and T&M Labor – Seat Management – IT Infrastructure Outsourcing Is NOT Leasing • We Can’t Achieve What We Can’t Define – Vendor and Customer Have to Agree On Mission Need – Market Research and Due Diligence are at the Heart of it All • Look to Private Sector Approaches – Outsource The Infrastructure – Shared Goals & Accountability – Measure What We Need Not What We Always Did • Must Base Managed Service On TRUST & Common Goals 10 .

Paul Getty’s – “If it Appreciates Buy It If It Depreciates Lease It” Just Don’t own It • Customer Owns the Mission and Solution – It’s The Customer’s Assets – Receivables – Personnel – IT Supports the Mission .It Is Not THE Mission – Successful Groups Measure What They Need Not Want • There Are Success Stories On Large Scale – Public Sector DoD – Private Sector Managed Services Is a Standard – Large and Small Companies Succeed 11 .Adapt leading practices to the constraints and context of the organization to maximize value • Vendor Owns the Infrastructure – Government History is to BUY the IT – Moore's Law is True – So is J.

Let’s Measure What We Need Not What We Want • Private Sector – – – – – – – Reduced Costs of O&M Improved Efficiency Improved Productivity Improved Morale Reduced Turnover Improved Service Delivery Improved NOP • Public Sector – Business Needs are The Same – Mission Is Different – VHA – HUD – PBS Examples • But Measure – – – – – – Timeliness of Delivery Compliance with Standards Small Business Content ISO/CMM/SEI Certifications CDRL’s On Time Illusory “Evaluated” Price • They Measure These Things 12 .

resolution • 13 . response.Cost improvement and cost control – Availability. market growth) Efficiency -. committed delivery of service to stakeholders.functional alignment with mission. leverages diversity in the marketplace. and delivers outcome/impact within applicable constraints) – Enhancement – process and productivity improvement (claims processed. complies with regulatory mandates.Making SLAs and OLAs Work • Service Level Agreements and Operating Level Agreements should: – – – – – – be developed with contractor be measurable and achievable align with the deal align with the organization’s goals (relevant measures and metrics) have effective incentives and disincentives to drive desired behavior should be consistent with your strategic objectives • Effectiveness -. personnel productivity – Transformation – Business performance improvement (revenue growth.

sas.There Are Successes To Assess and Duplicate • Xerox Corporation – Worldwide Operations and Manufacturing – Multiple Divisions and Mission Goals – Highly Integrated Design. NCDOC See Video http://www. Development and Manufacturing Integration • General Motors – One of World’s Largest Employers – Major Divisions Appealing to Varied Market Segments – Worldwide Acquisition Design Development and Communications Needs • US Navy NCDOCS Program – CERT Style Program – Vendors Own The Technology and Support – Government Owns The Mission – POC Is: Captain Steven Carder Commander.com/apps/webnet/custSuccess1 • 14 .

Looking at some instructive examples . Inc. 15 . . . • Department of Anarchy • Jurassic Park • Easy Bake Oven.

double it. and demonstrate a genuine interest in identifying needs) – Whatever time you think you need. at least! – Partnership begins for understanding requirements – Leverage market knowledge to help shape requirements • Potholes to avoid while conducting due diligence and market research – – – – – – Telling the service provider “how” to do the work Due Diligence is not a marketing opportunity Not focusing on business outcomes Lack of service leadership Service provider traditional level of effort orientation Managing PBC should be a government core competency 16 .Due Diligence and Market Research .Critical Leading Practices • What due diligence and market research should be all about – The courtship starts (Vendors need to listen. ask probing questions.

How Did We Get To Where We Are? Brooks Act Procurement Reform •Functional specs Performance Based •Prescribe our technology •Wire the spec and low price •Define Needed Outcomes •Prove Your ability to deliver results •Speeds and feeds •Government Bears The Total Risk •Move to equitable risk allocation •Industry Bears IT Risk 17 .

The Philosophical Change We Need Brooks Act Strategy Performance Based Acquisition Minimum Tech Compliance Low Price Bid Government SOO Industry SOW & WBS Changing the Culture: Solutions & Objectives Are Hard Technology/ Pricing Is Easy Engineering Change Mgt Reprice for Profit Incentives & Disincentives Pertinent Measures and Metrics 18 .

Defining outcomes in writing is hard work.What We Need To Change Analysis 1. met that need. Define how we measure performance to meet the desired outcome Does the SOO sufficiently describe the desired outcomes? Will the contracting method provide enough competition? Is the contract type commensurate with risk? Think in terms of outcomes! Continually measure relevance of metrics to evolving missions Make sure my definition of success the same as the customers! Continually assess relevance of metrics Maintain open lines of communication open Contract Office Define the desired outcome well enough to structure an enforceable contract.) Manage performance Program Office What result do we want to create? Defining “end state” or desired outcome.) Develop a PWS or SOO 5. 19 .) Decide how to measure and manage performance Execution 6.) Examine private and public sector solutions Planning 4. Conducting market research to see who else has solved that problem.) Select the right contractor 7.) Describe the problem that needs solving 3. What contracting method will we likely use? Which contract type? Use effective QASP procedures to self assess quality as well as contractor quality Base incentives and disincentives on clear relevant metrics that everyone understands Foster clear and consistent Executive and Programmatic communication with the government Manage team or sub-contractor partners and manufacturers on customer goals and metrics Prime Contractor Can we deliver the optimal outcome based on what we do best? Great opportunity to reach informal understanding agreement on feasible outcomes.) Establish an integrated solutions team 2.