Outsourcing Desktop Initiative for NASA Lessons Learned and Critical Success Factors A Thought Leadership Forum: University of Maryland Center for Public

Outsourcing Desktop Initiative for NASA

Lessons Learned and Critical Success Factors

A Thought Leadership Forum: University of Maryland

Center for Public Policy and Private EnterpriseQueenstown, Maryland

Darryl A. SmithDeputy Program Manager

Monday, November 15, 2004

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Why Outsource?

Share/transfer risks.

Increased need for system and product interoperability across the enterprise.

Need to improve corporate focus. Recruitment and retention of skilled personnel. No leverage to introduce world-class capabilities. Lack of insight into true operating costs

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Established Agencywide team that took a corporate perspective

Worked closely with other major Agency initiatives to ensure coordination and appropriate interfaces.

Examined other “Seat Management” endeavors. Conducted Market Research Developed Center Cost Baseline Concept Requested that vendors propose both

heterogeneous and homogeneous solutions. Established an aggressive schedule. Ensured availability to other Agencies through

partnership with GSA Communicated, Communicated, Communicated

NASA Strategy

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Structuring the Contract

Invest heavily in requirements definition A delicate balance of specifics and ambiguities A “Keep it Simple” approach to metrics Make it Performance-Based Incentives for good performance Fixed price Perform due diligence before award Establish a baseline commitment

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The Implementation Challenges Insufficient change management strategy; magnitude of

cultural changes underestimated– Change from cost-plus to fixed price contracting– “Loss of control” by the customers

•Ownership, level-of-effort personal support, “buy what you want, when you want it”

– Strong emotional issue with the customer– Limited and inconsistent business processes to

interface with ODIN No Agencywide policy on ODIN implementation

– Inconsistent scope across the Centers Lack of authority in the ODIN Program Office Inconsistent expectations among Agency, ODIN

Program, ODIN contractors, and customers Contractor performance and service delivery issues at

the Centers

The Implementation Challenges - Continued

Ames Research Center - ARC

Stennis Space Center - SSC

Glenn Research Center - GRC

NASA Headquarters - HQ

Dryden Flight Research Center - DFRC

Goddard Space Flight Center - GSFC

Langley Research Center - LaRC

Johnson Space Center - JSC

Marshall Space Flight Center - MSFC

Kennedy Space Center - KSC

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NASA Chief Information Officer (CIO)(Code V)

NASA/GSFC CIO

NASA CIO Board

Agency ODIN Program

Manager and CO

NASA CFO

CommunityThird Party

Testing (IV&V)

Contractor (Alterion)

ODIN VENDORS:*Lockheed Martin

*OAOSAICCSC

DynCorpNorthrup Gruman

Diginet(*)Denotes Active Delivery

Orders

GSA (GWAC)

NASA Enterprise/

Center DOCOTRs,

TMRs & DOCOs

Tier One Original Equipment Manufacturers (OEMs) e.g., Apple, HP, Dell, Toshiba

ODIN Organizational Structure

LegendCFO – Chief Financial OfficerCIO – Chief Information OfficerCO – Contracting OfficerDOCO – Delivery Order Contracting OfficerDOCOTR – Delivery Order Contracting Officer Technical RepresentativeGSA – General Services AdministrationGWAC – Government-wide Acquisition ContractTMR – Technical Management Representative


5/25/2000

Lockheed Martin OAO*

GSFC DFRC GRC ARC LaRC HQ JSC KSC MSFC SSC

GSFC awarded seven performance based, fixed-price, Indefinite Delivery/Indefinite Quantity (IDIQ) contracts in June 1998

Contracts have a 12-year period of performance. Centers award delivery orders up to 3-year period of

performance Current ODIN contractor and supported centers represented

below:

* Wholly owned subsidiary of Lockheed Martin

Contract Overview

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Lockheed Martin

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Outsourcing Desktop Initiative for NASA Roles and Responsibilities ODIN contractor is responsible for:

Selecting systems, products and services; Establishing staffing levels; Establishing SLAs with non-ODIN contractors; Meeting the requirements for interoperability, functionality,

and maintaining configuration control; Complying with all applicable Agency IT standards; and Asset/Resource Tracking

Government is responsible for: Establishing IT standards; Establishing Center-level Configuration Control boards

(CCB); Approving and funding infrastructure upgrades; Maintaining “Smart Buyer” capability.

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Desktop: General Purpose Scientific and Engineering Hardware Maintenance Network Attached Device

Server Web, Application, Computational, File

Intra-Center Communications Phone, Administrative Radio, Public Address, Local

Video, FAX, Remote Communications, Virtual Team Meeting Seat

For each seat category, functionality and both standard and optional service levels

are defined; catalogue options allow complete flexibility to tailor the seat to

meet the end user’s requirements

ODIN Seat Categories

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Outsourcing Desktop Initiative for NASA What do I get for my monthly seat payment?

Standard services include: Hardware and both application and system software

acquisition, licensing, installation and maintenance Periodic hardware and software technology refreshment,

synchronized with current commercial offerings Shared peripheral services (e.g., file, print, e-mail, etc.) Asset management IT Security Help Desk support, training, system administration and

other services Network access and support, including network

engineering, management, and upgrade planning Local backup and restore Moves, adds and changes

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Help Desk

ODIN vendor is required to provide integrated customer support/help desk for all ODIN-managed services

Service includes: Problem ticket initiation, tracking and resolution Providing customer and service providers with system

status and alerts Monitoring systems to proactively determine, diagnose

and resolve problems Providing access to ODIN service offerings Providing consultation services for all Triage level 1

software packages

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Desktop Support and Refreshment

Desktop Hardware 2 hr. contiguous to 3 working days Return to Service

(RTS) 1.5, 3, 4, or 5 year refresh cycle Tier 1, Third-party certified equipment

Desktop Software 2 hr. contiguous to 3 working days RTS 6 or 12-month system and application software refresh 3 levels of support

Triage Level 1 – Full Support Triage Level 2 – Installation and pass-through Triage Level 3 – ‘Drop/Ship’

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Catalogue of Services and Commercial Components (CSCC)

Designed to augment the seat Additional memory, larger monitor, etc.

Can include stand-alone services Personal Digital Assistant (PDA’s – ie: Palm, Blackberry,

etc..) Additional Moves, Adds and Changes

Generally a one-time charge Service/support for 3 years

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Desktop Technology Refreshment

“Lemon Law” ensures reliable equipment Technology Refresh Plan is based on inventory at

beginning of delivery order Third Party Testing Facility (Alterion)

Alterion performance ratings drive technology refreshment under ODIN

NASA/Alterion Partnership Quarterly commercial market survey/benchmarking

process establishes top performer for desktop seats (NASA funded)

NASA/Alterion web site publishes survey data ODIN vendors work with OEMs to develop offerings Alterion validates vendor-proposed systems

– ODIN Vendor pays cost of validation benchmarking– System offerings are not acceptable until validated by Alterion

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Infrastructure Management

Different from standard seats! Title for all infrastructure (including replacements or

upgrades) remains with the Government. Infrastructure refresh requirements proposed/priced

after due diligence. Management of the necessary LAN communications

infrastructure is expected to be bundled with each service offered.

Infrastructure upgrades approved and funded separately (by the Government).

Infrastructure inventory managed by the ODIN vendor.

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Incentives Transition Bonus

– Up to $100k set aside for successful 180-day transition Performance Retainage Pool (PRP)

– 3% of sum of monthly seat prices

•Available on 1st anniversary, then semi-annually

•Tied to successful implementation of the ODIN Operating Model

•Meets/Fails to Meet/Discretionary Metric Performance Retainage Pool (MPRP)

– 1% of sum of monthly seat prices

– Tied to Level 1 Metrics

– Meets/ Fails to Meet

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Desktop Performance Metrics Level 1

– Service Delivery (98%)• Frequency of action requests being responded to and successfully

completed within the allotted time.– Availability (98%)

• Unscheduled outages and # users affected– Customer Satisfaction (agreed to at DOSP and/or during Delivery

Order Negotiations)• Measured using commercial/broad industry-accepted practices

Level 2– Contractor Specific Metrics

• 1st call resolution, hardware failure rate, switch latency, backbone utilization, etc. (the vendor determines the measurement in an effort to improve their performance)

Level 3– Trend Metrics

• Trend views of Level 1 and Level 2 metrics in 3-month or greater increments. (Measuring the contractor’s service level trends)

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Features SummaryODIN is a flexible contract vehicle that includes:

Automatic technology refreshment requirements, Standards and architecture management mechanisms, Government managed change control procedures, Allowance for government ownership of assets where it’s

determined to be in the Government’s best interest, “Unwinding” provisions to allow transition of contractor

owned assets at termination (to government or another contractor),

Allowances for installation and use of non-outsourcer provided hardware and software, and

Accommodations for unplanned requirements.


Current Status

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Current Status - Continued

NASA– NASA’s 10 sites are operational

– Delivery Order values ~$315 million– ~36,543 “fully supported” seats– ~8,322 network only– ~1056 Admin Radio seats– ~48,699 phones

– 10 sites reviewing strategy for follow-on delivery orders– GSFC awarded their follow-on Delivery Order effective

February 1, 2004– ARC, DFRC, GRC and LaRC awarded their follow-on

Delivery Order effective April 1, 2004– HQ awarded their Delivery Order effective September

1, 2004– JSC, KSC, MSFC, and SSC are currently negotiating

their follow-on Delivery Orders

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ARC DFRC GSFC GRC HQ JSC KSC LaRC MSFC SSC

Seat/Service Type:

Desktop Seats X X X X X X X X X X

Server Seats X X X X n/a X n/a X X X

Phones(*=includes cell

phones) n/a X*

Cell Phones Only X* n/a X n/a X* n/a X

Facsimile n/a X X X X n/a n/a X n/a

Local Video n/a X n/a X n/a n/a n/a X n/a X

Admin Radio n/a X n/a X n/a n/a n/a n/a X

Network n/a

Email Services

Only n/a X n/a X

Email Services

Only X X X

Remote Comm n/a X n/a X n/a X X X X X

Public Address n/a X n/a X n/a n/a n/a n/a n/a n/a

Cable Plant n/a X n/a X n/a n/a n/a X n/a X

VTM X X X X X X X X X X

Printer Seats n/a n/a X n/a X X X n/a X X

ODIN Delivery Order services selected reflect flexibility of interfacing with existing contracts and/or support requirements.

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Current Status - Continued Established a very strong ODIN team

– Partnerships between Contractors, between Centers and between the Centers and Contractors

– Annual face-to-face workshops, functional tiger teams, regularly scheduled telecons and meetings

Traceable and continuous improvements in the Delivery Order (DO) process resulted from successive lessons-learned– e.g., Center-unique DO mods used to overcome Master

Contract ambiguities and to meet new Agency and customer requirements

Now have consistent and documented processes and procedures– Shared best practices, International Standards

Organization (ISO) certifications ODIN’s flexibility further demonstrated through the catalog

– Enhanced Systems Administration– Latest technology monitors– Specialized processors


Performance Against the Objectives

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Performance Against the Objectives - Continued

Focus NASA civil service personnel on core research and development activities

• Reduced the amount of procurement involvement with securing ODIN services

• Greatly reduced the level of civil servants involved with Asset Management

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Performance Against the Objectives - Continued

Promote information technology systems and product interoperability

– Over 36,000 desktops replaced since 1998.

– No additional investment by NASA (acquisition, logistics, integration, data removal, disposal)

Enhance and optimize service delivery– No method of performance measurement was in place prior to

ODIN

– ODIN has implemented monthly and quarterly performance metrics to track vendor performance

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On a scale of 1-5, with 5 being “Excellent,” only responses marked 4 or 5 are counted toward achieving this metric

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Performance Against Objectives - Continued Reduce cost and improve cost management

and cost containment

– ODIN seat costs are better than predicted and comparable to industry

– Prior to ODIN• No established baseline

• Total cost of ownershipunknown

• IT costs hidden in programbudgets

• Investments made on

available funding basis

• Unequal access to technology

– With ODIN• Documented asset

baseline

• Known, visible, reliablecosts

• Predictable and “fixed”costs for future planning

• No more “haves” vs.“have nots” effect

– Before and after cost model is very different

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Seat Cost Comparison

* Data from ODIN Business Case** From State of Texas Study*** University of Texas**** Navy Marine Corp Intranet

Data from ODIN Program Post Implementation Business AssessmentKelly, Anderson & Associates, November 2001

NASA BenchmarkKSC*Gartner Average*Chevron*ODIN Business Case (low)ODIN Business Case (high)Update to Business Case (low)Update to Business Case (high)Gartner (low)**Gartner (high)**GSAHUDVDOTUTMB Baseline***UTNB Contract***NMCI General PurposeNMCI High End Business***ODIN Average

$500

450

400

350

300

250

200

150

100

50

0

MonthlySeatCost

1996 2001

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ODIN Accomplishments Established a very strong ODIN team

– Partnerships between Contractors, between Centers and between the Centers and Contractors

– Annual face-to-face workshops, functional tiger teams, regularly scheduled telecons and meetings

Traceable and continuous improvements in the DO process resulted from successive lessons-learned

– e.g., Center-unique DO mods used to overcome Master Contract ambiguities and to meet new Agency and customer requirements

Now have consistent and documented processes and procedures

– Shared best practices, ISO certifications ODIN’s flexibility further demonstrated through the

catalog – Enhanced Systems Administration– Latest technology monitors– Specialized processors

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Civil Servant refocusingTech refresh

Over 36,000 desktops replaced since 1998. No additional investment by NASA (acquisition, logistics, integration, data removal, disposal)

Interoperability and Security of SystemsInfrastructure support & upgradesCurrent technologyCommon metric and data reportingFlexibilityVendor Relationships!

What’s Working

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What’s Working - Continued Predictable cost baseline for ODIN provided services

(Budget Management) Filling the gaps 508 Compliancy (CAP Support) Seat Prices ODIN has helped the Agency meet Presidential Management

Agenda (PMA) goals


Lessons Learned

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What Needs Work

Asset Management Upgrade/New Product Rollouts Help Desk Attachment R Process Consistency Customer Satisfaction Consistency Catalog

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Successful Management Techniques

Use Common Sense! Involve your outsourcer in strategic planning

(Partnership and Communication) Be Flexible Be Patient Approach each problem with a “Win-Win” attitude Don’t hold back information from your outsourcer Trust, but verify Limit line manager’s ability to circumvent the

contract


Additional Questions?

Please contact

[email protected]

or call

(301) 286 – 5250

http://www.odin.nasa.gov

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Documents

Outsourcing Desktop Initiative for NASA Lessons Learned and Critical Success Factors A Thought Leadership Forum: University of Maryland Center for Public