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Figure 1. The ESI Timeline.Many DoD programs have come to rely on more than 75 pre-negotiated software and service agreements, aswell as an inventory of licenses, all available on the ESI Web site (www.esi.mil).Using ESI Saves Time and MoneyMany DoD programs have come to rely on more than 75pre-negotiated software and service agreements, as well as aninventory of licenses, all available on the ESI Web site (www.esi.mil). The ESAs provide favorable terms and conditions for thedepartment as an enterprise — not just as a one-time buyer.Most ESAs allow licenses to be transferred between users withinthe DoD component, and many also permit transfer of licensesacross the DoD.Almost all ESI agreements include the right to deploy neededsoftware during a period of national emergency for a specifiedperiod of time at no extra cost. The ESA requirement forsoftware publishers to regularly report their sales under the ESIallows DoD to identify the software it licensed through the ESA.“Managing license inventory is the result of ESI’s initial softwareasset management effort,” said Jim Clausen, co-chair ofESI and the IT specialist for ASD (NII). “Over the years, our effortbroadened to all IT assets through our ITAM (IT Asset Management)program, identifying and making available licenses andother IT assets that have been paid for but are not being used.Managing this inventory wisely through IT asset managementhelps satisfy requirements and avoid duplicative, wastefulpurchases.”ESI leverages the DoD’s Working Capital Fund to secureshort-term bridge funding for purchases on a reimbursablebasis. This enables a larger number of participants to take advantageof scheduled purchases, even if funds are not immediatelyavailable to that program. This facilitates more rationalbuying behaviors during the fiscal year and makes scheduledbuying the norm rather than the exception.Richard Cromley, director of the Contracting Services Officefor the Defense Logistics Agency, has used ESI agreementsrepeatedly for both software and systems integration serviceacquisition. “The orders placed against ESI contractual instrumentshave definitely saved DLA dollars through reducedproduct prices and labor rates,” Cromley said.ESI negotiates an initial discount off General Services Administration(GSA) schedule pricing as a starting-point pricelevel. Individual customers and program offices that use anESI vehicle are encouraged to seek further discounts basedon transactions and cumulative volume size, as well as marketconditions and timing.“The use of the ESI contractual vehicles saves time andeffort of contracting personnel and reduces the procurementlead-time to acquire needed products and services,” Cromleysaid. “The major benefit is having both pricing and usage termsCHIPS October – December 2008 55