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and conditions pre-negotiated with a variety of sources forboth products and services.”ESI Expands to Include Hardware and ServicesESI agreements extended to include technology servicesand hardware in 2002 at the request of the Business InitiativeCouncil. In a collaborative effort with DoD Enterprise ResourcePlanning (ERP) programs and the Office of the Secretary ofDefense, the first blanket purchase agreements for informationtechnology services were awarded for systems integration projectsusing commercial software packages.“ESI did such a great job negotiating commercial softwarelicenses that DoD leadership asked ESI to secure relationshipswith hardware vendors and IT service providers who implementcommercial software,” Bolton said.“This coincided with the business transformation effort byDoD ERP programs spending billions of dollars to modernizeDoD back-office systems. Establishing relationships with ITservice providers made a lot of sense because the cost of licensingcommercial software is just a fraction of the cost to get thesoftware up and running throughout the enterprise,” Boltonadded.The ESI systems integration BPAs secured more than justlabor hour discounts from service providers. The BPAs incorporatedcommercial best practices by capturing a firm’s implementationmethodology and enabling fixed-price methodologiesfor each phase and deliverable that led to results-basedpricing, not just time-based pricing.“Having access to the systems integrators’ methodology andpricing framework for a software implementation project madeus much wiser buyers when it came to choosing and negotiatingwith an implementation partner,” Cromley said.ESI Paves the Way for Federal-wide Software LicensingOne of the most significant changes for ESI was its expansionto support the federal SmartBUY initiative. When the Office ofManagement and Budget (OMB) decided to create a similar initiativefor the rest of the federal government through GSA in thefall of 2003, ESI participated in GSA’s SmartBUY launch team toshare ESI’s lessons learned and best practices.“GSA launched the SmartBUY program to leverage the softwarebuying power of the entire federal government,” said TomKireilis, acting deputy director of the Office of Infrastructure Optimization,in GSA's Federal Acquisition Service. “We knew thatESI achieved similar objectives for DoD and realized that the federalgovernment could benefit from many of the disciplines andpractices that ESI already had in place.”Since ESI and SmartBUY joined forces to collaborate, they haveestablished 22 ESI/SmartBUY co-branded agreements that allowall federal agencies to procure software, leveraging the collectivenegotiating power of the federal government.“OMB further raised the bar on the co-branded SmartBUY/ESI agreements when they decided in 2007 to include state andlocal government in the solicitations for products to protect dataat rest,” said Dr. Margaret Myers, former principal director for theDoD Deputy CIO. “The DoD-GSA team successfully overcamemany challenges to make this happen and awarded the firsteveragreements that include state and local governments.”In September 2003, the director of Procurement and Ac-“ESI changed how the entire department acquires andlicenses commercial software. Without ESI, we wouldnever have leveraged our buying power, understood ourdepartment-wide requirements, significantly reducedthe labor required to manage software licenses, or haveachieved the dramatic reduction in costs of severalbillion dollars. I applaud the ESI team for its success andcontributions over the past 10 years.”DoD Deputy CIO Dave Wennergrenquisition Policy for the DoD and the DoD CIO jointly signed aSmartBUY policy to designate the DoD ESI as the implementationagent for SmartBUY throughout the DoD. This policy wasupdated in December 2005.ESI Achieves Central Role for IT Asset ManagementFrom the inception of ESI in 1998, the ability to manage technologyassets across the entire DoD has been a key objective.Just as investors must know and manage financial assets to besuccessful, the DoD must have an accurate inventory of its IT assetsto make better, faster and smarter strategic sourcing decisions— and to make available ESAs that support the warfighterand ultimately help to “optimize the enterprise.”The ITAM program managed by ESI will use a net-centric serviceoriented architecture solution that allows DoD asset data tobe pulled into a single repository that will include software andhardware (desktops, laptops, servers and routers).Industry analysts predict that organizations that systematicallymanage the life cycle of their IT assets will reduce the costper asset by as much as 30 percent in the first year and between56 CHIPS www.chips.navy.mil Dedicated to Sharing Information - Technology - Experience
5 and 10 percent annually during the next five years. To makethis happen, ESI provides policy and guidance and is developinga net-centric proof of concept to aggregate and report assetdata.ESI and the DoD components are working together throughan ITAM integrated product team to develop a net-centric ITAMframework that will be the foundation for making components’IT asset data visible and discoverable using Web services andXML standards.This will allow ESI to report on IT assets at the DoD and federalgovernment level to make better decisions for current andfuture expenditures, as well as support the goal of loweringDoD’s total cost of ownership on IT investments.The Look AheadThe first 10 years of ESI have proven to be very successful, andthe next 10 years should yield even greater results. To do so, theESI will need to enhance and maintain the right skill sets andknowledge given anticipated technology changes and evolvinglicensing and pricing models, such as software-as-a-service,software-on-demand and software capability delivered undera service oriented architecture (SOA).“DoD ESI is essential to delivering effective andefficient information technology capability acrossall mission areas at least cost. ESI must continueto flourish as we transform and rely on commercialsoftware more than ever to run the business of theDoD.”DON CIO Rob CareyAlready, the ESI is coordinating the development of netcentricsoftware licenses to allow DoD components to share informationwith any potential authorized user, regardless of theuser’s organization. The DoD and the Office of the Director ofNational Intelligence (ODNI) adopted this approach to managesoftware licenses that give authorized IT users the license rightsfor immediate, unobstructed access to information. The aim is toeliminate information-sharing roadblocks, such as institutionalboundaries or license limitations.“This effort leverages the collective bargaining power of DoDand the intelligence community to ensure that our nation realizesthe significant operational benefits of information sharingat a reasonable cost,” Wennergren said.The push is for a paradigm shift from the traditional model ofpurchasing agreements.”A major challenge for ESI is to transition the DoD from enterpriseagreements to enterprise licenses,” Myers explained. “Mostof the ESI agreements today work like corporate discounts: ESInegotiates the ESA and any DoD purchaser can request the DoDprice. Each vendor has multiple DoD customers, so the vendors’overhead costs are included in the price the customers pay."If ESI could negotiate a single agreement with a single DoDpoint of contact, the vendors’ overhead costs would be significantlyreduced and DoD would avoid additional cost. ESI successfullynegotiated an Oracle enterprise license for the Navy, but ittook more than a year to transition all of the legacy contracts toone common license. The potential impact of doing this for all ofDoD is huge, but extremely challenging,” Myers concluded.To stay ahead of these challenges, ESI will be undertaking a“If ESI could negotiate a single agreement with asingle DoD point of contact, the vendors’ overheadcosts would be significantly reduced and DoD wouldavoid additional cost. ESI successfully negotiatedan Oracle enterprise license for the Navy, but ittook more than a year to transition all of the legacycontracts to one common license. The potentialimpact of doing this for all of DoD is huge, butextremely challenging,”Dr. Margaret Myersformer principal director for the DoD Deputy CIOLean Six Sigma effort aimed at improving DoD’s software licensingprocesses, according to Groce. “This effort should result instreamlined and improved enterprise software licensing practicesused across the entire DoD,” he said.DON leadership support for ESI remains strong. “DoD ESI is essentialto delivering effective and efficient information technologycapability across all mission areas at least cost,” said DON CIORob Carey. “ESI must continue to flourish as we transform andrely on commercial software more than ever to run the businessof the DoD.”ESI’s success can be attributed to the visionary leadership ofthe CIOs within DoD, its focused and dedicated working group,hardworking and smart SPMs, and the ability to make goodthings happen despite no central funding source. Congratulationsto the entire ESI team and best wishes for continued successfor many years to come!For more information, go to the ESI Web site at www.esi.milor turn to the CHIPS Under the Contracts section beginningon page 69.Chris Panaro provides contract support to the DoD ESI.CHIPS October – December 2008 57
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CHIPS October - December 2008Volume
Page 4 and 5:
Editor’s NotebookThis issue we fe
Page 6 and 7: Talking with Rear Admiral Wendi B.
Page 8 and 9: in less of a production role and mo
Page 10 and 11: "The Navy has conducted irregular w
Page 12 and 13: and Preventive Medicine; and Joint
Page 14 and 15: We are also working on patient trac
Page 16 and 17: Empowering the Information Systems
Page 18 and 19: "The good thing about the ENMS syst
Page 20 and 21: “We Will Never Forget”Pentagon
Page 22 and 23: SSC Atlantic Commissioned in Charle
Page 24 and 25: SSC Pacific’s Josh CaplanReceives
Page 26 and 27: Welcome to SSC Atlantic’s New Orl
Page 28 and 29: SSC Atlantic sites partner to provi
Page 30 and 31: Presenting SSC Pacific: A new name
Page 32 and 33: constraints associated with smaller
Page 34 and 35: End-to-End Systems Engineering LabS
Page 36 and 37: SSC Norfolk Workforce Excellence Co
Page 38 and 39: DON DIACAP TransitionTransitioning
Page 40 and 41: CAST requirements include the abili
Page 42 and 43: Success Stories from Naval Surface
Page 44 and 45: SWE Takes Action in Supportof Surfa
Page 46 and 47: of ownership of the process stalled
Page 48 and 49: Data as a ServiceThe new paradigm f
Page 50 and 51: encouraging the reuse of informatio
Page 52 and 53: Operationalizing Military Support t
Page 54 and 55: DoD ESI Celebrates its 10th Anniver
Page 58 and 59: Navy Ship-to-Shore via Wireless Con
Page 60 and 61: Navy Warfare Training SystemBy U.S.
Page 62 and 63: endeavor and worth the coordination
Page 64 and 65: Tackling one of the most critical a
Page 66 and 67: 5. Which of the following is the mo
Page 68 and 69: you are searching while the rootkit
Page 70 and 71: MercuryMercury Software - Provides
Page 72 and 73: Quest ProductsQuest Products - Prov
Page 74 and 75: Office SystemsAdobeAdobe Products -
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