Sea Enterprise Corporate Business Council Agenda Topic Overview

1. Sea Enterprise Corporate Business CouncilAgenda Topic Overview • Topic: Enterprise Services (Cell Phone Contracts) • Type Brief: Information • Objectives: • Review CNI and NMCI cell phone initiatives • Review acquisition strategy • Review contract terms/status • Ordering and pricing information • How fast can we expect to implement • Required guidance to the enterprise • Required Decisions: • None – Provided for information

2. CNI and NMCI Cell Phone Initiatives • Two separate initiatives • Approaches reflect a key difference in assumptions regarding unit price reductions for total requirements in excess of 15,000 units* • NMCI approach: Reductions unlikely, so maintain competition among 6 national providers • CNI/FISC approach: Significant price reductions available, so consolidate requirements • DON-CIO chaired meeting of 31 August 04 • DASN (Acq) asked to lead assessment • Goal: To ID which approach provides better solution for Navy in time to support CNI’s requirements *Estimated Total Navy Requirement: 90,000 – 100,000

3. CNI and NMCI Cell Phone InitiativesAssessment Team • NMCI • Capt Chris Christopher • Mike Busansky • OGC • Richard Prevost • Penny Rabinkoff • OPNAV N6F • Tim Traverso • PEO-IT • Don Trayer • DASN (Acq) • Tom Essig • Jim Woodford • CDR Bob Cox • KT Petersen • DON-CIO: • John Lussier • NAVSUP/CNI • Tom Trump (NAVSUP) • Tammy Sanchez (FISC SD) • Karen Rainville (FISC SD) • CAPT Walt Jacunski (FISC SD) • Tammy Jones (NAVICP)

4. CNI and NMCI Cell Phone InitiativesKey Findings • Significant tiered pricing discounts did not materialize • CNI rates lower than NMCI rates, however • Not an “apples to apples” comparison • Not able to calculate total cost of ownership for CNI approach • NMCI offer includes benefits not in CNI offer • Insufficient data to determine which provides better value • Insufficient time to obtain data necessary to complete analysis and support CNI requirements

5. CNI and NMCI Cell Phone InitiativesKey Findings (cont’d) • Both Approaches Provide: • Better value than commercial, GSA, or current fragmented pricing • Actions recommended by GAO telecommunications report • Accurate spend & usage data • A method of aggregating the number of portable devices being purchased and used • Identification of who is using these devices and how devices are being used

6. Acquisition Strategy • “Fly Off” • FISC authorized to award contracts • Voice and other services that do not require NMCI interface (CONUS) • Requirements contract (mandatory use) for CNI • IDIQ contract (optional use) for others • All other services/supplies: IDIQ for enterprise • 1 basic year plus 4 option years • NMCI authorized to modify contract to include new wireless voice/data provisions/pricing • Voice and other services that do not require NMCI interface • IDIQ (optional use) for enterprise • As current contracts expire, all Navy personnel must use either CNI or NMCI contract for cell phone service

7. Acquisition StrategyRemaining Tasks • Acquisition policy document being prepared by PEO-IT • Establishing • Exception/waiver process (PEO/IT) • Mechanism established/ID’d to compare contract rates to current commercial/GSA (FISC/NMCI) • Complete analysis of: • Benefits of NMCI approach • Total cost of ownership (CNI and NMCI) • Experience under CNI and NMCI approaches

8. Acquisition StrategyUpon Completion of Analysis • If BCA supports enterprise use of NMCI • Make NMCI mandatory for all except CNI • Make NMCI mandatory for CNI upon expiration of base period of CNI contract • Do not exercise CNI options • If BCA supports enterprise use of CNI • Mandate CNI approach for all • NMCI approach no longer available for use • Take appropriate action if BCA supports approach different than either of these

9. FISCSD Sponsored Contract (CNI)Additional Information • Common Features Included in Plans • Caller ID; Voice Mail; (Add-on Charge in Some Nextel Plans) • Call Forwarding; 3-Way Calling; Call Waiting; Text Messaging; Directory Assistance • Flexible Reporting – With Capability Starting at Navy Level… • Ordering Office Level • Delivery Order Level • Program/Department Level • User Level • Billing – Hard Copy or Electronic

10. How fast can we expect to implement? • NMCI proposal expected this week • FISC SD contract in place now • Available now for all FISC customers • Posted to NAVSUP collaboration site for NAVSUP access • CNI expects to be completely transitioned to the FISC SD contract by 21 Jan 05 • Should be available for others by end of month • FISC SD and PEO-IT developing ordering guide with FAQs • Working to place on DoD e-mall (early CY05)

11. Required Guidance to Enterprise • PEO-IT drafting acquisition policy document • Will implement mandatory use policy • Guidance document planned for PEO-IT website • DON-CIO drafting companion policy document

12. Sea Enterprise Corporate Business CouncilAgenda Topic Overview • Topic: Enterprise Services (Cell Phone Contracts) • Type Brief: Information • Objectives: • Review CNI and NMCI cell phone initiatives • Review acquisition strategy • Review contract terms/status • Ordering and pricing information • How fast can we expect to implement • Required guidance to the enterprise • Required Decisions: • None – Provided for information