Breakout Session # Michael Przepiora, Director Solutions Delivery

1. TSA Office of Information Technology~ experiences in ~Performance-Based Contracting Breakout Session # Michael Przepiora, Director Solutions Delivery Transportation Security Administration Thomas Conaway, Managing Partner Homeland Security Unisys Corporation Date: July 18, 2003 NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

2. Overview • Purpose • The Genesis of Information Technology Managed Services (ITMS) • Acquisition Strategy / Performance Based Approach • The Unisys Approach to ITMS • Lessons Learned NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

3. Purpose • To provide a foundational view of the variables and decision making process that led to the TSA ITMS performance-based experience NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

4. The ITMS Partnership TSA CO TSA PM / COTR Communication Success Cooperation Collaboration Team Unisys PM NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

5. The Genesis of ITMS • Visionary Management and Staff • Performance-Based / Managed Services Champion • CIO and ITMS CO collaborated • A++ TSA ITMS staff • CIO Business Model • Partner focused • Managed services procurement strategy • Highest level of services consistent with cost effectiveness • Improved performance, reliability, security and reduced cost NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

6. The Genesis of ITMS • Resource Driven • Scope • Mandated timeline • Resource constraints • Low initial investment • Schedule / Cost / People • Complex integration • TSA objectives NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

7. Acquisition Strategy /Performance Based Approach • Mandates • ATSA PL 107-71 • 11-19-02 • 12-31-02 • SOO vs. SOW (Statement of Objective vs. Statement of Work) • Lead vs. Follow • Outcomes vs. Compliance • Solutions vs. Direction • Due diligence period (Commercial Best Practice) • Knowledge transfer period • Extensive “Give & Take” orals NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

8. Acquisition Strategy /Performance Based Approach • Market Research • Used to obtain acquisition approval • Gather Best Practices information • Performance Metrics • Contractor proposed – tied to TSA and CIO business objectives • Contractor provided CMM level 3 process • Quality Assurance Surveillance Plan • Incentive Program • Contractor proposed approach to sharing risk / improving performance • Mechanism to manage performance NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

9. Acquisition Strategy /Performance Based Approach • Balanced Score Card • Use of four strategic success measures • Customer satisfaction • Performance / Quality (CMM) • Financial • Learning and growth • Ties to CIO strategic objectives NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

10. The Unisys Approach to ITMS • Team for success • Complimentary strengths • Depth of bench • Partner with the client • Aggressive approach • Leverage corporate capabilities • Utility model • Accountability through measurable results • TSA business outcomes (via strategic planning process) • Team technical / schedule / cost performance NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

11. sKPIs The Unisys Approach to ITMS • Accountability through measurable results • Performance measures tied to strategic objectives via a Balanced Scorecard • Strategic Key Performance Indicators (sKPIs) tied to incentives to create Service Level Agreements (SLAs) NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

12. Four Categories of Service Level Agreements • Deployment • Site deployment schedule adherence • WAN and LAN deployment schedule adherence • Availability • Exchange service availability • Server availability • Repair/return to service • Hosted application incident response NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

13. Four Categories of Service Level Agreements • Customer Satisfaction • SPOC responsiveness • SPOC end-user satisfaction • SPOC total first call fix rate • Security • Network intrusion detection incident notification • Security architecture external network vulnerability scanning • Security architecture internal network vulnerability scanning • Virus monitoring and identification • Vulnerability remediation NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

14. The Unisys Approach to ITMS • Monthly Incentive Review Panel (IRP) meeting to review performance metrics and quarterly provide recommendation to Incentive Determining Official (IDO) based on SLA metrics and, if applicable, success criteria: • IDO makes incentive/disincentive decision TSA Meet Objectives TSA Miss Objectives Team Unisys Miss SLAs Team Unisys Meet SLAs NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

15. Successes • Mandates met • Initial technology enablement deployed • Automated TSA • Teamwork – shared responsibility / risk • Mission oriented • Personal sacrifices NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

16. Lessons Learned • Training on Performance Management / Managed Services • Time to do Acquisition • Fully Funded Programs • Contract Management and Oversight NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance

17. Questions NCMA 41st Annual West Coast Educational Conference Risks And Rewards--Achieving the Proper Balance