Logistics Management System Solutions

1. Logistics Management System Solutions Logistics Management System Solutions Working Group Survey Results February 2005

2. Overview of Survey Results • The observations and findings in this report were developed from the Logistics Management Solutions survey conducted in December 2004. • Twenty-six government staff from seventeen agencies responded to the survey. • While a higher response rate was desired, the survey responses indicated key trends in government personal property

3. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound

4. A high percentage of asset management systems are relatively old Question # 11 • Observations: • 44% of the systems came on-line before 1995.

5. Current asset management systems are not widely integrated with key proximal systems Question # 12 Question # 13 Question # 14 • Observations: • Roughly 70% of asset management systems are not integrated with financial or procurement systems. • Almost 90% of asset management systems are not integrated with systems that manage specific commodities.

6. Most asset management information systems are managed by property management/logistics organizations Question # 52 Information Technology Property Management Finance Logistics Other • Observations: • Over two-thirds of asset management are managed by Property Management or Logistics organizations.

7. Most agencies do not use current COTS products and technology Question # 6 Question # 15 • Observations: • Over half the asset management systems are not COTS tools. • Almost two-thirds are not web-based.

8. A majority of respondents are looking to replace their current system, to respond to new agency directives and replace outdated technology Question # 20 Question # 21 • Observations: • Almost 60% of respondents are looking to replace their current system. • Roughly one-third of respondents cite new agency directive and outdated technology as the reasons for this position.

9. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies

10. Many respondents were not familiar enough with key government requirements for asset management systems to assert whether their systems were in compliance Question # 18 Question # 22 • Observations: • Over half the respondents were not sure if their asset management system satisfied JFMIP requirements or stated that their asset management system was not compliant. • Only half responded affirmatively that their asset management system satisfied Section 508 requirements.

11. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies

12. Most agencies have a formal program to manage information technology assets Question # 26 Question # 25 Question # 27 • Observations: • Over two-thirds have a formal IT asset management program. • A majority are managed by the CIO. • Nearly all are governed by instruction/directives. • Results for software assets were similar to overall IT assets.

13. Most agencies have software to support the IT asset management program and the majority tracks critical asset data Question # 28 Question # 29 • Observation: • Over 70% of the respondents stated that their IT asset management program have software to support the program. • Nearly 70% track critical asset types such as asset identification, costs, procurement date, and vendor.

14. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies

15. The original acquisition and annual operation and maintenance costs for the asset management systems are modest, likely reflective of system age and technology Question # 41 Question # 42 • Observation: • A third of existing asset management systems cost less than $100K to acquire; another third cost more than $5M. • A majority of agencies spend less than $100K per year on operating and maintaining their asset management system.

16. In general, indirect costs associated with asset management are not calculated, while system costs are allocated in a number of ways Question # 65 Question # 43 • Observation: • Nearly half the respondents do not calculate indirect costs associated with asset management. • Roughly half of the respondents allocate costs per user, seat, or number of transaction.

17. While most agencies do not quantify cost savings associated with improved asset management, more are planning to in the future, showing the return on investment for better asset management processes, organization, and systems Question # 64 • Observation: • More agencies plan in the future to capture the benefits of reducing obsolete or excess assets. • Almost 90% of respondents intend to capture some kind of benefit.

18. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies

19. Respondents consider asset data and systems to be secure Question # 45 Question # 46 Question # 48 • Observation: • All respondents store asset data on a secured system. • 80% assess the current asset management system as secure or very secure. • Nearly all respondents have adequate controls for user access and separation of duties.

20. Most systems do not use Public Key Infrastructure (PKI) Digital signature capability Question # 49 • Observation: • 92% of asset management systems do not use PKI.

21. While most respondents asserted that their asset management provided for continuity of operations (COOP), most do not identify “mission critical” assets Question # 50 Question # 51 • Observation: • Over 80% of asset management systems provide for COOP. • Nearly 30% do not identify “mission critical” assets.

22. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies

23. Most agencies are planning to use innovative asset management practices and technology in the future Question # 60 Question # 61 • Observation: • Currently, only 16% of respondents use UID. Nearly half plan to use it in the future or require more information. • Similarly, only 13% use RFID; the percentage is expected to grow to over 35% with 16% wanting more information.

24. While a majority of asset management system automatically provide key reporting capabilities, most do not auto-generate reports to GSA Question # 38 Question # 40 Question # 54 • Observation: • Over 60% of asset management systems allows for ready query of required data. • Less than a quarter of respondents can automatically generate reports to GSA.

25. Over half the respondents perform an annual comprehensive physical inventory on capital assets; less than half the inventory data are uploaded automatically to the asset management system Question # 62 Question # 63 All Classes Entire Agency Some Offices Location Only Some Outside the Agency Not Shared Manual Automatic • Observation: • Almost 52% of the respondents perform an annual physical inventory. • More than half plan to upload data automatically in the future.

26. Most assets can be tracked by functional group/class and most agencies have a method for assigning standard names Question # 55 Question # 59 • Observation: • Almost 75% can track all assets by functional group or classes. • Almost 65% have a method for assigning standard names.

27. Most asset management systems do not have a “Discovery/Tracking” tool Question # 16

28. Major Themes We identified seven high-level themes that were supported by findings and conclusion from the data. • Most agencies perceive the need to replace outdated asset management systems • Non-compliance (e.g., with JFMIP, Section 508) is a significant issue • Generally, management of information technology assets is sound • The cost of current systems is modest (before replacement), but benefits are not tracked to justify costs • Agencies perceive sufficient security in their asset management systems • System functionality varied; with new technology and practices (e.g., RFID) not widely employed • Ownership and usage of asset data varied widely among the agencies

29. Most agencies track government-furnished contractor-operated property Question # 58 • Observation: • Nearly 60% of agencies track government-furnished contractor operated property.

30. The majority of respondents are not using asset management data in the key processes of acquisition, budgeting, disposition, or maintenance Question # 67 • Observation: • Nearly 40% of the agencies stated that the acquisition and disposition processes make use of the asset utilization data for planning.

31. Additional Data

32. Question # 7

33. Question # 8

34. Question # 9

35. Question # 23

36. Question # 24

37. Question # 36

38. Question # 37

39. Question # 30

40. Question # 31

41. Question # 32

42. Question # 33

43. Question # 34

44. Question # 35

45. Question # 47

46. Question # 56

47. Glossary of Terms • Commodities- Different Items either stored or offered through a supply system. • COOP- Continuity of Operations Plan permitting an organization to function in the event of an emergency. • FSC Class- Federal Supply Classification used to group similar items into classes. • NSN- National Stock Number is an identified applied to each item of supply. • Hybrid- A system that is composed of two or more different types of components or software performing essentially the same function. • JFMIP SR 004 and 03 2- can be found at Joint Financial Management Improvement Program http://www.JFMIP.gov • Public Key Infrastructure (PKI) Federal Public Key Infrastructure • Rehabilitation Act (Section 508 Compliant) Department of Justice Section 508 Homepage • SF 120 (Report of Excess Property) • SF 122 (Transfer Order Excess Personal Property) • SF 123 (Transfer Order Surplus Personal Property) • SF 126 (Report of Personal Property for Sale)