SU Presentation to NYS

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State of South Carolina Information Technology
Management Office
Hardware Maintenance Manager Program
Presented by
Specialty Underwriters LLC
A Subsidiary of SU Group LLC
Link to Dedicated Website http//www.su-group.com
/maintenance_program.asp
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HARDWARE MAINTENANCE MANAGER PROGRAM KEY
OBJECTIVES
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KEY OBJECTIVES
To build a system that bridges the gap between an
Agencys Information Technology Assets and all
activity associated with maintaining that asset.
This will include

• Creation and management of a statewide asset
  database by Specialty Underwriters (SU).
• Evaluation and tracking of vendor service reports
  and corresponding invoicing for equipment
  maintenance repairs.
• Development of a reporting system for Agency use
  that can be used to view all aspects of Agency
  assets (Mfg. Model, Serial No., location,
  purchase date, purchase cost, warranty terms,
  etc.) as well as associated maintenance expenses
  (vendor name, maintenance contract costs, time
  and materials costs, PMs performed, etc.).

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EXPECTED OUTCOMES

• The expected outcomes from our program will be
• A Significant Savings on Equipment Maintenance
  Costs and Agency Administrative Workload
• An Improvement Managing Vendors
• Streamlined Equipment Asset Management
• Enhanced Agency Reporting Process

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MAINTENANCE MANAGER OVERVIEW WHO IS SU GROUP
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COMPANY OVERVIEW

• SU Group is the only organizational team to have
• Ability to review Agencys TOTAL maintenance
  spend and address all Information Technology
  equipment types
• A vast database of over 26 years of equipment
  repair history
• A comprehensive menu of solutions ranging from
  Maintenance Service Agreements (MSA), Asset
  Management Options, and Consulting.
• Proven systems and an experienced staff that
  handles some of the countrys largest and most
  complex cost savings programs.

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CURRENT MAINTENANCE OPTIONS AGENCY
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AGENCYS CURRENT MAINTENANCE OPTIONS

• Maintenance Contracts (Including State Term
  Contracts) These are annual maintenance
  Contracts that your Agency currently has in
  force. These contracts generally contain
  equipment maintenance protection against
  equipment breakdown to include Parts, Labor and
  Travel and scheduled Preventive Maintenance.
• Time Materials This is equipment that your
  Agency does not have a maintenance contract in
  place on and you handle your maintenance on these
  items as it occurs and pay costs for Parts, Labor
  and Travel to repair the equipment.
• Initial Warranty This is equipment that your
  Agency has purchased and it is currently covered
  by a manufactures warranty.
• In-House This is equipment that your Agency
  maintains yourself using trained Agency staff

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NEW MAINTENANCE OPTIONS SU GROUP
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NEW MAINTENANCE PROGRAM METHODS
Depending on your Agencys current operational
requirements, the new program may include a
number of different approaches to maintaining
your equipment

• Hardware Maintenance Manager Program (HMMP) with
  SU
• Asset Management Only Services
• Consulting Services

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HARDWARE MAINTENANCE MANAGER PROGRAM (HMMP)

• Current Maintenance Contracts are consolidated to
  one annual Specialty Underwriters Equipment
  Maintenance Service Agreement (MSA) at a
  guaranteed cost of 20 below current cost and
  includes
• Equipment Repair Tracking Vendor Dispatch
  Services
• Database Population Repair Invoice Processing
• Asset Management Vendor Payment
• As well as
• In-house Repair Reimbursement at 50 per hour
  plus Parts
• Comprehensive On-line Reporting
• Engineering Support
• Single Point of Contact

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• HMMP PROCESS
• HOW A SERVICE CALL WORKS
• TELESERVE
• (24X7 Dispatch)

SERVICE CALL PLACED 800-833-7050
SU CONTACTS VENDOR AND ISSUES PURCHASE ORDER
SERVICE VENDOR REPAIRS EQUIPMENT
VENDOR FORWARDS FIELD SERVICE REPORT INVOICE TO
SU
SU MATCHES FIELD SERVICE REPORT TO INVOICE,
INITIATES AUDIT
SU PAYS INVOICE WITHIN 30 DAYS
YES
NO
AUDIT PASSED
MANAGEMENT REPORTS AVAILABLE ON-LINE
SU CONTACTS VENDOR AND/OR AGENCY FOR RESOLUTION
SU DISPATCH CAN CONFERENCE THE VENDOR INTO THE
SERVICE CALL
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PROFIT SHARE AGREEMENT

• Specialty Underwriters is also please to offer a
  Profit Sharing Plan for State of South Carolina
  Agencies which further enhances the direct cost
  savings benefits of the Equipment Maintenance
  Management Program offered by ITMO.
• Structure The renewal credit incentive will be
  calculated and applied annually, and will be the
  amount equal to 50 (fifty percent) of the
  difference between 65 (sixty percent) of the
  earned annualized MSA fees, less the paid repair
  losses. 50 of such amount in this example would
  be credited to the State of South Carolina upon
  renewal of the contract for each successive year.
• EXAMPLE
• A. Earned MSA Fees 3,000,000
• B. Renewal Credit Threshold (_at_ 65 of
  A) 1,950,000
• C. Incurred and Paid Repairs 1,500,000
• D. Available Renewal Credit Incentive (B-C)
  450,000
• Renewal Credit 225,000
• Incentive _at_ 50 to State Agency

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ASSET MANAGEMENT ONLY SERVICES

• When utilizing our Asset Only Services, SU does
  not Cap Agency Repair Costs, but does provide
  comprehensive services that allow your Agency to
  outsource cumbersome administrative tasks. The
  Annual Pricing Model for these services is as
  follows
• In Combination with any Other Services 0.00
• Database Population and Management (Annual
  Billing) 5.00 per asset
• Physical Inventory of Assets (Billed Per
  Occurrence) 5.00 per asset
• Vendor Dispatch Services (Annual
  Billing) 15.00 per asset
• Full Asset Management (w/repair
  tracking) 25.00 per asset
• All services include
• Comprehensive On-line Reporting
• On-going Inventory Updates
• Engineering Support
• Single Point of Contact
• Database Population is electronic upload of
  existing equipment inventories

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• ASSET MANAGEMENT PROCESS
• HOW A SERVICE CALL WORKS
• TELESERVE
• (24X7 Dispatch)

SERVICE CALL PLACED 800-833-7050
SU CONTACTS VENDOR AND ISSUES PURCHASE ORDER
SERVICE VENDOR REPAIRS EQUIPMENT
VENDOR FORWARDS FIELD SERVICE REPORT INVOICE TO
SU
SU MATCHES FIELD SERVICE REPORT TO INVOICE,
INITIATES AUDIT
SU FORWARDS FIELD SERVICE REPORT INVOICE TO
AGENCY FOR PAYMENT
NO
YES
AUDIT PASSED
MANAGEMENT REPORTS AVAILABLE ON-LINE
SU CONTACTS VENDOR AND/OR AGENCY FOR RESOLUTION
SU DISPATCH CAN CONFERENCE THE VENDOR INTO THE
SERVICE CALL
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CONSULTING SERVICES

• SUs Consulting Services can include any services
  outside of the previously mentioned service
  options. These services will be individually
  tailored for each Agency and a Statement of Work
  will be mutually developed by ITMO, SU and the
  Agency.
• SU will propose Pricing for Consulting services
  and Agency and ITMO will approve prior to
  commencement of work.
• Fee Proposed can be negotiated to be 20 of
  savings realized through consulting services or a
  fee of 125 per hour. The applicable fee
  structure will be developed through negotiations
  between Agency, ITMO and SU.

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ON-LINE REPORTING EQUIPMENT INVENTORY AND
MAINTENANCE ACTIVITY REPORTING FEATURES
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REPORTS MAIN MENU
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MAINTENANCE ACTIVITY REPORTS
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EQUIPMENT INVENTORY REPORTS
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HOW DOES IT WORK SUS THREE (III) PHASE APPROACH
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METHODOLOGY

• PHASE I ANALYSIS
• Review of existing equipment inventories,
  maintenance expense records (POs, Invoices,
  Contract Terms and Conditions), existing
  warranties and time and materials expenses (POs,
  Invoices)
• Identification and selection of SU services
  recommended
• Development of SUs minimum costs and minimum
  service levels
• Development of guaranteed savings report
• Development of agreement to proceed with planning
  and implementation

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METHODOLOGY (continued)

• PHASE II PLANNING
• Individually tailored solutions for each Agency
• Report on SU recommendations, (Why SU recommends
  which services are to be utilized)
• Proposed Approach for Development of
  Implementation Plan
• ? Discuss Impact of proposed solutions on
  repair services
• ? Develop recommendations and strategies for
  vendor management
• ? Establish service level benchmarks
• ? Prioritize based on Agency requirements and
  potential
• for savings

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METHODOLOGY (continued)

• PHASE III IMPLEMENTATION AND MEASUREMENT
• Implementation of New Program Strategies
• ? Manage the database (equipment adds, deletes
  and changes)
• ? Resolve and manage service events, service
  level exceptions,
• and contract issues
• ? Communicate with Agency personnel regularly
  on day-to-day
• operational issues and results
• Process and Methodology for Calculating Savings
• ? Obtain maintenance expenditure data
• ? Work with purchasing to get copies of
  relevant contract and
• maintenance expenditure data

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ON-GOING PROGRAM ADMINISTRATION SU GROUP
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PROGRAM ADMINISTRATION
Administer the new program, monitor results and
support on-going Agency requests

• Provide On-Going Management to Support the New
  Program
• ? On-Site Administrator ? Sales / Marketing
  Personnel
• ? Account Services Coordinator ? Administration
  Manager
• ? Vendor Relationship Manager ? Account Manager
• ? Reimbursement Coordinators ? Dispatch
  Engineers
• Provide On-Going Support to Agencies
• ? Weekly / Monthly Meetings ? Quarterly / Annual
  Reviews
• ? On-Site Orientation / Training ? Website
  Reporting Support
• ? Program Marketing

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REQUIREMENTS FOR PROGRAM SUCCESS YOUR AGENCY
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REQUIREMENTS FOR SUCCESS
Achieving the full impact (savings, efficiencies)
of a cost reduction initiative of this size is
contingent upon the following critical elements

• Access to information (asset inventories and all
  maintenance related documents)
• Full support from ITMO and Senior Agency
  Management
• ? Vendor compliance
• ? Agency staff compliance
• ? Program marketing, education and communication
  to all end users
• Participation in monthly / quarterly / annual
  program reviews
• ? Open lines of communication
• ? Willingness to evaluate and participate in
  future cost reduction
• initiatives, as appropriate

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THANK YOU FOR REVIEWING ITMOS HARDWARE
MAINTENANCEMANAGER PROGRAM