Savings and Efficiencies Through Enterprise Mobility
Published, March 13, 2014
The Department of the Navy's enterprise wireless contract, established by Naval Supply Systems Command Fleet Logistics Center San Diego (FLCSD) for all DON wireless use in the CONUS, went into effect in May 2011. The contract includes provisions to lower costs; it includes free devices, web portals provided by the wireless carriers that account managers can use to analyze and "fine tune" services, and a limited number of service plans that were selected based upon historical DON mobile device usage.
In March 2012, the DON CIO published policy directing the Services to focus on reduction of inefficient habits such as maintaining cell phones for emergency distribution. The policy also established specific efficiency standards and mandated the use of the web portals to manage and analyze services. DON CIO monitors the mobility cost reduction efforts monthly through review and analysis of key spending metrics.
To date, the DON's monthly wireless expense has decreased by almost $3 million, or about 33 percent per device. This improved efficiency has enabled the DON to sharply reduce its wireless costs without having to arbitrarily mandate a reduction in the number of devices.
With the authority of the Office of the Secretary of Defense, the DON Strategic Sourcing Program Management Office (SSPMO) and FLCSD have taken the lead working with the Army and the Air Force to determine if greater savings may be achieved by establishing a joint DON/Army/Air Force wireless contract. Also, FLCSD has begun the process to re-compete the DON contract in an effort to obtain better pricing and additional advantages, such as a used equipment buy-back program. Continuous review of wireless spending habits has led the DON CIO to believe that even further savings can be attained without affecting services.
A primary focus of current research is the possible use of a telecom expense management (TEM) contractor for rate optimization services. The TEM would analyze the usage pattern of every device on the DON contract and recommend changes to the service plan to achieve even greater efficiency. TEM services of this type have returned large savings in industry and for other DoD organizations. SSPMO is researching the cost effectiveness of consolidating wireless requirements at higher organizational levels. Though analysis is ongoing, initial indications are that such consolidations could increase competition among carriers.