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Federal Supply Service Information Technology Schedule (FSS ITS) - GSA Schedule

Seat Management General Seat Management - Fee-for-Service Basis

Seat Management services may be provided on a Time and Materials basis a fee-for-service basis. Time and Material (T&M) may be appropriate where the customer desires a high degree of control over the application of the day-to-day resources, or where requirements are highly dynamic or expected to remain relatively unstable over a continued period of time. Also, in situations where the customer desires to specify the IT management "tools" to be utilized or how they are applied, a Time and Materials effort may be most appropriate. In those cases, the offering will be constructed utilizing the labor rates in the Master Labor Rate Schedule, with any materials being charged on a cost-plus applicable-burdens basis.

Fee-for-service provisions are most appropriate where the customer has, or is moving to, a more stable environment, and does not desire day-to-day control over applied resources, or where the customer seeks to turn over the day-to-day operations of its IT support functions to the contractor. Under fee-for-service type engagements, the customer typically acquires contractor support based upon a fixed unit price for the level of service desired, much like a commodity type of service.

Fee-for-service type arrangements typically involve the contractor assuming responsibility for all of, or specific functions of, the customer's IT operational support.

DigitalNet will provide seat management services under either type of arrangement (T&M or fee-for-service), based upon customer needs and requirements.

Fee-for-service type arrangements are typically longer-term engagements (typically anticipated to run for 3 to 10 years, but may be structured as a base period with option periods) where contractor investments in technology may be leveraged and economies of scale maximized.

Fee-for-service type engagements also entail a due diligence review, where the contractor assesses the current environment and develops a plan for migrating the existing operations to a common operating and support environment over a mutually agreed upon period of time. Upon review of the findings of the due diligence review, the contractors' approach and pricing may be finalized with the customer based upon customer requirements, existing architecture, and desired service levels. Following due diligence, a transition period is negotiated, including schedule, events, and prices, providing for deliberately and precisely migrating the customer to the desired, steady-state support model.

The conduct of due diligence and transition may be on either a T&M or fixed price basis, based upon mutual agreement. Steady-state operations on a fee-for-service contract may be based upon a combination of price per seat, price per incident, price per "object", or any combination thereof, in accordance with customer attributes and the desired service delivery model. Typically, all "project" type work, which is non-routine effort outside of the day-to-day operational activity, will be separately negotiated on a case-by-case basis.

Due diligence and transition typically must be performed prior to engaging in a fee-for-service type arrangement. In order to accurately "scope" the size and magnitude of the desired effort, DigitalNet will initially apply the analysis criteria set forth in its Seat Management Operations Manual. This allows the customer and DigitalNet to fully assess the attributes of the existing environment and customize a solution specific to the customer. From this information, both due diligence and transition plans may be prepared. This information will be reviewed with the customer for acknowledgement and concurrence.

Since each customer is unique, or may have unique attributes or circumstances to account for, the baseline service levels and attendant prices set forth in this catalog my be subject to adjustment either up or down as a matter of equity between the customer and DigitalNet. This activity is the standard customization necessary upon completion of the analysis set forth in the Seat Management Operations Manual. The prices herein have been established based upon the provision of certain "common" services to commercial customers under the criteria noted-in general.

There are four (4) types of offerings under fee-for-service provisions. The offerings are:


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