Philip McKinney

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Outsourcing/Franchising Government Services -
Pros ConsPacific Emerging Issues Conference

• Philip McKinney
• August 23, 2007

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? 2,200 Judges ? 30,000 Employees6 Billion
Annual Appropriation ? 500 Million Spent on
Contracts ? 6 Billion Annual Appropriation ?
30 Billion Registry Funds ? 94 Independent
Court Districts ? 600 Geographic Locations ?
5000 Financial System Users
Judiciary Background
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Each Judicial district is composed of the
following court units ? District Court ?
Bankruptcy Court ? Probation Office ? Pretrial
Services Office ? Federal Public Defender
Judicial Districts
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Some Guidance and Oversight the Judiciary is not
subject to ? Chief Financial Officers
Legislation ? Inspector General ? Audited
Financial Statements ? Office of Management and
Budget Directives ? Federal Acquisition
Regulations
Differences with Judicial Branch
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The AO provides administrative support services
for all Judiciary activities. In the financial
arena, the AO provides the Judiciary with the
following ? Core Financial Systems ? Fine
Restitution Collection Systems ? Registry Fund
Investment System ? Personnel and Payroll
Systems ? Criminal Justice Act Payment System
Role of the Administrative Office of the United
States Courts
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Current Service Delivery Model
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FAS4T Service Delivery Model
Future Service Delivery Module
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? Significant Cost Savings and Avoidance ? Not
our Core Business? Were Not Particularly Good
at Providing Services ? Technology Changing too
Fast? Government Procurement and Personnel Regs
Why the Judiciary is Outsourcing
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? Hosting Services ? Hardware, Upgrades and
Maintenance? Application, System and 3rd Party
Software ? OS DBMS ? Application 3rd
Party Software ? Any other software (TMS,
Monitoring, HD, etc.)? Configuration
Management
What Outsourcing Services Did We Buy?
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? Security ? Personnel ? Data ?
Physical ? Standards ? ISO 9001 ? SAS 70
? NIST 800-18, 26, 30, 53, and 60 ? NACI
What Outsourcing Services Did We Buy?Continued
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? Backups and Off-site Storage ? Local and
Remote ? Disaster Recovery at Remote Site ?
Full Recovery 48 hrs After Declaration of
Disaster ? Philadelphia ? Tier 3 User Support
What Outsourcing Services Did We Buy?Continued
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? India Oh No!!!!!? Resistance from Internal
Stakeholders ? Control, Accessibility and
Performance ? Trust ? Security ? Loss of
Institutional Knowledge ? No Experience with
Outsourcing
Biggest Challenges We Faced
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? Vendor Understanding of Judiciary Business
? Functions ? Drivers ? User Base and
Culture ? Negotiating Service Levels
Biggest Challenges We Facedcontinued
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? Solicit Partnership and Buy-in w/Stakeholders
? Clearly Document Services to be Outsourced?
Document and Circulate Detailed C/B Analysis?
Stakeholder Review and Input? Document Current
Measurable Service Levels
Approach Used for Outsourcing
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? Attempt to Establish SLAs w/Contractor ?
Conduct Proof of Concept w/Champion Users?
Require Contractor to Meet or Exceed Current
Levels? Negotiate SLAs Based on Proof of
Concept? Review Results w/Stakeholders Agree
to Proceed
Approach Used for for Outsourcingcontinued
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? Availability of the hosted application ?
Production ? Test ? FTP? Performance of the
application ? Production Only ?
Responsiveness of key services ? Database
refresh ? Incident notification ? Incident
escalation
SLAs We Negotiated
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? Availability (SiteScope) ? Performance
(Tuxedo) ? Incident response times (Remedy) ?
Intrusion Detection System (NetSec)
Monitoring Tools
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Availability Measures

• Mon thru Fri 7am until 10pm ET excluding
  Federal holidays.
• Excludes scheduled downtime, authorized
  requests by the AO, outages caused by or
  controlled by third-parties, items not under
  direct control of Contractor, periods during
  which a Force Majeure event applies.

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Performance Measures

• Measure all Tuxedo services (none are excluded)
• Measure across all courts and for all Tuxedo
  services and for all hours when system is
  available
• Measure only within the Data Center (telecomm
  excl)
• Production only

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Responsiveness Measures

• Note P1 is Urgent Priority request P2 is High
  Priority and P3 is Medium Priority
• Mon thru Fri 7am until 10pm ET excluding Federal
  holidays

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? Partnership w/ Stakeholders and Contractor?
Built on Mutual Trust? Measurable Data
Sources? If not Important Dont Measure?
Established Mechanism to Measure
Lessons Learned when Developing SLAs
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? Less is More? Dont Over Complicate? Root
Cause Analysis? Incentives or - Penalties?
Review and Revisit Regularly
Lessons Learned when Developing SLAscontinued