0 analysis document task 5 cost estimates for telework scalability march 21, 2006

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Analysis Document

Task 5Cost Estimates for Telework Scalability

March 21, 2006

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Table Of Contents

Introduction

Methodology

Overview of Current Telework Solutions

Cost of Enhancing and Expanding Telework

Findings & Conclusions

Appendix

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This report presents the costs of the technical upgrades needed for federal agencies to expand their telework programs

This report on Cost Estimates for Telework Scalability is the fifth in a series of reports that are part of the Telework Technology Cost Study

The overall study has three primary objectives

– Describe the current federal telework technology environment

– Estimate the costs of expanding telework supporting technologies so the infrastructure can support 25% to 50% of the federal workforce teleworking

– Provide recommendations on how best to expand the telework related infrastructure to support more teleworkers

Based on interviews, surveys, and focus groups of federal IT staff and Telework Coordinators this report reviews the current levels of support that federal organizations’ currently provide in their telework programs

This report will identify and describe the costs associated with expanding federal organizations’ telework programs from their current levels

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Information was collected from several sources in sixteen agencies that were chosen to be representative of the entire Federal Government

The Booz Allen team conducted interviews, focus groups, and surveys of Chief Information Officer staff, Telework Program Coordinators, Teleworkers, and Managers of Teleworkers, respectively

Ten Departments participated in the study:– Department of Agriculture Department of Interior

– Department of Commerce Department of Justice

– Department of Education Department of Transportation

– Department of Health and Human Services Department of the Treasury

– Department of Housing and Urban Development Department of Veterans Affairs

Five Independent Agencies and one Departmental Component also participated in the study:– Equal Employment Opportunity Commission National Science Foundation

– General Services Administration Securities And Exchange Commission

– National Aeronautics and Space Administration U. S. Coast Guard (Department of Homeland Security)

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Table Of Contents

Introduction

Methodology




Appendix

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This report identified the costs associated with the key solutions required to expand telework programs

• Reviewed groupings of the 20 organizations into five common scenarios, based on commonalities in their current telework infrastructures

• Estimated per teleworker costs of each of these scenarios

• Reviewed gap analysis of what is required to meet basic / ideal solutions determined from industry standards and best practices

• Estimated per teleworker costs required to bridge gap from each scenario’s current solution to the basic and ideal solutions

• Reviewed findings to develop overall conclusions about federal government’s ability to successfully expand teleworking

Analysis & Results Data Sources

• Administered surveys to teleworkers and managers of teleworkers in 14 out of the 16 agencies participating in the study

• Received valid responses from 6,784 teleworkers and 1,540 managers of teleworkers

• Collected information about telework technology availability, usage, and performance

Surveys of Teleworkers and

Managers of Teleworkers

Focus Groups with Agency Telework

Coordinators

Interviews with Agency CIO Staff

• Conducted focus groups with Telework Program Coordinators and other telework management staff in 15 out of the 16 agencies participating in the study

• Collected information about telework program history and current state, technology issues, policy issues, and plans for expansion

• Conducted interviews with CIOs and other IT staff members in 20 organizations (including headquarters offices and/or components of the 16 agencies participating in the study)

• Collected information about the current status of the telework infrastructure and plans for enhancement

Estimated Costs of Each Scenario

Estimated Costs of Expansion

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Because of the study’s approach and methodology, this report provides a representative picture of the costs associated with expanding telework across the federal government

The multi-method approach to this study was designed to collect information from three data sources, which are complementary and lead to a comprehensive understanding of the issues

– When information is missing from one data source, information from the other data sources is available to compensate

– Many of the CIO interviews provided information about specific components, rather than the overall department

– However, the organization-wide data from surveys and focus groups round out this information and enable the development of broad findings that are representative of the government

The Booz Allen team followed a structured process to estimate the cost of expanding telework programs throughout the federal government

– Reviewed information about current agency infrastructures, derived primarily from interviews, surveys, and focus groups conducted for the study

– Estimated and described the per teleworker costs associated with supporting telework in each scenario

– Estimated the per teleworker costs required to bridge gap from each scenario’s current solution to the basic and ideal solutions

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The methodology evaluated the ability of federal organizations to significantly expand the telework participation of their workforces

In order to assess the ability of an agency to expand teleworking, the current infrastructure was analyzed in three areas; home office, services, and enterprise

Basic and ideal telework solutions were defined to baseline and identify key components / services required at the home office and enterprise to support telework expansion

Agencies were grouped into five different scenarios based on infrastructure and technical capabilities used to currently support teleworking

A gap analysis was performed to identify the missing components and technologies required within each scenario to meet the basic / ideal telework solution requirements

Analysis was performed to determine how agencies can extend their current infrastructures to support expanded telework programs

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The key technologies that support telework fall into three areas: Home Office, Services, and Enterprise

Home Office Services Enterprise

PC / Software Support Data Communications Secure Network Access

Peripheral Support Voice Communications Application / Administrative Access

Network Interface Help Desk Support Collaboration Resources

Mobile Telephone Technical Training

Security Resources PDA Access

Collaboration Tools

PDA Devices

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In order to develop a cost profile for each scenario, unit costs were identified for every component

Identified multiple data points for each component based on data obtained from interviews or from engineering and professional estimates of expenses

Averaged data points to develop reliable per unit costs

Annualized each cost by dividing the purchase price by the number of years in the appropriate product lifecycle

– All costs provided in this report are annualized

Assigned per unit cost to each component

Developed a cost profile that captured project-specific drivers and assumptions (i.e., assumptions about the current telework solution of each scenario)

Per teleworker costs were grouped into telework home office, services, and enterprise costs and then compiled for each solution (i.e. current, basic and ideal) in each scenario

Finally, the cost of scaling from one solution to the next was calculated for each scenario

Additional information about cost calculations and assumptions is provided in the Appendix

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Table Of Contents

Introduction

Methodology




Appendix

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Basic and ideal solutions have been defined to distinguish between the technologies that are essential for enabling teleworkers to be productive and those that are helpful to teleworkers

The basic and ideal telework solutions are based on commercial and federal best practices that define components and services required at the home office and enterprise levels

Both solutions provide consistent application access for the teleworker through an always-on, secure, and centrally-managed connection to the network that essentially makes the teleworker’s home office a functionally transparent extension of the enterprise

Basic solution includes key components and services that allow teleworkers to efficiently perform their job duties

– Government covers all hardware and services costs except for broadband access

– Sufficient voice and data resources are provided for effective communication with the enterprise and external clients

The ideal solution not only includes the basic components, but provides enhanced services and tools to help increase network performance and teleworker productivity

– Government covers all hardware and services costs; no cost to teleworker

– Fully redundant system and connectivity architectures provide operational resilience and disaster recovery benefits

– Use of collaboration tools and technologies can be a more efficient means of communication while also avoiding the higher costs of traditional voice technologies

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The largest cost per teleworker at their alternative site is the cost for their computer but if this is the same computer used in the office then this does not represent a significant additional cost

Components DescriptionBasic

SolutionIdeal

solution

PC Laptop PC & Docking Station - Provides basic computer capabilities to teleworkers, including mobility and access to enterprise software; Assumes use of same PC for office and home

$2,072 $2,072

Peripheral Support

Printer / Copier / Fax - Provides common office functionality away from office to perform job functions (assumes “All-in-One” device)

$238 $238

Network Interface

Broadband Router - Provides connectivity interface for broadband Internet access, which is required for accessing enterprise network

$68 $68

Mobile Telephone

Mobile Telephone - Provides mobile voice communication allowing co-workers and customers to easily contact the teleworker (OPTION 1)

$144* $144*

Security Resources

Firewall Solution - Enterprise hardware and/or software solution provides secure connectivity services, application policy enforcement, and attack protection

$307 $307

Authentication Device - Devices that provide extra secure layer of teleworker authentication beyond teleworker id / password policies (e.g. secure hardware tokens)

$42 $42

Advanced Authentication Device - Devices that provide high layers of teleworker authentication and encryption for secure and classified access (e.g., fingerprint readers, biometrics)

$30

Collaboration Tools

Web Cam - Integration of video streaming with enterprise collaboration tools allows for virtual meetings with co-workers and customers

$90

PDA Devices PDA Devices - Messaging devices (e.g., Blackberry, Treo) allowing mobile voice and data communication with co-workers and customers (OPTION 2)

$288*

EnterpriseServicesHome Office*Only one of the 2 options needs to be provided for remote telephone communications equipment

The Annual Cost Per Teleworker Per Alternate Site Component Including Maintenance Costs

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Providing telecommunications services to teleworkers is the most significant services cost for teleworkers


SolutionIdeal

solution

Data Communications

Enterprise Connectivity – Network connectivity to support teleworker expansion from enterprise to Internet (e.g., DS3, OC-3) (Ideal solution assumes enterprise has redundant network connectivity for backup connectivity and disaster recovery (including wireless, satellite, etc.)

$1 $1

Home Office Connectivity – Broadband access connectivity from teleworker home office to Internet for enterprise access (e.g., DSL, cable) (Ideal solution assumes that teleworker access costs are covered by government)

$620 $620

Voice Communications

Voice Conferencing - Audio bridge services available to teleworkers for multi-party voice calls with co-workers and customers

$187 $187

Mobile Telephone Access - Usage costs for mobile voice services covered by Government

$651* $651*

Calling Card - Cost allowance provided to teleworkers for long distance voice charges

$14* $14*

Telephone Line - Additional land line to enable separate voice communication from home office

$494* $494*

Help Desk Support

Help Desk Support - Use of existing resources to provide hardware / application support and troubleshooting services to enterprise and teleworkers (Ideal solution assumes enhanced help desk support for teleworkers to maintain SLAs and KPIs)

$20 $100

Technical Training

Technical Training - Information such as telework technology policies, IT troubleshooting techniques, and technical capabilities of home office provided to teleworkers and managers of teleworkers

$300 $300

PDA Access PDA Access - Usage costs for mobile voice / messaging services covered by government

$651

EnterpriseServicesHome Office*Only one of the 3 options needs to be provided for telephone communications access

3 O

PT

ION

S

The Annual Cost Per Teleworker Per Services Component Including Maintenance Costs

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Depending on the current remote accessibility of enterprise applications, providing access to applications is the most significant enterprise cost for teleworkers


SolutionIdeal

solution

Secure Network Access

VPN / Firewall Solution – Infrastructure (hardware / software) provides secure remote access for teleworker connectivity to enterprise network (includes enterprise network interface and software for teleworker clients) (Ideal solution assumes clientless, browser-based solutions (e.g., SSL VPN) that reduce administrative efforts and expand range of accessing devices)

$6 $1

Application / Administrative

Access

Remote Email Access – Centrally managed solution provides for secure remote access to enterprise email system (e.g., Outlook Web Access, Lotus iNotes)

$3 $3

Terminal Emulation System – Centrally managed solution (e.g., Citrix) that provides teleworker secure remote access to non-web enterprise applications and data without the need for separately installed client applications (only thin client software required) (Ideal solution assumes fully redundant enterprise system for backup / disaster recovery)

$433 $433

Web Interface - Multi-tier architecture that provides capability to remotely access enterprise web applications and limited administrative functions (e.g., time cards, expense reports) (Ideal solution assumes fully redundant system allowing remote access to additional admin functions such as travel planning, training, support services, etc.)

$13* $52*

Collaboration Resources

Collaboration Resources - Centrally managed and secured resources such as instant managing, document sharing, and virtual meeting tools are available to teleworkers

$4

EnterpriseServicesHome Office

*Web Interface total does not include labor costs or software licensing costs. Please see Appendix for more detail.

The Annual Cost Per Teleworker Per Enterprise Component Including Maintenance Costs

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Organizations fall into 5 different scenarios in terms of the cost to upgrade their telework supporting infrastructure

For each of the scenarios, a gap analysis was conducted to:

Establish the infrastructure currently in place (including Home Office, Services, and Enterprise components)

Determine the additional infrastructure components required to meet the defined Basic solution to support teleworking

Determine the additional infrastructure components required to meet the defined Ideal solution to support teleworking

For each of the scenarios, a gap analysis was conducted to:

Establish the infrastructure currently in place (including Home Office, Services, and Enterprise components)

Determine the additional infrastructure components required to meet the defined Basic solution to support teleworking

Determine the additional infrastructure components required to meet the defined Ideal solution to support teleworking

The dot indicates where each scenario falls based on the defined Basic and Ideal telework solutions.

The dot indicates where each scenario falls based on the defined Basic and Ideal telework solutions.

Each scenario includes varying levels of infrastructure, resources, access, and support to expand / scale current teleworking capabilities

Each scenario includes varying levels of infrastructure, resources, access, and support to expand / scale current teleworking capabilities

SAMPLE

SAMPLE

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Table Of Contents

Introduction

Methodology




Appendix

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The organizations that participated in the study were grouped into 5 scenarios based on how much additional investment was required to provide the basic and ideal telework IT environment

Scenario A organizations provide basic telework infrastructure including home office support, services, and enterprise access, but additional investment is required to bring them up to the ideal environment

Scenario B organizations provide some basic telework infrastructure including some home office support and services and full enterprise access. However additional investment is required to provide all basic and ideal telework technologies to teleworkers

Scenario C organizations provide some basic telework infrastructure including some home office support, services, and enterprise access. However additional investment is required to provide all basic and ideal telework technologies to teleworkers

Scenario D organizations provide a few basic telework infrastructure components and services for the home office but limited if any enterprise access. Substantial investment is required to provide basic and ideal telework technologies to teleworkers

Scenario E organizations provide few if any basic telework infrastructure and significant investment will be required to provide basic and ideal telework technologies to teleworkers

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Scenario A’s total per teleworker gap between the Current and Basic solution is $0; the gap between Basic and Ideal is $512

Current Infrastructure Components Required to Meet Basic Solution

Components Required to Meet Ideal Solution*

Home Office• $2,072 Laptop & Docking Station

• $238 Peripheral Support (Prt/Copier/Fax)

• $68 Network Interface (Broadband Router)

• $144 Mobile Phone

•Security Resources

- $307 Firewall Solution

- $42 Authentication Devices

• $28 PDA Devices (exec staff only)

Basic Solution is currently in place; no additional components necessary

• $30 Advanced Authentication Devices

• $90 Collaboration Tools (Web Cam)

• $288 PDA Devices (all telework staff)

Services• Data Communications

- $1 Enterprise Connectivity

- $620 Home Office Connectivity

(Gov pays)

•Voice Communications

- $187 Voice Conferencing

- $651 Mobile Phone Access

• $20 Help Desk Support

• $300 Technical Training

• $65 PDA Access (exec staff only)


• $1 Redundant Enterprise Connectivity

• Data Communications


(Gov pays)

• $100 Help Desk Support (enhanced)

• $651 PDA Access (all telework staff)

Enterprise

• Secure Network Access

- $6 VPN / Firewall Solution

• Application / Administrative Access

- $3 Remote Email Access

- $433 Terminal Emulation System

- $13 Web Interfaces (limited)


• $1 Enhanced VPN (clientless)


- $433 Redundant Terminal Services / Application Access Infrastructure

- $52 Web Interfaces (all admin functions)

• $4 Collaboration Resources

• Infrastructure, resources, access, and support in place to support full-scale telework program

• Agency covers all associated costs

Scenario A(2 of 20 Agencies)

Basic

Ideal

* Includes components indicated in Basic Solution Gap Analysis

Component costs are the annual lifecycle costs of the component per teleworker including maintenance if applicable

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Scenario B’s total per teleworker gap between the Current and Basic solution is $2,171 – $2,952; the gap between Basic and Ideal is $1,420



Home Office• $0 Laptop & Docking Station (reutilized PCs ; no security software)

• $60 Peripheral Support (Prt/Copier/Fax) (limited)


• $14 Mobile Phone (exec staff only)

• Security Resources



• $2,072 Laptop & Docking Station

• $238 Peripheral Support (Printer / Copier / Fax) (full)

• $144 Mobile Phone (all telework staff)




Services•Data Communications



(staff pays)

• Voice Communications


- $65 Mobile Phone Access (exec staff only)


• $300 Technical Training (general)


- $651 Mobile Phone Access (all telework staff – Option 1)

- $14 Calling Card (all telework staff – Option 2)

• $300 Technical Training (telework-specific




(Gov pays)



Enterprise• Secure Network Access












• Infrastructure in place to support large scale telework program

• Sufficient resources, enterprise access, and support available

• Agency covers some associated costs

Scenario B(8 of 20 Agencies)

Basic

Ideal



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Scenario C’s total per teleworker gap between the Current and Basic solution is $2,244 – $3,025; the gap between Basic and Ideal is $1,420

Current Infrastructure Components Required To Meet Basic Solution

Components Required To Meet Ideal Solution*

Home Office

• $0 Laptop & Docking Station (reutilized PCs ; no security software)


• $14 Mobile Phone (exec staff only)





• $238 Peripheral Support (Prt/Copier/Fax)

(full)





Services•Data Communications



(staff pays)



- $65 Mobile Phone Access (exec staff only)

- $14 Calling Card (all telework staff)




- $651 Mobile Phone Access (all telework staff – Option 1)

- $14 Calling Card (all telework staff – Option 2)





(Gov pays)



Enterprise

• Secure Network Access












• Infrastructure in place to support existing telework program

• Limited resources and enterprise access available

• Agency covers no costs

Scenario C(3 of 20 Agencies)

Basic

Ideal



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Scenario D’s total per teleworker gap between the Current and Basic solution is $2,323 – $3,104; the gap between Basic and Ideal is $1,420



Home Office

•$0 Laptop & Docking Station (reutilized PCs ; no security software)





• $238 Peripheral Support (Prt/Copier/Fax) (full)







Services• Data Communications



(staff pays)



- $14 Calling Card (all staff)





(all telework staff – Option 1)

- $14 Calling Card





- $620 Home Office Connectivity (Gov pays)



Enterprise•Secure Network Access










- $52Web Interfaces (all admin functions)


• Infrastructure in place to support minimal telework program

• Limited or no resources and enterprise access available


Scenario D(5 of 20 Agencies)

Basic

Ideal



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Scenario E’s total per teleworker gap between the Current and Basic solution is $3,040 – $3,821; the gap between Basic and Ideal is $1,420



Home Office• $68 Network Interface (Broadband Router)


• $238 Peripheral Support (Prt/Copier/Fax) (full)








Services




(staff pays)



- $14 Calling Card (all staff)





- $14 Calling Card


• $300 Technical Training (telework-specific)



- $620 Home Office Connectivity (Gov pays)


• $651 PDA Access (all telework staff

Enterprise

•Secure Network Access












• Minimal Infrastructure in place to support teleworking

• Critical resources and support not available


Scenario E(2 of 20 Agencies)

Basic

Ideal



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Network infrastructures and the ability to scale resources and support for expanded telework programs vary across the federal government

Scenario A Per User Cost

Scenario B Per User Cost

Scenario C Per User Cost

Scenario D Per User Cost

Scenario E Per User Cost

Basic* $0 $2,171 – $2,952

$2,244 – $3,025

$2,323 – $3,104

$3,040 – $3,821

Ideal** $512*** $1,420 $1,420 $1,420 $1,420

*Cost varies depending on which voice communication option is chosen

**Cost of upgrading from basic solution to ideal solution

***Cost of upgrading from current to ideal solution

Scenario E

Basic

Ideal

Scenario D

Basic

Ideal

Scenario C

Basic

Ideal

Scenario B

Basic

Ideal

Scenario A

Basic

Ideal

LE

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DD

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OM

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FF

ICE

, S

ER

VIC

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, AN

D E

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S R

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Critical Home Office, Services, and Enterprise components available to support teleworking

Critical Home Office, Services, and Enterprise components available to support teleworking

All necessary Home Office, Services, and Enterprise components are provided to support teleworking, including some enhanced capabilities

All necessary Home Office, Services, and Enterprise components are provided to support teleworking, including some enhanced capabilities

Minimal Services and Enterprise components available to support teleworking ; No Home Office resources or support available

Minimal Services and Enterprise components available to support teleworking ; No Home Office resources or support available

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The preceding slides on each scenario can be used to estimate the enterprise’s expense of expanding the infrastructure to support 25% to 50% of the staff teleworking

The following assumptions were made when developing these sample calculations:

– The number of teleworkers is calculated by multiplying the federal staff size by OPM’s 2005 federal telework participation rate of 7.7%

– Scenario B was used for this estimate since this is where most agencies (i.e. 8 / 20) fit

– It is assumed that, in order to scale up, each agency will use the basic solution, which requires a per teleworker investment of $2,171 to reach in Scenario B

– It is assumed that each agency will provide calling cards instead of mobile phones

Agency size

Current Total

Telework Cost (per Scenario B)

25% Staff Telework / Total

Cost (per Basic Solution)

50% Staff Telework / Total

Cost (per Basic Solution)

Small Agency

10,000 staff

800 * $1519 = $1.2M

2500 x $2171 = $5.4M

$5.4M - $1.2M = $4.2M

5000 x $2171 = $10.9M

$10.9M - $4.2M = $6.7M

800 Teleworkers

2,500 Teleworkers 5,000 Teleworkers

Medium Agency

50,000 staff

3850 * $1519 = $6M

12,500 x $2171 = $27.1M

$27.1M - $6M = $21.1M

25,000 x $2171 = $54.3M

$54.3mn - $21.1mn =$32.2M

3,850 Teleworkers


Large Agency

100,000 staff

7700 * $1519 = $11.7M

25,000 x $2171 = $54.3M

$54.3M - $11.7M = $42.6M

50,000 x $2171 = $109M

$109M - $42.6M = $66.4M

7,700 Teleworkers


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Table Of Contents

Introduction

Methodology




Appendix

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Agencies must consider their own unique situation to identify the most appropriate solution for enhancing telework infrastructure

Although some agencies may be able to scale up their current infrastructure, this may not be the most cost-effective and technologically efficient approach

– Agencies vary in the maturity of their current infrastructure, availability of resources, and other factors impacting scalability

– Therefore, when possible, this report identifies different robust, scaleable options for technical capabilities needed for extensive telework participation

When assessing the cost of telework expansion, it is useful to bear in mind the size of annual budgets throughout the federal space

– 21 out of 27 agencies are slated for IT budget increases in FY07

– An agency with ~10,000 staff will receive ~$300 million in FY07

– An agency with ~40,000 staff will receive ~1.5 billion in FY07

– An agency with ~100,000 staff will receive ~$2 billion in FY07

Organizations that find themselves in scenarios far removed from the basic and ideal solutions should take a phased approach to scaling up through several budget cycles

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A variety of strategies can help agencies manage the costs of telework technology enhancements

The cost of scaling up from a current to basic solution can be lowered by nearly $800 per teleworker by providing staff with calling cards (instead of mobile phones)

The cost of home office equipment and services components is basically a one-for-one increase based on the number of individual teleworkers (e.g., one computer for one employee)

Scaling up other components, such as help desk, voice conferencing, and enterprise components allows for the realization of economies of scale

Certain technologies that are in place are more easily scaleable than others; for example, Microsoft’s Outlook Web Access (email access) is easier to scale than a client-based email system

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Table Of Contents

Introduction

Methodology




Appendix

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A comprehensive, standard set of cost elements for estimating the costs of current telework costs at 18 federal organizations was developed

In line with established cost estimation methodologies, the Booz Allen team made assumptions and estimates to compensate for several data limitations

– Lower-level organizational information was used for the cost estimates when overall organization’s information was not available – these estimates apply to the lower-level organization only

– Information provided did not cover all the cost elements needed for analysis and the available information differed between organizations – cost assumptions were made to compensate for the missing information

Global and project-specific drivers and assumptions (i.e., assumptions about the current telework environment at each organization) were defined

– Prior year (i.e., sunk) costs are not included in the estimates– All costs are assumed to be in FY 2005 dollars

The cost elements were grouped into the three major categories: teleworker home office, services, and enterprise costs

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The assumptions used to make the cost estimates were based on standard industry estimates of costs and equipment lifecycles

Hardware technology refresh cycle is based on government and industry standards and varies by product. The article “When to Upgrade” by John Dix, Network World, November 28, 2005 and professional experience were used to estimate the life-cycle of equipment

Each annualized per teleworker cost includes the following components, where applicable: 1) the annualized purchase price; 2) annual maintenance costs; 3) annual lifecycle refresh costs; 4) annual recurring fees; 5) annualized one-time fees

– Since every organization interviewed has a telework program in place, these estimates are designed to capture the annualized costs of previously-made purchases

– In order to provide an annualized estimate for acquisition costs, the initial purchase prices are divided by their respective product lifecycles

Calculation of Maintenance and Lifecycle Refresh Costs

– Recurring (i.e. maintenance) annual costs are assumed to total 15% of the acquisition cost of hardware and 20% of the acquisition cost of software

– Refresh costs are calculated by dividing the acquisition cost of each element by its respective product lifecycle

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Appropriate methodologies have been developed in order to estimate the per teleworker costs for enterprise components

The voice conferencing per teleworker estimate assumes that a teleworker uses an additional two hours a month of teleconferencing services as a result of their telework

The enterprise connectivity per teleworker estimate assumes that each agency’s Internet connection is a DS3, which has an annual recurring cost of $8,650 (per GSA’s Washington Interagency Telecommunications System pricing)

The server cost per teleworker estimate assumes that one server can support 6,000 staff

The help desk support per teleworker estimate assumes that a teleworker is responsible for a 20% increase per year in help desk support costs based on them teleworking 20% of the time (equivalent of 1 day per week of telework)

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Per Teleworker Cost Build-Up Methodology: Enterprise Connectivity

It is estimated that, during traffic peaks, 20%* of the teleworker base is actively using the enterprise Internet access connection

– The peak traffic is then multiplied by 20%, based on the assumption that staff telework one day a week

See sample calculation below; this calculation resulted in a per person cost of approximately $1 for each organization

Sample Calculation

Bandwidth per Teleworker (in kb per second - kbps) 5 Assumed

Concurrent Twers 63.04 (20% x 1576 Teleworkers) x 20% = 63.04 Concurrent Teleworkers

Concurrent / Aggregate Bandwidth (in kbps) 315.2 5 kbps x 63.04 Concurrent Teleworkers = 315.20 kbps

% of Current Bandwidth 0.00704578 315.20 kbps / 44736 (DS3 in kbps) = .007% of Current Bandwidth

Current Bandwidth Costs (WITS / FTS) $8,650.00

Per GSA’s Washington Interagency Telecommunications System (WITS) Pricing

Total Cost (Current BW Costs x % of Current BW) $60.95 .007% Bandwidth Use x $8,650 = $60.95 Total per Person Cost

Annualized Cost $731.35 $60.95 x 12 months = Annualized Total per Person Cost

Annualized Cost per Person ~$1.00 Annualized Cost / Total # of Teleworkers

*1 day per week of Telework = 20%

Data used in Sample Calculation

DS3 in kilobytes per second (kbps) 44736 kbps

WITS DS3 Installation Cost $5,300.00

WITS DS3 Recurring Cost $8,650.00

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Per Teleworker Cost Build-Up Methodology: Voice Conferencing

*Source: The Office of Personnel Management’s (OPM) OPM’s 2005 Report “The Status of Telework in the Federal Government”

Organization # 5

Assumed per Minute Rate $0.13 (Per Vendor Quote)

Assumed Ave. Conf. Call Duration (minutes) 60

Ave # of Conf. Calls Due to TW 2

Ave. Duration of Conf. Calls Due to TW (in minutes) 120 60 Minutes x 2 Hrs = 120 Minutes

Total # of TWers at Org 1,576 Source*

Monthly Cost $24,585.60 $.08 x 120 Minutes x 1576 TWers = $15,219.60

Annualized Cost $295,027.20 $15,219 x 12 Months = $181,555.20

Per User Cost $187.20 $181,555 / 1576 TWers = $115.20

Organization # 9

Assumed per Minute Rate $0.13 (Per Vendor Quote)

Assumed Ave. Conf. Call Duration (minutes) 60

Ave # of Conf. Calls Due to TW 2

Ave. Duration of Conf. Calls Due to TW (in minutes) 120 60 Minutes x 2 Hrs = 120 Minutes

Total # of TWers at Org 18,604 Source*

Monthly Cost $290,222.40 $.08 x 120 Minutes x 18,604 TWers = $178,598.40

Annualized Cost $3,482,668.80 $1798,598.40 x 12 Months = $2,143,180.80

Per User Cost $187.20 $2,143,180.80 / 18,604 TWers = $115.20

Regardless of the number of teleworkers, this Per User Cost remains the same across each organization, illustrated by the following calculations which include dramatically different numbers of teleworkers

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Per Teleworker Cost Build-Up Methodology: Standard and Enhanced Help Desk Support

Standard Help Desk Support: The $100 per teleworker help desk support cost is based on the average annual per teleworker cost of a contractor-operated help desk that supports 15,000 staff at a large cabinet-level department

Enhanced Help Desk Support Costs: Per the basis of estimate above, a help desk provided solely for teleworkers would cost $100 per teleworker on an annual basis

Estimated Telework Help Desk Costs

$100.00 Assumed average annual Help Desk cost per user

20.00% Increase in HD costs due to telework*

$20.00$100 x 20% - $20 (annual per user increase cost due to telework)

*1 day per week of Telework = 20%

Dedicated Help Desk Costs

$100.00 Assumed average annual help desk cost per user

36

Per Teleworker Cost Build-Up Methodology: Basic Web Application Development Cost

Basic Web-Based Application Development Solution: Total Cost of $256,500

– Two-tier Microsoft-based architecture (less scaleable, more affordable)

– 4 yr lifecycle

– Tier 1: web front end =

2 servers at $20,000 each $40,000

1 load balancer $25,000

Software license cost not included since it can vary widely due multiple vendor solutions available and due to an application’s specific requirements, e.g. business rules, data manipulation

– Tier 2: web app =

Network switch $25,000

2 servers at $50,000 assumed $100,000

– Annualized cost of $64,125 ($256,500 / 4)

– Annual 15% hardware maintenance $28,500; Annual 20% software maintenance $38,000

– Supports up to 200 concurrent teleworkers which is scaleable to 5000 teleworkers who access it once a week on average

– Per teleworker cost of $13 (not including software and labor costs)

37

Per Teleworker Cost Build-Up Methodology: Basic Web Application Development Cost (cont.)

Labor costs are not included here since they vary widely due to the scale and scope of development work, however some guidelines are below:

– 2-8 staff per development is range, with 3-5 being the median

– $110 per hour is typical outsource cost for web development work

– Timeframe: small application = 2-3 months; large application = 6 months – 1 year

– System Administrator is needed to manage each application

38

Per Teleworker Cost Build-Up Methodology: Ideal Web Application Development Cost

Ideal Web-Based Application Development Solution: Total Cost of $526,500

– Build 1 component (that uses a 3-tiered component-based architecture) that can used by multiple apps and can serve multiple requests simultaneously much more cost effective

– Multi-tier Unix-based architecture (more scaleable and robust)

– 4 yr lifecycle

– Tier 1: web front end =

2 servers at $20,000 each $40,000

1 load balancer $25,000

Software license cost not included since it can vary widely due multiple vendor solutions available and due to an application’s specific requirements, e.g. business rules, data manipulation

– Tier 2: middle tier =

2 servers at $100,000 each $200,000

– Tier 3: web application =

Network switch $25,000

2 servers at $50,000 $100,000

39

Per Teleworker Cost Build-Up Methodology: Ideal Web Application Development Cost

Ideal Web-Based Application Development Solution (cont.): Total Cost of $526,500

– Annualized cost of $131,625 ($526,500 / 4 )

– Annual 15% hardware maintenance $58,500; Annual 20% software maintenance $78,000

– Supports up to 200 concurrent teleworkers which is scaleable to 5000 teleworkers who access it once a week on average

– Per teleworker cost of $26 (not including software and labor costs)

– This per teleworker cost must be doubled to $52 to account for redundancy (again, this does not include software and labor costs)

Labor costs are not included here since they vary widely due to the scale and scope of development work, however some guidelines are below:

– 2-8 staff per development is range, with 3-5 being the median

– $110 per hour is typical outsource cost for web development work

– Timeframe: small application = 2-3 months; large application = 6 months – 1 year

– System Administrator is needed to manage each application

40

Per Teleworker Cost Build-Up Methodology: Collaboration Resources, i.e. Live Communication Server 2005 Costs

Centrally managed and secured resources such as instant managing, document sharing, and virtual meeting tools are made available to teleworkers

Microsoft Live Communication Server (LCS) 2005: Total Cost of $251,000

– This sample solution assumes a teleworker base of 20,000

– 3.5 yr lifecycle

– Annualized cost of ($251,000 / 3.5) $72,000

– 2 load balancers (for redundancy) at $25,000 $50,000 subtotal

– Array of 4 servers at $30,000 each $120,000 subtotal

– $3150 LCS licensing cost per server $12,600 (does not include federal government discount, which could result in significant savings)

– Annual 15% hardware maintenance $28,000

– Annual 20% software maintenance $37,000

– Supports 4000 concurrent teleworkers, which is scaleable to 20,000 teleworkers teleworkers who access it once a week on average

– Client Access License (CAL) if $31 but Microsoft does not charge this amount if the customer has valid MS Exchange licenses (which we assume each organization has)

– Per teleworker cost of $4

41

Per Teleworker Cost Build-Up Methodology: Remote Email Access Costs

Microsoft Outlook Web Access (OWA) Solution: Total Cost of $233,000

– This sample solution assumes a teleworker base of 20,000

– 3.5 yr lifecycle

– Annualized cost of $67,000 ($232,500 / 3.5)

– 2 load balancers (for redundancy) at $25,000 $50,000

– Array of 4 ISA servers at $30,000 each $120,000

– $2000 - $4000 ISA total servers licensing cost (varies) $3000 assumed

– Annual 15% hardware maintenance $34,000

– Annual 20% software maintenance $26,000

– Supports 4000 concurrent teleworkers, which is scaleable to 20,000 teleworkers who access it once a week on average


It is estimated that, during traffic peaks, 20%* of the teleworker base is actively using remote email

The peak traffic is then multiplied by 20%, based on the assumption that staff telework one day a week

42

Per Teleworker Cost Build-Up Methodology: VPN Costs

Standard VPN Solution: Total Cost of $25,000

– 3 yr Lifecycle

– Annualized Cost of $8300 ($25,000 / 3)

– Cisco VPN concentrator

– Includes end teleworker licenses

– Supports 1500 concurrent teleworkers, which is scaleable to 37,500 teleworkers


Clientless SSL VPN Solution: Total Cost of $350,000

– 3 yr Lifecycle

– Annualized Cost of $117,000 ($350,000 / 3)

– includes hardware and software and maintenance)

– supports 5000 concurrent teleworkers, which is scaleable to a teleworker base of 125,000 teleworkers


It is estimated that, during traffic peaks, 20% of the teleworker base is actively using VPN

The peak traffic is then multiplied by 20%, based on the assumption that staff telework one day a week

43

Per Teleworker Cost Build-Up Methodology: “Limited” vs. “Full Costs

To account for the fact that in each scenario, the current solution provides limited versions of the components we identified, we have reduced the per teleworker costs to appropriate percentages

Explanation of 10% PDA Access – provided for executive staff only

Explanation of 10% Mobile Phone - provided for executive staff only

Explanation of 10% Mobile Phone Access - provided for executive staff only

Explanation of 25% Peripherals – assumes printer only

Explanation of Web Interfaces – different architecture, redundant system

Component

Full (100%) Per

Teleworker Cost

Limited Per Teleworker

Cost

Percentage

PDA $288 $29 10%

10% PDA Access

$651 $65 10%

Mobile Phone

$144 $14 10%

Mobile Phone Access

$651 $65 10%

Peripherals $238 $60 25%

Web Interfaces

$52 $13 N/A

0 analysis document task 5 cost estimates for telework scalability march 21, 2006

Documents

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human services department

treasury department

current levels of support

teleworker costs

federal workforce teleworking

scenarios current solution