Strategic Sourcing Tools and Implementation Feasibility Analysis

Strategic Sourcing Tools and Implementation Feasibility Analysis Final Report November 2009

Contents Executive Summary Introduction and Background Technology Marketplace Drivers of Cost and Timeline Next Steps/Follow-on Guidance Options Available for the AF Appendix

The Air Force is interested in understanding the technology available to support its Installation Acquisition Transformation (IAT) initiative and Strategic Sourcing Model PROJECT BACKGROUND The Air Force has developed an iterative Strategic Sourcing Model that is currently supported by various manual process steps Through the IAT initiative, the Air Force is aiming to better coordinate strategic sourcing efforts across the 71 installations An enterprise strategic sourcing group consisting of ~240 acquisition personnel is being established to centralize the sourcing of common supplies and services across installations Similarly, major commands within the Air Force are establishing centralized sourcing teams to help meet specific MAJCOM needs PROJECT GOAL Gain a high level understanding of the various Strategic Sourcing technology* vendors and tools currently available in the marketplace that can support IAT and the Air Force Strategic Sourcing Model * Note: Strategic Sourcing technology is often referred to as Spend Management technology in industry

Three key takeaways were identified during the project KEY TAKEAWAYS The end-to-end Air Force Strategic Sourcing Model can not be completely addressed by technology The Strategic Sourcing technology marketplace is a growing and maturing market from both a vendor as well as a user perspective The Strategic Sourcing technology vendor market consists of 4 distinct segments varying by capability depth and customer focus The key takeaways are explained in further detail on the following slides…

Sourcing Strategy Development Current Strategy Review Market Research Opportunity Assessment Requirements Definition Strategy Execution The Air Force Strategic Sourcing Model was put into a linear format to show the overlap of industry capabilities Performance Management

Key Takeaway – Functionality and Capabilities KEY TAKEAWAYS – FUNCTIONALITY AND CAPABILITIES

Sourcing Strategy Development Current Strategy Review Market Research Opportunity Assessment Requirements Definition Strategy Execution Strategic Sourcing functional components available through technology vendors can support most of the Air Force Strategic Sourcing Model AIR FORCE STRATEGIC SOURCING MODEL Performance Management Spend Analysis Strategic Sourcing Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management There are no Strategic Sourcing technology tools that cover the end-to-end AF Strategic Sourcing Model, as no functional components are available to fully support Supply Market Analysis and Demand Management/Planning Page 6

Key Takeaway – Strategic Sourcing Market Growth KEY TAKEAWAY – STRATEGIC SOURCING MARKET GROWTH

The Strategic Sourcing technology marketplace is a growing and evolving market STRATEGIC SOURCING MARKET REVENUE (2007-2012 EST) GENERAL MARKET TRENDS Steady overall market growth: The overall market is expected to grow at a 10% Compound Annual Growth Rate (CAGR) through 2012 Strong viability amongst medium to larger vendors: Medium to larger vendors have strong financial positions and their viability is currently not a concern Limited consolidation activity: Consolidation in the market has been limited in the past 24 months, but is expected to heat up in the 4th quarter of 2009 and 1st half of 2010 Source: AMR Research, 2008

Key Takeaways – Vendor Landscape KEY TAKEAWAYS – VENDOR LANDSCAPE

To provide the defined functionality, the Strategic Sourcing technology vendor market consists of four distinct segments varying by capability depth and customer focus STRATEGIC SOURCING TECHNOLOGY MARKET SEGMENTS Can Provide Both Commercially-Focused and Federally-Focused Capabilities Provide Federally-Focused Capabilities Typically Provide Commercially-Focused Capabilities Many Commercially-Focused Vendors are placing an emphasis on working with Federal clients and some are considering developing Federally-focused capabilities within their tools

In addition to vendors and capabilities, there are a number of other major drivers that can affect the cost and time required for the AF to implement Strategic Sourcing technology tools COSTS/TIMELINE DRIVERS AND DESCRIPTION Page 11

As next steps, the AF should focus on understanding its high-level needs and requirements and collecting additional information prior to an acquisition decision Page 12

The Air Force is undergoing an Installation Acquisition Transformation (IAT) initiative focused on improving the acquisition of supplies and services PROJECT BACKGROUND Through the IAT initiative, the Air Force is aiming to better coordinate strategic sourcing efforts across the 71 installations An enterprise strategic sourcing group consisting of ~240 acquisition personnel is being established to centralize the sourcing of common supplies and services across installations Similarly, major commands within the Air Force are establishing centralized sourcing teams to help meet specific MAJCOM needs

The Air Force has developed an iterative Strategic Sourcing Model that is currently supported by various manual process steps AIR FORCE STRATEGIC SOURCING MODEL

As part of the IAT initiative, the Air Force is interested in implementing Strategic Sourcing technology tools that can address one or more steps in the AF Strategic Sourcing Model BENEFITS OF STRATEGIC SOURCING TECHNOLOGY* Strategic Sourcing technology tools can help the AF improve its Strategic Sourcing Model by: Automating processes Enabling greater supplier transparency Providing greater process visibility Driving information sharing and collaboration * Note: Strategic Sourcing technology is often referred to as Spend Management technology in industry

Censeo is helping SAF/AQC understand the current landscape of technology tools that can support the Air Force Strategic Sourcing Model PROJECT GOAL AND OBJECTIVES GOAL Gain a high level understanding of the various Strategic Sourcing technology vendors and tools currently available in the marketplace that can support IAT and the Air Force Strategic Sourcing Model KEY OBJECTIVES Identify key functional components and capabilities available in the Strategic Sourcing technology marketplace Identify Strategic Sourcing technology trends, vendor market segments, and vendor landscape Identify drivers of cost and timeline that the Air Force should keep in mind if/when selecting and implementing tools Provide guidance on next steps the Air Force should take prior to an acquisition decision Identify various Strategic Sourcing technology options available for the Air Force Compare key capabilities, experience, and implementation considerations of select vendors

Contents Executive Summary Introduction and Background Technology Marketplace General Market and Technology Trends Functionality and Capabilities Vendor Landscape Drivers of Cost and Timeline Next Steps/Follow-on Guidance Options Available for the AF Appendix

Key Takeaways KEY TAKEAWAYS (PAGE 1 OF 2)

Key Takeaways (Cont) KEY TAKEAWAYS (PAGE 2 OF 2)

There are a number of general trends related to the overall Strategic Sourcing technology market, technology provided, and usage by customers STRATEGIC SOURCING MARKETPLACE TRENDS The following slides show the current trends in the Strategic Sourcing technology marketplace…

The Strategic Sourcing technology marketplace is a growing and evolving market STRATEGIC SOURCING MARKET REVENUE (2007-2012 EST) GENERAL MARKET TRENDS Steady overall market growth: The overall market is expected to grow at a 10% Compound Annual Growth Rate (CAGR) through 2012 Strong viability amongst medium to larger vendors: Medium to larger vendors have strong financial positions and their viability is currently not a concern Limited consolidation activity: Consolidation in the market has been limited in the past 24 months, but is expected to heat up in the 4th quarter of 2009 and 1st half of 2010 Source: AMR Research, 2008

There are a number of general trends in the marketplace related to the tools that technology vendors are offering GENERAL TECHNOLOGY TRENDS Increased emphasis on User Interfaces (UIs): Vendors are placing an added emphasis on developing UIs. Good UIs are becoming more than just a "nice to have” – vendors are increasingly selling their tools based on the quality of their interfaces Shift to Software as a Service (SaaS)/On-Demand/Cloud solutions: Vendors are shifting towards providing more SaaS/On-Demand solutions for many Strategic Sourcing technology areas; also becoming known as “cloud” solutions Focus on analytics, Business Intelligence (BI), and dashboards: Vendors are placing a greater emphasis on adding additional levels of basic analytics, BI, and reporting/dashboard capabilities as part of their technology tools beyond just spend analysis. Emphasis on providing value-added solutions/services: Solutions that combine and integrate proprietary and/or third-party supply market and supplier content are becoming more common – no longer are vendors competing on just technology, but are also focused on their ability to deliver integrated solutions including content and market intelligence in certain areas Source: SpendMatters

Furthermore, a number of organizations are changing the way they are adopting, using, and managing Strategic Sourcing technology tools GENERAL ADOPTION/USAGE/MANAGEMENT TRENDS Increase in procurement data capture: Organizations are collecting more and more types and quantities of procurement-related information (e.g., supplier diversity data) through technology tools. Yet, few organizations are capable of fully rolling-up and distributing this information to key decision makers and other users Usage of full functionality is low: While demand and adoption are technically rising for Strategic Sourcing technology, the average organization uses < 50% of the capabilities in the solutions they chose Investment in monitoring supply risk: Organizations are beginning to invest more and more in technology and content to monitor supply risk in their supply bases Purchasing of point solutions on the rise: Organizations are often purchasing different types of Strategic Sourcing technology from a diverse vendor set (e.g., buying Contract Management functionality from one vendor and E-Sourcing from another) Increasing influence of IT: CIOs and IT organizations are starting to become more influential in buying decisions (based on needs, security, integration, architecture, etc.) despite the general dominance of external (SaaS/on-demand) deployment models Source: SpendMatters

Sourcing Strategy Development Current Strategy Review Market Research Opportunity Assessment Requirements Definition Strategy Execution Strategic Sourcing functional components available through technology vendors can support most of the Air Force Strategic Sourcing Model AIR FORCE STRATEGIC SOURCING MODEL Performance Management Spend Analysis Strategic Sourcing Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management There are no Strategic Sourcing technology tools that cover the end-to-end AF Strategic Sourcing Model, as no functional components are available to fully support Supply Market Analysis and Demand Management/Planning Page 27

Sourcing Strategy Development Current Strategy Review Market Research Requirements Definition Opportunity Assessment Strategy Execution Supply Market Analysis and Demand Management/Planning require a higher level of analysis and synthesis that must be conducted “off tool” AIR FORCE STRATEGIC SOURCING MODEL Performance Management Spend Analysis Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management

Supply Market Analysis is conducted through “off tool” analysis based on market data and information available SUPPLY MARKET ANALYSIS PROCESS Identify market data and information sources* Collect data/information across multiple sources Identify relevant data and information related to sourcing of a specific commodity/service across all sources: Market growth Market trends Market segmentation Value chains Cost drivers Etc. Synthesize and analyze key sourcing-related findings and insights identified in the market data and information sources Identify the key implications or “so-whats” from the findings and insights Identify potential sourcing opportunities based on analysis “Off Tool” Analysis Supply Market Analysis goes beyond collection of market data and information…significant synthesis and analysis of key insights is required to identify sourcing implications and opportunities * A segmentation of market data and information sources and examples of each are provided in the Appendix

Similarly, while some functional components can provide input data necessary for Demand Management and Planning, higher level “off tool” analysis is required The AF will need to rely on manual processes such as stakeholder collaboration and Office productivity tools such as Microsoft Excel for the higher level analysis/synthesis required for Demand Management and Planning

Current Strategy Review Market Research Sourcing Strategy Development Requirements Definition Opportunity Assessment Strategy Execution Spend Analysis components typically help organizations collect and analyze historical spend data AIR FORCE STRATEGIC SOURCING MODEL SPEND ANALYSIS CAPABILITIES Performance Management Spend Analysis Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management

Current Strategy Review Market Research Sourcing Strategy Development Requirements Definition Opportunity Assessment Strategy Execution E-Sourcing components typically enable eRFx, auctions, negotiations, and sourcing optimization AIR FORCE STRATEGIC SOURCING MODEL E-SOURCING CAPABILITIES Performance Management Spend Analysis Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management

Current Strategy Review Market Research Sourcing Strategy Development Requirements Definition Opportunity Assessment Strategy Execution E-Procurement components typically support the entire procure to pay process AIR FORCE STRATEGIC SOURCING MODEL E-PROCUREMENT CAPABILITIES Performance Management Spend Analysis Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management

Current Strategy Review Market Research Sourcing Strategy Development Requirements Definition Opportunity Assessment Strategy Execution Contract Management components typically support the contract lifecycle from creation to close-out AIR FORCE STRATEGIC SOURCING MODEL CONTRACT MANAGEMENT CAPABILITIES Performance Management Spend Analysis Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management

Current Strategy Review Market Research Sourcing Strategy Development Requirements Definition Opportunity Assessment Strategy Execution Supplier Management components typically support all aspects of supplier relationships from on-boarding to performance management and reporting AIR FORCE STRATEGIC SOURCING MODEL SUPPLIER MANAGEMENT CAPABILITIES Performance Management Spend Analysis Functional Components provided by Technology Vendors Supply Market Analysis Not Available through Technology Vendors Demand Management/Planning E-Sourcing E-Procurement Contract Management Supplier Management Supplier Management

To provide the defined functionality, the Strategic Sourcing technology vendor market consists of four distinct segments varying by capability depth and customer focus STRATEGIC SOURCING TECHNOLOGY MARKET SEGMENTS Can Provide Both Commercially-Focused and Federally-Focused Capabilities Provide Federally-Focused Capabilities Typically Provide Commercially-Focused Capabilities Many Commercially-Focused Vendors are placing an emphasis on working with Federal clients and some are considering developing Federally-focused capabilities within their tools

STRATEGIC SOURCING FULL SUITE VENDORS Strategic Sourcing Full Suite Vendors provide most or all functional components; however, their primary focus is on the commercial sector Definition: Vendors who provide a full suite of Strategic Sourcing functionality (at least 4 out of the 5 functional components) with varying levels of capabilities Identified Vendors: 9 Examples: Ariba, Emptoris, Global eProcure STRATEGIC SOURCING SUITE VENDORS Strategic Sourcing Full Suite Vendors can potentially provide a broad range of functionality to the AF in a single integrated package and many have market leading capabilities

LIMITED SUITE/POINT SOLUTION VENDORS Limited Suite/Point Solutions Vendors can provide only specific functional components Definition: Vendors who provide only targeted Strategic Sourcing functionality (at least 1 out of the 5 functional components) with varying levels of capabilities Identified Vendors: 57 Examples: Zycus, Procurra LIMITED SUITE/POINT SOLUTIONS VENDORS Limited Suite/Point Solution Vendors can provide overall solution depth in targeted areas; however, they cannot support the end-to-end AF strategic sourcing model; the AF would require integration of multiple tools to cover its model

ERP VENDORS ERP Vendors can provide a full set of Strategic Sourcing components including some that are Federally tailored; however, the depth of their capabilities varies Definition: Enterprise Resource Planning (ERP) vendors who can provide at least basic capabilities for most or all of the Strategic Sourcing functional components Identified Vendors: 3 Examples: SAP, Oracle, PeopleSoft ERP VENDORS ERP Vendors bring both Commercial and Federal experience and have broad coverage; however, there are significant functional depth variations within their capabilities

FEDERAL GOVERNMENT-SPECIFIC TOOL VENDORS Federal Government-Specific Tool Vendors can address the unique Federal contracting process; however, currently are limited in the full range of capabilities Definition: Vendors who focus solely on providing functionality tailored to Federal-specific contracting processes with varying levels of capabilities Identified Vendors: 3 Examples: Compusearch, Distributed Solutions FEDERAL GOVERNMENT-SPECIFIC TOOL VENDORS Federal Government-Specific Tool Vendors have tailored solutions for the Federal acquisition processes; however, they do not generally provide the full range of functional component capabilities available through commercially-focused vendors

Of the 12 Strategic Sourcing Full Suite and ERP vendors, only 6 have identified Federal experience STRATEGIC SOURCING SUITE/ERP VENDOR LANDSCAPE BREADTH OF OFFERING * PeopleSoft is owned by Oracle A high level comparative analysis of these vendors has been included in the Appendix

Federal Government-Specific Vendors have primarily focused on Contract Management; however, they are building out broader capabilities FEDERAL GOVERNMENT-SPECIFIC TOOL VENDORS LANDSCAPE BREADTH OF OFFERING A high level comparative analysis of these vendors has been included in the Appendix; in addition, a list of the 57 identified Limited Suite/Point Solution Vendors has been included in the Appendix

In addition to vendors and capabilities, there are a number of other major drivers that can affect the cost and time required for the AF to implement Strategic Sourcing technology tools COSTS/TIMELINE DRIVERS AND DESCRIPTION Page 45

Within each driver, there are a number of specific considerations for the AF that can drive cost and timeline CONSIDERATIONS THAT AFFECT COST/TIMELINE DRIVERS (PAGE 1 OF 3) Page 46

Within each driver, there are a number of specific considerations for the AF that can drive cost and timeline (cont) CONSIDERATIONS THAT AFFECT COST/TIMELINE DRIVERS (PAGE 2 OF 3) Page 47

Within each driver, there are a number of specific considerations for the AF that can drive cost and timeline (cont) CONSIDERATIONS THAT AFFECT COST/TIMELINE DRIVERS (PAGE 3 OF 3) Page 48

As next steps, the AF should focus on understanding its high-level needs and requirements and collecting additional information prior to an acquisition decision * Reference slides 77-79 in the Appendix for examples of implementations within the DoD and Points of Contact information Page 50

The AF should immediately understand its high level needs and requirements to drive the rest of the Strategic Sourcing technology assessment Page 51

A Request For Information (RFI) will help the AF develop a more detailed understanding of the market required to move towards an acquisition decision REQUEST FOR INFORMATION (RFI) OBJECTIVES This assessment only provides the AF with the foundational knowledge necessary to further engage with vendors…a deeper understanding of their tools, specific capabilities, and costs is required prior to a future acquisition A detailed RFI can be sent out by the AF to the vendor community prior to a formal acquisition of sourcing tools to understand the sourcing tools and capabilities in greater detail based on high level AF requirements Page 52

The RFI should address a number of key topics and questions SAMPLE RFI TOPICS (PAGE 1 OF 2) Page 53

The RFI should address a number of key topics and questions (cont) SAMPLE RFI TOPICS (PAGE 2 OF 2) Page 54

Following an RFI, the AF business case will evaluate an investment in Strategic Sourcing tools Based on the business case, the AF should be able to decide on moving forward with an acquisition of Strategic Sourcing tools Page 55

The AF has a number of options to consider for the Strategic Sourcing tools it wants to implement and how they are deployed OPTIONS FOR THE AIR FORCE TO CONSIDER There are a number of other decisions for the Air Force to make regarding Strategic Sourcing tools based on its specific needs/requirements…the following slides provide options available for the Air Force in several key areas… Page 57

The AF has to decide the level of coverage it wants before selecting specific Strategic Sourcing vendors and tools SCENARIOS FOR VENDOR/TOOL OPTIONS The following slides lay out the vendor/tool options for Scenario 1… Page 58

While no single vendor can meet all of the AF needs, the AF has many options to consider when choosing Strategic Sourcing vendors to cover most of its sourcing model SCENARIO 1 VENDOR/TOOL OPTIONS (PAGE 1 OF 2) Page 59

While no single vendor can meet all of the AF needs, the AF has many options to consider when choosing Strategic Sourcing vendors to cover most of its sourcing model (cont) SCENARIO 1 VENDOR/TOOL OPTIONS (PAGE 2 OF 2) Page 60

Furthermore, there are a number of advantages and disadvantages for each tool deployment model option that the AF must consider DEPLOYMENT/HOSTING MODEL OPTIONS (PAGE 1 OF 2) Page 61

Furthermore, there are a number of advantages and disadvantages for each tool deployment model that the AF must consider (cont) DEPLOYMENT/HOSTING MODEL OPTIONS (PAGE 2 OF 2) Page 62

In addition, there are a number of License Model options available for the AF to consider LICENSE MODEL OPTIONS NOTE: The Deployment Model(s) shown is the model typically associated with each License Model; however, each License Model is not limited to the Deployment Model(s) indicated; not every vendor provides each of the license models listed above Page 63

Contents Executive Summary Introduction and Background Methodology Technology Marketplace Drivers of Cost and Timeline Next Steps/Follow-on Guidance Options Available for the AF Appendix Methodology Market Data and Information Providers Limited Suite/Point Solution Vendors Vendor Comparative Analysis DoD Implementation Examples

The team used a 4 step process to conduct the Strategic Sourcing technology research and analysis STRATEGIC SOURCING TECHNOLOGY RESEARCH AND ANALYSIS METHODOLOGY Research and identify basic market trends Research and identify market segments Identify functional components and key capabilities available in the marketplace Setup and conduct vendor presentations and demos Identify landscape of Strategic Sourcing technology vendors Identify those vendors with Federal government experience Identify select vendors for detailed comparative analysis Identify criteria for detailed comparative analysis of select vendors Identify vendor strengths and weaknesses Compare vendors Summarize key takeaways for the AF Identify next steps and provide follow up guidance on an RFI and business case

The team leveraged a number of information sources for its research and analysis INFORMATION SOURCES

Market data and information providers can be segmented into 5 primary areas of focus; however, many vendors provide research across multiple segments MARKET DATA AND INFORMATION PROVIDER SEGMENTS Segment Definition Provider Examples Supply Market Research can also be found through trade publications, blogs and industry associations

15 Limited Suite/Point Solution Vendors with some Federal experience have been identified that are capable of providing at least one of the five functional components LIMITED SUITE/POINT SOLUTION VENDOR LANDSCAPE – WITH VERIFIED FEDERAL EXPERIENCE

In addition, many other Limited Suite/Point Solution Vendors without Federal experience exist and are capable of providing at least one of the five functional components LIMITED SUITE/POINT SOLUTION VENDOR LANDSCAPE – WITH NO VERIFIED FEDERAL EXPERIENCE (PAGE 1 OF 3)

In addition, many other Limited Suite/Point Solution Vendors without Federal experience exist and are capable of providing at least one of the five functional components (cont.) LIMITED SUITE/POINT SOLUTION VENDOR LANDSCAPE - WITH NO VERIFIED FEDERAL EXPERIENCE (PAGE 2 OF 3)

In addition, many other Limited Suite/Point Solution Vendors without Federal experience exist and are capable of providing at least one of the five functional components (cont.) LIMITED SUITE/POINT SOLUTION VENDOR LANDSCAPE - WITH NO VERIFIED FEDERAL EXPERIENCE (PAGE 3 OF 3) There are 100s of other Limited Suite/Point Solutions also available in the marketplace

The team conducted separate vendor comparative analyses for Strategic Sourcing Full Suite/ERP Vendors and Federal Government-Specific Tool Vendors VENDORS FOR COMPARATIVE ANALYSES Strategic Sourcing Full Suite/ERP Vendors – All identified vendors selected (vendors capable of providing at least 4 of the 5 functional components): Ariba Emptoris BravoSolution SAP (ERP) Oracle (ERP) Global eProcure Federal Government-Specific Tool Vendors – 2 out of the 3 primary vendors selected*: Compusearch Distributed Solutions PeopleSoft (ERP) Basware PerfectCommerce AECSoft Iasta Ketera Note: A detailed vendor comparative analysis was not conducted for Limited Suite/Point Solution Vendors; however, broad strengths/weaknesses have been identified for each functional component * CACI was excluded from the comparative analysis due to lack of participation from the vendor during the vendor presentations and limited information available on vendor website Page 75

The Strategic Sourcing Full Suite/ERP Vendors were compared relative to each other based on their Capabilities, General Experience/Viability, Government Experience, and Implementation Feasibility CRITERIA USED FOR STRATEGIC SOURCING FULL SUITE AND ERP VENDOR COMPARATIVE ANALYSIS

Based on a rating of Strategic Sourcing Full Suite/ERP Vendors across the four criteria, several have been identified as Tier 1 vendors STRATEGIC SOURCING FULL SUITE/ERP VENDOR COMPARISON SUMMARY Tier 1 Vendors Tier 2 Vendors Tier 3 Vendors A further breakdown of the rating including strengths and weaknesses are presented on the following slides…

Amongst Strategic Sourcing Full Suite Vendors, Ariba and Emptoris are functionally the most superior from a capabilities perspective STRATEGIC SOURCING FULL SUITE/ERP VENDOR - CAPABILITIES * Across Functional Components

Amongst the Strategic Sourcing Full Suite Vendors, Ariba, Emptoris, and BravoSolution are considered best in class for General Experience and Viability STRATEGIC SOURCING FULLSUITE/ERP VENDOR - GENERAL EXPERIENCE AND VIABILITY

Amongst Strategic Sourcing Full Suite and ERP Vendors, Oracle has direct experience implementing Strategic Sourcing tools within the Air Force STRATEGIC SOURCING FULL SUITE/ERP VENDOR – FEDERAL GOVERNMENT EXPERIENCE

Within the Strategic Sourcing Full Suite/ERP Vendors, Ariba tends to be the strongest when implementing the various functional components STRATEGIC SOURCING FULLSUITE/ERP VENDOR - IMPLEMENTATION FEASIBILITY * Higher for SAP E-Sourcing, Spend Analysis, and private sector Contract Management (SaaS)

The Federal Government-Specific Tool Vendors were compared relative to each other based on their Capabilities, Federal Government Experience, and Implementation Feasibility CRITERIA USED FOR FEDERAL GOVERNMENT-SPECIFIC TOOL VENDOR COMPARATIVE ANALYSIS

Based on a relative comparison of Federal Government-Specific Tool Vendors across the three criteria, Compusearch has the advantage over Distributed Solutions FEDERAL GOVERNMENT-SPECIFIC TOOL VENDOR COMPARISON SUMMARY A further breakdown of the ratings are presented on the following slides…

Within the Federal Government-Specific Tool Vendor space, Compusearch can provide greater capability breadth and depth compared to Distributed Solutions FEDERAL GOVERNMENT-SPECIFIC TOOL VENDOR - CAPABILITIES * Across Functional Components

Compusearch has significant Federal experience, including experience within several DoD organizations FEDERAL GOVERNMENT-SPECIFIC TOOL VENDORS – FEDERAL GOVERNMENT EXPERIENCE

Compusearch has experience integrating its tools with a number of legacy and COTS applications and comes with many pre-built interfaces FEDERAL GOVERNMENT-SPECIFIC TOOL VENDORS – IMPLEMENTATION FEASIBILITY

Overall, limited Suite/Point Solution Vendors have a number of strengths and weaknesses for each functional component compared to other vendors LIMITED SUITE/POINT SOLUTION VENDORS STRENGTHS AND WEAKNESSES

Compusearch has successfully implemented its Federally-focused tools within the Army FMWRC

SAP is implementing its Procurement for Public Sector (PPS) suite at the Defense Logistics Agency (DLA)

In addition, Oracle and Ariba both have experience implementing their Strategic Sourcing technology solutions within DoD EXAMPLES OF STRATEGIC SOURCING TECHNOLOGY IMPLEMENTATIONS WITHIN DOD

Strategic Sourcing Tools and Implementation Feasibility Analysis