A nalytical S ervices, I nc. 689 Discovery Drive Suite 300 Huntsville, Alabama 35806

1. Analytical Services, Inc. Your Advantage. And Then Some. CMMI Pilot Program Review For Mr. Bill Craig & Mrs. Jackie Langhout Analytical Services, Inc. 689 Discovery Drive Suite 300 Huntsville, Alabama 35806 Voice: (256) 890-0083 Fax: (256) 890-0242 e-mail: asi@asi-hsv.com www.asi-hsv.com

2. Agenda • Introduction of Team Members • ASI Overview • CMMI Pilot Project Highlights • Benefits from Pilot • Benefits from CMMI Implementation • Path Forward for ASI – Pilot and Beyond • SED Feedback and Plans

3. 325 257 23.8 200 18.0 13.8 115 80 8.0 7.3 65 4.7 26 2.2 16 1.1 12 0.7 Company Overview • Management and Technical Services Company • Incorporated in 1992, 8(a) Status 1995-2004 • Hispanic, Woman-Owned, Small Disadvantaged Business • ISO 9001:2000 Registered • Top Secret Facility 279 325 Employee Growth 1995 - 2003 Revenue Growth 1995 – 2003 ($M) 95 96 97 98 99 00 01 02 03 95 96 97 98 99 00 01 02 03

4. Company Philosophy “Customer satisfaction is only the beginning of our business relationships. The difference between average and top-notch is in three words… and then some. The points of our three-pronged logo represent our customers, employees and community. We are poised to face the future…and then some.”

5. National Presence Gunter AFB, AL Maxwell AFB, AL Redstone Arsenal, AL Little Rock, AR Denver, CO Washington, DC Ft. Benning, GA Moody AFB, GA Ft. Campbell, KY Ft. Bragg, NC Omaha, NE Ft. Monmouth, NJ Columbus, OH Lewisville, TX Ft. Eustis, VA Eau Galle, WI Puerto Rico • Headquarters – Huntsville, Alabama • 3 Offices: Montgomery, AL, Vicksburg, MS, & Shalimar, FL • Employee Presence at Locations Across Southeastern United States & Puerto Rico Corporate headquarters Field office locations Employee presence

6. Core Expertise Management and Technical Services Professional and Organizational Development Engineering and Scientific Analysis Information Technology Systems Engineering/ Program Management • Computer Facilities • Network Management • Data Communications • HW/SW Integration • Information Security • Web Services • Help Desk Operations • Multimedia Support • Custom Application Development • Enterprise IT Policy & Planning • Environmental Sciences • Environmental Eng. • Modeling & Simulation • Test Planning/Execution • Data Collection/Reduction • Expert Analysis • Technology Assessment • Software Engineering • SW IV&V • Research & Development • Product Development • Technical Writing • Requirements Analysis • Cost Analysis • Schedule Analysis • Risk Assessment • Conference Management • Roadmap Development • Program Documentation • IPPD/IPT Establishment • Manpower Planning • Earned Value Analysis • Logistics Support • Facilitation • Strategic Planning • Training • Needs Analysis • Courseware Design • Automation Training • Web Design & Content Management • Strategic Communications • Market Research & Analysis • Creative/Technical Writing • Document Control • Business Process Reengineering • Change Management

7. Customer Base U.S. Army • Aviation and Missile Command (AMCOM) • Communications - Electronics Command (CECOM) • U.S. Total Army Personnel Command (PERSCOM) • PEO Air, Space and Missile Defense (PEO ASMD) • PEO Combat Support and Combat Service Support (PEO CS & CSS) • Corps of Engineers, Engineering Research and Development Center (ERDC) • PEO Simulation, Training, and Instrumentation (PEO STRI) • PEO Tactical Missiles • PEO Enterprise Information Systems (PEO EIS) U.S. Air Force • AF HQ Initiatives Office & Battle Labs • Air Combat Command (ACC) • Standard Systems Group (SSG) • Air Armament Center (AAC) Missile Defense Agency (MDA) • Ground-based Midcourse Defense (GMD) Program Defense Information Systems Agency (DISA) Defense Finance and Accounting Service (DFAS) Office of the Secretary of Defense (OSD) National Aeronautics Space Administration (NASA) • Marshall Space Flight Center (MSFC)

8. ASI Business Base O2K Technical - SCRS • Actual O2K Revenue through 2003: $ 6,791,399 • Funded O2K Revenue for 2004/5: $ 4,246,943 • Total ASI-O2K SCRS Revenues: $11,038,342 • Current customers supported through SED: • PM TMDE (PEO CS&CSS) – Engineering, Logistics, Programmatic, Software, Computer Based Training Products, Conference Support • US Army TMDE Activity (AMCOM) – Tech pubs, Computer Based Training, Customized Software Development • PM Close Combat Weapons Systems (PEO TM) – Customized Software Development • SAMD (AMCOM) – Customized Software Development and Maintenance

9. State of ASI Quality Management System • Achieved ISO 9001-2000 Registration in April 2003 – Audit by NQA, with follow up audit in October 2003 • NQA Surveillance Audit to be conducted in 1 April 2004 • First annual QMS documentation review underway • Improvements and updates to QMS processes completed • Quality commitment from employees • Moving from “ISO” to Quality Management System mentality • Exploring QMS improvement tools through CMMI pilot program The QMS is considered our way of doing business, not an ISO issue.

10. Reactive vs. Proactive Approach Typically after the initial rush of a QMS certification, enthusiasm and activity diminishes only to regain momentum around scheduled audits. This is a reactive QMS. Continuous commitment by upper level management to the QMS is a proactive approach. This is the ASI approach.

11. ASI’s Proactive Approach • Commitment and responsiveness from top-level management sets the standard • Following through on commitments and actions • Recognizing those within the company that actively support and work to improve the QMS • Enhancing/expanding the QMS as business grows • Investing in system improvements

12. ASI CMMI PILOTStatus Briefing

13. Activities To Date (1 of 6) Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants • CMMI Overview Tutorial that covered Process Areas of Maturity Levels 2 & 3 and focused upon the typical business impacts related to the area • Business Analysis to capture high impact/high need Process Areas for ASI • Had simple “thumbs-up” voting technique to determine level of impact/need • Also polled participates for the level of impact (H M L) • The high impact areas were obvious and it was easy to select the Process Areas to focus on for the pilot

14. Activities To Date (2 of 6) Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants • 3 Process Areas were selected by the joint SED/SEI/ASI team : • Project Planning • Requirements Management • Measurement & Analysis • Decided to “informally” work on Organizational Process Focus

15. Activities To Date (3 of 6) Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants • Workshop to analyze the process areas selected - the concepts/methods used for the SCAMPI B/Cdevelopment project were adapted for ASI: • Current ASI practices documented and mapped to relevant CMMI model components • Interpretation of model intent for ASI made and gaps documented • Developed Action Plan for ASI Team to address gaps found

16. Activities To Date (4 of 6) Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants • ASI Team Members are in various stages of implementing their Action Plan • ASI Team Members developed Project-Specific Process Descriptions • Project Planning • Requirements Management • Measurement and Analysis • ASI Quality Facilitator evaluating impact at the organizational level and relationship to QSM

17. Activities To Date (5 of 6) Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants • Monthly Face-to-Face sessions to status progress and get help/guidance from Consultants • Tutorial on writing process guidance documentation • Tutorial on business-oriented metrics • Tutorial on Process Capturing Techniques • Tutorial on CMMI Institutionalization Concepts • Feedback on Action Plans and Process Descriptions

18. Activities to Date (6 of 6) Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants • Weekly teleconferences to keep the project progressing • Review Action Items • Provide feedback on recently reviewed material • Provide guidance on any issues/problems encountered

19. Planned Activities (1 of 4) Execute New Processes Appraise Pilot Projects Share Lessons Learned Publish Pilot Results • Baseline Process Descriptions (PP, RM, M&A) • Execute processes in Pilot Projects • Collect Metrics • Gather lessons learned (including benefits) and process improvements • Update processes to reflect process improvements • Evaluate processes for standardization at the Organizational Level

20. Planned Activities (2 of 4) Execute New Processes Appraise Pilot Projects Share Lessons Learned Publish Pilot Results • Prepare for Appraisal • Define Scope (Requirements Management, Project Planning, Measurement and Analysis, and Organizational Process Focus are candidate process areas) • Have regular preparation sessions with Lead Appraiser • Gather objective evidence to support appraisal activities • Set expectations • Conduct Appraisal • ASI to provide one person for the Appraisal Team • Team Training and Readiness Review (tentative: 04/27-04/30) • Appraisal (tentative: 05/24-05/27)

21. Planned Activities (3 of 4) Execute New Processes Appraise Pilot Projects Share Lessons Learned Publish Pilot Results • ASI invited to present at SE2 Conference • Half-day tutorial – March 29 • Sharing materials and activities conducted with ASI and Cirrus with interested members of HSV small business community • No ASI-specific information will be provided without ASI permission • Opportunity for ASI to share what it deems appropriate • CMMI Panel – March 31 • Provide Small Business Perspective for CMMI Implementation • Share Lessons Learned • Possible Interviews with Huntsville Times for pre-conference articles

22. Planned Activities (4 of 4) Execute New Processes Appraise Pilot Projects Brief SED Share Lessons Learned Publish Pilot Results • An Interpretive Guide for Using CMMI in Small Businesses • Focusing on general lessons learned/recommendations gathered during implementation of the various processes at ASI/Cirrus • Materials used (i.e., tutorials, pilot processes) to be included as jumpstart for other small businesses • Case Study: ASI • Published jointly among ASI, SED, SEI • All three organizations agree on content • Case Study: Cirrus • Same conditions as for Cirrus case study

23. Benefits from Pilot

24. Benefits from Participation in Pilot Project • Training on CMMI/Process Improvement – 4 trained in 3 day course, approximately 6 more trained during pilot project meetings. • Gained insight into different approaches to process improvement • Learned several new techniques for analyzing and developing processes. • Access to expertise of SEI/Carnegie Mellon & Consultants • New interest in improving processes in QMS • ASI has gained understanding of what it takes to implement CMMI Process Areas and how to effectively approach implementation • ASI will get more visibility in the community as a company that pursues and invests in quality

25. Benefits from Participation in Pilot Project (Continued) • The pilot project has widened the ASI Team’s thoughts toward process design and improvement • ASI Team Members will now have insight, skills, and initiative to develop new ideas into new practices, with confidence • The fear of change has been released from those involved • There seems to be a renewed sense of interest and understanding towards process automation • CMMI has provided a best practice model to develop process and procedures needed in ASI QMS. Pilot project has provided some confidence that we are doing the right things.

26. Benefits from Participation in Pilot Project (Continued) • “Bottoms-up” encouraged by CMMI structure has made it easier to develop a difficult procedure. Expect expansion to other programs to work well. • The Pilot provided the ASI Team with tools an techniques that will make implementation of improvements more cost-effective • ASI staff has gained understanding of how a bottom-up approach can be used to improve processes in the QMS • ASI has started to use best practices to respond to new requirements (Subcontractor Agreement Management is an example) • ASI will gain CMMI appraisal experience and be counted as one of the few that have gone through an “official” appraisal

27. Benefits from Participation in Pilot Project (Continued) • Identifying the gaps in all three process areas has helped in current project tasks • The SED/SEI Team added significant value to all the activities : Overview Training, Business Analysis, Gap Analysis, Action Plan Definition • Most Challenging so far: Addressing our issues of diverse organization with the technical solution, project planning and execution processes • The SEI/SED team provided at least an order of magnitude reduction in time to do the activities

28. Benefits from CMMI Implementation

29. Realized and Expected Benefits to ASI (1 of 7) • CMMI Implementation has significantly improved ability to communicate status of the project • Use of CMMI-recommended practices has reduced “lottery-sensitivity” on the project • Much of what was only in project manager’s head is now accessible to other team members • CMMI Implementation has positively affected the way project is organized • Requirements Management Process Description developed during the pilot works for this project and should tailor easily to other “service” projects • Will fully execute and document entire process with recently received major requirements changes • “There is no turning back now. I am hooked!” – Patty P, project manager Patty…

30. Realized and Expected Benefits to ASI (2 of 7) Larry… • Documentation created as a result of using CMMI: • Fills in missing gaps in ISO documentation • Is a natural follow onto ISO and meets ISO goals for continual improvement • Communicates program roles to all stakeholders • Provides (for the first time!) step-by-step instructions for new employees (especially PMs and TLs) • Provides “bragging rights” in proposals and presentations • Supports greater (and needed!) degree of granularity in organizational performance measurement • Helps to identify trouble spots (and strengths) in organizational practices • Provides a consistent approach for implementing ASI processes and procedures

31. Realized and Expected Benefits to ASI (3 of 7) • Experience gathered in communication of practices has proven to be of great benefit in clarifying expectations among team members • Through CMMI Implementation, the ASI Team has gained knowledge of existing ASI systems and practices that were not previously clear • After the pilot is complete, ASI will have the knowledge and experience necessary to implement process improvement more efficiently • Software project is ahead of schedule because of using project planning and Requirements management process areas. • Significantly reduced training time for new employee – gave her processes to read before getting together to answer questions • “I see a future that includes many benefits currently unrealized”—Jim Hendrix, technical lead? Jimi…

32. Realized and Expected Benefits to ASI (4 of 7) • CMMI specifically addresses customer related processes, many of which are very relevant to the services we provide. • Integrated view of processes, through CMMI Process Area interactions, has significantly improved our ability to define more effective processes. • “CMMI has helped me envision a path to “take the company to the next level” “—Jack Conway, VP of ???? • Develop consistent, lasting capabilities that support our business objectives and go beyond having good people • Increase competitive advantage through specific capabilities, documented as ASI processes, that provide solutions for customers • Move away from being totally people dependent to a capability-based organization with proven processes that deliver desired results to customers. Jack…

33. Realized and Expected Benefits to ASI (5 of 7) • The CMMI can be easily incorporated into ASI’s QMS • The bottom-up approach encouraged by the CMMI, coupled with ASI’s QMS, will connect those parts of the system which can benefit from specific process improvements • Incorporating CMMI practices into ASI’s QMS will give direction to our improvement goals and, in turn, increase customer satisfaction • “CMMI will strengthen ASI’s QMS and support company objectives as we grow” – Beth Smith, QMS Manager • If we incorporate strategic planning (both at he project and corporate levels) and measurable goals while streamlining our processes to suit our particular activities, our QMS would benefit Beth…

34. Realized and Expected Benefits to ASI (6 of 7) • Very pleased with the progress on implementing CMMI • Appreciate the hard work and the progress from the teams • Most excited about the value you have found in the process. • “Buy in” of those involved • Appreciate the investment of SED in small business development • Probably would not have been able to afford CMMI implementation without expertise assistance provided by the pilot Irma…

35. Realized and Expected Benefits to ASI (7 of 7) Your SEI/SED team see the following as key realized or expected benefits … • ASI can use CMMI implementation as risk avoidance for ISO audit findings looking for evidence of continual improvement • CMMI is providing a common point of reference for working towards standardizing management approaches across different tasks • Use of CMMI-referenced process descriptions has already started to reduce training effort for new staff • CMMI usage has added insight to development of a standard work authorization process • CMMI focus on measurement has added insight into risks related to staffing variances • ASI will achieve higher visibility of relationship of processes to revenue, through quarterly reviews

36. Path Forward for ASI – Pilot and Beyond

37. Path Ahead • Continuous improvement of QMS • Streamlined processes to facilitate QMS efficiency • Intranet consistency and stabilization to promote effective communication of QMS information • Response mechanisms in place to improve PCAR (Problem/Corrective Action Records?) process • Automated notification to QMS documentation changes • Integrate offsite locations into the QMS by end-of-year via structured training schedule

38. Path Ahead • Integrate current CMMI implementation into QMS • CMMI Maturity Level appraisal may not be planned for the immediate future; however, the practices will be integrated into our existing QMS • The areas of Project Planning, Requirements Management, and Measurement and Analysis clearly support our QMS • These areas will be integrated as an extension of our current QMS through Work Instructions and/or an additional COP • CMMI will not take the place of or compete with ISO 9000-2001, rather will enhance our QMS

39. Path Ahead • Continue implementing CMMI?? process areas • Appraisal of additional CMMI?? process areas • Attain Maturity??? levels of CMMI Implementation

40. Concerns • Concerns of CMMI Implementation???: • Affordability—particularly appraisals • Schedule to attain goals • Customer motivation • Customer requirements

41. Feedback Mr. Craig will provide feedback on Pilot Project implementation and future plans for Small Business CMMI Project.