Circuit Cost Savings Across 30 Sites

$2.7 million annual savings while increasing IT capability

CHALLENGE: Defense Logistics Agency (DLA) circuit costs were increasing exponentially each year. DLA needed to reduce their commercial access costs and Defense Information Systems Network (DISN) Subscription Services (DSS) costs, while maintaining increasing and constantly changing business requirements. Sites are provisioned added and discontinued on a near constant basis.

SOLUTION: NES’ detailed understanding of cost apportionment at the Office of the Secretary of Defense (OSD) rate management level provided the insights to identify improvement opportunities to the DLA Enterprise Telecommunications Network (ETN) engineering team. The NES recommended changes resulted in simple service and process adjustments to improve IT operations and reduce costs with little or no investment. NES insights came from years of participation in the DISN Customer Forum (DCF), the Customer Validation Working Group (CVWG), and the DISN Rates Management Council (DRMC). NES understood how DLA’s DISN Subscription Services were negotiated and how future changes will affect DLA’s annual DSS payment.

RESULT: During the past five years that the DSS has been in place, NES insights and recommendations have collectively worked to reduce DLA’s share allocation from 74 to 58 shares ($11 million to $8.3 million), a savings of approximately $2.7 million annually. During this same period, DLA’s bandwidth on the DISN has more than doubled. We were able to decrease DLA’s costs while increasing their capability. Through NES work with DISA, DLA realized a cost saving of approximately $4.8M in DSS costs for FY12.