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Sra slide show austin powder co.

  1. 1. STRATEGIC REVIEW and ANALYSIS:<br />Austin Powder Company<br />Thursday, August 25, 2011<br />1<br />
  2. 2. SRAStructure<br />The Benchmark and Recommendations<br /><ul><li> Services Compilation
  3. 3. Management Overview of Services
  4. 4. Hardware Documentation
  5. 5. Master Contract Listing
  6. 6. Total Budgetary Review</li></ul>2<br />
  7. 7. 3<br />8<br />
  8. 8. 4<br />4<br />
  9. 9. 5<br />5<br />
  10. 10. 6<br />6<br />
  11. 11. 7<br />7<br />
  12. 12. 8<br />9<br />
  13. 13. 9<br />10<br />
  14. 14. 10<br />11<br />POSSIBLE CANDIDATE TO REMOVE 1 LINE @$44.07R1<br />
  15. 15. 11<br />12<br />
  16. 16. 12<br />13<br />
  17. 17. 13<br />14<br />
  18. 18. 14<br />15<br />
  19. 19. 15<br />16<br />
  20. 20. 16<br />17<br />
  21. 21. 17<br />18<br />
  22. 22. 18<br />19<br />
  23. 23. 19<br />20<br />
  24. 24. 20<br />21<br />
  25. 25. 22<br />
  26. 26. 110<br /> Management Overview:<br />The following section provides a complete overview of the communications deployed at Austin Powder Company. This is intended for management personnel to gain a sense of the overall products in use and the associated costs. <br />22<br />
  27. 27. Local Services- <br />23<br />110<br />Currently DCT Telecom provides the main Local PRI to Austin Powder Company headquarters for Local Service in Cleveland Ohio. There is also one Local PRI in Midland Texas with AT&T, as well a newly installed Local PRI at the Red Diamond facility in McArthur Ohio via Time Warner Business Class. This newly installed Time Warner PRI at Red Diamond has not yet billed prior to delivery of this report. In addition to those three Local PRI’s; AT&T, Frontier and Verizon are the three main carriers who provide the lion’s share of local lines to Austin’s major sites, along with many ancillary carriers to augment Austin Powder Company’s more rural locations across the US and Canada. The following table depicts the monthly costs for current local services:<br />
  28. 28. Local Services- Continued<br />24<br />110-111<br />
  29. 29. Local Services- Continued<br />25<br />111<br />
  30. 30. Local Services- Continued<br />26<br />111<br />
  31. 31. Local Services- Continued<br />27<br />111-112<br />
  32. 32. Local Services- Continued<br />28<br />112<br />
  33. 33. Local Services- Continued<br />29<br />112-113<br />
  34. 34. Local Services- Continued<br />30<br />113<br />
  35. 35. Local Services- Continued<br />31<br />114<br />
  36. 36. Local Services- Continued<br />32<br />114-115<br />
  37. 37. Local Services- Continued<br />33<br />115<br />
  38. 38. Local Services- Continued<br />34<br />115-116<br />
  39. 39. Local Services- Continued<br />35<br />116<br />
  40. 40. Local Services- Continued<br />36<br />116-117<br />
  41. 41. Local Services- Continued<br />37<br />117<br />
  42. 42. Local Services- Continued<br />38<br />117-118<br />
  43. 43. Local Services- Continued<br />39<br />118<br />
  44. 44. Local Services- Continued<br />40<br />118-119<br />
  45. 45. Local Services- Continued<br />41<br />119<br />
  46. 46. Local Services- Continued<br />42<br />119-120<br />
  47. 47. Local Services- Continued<br />43<br />120<br />Notables Items on Local Service- <br />Cramming and Wire Maintenance fees are below. The following table outlines these charges previously approved per Austin to be removed:<br />
  48. 48. Local Services- Continued<br />44<br />120-121<br />
  49. 49. Local Services- Continued<br />45<br />121<br />
  50. 50. Local Services- Continued<br />46<br />121-122<br />Corrected<br />
  51. 51. 47<br />Local Services- Continued<br />122<br />Notables Items on Local Service Continued- <br /><ul><li>There were fifty five lines that reflected RNA (Ring No Answer) during Test Call phase of reporting equaling a total of $1,782.82 per month.</li></ul>Geostar <br />Recommendation R2:<br />Internal Review and remove <br /><ul><li>The Local portion of the DCT contract expired in 1/25/2011.</li></ul>Geostar bid this PRI service with Time Warner Cable with the following results (other carriers similar in price but due to TWC offer to bring service in via fiber* for other possible benefits it is chosen here). Other bidders included XO Communications, Paetec, and First Communications. Their bid documents are located in section 8 of the appendix material provided.<br />DCT current costs- $729.83 (includes circuit, usage, numbers, caller ID costs)<br />TWC offer - $433.00 monthly<br />Savings potential - $296.83 monthly<br />*TWC is offering a fiber run into the main headquarters for this PRI and a main Internet connection. Internet connection will be discussed later in this report. <br />Geostar <br />Rec R3:<br />Change <br />Carrier <br />
  52. 52. 48<br />Local Services- Continued<br />122-123<br />Notables Items on Local Service Continued- <br /><ul><li>Charges were assessed for publishing some lines for “Directory Listings”, with TELUS Communications in Calgary, AB accounting for the lion’s share of this monthly cost:
  53. 53. TELUS account# (212194477 1) in Calgary bills $12.00 per on all 9 lines on this account in order to publish them in the phone directory- totaling $108.00per month
  54. 54. Frontier account# (304-877-6682) in Mt. Hope, WV- $0.92</li></ul>Geostar Rec R4:<br />Remove all or partial<br />Geostar Rec R5:<br />Remove <br /><ul><li>Non-Published Listings fees were assessed on 18 lines throughout the Austin network. Wherein, the providers assessed a fee in order to not publish certain numbers in the Directory Listings- totaling $39.68per month</li></li></ul><li>49<br />Local Services- Continued<br />123<br />Notables Items on Local Service Continued- <br /><ul><li>Austin Powder had numerous lines use Directory Assistance (aka *69) during the sample month of billing totaling- $68.92of usage during this one month – </li></ul>“This could be blocked in the phone systems but it may cost more to set up than the savings warrant.”<br /><ul><li> Many of the Local bills contained some residual Long Distance usage charges and fees on them, totaling $990.47 for the sample month. </li></ul>Domestic Local Invoices contained $852.56 in residual LD<br />Canadian Local Invoices contained $137.91 in residual LD<br />“A recommendation on this matter will be listed in the long distance portion of this report”<br /><ul><li>Two lines in East Camden Arkansas (870-574-0580 & 0581) are assessed a monthly charge for “Unlimited Local Toll Calling” aka “Local Plus” service. This service costs Austin Powder Co $99.95 per line- totaling $199.90per month.</li></ul>Geostar Rec R6:<br />Remove and monitor<br />
  55. 55. 50<br />Local Services- Continued<br />123-124<br />Notables Items on Local Service Continued- <br /><ul><li>During Traffic Study analysis, we found that the two line hunt group at Gonzales, TX (830-672-9545 & 830-672-9546) that reflected “zero usage” during the sample week that was studied. The total cost for these two Hunt lines per month is $80.70. However, during test call phase of this report, we did reach Richard Brown when we called 830-672-9545.</li></ul>Geostar Rec R7:<br />Verify Need<br /><ul><li>During Test Call phase of this report we spoke with Robin (at the Sweet Home Arkansas site) who indicated line 501-490-0010 at their location should be removed. She indicated that it is an old line out in the garage (aka “garage line”), but there is no longer a mechanic there. Therefore, there is never anyone out in the garage. Monthly cost for this line is $48.00.</li></ul>Geostar Rec R8:<br />Remove<br /><ul><li>During Test Call phase of this report it was found that several lines actually ring into companies other than Austin Powder Co altogether:
  56. 56. Line 770-304-0883, which bills on AT&T account# (770-304-0808 (243 0623)) at the Madras site in Newnan, GA rings into “AMS Locksmith Co.” dispatch center. Monthly cost for this line is $67.33
  57. 57. Foothills Telephone account# (MAGBUS-154091) at the Manton site in Martin, KY contains two lines only. Both of those lines ring into other businesses. Line 606-884-5166 actually rings into “Frazier Creek Mining”, while 606-884-5167 rings into “Appalachian Security”. Monthly cost for these two lines combined totals $38.80</li></ul>Geostar Rec R9:<br />Remove if no affiliation<br />
  58. 58. 51<br />Local Services- Continued<br />124<br />Notables Items on Local Service Continued- <br /><ul><li>During Test Call phase it was found that line 541-673-0663 on Qwest account# 541-672-6661 494B at the Roseburg, OR site (which is identified as the third line in a three line Hunt Group) actually rings into a residential voicemail for someone named “Susie and Barry”. We reached out to Cindy at the Roseburg site to see if either Susie or Barry is an employee at that location. Cindy stated that no one is working there by either of those two names. Monthly cost for this line is $26.00</li></ul>Geostar Rec R10:<br />Remove<br />Geostar Rec R11:<br />Remove and seek credit<br /><ul><li>During Test Call phase it was discovered that line 615-352-3998 at the Pegram, TN location gives out a “disconnected” recording. Monthly cost for this line is $59.60
  59. 59. During Test Call phase it was learned that three lines (956-831-2313, 7760, and 7792) at Austin Star Detonator at the Brownsville, TX site are charged for a feature called “Local Plus/ aka Extended Local Calling Area”. This feature essentially makes in state calls Local. Monthly cost per line is $140.00. Total for all three lines combined carrying this feature is $420.00</li></ul>Geostar Rec R12:<br />Remove<br />
  60. 60. 52<br />Local Services- Continued<br />124<br />Notables Items on Local Service Continued- <br />Twelve Toll Free numbers are billing on these Local services invoices at $10.00each per month or $120.00 monthly – plus usage. <br /><ul><li>*Nine of those are at the “Joanna” site in Clinton, SC. This location only has three local lines. Each of those local lines has three toll free numbers pointing to them. We placed test calls with Suzie, who’s the Office Manager at that location. She indicated that she has no idea why they would need that many. She states that she is the only person who works inside the actual office at that location. The toll free numbers and test call results are below:</li></ul>Geostar Rec R13:<br />Remove charges and place with chosen LD Carrier<br /><ul><li>877-938-0512 – RTN - 864-938-0512 (Reached Fax/Modem Tone) (Usage= $0.49)
  61. 61. 866-938-0512 – RTN - 864-938-0512 (Reached Fax/Modem Tone) (Usage= $4.41)
  62. 62. 866-938-1086 – RTN - 864-938-0512 (Reached Fax/Modem Tone) (Usage= $0)
  63. 63. 866-938-1087 – RTN - 864-938-0555 (Reached Susie) (Usage= $0)
  64. 64. 877-938-0555 – RTN - 864-938-0555 (Reached Susie) (Usage= $0)
  65. 65. 866-938-0555 – RTN - 864-938-0555 (Reached Susie) (Usage= $0)
  66. 66. 866-938-1084 – RTN - 864-938-1001 (Reached Susie) (Usage= $0)
  67. 67. 866-938-1085 – RTN - 864-938-1001 (Reached Susie) (Usage= $0)
  68. 68. 866-938-1001 – RTN - 864-938-1001 (Reached Susie) (Usage= $1.38)</li></li></ul><li>53<br />Local Services- Continued<br />124-125<br />Notables Items on Local Service Continued- <br /><ul><li> The Midland Texas location is being charged by AT&T (via account#: 432-684-5123 (044 7)) for what AT&T calls an “old calling card”. AT&T indicated these haven’t been sold in years. We reached out to James who is the Location Manager in Midland, and he says there are no calling cards used by anyone at his location that he is aware of. Monthly cost for this calling card is $6.45</li></ul>Geostar Rec R14:<br />Remove<br /><ul><li>It is noted that the location in Seguin Texas (“New Braunfels”) has a charge on their AT&T account# (830-606-7774 (688 9)) for AT&T messaging reportedly not in use. This monthly charge totals $21.30</li></ul>Geostar Rec R15:<br />Remove<br /><ul><li> During Test Call phase of this report it was found that line 276-328-5625 out pulses the following error recording: “The Number You Have Dialed Is Not Available Right Now.” Monthly cost for this line is $16.20. Also – line 985-229-2257 drops all calls after one ring. Total cost per month is$53.33</li></ul>Geostar Rec R16:<br />Remove/seek credit<br /><ul><li> During Test Call phase Geostar found “Call Rejection” on line 336-859-5127 in Denton, NC at $5.99per month. Call rejection allows the user to block up to 12 numbers from being able to ring their location. </li></ul>Geostar Rec R17:<br />Remove if unnecessary<br />
  69. 69. 54<br />Local Services- Continued<br />125<br />Notables Items on Local Service Continued- <br /><ul><li> During Test Call phase of this report we found line 615-352-3998 states “This number has been disconnected”, when dialed -$59.60 per month.</li></ul>Geostar Rec R18:<br />Remove/seek credit<br /><ul><li>During Test Call phase of this report we located several lines that ring “Continual Busies”. They are as follows:
  70. 70. 859-375-2424 = $41.25per month
  71. 71. 828-645-6885 = $49.99per month
  72. 72. 276-328-2697 & 5645 = $83.52</li></ul>*This equals a combined total of $174.76per month on busied lines*<br />Geostar Rec R19:<br />Remove<br />**We were unable to acquire the local invoices for the site in Marshall, TX as well as the site in Sudbury, ON. Multiple voicemail messages were left, as well as reaching out to Austin Powders billing team. **<br /> ** Geostar Consulting was provided a list of all Austin Powder locations. When scouring through the billing, it was determined that there are two local invoices for two separate sites in Massachusetts that Austin pays for monthly. They are as follows: <br />Account #: 978-744-6666 (145 007 7) in Salem, MA at $27.92<br />Account #: 978-448-3721 (860 007 6) in Shirley, MA at $23.12<br />
  73. 73. 55<br />Local Services- Continued<br />126<br />Notables Items on Local Service Continued- <br /><ul><li>Local line cost adjustments- </li></ul>Geostar Rec R20:<br />Change/Renew<br />
  74. 74. 56<br />Local Services- Continued<br />126<br />Notables Items on Local Service Continued- <br />Total possible monthly savings under this Local section could be as high as $5,377.54<br />
  75. 75. Long Distance Services-<br />57<br />127<br />DCT Communications is the main Long Distance Provider for Austin Powder Company. It does so over 2 Long Distance T1’s at Corporate Headquarters in Cleveland Ohio. Currently there is a MAC (Minimum Annual Commitment) associated with this LD account in the amount of $72,000.00. <br />There is also some old AT&T Long Distance and WATTs service from what appears to be old carry over, prior to the LD switch to DCT Communications. In addition, there are also stray Long Distance bills included here from multiple carriers. This can occur when new lines are added and not properly PIC’d to the corporate LD carrier, or this can also happen when switching to a new carrier when some lines are inadvertently omitted during the mass conversion.<br />
  76. 76. Long Distance Services Continued-<br />58<br />127<br />
  77. 77. Long Distance Services- Continued <br />59<br />127-128<br />The Minimum Annual Commitment is of great concern, as it is far too high given the current usage. In addition, Geostar projects that usage will actually decrease due to changes in information transfer and technologies.<br />Geostar bid this sector to Qwest, Fidelity, and AireSpring as they are each low cost providers of quality long distance services. The table on the following slide breaks down their associated costs for comparison: <br />
  78. 78. Long Distance Services- Continued <br />60<br />128<br />
  79. 79. Long Distance Services- Continued <br />61<br />128<br />Notables Items on Long Distance Service Continued- <br />Here, the monthly savings provided by AireSpring is not only 15%, but it also is quite flexible and competitive when considering there are no minimums required. The DCT approach is outdated and when Geostar posed the question to have it lowered to zero, DCT declined to entertain such a request.<br />Additionally, Airespring's switched traffic rate is $.0421 for outbound intrastate and .0578 inbound intrastate. This would save Austin and additional $768.00 per month if transferred. <br />Geostar Rec R21:<br />Move services to Airespring to lower costs and have no liability<br />
  80. 80. Long Distance Services- Continued <br />62<br />128-129<br />Notables Items on Long Distance Service Continued- <br /><ul><li>During the research phase of this audit, some old WATTS services were found billing. Another carry over from the old Telco days of just AT&T is the Watts long distance services the old parent company previously provided. Of course, the old parent company no longer exists and this service was discontinued as an offering as well. However, it still appears on some bills throughout the country.</li></ul>Austin has 3 lines that have been tagged to this service for years, originally set up for outbound calling only. These lines are:<br /><ul><li>740-286-1259
  81. 81. 740-286-2049
  82. 82. 740-286-2105</li></ul>Geostar Rec R22:<br />This service is in the process of being removed per Austin in a previous recommendation –<br />These three lines appear under the Red Diamond Plant location on as a separate bill (Account: 614 100-0016 670) for this product.<br />During Geostar’s research, AT&T was asked to provide usage statistics on these 3 lines under the watts product. AT&T found no such usage for the last 1 year period and noted that not many in the organization even know that this still existed and how it works. It is merely a legacy billing that should have ceased years ago. Austin is billed a monthly charge of $2,901.84 for these unused services.<br />Geostar requested a credit for these services since AT&T reported no shown usage for over 1 year. However, even though there has been no usage, AT&T denied the credit request stating that they cannot know what Austin has been using them for and there was no previous formal request to cease operations.<br />
  83. 83. Long Distance Services- Continued <br />63<br />129<br />Notables Items on Long Distance Service Continued- <br /><ul><li> Austin Powder Company has 48 Toll Free numbers billing with DCT Communications. Of those; 38 are Switched Toll Free’s (which ring to a local number), while 10 are Dedicated Toll Free’s (which ring to DNIS digits)
  84. 84. DCT only charges a flat rate of $5 per month for unlimited toll free’s on the account.
  85. 85. Additionally, Geostar have found three separate and consistent LD bills with the below referenced carriers:</li></ul>(AT&T Account: 030 040 1659 001)<br /><ul><li> This bill ranges in usage each month from $600- $1000 but the rate is at a blended $.25 per minute with some calls at $1.14 per. versus the low rates provided by DCT or other at under $.05 per minute on a switched basis. Savings would project to between $480.00 and $800.00 monthly depending upon usage if properly pointed to the correct carrier.</li></ul>Geostar Rec R23:<br />Move traffic to the proper carrier, either DCT or newly selected, to achieve savings and eliminate unnecessary billing <br />
  86. 86. Long Distance Services- Continued <br />64<br />129<br />Notables Items on Long Distance Service Continued- <br />Geostar Rec R23:<br />Move traffic to the proper carrier, either DCT or newly selected, to achieve savings and eliminate unnecessary billing <br /><ul><li> (AT& T Account: 058 021 8055 001)</li></ul> This consistently bills $54.70and is for LD only on five lines at the Northampton, PA location<br />Geostar Rec R23:<br />Move traffic to the proper carrier, either DCT or newly selected, to achieve savings and eliminate unnecessary billing <br /><ul><li> (MCI Account: 3N457061)</li></ul> This consistently bills$25.29and is for LD fees on one line (740-596-3914) at the Red Diamond facility. *During test call phase of report, this line is one of the Business Lines reflecting a RNA condition.<br />These three types of standalone LD bills were usually created as an add-on in the old AT&T days when someone from the organization would call and say; “we need long distance on x lines” etc. Typically a whole new bill would be created versus assigning it to the often lower rated master account. Then, when Austin converted to DCT over the years, this stray bill would go unnoticed in the line conversion and simply run on at a retail plus rate since there is no master agreement to stop the rates from increasing.<br />
  87. 87. Long Distance Services- Continued <br />65<br />130<br />Notables Items on Long Distance Service Continued- <br /><ul><li>Also found were some standalone Toll Free service accounts:
  88. 88. (AT&T Account: 131 011 8341 692) for 800-458-6144, which rings to (740-596-5286) at the Red Diamond facility in McArthur, OH. Monthly cost during sample month was $38.55</li></ul>Geostar Rec R24:<br />Eliminate and move to proper carrier<br /><ul><li>(MCI Account: 08690918096) for 866-708-0692, which rings to (864-938-0555) at the “Joanna” site in Clinton, SC. This site already has a seemingly abundance of Toll Free numbers. Monthly cost during sample month was $38.29</li></li></ul><li>Long Distance Services- Continued <br />66<br />130<br />Notables Items on Long Distance Service Continued- <br /><ul><li> All the lines at the Ketchikan Alaska site are billing Long Distance on GCI, a Long Distance regional provider common in that area of the country. This bill ranges in usage from $75.00 to $100.00 per month, with a rate of $.14 per minute, versus the lower rates provided by DCT or other at under $.05 per minute. Properly utilized, savings would be between $48.00 - $64.00 monthly. </li></ul>Geostar Rec R25:<br />Move to proper carrier<br /><ul><li> There was a “WATS Toll Free Connection” charge on Local account (304-877-6682 (100197-4)) in Mt. Hope, WV. Upon further investigation, this service was not even used and was added to the account accidentally by the system when it moved over from Verizon. Geostar had this feature cancelled to eliminate the $4.95monthly charge. Frontier also credited the account $44.57for the error. </li></ul>Corrected<br />
  89. 89. Long Distance Services- Continued <br />67<br />130<br />Notables Items on Long Distance Service Continued- <br /><ul><li> There was a teleconferencing account (567325) for the Sudbury Ontario site. Total bill during sample month was $39.73, at a rate of $0.29, as compared to the DCT corporate rate of $0.10 or $13.70. Properly utilized, savings would be $26.03 monthly.</li></ul>Geostar Rec R26:<br />Move to proper carrier<br /><ul><li>Many of the Local bills contained some residual Long Distance usage charges and fees on them, totaling $840.49for the sample month.
  90. 90. Domestic Local Invoices contained $642.73 on 2,332 minutesin residual LD.
  91. 91. Domestic Local Invoices contained $197.76 in fees
  92. 92. Eliminate fees and reduce rates below .05 on proper carrier to save approximately $723.89 monthly.</li></ul>Geostar Rec R27:<br />Move to proper carrier at reduced rates<br />Total possible monthly savings under this section could be as high as $6,171.70<br />(Additional Tax Reductions projected to be approximately $500-$750.00 monthly)<br />
  93. 93. 68<br />Cellular / Wireless Services –<br />131<br />Austin Powder Company utilizes a combined total of seven wireless/cell providers in the USA and Canada. <br />In the United States, Austin houses the lion’s share of wireless services with Verizon Wireless. It also uses AT&T Wireless, and Alaska Wireless. (There was also a Sprint Wireless bill disclosed at the beginning of this audit. However, attempts at receiving a bill copy were denied by Jeff Britcher, as he stated there were only a few lines present and they would be “going away”.) <br />In Canada, Austin uses four providers for this service. They are TELUS Mobility, Bell Mobility, Info-Sat, and SaskTel. Below is a listing of these services by provider:<br />
  94. 94. 69<br />Cellular / Wireless Services –<br />131<br />
  95. 95. 70<br />Cellular / Wireless Services –<br />131-132<br />
  96. 96. 71<br />Cellular / Wireless Services –<br />132<br />
  97. 97. 72<br />Cellular / Wireless Services –<br />132-133<br />
  98. 98. 73<br />Cellular / Wireless Services –<br />133<br />
  99. 99. 74<br />Cellular / Wireless Services –<br />133-134<br />
  100. 100. 75<br />Cellular / Wireless Services –<br />134<br />
  101. 101. 76<br />Cellular / Wireless Services –<br />134-135<br />
  102. 102. 77<br />Cellular / Wireless Services –<br />135<br />
  103. 103. 78<br />Cellular / Wireless Services –<br />135-136<br />
  104. 104. 79<br />Cellular / Wireless Services –<br />136<br />
  105. 105. 80<br />Cellular / Wireless Services –<br />136-137<br />
  106. 106. 81<br />Cellular / Wireless Services –<br />137<br />
  107. 107. 82<br />Cellular / Wireless Services –<br />137-138<br />
  108. 108. 83<br />Cellular / Wireless Services –<br />138<br />
  109. 109. 84<br />Cellular / Wireless Services –<br />138-139<br />
  110. 110. 85<br />Cellular / Wireless Services –<br />139<br />
  111. 111. 86<br />Cellular / Wireless Services –<br />139-140<br />
  112. 112. 87<br />Cellular / Wireless Services –<br />140<br />
  113. 113. 88<br />Cellular / Wireless Services –<br />140-141<br />
  114. 114. 89<br />Cellular / Wireless Services –<br />141<br />
  115. 115. 90<br />Cellular / Wireless Services –<br />141-142<br />
  116. 116. 91<br />Cellular / Wireless Services –<br />142<br />
  117. 117. 92<br />Cellular / Wireless Services –<br />142-143<br />
  118. 118. 93<br />Cellular / Wireless Services –<br />143<br />
  119. 119. 94<br />Cellular / Wireless Services –<br />143-144<br />
  120. 120. 95<br />Cellular / Wireless Services –<br />144<br />
  121. 121. 96<br />Cellular / Wireless Services –<br />144-145<br />
  122. 122. 97<br />Cellular / Wireless Services –<br />145<br />
  123. 123. 98<br />Cellular / Wireless Services –<br />145-146<br />
  124. 124. 99<br />Cellular / Wireless Services –<br />146<br />
  125. 125. 100<br />Cellular / Wireless Services –<br />146-147<br />
  126. 126. 101<br />Cellular / Wireless Services –<br />147<br />
  127. 127. 102<br />Cellular / Wireless Services –<br />147-148<br />
  128. 128. 103<br />Cellular / Wireless Services –<br />148<br />
  129. 129. 104<br />Cellular / Wireless Services –<br />148-149<br />
  130. 130. 105<br />Cellular / Wireless Services –<br />149<br />
  131. 131. 106<br />Cellular / Wireless Services –<br />149-150<br />
  132. 132. 107<br />Cellular / Wireless Services –<br />150<br />
  133. 133. 108<br />Cellular / Wireless Services –<br />150-151<br />
  134. 134. 109<br />Cellular / Wireless Services –<br />151<br />
  135. 135. 110<br />Cellular / Wireless Services –<br />151-152<br />
  136. 136. 111<br />Cellular / Wireless Services –<br />152<br />
  137. 137. 112<br />Cellular / Wireless Services –<br />152-153<br />
  138. 138. 113<br />Cellular / Wireless Services –<br />153<br />
  139. 139. 114<br />Cellular / Wireless Services –<br />154<br />
  140. 140. 115<br />Cellular / Wireless Services –<br />154<br />
  141. 141. 116<br />Cellular / Wireless Services –<br />154-155<br />
  142. 142. 117<br />Cellular / Wireless Services –<br />155<br />
  143. 143. 118<br />Cellular / Wireless Services –<br />155-156<br />
  144. 144. 119<br />Cellular / Wireless Services –<br />156<br />
  145. 145. 120<br />Cellular / Wireless Services –<br />156-157<br />
  146. 146. 121<br />Cellular / Wireless Services –<br />157<br />
  147. 147. 122<br />Cellular / Wireless Services –<br />157-158<br />
  148. 148. 123<br />Cellular / Wireless Services –<br />158<br />
  149. 149. 124<br />Cellular / Wireless Services –<br />158-159<br />
  150. 150. 125<br />Cellular / Wireless Services –<br />159<br />
  151. 151. 126<br />Cellular / Wireless Services –<br />159-160<br />
  152. 152. 127<br />Cellular / Wireless Services –<br />160<br />
  153. 153. 128<br />Cellular / Wireless Services –<br />160-161<br />
  154. 154. 129<br />Cellular / Wireless Services –<br />161<br />
  155. 155. 130<br />Cellular / Wireless Services –<br />161-162<br />
  156. 156. 131<br />Cellular / Wireless Services –<br />162<br />
  157. 157. 132<br />Cellular / Wireless Services –<br />162<br />
  158. 158. 133<br />Cellular / Wireless Services –<br />163<br />
  159. 159. 134<br />Cellular / Wireless Services –<br />163<br />
  160. 160. 135<br />Cellular / Wireless Services –<br />164<br />
  161. 161. 136<br />Cellular / Wireless Services –<br />164-165<br />
  162. 162. 137<br />Cellular / Wireless Services –<br />165<br />*Totals in red highlights are lines that billed over $100 during sample month / orange billed over $200<br />
  163. 163. 138<br />Cellular / Wireless Services Continued–<br />165<br />Notable Cellular/Wireless Items<br /><ul><li>On the main Verizon Wireless account (685887507-00001) that holds 686 devices, the current three year Master Agreement term is as follows: (12/26/2008 - 12/26/2011). Each line under that “MA” has its own terms as well. </li></ul> <br /><ul><li> Of the current 686 lines, amount available to be upgraded currently - 249
  164. 164. Lines available to be upgraded at the end of this year – 317
  165. 165. That leaves only 120 lines that roll into 2012 while under contract
  166. 166. When 3yr Term expires - 566 of 686 lines will be "upgrade eligible"
  167. 167. *Typically upgrade eligibility date is 4 months prior to contract end date per Dustin Campbell at Verizon Wireless.
  168. 168. Average total cost per device = $46.77
  169. 169. The four-line Verizon Wireless account (281801965-00001) holds only three phones and one Air Card. The current three year Master Agreement term is as follows: (12/26/2008 - 12/26/2011)
  170. 170. Three of the four devices are currently out of contract
  171. 171. The device still under contract is Blackberry Bold 9650 - 216-392-4100 for David Mercedes
  172. 172. Average total cost per device = $65.18</li></li></ul><li>139<br />Cellular / Wireless Services Continued–<br />166<br />Notable Cellular/Wireless Items<br /><ul><li>AT&T Wireless account (BES02403126) contains 53 devices:
  173. 173. Receives 12% monthly discount
  174. 174. Of these 53 lines- 20 are already out of contract
  175. 175. 14 were "unable to determine"
  176. 176. Average total cost per device = $60.20</li></ul> <br /><ul><li> Alaska Wireless (ACS) account (0000349506 001) contains 3 devices:
  177. 177. No Master Agreement on file for this account
  178. 178. Average total cost per device = $87.26</li></ul> <br /><ul><li> Alaska Wireless (ACS) account (0000362803 001) contains 1 device:
  179. 179. Contractual obligation is on “per line” basis
  180. 180. Total cost during sample month for this one invoice = $151.08</li></ul> <br /><ul><li> TELUS Mobility account (00085577) contains 20 phones and 2 Air Cards:
  181. 181. Contract is on a “per line” basis
  182. 182. 11 lines have Unlimited LD Plan @ $15.00 each. Lines w/o = total of $180.30 in LD Usage. Cost to add Unlimited LD to remaining lines: $135
  183. 183. Two of the 22 devices are out of contract currently
  184. 184. Nine of these devices will be out of contract by end of 2011
  185. 185. Average total cost per device = $108.22</li></ul> <br />
  186. 186. 140<br />Cellular / Wireless Services Continued–<br />166-167<br />Notable Cellular/Wireless Items<br /><ul><li>Bell Mobility account (508222706) contains 13 cell phones:
  187. 187. Contract is on a “per line” basis
  188. 188. 5 lines are currently out of contract
  189. 189. Average total cost per device = $92.14
  190. 190. Bell Mobility account (508222706) contains 24 cell phones:
  191. 191. Contract is on a “per line” basis
  192. 192. 2 lines are currently out of contract
  193. 193. 3 lines will be out of contract by end of 2011
  194. 194. Average total cost per device =$82.49
  195. 195. INFO-SAT account (616916) contains 1 Satellite Phone on a M2M basis
  196. 196. During sample month the total amount billed was $66.99
  197. 197. SASKTEL account (01624238) contains 1 cell phone:
  198. 198. 3 year term ending 2/04/2012
  199. 199. During sample month the Airtime Usage was $120.02 via 528 minutes </li></li></ul><li>141<br />Cellular / Wireless Services Continued–<br />167<br />Notable Cellular/Wireless Items<br /><ul><li> During the research phase of this report, Geostar asked AT&T to offer a competitive bid to take over the master Verizon account. We also asked Verizon to recast its position and were put on hold by Austin staff. Below is the information regarding the AT&T recast offer (includes existing units deployed): </li></ul>Current pertinent statistics-<br />$24,378.07 - Verizon monthly <br /> Allowable Minutes – 209,102<br /> Used Minutes – 199,614<br /> Minutes Leftover = 9,488<br />$2,409.47 AT&T monthly<br /> Allowable Minutes – 24,300<br /> Used Minutes – 15,794<br /> Minutes Leftover = 8,506<br />$26,787.54 current costs to compare<br />
  200. 200. 142<br />Cellular / Wireless Services Continued–<br />167-168<br />Notable Cellular/Wireless Items<br /><ul><li> AT&T Voice offer–
  201. 201. 366 lines @$19.99 per
  202. 202. 346 lines @ $44.99 per
  203. 203. 21 lines @ $154.99 per
  204. 204. 733 units covered each with 200 messages included
  205. 205. 239,700 minutes pooled
  206. 206. $19,797.68 monthly</li></ul>Gear- <br /><ul><li>633 Samsung Rugby II’s $25.00 each purchase ($15,825.00 one-time)
  207. 207. 100 Blackberry Curve included at no cost (Torch available for $49.00)</li></ul>**Activation Bonus - $50,000.00 one time credited over 6 month period (net $34,175.00 against gear)<br /> <br /><ul><li> AT&T Data offer-
  208. 208. 100 units @$40.00 per
  209. 209. 7 units @ $60.00 per (aircard) $2,814.00 monthly</li></ul>Geostar Rec R28:<br />Leverage Verizon, or switch to AT&T<br />
  210. 210. 143<br />Cellular / Wireless Services Continued–<br />168<br />Notable Cellular/Wireless Items<br />Voice and Data total $22,611.68<br />Monthly savings versus current - $4,175.86 or 15%<br />Amortize ($34k) Bonus over 2 years = $1,423.96 = 5,599.82 or 21%!<br />Additional $2,214.18 in monthly tax reductions are projected as well. <br />*Full recommendation would be to engage Verizon at this point to view a competitive offer for comparison sake*<br />
  211. 211. 144<br />Data and Internet Services- <br />169<br />Austin Powder Company currently utilizes a 47 site MPLS Network from AT&T for its Data Network. The number of sites would be larger; however, some Austin Powder sites are in more rural or remote areas and are not supported by AT&T’s MPLS Network. In those remote areas a DIA (Direct Internet Access) T1, local DSL, or cable internet connection is procured by Austin Powder where AT&T could not provide the service on the Austin MPLS Network. <br />Once those DSL or Cable internet connections are purchased, they are tied back to HQ as a Hardware VPN connection. <br />As such, below is the graphical depiction of the current AT&T MPLS Network. <br />Below that network drawing is a detailed breakdown of the remote or stray, Hardware VPN internet sites.<br />
  212. 212. 145<br />Data and Internet Services- <br />169<br />
  213. 213. 146<br />Data and Internet Services- <br />170<br />
  214. 214. 147<br />Data and Internet Services- <br />170<br />
  215. 215. 148<br />Data and Internet Services- <br />171<br />
  216. 216. 149<br />Data and Internet Services- <br />171<br />Notable Data/Internet Items<br /><ul><li>Austin Powder Company pays AT&T roughly $1,154.22 per month in addition to its Data Network for 700 email gateways via AT&T account#: 831-000-0871 900
  217. 217. Total combined cost for these stray/Hardware VPN sites per month = $4,532.93
  218. 218. All of the stray/Hardware VPN sites are on different contractual terms than each other and the main Data Network
  219. 219. There are also “at home”, or residential internet users that Austin Powder pays for each month. These internet connections are not a part of the company’s network:
  220. 220. MetroCast (account#: 8282 30 174 0007624) at 355 Ekonk Hill Rd. Moosup, CT 06354-2215. This internet service costs Austin $105.08 per sample month
  221. 221. Windstream (account#:606-837-9586) at 93 Hwy 1601 Evarts, KY 40828.</li></ul>This internet service costs Austin $54.99 per sample month <br />
  222. 222. 150<br />Data and Internet Services- <br />171-172<br />Notable Data/Internet Items<br /><ul><li>HughesNet(account#: DSS7497787) at 11351 E. Grand Lake Rd. Presque Isle, MI 49777
  223. 223. This internet service costs Austin $64.99per sample month
  224. 224. Time Warner Business Class (account#: 0014000000Tlgsx) at 430 Powder Plant Rd. McArthur, OH 45651
  225. 225. This internet service costs Austin $64.99per sample month
  226. 226. Verizon Residential (account#: 8579009249) at 559 Nor Bath Blvd. Northampton, PA 18067
  227. 227. This internet service costs Austin $69.95per sample month
  228. 228. Qwest Residential *Doug Payne* (account#: 360-330-2371) at 3400 Travera Pl. Centralia, WA 98531
  229. 229. This internet service costs Austin $26.99per sample month
  230. 230. *Total “at home” internet cost incurred due to at home employees is roughly $386.99 per month*</li></li></ul><li>151<br />Data and Internet Services- <br />172<br />Notable Data/Internet Items<br />Main MPLS Network <br />*Bid documents are located in the supplied appendix<br />Geostar’s strategy in this category was to pressure AT&T to lower their costs by submitting vastly lower bids from their competitors. In this case, a changeover of such a large network was not deemed to be in the best interest of Austin, especially since the AT&T network performs quite well. Bidders included; Qwest, Level 3, and Fidelity, with only the Qwest offer being a valuable consideration. Figures offered by these 3 were:<br />Qwest– $31,927.00 Initial offer<br /><ul><li>$25,348.44 when notified not competitive
  231. 231. $21,233.00 final offer plus $30,000.00 bonus to cover possible duplicate costs at cutover</li></ul>Level 3 – $31,817.76 Initial offer, 3 year term<br /><ul><li>$26,383.00 final offer</li></ul>Fidelity – $27,836.00 <br />
  232. 232. 152<br />Data and Internet Services- <br />172<br />Notable Data/Internet Items<br />Once the Qwest offer was reviewed and considered viable, Geostar approached AT&T with the assistance of Austin staff to leverage a reduction in price. AT&T submitted several offers of the term of negotiations with a listing shown below: <br /><ul><li>$27,668.12 Initial offer extend 2 years at existing rates (36 mos. Offered at even higher figures)
  233. 233. $25,380.29 1st counter to competitive quotes
  234. 234. $21,361.56 Final offer includes amortized $12,000 annual bonus on 3 year term </li></ul> <br />Geostar recommends that the AT&T offer be accepted to achieve a great deal of savings and incur no major cutover and disruption of services<br />Geostar <br />Recommendation R30:<br />Accept AT&T offer <br />
  235. 235. 153<br />Data and Internet Services- <br />173<br />Notable Data/Internet Items<br />“Stray” Hardware VPN sites:<br />The following numbers reflect the bids from both AT&T AND Qwest regarding the sites that do not connect via the main MPLS network but were considered to be brought on board should the cost and speed available be desirable:<br />
  236. 236. 154<br />Data and Internet Services- <br />173<br />Notable Data/Internet Items<br />In this case, the costs were either equivalent to or higher than the current expenditures so there is no clear recommendation unless Qwest is chosen and there is a desire to ensure all are on the main MPLS network. <br />Total possible monthly savings under this section could be as high as $6,306.56<br />Additional $1,610.00 in monthly tax reductions projected as well<br />
  237. 237. 174<br />Hardware Documentation<br />Data Gear deployed:<br /><ul><li>HP Proliant DL380
  238. 238. 3COM 24 Port Switch - 3C16471
  239. 239. (2) Cisco Catalyst 24 Port Switch - 2960
  240. 240. (3) SimpleShare (Network Attached Storage) - 0507003614
  241. 241. Avocent 4 Port Switch
  242. 242. ADC KentroxTserve II (CSU)
  243. 243. "ENABLE IT" 8 Port long reach Ethernet web smart concentrator
  244. 244. Cisco 1700 Series Router
  245. 245. US Robotics Sportster 33.6 Faxmodem
  246. 246. APC Battery Back-up Smart UPS 3000XL
  247. 247. (2) APC Battery Back-Up - RS-900
  248. 248. (2) Powerware Backup Power Towers – 9170
  249. 249. Noma Battery Back-up Power System 1800
  250. 250. Verilink IAD (for VOIP) 8500 Series
  251. 251. US Robotics 56k Faxmodem - 5680603
  252. 252. (5) Cisco 4506 - 48 Port Switches
  253. 253. Cisco 1700 Series Router
  254. 254. (2) Linksys V 2.0 - 4 Port Routers
  255. 255. (4) Netgear GS 108 - 8 Port Switches
  256. 256. Dell Power Connect 2724 - 24 Port Switch
  257. 257. Netgear FS-116 - 16 Port Switch
  258. 258. Cisco 5510 Series Adaptive Security Appliance
  259. 259. Cisco 3600 Series - 2 Port Router
  260. 260. Cisco 3800 Series Router
  261. 261. Cisco 2800 Series Router
  262. 262. "Comm-Plete" Server
  263. 263. Cisco "PIX" Firewall 515E – Firewall</li></ul>155<br />
  264. 264. 156<br />175<br />Phone System Hardware<br />Austin Powder Company currently utilizes an Avaya Definity phone system for its operations at Headquarters and Red Diamond. The predominant use for this system is to support the employees at HQ and Red Diamond, which both house Avaya Definity chassis cabinets. All other Austin Powder sites maintain their own phone systems.<br />Desk Set details –<br /><ul><li>Headquarters = 88digital phone sets (Avaya Model number Avaya 6408D)
  265. 265. Red Diamond = 42 digital phone sets (Avaya Model number Avaya 6408D)</li></li></ul><li>157<br />175-176<br />Phone System Hardware<br />
  266. 266. 158<br />176<br />Phone System Hardware<br />No recommendations at this time on the two major expenditures due to length of contracts at HQ and Red Diamond. Future considerations would be to replace the Avaya and not engage in costly monthly fees for warranty etc. <br />Findlay, Pegram, Onalaska, and Northampton sites should be considered as candidates for work on a time and material basis versus paying over $7000.00 in annual maintenance on a very small phone count. <br />The pay as you go recommendation only applies to the sites with the small systems. The Avaya’s do not fall under this category due to the manner in which Avaya applies requirements and stipulations against such an approach.<br />Geostar <br />Recommendation R30:<br />Consider removing maintenance coverage in lieu of t&m<br />Total possible monthly savings under this section could be as high as $594.33<br />
  267. 267. 159<br />177<br />
  268. 268. 160<br />177-178<br />
  269. 269. MONTHLY BUDGET EXPENDITURE BENCHMARK<br />$89,318.05<br />161<br />179<br />This constitutes the end of the benchmarking portion of this report. The following sections are strategic recommendations compiled as a result of the findings and are the intellectual capital of Geostar. Such recommendations, if implemented, would be subject to fees outlined in the consulting agreement previously signed. <br />
  270. 270. PROJECTED SAVINGS IF RECOMMENDATIONS WERE IMPLEMENTED<br />162<br />180<br />Up to<br />-27%<br />
  271. 271. 163<br />PRESENTATION<br />180<br />From here, the following is a graphical representation of the process to come post delivery of the report. Regardless of what is selected, all parties now have the playbook of what is in place, its cost, the obligation, and the options/game plan to move forward to enhance the bottom line of Austin Powder and increase the productivity of its most critical players.<br />INTERNAL DISCUSSIONS<br />GATHER FUTURE BILLING PROOFTEXT<br />RECONVENE TO SET GAME PLAN<br />AUSTIN APPROVES/ GEOSTAR IMPLEMENTs<br />
  272. 272. Recommendation Results Tabulator<br />164<br />181<br />The following table outlines the possible cost savings as a result of this research. All aspects are submitted to Austin Powder for full review and consideration. Geostar recommends that Austin Powder take the results and discuss internally post the official delivery. Then, Geostar and Austin Powder can reconvene to set a course of action on all items to implement. In all cases, Austin Powder will approve prior to any action taken by Geostar on behalf of Austin Powder.<br />
  273. 273. 182<br />Sample Client Ongoing Savings Calculation-<br />*Monthly Fee Paid – is projected from the possible savings to come and valued at less than 50% of fees that will be due. This is billed on a monthly basis for cash flow purposes and to avoid large lump sums due each quarter but it is intentionally projected low to avoid the chance that the customer pays Geostar more in advance than what will actually be due.<br />165<br />
  274. 274. QUESTIONS? <br />166<br />

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