Äîêóìåíò âçÿò èç êýøà ïîèñêîâîé ìàøèíû. Àäðåñ îðèãèíàëüíîãî äîêóìåíòà : http://www.atnf.csiro.au/people/Tasso.Tzioumis/WTdraftScopingReport_130900.pdf Äàòà èçìåíåíèÿ: Tue Oct 3 06:27:24 2000 Äàòà èíäåêñèðîâàíèÿ: Fri Feb 28 04:11:48 2014 Êîäèðîâêà: Ïîèñêîâûå ñëîâà: aurora

Chartered Accountants

Office of Asset Sales and IT Outsourcing

IT Outsourcing - Group 9

Scoping Study
Draft for Discussion

13 September, 2000

Canberra Office 1st Floor 19-23 Moore Street Turner ACT 2601 G.P.O. Box 1955, Canberra ACT 2601 Tel (02) 6247 6200 Fax (02) 6257 6655

Sydney Office Level 18 109 Pitt Street Sydney NSW 2000 G.P.O. Box 3808, Sydney NSW 1044 Tel (02) 9233 2599 Fax (02) 9233 2123

c:\oasito\wt draft scoping report 11-08-2000 rlk.doc


Office of Asset Sales and IT Outsourcing

Group 9 Scoping Study

TABLE OF CONTENTS
1 2 2.1 2.2 2.3 3 EXECUTIVE SUMMARY.............................................................................................................................. 1 BACKGROUND............................................................................................................................................. 1 INTRODUCTION..........................................................................................................................................1 STUDY OBJECTIVES...................................................................................................................................2 A PPROACH..................................................................................................................................................3 THE INITIATIVE OUTSOURCING MODEL ............................................................................................ 4 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 4 4.1 4.2 The presumptive IT&T outsourcing model ............................................................................... 4 The Care and Feed Variation ..................................................................................................... 5 Further variations to the IT outsourcing models .................................................................... 7 Model 3 ­ IT infrastructure procurement and management.................................................. 7 Model 4 ­ IT infrastructure support........................................................................................... 8 Model 5 ­ Agency responsibility for IT infrastructure ........................................................... 9 Flexibilities of the IT outsourcing model ................................................................................ 11 Classification of equipment ....................................................................................................... 15

DETAILED ASSESSMEN T........................................................................................................................ 15 PARTICULAR USE TO WHICH IT&T EQUIPMENT AND SYSTEMS ARE PUT ....................................15 ISSUES RELATING TO LOCATION OF EQUIPMENT ..............................................................................19 4.2.1 Support of systems in hazardous environments ..................................................................... 19 4.2.2 Use of equipment in hostile environments .............................................................................. 20 4.2.3 Infrastructure located in remote locations............................................................................. 20 4.2.4 "Itinerant" equipment ................................................................................................................ 22 EQUIPMENT USED IN SUPPORT OF INSTRUMENTATION ..................................................................22 4.3.1 Support of machines associated with scientific instruments ............................................... 22 4.3.2 Constraints upon the use of current equipment..................................................................... 24 4.3.3 Use of specialised or specific operating systems ................................................................... 26 4.3.4 Real time data acquisition and feedback control ................................................................. 26 THE NEED FOR ACCESS TO OPERATING SYSTEMS AND HARDWARE ...............................................28 4.4.1 Software development................................................................................................................. 28 4.4.2 Frequent environment reconfiguration................................................................................... 29 4.4.3 Hardware experimentation........................................................................................................ 29 4.4.4 Infrastructure configuration modification.............................................................................. 30 4.4.5 Multiple operating system environments ................................................................................ 30 4.4.6 Network experimentation .......................................................................................................... 31 4.4.7 BOM applications support fault diagnosis ............................................................................ 32 THIRD PARTY EQUIPMENT ....................................................................................................................33 4.5.1 Accommodation of visiting staff and equipment .................................................................... 33 4.5.2 Collaborative arrangements ..................................................................................................... 34 DISCUSSION OF OTHER SIGNIFICANT EQUIPMENT AND SYSTEMS...................................................35 4.6.1 Supercomputing/processing...................................................................................................... 35 4.6.2 AARNet, LAN and WAN .............................................................................................................. 36 4.6.3 Large volume data repositories ................................................................................................ 37 4.6.4 BOM mass data store .................................................................................................................. 38 4.6.5 Australian Telescope National Facility.................................................................................. 38 OTHER RELEVANT ISSUES ......................................................................................................................41 4.7.1 Educational and other discounts ............................................................................................. 41 4.7.2 Early adopter positioning ......................................................................................................... 42 4.7.3 Service levels ................................................................................................................................ 42 4.7.4 Protection of confidential information.................................................................................... 43 4.7.5 Maintenance of expertise ........................................................................................................... 46 i

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4.7.6

Continuing flexibility to restructure divisions ...................................................................... 47

APPENDIX A ­ LOCATIONS VISITED BY STUDY TEAM.......................................................................... 49 APPENDIX B ­ IDENTIFIED ISSUES ................................................................................................................ 51 APPENDIX C ­ LOGICAL SCOPING SCHEMA ............................................................................................ 56 APPENDIX D ­ OUTSOURCING MODELS..................................................................................................... 58 APPENDIX E ­ CLASSIFICATION OF EQUIPMENT.................................................................................... 60

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1 EXECUTIVE SUMMARY 2 B ACKGROUND
2.1 Introduction
The Government decided in 1997 that IT infrastructure and services across all budget funded Agencies would be outsourced subject to the outcome of a competitive tendering process. In 1998, the Prime Minister reiterated general Government policy that outsourcing of IT infrastructure should proceed unless there is a compelling business case on a whole of government basis for not doing so. The Government again reinforced the importance of early implementation of the outsourcing reform program in 2000. To assist Government entities operating under the Commonwealth Authorities and Companies Act 1997 (and other enabling legislation), the Government decided to issue Notices of General Government Policy to facilitate implementation of the policy by those entities. The Government has mandated the following areas as within the scope of the Government's IT Infrastructure Initiative (the "Initiative"): · Desktop and LAN services ­ including: - desktop computers, portable computers, handheld computers, monitors, keyboards, pointing devices, multimedia peripherals such as speakers and microphones, printers, scanners etc. - file, communications, electronic messaging, gateway, print, firewall, proxy web and other servers. - hubs, routers, bridges and other LAN related equipment and resources · Midrange application servers · Mainframe services · Data communication services · Cross Platform services (such as technical support and help desk) The infrastructure described above exists in various environments for various uses. For example use of a PC in an Agency that performs primarily administrative functions can be quite different from the use of a PC in a scientific and research environment. Both PCs are within the scope of the Initiative. Through the outsourcing of IT&T infrastructure, the Government (and each of the Group 9 Agencies) expects its business needs to be met and to pursue financial and other benefits through economies of scale and opportunities for consolidation, rationalisation, and standardisation of IT&T operating environments. In accordance with Government directives, all of the foregoing mandated services are in scope. The Agencies that form Group 9 are: · Australian Antarctic Division (AAD); · Australian Geological Survey Organisation (AGSO);
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· Australian Nuclear Science and Technology Organisation (ANSTO); · Bureau of Meteorology (BOM); and · Commonwealth Scientific and Industrial Research Organisation (CSIRO). Because Group 9 is comprised of scientific and research Agencies, outsourcing the IT infrastructure of the Group may present some special issues that may justify modification to the outsourcing model used by the Initiative to date. Accordingly OASITO initiated this scoping study in order to identify the IT equipment and systems which may require special treatment in RFT documentation and the resultant contract and to identify how such IT equipment and systems should be handled. The study team has identified potential treatment of IT equipment and systems presented to them during the course of the scoping study visits. The identified treatment is not definitive in all cases. Because the study team only saw representative equipment and systems, the percentage of equipment actually viewed may be only 5% of all the IT equipment in the Group 9 Agencies. The effect the potential treatment may have when applied to the actual volume of equipment and systems, together with other economies associated with outsourcer support may lead to alteration of the treatment.

2.2 Study Objectives
The objective of this study is to ascertain whether there are reasons justifying submission of a proposal to the Minister for Finance and Administration seeking to vary the scope of IT infrastructure to be outsourced in the Group 9 process. The results of the scoping study are intended broadly to identify the categories of IT infrastructure to be included in the outsourcing contract as well as any variations that may need to be made to the standard outsourcing model to cater for the specific issues raised. The specific objectives, as determined by the Group 9 Agencies and OASITO, were to use the following considerations as a guide to clarify and determine scope boundaries: · The particular use to which IT&T equipment and systems are put. · Whether specialist scientific equipment or systems use IT infrastructure which prohibits the achievement of efficiencies through aggregation and economies of scale. · The effect on proposed IT&T outsourcing contract arrangements and the objective to achieve end to end performance accountability from the outsourcing provider. · Whether a viable market exists, or can be created, for the support of particular equipment and/or systems. · The operational practicality, including staffing issues, of particular decisions to leave equipment/systems in or out of scope with the object of ensuring that Agencies are able to continue to meet their scientific obligations and other business needs efficiently and effectively. · Options for the treatment of particular equipment and/or systems in the outsourcing ­ i.e. whether there are grounds to consider alterations to the standard outsourcing model involving full provision, support and maintenance of infrastructure by an outsourcer.

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Commercial, legal and contractual implications for research contracts and arrangements, including intellectual property developed by Group 9 Agencies and their partners.

2.3 Approach
The study team was made up of representatives from Walter & Turnbull and OASITO. Members of the study team visited locations identified by Group Agencies. Each Agency presented systems that are indicative of the complexity of IT usage within the Agency concerned. Accordingly the systems presented to the study team are representative and not exhaustive. A list of the locations visited is included as Appendix A to this report. The study team met with key research, IT and other Agency personnel and viewed the systems identified. Agency personnel described and demonstrated the usual functions of such systems. These visits and discussions resulted in the development of a list of issues arising from the use of IT infrastructure by the Group 9 Agencies that must be considered in the outsourcing process. The issues identified are included as Appendix B to this report. The study team analysed the issues raised during the site visits in order to identify the potential treatment of the equipment and systems viewed. This Scoping Study Report reflects the analysis undertaken by the study team.

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3 THE INITIATIVE OUTSOURCING MODEL
3.1.1 The presumptive IT&T outsourcing model

Consistent with the scope of the Initiative endorsed by the Government, the `presumptive' or `standard' IT&T outsourcing model adopted by all previous Groups (Cluster 3, the ATO, Group 5, the Health Group, Group 8 and the soon to be released Group 11) has the following characteristics: · The ownership by the outsourcer of most IT hardware and associated operating systems, network infrastructure (routers, firmware/software) is transferred to, and in the case of new equipment is provided by, the outsourcer. Data telecommunications carriage is provided by the outsourcer or procured by the outsourcer as the Commonwealth's agent under Whole ­of-Government arrangements. The asset management function resides with the outsourcer. The provision, maintenance and support by the outsourcer of IT hardware and associated operating systems (including databases and middleware), and network infrastructure (cables, routers, firmware/software). Support services also include the provision of desktop, LAN and cross platform services (such as technical support, help desk and the provision of soft and hard Moves, Adds & Changes). The integration and management by one prime contractor of the IT&T environment enables end to end accountability for the entire system. The procurement, maintenance, support and integration by the outsourcer of desktop application suites, automated system management tools, and other off the shelf applications. Applications development and maintenance (and associated software tools) are usually retained as an Agency responsibility, but Agencies have the option of including applications development and maintenance in the scope of the IT outsourcing. Voice telecommunications is optional. End user training is optional.

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This presumptive model is labeled `Model 1' in Appendix C. It may be applied where specialised scientific applications are installed on machines that are also used for routine desktop purposes such as word processing, Email communications and web access. Commercial off-the-shelf software tools that assists with the application development process, such as data visualisation packages (e.g. IDL and XRT) and graphical user interface packages like UIMX could be included in the presumptive model.

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The presumptive model for addressing IT infrastructure outsourcing is flexible and has catered for the different business needs of Agencies. If an Agency's business requirements indicate that variations to the presumptive model are warranted, OASITO is willing to accommodate these requirements through various means, including variations in scope, the use of different pricing strategies, service levels or other contractual provisions. Other specific flexibilities that are part of the standard IT outsourcing contract used by the Initiative include the ability of the Agency to: · · · · Direct the outsourcer to procure specific IT equipment, which may include the model or brand of the equipment required; Take systems and equipment out of scope; Acquire equipment directly from third party sources and give it to the outsourcer to manage and support; Retain control over any decision, including timing, of equipment refresh, changes to operating systems, desktop applications and any other infrastructure that Agencies wish the outsourcer to procure, install and/or support. The Care and Feed Variation

3.1.2

A particular variation to the presumptive model is known as the `Care and Feed' Model. Some Agencies in Group 8 had made significant investment in mid-range systems to perform specialised functions relating to research and scientific applications. To cater for the need of these Agencies to control some IT infrastructure at the operating system level, these Agencies varied the presumptive model for IT outsourcing as they related to the research and scientific mid-range systems. For these systems, the variation had the following characteristics: · The ownership of most IT hardware and associated operating systems, network infrastructure (routers, firmware/software) is transferred to, and in the case of new equipment is provided by, the outsourcer. The asset management function resides with the outsourcer. Data telecommunications carriage is provided by the outsourcer or procured by the outsourcer as the Commonwealth's agent under Whole ­of-Government arrangements. Support services by the outsourcer are limited to the support of hardware and the procurement, installation and upgrading of operating systems. Agencies, as in the presumptive model, retain control over any decision, including the timing, of changes to operating systems. The Agency retains responsibility for management of all software products on the system.

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The monthly service charges under Care and Feed may be lower than under the presumptive IT outsourcing model because there is no support given for software. The outsourcer is not accountable for non-performance of IT systems which result from problems with Agency managed software. Accordingly, service levels for system availability would be targets not guarantees, and no service credits would be payable for system non-availability which results from Agency actions. Guaranteed service levels on hardware support (e.g. break/fix response time) can be applied. The outsourcer is still responsible for recovering the IT system in the event of outages caused by the Agency and recovery service levels are applied. If outages are caused by the Agency, the outsourcer is obliged to assist with recovery of the system.

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The `Care and Feed' variation is labeled Model 2 in Appendix C. The Care and Feed approach was developed to apply in circumstances where there is a need for Agencies to have frequent access and control over the operating systems in the normal course of their business. For example, where research and development work leads to regular modification of operating systems either through kernel code changes or through selective patch upgrades. Under Care and Feed, the outsourcer will provide the systems and/or equipment and set it up for use by the end user. Operating systems would be procured and installed, including any required upgrades, but ongoing operating system support is the Agency's responsibility. The user would be free to modify the operating system from that point onward. However, as indicated above, the treatment of service levels under Care and Feed is different from that in the presumptive model, as the outsourcer cannot be made accountable for performance failures of the IT infrastructure arising from Agency actions or modifications. Alternatively, if the need to modify operating systems is infrequent, Agencies can use the presumptive model but exempt the outsourcer from service levels where outages are caused by Agency modifications. The advantage in adopting the presumptive model approach is that the outsourcer is still contractually bound to guaranteed service levels for systems availability for the whole of the IT environment. The Agency has the right and the discretion to access the IT infrastructure (including systems software), but the outsourcer is protected by general exclusions in the Service Levels Schedule from outages caused by Agency personnel. Whether Agencies choose to accommodate users' needs to access systems software, including at the operating system level, through the Care and Feed approach or by using the presumptive model with general exclusions language in the Service Levels Schedule of the outsourcing contract, Agencies will need to be mindful of the effect that such a choice may have on the outsourcer's incentives. For example, under Care and Feed, a break/fix mindset is engendered in the outsourcer. If the outsourcer is confident that it will be able to repair all malfunctioning infrastructure within the contracted service levels, the outsourcer may have an incentive to acquire lesser performing equipment. Under the presumptive model, the payments and incentives regime is structured so that the mindset of the
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outsourcer is focused on making the IT infrastructure work, and not merely fixing the infrastructure if it breaks. 3.1.3 Further variations to the IT outsourcing models

The study team considers that the bulk of the Group 9 IT&T systems could be outsourced under the existing variants of the presumptive IT outsourcing model (Model 1 or Model 2 above). Even so, the team considers there are IT systems in Group 9 which might not be adequately catered for by the current variations to the presumptive model. Three additional variations to the presumptive model are suggested to cater for the following circumstances where Agencies: · Require complete control of the IT&T environments for hardware development (Model 3); Support the IT infrastructure owned by third parties (e.g. students, visiting scientists, CRCs, clients) (Model 4); and Need to take full responsibility for the ownership, procurement, maintenance and support of IT infrastructure, operating systems and applications (Model 5) because it is uneconomic or unrealistic for a service provider to support.

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These additional variations are discussed below. 3.1.4 Model 3 ­ IT infrastructure procurement and management

The characteristics of this variation to the presumptive model are: · The procurement by the outsourcer of IT hardware and network infrastructure (routers, firmware/software).

· The outsourcer is responsible for the maintenance of the procured hardware and network infrastructure; · Agencies retain responsibility for asset management, procurement of the operating system, support of the procured hardware, network infrastructure, maintenance and support of system software and provision of helpdesk advisory services. The Agency also retains responsibility for the installation, maintenance and support of operating systems, database management systems and middleware associated with the system. However, at its option, Agencies may engage the outsourcer on an ad hoc basis, to assist Agencies with any aspect of their retained responsibility for the system. If the outsourcer provides support under this approach it would still be responsible for recovering the IT system in the event of outages caused by the Agency and recovery service levels could be structured to cater for this similar to a traditional maintenance

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contracts. If the outages are caused by the Agency the outsourcer would be obliged to assist with recovery of the system. · The outsourcer would not be solely accountable for any non-performance of IT systems resulting from problems with Agency managed hardware or software. Accordingly service levels for system availability would be targets not guarantees, and service credits would not be ordinarily payable for system non-availability.

This approach would be applied in circumstances where the user intends to undertake experimentation on IT&T hardware. This could involve complete dismantling and reconstruction and in some cases inclusion of hardware designed and built exclusively for the research process. This scenario would apply where hardware is to be fundamentally changed. Ownership of the IT hardware, and the asset management function could be retained by the Agency concerned. However, through the RFT process, Agencies could explore with tenderers what flexibility is available in leasing arrangements to avoid being left with a residual asset management function. 3.1.5 Model 4 ­ IT infrastructure support

This approach seeks to provide for the support of IT infrastructure brought to the Agency by visiting scientists and IT infrastructure not owned by the Agency but located at Agency sites as part of a joint venture, a Cooperative Research Centre (CRC) or other collaborative venture. The characteristics of this variant to the presumptive model are: · No ownership or procurement of the IT hardware by the outsourcer; this function resides with the owner of the IT equipment (i.e. the visiting scientist or student, CRC or client). The outsourcer supports the IT hardware and associated operating systems and desktop applications on an ad hoc basis as requested by the user. To the extent the service provider is not able to provide full support, i.e. the software is written in Japanese Katana character set, the level of support could be varied. There are various payment options available, including time and materials, or a set fee for a particular type of support service provided to a visitor.

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Potentially, this approach could also be applied to equipment and/or systems that receive a lower level of support in accordance with Models 2 or 3, but the user still requires some additional services. An example may be a PC that is not fully supported because the user is developing software that requires modification to the operating system. As a result it is designated as equipment that falls into Model 2. Despite the high level of IT expertise of the end user, he or she may still desire support in the form of assistance with the standard Microsoft Office software suite or other services that are not within the user's knowledge base. In such situations, it may be preferable to use Model 4 to provide support to the user.

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3.1.6

Model 5 ­ Agency responsibility for IT infrastructure

This refers to those service functions that are retained by Agencies. Some equipment would not be classified as IT infrastructure. Although a case might be made that this non-IT equipment should be outsourced, it does not fall within the mandatory scope of the Initiative. Examples of such equipment are instruments that have embedded IT functionality that are so integral to the working of the instrument that they cannot reasonably be managed separately from the instrument. Generally these are purchased as an integrated item from a vendor who then maintains and supports the instrument directly with the scientists using it. Examples of this infrastructure are Automated Weather Stations (AWS) operated by BOM, expendable balloon sondes operated by BOM and environmental sensing equipment installed by CSIRO in bulk grain storage dumps. The study team saw computing infrastructure which is so integrated with the instrument that it was not recognisable as a "PC" as it does not have a screen or keyboard and in normal operation interacts directly with the instrument without direct human intervention. In other cases, the study team saw PCs which were attached to the scientific instrument and whose sole purpose is to operate the instrument. The study team considers that PCs whose only function is to operate or support a scientific instrument might best be treated as an integral part of the scientific instrument and therefore excluded from the outsourcing. To the extent that a PC is re-deployed from operating a scientific instrument to some other purpose, at the time of redeployment, the PC is in scope and should be treated in the same manner as a `new' PC arriving in to the Agency IT environment. If a PC is attached to an instrument and the function of that PC is to collect, analyse and distribute data through the network, that PC is included in the scope of the IT outsourcing. In determining the scope of the IT infrastructure to be outsourced, Government policy has made it clear that all IT infrastructure should be outsourced unless there is a compelling business case on a whole of government basis for not doing so. Through the outsourcing of IT infrastructure, the Government and each of the Group 9 Agencies expects their business needs to be met. The Guidelines for the Scoping Study raised the following considerations regarding decisions to exclude IT infrastructure from the scope of the Group 9 IT outsourcing: · No viable market exists, or can be created, for the support of particular equipment and/or systems; · The decision to leave equipment and/or systems in scope is operationally impractical, potentially du