FSSI Wireless Economic Model (EM)
Use the Economic Model (EM) to estimate the costs and savings on the Federal Strategic Sourcing Initiative (FSSI) Wireless Blanket Purchase Agreements (BPAs). Determine if the FSSI BPAs are the right vehicle for you to use for your carrier service and device needs, as well as help you know whether you've secured the benefits of competition and pooling under this vehicle. The EM is an aid, not a substitute, for a Request for Information (RFI), communications with contractors, and quotes from contractors.
Consult the contractors or their specific BPAs for ordering according to Federal Acquisition Regulation (FAR) 8.405-3(c)(2).
The EM is a customized Microsoft (MS) Excel spreadsheet that will work with a standard MS Office desktop implementation (see the EM Setup Instructions for important settings). The EM uses macros (programming code) to perform its calculations. It will not work properly unless your version of Excel is configured to accept and run macros. Please follow the setup instructions before using the tool. After changing your Excel settings, open the Economic Model file and begin entering data.
- FSSI Wireless Economic Model Setup Instructions (DOC, 63 KB)
- FSSI Wireless Economic Model Version 2.0 (Excel, 1.4MB)
The EM uses actual prices paid for specific CLINs (contract line item numbers) under the BPAs. As we gather more pricing data, we will update the EM to reflect the change in average price and optimal discounts . The list prices may change as the result.
Always use the one on this page, rather than saving it to your desktop and using that one, because it may not be the latest version.
Use this EM to:
- Calculate the average cost/device based on usage rates
- Account for the device mix and approximate usage profile
- Compare this to the average pricing and optimized pricing found against competed agreements against the BPA
To use the EM, you will need to understand your assets and general usage patterns. We calculate your existing device cost based on the total number of devices, device type, general usage pattern, and monthly cost for your services.
To help collect this data, we use the Data Survey Template (Excel, 33 KB) to do an internal audit that can help capture this information. You can also use this information to describe to the vendors total devices, usage attributes, and locations when it comes to developing your RFQ.
Entering the Data
Step 1: Enter the total number of wireless devices or plans that you currently have or that you plan to procure.
Step 2: Enter the percentage mix among the device types. You must enter a percentage for at least one device type. The total mix must equal 100%. For example, if you are pricing only data devices (i.e., no voice devices), then enter 100% for the Data Only devices. When entering the percentage, the tool automatically calculates corresponding units for each device type in a separate column.
Step 3: Enter the total cost of wireless services. The total cost is the total average monthly expenditures for wireless services associated with the number of devices in Step 1. The total cost of wireless services should include taxes, fees, and any overage charges. The tool calculates and displays the overall average cost per unit (required by pricing algorithm) in a separate column. This figure is derived by dividing the total cost (Step 3) by the number of devices (Step 1) and factoring out five percent for taxes and fees.
Step 4: Select a usage profile from the drop-down list that most closely matches the average actual usage level for your user base across the different types of wireless devices. The usage profile represents different wireless usage patterns found across the federal government. Your selection generates the usage assumptions needed for the price estimate. The profile assumptions may be higher or lower than your actual usage. A conservative pricing practice is to select a profile with usage that is higher than your actual amounts.
Step 5: Click the “Calculate” button to run the pricing algorithms and see the anticipated savings using the FSSI Wireless program. Upon changing any input(s), click the “Calculate” button again to update the results.
The results display in a color-coded banner box on the right side of the screen. The banner box summarizes FSSI wireless pricing and suggests next steps. The table below the banner box presents five pricing metrics. Each metric shows the average among all four BPA contractors as well as the best pricing among the contractors.
Pricing results are optimized to achieve the lowest cost outcome based on usage levels, vendor-specific plans, and the lowest awarded price to-date by each vendor.
- Expected Monthly Wireless Spend ($) – This is the expected equivalent monthly costs using the FSSI Wireless BPAs. Compare this with your current average monthly costs in Step 3.
- Average Price / Device per Month ($) – This is the comparable average monthly price per device using FSSI-W.
- Savings / Device per Month ($) – The difference between your current average monthly price/device and the expected FSSI-W average price/device.
- % Savings – Savings expressed on a percentage basis (Savings/Current Average Price).
- Annual Savings ($) – Monthly savings annualized across the base of all devices.