Paragon Systems can help most agencies who are under severe capital budget constraint, especially if there is competition for limited resources. Please contact us for a full discussion on these topics: 

Symptoms of Capital IT Budget Cycles:

• Deployment based on current budget
• Delay of benefits
• Mixed inventory, higher maintenance
• Loss of vendor discounts
• Concept of upgrade/tech refresh as a “big event”
• Loss of flexibility to respond to inevitable change

A capital asset or an expense of running your agency?

• Assumption of management control
• Rooted in out-dated accounting paradigm
• Useful life of IT assets < system life
• Risk of ownership; no credit for surplus; asset disposal costs

Alternative Acquisition Strategies:

• A winning business case that addresses budget constraints
• Accelerate deployment
• Maximize discounts
• Shift ownership risk
• Plan for continuous and incremental technology refresh

Standard Government Contracting:

• Lease to Own (LTOP): Agency takes title at end of term
• Lease with Option to Own (LWOO), Fixed Purchase Option: May purchase at end for fixed price
• LWOO – Fair Market Value: Agency has no real intention of owning
• Managed Service Agreement: Pay for use with services included
  

Use of Operations and Maintenance (O&M) Funding:

• Supports concept of an IT “service” and IT assets as an expense
• “Pay for use” supports “fee for service”
• Leverage out-year O&M funding to accelerate project deployments
• Necessary technology refreshment is planned
  

Flexibility to Respond:

• New user requests and requirements
• Agency and regulatory mandates
• New technology
• Workload fluctuation
• Budget changes
  

Tools for effective IT management:

• Smoothes budgets for better predictability
• Enables re-allocation of capital, and enforces asset management discipline
• Outsources asset disposal, and enables more efficient technology refresh
• Accelerates projects and benefits (ROI)
• Combines project costs into one payment
  

Paragon Systems technology financing programs assists agencies under capital budget constraints—requiring a new approach to managing their IT costs. We can help with the effective utilization of O&M funding and manage IT via mission-driven metrics. The benefits are clear, your organization can proactively manage the technology lifecycle, free staff for mission critical tasks (with an eye toward future missions), improve customer service/responsiveness and lower costs.