09/11/081 ISD2R\YES NM PCC Presentation 09/24/08 Planning Phase Certification Change Request.

09/11/0809/11/08 11

ISD2R\YES NMISD2R\YES NM

PCC Presentation 09/24/08PCC Presentation 09/24/08

Planning Phase Certification Planning Phase Certification Change RequestChange Request

09/11/0809/11/08 22

AgendaAgenda• Change in Project Approach

• Project Status

• Accomplishments Calendar Year 2008

• Current Budget and Timeline

• Remaining Risks

• Mitigation Strategies

09/11/0809/11/08 33

Project ApproachProject Approach• Leadership Change

• State visits, State teleconferences, conference attendance

• Lessons Learned

• Combination of ISD2R\YES NM

• Accelerated delivery of IT Infrastructure components

• Current Plans

09/11/0809/11/08 44

Leadership ChangeLeadership Change

• Kate Jesberg and Terri Gomez placed the project under review early 2008

• Dan Donoghue accepted a promotion at the Department of Corrections in March 2008

• Jan Christine assumed responsibility for the ISD2R and YES NM project mid April 2008.

09/11/0809/11/08 55

State Visits, Teleconferences, State Visits, Teleconferences, ConferencesConferences

• In the past 1 ½ years, the project team has conducted teleconferences with or viewed demos from 25 states (list at end of presentation). See next slide for the list of states.

• The team has also conducted (4) on-site State visits to Michigan, Wisconsin, Pennsylvania and California C-IV

09/11/0809/11/08 66

States AnalysisStates Analysis

Contacted: Alabama, Arizona, Arkansas, Colorado, Connecticut, California (C-

IV and LA Leader), City of New York, District of Columbia, Florida, Idaho, Indiana, Louisiana, Maine, Massachusetts, Michigan, Montana, New Hampshire, Pennsylvania, Texas, Utah, Washington, West Virginia, Wisconsin, and Wyoming

Viewed full or partial demos:Alabama, Colorado, Connecticut, California (C-IV system and LA

Leader system), City of New York, Florida, Indiana, Massachusetts, Michigan, New Hampshire, Pennsylvania, Texas, Washington, West Virginia, and Wisconsin

09/11/0809/11/08 77

Lessons LearnedLessons Learned• Planning Phases range in cost from 1.5 - 6 Million.• Implementation costs range from Arizona’s estimate of $80

Million to Texas’ actual cost of $300 Million for completion of implementation in four counties.

• Implementation typically requires 4 years from the start of the implementation phase.

• Other states consider the YES-equivalent to be functionality of the main system.

• No state currently provides centralized intake for their own and other agencies.

• Most of the States contacted possessed IT Infrastructure components for business intelligence, imaging, customer eligibility screening, and forms creation that New Mexico currently does not possess.

• Idaho, Oklahoma, Curum, and Oracle are pursuing models different from the current “norm”.

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Idaho ModelIdaho Model

• Completed Planning in-house to replace that previously completed by an external vendor.

• Justified the transfer of the C-IV system from California “as-is” as a result of the Planning Phase.

• Obtained the approval of the business to implement C-IV in Idaho with infinitesimal changes.

• Hired C-IV experts without an RFP• Attempted to retool State COBOL resources, but instead hired local

Java/Oracle developers.• NOTE: The State already has capabilities for business intelligence,

imaging and electronic document management and a rudimentary Master Client Index.

• Idaho’s current estimate is $32 Million to project completion for replacement of an ISD2R look-alike. They are currently reducing the scope to meet the budget.

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Oklahoma ModelOklahoma Model• Approach is 180º from Idaho.• Spent $4.5 Million on the planning phase• Create requirements for intake (and possibly some

interviewing) that are shared across all Health and Human Services (HHS) functions.

• Defined the program-unique modules behind the shared intake.

• Performed a large Business Process Reengineering phase defining how the Departments would collaborate in the future.

• Currently working on the RFP.• Estimate Phase 1 of the project to cost $160 Million.

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Curum and OracleCurum and Oracle(the 600 pound gorillas in the room)(the 600 pound gorillas in the room)• At the ISM conference August 2008 in San

Francisco, both of these organizations touted COTS systems that would offer a solution similar to Oklahoma’s vision.

• Oracle has pursued a very aggressive acquisition strategy during the past four years.

• Oracle promised a major announcement in regards to HHS COTS systems within the next 60 days, but shared nothing about the nature of that announcement.

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Current ISD2R\YES NM ApproachCurrent ISD2R\YES NM Approach• Combine ISD2R\YES NM.• Complete Planning Phase by late spring 2009.• Perform RFI December through January SFY 2009• Invite Oracle and Curum to RFI and continue to determine

how much functionality is in production.• Pursue candidate system for Idaho approach using criteria

agreed upon by New Mexico.• Plan and budget for an approach similar to Arizona’s ($80

Million estimate), but include enough funds for business intelligence and imaging\electronic document management that New Mexico does not possess.

• Stay in continual contact with Oklahoma and a group of states exploring in Enterprise solutions.

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Planning Phase BudgetPlanning Phase Budget

Cost Category Planning Phase Estimate

State Personnel $656,850

Contract Personnel $ 1,113,150

Hardware, Software and Travel

$230,000

TOTAL $2,000,000

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Planning Phase SchedulePlanning Phase SchedulePlanning Phase Thursday July 17, 2008

ID Task Name Start Finish Duration2008 2009 2010 2011 2012

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

1

2

3

4

5

6

7

8

9

10d7/23/20087/10/2008Gain Steering Committee and JAT approval of Revised Plan

5d7/30/20087/24/2008Change Planning APD, increasing amount sought from Feds

5d8/6/20087/31/2008Obtain State approval of revised APD

34d9/23/20088/7/2008Obtain Federal approval of new planning budget

20d9/17/20088/21/2008PCC Re-certification of Combined ISD2R and YES Planning Phase

10d10/7/20089/24/2008BAR Revised for Planning Phase

45d9/24/20087/24/2008Create Contracts and get all pre-approvals

10d10/21/200810/8/2008Signature Approvals Planning Contracts

238d6/30/20098/1/2008Complete Planning Phase for ISD2R and YES

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Governance StructureGovernance Structure

HSD Steering Committee

YES NMMulti-Agency JAT

ISD Program Lead

(3) Business Analysts

(2) Data Modeling/conversion Experts

(5-7) Planning Consultants

(1) System Engineer

Part-time Multi-agency Participants

Executive SponsorPamela S. Hyde, J.D.

Secretary, Human Services Department

Department of Information

Techonology

Program AdvisoryBoard

Program Work Teams

ISD2R\YES NMProject Manager

ISD2R\YES NM Planning Phase Organization Chart

09/11/0809/11/08 1515

Planning Phase Risks\ MitigationPlanning Phase Risks\ Mitigation

Risk #1: Inexperience of Internal Team with Planning Phase

Mitigation #1: Obtain 2-3 external resources with depth of experience in Planning Phase for similar systems in successful projects

Risk #2: Lack of internal resources for adequate technical review including architecture and security

Mitigation #2: Obtain full-time external resource for Systems Engineer, experienced in Java, Oracle, SOA architecture used in systems similar to ISD2R\YES NM

Risk #3: Flexibility and timeliness of procurement processes

Mitigation #3: Discuss and agree upon procurement strategies early in project. Place all procurement partners within a portfolio management workflow that will allow continual monitoring of the process.

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Global RisksGlobal RisksRisk #4: Changing Competitive vendor

environment, especially in regards to COTS vendorsMitigation #4: Invite the appropriate vendors to

the project RFI and continually track with industry trends.

Risk #5: Legislative funding approval at adequate levels for SFY 2010 and beyond.Mitigation #5: Budget request has been made

for SFY10 funds adequate to continue to completion

09/11/0809/11/08 1717

Request SummaryRequest Summary

• Increase planning phase funding to $2 Million, with revised schedule.

• Recombine ISD2R and YES NM for the complete project life cycle.