1 expect the best Lemuel C. Stewart, Jr. CIO of the Commonwealth Information Technology Investment Board December 8, 2005 CIO Status.

1

expect the best

www.vita.virginia.gov

Lemuel C. Stewart, Jr.CIO of the Commonwealth

Information Technology Investment BoardDecember 8, 2005

CIO Status Report

www.vita.virginia.gov 2expect the best

Highlights Since Last Meeting• Held VITA Dialogue meeting on November 16 on

Transformation; next meeting planned for January 10, 2006.• Announced the PPEA Infrastructure Partnership Agreement

November 16 in Chesterfield and signed the Interim Comprehensive Infrastructure Agreement with Northrop Grumman.

• Interim Comprehensive Infrastructure Agreement released publicly on November 11.

• Regionalization model of service delivery implemented.• Presentation given to JCOTS.• National Association of State CIO’s (NASCIO) featured

Virginia’s enterprise architecture in a national brief on December 1.

• DHRM report on VITA Pay Actions – no exceptions.• Supplier Managed Staff Augmentation (SMSA) contract

awarded in November to Computer Aid, Incorporated.


Audit Action Plan Update• 2005 APA “Review of Controls Over Information Security” Audit

Action Plan– 3 of 16 actions reported as completed.– Remaining 13 actions reported to be on schedule.

• 2005 APA “Performance” Audit Action Plan– 10 of 15 actions now reported as completed as 1 action was

reopened.– 3 actions have revised due dates and the remaining 2 are

reported to be on schedule. NOTE: Meeting 2 of the revised dates is dependent on funding of rates submitted to JLARC for approval.

• 2005 Internal Audit Services “Small Purchase Charge Card” Audit Action Plan– 16 of 16 actions reported as complete.


CIO Major IT Project and Procurement ActionsSince Last ITIB Meeting

• Project Planning ApprovalDept. of Transportation: Equipment Management System Upgrade Virginia State Police: Virginia Records Management SystemVirginia Employment Commission: Replace Virginia Workforce Information SystemDept. of Environmental Quality: Document Management Implementation

• Project Development ApprovalDepartment of Motor Vehicles: Traffic Records Electronic Data System Project

• Contract Approval None

• Project Suspension or Resumption ApprovalNone

NOTE: See the December ITIB Major IT Project Status Report (provided separately) for a complete status of the Commonwealth major IT project portfolio


FY 2006 Financial Results

First Quarter

Budget

First QuarterActual

Operating Revenues $73,922,428 70,443,470

Expenses, including transfers 73,420,862 63,819,480

Net change 501,566 6,623,990

Ending, retained earnings 58,051,193

First Quarter FY2006


FY 2006 – 2008 Legislative UpdateDecision packages approved by CIO and submitted to DPB; ITIB notified• Four language only items

– Line of credit– Clarified purchasing authority for local governments– E-911 duplicate reporting elimination and E-911 Board

recommendation• Five with dollar impact

– FY07 $12.3M/6 positions– FY08 $ 9.4M/6 positions– Supports Base Mapping project completion, E-911

administrative adjustments, restoration of FY06 General Fund reductions, elimination of E-911 diversion to VSP and negate FY06 $1M transfer


VITA Service Fund Rates

• JLARC Subcommittee meeting– Rate reduction for Video and new rate for VOIP

approved– Security methodology approved - $3.5m (Incident

management, security policy, risk management)• PC rate of $4.31 was proposed and approved• New revised fixed monthly fee methodology proposed to

JLARC• Recommend and request Board approval of revised

methodology from a PC rate to a fixed monthly fee

– JLARC staff has reviewed and concurs with change


VITA Service Fund Rates - continued

– IT Investment Management - $1.7m – Rework• Proposed fixed monthly fee by size of customer• Shared overhead and hourly fee billing

recommended by JLARC• New methodology developed and proposed to JLARC

for December 13 meeting• Recommend and request Board approval of revised

billing methodology for ITIM

– JLARC staff has reviewed and concurs with recommendations


PPEA Activities Review

• November 14 - Governor Warner approved the Interim Agreement with Northrop Grumman

• November 14 - announcement made in Chesterfield and Lebanon

• November 17 - the contract and all attachments were made public on the VITA website

• Video of announcement


When will the partnership be implemented?

Transition

Planning

Interim Agreement signed

Transition Planning Completed

Transition Phase

Service Commencement

Transition Activities Completed

Transformation Phase

Operational Phase

Transformation Activities Completed

General Assembly review


What are the key milestones?Milestone Anticipated Date

Complete transition Service Commencement + 6 months

Move into new data center March 2007

Establish single help desk May 2007

Establish back-up data center June 2007

Complete initial desktop refresh November 2007

Complete single enterprise e-mail February 2009

Complete server consolidation February 2009

• Dates Adjusted to Incorporate General Assembly Approval of Capital Lease Component

• Subject to Revision During Interim Phase/Transition Planning


What happens now?• Commence partnership preparation for

transformation• Final agreement reviews• Project implementation plan for ITIB approval• VITA internal organizational transformation• The interim phase will become final upon the

earlier of:– Completion of all General Assembly and other approvals– June 30, 2006, unless extended

• Commonwealth has the option to terminate with limited exposure– Activities permitted by statute include project planning

and development


Benefits of changing VITA’s organizational design

• Build a successful partnership with NG, our service delivery partner, by implementing a Service Management Organization to provide oversight and clarity of interfaces

• Enable clearer definition of roles and responsibilities at all levels, within and among all Directorates

• Provide a sharper focus on working with our customers and addressing their needs

• Remove duplication of effort across VITA and provide the foundation to develop centers of excellence

• Improve customer service and communications


Customer Relationship Management

Customer Relationship Management

Technology Applications,

Architecture, & Strategy

Technology Applications,

Architecture, & Strategy

FinanceFinance

CIOLem Stewart

CIOLem Stewart

Chief of StaffCheryl Clark

Chief of StaffCheryl Clark

Internal AuditInternal Audit

ITIBITIB

IT Investment Management

Enterprise IT Portfolio & Program Mgmt, Supply Chain Mgmt

IT Investment Management

Enterprise IT Portfolio & Program Mgmt, Supply Chain Mgmt

Service Management Organization

Service Management Organization

Enterprise Security & VITA

Risk Management

Enterprise Security & VITA

Risk Management

VITA To-Be Organizational Design – Functional Services View - March 31, 2006

Administrative Services

HR, Communications, Legal & Legislative

Services

Administrative Services

HR, Communications, Legal & Legislative

Services

• Finance & Accounting

• Budgeting & Rate Setting

• VITA Strategic Planning

• Performance Mgmt & Reporting

• Business & Financial Analysis

• Facilities & Asset Mgmt (Finance)

• Agency Performance Mgmt

• Service Delivery Mgmt• Commercial Mgmt -

Contract & Financial (PPEA)

• Transition & Transformation Mgmt

• Strategy & Architecture Coordination

• ITIL Process Mgmt & QA

• Customer Relationship & Account Mgmt & Development

• Market Research & Analysis

• Innovation & Customer Value

• Partner Service Mgmt (e.g. vGov)

• COTS Board SME

• Resource Mgmt• Portfolio Mgmt• Program Mgmt• Project Mgmt• Business Process

Reengineering• Strategic Sourcing• Contracts Management• Strategic Analysis• Plan & Policy (Service

Development)

• Technology Strategy• Technology Forecasting

& Innovation• IT Policy, Practices &

Standards• Architecture –

Enterprise, Solution & Design Assurance

• Public Safety Communications Division (E-911 Board)

• Enterprise Business Solutions

• eGov & Web Development

• System Integration Services

• VGIN Solutions & Division

• Incident Management• SI & Tech Support• CIP & Business

Continuity• Risk Management• IS Training &

Awareness• Standards, Policies, &

Procedures

• Internal Communications

• Public Information Mgmt

• Publications Support Services – Internal & External

• Legislative Liaison• Board Coordination &

Administration• Legal Services• Policy Analysis• Organizational

Development• Professional

Development• Recruitment & Selection• HR Administration –

Benefits, ER & Compensation


How will the partnership be managed?

• The Service Management Organization (SMO) within VITA will manage infrastructure service delivery– Single point of accountability– Ensures both partners fulfill contractual obligations

• Significant contract provisions to manage effectiveness of partnership– Service levels within each technical area– Penalties for missing service levels

• Help desk response time – Penalties for missing critical milestones

• Completion of the primary data center construction

• Independent audits of expected outcomes


VITA and NG interface – during SMO Build and Transition

Lem Stewart

CIO

Fred Duball

SMO Director

Hugh Taylor

Relationship Executive

Joe Fay

Relationship Manager

PPEA Partner – Northrop Grumman

Leads the Executive relationship with NG

Accountable for overall relationship including oversight and management day to day

operations with NG

Interface relationship Reporting line

Cheryl Clark

Deputy CIO

Ensures other Directorates provide appropriate support to SMO

Sr. Transition & Transformation Manager

Transition Management Manager

Responsible for transition of infrastructure services and

longer term transformation of each technical tower Steady State Service

Delivery/ Operations Manager

Service Delivery Sr. Manager

Service Delivery Managers

(Technical Towers)

Service Delivery Managers(Technical Towers)

Agency Service/ Performance Manager

Agency Performance Sr. Manager

Day to day operational relationship interface for service delivery

Day to day operational relationship specific technical towers

Ensures performance meets the Commonwealth’s requirements

Strategy and Production Architecture

Business & Finance Mgmt. (Pricing & Contracts)

Strategy and Architecture Coordinator

Commercial Management (Finance & Contracts)

Sr. Manager

Technology, Strategy and Architecture Directorate

Ent. Portfolio, CRM, PIC, HR Directorates

CRM, CSS, HR

Directorates

CRM, CSS. HR

Directorates

CRM, CSS, HR

Directorates

SCM, FMS, HR

Directorates

* For select directorates

Coordination with Partner Architecture, technology & Innovation

Shared and Sub Contracts, Pricing Governance and Negotiations with

Partner

ITIB

PPEA Partner - VITA


Please welcome our partner

Hugh E. TaylorPresident,

Commercial, State and Local SolutionsNorthrop Grumman Information Technology


For More Information on VITA

www.vita.virginia.gov

Lemuel C. Stewart, Jr.CIO of the Commonwealth

[email protected]

1 expect the best Lemuel C. Stewart, Jr. CIO of the Commonwealth Information Technology Investment Board December 8, 2005 CIO Status.

Documents

project portfolio slide

project status report

project suspension

audit action plan update

procurement actions

transfer slide

quarter fy2006 slide

cio major