1 expect the best Doing Business with The Commonwealth of Virginia Lemuel C. Stewart Chief Information Officer Commonwealth of Virginia COVITS September 27, 2004

2 expect the best Imperatives The Vision for Technology in Virginia Establish Virginia as a global leader in the use of technology in government. The Vision for VITA Transition from decentralized, agency-centric service delivery to a highly effective, consolidated, and shared services model. Why We Are Doing This + Global positioning + Savings + Effectiveness + Best Practices management of the IT investment = Revolutionize services to our customers (best quality/low price)

3 expect the best VITA Today and Tomorrow As of July 1, VITA is responsible for supporting: –60 Organizations at 543 locations –16,936 end users –1,074 servers –557 employees On January 1, 2005, VITA will be responsible for supporting: –90 Organizations at 1,497 locations –60,000+ end users –3,000+ servers –1,286 employees

4 expect the best Procurement Reform Governor’s Commission on Efficiency and Effectiveness findings and recommendations in December 2002 identified need for change –Virginia would rank 50 th if it was in S&P500 –State has tremendous opportunities to leverage buying power and embrace and implement better solutions and tools –Virginia does not purchase and utilize IT in the most cost-effective manner

5 expect the best ProReform in Action Centralized IT procurement Solutions-based RFP approach –Limited terms and conditions as mandated Value orientation, not price orientation Faster, simpler, less expensive procurements SWAM Web site and business intelligence Enterprise solutions and partnerships

6 expect the best Partnerships: The Keystone to Success Public/Private partnerships offer the opportunity to change how we do business Focus on redesigning the business processes so state government can improve citizen services PPEA proposals were posted for competition and are under review

7 expect the best Integration Savings (August 30, 2004) Initiative FY 04 Savings FY 05 Savings FY 06 Savings Six-Year Baseline Benefit Voice and data telecommunications contract extension (ATM T-1 Circuits)* $528,000 $3,168,000 Conversion of Unix and Oracle contractors to full- time positions $132,000 $792,000 Efficient tape technology stacking and replacement$173,000$108,000 $713,000 Telecommunications MCI contract (COVANET)*$1,542,000$3,085,000 $16,967,000 Verizon contract renegotiation$0$4,675,000$5,861,000$28,119,000 Streamline voice services$2,000$103,000 $517,000 Streamline cellular usage*$524,000$1,333,000 $7,189,000 SAG software contract renegotiation$8,000$32,000 $168,000 Sun server procurement$484,000$0 $484,000 Virginia Partners in Procurement – Hardware and Software (Wave I)** $12,098,000$14,576,000 $84,978,000 Virginia Partners in Procurement – Computer Peripherals and Enterprise Storage (Wave II)** $174,000$558,000 $2,964,000 Total, Gross Savings$15,665,000$25,130,000$26,316,000$146,059,000

8 expect the best Integration Cost Avoidances (August 30, 2004) Software Licenses$495,000$615,000 $3,570,000 Server Acquisitions$380,000 $0$760,000 Subtotal, Cost Avoidance$875,000$995,000$615,000$4,330,000 Total, Gross Savings & Cost Avoidance $16,540,000$26,125,000$26,931,000$150,389,000 Initiative FY 04 Savings FY 05 Savings FY 06 Savings Six-Year Baseline Benefit

9 expect the best VITA Transformation - The Value Picture Best Quality Service & Best Value TODAY IT Infrastructure 1.4B Agency Citizen Services 1.2B TOMORROW IT Infrastructure.9B Agency Citizen Services 1.7B 6 YR Baseline

10 expect the best What Does This Mean to Suppliers? Lower marketing costs – streamlined sales and procurement Ability to compete for larger and more complex engagements Focus on business solutions and value to total cost ratio Creative partnerships with SWAM participation

11 expect the best Contact Information Please visit tohttp:// learn more about our procurement efforts Lemuel C. Stewart, Jr. Chief Information Officer of the Commonwealth Virginia Information Technologies Agency (804)

12 expect the best New Venture and New Vision: VDOT Experiences as a Newly Transitioned Agency Murali Rao Information Technology Director Virginia Department of Transportation

13 expect the best Transition date July 1, staff transferred Over $3,000,000 a month in billing Affects 10,000 employees in 300 locations Approximately 7,000 desktop PC’s Transition Facts

14 expect the best Expanded role of Secretariat of Transportation Oversight Committee Standardization under Project Manager Development Program New forums established for exchange of ideas Promotes Cross-Agency Sharing of Best Practices

15 expect the best VITA has a streamlined process One common policy Pre-negotiated high-end technical support No VDOT contract negotiation Consultant Management

16 expect the best Expenses are quantifiable Global view and understanding of IT cost Better understanding of IT Operations Cost

17 expect the best Promoting a transition from manual to electronic workflow and routing methods Redesign and simplification of forms is eliminating extraneous and redundant items Streamlines Oversight and Approval Processes for Procurements

18 expect the best New Venture and New Vision: VDOT Experiences as a Newly Transitioned Agency Murali Rao Information Technology Director Virginia Department of Transportation

19 expect the best How to Do Business with Virginia Higher Education Update Mark D. Willis Assistant Vice President Administrative Information Technology Virginia Commonwealth University

20 expect the best Higher Education in Virginia 39 four- and two-year institutions 342,000 students 56,000 faculty and staff $3.9 billion in total expenditures $325 million in IT expenditures $444 million in research expenditures Note: Public institutions only.

21 expect the best How to Do Business with Virginia Local Government Update John Eagle Director of Information Technology City of Hampton Chairman, Virginia Local Government IT Executives

22 expect the best What’s Important: We want it cheap We want it now We want high quality We want ease of use and simplicity We want flexibility We want consistency We want solutions, best practices and ROI We want a relationship with suppliers –Vendors with community/regional interests

23 expect the best Demographics 140 cities/counties 14 with populations > 100,000 Of the 55 Jurisdictions in VaLGITE –70,000+ end users –$220+ Million annual IT expenditures –Mostly centralized IT; decentralized everything else –Procurement not considered just a clerical process

24 expect the best Initiatives & Trends Use of p-cards Use of GSA Contract Use of Regional Contracts Use of State Contract Use of eVA Use of online “reverse auctions” and other online procurement tools Online registration and RFPs, e-submittals, and more web site based solicitations PPEA Generic brand equipment losing popularity

25 expect the best Opportunities Work with the system (not around it) Understand our differences Understand VA Procurement Law Take advantage of NIGP certifications, standards and commodity codes Provide educational opportunities/workshops Get on a “purchasing vehicle” Stay in touch but don’t spam us