1 expect the best CIO Status Report Lemuel C. Stewart, Jr. CIO of the Commonwealth October 13, 2004

2 expect the best CIO Status Report Large Agency Merger –1 st Wave Complete – 6 agencies –2 nd Wave – October 25 – 4 agencies –3 rd Wave – November 25 – 7 agencies

3 expect the best Large Agency Transition Schedule As Of 10/07/04

4 expect the best CIO Status Report PPEA Status Report –Review Complete –Closed Session DHRM Classification Study –372 submitted with 58 exceptions identified –29 net changes proposed in DHRM final report –We support the study and will be 100% in compliance by the next ITIB Meeting –A Classification Analyst position has also been added to our staff to work with DHRM to avoid future classification issues.

5 expect the best CIO Status Report Enterprise System Initiatives –Learning Management System (DHRM) –Statewide Alert Network (SWAN) –Enterprise Licensing (DPOR) –Enterprise Geographical Information System (GIS) – 18 agencies –Government to Government (G2G) – DSS – Consolidation

6 expect the best CIO Status Report – Cost Savings FY 04 Savings FY 05 Savings FY 06 Savings Six-Year Baseline Benefit Cost Savings— Eleven Initiatives $15,665,000$25,130,000$26,316,000$146,059,000 Cost Avoidance— Two Initiatives $ 875,000$ 995,000$ 615,000$ 4,330,000 TOTALS, Savings & Cost Avoidance $16,540,000$26,125,000$26,931,000$150,389,000

7 expect the best Quick Win Initiatives (in $1,000) Project NameFY05FY06 6-Year Baseline Benefit Status Comments Local phone service consolidation4,6755,86128,119GreenExceeded 6-year baseline benefit target by $5 million Standard core desktop bulk licensingXX Yellow Small server consolidationXX Green Contractor conversionsXX Yellow VITA host Web based bus. Licensing appsXX Yellow Relocate/consolidate mainframe print site2481,23510,995Green Restructure operations shifts & coverage ,353Yellow Mainframe upgradesXX Green Oracle Financials app. Consolidation ,234Green Migrate customers to COVANET ,825Green Operations automation – prod control ,474Green ImagePort broadcast fax (VDH)XX Yellow Relocate 411 E. Franklin St. offices to Richmond Plaza Building RedNew Richmond Plaza Building lease is not complete. 411 will not close until final resolution of lease Board of Elections lines consolidation Green Offsite storage contracts consolidationXX Yellow Total Savings/Avoidance7,49211,02566,083 Cost Avoidance7851,3067,331 Cost Savings6,7079,71958,752

8 expect the best CIO Status Report – FY04 Financials Internal Service Funds

9 expect the best CIO Status Report - FY04 Financials

10 expect the best CIO Status Report – Budget Amendments 2005 VITA Budget Amendments Summary (Includes GF funding requirements for FY 2005 and FY 2006)

11 expect the best CIO Status Report – Rate Approvals JLARC Rate Proposal - October Rate Correction – Covanet$1.2M Product Line Rate Adjustments$0.9M New Service Rates$1.0M Total$3.1M

12 expect the best CIO Major IT Project and Procurement Actions Since Last ITIB Meeting Project Development Approval State Board of Elections: Virginia Election and Registration System (VERIS) Contract Approval Department of Corrections: Automated Offender Sentence Calculation System Project Suspension or Resumption Approval Resumption - Department of Transportation: Financial Management System II Upgrade – Phase I Project Suspension - Department of Accounts: Lease Accounting System Replacement NOTE: See the October ITIB Major IT Project Status Report (provided separately) for a complete status of the Commonwealth major IT project portfolio

13 expect the best Major IT Project Activities Since Last ITIB Meeting Project Management Standard CIO posting approval recommendation today (October 13) for five day Board review Independent Verification and Validation (IV&V) CACI now under contract, developing Commonwealth IV&V program Next steps: –Complete survey of existing agency IV&V programs –Prioritize current major IT projects requiring IV&V –Conduct IV&V on identified projects by 1/12/05 –Validate Commonwealth IV&V program –Implement continuing IV&V for major IT projects

14 expect the best CIO Status Report CIO Objectives Report Conflict of Interests Training (Officers, Board & Employees) E-911 and GIS Awards SWAM Plan – Susan Woolley

15 expect the best VITA’s approach to building SWAM relationships

16 expect the best Background Recent disparity study concluded low utilization of women-owned and minority businesses across the Commonwealth Barriers identified by MWBE for doing business with Commonwealth Limited time to prepare proposal Limited information on pending projects Contract too expensive to bid Size of the contracts bid

17 expect the best VITA Background VITA has historically supported SWAM enterprises through a variety of strategies: Including SWAM objectives in solicitations Leveraging eVA’s broad SWAM reach Tracking of VITA spend with our SWAM industry partners and subcontractors Utilizing SWAM suppliers for small purchases and services to VITA Participating in Virginia Business Opportunities Despite these efforts SWAM utilization has been under 5% of external VITA spend

18 expect the best VITA’s SWAM Program View SWAM as an untapped source of innovation Develop a sustainable program including Setting objectives Removing barriers Fostering two-way communication Identifying opportunities

19 expect the best Tapping into entrepreneurial innovation Create SWAM policy Include procedures for solicitations Establish goals Providing training Inform SWAM suppliers of opportunities SWAM resource on VITA web site Provide data Hire SWAM outreach officer Formalize recognition of subcontractors Develop small purchase procedures and other methods Solicit feedback Monitor progress Recognize exemplary performance Benchmark effectiveness Raise Awareness Improve Access Encourage Feedback

20 expect the best Objectives Increase SWAM participation to 40% - ($3.2M over prior year) of SWAM- eligible expenditures Encourage the certification of SWAM businesses with DMBE and registration on eVA Provide supplier outreach that increases collaboration with SWAM community

21 expect the best Beyond 2005 Develop programs that recognize achievement of suppliers procurement personnel and mentor suppliers Develop ad hoc VITA council for procurement feedback and identification. Leverage assistance of DMBE Provide long-range procurement information to enhance education, preparation, networking