1. 1 IT Infrastructure Line of Business (ITILOB) October 29, 2007 Von Harrison, Program Manager

2. 2 President’s Management Agenda 1 st Priority: Make Government citizen-centered, results oriented and market based. 5 Key Government-wide Initiatives:  Strategic Management of Human Capital  Competitive Sourcing  Improved Financial performance  Expanded Electronic Government  Budget and Performance Integration PMA Reform Principles outlined July 10, 2002, for a citizen-centered, results-oriented, and market-based Government

3. 3 The Problem Federal spending for infrastructure as a percent of total IT appears to be higher than industry spending While almost every Department/Agency has some infrastructure improvement initiatives focused on parts of the organization or parts of the infrastructure, there is no systematic, comprehensive infrastructure optimization process across the Government We cannot accurately assess the current state of infrastructure cost efficiency across the Government Optimization experience from industry, states, and selected Agencies suggested there is potential savings while retaining or increasing service levels; and OMB determined that the government’s commodity IT infrastructure costs can be significantly reduced or avoided through a common, government-wide approach –Dramatically improved cross-agency collaboration, improved processes, and standardized architectures consistent with the Federal Enterprise Architecture (FEA) would also result from a coordinated effort

4. 4 The Cost ●Federal Government IT Infrastructure costs for FY06 were approximately $20B; expected to increase to $21.23B per year (1/3 of IT budget) ●IT Infrastructure costs are rising at a rate faster than IT as a whole, and IT budgets will remain fairly static OMB estimates Federal government could save between 16% and 27% annually on its aggregate IT infrastructure budget; between $18-29B over ten years, based on a 5-year technology refresh cycle ● Common Solution Implementation expectations: – 95% of the Agencies will adopt the common solution – $22.5B projected savings over 10 years; ~15.7% annual savings in steady state – Includes all implementation costs at PPMO and agencies ROI: LoB vs. Total Savings: $21.23B/$20M is > 1000% – RFI: industry responses confirmed estimates Savings are expected to be reinvested in Mission/IT

5. 5 Infrastructure Areas 3 Areas of IT Infrastructure 1.End User Systems and Support: Desktop, peripherals, laptop, handheld computing devices; personnel, facilities 2.Mainframes and Servers Systems and Support: All hardware and software mainframe and midrange computers (servers), grouped by platform (UNIX, Wintel, etc.); includes system management and utility software. Also personnel and facilities 3.Telecommunications Systems and Support: includes wide area networks, metropolitan area (and campus area) networks, local area networks, internet access, and remote access; local and long distance costs and equipment; videoconferencing All applications software costs (purchase, development, and support) are not considered infrastructure and are completely excluded

6. 6 IT Infrastructure LoB Vision and Goals Goal 1 - IT Infrastructure enables interoperability of functions across agencies and programs Goal 2 - IT infrastructure is optimized to enable collaboration within and across agencies, sectors, and government levels Goal 3 - Through reductions in total cost of commodity IT infrastructure, savings realized from baseline infrastructure investments will be better aligned with agency missions Goal 4 - IT Infrastructure investment is governed to achieve agency mission and government-wide goals VISION: A Government-wide optimized* and cost-effective IT infrastructure enabling core agency missions and government-wide customer-centric services. *Optimized: For purposes of this initiative means the state of being standardized, interoperable, extensible and cost effective. It does not presuppose the exact method by which this is achieved.

7. 7 IOI LoB Common Solutions Strategy 1.A standard metric for IT Optimization across government developed by Program Performance Measurement Office (PPMO) 2.Development and use of service levels and cost effectiveness measurements 3.Agency selection and use of appropriate aggregation approaches and best practices appropriate to their requirements and management 4.A goal of achieving industry average services and cost efficiency within 5 years IOI Common Solution: a market-place driven approach to outcome based performance for IT optimization

8. 8 Common Solution Framework Cost Efficiency Service Level Present Range Goal Range High Low Paths to achieve goal range could vary based on agency priorities Agency Decides Cost Efficiency Service Level Low “Present range” requires analysis Notional Industry average As Is To BeHow to get there

9. 9 IOI LoB Governance Model OMB Executive sponsor GSA Managing Partner CCB Change Control Board Departments and Agencies LoB partners PPMO Performance Measurement office Agency Advisory Group Agency representatives ESC Executive Steering Committee Technical WG Governance WG Acquisition WG

10. 10 IOI LoB Common Solutions Approach How to achieve the common solution: Business Process Solutions Menu: Centralize Consolidate Aggregate Automate Standardize Leverage Rationalize Consolidation is just one option for optimization Sourcing Strategy Options Outsource to private managed service provider Outsource to Government service provider Define and use own internal standards Agencies retain decision making authority for cost-effective investment, using the common solution set, to achieve mandated results Major Solution Set Components: Metric for each infrastructure area for government wide use Government-wide Program Performance Measurement Office (PPMO) Business process solutions Potential future fee-for-service model ----------------------------Best Practices----------------------------- Technology Acquisitions Business Practices SmartBuy SAM, ITIL Standards

11. 11 ITI Mid-Term Milestones - FY08-09 –Jan 08: Publish first government-wide report –Mar 08: Agency 5 Year optimization reports due –Feb- May 08: Develop Mainframes and Servers Services and Support Metrics and Baseline; –Jun-Sep 08: Develop Telecommunications Systems and Support Metrics and Baseline –Oct 08: Collect agency performance data against End User metrics –Oct 08-Dec 08: First Annual report of performance for End User Systems and Services due; metrics refinement –Feb-May 09: Mainframe and Server metrics refinement –Jun-Sep 09: Telecommunications metrics refinement

12. 12 Nov 07Dec 07Jan 08Feb 08Mar 08Apr 08May 08Jun 08Jul 08Aug 08Sep 08Oct 08 Final EUSS Report Jan 22 MOU Distributed Oct 07 Obtain Funding Monitor and Communicate PPMO Progress/Status Funding Complete by March 08 Prepare End User Baseline Award Contract Jan 08 Release MOU Metrics TO # 2 Package Complete Nov 07 Release RFP Nov 07 Acquire Data and Tools (Mainframes & Servers) 5-Year Plan Guidance Issued Nov 07 PPMO Agency Optimization Apr 08 Final Mainframes & Servers Report May TBD Develop Mainframes & Servers Metrics & Baseline Final Network and Telecommunication Report Sep 08 Develop Telecommunications Metrics & Baseline Award Contract May 08 Procurement Package Complete Mar 08 Release RFP Mar 08 Acquire Data and Tools (Telecommunications systems) Agency 5-Year Plans Due Mar 08 Resource Library Launched End User Metrics Refinement Agency Annual Performance Report Optimization Guide 1.0 Issued Website Redesign and Resource Library Update 3 rd Quarter Performance Report ITILoB FY 08 High Level Timeline

13. 13 Agency Benefits Standardized and independent validation of government performance in IT management –Ongoing access to Industry benchmarks and Federal metrics –Method to manage infrastructure performance –Full participation in development of metrics process Standardized metric for each infrastructure area –Quantitative analysis of best practices and reporting processes –Transparent outcome based performance standards – cost efficiency, service levels to agency decision makers Method to gain sustainable improved performance –Enhanced productivity, improved mission delivery Increased opportunities for technology infusion –Savings to provide seed money for new technologies OMB approved approach –Budget and financial oversight used to enforce validity and accuracy of agency data

14. 14 ITILOB Reporting Reports to OMB: –Annual Exhibit 300 –Annual Report to Congress –Quarterly OMB E-Gov Workbook Agency Milestones, Metrics, Agency and Work Package Resources, Resource Adjustments, Balance sheet, Agency Agreements (MOUs) Reports to OCIO: –Quarterly EVM and program report Reports to OCFO: –Monthly financial report Reports to OGP: –Quarterly IPR and QPR Other (as requested)

15. 15 Questions 1.Should investment data be divided and collected by infrastructure area? What are the advantages and disadvantages? 2.Are the IT Infrastructure areas equivalent to the combined infrastructure investment reported? 3.Should agencies begin thinking about "de- consolidating" their infrastructure, e.g creating a 300 for each infrastructure provider/center within the agency? 4.What areas of the Exh 300 are not well suited to reporting on the ITI (and/other E-Gov initiatives/LOBs)? 5.Is there duplicative reporting (e,g, OMB's Cost Saving Data Call )? How can it be combined?

16. 16 Contact Von Harrison Program Manager IT Infrastructure LoB GSA, Office of Governmentwide Policy Office of Technology Strategy Office: 202 273-0721 von.harrison@gsa.gov http://www.ITinfrastructure.gov Mailbox: it-infrastructure@gsa.govit-infrastructure@gsa.gov

17. 17 Back up Slides

18. 18 End User Systems and Support Definition: The individual components that comprise End User Systems and Support are “Clients and Peripherals” and “Help Desk”. Metrics: –Total Cost per Device –Total Cost per User –Cost per Help Desk Handle Contact –Mission Critical Service Restoration Percentage –Help Desk Speed of Answer Percentage –Help Desk First Contact Resolution Percentage

19. 19 Mainframes & Servers Services & Support Definition: The individual components that comprise Mainframe and Server Systems and Support are “Mainframes (IBM or compatible)”, “Mainframes (Other)”, “Wintel Servers”, “Unix Servers”, “Linux Servers”, “Other Midrange Servers”. Metrics: –Mainframe cost per MIPS –Mainframe availability percentage –Wintel cost per server –Wintel server availability percentage –UNIX cost per server –UNIX server availability percentage

20. 20 Telecommunications Systems & Support Definition: The individual components that comprise Telecommunications Systems and Support are “Wide Area Network (WAN)”, “Metropolitan Area Network (MAN)”, “Local Area Network (LAN)”, “Internet Access”, “Wide Area Voice (Long Distance)”, “Local Area Voice (Phones, PBX)”, “Video Teleconferencing”. Metrics: –Wide area data network cost per device –Wide area data network availability percentage –Local area network cost per active port –Local area network Local area network –Long distance telephony cost per minute –Local telephony cost per extension –Video teleconference cost per minute