0. First Annual Federal Capital Planning and Investment Control Conference
A 360 Degree Perspective on CPIC: Insights, Challenges, Best Practices, and Successes
Washington, DC
July 22, 2008

1. Session Agenda
CPIC and Portfolio Management in the Context of the Federal Budget Process
Introduction of Panelists
Insights on CPIC and Portfolio Management
HHS HRSA – Small Agency Perspective
GSA – Large IT Portfolio Perspective
JPDO NextGen – Multi-Agency Program Perspective
OMB Reviewer Perspective
Q&A with Panel
Sanjay

2. Initial Agency Submission
The federal budget formulation and execution processes drive capital planning and portfolio management requirements
Federal Budget Process - Formulation
Federal Budget Process – Execution
Plans
Performance
Strategic
Initial Agency Submission
to OMB
OMB Decisions
Final Preparation of
President’s Budget
REQUESTING MONEY
CCA
GPRA
SPENDING MONEY
Apportionment
Funds Control
Financial Management
Program Budgeting
IT Capital Planning
Agency IT Portfolios
Performance Reporting
PART
(Program Assessment Rating Tool)

3. The OMB Circular A-11 requirements for all budget proposals (including IT investments) reflect the required elements of sound portfolio management and CPIC practices
Budget proposals should result from a comprehensive system that integrates analysis, planning, evaluation, & budgeting
REFLECT
CONSIDER
President’s Policies (e.g. PMA)
OMB’s spring guidance memoranda
The judgment of the agency head regarding programs/activities proposed to meet the agency’s mission, goals, & objectives
Scope
Content
Performance
Quality
The effect changes (i.e., of demographic, economic) beyond the budget year
The impact of program levels / changes in program delivery methods, on operations & administration
Appropriate roles for Federal, State, & local governments & the private sector
Consistency with strategic & annual performance plans .
30.1 What should be the basis for my proposals?
30.2 What is the scope of the policy estimates?
30.3 What economic assumptions should I use when I develop estimates?
30.4 What assumptions should I make about growth in agency workload?
30.5 How do I develop unit cost information?
What did the last Spring Guidance memos include:
The National Strategy for Homeland Security;
Budget and performance integration management initiatives (effectiveness ratings for apx. 20 % each agency’s programs)
The President's Management Agenda;
Funding guidance
Evaluation metrics for several major crosscutting, government-wide functions and
Consistency with Strategic & Annual Perf. Plans – GPRA Connections
The impact of program levels and changes in program delivery methods, on operations & administration
Can use the mismanagement of the EFPLS program at HHS OCSE

4. Addressing these requirements takes on different forms and presents both common and unique challenges across different types of federal programs and agencies…
Joseph Roach
Director, Division of Capital Planning and Project Management
Office of Information Technology, Health Resources and Services Administration / HHS
John Prahm
Director, IT Portfolio Management Division
General Services Administration
Kristen Burnham
Director, Portfolio Management Division
Joint Planning and Development Office for the Next Generation Air Transportation System
Select insights from an OMB perspective

5. Agenda HRSA Overview Capital Planning at HRSA
Challenges in Implementing Capital Planning at HRSA
CPIC successes at HRSA
Growing and Maturing the CPIC Process
Review agenda.
Why are we doing this? The service we really want to provide is more than just demonstrating how the tool works, its about maximizing its effectiveness to produce desired results – a sound business investment in IT projects. Blending of the technical support (provided by Ryan & the eCPIC team) with some of the implementation support and exposure to day-to-day CPIC activities that folks like myself have experienced by working hands-on with agencies on a day to day basis…

6. HRSA Overview HHS Op. Div. Budget Authority ($M) FY20081 IT Budget
Centers for Medicare & Medicaid Services
615,535
Administration for Children & Families
47,345
42.785
National Institutes for Health
29,547
Health Resources & Services Administration
6,990
55.265
Centers for Disease Control & Prevention
6,197
Indian Health Services
3,497
95.679
Substance Abuse & Mental Health Services
3,234
66.602
Food and Drug Administration
2,270
Administration on Aging
1,413
1.463
Agency for Healthcare Research & Quality -
32.505
HRSA provides access to health care for underserved and disadvantaged populations
Provides grants to states to treat at risk individuals
Oversees the training and staffing of healthcare providers
Provides oversight for tissue and organ donation and monitors malpractice suits nationwide
Benefits of Capital Planning at HRSA
IT is an enabler for programs to meet their business needs
Capital Planning allows us to measure how well IT is being planned for, managed and achieving results
The HRSA IT portfolio includes the following investments:
2 Majors (annual IT costs greater than $10M)
1 Tactical (annual IT costs greater than $3M, but less than $10M)
19 Supporting (annual IT costs greater than $100k, but less than $3M)
(1) HHS Office of Budget FY2009 Budget In Brief
(2) Office of Management and Budget Report on Information Technology (IT) Spending for the Federal Government for Fiscal Years 2007, 2008, and 2009 6

7. Select Cycle at HRSA 1
HRSA has been refining the Select Cycle for several years
All investments greater than $100K go through an internal review cycle at HRSA
HRSA tailors business case requirements for investments according to their IT Portfolio Classification (Major, Tactical or Supporting)
Major/Tactical investments also participate in a Departmental review
Training and individual assistance is available to all PMs that are interested in improving their business cases
Select evaluation is conducted through a critical partner review approach
Subject matter experts, including governance board reps, score business cases on their area of expertise
The CPIC team consolidates scores, analyzes results, and presents the ranked IT portfolio
Overall scores are reviewed and discussed by governance boards before being finalized
Highest tier governance board recommends IT Portfolio to the HRSA Administrator, which feeds IT spending plan decision-making
Develop Screening and Scoring Criteria 2
Create or Update Business Cases 3
Review and Score Business Cases 4
Analyze, Compare, and Rank Investments 5
Approval of IT
Portfolio by Governance Boards and Administrator

8. Control Process at HRSA1
HRSA has completed one full year of Periodic Reporting (Control Review)
HRSA has received praise on our maturing Capital Planning procedures from the Department
Criteria Maturity
Originally PMs reported Cost and Schedule only on a quarterly basis
Reporting criteria now includes Security and Performance Measure reporting on a quarterly basis
Security criteria is aligned to the Security Team’s requirements for ease of reporting by PMs
Increased reporting on Performance and Cost/Schedule milestones has improved Select scores in those areas
Results Reporting
The CPIC team provides Scorecards and Corrective Action Plans to create a feedback loop for PMs
Governance boards utilize score trending and variance analysis to understand how individual investments and the overall IT portfolio are performing
Investments that show a downward trend work with the CPIC team and governance boards to improve performance
Project Managers (PMs) update data in portfolio management tool 2
CPIC analyzes data to identify gaps and assign an overall score 3
PMs create Corrective Action Plans (CAPs) 4
CPIC creates Scorecards with CAPs and results briefings 5
Results are presented to two tiers of Governance Bodies

9. HRSA’s IT Clearance Process1
Information entered into requisition system
Overview:
HRSA has instituted an internal control process to monitor, review, and correct IT contracts before they are released to the public
Ensures that necessary contract language is included to meet all Federal, HHS, and HRSA IT requirements
Leverages the input of Subject Matter Experts (SMEs) on SOW areas
Benefits
Integrates CPIC into the procurement cycle
Mechanism to ensure that IT procurements are mapped to an approved Business Case
Provides an opportunity for PMs to begin planning for new IT investments outside of the scheduled CPIC cycle 2
OIT assigns/verifies IT investment number and determines reporting requirements 3
SOW entered into collaboration tool for review and comment by appropriate SMEs 4
PMs are contacted with required changes to SOWs 5
SOW is cleared and sent to Contracting for release

10. Challenges and Solutions of Capital Planning at HRSA
Challenge Area
Description
Solution
Governance
Enterprise needs are often different from those of Programs, and it can be difficult to accommodate both
HRSA OIT tailors the Select and Control processes to best meet the needs of PMs and Governance Bodies
Compliance-driven Activities
Some non-technical PMs do not understand the value of Capital Planning and see it as a compliance-based activity
HRSA OIT is proactive in streamlining data collection and assisting PMs in meeting requirements to alleviate PM burden, wherever possible
Limited Financial and Human Resources
Finding a way to manage small- and medium-sized investments without over-burdening limited resources is an on-going challenge
HRSA OIT encourages (and requires) PMs to investigate and leverage government-wide, Departmental, or enterprise-HRSA solutions to meet their business needs

11. Developed CPIC Process Earned Value Management
CPIC Successes at HRSA
What Has Been Done
Impact
Developed CPIC Process
Initiated both Select and Control phases based on best practices
Process tailored to HRSA’s unique needs
HRSA now actively managing and monitoring the IT portfolio
Insight into individual investments increased at all levels
Organization has embraced process as meaningful 1
Investment data reviewed by agency executives on a regular basis
Executives realize greater transparency from PMs
Increased importance of CPIC in budgeting process
IT Governance
Established and chartered two separate IT Governance review boards
Conduct regular meetings to review IT Capital Planning data 2
Earned Value Management
Developed tailored EVM guidance and reporting process
Institutionalized a Baseline Change Request process
Forged routine communications with Contracting on EVM implementation and use
Elevated understanding of EVM principles
Improved control over investment baselines and IT Spending in HRSA contracts
Incorporated EVM reporting into Quarterly Control process for all investments greater than $100K 3 11

12. Growing and Maturing the CPIC process at HRSA
Next Steps
Continue to improve the Periodic Reporting process. Find a way to collect better data for decision-making without increasing PM burden
Increase coordination between Budgeting, Acquisition, and IT for better re-use of existing information
Mature IT Project Management through use of a standardized management framework
Leverage existing Governance structures for Capital Planning to support other IT functional areas, such as Enterprise Architecture, Security, and IT Project Management

13. Questions?

14. CPIC at the General Services Administration (GSA)
CPIC Conference
July 22, 2008

15. Agenda Objectives of implementing CPIC at GSA CPIC at GSA
Challenges within the GSA CPIC Environment
Key Deliverables and Analysis
Results of enhancing CPIC processes at GSA

16. Objectives of implementing CPIC at GSA
Reduce Complexity
Reduce complexity of data management
Emphasize the impact of a complex (non-standard) environment
Decrease Redundancy
Streamline and standardize data call templates
Reduce level of effort required by Service and Staff Offices
Collapse information collection and reporting into one tool
Enhance Communication
Provide visibility into the GSA IT Portfolio
Allow for more informed decisions regarding the funding of the Agency’s IT Initiatives
Develop a useful repository for portfolio data.
This repository should serve both short-term needs of data collection as well as long-term needs of benchmarking maintainability.

17. CPIC at GSA
Overview
GSA Select/Budget processes designed to (1) align with Agency strategic mission and business needs; and (2) link to OMB’s annual budget submission process.
Designed Executive Business Case Template
Created Customized Guidance
Delivered Training
Constructed Exhibit 300 Scoring Framework
GSA Control processes for monitoring initiatives.
Enhanced monthly EVM and financial analysis reporting
Designed Quarterly Control Review Template
Created Customized Guidance and Quick Guides

18. Challenges within the GSA CPIC Environment
Challenges Description
Federated environment
Two primary business lines – FAS and PBS
Geographically disbursed regional offices
Complex and diverse mandates
Managing partner for 5 major eGovernment initiatives and 2 government-wide lines of business (LoB).
Government-wide policy function, such as the Federal Acquisition Regulation, the Federal travel/per diem rate, and others.
Funding and organizational challenges
Mix of appropriated and non-appropriated funding sources.
Recent reorganizations within FAS and OCIO Federal Acquisition Service.

19. Key deliverables and analysis
What Was Done
Customized Guidance
Designed Ex 300 and Ex 53 Guidance in accordance with the OMB Circular A-11
Utilized eCPIC screenshots of relevant workflows within the Guidance to demonstrate the use of the tool within the process
Integrated Training
Offered CPIC training sessions and brown bags that were facilitated by an instructor
Integrated eCPIC training with CPIC processes as a side by side demonstration
Impact 2 1
Executive Business Case
Developed a uniform business case template for data collection in preparation for Select activities 3
Ease of use in completing necessary OMB requirements
Communicated step-by-step process to users
Integration of budget submission training with an accompanying demonstration of the eCPIC modules gives the user a more comprehensive understanding of eCPIC functionality
Reduces duplication and the burden of data collection through the reuse of similar OMB required fields and information

20. Key deliverables and analysis
What Was Done
Exhibit 300 Scoring Framework
Created a Scoring Framework to assist in the development of the Exhibit 300s for OMB Submission
Bi-weekly scoring sessions with Subject Matter Experts provided feedback to Project Managers and Senior Management through the use of eCPIC reports
Control Review Template
Developed a uniform control review template for data collection in preparation for Quarterly Control Review activities
Impact 5 4
EVM Reporting Enhancements
Developed new monthly EVM reporting and Baseline Change Management processes 6
Increased transparency of Agency IT Initiatives
Enhanced focus on quality of Exhibits
Enhanced communication of necessary information for improving their Ex 300 submissions
Reduces duplication and the burden of data collection through the reuse of similar OMB required fields and information
Reduces corruption of earned value data
Reduces number of tools used to report information
Enhances communication and decision making through the use of baseline table change requests
Increases controls over baselines

21. Results of enhancing CPIC processes at GSA
Better informed decisions through better quality data
Reduction in duplicative and burdensome data calls
Increased transparency of Agency IT Initiatives
Enhanced communication through integrated guidance, scoring frameworks, and standardized reporting
Simplified CPIC tool environment

22. Portfolio Management and the Next Generation Air Transportation System
Kris Burnham
Director, Portfolio Management
Joint Planning & Development Office
July 22, 2008

23. NextGen Overview
Comprehensive transformation of the air transportation system
Meet future demand
Reduce delays
Be safe, secure, and environmentally responsible
Goal is transformation by 2025
Five federal agencies are partnered with the Joint Planning and Development Office
FAA/DOT, NASA, DHS, DoD, DoC

24. NextGen Portfolio Overview
Portfolio will ultimately reflect incremental changes in operations, technology, and the roles of humans to achieve the 2025 vision.
Today, we have a baseline (more or less) and an end-state vision, with many potential alternatives for achieving it.
Investments will be required from federal, state, and local governments, and the private sector.
Near-term federal investment approaches $10B, with a large portion in research and development.

25. Portfolio Management— Relevance to NextGen
Building Discipline
Refining the vision by measuring it and assessing alternatives
Driving decisions
Reporting progress against performance goals
Managing complexity
Translating multiple languages
Ensuring a rational basis for large investments

26. Challenges SCOPE!! Number and diversity of stakeholders
Maturity of the operational and architectural visions
Leadership/decisionmaking ambiguities
Building a business case that speaks to different audiences
Lack of clarity around performance objectives
Etc.

27. Accomplishments Baselining the portfolio
Building funding momentum for R&D and early implementation
Assessing funding gaps and their importance
Identifying high value cross-agency activities
Establishing a framework for integrated portfolio management and analysis—a work in progress

28. Looking Ahead
Work with architects and agencies to analyze alternatives, refine the end-state, and define roadmaps.
Build/improve feedback loops between R&D results and investment decisionmakers.
To strengthen the rationale for stakeholder investment, more fully analyze the complementary nature of investments in air traffic infrastructure, airports, and the aircraft.

29. Select Insights from the OMB Perspective

30. Insights from the OMB Perspective: Is CPIC all about the Exhibit 300
Insights from the OMB Perspective: Is CPIC all about the Exhibit 300?...No.
Discussions of CPIC and Portfolio Management often revolve around the Exhibit 300 itself, however, the Exhibit 300 is one mechanism that documents CPIC maturity for investments and agencies/programs…
The Exhibit 300s are the outgrowth of and demonstrate the health, maturity and compliance of an agency’s Capital Planning and Investment Control (CPIC) process with the Clinger Cohen Act and Circular A-130 (Management of Federal Information Resources)
The Exhibit 300 is intended to be management tool to monitor investments and should be updated as new information becomes available and as the agency’s portfolio matures 30

31. Internal communication & coordination
Insights from the OMB Perspective: Common Agency CPIC Challenges
Internal communication & coordination
Inconsistent, infrequent, imprecise, or absent coordination & communications protocols, SOPs & information dissemination
Poor coordination between CFO, CIO, individual bureau/program budget shops, or partner agencies, etc.
Internal tracking & reporting systems and SOPs, incl. financial systems
Poor internal program tracking systems
Non-standardized program performance management & monitoring SOPs & systems
Inadequate or legacy financial/accounting/cost accounting/cost management systems and processes
Internal communication of strategic and performance plans
Inconsistent communication & buy-in regarding GPRA strategic and annual performance plans, PARs, PART follow-up
Performance measurement & management.
Unclear performance goals, imprecise performance metrics, unclear accountability structure for performance metrics
Absence of adequate information systems to collect, track & coordinate performance data across the portfolio
Budget & performance integration
Absence of internal processes to collect, determine, analyze & tie resources to specific program performance goals & measures 31

32. Q&A with Panel