1. Transforming Information Technology in the Commonwealth
Presentation title
Transforming Information Technology in the Commonwealth
Diane Horvath
Manager, Legal and Legislative Services
Virginia Information Technologies Agency
Joint Commission on Technology & Science
May 4, 2005

2. Progress to Date Complete?
Presentation title
Progress to Date
Complete?
Created IT “Utility” Formed a new organization in 4 months Defined organization, services, & culture
Consolidated Agency IT Resources
Transitioned IT assets, contracts, and support staff from
90 Executive Branch agencies in 18 months
Completed Procurement Reform
Moved from traditional procurement to strategic sourcing
The 2003 General Assembly passed landmark legislation, creating a single, IT “utility” for infrastructure for the Commonwealth of Virginia. The first task was to consolidate 3 existing agencies—the Department of Information Technology, Department of Technology Planning, and Virginia Information Providers Network—to form VITA, the Virginia Information Technologies Agency. The legislation was enacted in late February 2003, and VITA opened its doors on July 1, 2003, just four months of extensive planning, organizational design, new service development, and an extensive communications and culture effort.
The next phase was to consolidate the IT infrastructure staff and resources of 90 executive branch agencies, with the goal of creating a single, centralized IT utility for most of the executive branch (higher education was exempt, as well as a number of unique agencies, like the Virginia Port Authority). The consolidation was completed in three phases, per the legislated mandate: small agencies by January 1, 2004; medium agencies by July 1, 2004; and large agencies by January 1, 2005.
VITA worked collaboratively with agency management and IT executives to ensure all service levels were maintained, all legislative deadlines met, compliance with security mandates at the federal and state levels, and no disruption of services. VITA met all of its commitments and finished the transition about a month early—all without start-up funding or additional staff.
In January, VITA’s Chief Information Officer Lemuel C. Stewart and the Information Technology Investment Board that oversees VITA and all technology investment in the Commonwealth, launched Transformation. Transformation is about truly transforming service delivery to customers and citizens by consolidating, standardizing, and leveraging a common infrastructure. And that is where we are today—in the initial stages of Transformation.
Met All Commitments
No disruption of services
Launched Transformation
Initiated true transformation of service delivery by consolidating,
standardizing, and leveraging a common infrastructure

3. IT Consolidation in Virginia
Presentation title
IT Consolidation in Virginia
Baseline (July 1, 2003)
In July 2003, VITA included 3 agencies (the ones that were abolished to create VITA), and supported five locations (VITA Operations Center in Richmond, the VITA satellite office in Roanoke, the 9th Street Office building, the Governor’s Office, and the Executive Mansion). VITA was responsible for about 600 desktops and laptops, and about 100 servers. On July 1, 2003, VITA employed 383 FTEs.
383 3
100 5
600
Orgs.
Locations
PCs
Servers
Employees

4. IT Consolidation in Virginia
Presentation title
IT Consolidation in Virginia
VITA Today (Including Baseline) 90
1,497
60,000
3,000
1,081 59
543
986
VITA today is comprised of 90 organizations. Our actual total number of agency customers is 85, due to action by the General Assembly in 2004 and 2005 to abolish, merge, or create agencies. We support nearly 1,500 locations throughout the Commonwealth, 60,000 desktops and laptops, and 3,000 servers. To date, we have 1,081 classified employees, plus about 100 contractors and P-14s, for a total of nearly 1,200 employees statewide. About 90 percent of the resources (people) transitioned in the last six months of the integration process, while two-thirds of the organizations we support transitioned in the first 12 months.
15,932
192
Orgs.
Locations
PCs
Servers
Employees

5. Locations Supported by VITA As of July 1, 2003
Presentation title
Locations Supported by VITA As of July 1, 2003

6. Locations Supported by VITA As of January 1, 2005
Presentation title
Locations Supported by VITA As of January 1, 2005

7. Value to the Commonwealth
Presentation title
Value to the Commonwealth
Improved governance and oversight of IT investments
IT Investment Board and CIO in place and structure is working
Prioritized technology investments across the Commonwealth
Improved IT project oversight and management through the Project Management Division
Completed refresh of the 4-year, statewide IT strategic plan in April 2005
Developed the Enterprise Business Architecture in April 2005
While VITA is in the early stages of completing the overall IT consolidation effort, we have made some great strides.
With the establishment of the IT Investment Board and the CIO position, and strengthening project management and project oversight activities, governance of IT investments has improved. To date, there have been no major IT project failures.
Procurement of all IT-related goods and services is centralized into VITA, which will help agencies and all public bodies that can purchase off of state contracts (schools, libraries, localities). When we include all that spend in one, centralized place, VITA is positioned to provide great volume discounts and added value.
In fiscal year 2004, VITA provided $16.7 million in twenty cost-savings and cost-avoidance initiatives, with nearly $28 million in savings anticipated for fiscal year VITA initiated another fifteen cost-savings and avoidance initiatives to help offset the 5.52 percent administrative fee paid by agencies for IT goods, services, and support.
Through a managed partnership with Virginia Interactive, VITA provides 100 interactive, online services for citizens and businesses and hosts virginia.gov, the state portal. In 2004, the portal was accessed about 32 million times, with about 33 percent of those page views and downloads occurring outside of traditional government office hours. Furthermore, VITA has provided about $8 million in cost savings to localities, schools, and libraries through use of state contracts, and has protected the Commonwealth against destructive viruses and worms, such as Mydoom.
As a result of these IT management efforts, VITA and Virginia have received much national recognition. Most recently, Virginia was cited as the best managed state by the Government Performance Project earlier this year. Virginia tied with five other states for the top grade in information management. Virginia was also ranked 3rd nationally in the Center for Digital Government’s 2004 Digital States Survey and the 2004 Best of the Web contest. Virginia also received two National Association of State CIO Recognition Awards in 2004 for our efforts and achievements with wireless 911 services and our GIS programs.

8. Value to Citizens
Provided 100 interactive government services online through Virginia Interactive
32 million accesses to virginia.gov portal in 2004
Nearly 35% of accesses occurred outside usual business hours
11,000 pages and 100 interactive services
Provided $1.5 million in free services to State Board of Elections
Provided $1.3 million annually in free Web design, consulting, accessibility, and hosting services for agencies lacking resources

9. Value to Localities & State Agencies
Provided $8 million in cost savings to localities
Launched outreach program to localities
Established E-Rate accounts for 36 school districts and library systems
Supported agencies affected by Capitol Renovation project
Met or exceeded all performance availability targets since VITA’s creation

10. VITA sourcing strategy
Presentation title
VITA sourcing strategy
VITA and Agency collaborate to meet specific needs
Direct supplier relationship
with Commonwealth -
Enterprise agreements
Consult
Lead
Collaborate
Work on specific high-impact initiatives
VITA provided framework
Oversight
Full Service
Provide end to end assistance
Utilize best resources
Actively manage
Increasing
Total Value
(Risk & TCO)
Self Service
Provide tools, capabilities that are easy to access
“e-enabled” & training
Monitor
Reduce resource investment
Enable
Provide
Partnership
Develop efficiencies
Statewide agreements
Prime contractor manage subs
Manage cycle time
Cooperative procurements
or e-enabled efficiency
Prime contractor
Statewide agreements -
Prime manages subs
Increasing degree of Commonality

11. Evolution of Funding: 2004 – 2006 Biennial Budget
Presentation title
Evolution of Funding: 2004 – 2006 Biennial Budget
Anticipated Rate Changes
FY $9,900,000
FY 2007 $10,900,000
FY $5,300,000
NOTES:
1 Member amendments were endorsed by the ITIB, Secretary of Techology, and Governor prior to the patrons' submission.
2 JLARC recommendations eliminating GF for 4 of the 5 amendments were adopted by the budget conferees and the full General Assembly.
3 The HAC recommended deleting $6.1M GF from Central Appropriations intended to repay loan. GA-approved language directs VITA to: (1) establish charges
to recover from agencies in FY 2006 and 2007 the actual amount, out of $6.1M, spent in FY 2005 or (2) determine another alternative--not using GF--to repay
the treasury loan for start-up expenses.

12. Transition from Operations to Governance
Presentation title
Transition from Operations to Governance
FY04
Operations
FY05
Operations/
Governance
FY06
Governance
Enterprise
VITA / Enterprise
VITA

13. Mature Enterprise Security Program
Presentation title
Mature Enterprise Security Program
Incident Management
Secure Infrastructure
VITA Critical Infrastructure and Business Continuity
Information Security Training and Awareness
Even though organization is separated by categories, it is important to note that all are connected and must work together.
Security Policies, Standards and Procedures
Risk Management

14. PPEA Update: Detailed Review Stage
Conceptual Review Completed – November 2, 2004
Secretary Huang approved the “Course of Action Recommendation” for Detailed Review :
Two Tracks
Infrastructure… Enterprise Applications…
IBM CGI-AMS
Northrop Grumman IBM

15. Infrastructure Overview
Infrastructure: The hardware, networks and associated services and staff required to support the information systems that agencies use to operate and provide services to citizens.
Includes:
Mainframe computers, servers and desktops
Voice and data networks
Operating systems, and productivity software
Database management systems
Data center facilities
Customer care center (help desk)

16. Enterprise Applications Overview
Enterprise Applications: Those business processes and associated software applications that are used across state government to provide management and administrative support in the agencies.
Includes:
Human Resource Management
Financial Management
Accounting
Budgeting
Procurement
Others to be determined

17. Infrastructure Current Status
Milestone
Start Date
End Date
Status
Comments
Program Planning
1/10/2005
1/27/2005
Develop plan for the detailed review of the VITA PPEA infrastructure proposals. Conduct initial planning meetings. Establish Infrastructure PPEA Steering and Finance Review Committees.
Due Diligence
4/15/2005
Establish the base case/current processes and automated systems which support them. This task has been COMPLETED.
Draft SOW/SLA/Ts & Cs
3/28/2005
5/2/2005
Develop Statements of Work (SOW), Service Level Agreement (SLA) expectations and draft terms and conditions. Provide to proposers for completion of detailed proposals.
Develop Detailed Proposals
5/3/2005
6/20/2005
Proposers develop detailed proposals in response to base case, SOW/SLA and Terms & Conditions
Review Detailed Proposals
6/21/2005
7/25/2005
Commonwealth team reviews detailed proposals
Negotiate Comprehensive Agreement
7/26/2005
10/12/2005
Negotiate Comprehensive Agreement (CA) for infrastructure services.

18. Enterprise Applications Current Status
Milestone
Start Date
End Date
Status
Comments
Start-up
3/22/2005
4/11/2005
Develop Plan for the detailed review of the PPEA Enterprise Applications proposals. Conduct initial meetings with IBM and CGI-AMS. Establish program organization, to include steering committee. COMPLETED
Due Diligence
6/23/2005
Establish the base case, including current processes and the automated systems which support them.
Draft SOW/Ts & Cs
5/2/2005
Develop Statements of Work (SOW) and draft terms and conditions, to define the services that the Commonwealth envisions obtaining from the offerors and the Commonwealth’s initial view of the legal details of the agreement.
Release Proposal Package to Offerors
The Proposal Package, consisting of the Due Diligence Data, Draft SOWs and Draft Terms and Conditions is released to the offerors
Develop Detailed Proposals
8/4/2005
Proposers develop proposals in response to base case, SOW/SLA and Terms & Conditions.
Evaluate Detailed Proposals
9/16/2005
Commonwealth team evaluates proposals.
Negotiate Comprehensive Agreement
10/12/2005
Negotiate the Comprehensive Agreement for Enterprise Applications and obtain senior management approval.
Executive Approval
The Comprehensive Agreement is signed by the Governor.

19. Enterprise Business Architecture
VITA Created the Enterprise Business Architecture to:
Understand the business of the Commonwealth
Help ITIB make better technology investment decisions
Meet concerns raised by the APA
Identify opportunities for collaboration
Council on Virginia’s Future – business owner of EBA
General Assembly Cost Cutting Caucus
- Drive development of enterprise applications in the PPEA initiative

20. Transformation Priorities
Presentation title
Transformation Priorities
In the Works: Focus on “Quick Win” cost savings & avoidances; complete PPEA Detailed Review; implement Enterprise Information Security Program; support Capital Area Renovation; consolidate contracts; increase SWAM spending; consolidate .
On the Drawing Board: Institutionalize the “build once, use many times” approach; catalyze customer-centric business transformations; identify service and savings benefits; achieve true “transparency” as the state’s IT utility; be the best practices model of IT excellence in government.
VITA is currently in the detailed review stage of four proposals received through the Public/Private Educational Facilities and Infrastructure Act of 2002, known as PPEA. The PPEA allows private sector companies to submit unsolicited proposals for major bricks-and-mortar projects, including major technology initiatives, for consideration and review by the Commonwealth.
Virginia has split the PPEA initiative into two tracks: infrastructure and enterprise applications. Infrastructure includes the hardware, networks and associated services and staff required to support the information systems that agencies use to operate and provide services to citizens.
Includes:
Mainframe Computers, Servers and Desktops
Voice and Data Networks
Operating Systems, and Productivity Software
Database Management Systems
Data Center Facilities
Customer Care Center (Help Desk)
Enterprise Applications includes those business processes and associated software applications that are used across state government to provide management and administrative support in the agencies (usually associated with ERPs)
Human Resources Management
Financial Management
Accounting
Budgeting
Procurement
VITA is wrapping up the due diligence phase for the infrastructure component to gather more detailed information on existing infrastructure and processes, and launching the due diligence effort next month for the enterprise applications initiative. VITA anticipates receiving and reviewing detailed proposals this summer, with a go/no go decision in both tracks by November 1.
Other Transformation priorities are completing the enterprise architecture and standardizing the infrastructure. Virginia uses 9 separate systems, for example. Consolidation and standardization will result in greater efficiencies and facilitate better communications across the Commonwealth.
The IT Investment Board and VITA, as well as other leaders, promote the concept of enterprise and investment thinking. The value proposition of VITA is to provide one solution that can be used by many users. In the business licensing/permitting area, for example, more than 30 agencies conduct this activity, and only 3 offer online licensing. VITA is working with the Department of Professional and Occupational Regulation to establish an enterprise licensing system that can be adapted and used by all 32 agencies that cannot afford to buy or build their own, standalone system.
Another big push in Transformation is business development and marketing. VITA has a great range of products, services, and contracts that localities, schools, libraries, and other public bodies can benefit from. The more volume VITA can generate, the lower the prices and greater the business value for our customers. While VITA is a state agency, we are funded almost entirely by customer fees. As such, we have to think more like a business and expand our revenue so that we can further expand our value to our customers.
VITA is developing shared service rates and tiers of services. In the desktop support arena, for example, agencies will be able to choose from an array of options based on their budgets and service needs. Some agencies can afford to refresh their PCs every three years; others will want to refresh every five years. Shared services will give VITA greater flexibility and capability to serve the many locations and customers located across the Commonwealth, particularly among smaller agencies that have little to no dedicated support.
Finally, security is a major priority and challenge. VITA is currently conducting security assessments of all agencies to develop a baseline of activities, increasing security awareness and training activities, and developing enterprise security capabilities.

21. What Does Transformation Mean?
Presentation title
What Does Transformation Mean?
Establish VITA as an enabler of services Operating a common, standardized IT infrastructure enables the Commonwealth to shift resources FROM infrastructure support TO service delivery to citizens and businesses
Focus on process redesign Focus on the strategic redesign of business process in state government, supporting transformations in other common operations in addition to technology
Focus on agility Ability to recognize and adopt new technology opportunities for agile and responsive service delivery to our state agency and local government customers

22. What Does Transformation Mean?
Presentation title
What Does Transformation Mean?
Better citizen service Common, shared IT infrastructure enables seamless, friendly, and responsive government service delivery to citizens and business, anytime, anywhere
Economic development opportunities Continue to help rural Virginia communities by expanding broadband deployment and establishing a data center back-up site
More cost savings to localities Local governments, K-12 schools, and public libraries have already saved $8 million by purchasing IT goods and services from state contracts. Increase future savings exponentially.

23. MULTI ENTERPRISE - VERTICAL
Presentation title
What Done Looks Like…
GOVERNANCE: Respecting Data Sovereignty
FUNDING: Incentives for Collaboration
CONSOLIDATION: Build IT Once
COMMON NETWORK: Tying Multiple Enterprises Together at the Edges
Public Safety
Education
Health & Human Res.
Administration
Transportation
Natural Resources
Commerce & Trade
Secretariats
MULTI ENTERPRISE - VERTICAL
NATIONAL
REGIONAL
STATE
LOCALITIES
HOUSEHOLD
Agriculture & Forestry
BUSINESS PROCESSES
SECURITY/ IDENTITY
APPLICATIONS
PLATFORM
ARCHITECTURE
INFRASTRUCTURE
COMMON TECHNOLOGY
COMMON
INTERFACE,
INFORMATION &
TRANSACTIONS
CITIZENS, TRADING
PARTNERS &
PUBLIC ENTITIES
Finance
“Done” is when we have a common network that ties together multiple enterprises, common technology (such as applications, business processes, security, infrastructure, and architecture), and transparency across all levels of government (national, regional, state, localities) and business areas (public safety, education, health and human resources, transportation, commerce, agriculture). The building blocks are governance, funding incentives for collaboration, and consolidation—build it once, many uses.
Source: Center for Digital Government, 2004.

24. For More Information on VITA
Presentation title
For More Information on VITA
Diane Horvath
Manager, Legal and Legislative Services