1. Tallahassee Area Chapter of NIGP September 14, 2006 DMS Office of Efficient Government

2. 2 Business Case Gate 1 Procurement Gate 2Gate 3Gate 4 Change Management Contract Management Post Implementation E.O. 2004-45 / Center for Efficient Government Project Gate Management Process (Historical Only) Stage 1Stage 4Stage 5Stage 3Stage 2 Monitor Current Projects New Projects

3. 3 Chapter 2006-224, Laws of Florida Florida Efficient Government Act of 2006 Creates new sections 287.0571 to 287.0574 Focuses on “outsource” of services –Vendor to provide a service, in whole or in part, or an activity, as defined in section 216.011(1) –Agency retains the responsibility and accountability for the service or activity –Transfer of management responsibility for the delivery of resources and the performance of those resources

4. 4 New Council on Efficient Government Tom Lewis, Jr., DMS (chair) Charles Bronson, DOACS David Clarke, Rinker Materials Luci Hadi, DCF William Johnson, Coca-Cola Enterprises Ernest Spinner, BFB Enterprises Jim Zingale, DOR

5. 5 Council Duties Develop best-practice standards and processes for creating and evaluating business cases to outsource Review agency business cases to outsource more than $1mm/FY and as requested by the Governor or any agency head For business cases to outsource exceeding $10mm/FY, provide advisory report to the agency, Governor, and Legislature before the agency proceeds with solicitation Develop, in consultation with AWI, guidelines for assisting employees whose jobs are eliminated as a result of outsourcing Report annually on innovative methods of delivering government services which would improve the efficiency, effectiveness, or competition in the delivery of government services Report annually on each agency’s outsourcing efforts

6. 6 Functional Definitions of Business Case “Justifies the Proposal to Outsource” A document developed towards the end of Phase 1 - Concept, to establish the merits and desirability of the project and justification for further project definition (Project Phase 2). A document used to justify the commitment of resources to a project. A document that defines why the project is required and what the change is to be. Note 1: It should include an outline of the project's objectives, deliverables, time, cost, technical, safety, quality and other performance requirements, and the major project risks and upside opportunities. It might also include information on the competitive impact, resource requirements, organizational impacts, key performance indicators and critical success factors of the project and its outcome. Note 2: The Business Case should be "owned" by the project's sponsor, the person responsible for defining and developing the project against the business case. A document which provides justification for the commitment of resources to a Project or Program. Information necessary to enable approval, authorization and policy making bodies to assess a project proposal and reach a reasoned decision. The section of the program definition statement which provides the justification for the commitment of resources to a program. The business case should demonstrate that the most cost-effective combination of projects has been selected when compared with costed alternatives. It also provides the wider context and justification for infrastructure investment and costs of implementing policies and standards.

7. 7 Business Cases Use LBR Schedule XII for Now 287.0574(4): “In order to reduce any administrative burden, the council may allow a state agency to submit the business case in the form required by the budget instructions issued pursuant to s. 216.023(4)(a)11., augmented with additional information if necessary, to ensure that the requirements of this section are met.” Council may develop new forms and processes

8. 8 New Law Also Reflects Policy Commitment to PMI For any negotiated contract exceeding $10mm/FY (not limited to outsourcing contracts), agency must include on negotiating team a Project Management Professional certified by Project Management Institute (PMI) $500,000 to DMS to develop PMI-certified project managers within agencies

9. 9 Project Management Discipline in the Public Sector – Florida and Elsewhere Rule 60DD-7 (Dec 04) incorporates PMI’s Project Management Body of Knowledge (PMBOK®) for State IT Life Cycle Policy Standard that complements PMBOK is UK Office of Government Commerce’s (OGC) PRINCE2™ (2005) (see www.ogc.gov.uk) www.ogc.gov.uk OGC is influential –TRW/CIOs adopting Information Technology Infrastructure Library (ITIL) –Structured Gateway Review process: good questions to ask!

10. 10 Office of Efficient Government Contact Information Ronald Baker, OEG Liaison (850) 414-6755 ronald.baker@dms.myflorida.com Fred Springer, Interim Executive Director (850) 410-0978 fred.springer@dms.myflorida.com