2. 1 expect the best www.vita.virginia.gov Improving How We Do Business in IT: VITA’s SWAM Initiative & Procurement Reform Lemuel C. Stewart Chief Information Officer Dept. of Business Assistance Economic Development Seminar June 23, 2004

3. 2 expect the best www.vita.virginia.gov Support for Improving SWAM Opportunities 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

4. 3 expect the best www.vita.virginia.gov Support for Improving Procurement Other findings in technology-related procurement –Virginia does not purchase IT cost-effectively –Processes were slower than the pace of technological change –Unreasonable terms and conditions (Ts and Cs) –Virginia would rank 50 th if it was in S&P500 –State has tremendous opportunities to leverage buying power and embrace and implement better solutions and tools IT Procurement Reform was launched during a time of major change in IT and state government

5. 4 expect the best www.vita.virginia.gov Purpose To develop a new technology procurement business process based on best practices. Desired state: –Leveraging Virginia’s ample buying power –Increased access and opportunities for SWAM suppliers –Increased use and usefulness of statewide technology contracts –Fast and flexible processes –Positive relationships with customers and partners –Value-oriented, not price-oriented –Business-driven and enterprise-oriented –Fair, standardized contract vehicles –Making Virginia much easier to do business with!

6. 5 expect the best www.vita.virginia.gov Results Centralized IT procurement Solutions-based RFP approach –Limited terms and conditions as mandated Emphasis on partnerships –Encourage diversity of subcontractors –Innovative public/private partnerships Faster, simpler, less expensive procurements SWAM Web site and business intelligence

7. 6 expect the best www.vita.virginia.gov

8. 7 expect the best www.vita.virginia.gov

9. 8 expect the best www.vita.virginia.gov VITA’s SWAM Program Developing a sustainable program requires Setting objectives Removing barriers Fostering two-way communication Identifying opportunities

10. 9 expect the best www.vita.virginia.gov Looking Ahead Create SWAM policy Include procedures for solicitations Establish goals Providing training Inform SWAM suppliers of opportunities 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

11. 10 expect the best www.vita.virginia.gov Contact Information Please visit http://www.vita.virginia.gov tohttp://www.vita.virginia.gov learn more about our procurement efforts Lemuel C. Stewart, Jr. Chief Information Officer of the Commonwealth Virginia Information Technologies Agency lem.stewart@vita.virginia.gov (804) 343-9002