1. 1 expect the best www.vita.virginia.gov Lemuel C. Stewart, Jr. Chief Information Officer of the Commonwealth January 20, 2006 Greater Richmond Technology Council

2. 2 expect the best www.vita.virginia.gov Infrastructure Partnership This is a true partnership—share in risks and rewards Good deal for the Commonwealth –New, streamlined infrastructure –Improved security Good deal for employees –New standard for employee treatment –Managed workforce reduction; no mass layoffs Good deal for citizens –Job creation –Commitment by Northrop Grumman to grow business in Virginia

3. 3 expect the best www.vita.virginia.gov What are the partnership highlights? $272 million total capital investment Job creation Excellent employment packages Extensive and proactive technology refresh New, state-of-the-art facilities in Chesterfield and Russell Counties Innovative and flexible service contract model A reliable and agile 21 st century infrastructure

4. 4 expect the best www.vita.virginia.gov Who is Northrop Grumman? One of the largest providers of IT services to the US Government Experienced systems integrator Largest technology/manufacturing private employer in Virginia Nearly 32,000 employees in 14 primary locations in Virginia Three of seven sectors are headquartered in Virginia: IT, Mission Systems, and Newport News

5. 5 expect the best www.vita.virginia.gov What facilities are proposed? Meadowville Enterprise Solutions Center –New, Tier III primary data center in Meadowville Technology Park, Chesterfield County –VITA Headquarters & NG Richmond Operations –Secondary Security Operations Center Southwest Enterprise Solutions Center –Back-up data center in Lebanon, Russell County –Enterprise help desk –Disaster recovery within 5-24 hours –Primary Security Operations Center Dinwiddie Project Support Center

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

7. 7 expect the best www.vita.virginia.gov Meadowville Enterprise Solutions Center

8. 8 expect the best www.vita.virginia.gov Southwest Enterprise Solutions Center

9. 9 expect the best www.vita.virginia.gov Southwest Enterprise Solutions Center

10. 10 expect the best www.vita.virginia.gov What are the technical highlights? Enterprise Help Desk –Single point of contact for infrastructure help and service Hardware refresh –Three-year cycle Security –Enterprise-wide security Networks –Enterprise voice and data network –100% network device refresh in years 2 & 3 Break/Fix Repair Messaging –Enterprise e-mail system –Support Blackberry enterprise server

11. 11 expect the best www.vita.virginia.gov What are the economic development highlights? $38.3 million in total estimated economic benefits to the Commonwealth Southwest –Russell Regional Business Technology Park anchor tenant –$22.8 million capital investment; creation of 433 jobs –Approx. 90% of labor pool drawn from southwest –Support of technology education at UVa Wise, including internships, student recruitment efforts, and a satellite office for the Russell facility Chesterfield –Meadowville Technology Park anchor tenant –$240 million capital investment; 631 VITA and Northrop Grumman employees Dinwiddie County –Project support center housing 34 employees

12. 12 expect the best www.vita.virginia.gov What does this partnership mean for IT businesses? Short-term: existing infrastructure contracts continue –Some contract rights will be assigned to NG –Statewide contracts retained by VITA and “shared” with NG Long-term: Northrop Grumman to assume infrastructure procurement responsibility for the partnership –May continue using existing contracts –May leverage its own supply base and contracts –VITA continues to offer statewide contracts VITA and NG will collaborate to optimize supply base Strong commitment to SWAM suppliers –5 SWAM partners in partnership agreement –Establish SWAM liaison to promote SWAM participation –Implement SWAM mentor-protégé program and suppliers

13. 13 expect the best www.vita.virginia.gov When will the partnership be implemented? Transition Planning Interim Agreement signed Transition Planning Completed Transition Phase Service Commencement Transition Activities Completed Transformation Phase Operational Phase Transformation Activities Completed General Assembly review

14. 14 expect the best www.vita.virginia.gov What are the key milestones? MilestoneAnticipated Date Complete transitionService Commencement + 6 months Move into new data centerMarch 2007 Establish single help deskMay 2007 Establish back-up data centerJune 2007 Complete initial desktop refreshNovember 2007 Complete single enterprise e-mailFebruary 2009 Complete server consolidationFebruary 2009 Dates Adjusted to Incorporate General Assembly Approval of Capital Lease Component Subject to Revision During Interim Phase/Transition Planning

15. 15 expect the best www.vita.virginia.gov For More Information on VITA www.vita.virginia.gov Lemuel C. Stewart, Jr. CIO of the Commonwealth 804.343.9002 lem.stewart@vita.virginia.gov