Presentation on theme: "ONGARD Modernization ONGARD Modernization Project Certification Request Energy, Minerals and Natural Resources Department State Land Office Taxation and."— Presentation transcript:
ONGARD Modernization ONGARD Modernization Project Certification Request Energy, Minerals and Natural Resources Department State Land Office Taxation and Revenue Department March 27, 2013
2 Funding History –2008 request partially funded; $500k expended for initiation and planning –2009 $4 million request partially funded for $1 million—not enough to start project –2010 reverted the remaining $1 million funded in the 2009 Legislature –2012 appropriation for $6 million Mainframe Stabilization was first priority and was certified on April 18, 2012 ONGARD Executive Steering Committee has directed that we begin efforts on the ONGARD Modernization project; the required letter has been signed and sent to the Legislative Finance Committee for review and approval Efforts to complete ONGARD Stabilization will continue through December 31, 2013 ONGARD Modernization to focus on Business Process Analysis and new business requirements for multi-lateral drilling
3 Progress to Date ONGARD Mainframe Stabilization Project Developed test and use cases for top 40 ONGARD business processes –DoIT mainframe testbed still pending –ONGARD team to execute full test and use case set when zOS 1.11 is available—expect six weeks of testing Eliminated artifact program code no longer supported for obsolete language Completed creation of multi-level mainframe test beds and test processes Established JCL, program and file naming standards and began conversion efforts Reduced system hot spots which create need for manual ONGARD data corrections Established new more secure migration process for production code migration Created new environment, using SMART TS tool, for analysis of ONGARD mainframe COBOL code Have expended $789,508 since project approval for Mainframe Stabilization project
4 Mainframe Stabilization Financial Details (through 3/1/2013) 3/11/2013ONGARD Mainframe Stabilization Project Milestone Title Brief Milestone Status % Complete Project $ spent to date ( S ) Estimated $ to complete ( E ) Total Costs (S + E = T)Estimated Start DateActual Start Date Estimated Completion DateActual Completion Date Project Phase (Initiation, Planning, Implementation, Close) 1 Project Charter and PCC CertificationComplete100% $ - 04/09/12 04/25/12 Close 2 Develop test and use cases for top 30 ONGARD business processes Complete100% $ 117,067 $ 0 $ 117,06704/01/12 06/30/12 Close 3 Extend test and use case contract to include 20 more business processes and associated test/use cases. Amend Deliverables 19 & 20 added: Develop test bed and use cases for an additional 10 business processes & Develop ONGARD Test Execution Plan for First 40 Business Processes. Completed100% $ 83,000 $ (0) $ 83,00007/01/12 09/30/12 Close 4 Select vendor and execute contract for IV&V Services Final approved IV&V contract and PO received. Project introduction meeting held 8/6 with POD resource. 56% $ 18,939 $ 14,766 $ 33,70506/01/1208/03/1205/03/13 Implementation 5 Extend contractor agreements (with new deliverables) for three existing contract resources. Original contract deliverables almost completed. Contractors now working on amendment deliverables (10 below). 100% $ 234,351 $ 236 $ 234,58706/01/12 12/28/12 Implementation 6 Execute Contract for Test execution and test management Completed contract with final of three regression tests completed along with knowledge transfer to ONGARD staff. 100% $ 193,161 $ (0) $ 193,16110/01/12 12/30/12 Close 7 Contingency funding to extend useful life of zOS 1.09 if ONGARD cannot run on upgraded system. 6 months at $200k per month. DoIT,mainframe charges for ONGARD regression testing related to ONGARD Stabilization work by ONGARD staff and SMEs. Test time for DoIT mainframe charges are now being paid out of this fund. Still waiting for DoIT to make requested billing code changes--having to continue making manual adjustments until this is corrected. 8% $ 64,624 $ 707,403 $ 772,02707/01/12 06/30/12 Implementation 8. Database Analyst Services for Mainframe Stabilization. Contractor started on November 13, 2012. February 11, 2013 note: contract DBA has health problems and is unable to continue. We are looking for a new DB2 DBA. Work on hold at this time since 2/4/2013. Assist with Production Control of DB2 objects. Review current mainframe database security and recommend improvements. Create security groups for new test environments. Review and create batch jobs utilized to load development test environments. Review and make changes as necessary to Client production backup process to enable rapid data loading for test and disaster recovery. Review DB2 production processes; recommend improvements and automate monitoring processes where possible. Plan and execute ONGARD QMF cleanup efforts. Update ONGARD mainframe production, QA and test environment tables to harden delete functionality. Assist with the recreation of DB2 trigger tables used for ONGARD replication process to server environment. Assist with SQL Server database backup planning and setup. 43% $ 48,690 $ 64,302 $ 112,99211/13/12 06/30/12 Implementation 10. Extend current contractor services due to extension of ONGARD Stabilization project to June 30, 2012 Extend/amend three existing contract (TR12-39, TR12- 40, TR12-41) resources through June 30, 2012. SOW and amendments are circulating for approval. 22% $ 29,676 $ 102,784 $ 132,461 Inception 11. Overtime pay for TRD SMEs to support test and use case execution in 2Q FY13 (Jan-June 2013). 0% $ - $ 31,000 TBD Inception 9 0 $ - Totals Milestones: $ 789,508 $ 920,491 $ 1,710,000
5 Certification Request Detail for ONGARD Modernization--New Plan for and prepare a Request for Proposal (RFP) for a full business process reengineering (BPA/BPI/BPR) engagement for ONGARD: Based on extreme documentation deficiencies, it is recommended that a RFP be developed to address the need for Business Process Analysis and definition of a business process improvement or reengineering plan for the ONGARD system. –The initial funding required for this inception phase would be allocated to hire a writer for the RFP who specializes in the preparation of RFPs. $36,000 budget estimate for price agreement vendor contract support for RFP development. Other labor would be from existing Tri-Agency workforce and supported by State Purchasing. Issue RFP for full BPR; analyze and select vendor: May use Best Value Vendor selection process to shorten lead time for RFP which are averaging nine months from inception to award. –Estimate $1 million to complete project with the following deliverables: full as-is business process documentation; full as-is program code documentation; full business rule set documentation; full to-be process model; gap analysis of two as-is document sets; gap analysis of program code to to-be model; executive working sessions for developing next steps (BPR vs BPI) based on process modeling results; process improvement plan based on BPR or BPI recommendation; Recommendation on “rip and replace” versus continuous improvement for existing code. Complete work required to support oil and gas industry changes related to fracking and multi-lateral drilling: Based on best knowledge of industry trends, the changes to support this landmark change in industry practices must be completed by January 2015 to ensure that ONGARD will be able to track and collect the increased production due to these changes. –Preliminary estimate to only increase the field size on the well number (an important system key) is one person year ($800k-$1M) Extremely unlikely result—too low. –Estimate (with guestimate for additional requirements) on the high end would be ten person years with a cost of approximately $3 million. –Must remain on mainframe to complete in prescribed timeline; must also use contractors; this approach precludes platform modernization until FY17, at least.
6 Certification Request Budget Summary ONGARD Modernization BP Project B UDGET R EQUEST FOR PCC C ERTIFICATION DescriptionFY13FY14FY15FY16FY17&After Staff - Internal Consulting Services Contract Services for full BPR engagement for ONGARD that includes: As-Is for both business and system; Definition of business rules; To-Be based on business rules; Gap analysis between To-Be and As-Is (both) and recommendation as to path forward $1,000,000 Consulting for RFP If possible will use operating budget $36,000 Software T OTAL $1,036,000$36,0001,000,000
7 ONGARD Mainframe Modernization Fracking and Lateral Drilling Project Risk Summary –Unknown requirements for handling new drilling arrangements Specifications not yet defined for New Mexico or for the industry Preliminary business analysis bid by RSI (price agreement vendor) for $80k deferred—RSI consultant reassigned Developing business needs for implementation of system changes to support the new technology has shifted executive steering committee to focus on business needs versus technology changes (platform modernization off mainframe) Estimate $3 million to complete project based on prelim analysis –ONGARD must remain on the mainframe to meet the new business requirements Not enough time or money available to migrate off mainframe Problems with hiring both employee and contract resources will continue due to small labor pool of qualified programmers, DBAs and technical support for mainframe—this means higher operational costs while remaining on mainframe –Need clear statement of vision and objectives for this initiative Propose visioning session with ONGARD SMT before June 30, 2013 Propose beginning work on business requirements Propose an update to the ONGARD Strategic Roadmap
8 ONGARD Mainframe Modernization Business Process Project Risk Summary –Business Process Reengineering SME knowledge gaps Tri-Agency retirements continue to decimate the ranks of knowledge workers in important Tri-Agency positions Essential business rules and processes must be documented Although risk is significant, it will only increase in the face of inaction as more SMEs retire or move to new jobs –Completion of Business Process Analysis will provide factual information to make decision on BPR vs BPI Estimated timeline of one year for completion of Business Process project from inception A project objective is to define BPI or BPR program for ONGARD –Tri-Agency SMEs may be overtaxed by BPR support requirement SMEs are all key participants in ongoing Tri-Agency operations The lack of availability of Tri-Agency SMEs on a sporadic or regular basis has potential to cause major schedule delays beyond the control of awarded BPR contract vendor May need to consider hiring retirees with ONGARD experience to assist in the Business Process work
9 ONGARD Modernization Project DoIT Impact –Mainframe ONGARD must remain on mainframe through FY16 or longer due to need to make multi-lateral drilling system enhancements by January 2015 User ids required for Business Process analysis vendor personnel Computer time for use of library functions and testing means extra revenue for DoIT –Telecom No impact—current telecom will handle –Security Vendor will follow all NM DoIT security procedures –Disaster Recovery/Business Continuity No impact for current DoIT DR but increases pressure to complete DR/BC plan with ONGARD customer resources Completion of project will enhance ability to support Business Continuity through the clear definition of business and system rules for the first time Continued progress on zOS upgrades will allow DoIT and ONGARD to improve DR/BC readiness
10 ONGARD Modernization Business Process Project--Summary –Must define current processes before proceeding Timing of DoIT upgrades and delays in implementation of ONGARD Modernization have led to shift in focus from technology improvements to business requirements BPA efforts will fill in gaps on system and business side Data relative to our current process versus project future model will allow fact based decision making relative to how to advance ONGARD Modernization Documentation of business rules will assist filling knowledge gaps as Tri-Agency employees move on Without details about As-Is versus To-Be ONGARD model, it will be impossible to accurately prepare a RFP for full system replacement or even for the fracking/later drilling project –Most sensible first step is Business Process Analysis Business Process Analysis will facilitate decisions on how to proceed with either BPR or BPI. Completion of this step will also provide necessary data to enable informed decision regarding rip and replace versus continuing to improve current system.
11 ONGARD PCC Actions Requested –Approve line item budget changes for ONGARD Stabilization Project and extend to 12/31/2013 Bottom line does not change Higher consulting fees than originally estimated due to schedule changes for zOS implementation. Stabilization efforts have unearthed more clean-up activity which required consulting support Uncertainty of schedule for final zOS upgrade extends timeline and expenses DoIT testing charges added (unplanned DoIT revenue) –Approve budget request for ONGARD Modernization BPR Project and issue cert letter Want to start preparation of RFP in April 2013 Target RFP issuance by fiscal year-end Target is to complete project in FY14; estimate 1 year from project award –Approve inclusion of requirements definition for fracking and lateral drilling project and issue cert letter Gather bids from Price Agreement vendors