1 expect the best Lemuel C. Stewart, Jr. CIO of the Commonwealth Information Technology Investment Board December 8, 2005 CIO Status Report

2 expect the best Highlights Since Last Meeting Held VITA Dialogue meeting on November 16 on Transformation; next meeting planned for January 10, Announced the PPEA Infrastructure Partnership Agreement November 16 in Chesterfield and signed the Interim Comprehensive Infrastructure Agreement with Northrop Grumman. Interim Comprehensive Infrastructure Agreement released publicly on November 11. Regionalization model of service delivery implemented. Presentation given to JCOTS. National Association of State CIO’s (NASCIO) featured Virginia’s enterprise architecture in a national brief on December 1. DHRM report on VITA Pay Actions – no exceptions. Supplier Managed Staff Augmentation (SMSA) contract awarded in November to Computer Aid, Incorporated.

3 expect the best Audit Action Plan Update 2005 APA “Review of Controls Over Information Security” Audit Action Plan –3 of 16 actions reported as completed. –Remaining 13 actions reported to be on schedule APA “Performance” Audit Action Plan –10 of 15 actions now reported as completed as 1 action was reopened. –3 actions have revised due dates and the remaining 2 are reported to be on schedule. NOTE: Meeting 2 of the revised dates is dependent on funding of rates submitted to JLARC for approval Internal Audit Services “Small Purchase Charge Card” Audit Action Plan –16 of 16 actions reported as complete.

4 expect the best CIO Major IT Project and Procurement Actions Since Last ITIB Meeting Project Planning Approval Dept. of Transportation: Equipment Management System Upgrade Virginia State Police: Virginia Records Management System Virginia Employment Commission: Replace Virginia Workforce Information System Dept. of Environmental Quality: Document Management Implementation Project Development Approval Department of Motor Vehicles: Traffic Records Electronic Data System Project Contract Approval None Project Suspension or Resumption Approval None NOTE: See the December ITIB Major IT Project Status Report (provided separately) for a complete status of the Commonwealth major IT project portfolio

5 expect the best FY 2006 Financial Results First Quarter Budget First Quarter Actual Operating Revenues$73,922,42870,443,470 Expenses, including transfers73,420,86263,819,480 Net change501,5666,623,990 Ending, retained earnings58,051,193 First Quarter FY2006

6 expect the best FY 2006 – 2008 Legislative Update Decision packages approved by CIO and submitted to DPB; ITIB notified Four language only items –Line of credit –Clarified purchasing authority for local governments –E-911 duplicate reporting elimination and E-911 Board recommendation Five with dollar impact –FY07 $12.3M/6 positions –FY08 $ 9.4M/6 positions –Supports Base Mapping project completion, E-911 administrative adjustments, restoration of FY06 General Fund reductions, elimination of E-911 diversion to VSP and negate FY06 $1M transfer

7 expect the best VITA Service Fund Rates JLARC Subcommittee meeting –Rate reduction for Video and new rate for VOIP approved –Security methodology approved - $3.5m (Incident management, security policy, risk management) PC rate of $4.31 was proposed and approved New revised fixed monthly fee methodology proposed to JLARC Recommend and request Board approval of revised methodology from a PC rate to a fixed monthly fee –JLARC staff has reviewed and concurs with change

8 expect the best VITA Service Fund Rates - continued –IT Investment Management - $1.7m – Rework Proposed fixed monthly fee by size of customer Shared overhead and hourly fee billing recommended by JLARC New methodology developed and proposed to JLARC for December 13 meeting Recommend and request Board approval of revised billing methodology for ITIM –JLARC staff has reviewed and concurs with recommendations

9 expect the best PPEA Activities Review November 14 - Governor Warner approved the Interim Agreement with Northrop Grumman November 14 - announcement made in Chesterfield and Lebanon November 17 - the contract and all attachments were made public on the VITA website Video of announcement

10 expect the best 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

11 expect the best 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 February 2009 Complete server consolidationFebruary 2009 Dates Adjusted to Incorporate General Assembly Approval of Capital Lease Component Subject to Revision During Interim Phase/Transition Planning

12 expect the best What happens now? Commence partnership preparation for transformation Final agreement reviews Project implementation plan for ITIB approval VITA internal organizational transformation The interim phase will become final upon the earlier of: –Completion of all General Assembly and other approvals –June 30, 2006, unless extended Commonwealth has the option to terminate with limited exposure –Activities permitted by statute include project planning and development

13 expect the best Benefits of changing VITA’s organizational design Build a successful partnership with NG, our service delivery partner, by implementing a Service Management Organization to provide oversight and clarity of interfaces Enable clearer definition of roles and responsibilities at all levels, within and among all Directorates Provide a sharper focus on working with our customers and addressing their needs Remove duplication of effort across VITA and provide the foundation to develop centers of excellence Improve customer service and communications

14 expect the best Customer Relationship Management Technology Applications, Architecture, & Strategy Finance CIO Lem Stewart CIO Lem Stewart Chief of Staff Cheryl Clark Chief of Staff Cheryl Clark Internal Audit ITIB IT Investment Management Enterprise IT Portfolio & Program Mgmt, Supply Chain Mgmt IT Investment Management Enterprise IT Portfolio & Program Mgmt, Supply Chain Mgmt Service Management Organization Enterprise Security & VITA Risk Management VITA To-Be Organizational Design – Functional Services View - March 31, 2006 Administrative Services HR, Communications, Legal & Legislative Services Administrative Services HR, Communications, Legal & Legislative Services Finance & Accounting Budgeting & Rate Setting VITA Strategic Planning Performance Mgmt & Reporting Business & Financial Analysis Facilities & Asset Mgmt (Finance) Agency Performance Mgmt Service Delivery Mgmt Commercial Mgmt - Contract & Financial (PPEA) Transition & Transformation Mgmt Strategy & Architecture Coordination ITIL Process Mgmt & QA Customer Relationship & Account Mgmt & Development Market Research & Analysis Innovation & Customer Value Partner Service Mgmt (e.g. vGov) COTS Board SME Resource Mgmt Portfolio Mgmt Program Mgmt Project Mgmt Business Process Reengineering Strategic Sourcing Contracts Management Strategic Analysis Plan & Policy (Service Development) Technology Strategy Technology Forecasting & Innovation IT Policy, Practices & Standards Architecture – Enterprise, Solution & Design Assurance Public Safety Communications Division (E-911 Board) Enterprise Business Solutions eGov & Web Development System Integration Services VGIN Solutions & Division Incident Management SI & Tech Support CIP & Business Continuity Risk Management IS Training & Awareness Standards, Policies, & Procedures Internal Communications Public Information Mgmt Publications Support Services – Internal & External Legislative Liaison Board Coordination & Administration Legal Services Policy Analysis Organizational Development Professional Development Recruitment & Selection HR Administration – Benefits, ER & Compensation

15 expect the best How will the partnership be managed? The Service Management Organization (SMO) within VITA will manage infrastructure service delivery –Single point of accountability –Ensures both partners fulfill contractual obligations Significant contract provisions to manage effectiveness of partnership –Service levels within each technical area –Penalties for missing service levels Help desk response time –Penalties for missing critical milestones Completion of the primary data center construction Independent audits of expected outcomes

16 expect the best VITA and NG interface – during SMO Build and Transition Lem Stewart CIO Fred Duball SMO Director Hugh Taylor Relationship Executive Joe Fay Relationship Manager PPEA Partner – Northrop Grumman Leads the Executive relationship with NG Accountable for overall relationship including oversight and management day to day operations with NG Interface relationshipReporting line Cheryl Clark Deputy CIO Ensures other Directorates provide appropriate support to SMO Sr. Transition & Transformation Manager Transition Management Manager Responsible for transition of infrastructure services and longer term transformation of each technical tower Steady State Service Delivery/ Operations Manager Service Delivery Sr. Manager Service Delivery Managers (Technical Towers) Service Delivery Managers (Technical Towers) Agency Service/ Performance Manager Agency Performance Sr. Manager Day to day operational relationship interface for service delivery Day to day operational relationship specific technical towers Ensures performance meets the Commonwealth’s requirements Strategy and Production Architecture Business & Finance Mgmt. (Pricing & Contracts) Strategy and Architecture Coordinator Commercial Management (Finance & Contracts) Sr. Manager Technology, Strategy and Architecture Directorate Ent. Portfolio, CRM, PIC, HR Directorates CRM, CSS, HR Directorates CRM, CSS. HR Directorates CRM, CSS, HR Directorates SCM, FMS, HR Directorates * For select directorates Coordination with Partner Architecture, technology & Innovation Shared and Sub Contracts, Pricing Governance and Negotiations with Partner ITIB PPEA Partner - VITA

17 expect the best Please welcome our partner Hugh E. Taylor President, Commercial, State and Local Solutions Northrop Grumman Information Technology

18 expect the best For More Information on VITA Lemuel C. Stewart, Jr. CIO of the Commonwealth