RD64 - Annual Report on the Recommended Technology Investment Projects for the 2004-2006 Budget Biennium, September 1, 2004 Submission


Executive Summary:
The Code of Virginia, Section 2.2-2458, requires the Commonwealth Information Technology Investment Board (ITIB) to submit a list of recommended technology investment projects and priorities for funding such projects to the Governor and -General Assembly by September 1 of each year.

Purpose

The Recommended Technology Investment Projects (RTIP) Report is intended to provide the information needed to make sound investment decisions -- project cost, schedule and risk -- regarding funding technology projects or investments and to ensure technology investments are strategically aligned with Commonwealth business goals and objectives.

Report Contents

The accompanying document provides the following information:

• A summary of the procedures and criteria used to identify candidates for funding and determine recommended priorities;
• A listing of current major IT projects (Appendix A), for which the ITIB recommends funding be maintained. The Board and Commonwealth CIO, with the support of VITA staff, continue to actively oversee these projects and their progress.
• A listing of the ITIB's 27 proposed priority IT investment projects (Appendix B), for which the ITIB recommends funding either be maintained (where the proponent agency already has a committed funding source) or given priority consideration for inclusion in the Governor's Executive Budget and funding in the 2005 legislative session.
• Additional information regarding Secretariat priorities and specific projects is provided in Appendices C-G of this report.

For all major IT projects listed in Appendix A and B, the Board is requesting that funding for these projects be specifically identified in the Budget Bill and Appropriation Act to ensure that agencies are accountable for their planned technology investment projects. Clear identification of project funding in agency budgets will also facilitate the development of a more useful and accurate RTIP Report in the future.

The top 27 priority technology investment projects listed in Appendix B represent all Secretariats and twenty agencies. Total project costs (estimate at completion) of these top 27 projects are $246.8 million. Eleven projects in the top 27 are identified as fully funded, with budgeted funds totaling $49.2 million. Sixteen projects are un-funded, with a total project cost of $213.4 million. These projects, if and when funded, will be subject to further CIO/ITIB review and approval before they can move forward to the development phase and ongoing oversight.

Preliminary plans for the projects in this report vary widely in level of detail, definition of scope, business justification, and in the agencies' own confidence in the presented data. Therefore, the ITIB emphasizes that the project costs contained in this document are preliminary estimates provided by the proponent agencies, and are subject to varying degrees of uncertainty. Recommendations addressing this planning issue are outlined under Future Considerations, below.

Report Development Process

The Recommended Technology Investment Projects (RTIP) Report was developed using a process approved by the ITIB in March 2004. The report development process ensured that selected priority projects address critical Commonwealth technology investment business needs as determined by the business owners, working in collaboration with the ITIB. The Agency Information Technology Strategic Planning (ITSP) Process for the 2004-2006 Budget Biennium was used to collect the information necessary to construct the report.

The top 27 priority projects list is the result of a series of evaluations, beginning with the review criteria set out in legislation and the project selection and ranking criteria approved by the IT Investment Board in March 2004. Candidate projects were then reviewed with the cabinet secretariats for recommended business priorities. Final screenings at the CIO/ITIB level provided an enterprise-wide emphasis on projects contributing to public safety/homeland security and cross-agency collaborations. Where feasible, priorities within each Secretariat were maintained.

On August 11, 2004, the ITIB convened to review the draft RTIP report and to select the top priority investment projects for recommendation.

Future Considerations

To better support technology investment planning, and to strengthen the major IT project planning phase to meet its intended objectives, the Board recommends that separate central funding for the project planning phase of major IT projects should exist from funding for project development. This two-stage process would be parallel to that followed by the Virginia Department of Transportation for highway construction projects.

Under this two-stage approach, upon the recommendation of the CIO, the ITIB would consider awarding planning funds to proposed major projects meeting specified criteria. Awarded funds would be used by agency and VITA staff to conduct the detailed analyses necessary to produce appropriate scope and cost estimates, as per CIO/ITIB guidance. Funding would be via the current Virginia Technology Infrastructure Fund, with a modest sum for this purpose refreshed annually via the Appropriation Act. Uses and results from these awards would be reported by the ITIB as part of its annual September 1 Report.