RD126 - Annual Report on the Recommended Technology Investment Projects for the 2006-2008 Budget Biennium, September 1, 2005 Submission


Executive Summary:
The Commonwealth Information Technology Investment Board (ITIB) serves as the supervisory board for the Virginia Information Technologies Agency (VITA). The Board is assigned responsibility for the planning, budgeting, acquiring, using, disposing, managing, and administering of information technology in the Commonwealth. In this role, the ITIB is required to submit a list of recommended technology investment projects and priorities for funding those projects to the Governor and General Assembly by September I of each year. The ITIB hereby submits the 2005 Recommended Technology Investment Projects (RTIP) Report for the 2006-2008 Budget Biennium.

In developing this year's report, the ITIB employed IT Investment Management (ITIM) best practices to select the right mix of technology investments (projects) from the Commonwealth Major IT Project Portfolio. The ITIB focused on IT projects offering enterprise solutions and opportunities for collaboration, (i.e. serving more than one state agency) in making its recommendations. The evaluation process heavily weighted projects that demonstrated alignment with Commonwealth and agency strategic business objectives and identifiable benefits to the Commonwealth. Only projects supported by a strong business case, based on ITIB established selection and ranking criteria, were considered as priorities for funding.

In coordination with the Department of Planning and Budget, the Agency Strategic Planning Process for the 2006-2008 Budget Biennium was used to collect the information necessary to construct the report. The integration of IT strategic planning with the submission of agency strategic plans was aimed at insuring that planned IT investments truly reflect agency business objectives and service area plans for the upcoming biennium. All information contained in the 2005 RTIP Report is based on agency data submitted by the close of business July 14, 2005.

The Commonwealth Major IT Project Portfolio includes 79 projects with a total estimated cost to complete of $1,165,607,739. The projects are in various stages of planning or execution (life-cycle phases) and include 24 active projects representing $707,663,470 or 60.7% of the total investment value of the portfolio.

Priority Technology Investment Projects (PTIP) are projects recommended for new or maintained funding by the Governor and General Assembly. The PTIP emphasizes Commonwealth priorities, including Fiscal Responsibility, Transportation, Economic Development, Education, Health and Human Services, and Public Safety. The 39 projects selected as priority investments for funding will result in short and long term savings, operational efficiencies or improved citizen services. Projects in the PTIP that are recommended for funding or maintained funding of the detailed business case are in the project planning phase of the Commonwealth Project Management Lifecycle. Projects in the planning phase will require subsequent ITIB development approval before proceeding with expenditures or execution of the development phase of the Commonwealth Project Management Lifecycle.

A total of thirty-nine projects are included on the 2005 PTIP representing a total investment of $750,937,006 for the 2006-2008 Budget Biennium. Two projects currently in planning and seven currently active projects will extend into the next budget biennium with estimated expenditures in the2006-2008 biennium of $164,738,002 and are recommended for maintained funding. The additional thirty new projects on the PTIP list, with a total estimated cost to complete of $325,509,247, have been recommended as priorities for funding. A total of $155,580,500 will be needed in the 2006-2008 Biennium to support the thirty new priority projects. The remaining investment costs of $169,928,747 will be needed beyond fiscal year 2008.

For the first time this year, the ITIB has specified projects not recommended for funding. These projects are either too early in the planning process (reflected in incomplete business cases) or will be superseded by enterprise investments or proposals submitted under the Virginia Public-Private Education Facilities and infrastructure Act of 2002 (PPEA). A total of eighteen projects are not recommended for funding and are listed in Appendix C. Agencies may submit these projects for funding consideration upon completion of detailed business cases.

For selected projects, the Public Private Education Facilities and Infrastructure Act (PPEA) has been identified as a potential approach for satisfying business needs identified in agency projects. Ultimately, the established business need may or may not be satisfied through the PPEA process and signing of a PPEA comprehensive agreement. If a comprehensive agreement does not address the defined business need, an alternative approach will be evaluated during the project planning phase.

While the Commonwealth ITIB has set a goal that the RTIP Report become the primary driver for Commonwealth technology investment decisions in the 2007 budget process, it is the desire of the ITIB that the 2005 RTIP Report guide the Governor and General Assembly in determining funding of technology investments in the upcoming budget session.

Issues of concern to the ITIB include improving synchronization of RTIP and Agency Strategic Plan schedules, implementation of the two-step major IT project planning process approved last year by the ITIB, and clear identification of technology project funding in the Appropriation Act. (See Section 2.6, Future Considerations.)