1 expect the best doing business with the commonwealth of virginia lemuel c. stewart chief...

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expect the best

www.vita.virginia.gov

Doing Business with The Commonwealth of Virginia

Lemuel C. StewartChief Information Officer

Commonwealth of Virginia

COVITS September 27, 2004

www.vita.virginia.gov 2expect the best

ImperativesThe Vision for Technology in Virginia• Establish Virginia as a global leader in the use of technology in

government.

The Vision for VITA• Transition from decentralized, agency-centric service delivery to a highly

effective, consolidated, and shared services model.

Why We Are Doing This+ Global positioning+ Savings+ Effectiveness+ Best Practices management of the IT investment

= Revolutionize services to our customers (best quality/low price)


VITA Today and Tomorrow

• As of July 1, VITA is responsible for supporting:

– 60 Organizations at 543 locations

– 16,936 end users– 1,074 servers– 557 employees

• On January 1, 2005, VITA will be responsible for supporting:

– 90 Organizations at 1,497 locations

– 60,000+ end users– 3,000+ servers– 1,286 employees


Procurement Reform

• Governor’s Commission on Efficiency and Effectiveness findings and recommendations in December 2002 identified need for change

– Virginia would rank 50th if it was in S&P500

– State has tremendous opportunities to leverage buying power and embrace and implement better solutions and tools

– Virginia does not purchase and utilize IT in the most cost-effective manner


ProReform in Action

• Centralized IT procurement• Solutions-based RFP approach

– Limited terms and conditions as mandated

• Value orientation, not price orientation• Faster, simpler, less expensive

procurements• SWAM Web site and business intelligence• Enterprise solutions and partnerships


Partnerships: The Keystone to Success

• Public/Private partnerships offer the opportunity to change how we do business

• Focus on redesigning the business processes so state government can improve citizen services

• PPEA proposals were posted for competition and are under review


Integration Savings (August 30, 2004)

InitiativeFY 04

SavingsFY 05

SavingsFY 06

Savings

Six-Year BaselineBenefit

Voice and data telecommunications contract extension (ATM T-1 Circuits)*

$528,000 $528,000 $528,000 $3,168,000

Conversion of Unix and Oracle contractors to full-time positions

$132,000 $132,000 $132,000 $792,000

Efficient tape technology stacking and replacement $173,000 $108,000 $108,000 $713,000

Telecommunications MCI contract (COVANET)* $1,542,000 $3,085,000 $3,085,000 $16,967,000

Verizon contract renegotiation $0 $4,675,000 $5,861,000 $28,119,000

Streamline 1-800 voice services $2,000 $103,000 $103,000 $517,000

Streamline cellular usage* $524,000 $1,333,000 $1,333,000 $7,189,000

SAG software contract renegotiation $8,000 $32,000 $32,000 $168,000

Sun server procurement $484,000 $0 $0 $484,000

Virginia Partners in Procurement – Hardware andSoftware (Wave I)**

$12,098,000 $14,576,000 $14,576,000 $84,978,000

Virginia Partners in Procurement – ComputerPeripherals and Enterprise Storage (Wave II)**

$174,000 $558,000 $558,000 $2,964,000

Total, Gross Savings $15,665,000 $25,130,000 $26,316,000 $146,059,000


Integration Cost Avoidances (August 30, 2004)

Software Licenses $495,000 $615,000 $615,000 $3,570,000

Server Acquisitions $380,000 $380,000 $0 $760,000

Subtotal, Cost Avoidance $875,000 $995,000 $615,000 $4,330,000

Total, Gross Savings &Cost Avoidance

$16,540,000 $26,125,000 $26,931,000 $150,389,000

InitiativeFY 04

SavingsFY 05

SavingsFY 06

Savings

Six-Year BaselineBenefit


VITA Transformation - The Value Picture

Best Quality Service & Best Value

TODAY

ITInfrastructure

1.4B

AgencyCitizenServices

1.2B

TOMORROW

ITInfrastructure

.9B

AgencyCitizenServices

1.7B

6 YR Baseline


What Does This Mean to Suppliers?

• Lower marketing costs – streamlined sales and procurement

• Ability to compete for larger and more complex engagements

• Focus on business solutions and value to total cost ratio

• Creative partnerships with SWAM participation


Contact Information

Please visit http://www.vita.virginia.gov to

learn more about our procurement efforts

Lemuel C. Stewart, Jr.Chief Information Officer of the Commonwealth

Virginia Information Technologies Agency

[email protected]

(804) 343-9002


New Venture and New Vision:

VDOT Experiences as a Newly Transitioned Agency

Murali Rao Information Technology Director

Virginia Department of Transportation

13expect the bestwww.vita.virginia.gov

• Transition date July 1, 2004• 200+ staff transferred• Over $3,000,000 a month in billing• Affects 10,000 employees in 300 locations• Approximately 7,000 desktop PC’s

Transition Facts


• Expanded role of Secretariat of Transportation Oversight Committee• Standardization under Project Manager Development Program• New forums established for exchange of ideas

Promotes Cross-Agency Sharing ofBest Practices


• VITA has a streamlined process• One common policy• Pre-negotiated high-end technical support • No VDOT contract negotiation

Consultant Management


• Expenses are quantifiable • Global view and understanding of IT cost

Better understanding of IT Operations Cost


• Promoting a transition from manual to electronic workflow and routing methods• Redesign and simplification of forms is eliminating extraneous and redundant items

Streamlines Oversight and Approval

Processes for Procurements


New Venture and New Vision:

VDOT Experiences as a Newly Transitioned Agency

Murali Rao Information Technology Director

Virginia Department of Transportation


How to Do Business with Virginia

Higher Education Update

Mark D. WillisAssistant Vice President

Administrative Information Technology

Virginia Commonwealth University


Higher Education in Virginia

• 39 four- and two-year institutions

• 342,000 students

• 56,000 faculty and staff

• $3.9 billion in total expenditures

• $325 million in IT expenditures

• $444 million in research expenditures

Note: Public institutions only.


How to Do Business with Virginia

Local Government Update

John Eagle

Director of Information Technology

City of Hampton

Chairman, Virginia Local Government IT Executives


What’s Important:

• We want it cheap• We want it now• We want high quality• We want ease of use and simplicity• We want flexibility• We want consistency• We want solutions, best practices and ROI• We want a relationship with suppliers

– Vendors with community/regional interests


Demographics

• 140 cities/counties• 14 with populations > 100,000• Of the 55 Jurisdictions in VaLGITE

– 70,000+ end users– $220+ Million annual IT expenditures– Mostly centralized IT; decentralized everything else– Procurement not considered just a clerical process


Initiatives & Trends

• Use of p-cards• Use of GSA Contract• Use of Regional Contracts• Use of State Contract• Use of eVA• Use of online “reverse auctions” and other online

procurement tools• Online registration and RFPs, e-submittals, and more

web site based solicitations• PPEA• Generic brand equipment losing popularity


Opportunities

• Work with the system (not around it)• Understand our differences• Understand VA Procurement Law• Take advantage of NIGP certifications,

standards and commodity codes• Provide educational opportunities/workshops• Get on a “purchasing vehicle”• Stay in touch but don’t spam us

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