ONGARD ModernizationONGARD Modernization Project

Certification Request

Energy, Minerals and Natural Resources Department

State Land Office

Taxation and Revenue Department

May 23, 2013

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ONGARD Modernization History

– 2012 appropriation for $6 million• Mainframe Stabilization was first priority and was

certified on April 18, 2012• In 4Q FY13, the ONGARD Executive Steering

Committee directed that we begin efforts on the ONGARD Modernization project

• In the long term, ONGARD Modernization will focus on Business Process Analysis and new business requirements for multi-lateral drilling

• For the moment, the Business Process Analysis portion of the project is on hold

• First step is to complete Requirements and Design for the API number expansion and horizontal drilling

– Contract with price agreement vendor, RSI has been negotiated and is in signature approval process

– Project is to start on July 8, 2013– Need additional funding certification of $90k to cover contract

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Certification Request Detail for ONGARD Modernization--New

• Develop specifications, requirements and design document for API Number Expansion and Horizontal Drilling changes to ONGARD and other tri-agency system interfaces: The changes to support landmark changes in industry practices must be completed as soon as possible to ensure that ONGARD will be able to track and collect the increased production due to these changes.

– First step is development of specifications, requirements and design documentation for the potential change.

– At the direction of the ONGARD SMT, dusted off the RSI bid from September 2012 for this work and successfully negotiated with vendor to pull together project team to accomplish SOW deliverables identified in original bid.

– RSI put together team and agreed to contract terms (vendor signed contract is in our possession.

– SMT asked that project get started in FY13 but changes to contract boilerplate increased review time and made May 14 deadline to DFA contract bureau not achievable.

– Contract amount of $90,000 is certification request today since there is no funding certified for this amount

– Need certification letter authorizing the $90k to complete contract– Current RSI engagement start date is July 8, 2013

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Certification Request Budget Summary ONGARD Modernization API Number

Expansion and Horizontal Drilling ProjectBUDGET REQUEST FOR PCC CERTIFICATIONBUDGET REQUEST FOR PCC CERTIFICATION

  Description FY14 FY15 FY16 FY17 FY18&After

        

Consulting Services

Contract Services for development of ONGARD code to accommodate the API number expansion and functionality for horizontal drilling. This is a placeholder at the moment.

TBD TBD      

Consulting for specification development

 Specifications, Requirements and Design for API Number Expansion and Horizontal Drilling work on ONGARD mainframe application (SOW available, contract ready for signature.

$90,000         

Software        

TOTALTOTAL $90,000 $90,000      

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ONGARD Mainframe Modernization API Number Expansion and Horizontal

Drilling Project Risk Summary

– Must obtain certification for $90k before finalizing contract

• Need quick approval and quick delivery of new certification letter• Initial contract encumbrance could be made from ONGARD

Mainframe Stabilization– Unknown requirements for handling new drilling

arrangements and API number expansion• Specifications not yet defined for New Mexico or for the industry• Bid by RSI (price agreement vendor) for $90k accepted• Contract has been negotiated; vendor signed; received in NM• Could use ONGARD Stabilization funds to encumber but prefer to

get certified funding for ONGARD Modernization • Estimate $3 million to complete project based on preliminary

analysis but completion of specification and requirements documentation will allow more precise estimates to be prepared

• Plan to start requirements definition project in early July, pending certification letter

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ONGARD Modernization Project DoIT Impact

– No DoIT impact at this time (planning phase) since deliverable is requirements development

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ONGARD PCC Actions Requested

– Approve Certification Request for ONGARD Modernization Project planmning and issue Certification letter

• Contract and SOW approved by DoIT and TRD Legal• Contract signed by RSI and received at TRD• Need quick approval and Certification Letter issuance• Planned project start date is July 8, 2013