Transcript Slide 1

The Commonwealth’s
IT Transformation Initiative
N. Jerry Simonoff
Director, Strategic Management Services, VITA
CMA Annual Conference
April 27, 2006
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www.vita.virginia.gov
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How We Got Here--IT PPEA Timeline
Oct 03-Feb 04 Conceptual Proposals received
Jun-Aug 04
Four proposals posted for competition
Nov 04
Sec. of Technology approves proceeding with:
Infrastructure PPEA (Oversight—VITA)
Finalists: IBM & Northrop Grumman
Enterprise Applications PPEA
(Oversight—Secretaries of Administration & Finance)
Finalists: CGI-AMS & IBM
Jan-Apr 05
May-Jun 05
Jun-Oct 05
Oct 05
Nov 05
Infrastructure Due Diligence
Infrastructure Detailed Proposals prepared
Infrastructure Detailed Proposals review/negotiations
ITIB recommends Interim Agreement with NG
Governor approves Interim Agreement with NG
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Infrastructure Partnership
• This is a true partnership—share in risks and
rewards
• Good deal for the Commonwealth
– New, streamlined infrastructure
– Improved security
• Good deal for employees
– New standard for employee treatment
– Managed workforce reduction; no mass layoffs
• Good deal for citizens
– Job creation
– Commitment by Northrop Grumman to grow business in
Virginia
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What are the partnership highlights?
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$272 million total capital investment
Job creation
Excellent employment packages
Extensive and proactive technology refresh
New, state-of-the-art facilities in Chesterfield and
Russell Counties
• Innovative and flexible service contract model
• A reliable and agile 21st century infrastructure
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Who is Northrop Grumman?
• One of the largest providers of IT services to the
US Government
• Experienced systems integrator
• Largest technology/manufacturing private
employer in Virginia
• Nearly 32,000 employees in 14 primary locations
in Virginia
• Three of seven sectors are headquartered in
Virginia: IT, Mission Systems, and Newport News
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What facilities are proposed?
• Chesterfield Enterprise Solutions Center
– New, Tier III primary data center in Meadowville
Technology Park, Chesterfield County
– VITA Headquarters & NG Richmond Operations
– Secondary Security Operations Center
• Southwest Enterprise Solutions Center
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Back-up data center in Lebanon, Russell County
Enterprise help desk
Disaster recovery within 5-24 hours
Primary Security Operations Center
• Dinwiddie Project Support Center
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Meadowville Enterprise Solutions Center
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Southwest
Enterprise
Solutions Center
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Southwest Enterprise Solutions Center
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What are the technical highlights?
• Enterprise Help Desk
– Single point of contact for infrastructure help and service
• Hardware refresh
– Three-year cycle
• Security
– Enterprise-wide security
• Networks
– Enterprise voice and data network
– 100% network device refresh in years 2 & 3
• Break/Fix Repair
• Messaging
– Enterprise e-mail system
– Support Blackberry enterprise server
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What are the economic development highlights?
• $38.3 million in total estimated economic benefits to VA
• Southwest
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Russell Regional Business Technology Park anchor tenant
$22.8 million capital investment; creation of 433 jobs
About 90% of labor pool drawn from southwest
Support of technology education at UVa Wise (internships,
student recruitment, satellite office for the Russell facility)
• Chesterfield
– Meadowville Technology Park anchor tenant
– $240 million capital investment; 631 VITA and NG employees
• Dinwiddie County
– Project support center housing 34 employees
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What does the partnership mean for IT businesses?
• Short-term: existing infrastructure contracts continue
– Some contract rights will be assigned to NG
– Statewide contracts retained by VITA and “shared” with NG
• Long-term: Northrop Grumman to assume infrastructure
procurement responsibility for the partnership
– May continue using existing contracts
– May leverage its own supply base and contracts
– VITA continues to offer statewide contracts
• VITA and NG will collaborate to optimize supply base
• Strong commitment to SWAM suppliers
– 5 SWAM partners in partnership agreement
– Establish SWAM liaison to promote SWAM participation
– Implement SWAM mentor-protégé program and suppliers
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How Are VITA Staff Affected?
• Partnership provides unparalleled
professional opportunities in IT
• For VITA operations staff NG offers:
– Attractive benefits packages
– Advanced training
– Opportunities with a world-class IT firm
• Employees’ option to accept NG offer or
stay with state as “NG-managed
employee”
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What are the price/performance assurances?
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NG annual fees capped at FY 05 level
Fees, service levels benchmarked
177 performance metrics
Continuous improvement required
Built-in marketplace competition
Penalties for not attaining job creation
targets
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When will the partnership be implemented?
General Assembly review
Transition
Planning
Interim
Agreement
signed
Transition Planning
Completed
Transition Phase
Service
Commencement
Transition Activities
Completed
Transformation Phase
Transformation Activities Completed
Operational Phase
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What happens during each phase?
• Planning (Nov 05-Jun 06)
– Start-up activities, transition planning
• Transition (Jul 06-Jun 08)
– Infrastructure operations transfer to NG
– Completion of employee transition activities
• Transformation (Jul 06-Jun 09)
– PCs, servers, etc. moved to new technologies
• Operational ”Steady State” (Jul 09 on)
– Day-to-day operations in transformed environment
– Continued incremental improvements
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What are the key milestones?
Milestone
Anticipated Date
Complete transition
Service Commencement
+ 6 months
Move into new data center
Spring 2007
Establish back-up data center
Summer 2007
Complete initial desktop refresh
Fall 2007
Complete data/voice network upgrade
Winter 2008
Complete single enterprise e-mail
Spring 2009
Complete server consolidation
Spring 2009
• Subject to Revision During Interim Phase/Transition Planning
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For More Information
www.vita.virginia.gov
N. Jerry Simonoff
Director, Strategic Management Services
804.343.9001
[email protected]
www.northropgrumman.com
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