Agency Strategic Plan                   Fiscal Years 2013–2017                                      BY THETexas Department...
Contents          STATEWIDE ELEMENTS.........................................................................................
Self Evaluation and Opportunities for Improvement ...........................................................................
STATEWIDE ELEMENTS             Statewide Vision, Mission, and PhilosophyA. Statewide Vision          We must continue to a...
• Public administration must be open and honest, pursuing the high road rather than the            expedient course. We mu...
STATEWIDE ELEMENTS           Relevant Statewide Goals and Benchmarks          The Texas Department of Information Resource...
STATEWIDE ELEMENTS   Texas Department of Information Resources4                        Agency Strategic Plan for FY 2013–2...
AGENCY ELEMENTS                                             DIR Mission and PhilosophyA. Agency Mission          The missi...
AGENCY ELEMENTS   Texas Department of Information Resources6                     Agency Strategic Plan for FY 2013–2017
EXTERNAL/INTERNAL ASSESSMENT                                             Agency Scope and FunctionsA. Statutory Basis     ...
1999     The 76th Legislature established the Electronic Government Task Force to implement                  the state’s I...
DIR entered into a new contract to manage TexasOnline, effective January 1, 2010, that                    expanded service...
The enactment of HB 1504 (82R), effective June 17, 2011, changed statutory references                  from “TexasOnline” ...
C. Affected Populations          DIR’s key service populations include the Office of the Governor, the Texas Legislature, ...
Customer Groups         Services Provided                                                  GAA Strategy         State agen...
This division of DIR ensures Texas.gov, the Internet portal for the state, has reliable and secure          service levels...
– meet their changing telecommunications and system requirements               – are simple to understand, budget, and acq...
business intelligence, to generate greater cost savings and improve the quality of the state’s          investment in tech...
During the last Sunset Commission review of DIR as an agency, several areas of improvement         were identified that re...
EXTERNAL/INTERNAL ASSESSMENT                                                              Organizational AspectsA. Size an...
1. Governing Board         DIR is an executive agency governed by a ten-member board with seven voting members and        ...
and data communications support within the Capitol Complex. State agencies are required               to use TEX-AN and CC...
Office of General Counsel drafts, negotiates, reviews, and interprets contracts and other         agreements; supports the...
C. Geographical Location          DIR is located in the W.P. Clements, Jr. and Sam Houston Buildings in the Capitol Comple...
systems analysis, government accounting, network management, project management, web         administration, information s...
procurement. At the state level, the program provides significant opportunities for participating          agencies to inc...
The following table illustrates the statewide HUB activity through technology sourcing contracts         for FY 2011.     ...
During the last two years, the program has            • established a new Service Desk that takes requests, incident repor...
I. Use and Anticipated Use of Consultants         For the past biennium, DIR periodically used consultants to assist agenc...
EXTERNAL/INTERNAL ASSESSMENT                                                                                     Fiscal As...
B. Method of Finance         DIR is funded via interagency contracts and appropriated receipts.          Method of Financi...
• As cyber security threats continue to evolve, they challenge Texas’ ability to adequately              protect critical ...
EXTERNAL/INTERNAL ASSESSMENT | FISCAL ASPECTS    Department of Information Resources30                                    ...
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
Texas Dept of Information Resources Agency Strategic Plan
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Texas Dept of Information Resources Agency Strategic Plan

  1. 1. Agency Strategic Plan Fiscal Years 2013–2017 BY THETexas Department of Information Resources BOARD MEMBER DATES OF TERM HOMETOWN Charles Bacarisse 2/01/2007 to 2/01/2013 Houston Ramon Baez 5/06/2009 to 2/01/2015 Irving Rosemary R. Martinez 2/01/2007 to 2/01/2013 Brownsville Richard S. Moore 8/28/2009 to 2/01/2015 Goliad Phillip Keith Morrow 3/16/2011 to 2/01/2017 Southlake Robert E. Pickering, Jr. 5/06/2009 to 2/01/2015 Houston Wanda Rohm 3/16/2011 to 2/01/2017 San Antonio Louis Carr, Jr., ex officio 7/01/2011 to 2/01/2013 Austin Bowden Hight, ex officio 6/01/2012 to 2/01/2013 Austin Karen Phillips, ex officio 9/01/2011 to 2/01/2013 Austin Submitted July 6, 2012 Signed: Approved: Karen W. Robinson Charles Bacarisse Executive Director Board Chair
  2. 2. Contents STATEWIDE ELEMENTS.............................................................................................................................1 AGENCY ELEMENTS ..................................................................................................................................5 EXTERNAL/INTERNAL ASSESSMENT Agency Scope and Functions ..................................................................................................................7 A. Statutory Basis .................................................................................................................... 7 B. Historical Perspective ......................................................................................................... 7 C. Affected Populations ........................................................................................................ 11 D. Main Functions ................................................................................................................. 12 Organizational Aspects ....................................................................................................................17 A. Size and Composition of Workforce ................................................................................. 17 B. Organizational Structure................................................................................................... 17 C. Geographical Location ...................................................................................................... 21 D. Location of Service Populations ........................................................................................ 21 E. Human Resource Strengths and Weaknesses .................................................................. 21 F. Capital Assets .................................................................................................................... 22 G. Agency Use of Historically Underutilized Businesses (HUBs) ........................................... 22 H. Key Organizational Events and Areas of Change and Impact ........................................... 24 I. Use and Anticipated Use of Consultants .......................................................................... 26 Fiscal Aspects .......................................................................................................................................27 A. Size of Budget ................................................................................................................... 27 B. Method of Finance............................................................................................................ 28 C. Per Capita and Other State Comparisons ......................................................................... 28 D. Budgetary Limitations ....................................................................................................... 28 E. Degree to Which Current Budget Meets Current and Expected Needs ........................... 28 F. Capital and/or Leased Needs ............................................................................................ 29 Service Population Demographics ........................................................................................................31 A. Historical Characteristics .................................................................................................. 31 B. Current Characteristics ..................................................................................................... 32 C. Future Trends.................................................................................................................... 32 Technological Development .................................................................................................................35 A. Impact of Technology on Current Agency Operations ..................................................... 35 B. Impact of Anticipated Technological Advances ................................................................ 36 C. Degree of Agency Automation, Telecommunications, etc. .............................................. 37 D. Anticipated Need for Automation (Purchased or Leased)................................................ 37 Economic Variables ..............................................................................................................................43 A. Identification of Key Economic Variables ......................................................................... 43 B. Extent to Which Service Populations Are Affected by Economic Conditions ................... 43 C. Expected Future Economic Conditions and Impact on Agency and Service Populations........................................................................................................... 43 D. Agency Response to Changing Economic Conditions ....................................................... 44 Impact of Federal Statutes and Regulations ........................................................................................45 Other Legal Issues ................................................................................................................................47Texas Department of Information ResourcesAgency Strategic Plan for FY 2013–2017 iii
  3. 3. Self Evaluation and Opportunities for Improvement .......................................................................... 49 A. Agency Reviews ................................................................................................................ 49 B. Agency Characteristics Requiring Improvement .............................................................. 49 C. Key Obstacles.................................................................................................................... 50 D. Working with Other Government Entities to Achieve Success ........................................ 50 E. Key Resources ................................................................................................................... 51 F. Employee Attitudes .......................................................................................................... 51 AGENCY GOALS...................................................................................................................................... 53 TECHNOLOGY RESOURCES PLANNING .................................................................................................. 57 APPENDIX A. Agency Planning Process ................................................................................................. 65 APPENDIX B. Current Organizational Chart ........................................................................................... 67 APPENDIX C. Five-Year Projections for Outcomes ................................................................................ 69 APPENDIX D. Performance Measure Definitions ................................................................................... 71 APPENDIX E. Workforce Plan................................................................................................................. 81 APPENDIX F. Results of Employment Engagement Survey .................................................................... 95 ENDNOTES ............................................................................................................................................. 97 Texas Department of Information Resourcesiv Agency Strategic Plan for FY 2013–2017
  4. 4. STATEWIDE ELEMENTS Statewide Vision, Mission, and PhilosophyA. Statewide Vision We must continue to adhere to the priorities that have made Texas a national economic leader: • ensuring the economic competitiveness of our state by adhering to principles of fiscal discipline, setting clear budget priorities, living within our means, and limiting the growth of government • investing in critical water, energy and transportation infrastructure needs to meet the demands of our rapidly growing state • ensuring excellence and accountability in public schools and institutions of higher education as we invest in the future of this state and make sure Texans are prepared to compete in the global marketplace • defending Texans by safeguarding our neighborhoods and protecting our international border • increasing transparency and efficiency at all levels of government to guard against waste, fraud, and abuse, ensuring the Texas taxpayers keep more of their hard-earned money to keep our economy and our families strongB. Statewide Mission Texas state government must be limited, efficient, and completely accountable. It should foster opportunity and economic prosperity, focus on critical priorities, and support the creation of strong family environments for our children. The stewards of the public trust must be men and women who administer state government in a fair, just, and responsible manner. To honor the public trust, state officials must seek new and innovative ways to meet state government priorities in a fiscally responsible manner. Aim high . . . we are not here to achieve inconsequential things!C. Statewide Philosophy The task before all state public servants is to govern in a manner worthy of this great state. We are a great enterprise, and as an enterprise, we will promote the following core principles: • First and foremost, Texas matters most. This is the overarching, guiding principle by which we will make decisions. Our state, and its future, is more important than party, politics, or individual recognition. • Government should be limited in size and mission, but it must be highly effective in performing the tasks it undertakes. • Decisions affecting individual Texans, in most instances, are best made by those individuals, their families, and the local government closest to their communities. • Competition is the greatest incentive for achievement and excellence. It inspires ingenuity and requires individuals to set their sights high. Just as competition inspires excellence, a sense of personal responsibility drives individual citizens to do more for their future and the future of those they love.Texas Department of Information Resources STATEWIDE ELEMENTSAgency Strategic Plan for FY 2013–2017 1
  5. 5. • Public administration must be open and honest, pursuing the high road rather than the expedient course. We must be accountable to taxpayers for our actions. • State government has a responsibility to safeguard taxpayer dollars by eliminating waste and abuse and providing efficient and honest government. • Finally, state government should be humble, recognizing that all its power and authority is granted to it by the people of Texas, and those who make decisions wielding the power of the state should exercise their authority cautiously and fairly.STATEWIDE ELEMENTS Texas Department of Information Resources2 Agency Strategic Plan for FY 2013–2017
  6. 6. STATEWIDE ELEMENTS Relevant Statewide Goals and Benchmarks The Texas Department of Information Resources adopts the following General Government priority goals and benchmarks from Strengthening our Prosperity: The Statewide Strategic Planning Elements for Texas State Government.1A. Priority Goal To provide citizens with greater access to government services while reducing service delivery costs and protecting the fiscal resources for current and future taxpayers by • supporting effective, efficient, and accountable state government operations • ensuring the state’s bonds attain the highest possible bond rating • conservatively managing the state’s debtB. Benchmarks • Total state taxes per capita • Total state spending per capita • Percentage change in state spending, adjusted for population and inflation • State and local taxes per capita • Ratio of federal dollars received to federal tax dollars paid • Number of state employees per 10,000 population • Number of state services accessible by Internet • Total savings realized in state spending by making reports/document/processes available on the Internet and accepting information in electronic format • Funded ratio of state pension funds • Texas general obligation bond ratings • Issuance cost per $1,000 in general obligation debt • Affordability of homes as measured by the Texas Housing Affordability IndexTexas Department of Information Resources STATEWIDE ELEMENTSAgency Strategic Plan for FY 2013–2017 3
  7. 7. STATEWIDE ELEMENTS Texas Department of Information Resources4 Agency Strategic Plan for FY 2013–2017
  8. 8. AGENCY ELEMENTS DIR Mission and PhilosophyA. Agency Mission The mission of the Department of Information Resources (DIR) is to provide technology leadership, solutions, and value to Texas state government, education, and local government entities to enable and facilitate the fulfillment of their core missions.B. Agency Philosophy The services we provide to Texas state government, education, and local government entities will focus on excellence through quality of service, responsiveness, innovation, professionalism, and teamwork and we will operate in an open, ethical, efficient, and accountable manner, with high regard for all customers. We will foster and promote technology leadership by • providing quality service to our customers • encouraging strategic partnerships between the public and private sectors We will foster and promote technology solutions by • ensuring that business needs drive technology solutions • ensuring the public trust by securing technology assets and maintaining privacy of sensitive data and information We will foster and promote value to our customers by • encouraging use of managed technology infrastructure and shared services • delivering value to Texas citizens through the official state portalTexas Department of Information Resources AGENCY ELEMENTSAgency Strategic Plan for FY 2013–2017 5
  9. 9. AGENCY ELEMENTS Texas Department of Information Resources6 Agency Strategic Plan for FY 2013–2017
  10. 10. EXTERNAL/INTERNAL ASSESSMENT Agency Scope and FunctionsA. Statutory Basis DIR was created in 1989 when the Texas Legislature enacted Chapter 2054, Texas Government Code—the Information Resources Management Act. Since that time, the scope of responsibilities increased within Chapter 2054 with the addition of subchapters F, I, J, and K, which address the state electronic Internet portal, and subchapter L that addresses the consolidation of data center services. Two additional sections of the Texas Government Code (TGC) address security requirements and communications technology services: • TGC Chapter 2059 authorized creation of a network and security operations center and the provision of network security services by DIR for state agencies and others. • TGC Chapter 2170 authorized DIR to provide communications services to state agencies.B. Historical Perspective The State of Texas recognized the impact of information and data automation as early as 1967 and began a series of organizations and councils with increasing responsibility for information technology (IT) planning and assets. These early beginnings led to the formation of DIR in 1989. Significant events in DIR’s history are presented below. 1989 The Legislature enacted the Information Resources Management Act, creating the Department of Information Resources to replace the Automated Information and Telecommunications Council (AITC). The Act established a comprehensive information resources management cycle including components related to strategic and operational planning, budgeting, procurement, and performance evaluation. The Act required DIR to • develop a state strategic plan every two years for information resources management • compile an annual performance report examining the state’s use of technology • monitor national and international technology standards and trends • develop, publish, and ensure compliance with policies, procedures, and standards related to information resources management by state agencies • establish an information resources technology evaluation center for use by DIR and other state agencies 1992 The cooperative contract program began, with $24 million in customer purchases IT commodities and services in the first year. 1993 The 73rd Legislature required DIR to establish the state disaster recovery facility and data center in cooperation with Angelo State University. 1997 The 75th Legislature adopted Sunset legislation continuing DIR for 12 years, created the Year 2000 (Y2K) Project Office within the agency, and added internal quality assurance assistance to DIR’s duties.Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONSAgency Strategic Plan for FY 2013–2017 7
  11. 11. 1999 The 76th Legislature established the Electronic Government Task Force to implement the state’s Internet business portal. 2000 The cooperative contracts program was restructured so that customers order products and services directly from the vendor instead of through DIR; the program was rebranded as the “GoDIRect” program.” 2001 The 77th Legislature transferred the Telecommunications Services Division from the General Services Commission to DIR and established the Telecommunications Planning and Oversight Council to oversee planning and reporting functions of the division. Laws were also passed establishing the Program Management Office and a statewide security program within DIR, and the TexasOnline Authority to oversee the TexasOnline project managed by DIR. DIR’s executive director was statutorily designated as the state’s chief information officer. 2005 The 79th Legislature enacted House Bill (HB) 1516, HB 2819, and HB 3112 implementing most of DIR’s technology recommendations from its 2004 Biennial Performance Report, and ensuring a statewide enterprise approach to information resource management and cyber security. HB 1516 required state agencies to use DIR’s contracts to purchase commodities and to use the state data center if DIR determined that agencies’ use was cost-effective. The legislation also established the Texas Project Delivery Framework for use by state agencies, to select, control, and evaluate IT projects. HB 2819 authorized DIR to adopt rules, and provide training and technical assistance to agencies regarding compliance with access to electronic and information resources (EIR) for people with disabilities. HB 3112 required DIR to provide cyber security services to state agencies. 2006 DIR amended the contract with its TEX-AN (Texas Agency Network) provider, resulting in significant technology enhancements and reduced costs for its diverse customer base. DIR created a shared, statewide Internet protocol (IP) communications platform for TEX-AN in partnership with service providers. Representatives from DIR and the other 26 agencies participating in the statewide Data Center Services (DCS) program developed the request for offer (RFO), conducted the procurement, and executed the agreement. TexasOnline, offering more than 800 online services available, achieved financial “breakeven,” that is, the vendor recouped its initial capital investment in the portal. At that point, all assets were then transferred to the State of Texas. 2007 On March 31, the Texas DCS contract commenced. The contract established enterprise- managed services for the state by transitioning employees, hardware, leases, and licenses to the vendor team. As part of this effort, equipment from the agency data centers began to be migrated to two locations—one in Austin, one in San Angelo. 2008 The Network and Security Operations Center (NSOC) was opened. The NSOC provides security services to state agencies, including security event alerting and reporting, event correlation, and non-intrusive vulnerability scans. 2009 The 81st Legislature strengthened DIR’s cyber security program by authorizing DIR to develop rules regarding vulnerability testing of network hardware and software.EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONS Texas Department of Information Resources8 Agency Strategic Plan for FY 2013–2017
  12. 12. DIR entered into a new contract to manage TexasOnline, effective January 1, 2010, that expanded services to customers, utilized new Web 2.0 tools, and delivered significantly increased revenue to the state. The Texas Higher Education Coordinating Board, Texas Education Agency, Department of Insurance, and Department of State Health Services completed print and mail consolidation in the Austin Data Center, bringing the print and mail consolidation rate to 99 percent. The Office of the Attorney General and the Texas Railroad Commission completed mainframe consolidation in the Austin Data Center, resulting in one hundred percent of the data center mainframes being consolidated. Through the third quarter of FY 2009, customer purchases through cooperative contracts generated $893 million, or a 16 percent increase over the same period for the prior year, while posting a 34 percent increase in cost avoidance in the same comparative time. 2010 In January, the award for the state web portal contract became effective and the new vendor assumed responsibility for the portal as a result of the competitive procurement process. In June, DIR implemented an owner-operator governance model for the DCS program. This model involved customer agencies in the decision-making process and established partner agency groups for communication and representation. Also in June, TexasOnline was officially rebranded as “Texas.gov.” Texas.gov received the following recognitions: • Best of Texas award (Government Technology Conference Southwest) for Best Application Serving the Public • ClearMark award for Dynamic Media Public Sector • Gold Screen Award for Website Excellence • Web 2.0 and Social Media Award • Outstanding Government Marketing (GovMark Council) • Interactive Media Outstanding Achievement In June, Texas.gov, with more than one-thousand online services available, achieved a second financial “breakeven” for designated projects, which increases the state’s share of the revenue for those projects. In August, DIR notified the existing DCS service provider that all services under the DCS master services agreement would be reprocured. In November, DIR released two Data Center Services RFOs. The Service Delivery RFO was for five IT service delivery components: Mainframe, Server, Data Center Facilities, Network, and Print and Mail. The Service Integration RFO established a Multisourcing Services Integrator (MSI) to coordinate and integrate operations, thus ensuring seamless end-to-end service delivery across the service delivery components. 2011 DIR established the Internal Audit department.Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONSAgency Strategic Plan for FY 2013–2017 9
  13. 13. The enactment of HB 1504 (82R), effective June 17, 2011, changed statutory references from “TexasOnline” to “state electronic Internet portal.” In August, DIR began implementing legislation from the 82nd Legislative Session, as well as issues included in the agency’s most recent Sunset review. DIR is committed to implementing those Sunset recommendations that were not subject to the veto of HB 2499 and which the agency has authority to execute. In September, DIR created the Cyber Security Education and Economic Development Council, as provided by Senate Bill 988, to facilitate public and private partnerships to improve the infrastructure of the state’s cyber security operations, develop strategies to accelerate the growth of the cyber security industry, and encourage cyber security organizations to “call Texas home.” In October, DIR created the Statewide Information Security Advisory Committee (SISAC) as part of the statewide IT Enterprise Security and Risk Management program. The purpose of the committee is to foster collaboration among state agencies on the issue of information security. In December, DIR completed the reprocurement for the TEX-AN services resulting in 10 vendors being awarded contracts providing multiple telecommunications-based services. As a result of the reprocurement, DIR customers now experience expanded services, lower pricing, and greater visibility into their telecommunication services. Texas.gov received the following recognitions: • Gold Screen Award • Technology Solutions Award • ClearMark Award • Best of Texas • GovMarks Awards • Best Fit Integrator • Best of the Web • Interactive Media Awards 2012 In March, DIR completed the reprocurement of the Data Center Services contracts with three new service providers. This new DCS service delivery model provides increased flexibility to allow state agencies to adjust services to better manage their costs with greater visibility into how services are delivered. DIR began a public/private partnership pilot to compare cloud services from multiple providers and provision those services through a central self-service portal. The self- service portal or marketplace that offers these cloud services is called the Texas Cloud Self-Service Portal. This portal, the cloud services it provides access to, and the business and technical infrastructure that supports it, are collectively named the Pilot Texas Cloud Offering. The pilot program is designed to drive improvements into the pricing model and the business processes for public entities. It has also allowed DIR to implement legal, operational, and governance conditions for cloud services. To date in 2012, Texas.gov has received the following recognitions: the ClearMark Award and the International Association of Business Communicators – AustinEXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONS Texas Department of Information Resources10 Agency Strategic Plan for FY 2013–2017
  14. 14. C. Affected Populations DIR’s key service populations include the Office of the Governor, the Texas Legislature, oversight agencies, state agencies, institutions of higher education, local governments, school districts, political subdivisions, assistance organizations, and the citizens of Texas. The following table provides an inventory of DIR’s service population served by each strategy listed for the agency in the FY 2012/13 General Appropriations Act (GAA) and a brief description of the types of services provided to them. DIR Service Population Customer Groups Services Provided GAA Strategy State leadership, Produce the biennial State Strategic Plan for Information A.1.1 state agencies, local Resources Management and related performance reports and Statewide government, analyses, issue statewide recommendations, provide a Planning education technology trends and management practices education forum for state agency personnel, including information resources managers (IRMs), and conduct interagency and intergovernmental workgroups State agencies, local Develop rules and guidelines that establish statewide A.1.2 government, technology standards and best practices for agencies to Rule/Guideline education manage and align their technology with their business Development environments and to guide effective project delivery State agencies, local Develop statewide security standards for information resource A.1.3 government, assets and support the state’s Homeland Security efforts Statewide education through technical analysis, training and awareness efforts, and Security proactive prevention, threat reduction, and response to information resources security threats State agencies, local Manage a procurement infrastructure for information B.1.1 government, technology commodities and services, which maximizes the Contract education state’s volume buying power and enhances the quality of Administration purchases by negotiating, managing, and monitoring information and communications technology contracts State agencies Implement, monitor, and maintain consolidated data center B.2.1 services Data Center Services State agencies, local Manage Texas.gov, the State of Texas electronic government B.2.2 government, portal TexasOnline education, citizens State agencies, local Implement and maintain shared information technology B.2.3 government, services, comprising either voluntary services as an option to Shared Services/ education agencies or services provided through a Technology Center Tech Centers State government Maintain and increase the capabilities of the Capitol Complex C.1.1 Telephone System CCTS State agencies, local Maintain statewide network services and provide a shared C.2.1 government, infrastructure to support converged Internet Protocol (IP) Network education communications services ServicesTexas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONSAgency Strategic Plan for FY 2013–2017 11
  15. 15. Customer Groups Services Provided GAA Strategy State agencies, local Provide converged network security service, including C.2.2 government, telecommunications networks, that encompass network Network & education assessments and monitoring, as a proactive means to identify Telecom and remediate vulnerabilities and external network threats for Security Services participants of the state’s Network and Security Operations Center and security services for other eligible entities when requested and approved Exemplary customer service is a primary goal of every DIR initiative. DIR determines its customers’ needs through a variety of avenues such as the state portal, point-of-service surveys, and ongoing customer assessments, as well as through extensive collaboration with other agencies on every major statewide technology initiative. Customer feedback, from individual citizens, public school and university educators, and fellow state agencies, is also a key driver in the design of DIR’s services and products. A more detailed description of DIR’s service population is included in the Service Population Demographics section.D. Main Functions Since inception, DIR has been responsible for the state’s strategic direction for technology along with the development and enforcement of technology policies and standards for state agencies. The agency has been given additional responsibility to manage and deliver information technology services. DIR’s main services include Information Security, eGovernment (including Texas.gov), Communications Technology Services, Technology Sourcing Office, Data Center Services, and Technology Planning and Policy. 1. Information Security DIR provides computer network security services to state agencies according to TGC Chapter 2059. DIR manages the state’s IT Security program, which is responsible for the security of information and communications technology resources, including the physical and logical security of the state’s data systems and networks. This is a shared responsibility with other state agencies that requires continuous, coordinated, and focused efforts. The IT Security program • operates the Security Operations Center • conducts technical security and risk assessments for state agencies, institutions of higher education, and local governments • maintains secure communication portals and channels to foster information sharing among state agency information security officers • provides advanced IT Security and Incident Response training and identifies network and website vulnerabilities in the state’s critical infrastructure • provides remediation consulting services to mitigate or remediate vulnerabilities 2. eGovernment DIR’s eGovernment services division comprises DIR’s internal IT department and a team that oversees the Texas.gov program and evaluates new technologies to identify opportunities to enhance public entity IT portfolios.EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONS Texas Department of Information Resources12 Agency Strategic Plan for FY 2013–2017
  16. 16. This division of DIR ensures Texas.gov, the Internet portal for the state, has reliable and secure service levels including the guidance, tools, and policies necessary for state and local government to offer Internet-based services to businesses and citizens. DIR established and maintains the state Internet portal in accordance with TGC Chapter 2054, Subchapters F and I. Texas.gov is the premier award-winning source for Texas government information and services provided over the Internet. At the direction of the Legislature, DIR created the portal in 2000 as a pilot to determine if a state Internet portal could successfully deliver services to citizens in a public-private partnership model. The business model provides that the vendor invests funds to develop and operate the portal and applications, and receives a share of the portal-generated revenue as compensation to reinvest in the program to continue development. The state also receives a share of revenue, which is deposited into the state General Revenue fund. This business model was among the first of its kind in the public sector and continues to draw interest from other states and governmental entities. Eleven years later, Texas.gov continues to be a highly regarded and successful program. Texas.gov offers more than 1,000 services in a secure, technical, and service infrastructure. By sharing the processes and systems of Texas.gov, publicly funded entities are able to reduce redundancy of effort and leverage economies of scale. One example of this is the enterprise credit card processing engine and associated infrastructure that supports all online payment transactions. This infrastructure eliminates the need for each individual agency to contract with independent service providers and create duplicative processing systems. This is the most cost- efficient strategy in that it allows the state to aggregate payment transactions for the highest possible volume discount. Current Texas.gov initiatives include a new application for the Texas Department of Criminal Justice, upgrades to the eFiling application used by Texas County, District, Probate, Appellate and Supreme Courts, and updates to drivers’ license applications for the Texas Department of Public Safety. 3. Communications Technology Services DIR procures and provides telecommunications services to state agencies and other Texas governmental entities as directed by and in accordance with TGC Chapter 2170. DIR manages the statewide telecommunications network, referred to as TEX-AN, which • provides a portfolio of local and long-distance voice, video, and data services through vendor- and state-managed telecommunication networks • supplies various local and long distance phone services for state office buildings through the Capitol Complex Telephone System (CCTS) • provides secure Internet access for all state agencies • supports customer care for delivered services • offers contract governance with agency participation TEX-AN offers expanded telecommunications services and • supports the needs of more than 700 state and local government agencies • is adaptable to changing customer requirements • can rapidly incorporate new and emerging technologies • provides DIR’s customers with expanded services and solutions that – are cost-competitive and affordableTexas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONSAgency Strategic Plan for FY 2013–2017 13
  17. 17. – meet their changing telecommunications and system requirements – are simple to understand, budget, and acquire – provide transparency into service performance 4. Technology Sourcing Office TGC § 2157.068, authorizes DIR to establish contracts for information technology commodity items. This statute designated the department as the central purchasing entity to leverage the bulk buying power of the state into significant savings on IT investments for governmental entities, including hardware, software, and technology services. DIR developed and now manages the statewide contracts for technology commodities and services, now referred to as technology sourcing contracts. The Technology Sourcing Office comprises the former Cooperative Contracts division and the former Enterprise Contracts division as part of an overall consolidation of DIR’s contracting function. Currently, over 750 IT commodity contracts are in place for products and services, including • computers • software • security hardware, software and services • networking equipment • telecommunications equipment • IT staffing services • technology-based training Requests for products and services have increased dramatically since the program’s inception. This program generates more than $236 million in cost savings annually for DIR customers by maximizing the state’s volume buying power and streamlining the procurement process for DIR’s customers. Customers of this program include • state agencies • institutions of higher education • units of local government, including cities, counties, public • school districts, municipalities, and special purpose districts • others, including assistance organizations and public entities outside Texas In addition to direct product/service cost savings, agencies are able to avoid certain costs such as the expenses of identifying, evaluating, and negotiating for products and services and the cost of related time delays. The value of significant direct and indirect cost savings also has resulted in the consistent growth in use of these Total Cooperative Contracts Sales – FY 2011 contracts by eligible customers. State By Customer Channel agencies and public education, including higher education, customers now account for Local State 74 percent of all purchases made through Government Agencies DIR contracts. $407M | 25% $507M | 31% To better serve its customers, DIR seeks to understand their purchasing needs and Other habits. DIR has implemented program $10M | 1% Higher Ed + K–12 analytics, such as spend analysis and $704M | 43%EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONS Texas Department of Information Resources14 Agency Strategic Plan for FY 2013–2017
  18. 18. business intelligence, to generate greater cost savings and improve the quality of the state’s investment in technology commodities. 5. Data Center Services As authorized in statute (TGC Chapter 2054, Subchapter L) DIR manages the Data Center Services program. Under this program, the data centers of 28 agencies have been consolidated into two locations, Austin and San Angelo. The consolidation is designed to result in technology upgrades and improvements in addition to cost savings as a result of statewide economies of scale. This initiative enables agencies to access data center computing as a managed service and pay for the amount of services used, rather than invest in hardware, software, and staff to operate and maintain IT infrastructure at an individual agency level. The data center solution also provides more transparency into the costs of these services because all participating agencies have a DCS budget rather than incorporating these costs in agency administrative and capital expense items. 6. Technology Planning and Policy TGC Chapter 2054 authorizes DIR to coordinate and direct the use of information resources technologies by state agencies. DIR provides technology planning, policy, and standards to agencies throughout the state and works closely with them to ensure the efficiency and effectiveness of policies and planning tools. DIR delivers these services through • Technology Planning and Reporting to improve the management and use of information resources • Technology Policy Management to facilitate and guide the development and administration of statewide and agency technology policies, standards, guidelines, and procedures • Internal Rule and Policy Management supports DIR’s obligations to continuously monitor and improve its rule-making and policy development functions in accordance with statute • Electronic and Information Resources Accessibility to support state agencies in complying with state and federal requirements and ensuring that Texas government information and services are accessible to everyone • Statewide Project Delivery to help state agencies in managing and implementing technology projects • Education and Outreach to provide information and guidance through conferences, briefings, and events on technology areas of interest to information resources managers and IT staff E. Public Perception of DIR DIR is perceived as an agency that enables other government entities to achieve their core missions by providing knowledge, value, and resources associated with technology. Although the general public has only an indirect exposure to DIR through the state’s portal, Texas.gov, their use of the services indicates an experience that provides value. As the state’s technology leader, DIR establishes policies and guidelines for information resources management, produces the strategic plan for the state’s technology resources, and reports on progress to the Legislature. With technology touching almost every aspect of government, this leadership role is critical.Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONSAgency Strategic Plan for FY 2013–2017 15
  19. 19. During the last Sunset Commission review of DIR as an agency, several areas of improvement were identified that require additional focus: • developing a more customer-focused organization • strengthening internal processes and procedures • breaking down organizational silos within the agency Continuous improvement is critical for DIR to be fully responsive to its customers’ needs. As the state technology agency, DIR must provide its customers with access to the most up-to-date technology and services. This includes • the protection offered through the IT Security program • the services and products available through the Technology Sourcing and Communications Technology Services programs • the hardware and software provided for Data Center Services • the shared platform and payment gateway of Texas.gov, which allows state agencies to conduct state business directly with citizens and businesses • policy guidance through the Planning and Policy program Regular satisfaction surveys are conducted at the state agency level regarding the DCS program. DIR recognizes that state agencies continue to have concerns about the program. With the reprocurement of the program completed and current efforts to improve and stabilize processes, DIR believes that customer satisfaction will dramatically improve. As a part of the continuous improvement process, the agency assessed the 2011 Sunset Commission recommendations, HB 2499, recent audits, customer satisfaction survey results, and other reviews. DIR is implementing appropriate provisions in order to be more responsive to the agency’s key stakeholders. Thorough planning and implementation of appropriate improvements will include clear baselines and performance measures. In June, DIR conducted a facilitated focus group session to seek comprehensive input from DIR customers. DIR is evaluating the results of the focus group, along with the results of the Customer Service Report, to develop strategies that enhance service and respond to concerns raised by customers. Additionally, DIR continues to collaborate with our state agency partners in delivering innovative technology while providing overall guidance in the implementation and management of the technology. DIR strives to provide customers with appropriate technology solutions based on partner agencies’ needs while leveraging cost-effective strategies during difficult budgetary and economic climates.EXTERNAL/INTERNAL ASSESSMENT | AGENCY SCOPE AND FUNCTIONS Texas Department of Information Resources16 Agency Strategic Plan for FY 2013–2017
  20. 20. EXTERNAL/INTERNAL ASSESSMENT Organizational AspectsA. Size and Composition of Workforce As of June 1, 2012, DIR has 188 budgeted full-time equivalent positions. The composition of the agency’s workforce based on required reporting categories is presented below. DIR Workforce Composition – Actual Anglo Black Hispanic Other Reporting Category M|F M |F M|F M|F Total Official / Administration 8 |8 1 |0 3 |0 12 | 8 Professional 43 | 48 2 |7 1 |9 2 |4 47 | 68 Technicians 12 | 3 2 |2 8 |1 0 |1 22 | 7 Administrative Support 1 |3 0 |4 0 |5 1 | 12 Service/Maintenance 0 |2 0 |0 1 |4 1 |6 Agencywide 64 | 64 5 | 13 13 | 19 2 |5 84 | 101 Source: DIR Human Resources Office (May 1, 2012)B. Organizational Structure Governor DIR Governing Board Internal Audit Executive Director/ Texas Chief Technology Officer Chief Information Chief General Chief Chief Security Operations Counsel’s Administrative Financial Office Office Office Office Office • Communications • Communications Technology and Strategic Services Partnerships • Data Center • Human Resources Services and • Technology eGovernment Planning and • Technology Policy Sourcing OfficeTexas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTSAgency Strategic Plan for FY 2013–2017 17
  21. 21. 1. Governing Board DIR is an executive agency governed by a ten-member board with seven voting members and three ex officio, non-voting members. The voting members are appointed by the Governor with the advice and consent of the Texas Senate and serve for staggered six-year terms. One appointed member must be employed by an institution of higher education as defined by Section 61.003, Texas Education Code. The ex officio members come from two groups of three agencies, each who serve on the board for two-year terms on a rotating basis. House Bill 675, as enacted by the 80th Texas Legislature, allows an ex officio member of the DIR Board to designate a senior agency manager to serve in the member’s place. This legislation also changed one ex officio member from the commissioner of the Workers Compensation Commission to the commissioner of the Department of Insurance. The Internal Auditor reports to the DIR Board. 2. Executive Director’s Office In addition to the state’s Chief Information Officer, who serves as the Executive Director of DIR, the office includes the Chief Operating Officer, the General Counsel, the Chief Financial Officer, the Chief Administrative Officer, the state’s Chief Information Security Officer, and administrative support staff. The Executive Director’s Office provides overall technology leadership and direction to the state and the agency as well as coordination of key statewide initiatives. Additionally, the Internal Auditor, who reports directly to the DIR Board, provides updates and information to the Executive Director. 3. Internal Audit DIR’s Internal Audit division’s mission is to assist DIR management by examining and evaluating (1) the adequacy and effectiveness of the agency’s control processes and (2) the quality of operations and services performed in carrying out assigned responsibilities. Internal Audit provides an independent review for the agency, including objective analysis, information, and recommendations for remediation. The division provides any needed follow-up reviews to ensure that corrective action has been taken and has gained intended results. Additionally, the division performs an enterprise risk assessment annually, which is used to develop the board- approved annual internal audit plan. During the year, the division performs scheduled audits, board-requested projects, investigations and monitors agency activities. The division also acts as a liaison between any external audits and DIR. 4. Chief Operations Office The Chief Operations Office leads the technology operations and service functions within DIR including: Communications Technology Services, Data Center Services, eGovernment, and Technology Sourcing Office. (a) Communications Technology Services (CTS) The CTS Division manages the statewide communications network infrastructure known as TEX-AN, which provides voice, video, and data including integrated voice response, telephony, wide area network, virtual private network, and call solutions to state agencies, political subdivisions, local governments, independent school districts, certain institutions of higher education, and assistance organizations. These services are provided to eligible customers through the operation of DIR networks and through numerous contracts for related services. DIR manages the Capitol Complex Telephone System, which delivers voiceEXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTS Texas Department of Information Resources18 Agency Strategic Plan for FY 2013–2017
  22. 22. and data communications support within the Capitol Complex. State agencies are required to use TEX-AN and CCTS unless a waiver is granted. (b) Data Center Services As authorized by statute (TGC Chapter 2054, Subchapter L) DIR manages the Data Center Services program. Through this program, DIR has consolidated the data centers of 28 agencies into two locations—Austin and San Angelo. The consolidation is designed to result in technology upgrades and improvements in addition to cost savings as a result of statewide economies of scale. (c) eGovernment Texas.gov is the official eGovernment website for the State of Texas. As a self-supporting public-private partnership with Texas NICUSA, the site offers more than 1,000 convenient online services, including driver’s license and vehicle registration renewals, vital records retrieval, licenses for concealed handguns, capitol access, and professional occupations and facilities in a secure technical and service infrastructure for more than 100 public customers. Since its inception in 2000, Texas.gov has – had over 200 million site visits – processed nearly 170 million financial transactions – collected and processed over $23 billion on behalf of Texas public entities – contributed over $110 million to the Texas State Treasury This team also researches and makes recommendations regarding technologies about which state agencies and/or state leadership have expressed interest. To date, the team analyzed the potential role of cloud infrastructure in agencies’ IT portfolios and evaluated the pros and cons of Texas-related top-level domains. Research also continues on the merits and limitations of opening up the .texas.gov domain to requesting cities and counties; the resource requirements, benefits, and costs of an enterprise approach to Open Data; and the feasibility of including third-party mapping capability on Texas.gov. (d) Technology Sourcing Office Through the Technology Sourcing Office (formerly known as the Cooperative Contracts and Enterprise Contracts divisions), DIR provides technology products and services to customers while leveraging volume discounts. DIR continues to add new products and services to address the changing needs of its customers. Without this function, state and local governmental entities would not benefit from the aggregated buying power of the state and would be required to conduct procurements for each product and service individually, adding significant costs to state and local government. 5. Chief Information Security Office The Chief Information Security Office delivers security information management and vulnerability assessment services to DIR’s state agency partners, local governments, and institutions of higher education. The office also develops statewide security policies and best practices, maintains a 24/7 security alert and response system, and promotes security awareness through training. 6. General Counsel’s Office The Office of General Counsel provides legal counsel and advice to the board and executive director, as well as general legal support for DIR staff functions. For all DIR program areas, theTexas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTSAgency Strategic Plan for FY 2013–2017 19
  23. 23. Office of General Counsel drafts, negotiates, reviews, and interprets contracts and other agreements; supports the procurement process; coordinates litigation with the Office of the Attorney General; coordinates the rulemaking process; handles matters related to the Public Information and Open Meetings Acts; and handles legal matters related to human resources and ethics compliance. 7. Chief Administrative Office The Chief Administrative Office oversees Technology Policy and Planning, Governmental Relations, Communications, and Human Resources activities for DIR. (a) Technology Planning and Policy State agencies and institutions of higher education invest more than $2.8 billion annually on technology resources;2 therefore, delivering projects within scope, on time, and on budget is critical to the state. With legislative and DIR Board direction, along with state agency collaboration, DIR develops policies, procedures, and standards to guide agencies in planning, reporting, and managing technology resources. Finally, the Planning and Policy Office has been charged with coordinating governance among agency programs to facilitate common practices and clear communication channels. (b) Governmental Relations Governmental Relations duties include responding to legislative inquiries or requests and coordinating agency responses to leadership on issues of interest. Governmental Relations monitors legislation and ensures implementation of all legislative requirements after bills are enacted. Governmental Relations reports regularly to the board and executive director on legislative issues and compliance progress. (c) Communications Communications duties include responding to media inquiries and appropriately handling agency records through records retention management. It also includes a number of activities to ensure the appropriate delivery of information to external stakeholders, the public, and within the agency. (d) Human Resources Human Resources supports the agency by managing personnel and assisting in recruiting, hiring, developing, and retaining a diverse and skilled workforce. Human Resources oversees job classification and employee compensation as guided by the State Auditor’s Office and ensures compliance with federal and state laws related to employee pay and labor standards. Human Resources also guides benefits administration, employee wellness, and employee relations issues through the coordination of various programs and staff communications. 8. Chief Financial Office The Chief Financial Office is responsible for supporting DIR’s goals and objectives by providing agency management and the board with reliable financial information and analysis, and ensuring compliance with finance-related laws and regulation. The office is also responsible for compiling and reporting DIR’s performance measures and all finance-related reports, such as the Legislative Appropriations Request, Annual Operating Budget, and Annual Financial Report. As DIR is primarily a cost-recovery agency, the office develops cost-recovery administrative fees that recover DIR operating expenses while ensuring that fund balances are effectively managed.EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTS Texas Department of Information Resources20 Agency Strategic Plan for FY 2013–2017
  24. 24. C. Geographical Location DIR is located in the W.P. Clements, Jr. and Sam Houston Buildings in the Capitol Complex. DIR also houses a statewide network and security operation function at a secure facility in north- central Austin. DIR also oversees the management of the Austin Data Center and Texas State Data Center in San Angelo. These facilities are used by state agencies and universities and operated by a private vendor under contract to DIR.D. Location of Service Populations DIR’s services are available to public entities in Texas, including state agencies, cities, counties, universities, school districts, and other political subdivisions. The service population is divided by the boundaries of their jurisdictions instead of by DIR regions or divisions. DIR maintains ongoing contact with its customers using both technology tools and personal contact to engage this diverse population. General contact includes information sharing on products and services available through the Technology Sourcing Office, the state data center, Texas.gov, and TEX-AN, and information gathering to enhance services offered. Forums to reach DIR customers include • webinars, webcasts, and other Internet-based media channels • targeted communications to key customer segments (direct mail, e-mail, bulletins, surveys) • educational events • customer service representatives • work groups, focus groups, councils, and committees • conferences • partnerships with governmental entities and trade associations that reach DIR’s targeted audiences • vendors’ promotion of DIR’s enterprise and cooperative contracts TGC § 2056.002(b)(8), requires agencies to describe services to specific geographic service regions (the Texas-Mexico and the Texas-Louisiana border regions). The Texas-Mexico border region encompasses 43 south and west Texas counties, and the Texas-Louisiana border region encompasses 18 northeast Texas counties. DIR serves state agencies, higher education institutions, and local governments that provide services throughout the state and to these specific geographic service regions.E. Human Resource Strengths and Weaknesses DIR’s talented workforce remains its greatest resource. Over the next five years, 45 percent of key staff members will be eligible to retire. Replacing the institutional knowledge and broad experience DIR currently has may be more difficult if employment forecasts and the economy improve. In addition, attracting and retaining employees with strong information technology knowledge may become more difficult as hiring in the technology sector gains momentum and private-sector salaries outpace those available in state government. There are a number of skills that are critical to the agency’s ability to execute its business functions and legislative mandates effectively and efficiently. These skill sets include leadership, management, contract management, negotiations, communications technology services,Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTSAgency Strategic Plan for FY 2013–2017 21
  25. 25. systems analysis, government accounting, network management, project management, web administration, information security analysis, and data center operations management and consolidation. DIR is dedicated to its role as the chief information resources agency for the state and strives to hire and retain employees whose knowledge of and experience in information and communications technology is exceptional. Developing long-term strategies for acquiring and retaining staff to achieve program goals continues to be of critical importance. In accordance with the agency’s Workforce Plan (see Appendix E), DIR will continue to identify the critical skills and competencies needed to achieve desired program results and will refine hiring and training strategies that can be implemented with available resources.F. Capital Assets 1. State Data Center System DIR oversees management of the Austin Data Center and Texas State Data Center in San Angelo. These facilities are used by state agencies and universities and are operated by a private vendor under contract to DIR. 2. Capitol Complex Telephone System DIR provides and supports the communications system for the Capitol Complex. The CCTS program delivers communications technology services to support the needs of the Governor’s Office, state agencies, the Texas Legislature, and legislative agencies in the Capitol Complex. It includes a private branch exchange, voice mail systems, automatic call distribution services, and local and long distance services. 3. Austin Metropolitan Area Network (AMAN) The network facilitates cost-effective communications access to shared services supported by DIR such as data center and Texas.gov. In addition, AMAN provides the foundation for the TEX-AN voice and data services provided to publically funded entities in Austin. 4. Enterprise MPLS Network DIR manages a robust and resilient platform utilizing multiprotocol label switching (MPLS) that delivers quality service for data, voice, video transport, and Internet. This platform provides Internet Service Gateways (ISGs) in 18 locations across the state, including all local access transport areas. DIR’s customers include the agencies served by the former Health and Human Services Consolidated Network, which provided the legacy platform that was transferred to DIR. Additionally, the agency has continued to work in partnership with interested agencies to further leverage value for the enterprise network solution. 5. Network and Security Operations Center The NSOC protects the state’s information assets from unauthorized external intervention or improper use. The NSOC is a secure and resilient facility that provides a cost-effective, first- priority source of network security services.G. Agency Use of Historically Underutilized Businesses (HUBs) DIR’s HUB program has the dual role of increasing HUB participation at the state level through the Technology Sourcing Contracts program and at the agency level through internalEXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTS Texas Department of Information Resources22 Agency Strategic Plan for FY 2013–2017
  26. 26. procurement. At the state level, the program provides significant opportunities for participating agencies to increase their HUB utilization. DIR’s internal policy is to use HUBs for goods and services whenever feasible. As of August 2011, of the 691 technology sourcing contracts that are managed by DIR and utilized by state agencies and local governments, 200 (29 percent) are prime HUB vendors. Additionally, 329 HUB resellers are available through the contracts for a total of 529 HUB avenues. HUB participation through the Technology Sourcing Contracts program consisted of $447 million in HUB sales in FY 2011. Internally, DIR uses the Comptroller of Public Account’s Centralized Master Bidders List, and each appropriate HUB vendor is given an opportunity to respond to a request for offer. DIR posts RFOs for 30 days, exceeding the state’s requirement of 14 days in a good faith effort to include HUBs. DIR is committed to promoting and increasing HUB contracting opportunities, which include the following good faith efforts: • developing prime contractor and HUB subcontractor relationships through DIR’s Mentor Protégé program • increasing awareness of DIR procurement opportunities through the agency’s website, Electronic State Business Daily, local commerce events, and statewide forums • including HUB coordinator at pre-bid conferences to provide subcontracting instructions • hosting an annual economic opportunity forum • coordinating networking opportunities for vendors to meet key DIR staff • increasing attendance at economic opportunity forums and HUB-oriented trade fairs with bid opportunities • identifying and assisting HUB contractors who need certification or re-certification DIR HUB Activity and Statewide Technology-Based HUB Activity The following table illustrates the FY 2011 HUB activity as reported for DIR by the Office of the Comptroller. DIR HUB Activity – FY 2011 Measure Description Activity Outcome Measure Percentage of total dollar value of contracts and subcontracts 16.7% awarded to HUBs Output Measures Number of HUB contracts and subcontracts awarded 568 Number of HUB contractors and subcontractors for bid proposals 136 Number of Mentor Protégé Agreements executed 4 Number of HUB forums and outreach efforts attended 12 Dollar value of HUB contracts and subcontracts awarded $8,058,451Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTSAgency Strategic Plan for FY 2013–2017 23
  27. 27. The following table illustrates the statewide HUB activity through technology sourcing contracts for FY 2011. Statewide HUB Activity through Technology Sourcing Contracts – FY 2011 Measure Description Activity Outcome Measure Number of HUB avenues 529 Output Measures Percentage of dollars awarded to HUBs through Cooperative 27% Contracts Number of HUB forums and outreach efforts attended 12 Dollar value of HUB contracts awarded $447 MillionH. Key Organizational Events and Areas of Change and Impact Four key events have occurred during the last biennium that have changed and impacted the business operations at DIR. Each has brought positive opportunities that DIR will leverage for the benefit of customers and citizens alike. 1. Agency Organizational Changes DIR streamlined operations and staffing levels to better serve our agency partners and reduce the organizational silos within the agency. First, the agency reduced staff levels significantly to gain additional efficiencies from staff. Additionally, DIR restructured the agency by creating two new senior management positions—the Chief Operating Officer (COO) and the Chief Administrative Officer (CAO). The COO is responsible for leading the technology operations and service functions within DIR, including Communications Technology Services, Data Center Services, eGovernment, and the Technology Sourcing Office. The CAO oversees the agency’s governmental relations efforts as well as all communications to key stakeholders to ensure timely, relevant information about DIR’s programs is shared with agency partners. Finally, the Planning and Policy Office under the CAO has been charged with coordinating governance among agency programs to facilitate common practices and clear communication channels. 2. Texas.gov The Texas.gov program successfully moved to the TexasOnline 2.0 Master Agreement, the contract that guides the program until 2016. This transition required the • re-signing of all 101 Customer Agreements by state agencies, courts, counties and cities around the state • establishment of six governance councils designed to provide guidance and transparency to the developments and operations of the program • finalization of 15 program plans such as Disaster Recovery and Business Continuity, Security Management, Portfolio Management, Training, Help Desk Management, etc., that ground and guide operation and implementation decisions • development of new reports such as the Application Availability and Reliability Report, the Customer Satisfaction Report, the Portal Accessibility Compliance Report, the Incident Report, and the Help Desk Report to feed the performance metrics laid out in the new contractEXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTS Texas Department of Information Resources24 Agency Strategic Plan for FY 2013–2017
  28. 28. During the last two years, the program has • established a new Service Desk that takes requests, incident reports, and escalations from external help desks and customers to ensure that solutions are based on a thorough awareness of issues and problems • validated Payment Card Industry (PCI) data security compliance in customer agencies • developed new applications for Concealed Handgun Licenses (for DPS), Vehicle Inspection Stations (for DPS), Commissary Transactions (for TDCJ), Capitol Access (for DPS), Public Information Requests (for OAG), Web Analytics Portal (all hosted customers) • launched successful radio, web, print, and television marketing campaigns that have resulted in measurable increases in adoption DIR reviews the governance of the Texas.gov program regularly to assure that Texas.gov boards and councils are aligned with overall program strategies. Through the review, DIR assesses the impact of emerging technologies, economic trends, social media, etc., on the program and identifies opportunities for improvement. 3. Data Center Services Reprocurement The DCS program enables participating agencies to benefit from shared technology infrastructure services. These services are required by all agencies; by consolidating to the two statewide data centers, the state lowers overall operating costs for these basic operations while ensuring greater visibility into expenditures and service levels. DIR recently completed the procurement of the new Data Center Services contracts with three new service providers. The new contracts will provide an innovative, flexible solution to meet the needs of Texas citizens while better serving our agency partners and delivering improved services. 4. TEX-AN DIR completed the reprocurement of TEX-AN services in December 2011, which resulted in multiple contract awards with an enhanced suite of services based on customers’ needs. The strategic focus of the reprocurement included the following objectives: • establish competition to drive pricing down and expand offerings • improve the customer experience • establish flexible contract vehicles to take advantage of new technologies • increase transparency into service performance • evolve the DIR business structure to support these goals DIR strives to deploy technology solutions to meet state agencies’ core missions to serve Texas citizens. As part of this effort, DIR’s IT infrastructure strategy team developed a long-term approach that includes the benefits of cloud computing to obtain efficiencies and optimization in both services and delivery. DIR implemented several systems to align with the procurement solution. These systems work together to provide service delivery automation for ordering, billing, and managing telecommunications services while increasing transparency into service performance.Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTSAgency Strategic Plan for FY 2013–2017 25
  29. 29. I. Use and Anticipated Use of Consultants For the past biennium, DIR periodically used consultants to assist agency staff with specific reprocurement projects. The agency anticipates the continued, but limited, use of outside consultants for technical expertise with regard to complex procurement and contracting activities. During the last Sunset Commission review of DIR, the Commission recommended that DIR develop a policy governing the appropriate use of outside consultants in order to improve agency oversight. The development of a policy governing the usage of outside consultants will aid DIR in managing these necessary costs while still delivering technology solutions to agency partners and key stakeholders.EXTERNAL/INTERNAL ASSESSMENT | ORGANIZATIONAL ASPECTS Texas Department of Information Resources26 Agency Strategic Plan for FY 2013–2017
  30. 30. EXTERNAL/INTERNAL ASSESSMENT Fiscal AspectsA. Size of Budget FY 2008/09 Biennium FY 2010/11 Biennium FY 2012/13 Biennium $520,723,125 $606,073,030 $537,516,671 1. Pass-Through Funds Approximately 86 percent of DIR’s appropriations for the FY 2012/13 biennium consist of “pass-through” funds designated for payment of consolidated data center services for the 28 state agencies participating in the DCS program and for payment to telecommunications providers for TEX-AN and CCTS services provided to DIR customers. 2. Funding Model Since FY 2008, over 99 percent of DIR’s operations are funded through fees collected from customers via interagency contracts and appropriated receipts. The fees vary depending on the nature and scope of the services provided to customers. Fees are established based on DIR’s costs of providing the services. In addition, DIR is appropriated a small amount of General Revenue (GR) for the operations of the Texas.gov program. The GR funding DIR receives for the Texas.gov program represents a small portion of the GR collected through the program. DIR was also appropriated $13.3 million GR for the FY 2012/13 biennium for the Enterprise Resource Planning (ERP) project under the direction of the Comptroller. DIR transfers these funds directly to the Comptroller. Method of Financing FY 2012 Estimated FY 2013 Appropriated Appropriated Receipts – Clearing Fund $8,964,388 $5,928,424 Appropriated Receipts – Telecommunications Revolving Fund $12,815,822 $12,967,452 Appropriated Receipts – Statewide Technology Account $1,892,286 $1,892,286 Interagency Contracts – Clearing Fund $90,550 $2,540,754 Interagency Contracts – Telecommunications Revolving Fund $77,155,462 $79,753,631 Interagency Contracts – Statewide Technology Account $168,391,294 $150,432,931 General Revenue – Texas.gov $677,739 $677,739 General Revenue – ERP $6,737,961 $6,597,952 Total $276,725,502 $260,791,169Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | FISCAL ASPECTSAgency Strategic Plan for FY 2013–2017 27
  31. 31. B. Method of Finance DIR is funded via interagency contracts and appropriated receipts. Method of Financing FY 2012 Estimated FY 2013 Appropriated Interagency Contracts 88.8% 89.2% Appropriated Receipts 8.6% 8.0% General Revenue – ERP 2.4% 2.5% General Revenue – Texas.gov 0.2% 0.3% Total 100.0% 100.0%C. Per Capita and Other State Comparisons DIR estimates that Texas state government, including public institutions of higher education, spent approximately $2.8 billion on information technology in FY 2010.3 This amount reflects 2.7 percent of total state expenditure. State technology spending is predicted to continue to grow, from $30 billion across all states in 2007 to $42 billion in 2012. Some slowing of growth is predicted due to the conclusion of state consolidation and modernization efforts. The primary drivers of technology spending in the states—consolidation, integration, security, and privacy issues—are predicted to continue into the future. DIR will update total IT spending figures for state government in its upcoming biennial performance report (November 2012).D. Budgetary Limitations The General Appropriations Act establishes separate accounting funds, along with unique criteria and restrictions, which apply to each of DIR’s revenue-generating programs. The budget structure required to meet the GAA requirements and compliance with the associated restrictions can limit DIR’s ability to meet the comprehensive funding needs for all agency activities. For example, the costs associated with certain activities mandated by legislation that are not revenue generating, such as security, technology policy and planning, etc., must be funded as “indirect” costs via allocation to the revenue-generating programs. Specific expenditure limitations recently placed on DIR may also negatively impact DIR’s ability to serve customers. Two of DIR’s primary functions are to deliver data center and telecommunications services to customer agencies. The majority of DIR expenditures are based on customer demand for services. It’s possible that customer demand for services could exceed DIR’s appropriation authority for a given fiscal year. If this occurs, DIR must obtain approval from the Legislative Budget Board to exceed appropriated amounts in order to provide services to customers.E. Degree to Which Current Budget Meets Current and Expected Needs DIR’s current budget is generally adequate to meet the current and expected needs of agency operations with the following exceptions: • The requirements associated with adjusting the Data Center Services cost-recovery administrative fee limits DIR’s ability to fully recover the DCS program’s operating costs.EXTERNAL/INTERNAL ASSESSMENT | FISCAL ASPECTS Department of Information Resources28 Agency Strategic Plan for FY 2013–2017
  32. 32. • As cyber security threats continue to evolve, they challenge Texas’ ability to adequately protect critical information technology including personal information entrusted to the state by its citizens. • DIR and the State of Texas must continuously maintain appropriate capabilities to defend Texas citizens and the state’s critical infrastructure. • DIR will need to identify sustainable resources that deliver critical enterprise security operations and services to customers, support the ability of agency and higher education to protect information resources, and enhance statewide cyber security infrastructure and processes.F. Capital and/or Leased Needs DIR continually reviews the information resources and telecommunication needs of its customer base. Any necessary capital and/or leased needs will be reflected in the FY 2014/15 Legislative Appropriations Request and in accordance with Rider 4 (Capital Purchases on Behalf of Other Government Entities) and Rider 7 (Telecommunications Capital Budget Purchases).Texas Department of Information Resources EXTERNAL/INTERNAL ASSESSMENT | FISCAL ASPECTSAgency Strategic Plan for FY 2013–2017 29
  33. 33. EXTERNAL/INTERNAL ASSESSMENT | FISCAL ASPECTS Department of Information Resources30 Agency Strategic Plan for FY 2013–2017

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