CPIC Process 101


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  • Develop Mission Needs Statement Develop Concept (performance measures and selection criteria) Develop minimal 300-1 (budget estimates and cost benefit analysis) Submit for approval (Bureau and DOI Investment Review Boards)
  • CPIC Process 101

    1. 1. Capital Planning and Investment Control Course 1.01 Presented to the DOI CPIC Advance January 25, 2005 Judy Snoich and Cyndy Anderson IT Investment Management (ITIM)
    2. 2. Legislative Direction <ul><li>Chief Financial Officer Act of 1990 </li></ul><ul><li>Government Performance and Results Act of 1993 </li></ul><ul><li>Federal Acquisition Streamlining Act of 1994 </li></ul><ul><li>Paperwork Reduction Act of 1995 </li></ul><ul><li>Clinger-Cohen Act of 1996 </li></ul><ul><li>Government Paperwork Elimination Act of 1998 </li></ul><ul><li>Federal Information Security Management Act </li></ul><ul><li>E-Gov Act of 2002 </li></ul><ul><li>“ The Head of each executive agency shall design and implement in the executive agency a process for maximizing the value and assessing and managing the risk of the information technology acquisitions of the executive agency.” </li></ul><ul><li> Clinger-Cohen Act </li></ul>
    3. 3. Circulars, Manual Chapters, Maturity Models <ul><li>OMB A-11 – Provide a full and accurate accounting of Major and Non-major IT investments </li></ul><ul><ul><li>Section 53 </li></ul></ul><ul><ul><li>Section 300 </li></ul></ul><ul><li>OMB A-130 – Use Capital Planning and Investment Control process </li></ul><ul><li>GAO IT Investment Management Framework </li></ul><ul><li>Departmental Manuals </li></ul><ul><ul><li>375 DM 6, Information Resources Life Cycle Management, 1989 </li></ul></ul><ul><ul><li>375 DM 7, Benefit/Cost Analysis in Support of IRM Decision making, 1993 </li></ul></ul><ul><ul><li>376 DM 4, Information Technology Investments, 1996 </li></ul></ul><ul><li>DOI Capital Planning and Investment Control Guide, January 2005 </li></ul>
    4. 4. Major IT Investments : (meet at least one of the following criteria) <ul><li>Any investment previously reported to OMB </li></ul><ul><li>$5M annual cost or > $35M lifecycle cost </li></ul><ul><li>Importance to the mission or its significant role in administration of programs, finances, property, or other resources </li></ul><ul><li>Is an integral part of the Department’s modernization blueprint (EA) </li></ul><ul><li>Mandated by legislation or executive order, or identified by the Secretary as critical </li></ul><ul><li>All financial systems with an annual cost greater than $500,000. </li></ul><ul><li>High risk as determined by OMB, GAO, Congress and or the CIO. </li></ul><ul><li>Directly Supports the President’s Management Agenda Items of “high executive visibility” </li></ul><ul><li>E-Government, Departmental, cross-cutting (across more than one office or Bureau) </li></ul><ul><li>Links to the first two layers of the FEA. (This is meant to imply the first two layers of the BRM: Services to Citizens and Mode of Delivery </li></ul>
    5. 5. Key Decision Makers <ul><li>DOI CIO </li></ul><ul><ul><li>Secretary’s delegated agent for IT investments </li></ul></ul><ul><li>DOI Investment Review Board </li></ul><ul><ul><li>Manage DOI portfolio (select, control, evaluate) </li></ul></ul><ul><ul><li>Select decision criteria and make technical decisions </li></ul></ul><ul><ul><li>Approve, disapprove, or defer judgment </li></ul></ul><ul><li>Bureau Investment Review Boards </li></ul><ul><ul><li>Manage Bureau portfolio (select, control, evaluate) </li></ul></ul><ul><ul><li>Manage project management deficiencies </li></ul></ul><ul><ul><li>Approve, disapprove final investment decisions </li></ul></ul>
    6. 6. GAO IT Investment Management Stages Stage 1 Creating an Investment Awareness Stage 4 Improving the Investment Process Stage 5 Leveraging IT for Strategic Outcomes Stage 3 Developing a Complete Investment Portfolio Stage 2 Building the Investment Foundation
    7. 7. DOI CPIC Guide V2.0 (IT and Construction)
    8. 8. CPIC Process Entry/Exit Criteria Entry Criteria: Concept   Exit Criteria: Mission Needs Statement, Concept, Exhibit 300-1 Entry Criteria: Exit Criteria: IRB Approved MNS Charter 300-1 Full Exhibit 300 Project Plan Entry Criteria: IRB Approved 300 IRB Approved Project Plan Supporting Project Documents   Exit Criteria: Updated 300 Updated Project Plan Control Documents Quarterly Reports PIR Schedule Entry Criteria: Implementation complete DOI IRB approval   Exit Criteria: Updated 300 Completed PIR O&M Review Schedule Entry Criteria: DOI IRB approval to enter Steady State   Exit Criteria: Updated 300 Yearly Operational Analysis
    9. 9. DOI CPIC Guide V2.0 (IT and Construction)
    10. 10. DOI CPIC Guide – Pre Select
    11. 11. Pre-Select Actions <ul><li>CPIC Guide: </li></ul><ul><ul><li>Policy and procedures for submitting and approving new investments </li></ul></ul><ul><li>GAO ITIM Stage 2, Critical Process 3: Selecting an Investment </li></ul><ul><ul><li>CP3-C1: The organization has documented policies and procedures for selecting new IT proposals. </li></ul></ul><ul><ul><li>CP3-C3: The organization has documented policies and procedures for integrating funding with the process of selecting an investment. </li></ul></ul>
    12. 12. DOI CPIC Guide V2.0 (IT and Construction)
    13. 13. DOI CPIC Guide – Select
    14. 14. Select Actions <ul><li>CPIC Guide: </li></ul><ul><ul><li>Policy and procedures for selecting investments using Rating and Ranking Criteria </li></ul></ul><ul><ul><ul><li>DOI: Value, IEA alignment, Risk, Quality of documents, Project Health </li></ul></ul></ul><ul><ul><ul><li>USGS: unique Rating & Ranking Criteria </li></ul></ul></ul><ul><ul><li>Policy and procedures to review investment documents: charter, full 300, acquisition plan, risk management plan, performance measures, and project plan. </li></ul></ul>
    15. 15. Select Actions (continued) <ul><li>GAO ITIM Stage 2, Critical Process 3: Selecting an Investment </li></ul><ul><ul><li>CP3-C2: Documented policies and procedures for re-selecting new IT proposals. </li></ul></ul><ul><ul><li>CP3-P2-3: Established criteria for analyzing/prioritizing/ selecting and re-selecting IT investments opportunities </li></ul></ul><ul><ul><li>CP3-P4: A mechanism exists to ensure that the criteria continue to reflect organizational objectives. </li></ul></ul><ul><ul><li>CP3-A1-2: The organization uses its defined selection/re-selection process, including predefined selection criteria. </li></ul></ul><ul><ul><li>CP3-A3: Executives’ funding decisions are aligned with selection decisions. </li></ul></ul>
    16. 16. DOI CPIC Guide V2.0 (IT and Construction)
    17. 17. DOI CPIC Guide – Control
    18. 18. Control Actions <ul><li>CPIC Guide: </li></ul><ul><ul><li>Policy and procedures to review investment control documents and recommend appropriate action </li></ul></ul><ul><ul><ul><li>Monthly monitoring of Project Costs, Schedule, Benefits, Risks and Technical Baselines </li></ul></ul></ul><ul><ul><ul><li>Quarterly reporting to IRB for Control Review decisions </li></ul></ul></ul><ul><li>GAO ITIM Stage 2, Critical Process 1: Instituting the Investment Board </li></ul><ul><ul><li>CP1-A3: Established management controls for ensuring that the investment boards’ decisions are carried out. </li></ul></ul><ul><li>GAO ITIM Stage 2, Critical Process 2: Meeting Business Needs </li></ul><ul><ul><li>CP2-A3: Users participate in project management throughout an IT Investment’s life cycle. </li></ul></ul>
    19. 19. Control Actions (continued) <ul><li>GAO ITIM Stage 2, Critical Process 4: Investment Oversight </li></ul><ul><ul><li>CP4-C1: Documented policies and procedures for management oversight. </li></ul></ul><ul><ul><li>CP4-P2: Investments maintain approved project management plans. </li></ul></ul><ul><ul><li>CP4-A2: Verified data is used by the IRB to review investment performance. </li></ul></ul><ul><ul><li>CP4-A3: Actions are taken to correct underperforming IT investments. </li></ul></ul><ul><ul><li>CP4-A4: IRB tracks implementation of corrective actions until completed. </li></ul></ul>
    20. 20. Control Actions (continued) <ul><li>GAO ITIM Stage 2, Critical Process 5: Capturing Investment Information </li></ul><ul><ul><li>CP5-C1: Documented policies and procedures for identifying and collecting information about IT investments. </li></ul></ul><ul><ul><li>CP5-C2: An official is assigned responsibility for ensuring investment information collected is sufficient. </li></ul></ul><ul><ul><li>CP5-P1: Adequate resources, including people, funding, and tools are provided for identifying IT investments and collecting and analyzing investment information. </li></ul></ul><ul><ul><li>CP5-A1: IT investments are identified, and specific information is collected to support decisions about them. </li></ul></ul><ul><ul><li>CP5-A2: Collected IT investment information is easily accessible and understandable to decision makers. </li></ul></ul><ul><ul><li>CP5-A3: Collected IT information is used by investment decision makers to support investment management. </li></ul></ul>
    21. 21. DOI CPIC Guide V2.0 (IT and Construction)
    22. 22. DOI CPIC Guide – Evaluate
    23. 23. Evaluate Actions <ul><li>CPIC Guide: </li></ul><ul><ul><li>Policy and procedures for Post Implementation Reviews (PIRs): </li></ul></ul><ul><ul><ul><li>Impact to Stakeholders </li></ul></ul></ul><ul><ul><ul><li>Ability to deliver quantitative and qualitative IT performance measures </li></ul></ul></ul><ul><ul><ul><li>Ability to meet baseline goals </li></ul></ul></ul><ul><ul><li>Policy and procedures to evaluate the IT Capital Management Investment Management Process </li></ul></ul><ul><ul><li>Policy and procedures to move investments to Steady State </li></ul></ul>
    24. 24. DOI CPIC Guide V2.0 (IT and Construction)
    25. 25. DOI CPIC Guide – Steady State
    26. 26. Steady State Actions <ul><li>CPIC Guide: </li></ul><ul><ul><li>Policy and procedures for conducting yearly Operational Analysis of Steady State investments </li></ul></ul><ul><ul><ul><li>Investment continues to effectively support mission requirements </li></ul></ul></ul><ul><ul><ul><li>Operation and Maintenance costs are within expected range </li></ul></ul></ul>
    27. 27. Questions?