# Presentation: 768051

**FY 2007 OCIO e-Gov Requirements: IT Investment Management ***October 25, 2006*

## The IT Investment Management Criteria

| Goal 4: IT INVESTMENT MANAGEMENT |  |  |  |
| --- | --- | --- | --- |
| Major Elements: 
All major investments will develop cost and schedule performance baselines (Control Account Plans) that are incorporated into the Enterprise Project Management Information System (ePMIS) by Q2 07.  All major investments are complying with monthly and quarterly performance reporting requirements.  (OCIO Directive 2006-013: Enhance Performance Reporting for Major Information Technology Investments). 
Cost and Schedule performance baselines for all major projects with significant ($1 million or more) development have been independently validated for reasonableness, before beginning development beyond the planning phase.   (OCIO Directive 2005-0014:  Improving IT Project Planning and Execution Independent Validation of Cost, Schedule and Performance Baselines dated September 23, 2005). 
Demonstrate appropriate planning, execution, and management of IT major investments, in accordance with the ANSI/EIA 748-A  Standard for Earned Value Management Systems for projects with significant development, and operations analysis for steady state investments, and has project performance within 10 percent of cost, schedule, and performance goals. (PMA Proud to Be (by 7/1/07) and PMA Scorecard Green standard).
If a major investment's performance is not within 10 percent of cost and schedule performance goals, the Bureau submits and follows actions outlined in a monthly corrective action report, which may include related decisions by the DOI Investment Review Board.  (OMB’s PMA Proud to Be  (by 7/1/07) and  PMA Scorecard Green standard).
All major investments in the evaluate phase have completed the required Post Implementation Reviews (PIR) and all major systems in steady state phase have completed Operational Assessments (OA).  ( PMA Proud to Be  (by 7/1/07) and  PMA Scorecard Green standard.
 Meets and maintains Information Technology Investment Management (ITIM) Stage 2 and demonstrates progress that at least 70% of the key practices for Stage 3 will be completed by the end of fiscal year 2007 as documented in a self-assessment.  (DOI GPRA Strategic Plan Objective).
All project managers of major investments and > 50 % of the project managers of non-major investments are qualified when an investment is in development, modernization, and enhancement (DME), or mixed lifecycle.  (OCIO Directive 2004-019 and OMB M-04-19).
All business cases are acceptable and none are on the OMB "management watch list.")    (PMA Proud to Be  (by 7/1/07) and  PMA Scorecard Green standard). |  |  |  |
| RED (1-3 points) | YELLOW (4-6 points) | GREEN (7-9 points) | BEST PRACTICE (10 points) |
| ● Does not meet two or more of the above major elements.  | ● Meets all of the above major elements except one. | ● Meets all of the above major elements. | ● Meets all of the above major elements and provides substantial support for improvement of DOI’s ITIM. |

## Review of Criteria – Development of Cost and Schedule Performance Baselines/Compliance with Monthly and Quarterly Performance Reporting Requirements

-  Criteria: All major investments will develop cost and schedule** **performance baselines (Control Account Plans) that are incorporated into the Enterprise Project Management Information System (ePMIS) by Q2 07.  All major investments are complying** **with monthly and quarterly performance reporting requirements.  (OCIO Directive 2006-013: Enhance Performance Reporting for Major Information Technology Investments).
- Focus of Measure: Have performance baselines been developed and are projects complying with monthly and performance reporting requirements.
- How Measured:
- Will Brimberry to determine if performance baselines developed (most if not all major investments are already achieving this requirement)
- Compliance with reporting requirements will be determined by reviewing quarterly and monthly reporting results
- In order to meet element, ALL major investments must comply with reporting requirements

## Review of Criteria – Independent Validation of Baselines for Reasonableness

-  Criteria: Cost and Schedule performance baselines for all major projects with significant ($1 million or more) development have been independently validated for reasonableness, before beginning development beyond the planning phase**.**
- Focus of Measure: Have project’s complied with OMB’s directive related to independent assessment of baselines
- How Measured:
- Expectation is that any major project with significant development that is past planning stages has completed validation
- Will look in eCPIC to verify that documentation has been provided related to the independent validation of baselines
- Please post documentation by December 31, 2006
- Documentation should provide:
- Who reviewed (why is reviewer independent) and methodology
- Results

## Review of Criteria – Performance within +/- 10% of Cost and Schedule Performance Goals

-  Criteria: Demonstrate appropriate planning, execution, and management of IT major investments**,** in accordance with the ANSI/EIA 748-A**  **Standard for Earned Value Management Systems for projects with significant development, and operations analysis for steady state investments, and has project performance within 10 percent of cost, schedule, and performance goals. (PMA Proud to Be (by 7/1/07) and PMA Scorecard Green standard).
- Focus of Measure: Project performance against cost and schedule performance goals
- How Measured:
- Will use quarterly Control Report results
- OMB also expects scrutiny to be provided to projects with _positive_ variances

## Review of Criteria – Submission and Monitoring of Corrective Action Plans

-  Criteria: If a major investment's performance is not within 10 percent of cost and schedule performance goals, the Bureau submits and follows actions outlined in a monthly corrective action report, which may include related decisions by the DOI Investment Review Board.  (OMB’s PMA Proud to Be  (by 7/1/07) and  PMA Scorecard Green standard).
- Focus of Measure: Development and implementation of corrective action plans for projects with performance issues
- How Measured:
- If project has variances exceeding +/- 10%, project must submit corrective action plan within 30 days. If no corrective action plan is on file, criteria will not be met.
- If project has variances exceeding +/- 10%, status updates must be provided on a monthly basis. Compliance with requirement will be reviewed as part of monthly reporting process.

## Review of Criteria – Completion of Operational Assessments and PIRs

-  Criteria: All major investments in the evaluate phase have completed the required Post Implementation Reviews (PIR) and all major systems in steady state phase have completed Operational Assessments (OA).
- Focus of Measure: PIR and OA completion for major projects
- How Measured:
- Operational Analysis calendar being developed. Calendar will be distributed to CPIC coordinators after completion. Operational Analysis should be posted in eCPIC within one-year of last OA completion.
- For those projects with “expired” OA’s, PMD will review resource library to determine if revised OA completed.
- PIRs should be completed within six to nine months after “Go-Live.” PMD will review resource library to determine if PIR completed.

## Review of Criteria – Progress in Achieving Stage 3 Maturity

-  Criteria:  Meets and maintains Information Technology Investment Management (ITIM) Stage 2 and demonstrates progress that at least 70% of the key practices for Stage 3 will be completed by the end of fiscal year 2007 as documented in a self-assessment**.  **(DOI GPRA Strategic Plan Objective).
- Focus of Measure: Progress in Achieving Stage 3 Maturity
- How Measured:
- Review of Bureau self-assessment results. Bureaus do not receive credit until 70% of practices implemented.
- For FY 2007/FY 2008, Bureaus will not receive credit for implementing 100% of requirements until there has been validation.

## Review of Criteria – Project Manager Validation

-  Criteria:  All project managers of major investments and > 50 % of the project managers of non-major investments are qualified when an investment is in development, modernization, and enhancement (DME), or mixed lifecycle**.**  (OCIO Directive 2004-019 and OMB M-04-19).
- Focus of Measure: Project management qualifications for development investments
- How Measured:
- Criteria applies to those projects with $1M or more in development (as reported on Exhibit 53).
- Step One: Exhibit 300 response reviewed
- If project does not indicate manager is qualified, any response other then a “1”, criteria is not achieved
- Step Two: If project indicated manager is qualified, a “1”, PMD goes to PMP web site to verify PMP certification

## Review of Criteria – Acceptable Business Cases

-  Criteria: All business cases are acceptable and none are on the OMB "management watch list.")
- Focus of Measure: Acceptable business cases and project management
- How Measured:
- OMB determined