# Presentation: 067406

## Small IT Business 2005:

**2004: A Look Ahead**
**Vance Hitch**
**Chief Information Officer**
**U.S. Department of Justice**

**December 3, 2003**

**Vance Hitch**
**Chief Information Officer**
**U.S. Department of Justice**

**Information Technology Small Business Counseling Session**
**June 7, 2005**

**Small IT Business 2005:**
**Challenge and Opportunity**

**Notes:**
9:00 - 9:10 am 		Welcome
David Sutton
Director Office of Small and Disadvantaged Business Utilization

9:10 - 9:40 am		Keynote Speaker
Mr. Vance Hitch
Chief Information Officer

##   Challenges in Federal IT
  Review of the IT Landscape
  DOJ initiatives
  Q&A

-   Review of the IT Landscape
-   DOJ initiatives
-   Q&A

**AGENDA**

**Notes:**
WELCOME!  It is great to see so many small businesses interested in working with the federal government.  We have a great many challenges, and we need your help.

THANK YOU to Dave Sutton, Director of Justice’s Office of Small and Disadvantaged Business Utilization, for putting together session together.

THIS MORNING I will broadly outline some of the challenges and dynamics of the Federal IT landscape from my perspective as an agency CIO.  

I will lay out a foundation upon which my colleagues from the Department of Justice’s major components (ATF, BOP, DEA, FBI, OJP, EOUSA, USMS, Interpol) will build upon later this morning.

## U.S. Government IT Challenges

-   Information sharing
-   IT security & privacy
-   Enterprise architecture
-   Investment & contracts management
-   Common solutions
-   Stakeholder collaboration
**Decision Environment**
-   Tight budgets
-   Lack of in-house expertise
-   Incumbent advantages

**Notes:**
USGovt faces numerous IT challenges in a challenging environment.

Similarly challenging are the obstacles that face small businesses that seek to work with the federal govt to address these challenges.

Many agencies are facing budget cuts, and IT spending is being carefully scrutinized.

Incumbent companies – those who already are doing work in the federal government or who are already on a designated contract vehicle – have distinct advantages.

Forging partnerships with these incumbent companies is often a highly effective way of getting in the door at federal agencies and establishing relationships directly with decision makers.

## IT Investments:  Aspirin or Vitamin?

**Vitamin**

**Aspirin**

**OR**

**Major IT Headaches**

**U.S. Government**

**Notes:**
If you are familiar with the way Silicon Valley venture capitalists view investments, they often categorize the solutions a potential company offers into one of two camps:  vitamin or aspirin.

Vitamin – a “nice to have” that enhances the status quo and improves performance.

Aspirin – addresses an immediate pain or operational gap.

## First, stop the pain

-   Enterprise architecture
-   Basic infrastructure
-   Voice/data network
-   Desktop
-   Common solutions
-   Managed services
-   IT Security

- ASPIRIN

**FOCUS: Modernize the enterprise**

**Notes:**
Federal IT investments are focused on solving our immediate pains, which are many.

There are many excellent small businesses out there which offer helpful solutions.  While many of these are interesting, the majority of USGovt spending and management attention will continue to focus on solving our biggest, most pressing problems.

## IT External Landscape

- Dept Concerns

**IT External Landscape**

**WH/OMB**
- President’s Mgmt
- Agenda

**GAO/OIG**
- Program Audits

**Agency Head**
- Executive Office

**Contractors**
- Skills/Resources

**U.S. Taxpayers**
- Safety & Privacy

**Technology**
- Capabilities

***Global War on Terror***

**USG Agency**

**CIO**

- Clinger-Cohen
- GPRA
- GPEA
- E-Gov

**U.S. Congress**
- Compliance
- Funding

***Modernize & Improve***
***Management***

**Cross Agency**
- Initiatives

**Notes:**
Want to share with you what the IT landscape looks like from a CIO’s perspective.  

These forces have a major impact on IT investment decisions.  At the center of our focus is the U.S. taxpayer, whose resources we use to achieve our mission goals.

Pay special attention to:

Chairman Tom Davis, House Government Reform Committee
Rep. Davis really “gets IT” and his committee is very progressive

Clay Johnson, who leads the President’s Management Agenda
Now that the President won re-election, OMB is using the PMA to drive change and accountability into all agencies
Agencies are paying close attention to the scorecard (learn more at www.results.gov)

## Contract Environment

*DOJ Office of the CIO*

**Contract Environment**

- Time and material
**Performance based**
- Shared-in savings
*	*
*	**Poor contract management has cost the U.S. government billions of taxpayer dollars.*

**Notes:**
While small businesses mostly focus on time and material contracts, large USGovt awards are increasingly using performance based contracts.

Shared-in savings contracts are still very rare but may be the wave of the future for certain types of procurements.

(quote from OMB presentation)
“Since the passage of the Federal Acquisition Streamlining Act of 1994, all Federal Departments and Agencies have initiated procedures to record contractor performance on in‐process contracts and to use past contractor performance information in source selection.  We have learned from the experience of agencies and contractors that recording contractor current performance information periodically during contract performance and discussing the results with contractors is a powerful motivator for contractors to maintain high quality performance or improve inadequate performance before the next reporting cycle.  Current performance assessment is a basic “best practice” for good contract administration, and is one of the most important tools available for ensuring good contractor performance.”

## DOJ Selection Vehicles

*DOJ Office of the CIO*

**DOJ Selection Vehicles**

- Full and open
- GSA Schedule
**Government Wide Acquisition Contract** (GWAC)
- ITSS-3 (DOJ)
- SEWP (NASA)
- CIO-SP2 (NIH)
**Key Decision Criteria**
-  Avoid protests
-  Familiarity with the agency
-  Onus on prime contractor to find the best solution providers
-  Selection efficiency

**Notes:**
Many agencies use GWACs for large procurements.

Take time to get familiar the list of companies on the GWAC contract vehicles.  Many will be very familiar with you as they are well known federal contractors that do extensive business with the federal government.  As you would expect from the size of our budget, the Dept of Justice works with a large number of large contractors at any given time.

SEWP (pronounced soup) is the Scientific and Engineering Workstation Procurement. This name reflects the history of SEWP which was started in 1990 to fulfill IT procurement needs of the NASA science and engineering community. While SEWP continues to emphasize cutting edge and high-end IT, all areas of IT products (from Palm Pilots to Supercomputers) are available on the SEWP contracts. 

## $2B+ annual IT budget
6-8% of entire DOJ budget

- $2B+ annual IT budget
- 6-8% of entire DOJ budget

*DOJ Office of the CIO*

**DOJ IT BUDGET**

-   39 DOJ Components total
-   7 account for 92% of IT budget:
- FBI, DEA, ATF, USMS, BOP, USA, JMD

**Notes:**
Like Fortune 500 companies, many federal agencies spend 5-8% of their annual budget on IT.

(NOTE: This slide has 3 builds and requires 3 clicks to progress to the next slide)

## OCIO PROJECTS 
JUTNet (enterprise network)
JCON-II (enterprise platform, further rollout)
JCON-S (classified network)
JEDIS (PKI - private key infrastructure)
JABS (automated booking stations)
IWN (wireless network, DOJ/DHS partnership)
OMB A-76 (competition for IT operations services)

**JUTNet** (enterprise network)
**JCON-II** (enterprise platform, further rollout)
**JCON-S** (classified network)
**JEDIS **(PKI - private key infrastructure)
**JABS **(automated booking stations)
**IWN** (wireless network, DOJ/DHS partnership)
**OMB A-76** (competition for IT operations services)

**MAJOR DOJ IT INITIATIVES**

**DOJ COMMON SOLUTIONS**
**  ****LEISP** (Law Enforcement Info Sharing Program)
-  Will drive ~45% of DOJ investment proposals
-  R-DEx and N-DEx solutions enable information sharing
**  ****UFMS** (financial management)
**  ****CM** (case management)
**  ****OCDETF Fusion Center **(DEA intel fusion center)
**  ****Bomb Database **(consolidate FBI/ATF bomb DBs)
**  ****FISA **(facilitate FBI/OIPR process)
**  ****HSPD-12 **(uniform ID for federal workers/contractors)

**STRATEGIC COMPONENT INITIATIVES**
**  ****Trilogy** (FBI IT modernization: network/desktop/case file)
-   **Next Generation IAFIS **(upgrade FBI fingerprint DB)
**  ****DEA Concorde **(IT modernization program)

## DOJ IT Investments

*DOJ Office of the CIO*

**DOJ IT Investments**

**Upcoming RFPs** (Request for Proposal)
- Unified Financial Management System (UFMS)
- Debt collection
- FBI Sentinel *case management*
- Litigation Case Management System (LCMS)
**Major DOJ Investments **(*RFPs already released*)
- Integrated Wireless Network (IWN) *DOJ/DHS partnership*
- Justice Consolidated Network (JCON) *enterprise voice/data network*
- Justice Unified Telecom Network (JUTNet) *enterprise voice/data network*
- JEDIS *private key infrastructure*
- Justice Automated Booking Stations (JABS) *automated booking stations*

## The Road Ahead

**The Road Ahead**

***Many challenges...***

***... ******and many opportunities.***

**Notes:**
The IT problems the federal government is working to solve are LARGE and COMPLICATED.

Navigating the Federal IT procurement landscape can also be very complicated.  We are hoping that today’s session gives you a better understanding of our priorities and how best to focus on them.

It is an incredibly exciting time to be working on these IT challenges.  While the problems we need to solve are big, our opportunity to make a lasting impact using information technology is tremendous.

I encourage you not to get discouraged but to work hard and be opportunistic in forging partnerships that will allow you participate in this work.  Partnerships are key.

The federal government can not tackles these challenges alone, and we look forward to your participation.

## Q&A