# Presentation: 746415

## Capital Planning and Investment ControlCourse 1.01

***Presented to the DOI IRB***
***February 16******th******, 2005***
***Cyndy Anderson, PMP***
***Acting Chief Portfolio Management Division***

***IT Investment Management (ITIM)***

## What Is CPIC?

- What it is not
- An exercise in paperwork
- Something we do to check off a box on a scorecard
- A four letter word
- What it is
- A systematic way of selecting the right mix of investments to meet goals and then managing those investments to ensure success.

## Change to a caterpillar is death...

- But to its maker, is a new life.

## Legislative Direction

- Chief Financial Officer Act of 1990
- Government Performance and Results Act of 1993
- Federal Acquisition Streamlining Act of 1994
- Paperwork Reduction Act of 1995
- Clinger-Cohen Act of 1996
- Government Paperwork Elimination Act of 1998
- Federal Information Security Management Act
- E-Gov Act of 2002

-     “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.”
- 	        Clinger-Cohen Act

## Circulars, Manual Chapters, Maturity Models

- OMB A-11 – Provide a full and accurate accounting of Major and Non-major IT investments
- Section 53
- Section 300
- OMB A-130 – Use Capital Planning and Investment Control process
- GAO IT Investment Management Framework
- Departmental Manuals
- 375 DM 6, Information Resources Life Cycle Management, 1989
- 375 DM 7, Benefit/Cost Analysis in Support of IRM Decision making, 1993
- 376 DM 4, Information Technology Investments, 1996
- DOI Capital Planning and Investment Control Guide, February 2005

## 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

## Key Decision Makers 

- DOI CIO
- Secretary’s delegated agent for IT investments
- DOI Investment Review Board
- Manage DOI portfolio (select, control, evaluate)
- Define and refine Select decision criteria
- Make investment decisions such as: Approve, disapprove, continue as is, modify, or terminate, for  Departmental or bureau cross-cutting IT investment proposals or systems.
- Define and implement the DOI IT investment governance process
- Bureau Investment Review Boards
- Manage Bureau portfolio (select, control, evaluate)
- Manage project management deficiencies
- Approve, disapprove final investment decisions

## IRB Roles and Purpose

**Investment Review Board (IRB):** The governing and approval body responsible for ensuring that proposed investments meet DOI strategic, business, and technical objectives, and manages the overall IT portfolio.  The IRB reviews, recommends decisions, and issues guidance, on the implementation of recommendations contained in Modernization Blueprints for information technology (IT) lines of business.
**From the IRB Charter **
*Purpose:** The purpose is to establish the Board as the forum for collaborative governance of E-Government and IT within the Department, bringing together business and IT executives from Interior’s E-Government Team and Information Technology Management Council.*

## “ IT is not a separate function – its woven into everything we do.” 

Mr. Paul Hoffman at the OCIO Retreat in Shepherdstown, WV, January 2005

*Mr. Paul Hoffman at the OCIO Retreat in Shepherdstown, WV, January 2005*

## IRB Responsibilities

- Reviews Bureau IRB decisions and considers the impact those decisions have to the overall DOI IT portfolio.
- To review and approve/disapprove all Departmental or bureau cross-cutting system IT investment proposals greater than $5 Million total life cycle; all sensitive systems, and all multi-bureau/agency systems.
- To assure bureaus/offices have an IT investment review process for bureau/office specific IT investments.
- To manage the IT portfolio for the Department.

## Responsibilities (cont.)

- To adopt common approaches throughout the DOI in responding to E-Government and IT-related issues or requirements.
- To influence the development of Departmental budget requirements involving activities fulfilling the requirements of the Clinger-Cohen Act of 1996 (Public Law 104-106).
- To assure “best practices” are identified and implemented within the Department.
- To review and approve the Department and bureau or office requests for funding that involve data collection in accordance with the requirement to adhere to established standards.
- To serve as an arbitrator among members regarding IT investments should the need arise.

## Slide 12

## Major IT Investments:  (meet at least one of the following criteria) 

- Any investment previously reported to OMB
- $5M annual cost or > $35M lifecycle cost
- Importance to the mission or its significant role in administration of programs, finances, property, or other resources
- Is an integral part of the Department’s modernization blueprint (EA)
- Mandated by legislation or executive order, or identified by the Secretary as critical
- All financial systems with an annual cost greater than $500,000.
- High risk as determined by OMB, GAO, Congress and or the CIO.
- Directly Supports the President’s Management Agenda Items of “high executive visibility”
- E-Government, Departmental, cross-cutting (across more than one office or Bureau)
- 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

## 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

## DOI CPIC Guide – Pre Select

**Notes:**
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)

## Pre-Select Actions

- CPIC Guide:
- Policy and procedures for submitting and approving new investments
- GAO ITIM Stage 2, Critical Process 3: Selecting an Investment
- CP3-C1:  The organization has documented policies and procedures for selecting new IT proposals.
- CP3-C3:  The organization has documented policies and procedures for integrating funding with the process of selecting an investment.

## DOI CPIC Guide – Select

## Select Actions

- CPIC Guide:
- Policy and procedures for selecting investments using Rating and Ranking Criteria
- DOI:  Value, IEA alignment, Risk, Quality of documents, Project Health
- Policy and procedures to review investment documents:
- Charter, full 300, acquisition plan, risk management plan, performance measures, and project plan.

## Select Actions (continued)

- GAO ITIM Stage 2, Critical Process 3: Selecting an Investment
- CP3-C2:  Documented policies and procedures for re-selecting new IT proposals.
- CP3-P2-3:  Established criteria for analyzing/prioritizing/ selecting and re-selecting IT investments opportunities
- CP3-P4:  A mechanism exists to ensure that the criteria continue to reflect organizational objectives.
- CP3-A1-2:  The organization uses its defined selection/re-selection process, including predefined selection criteria.
- CP3-A3:  Executives’ funding decisions are aligned with selection decisions.

## DOI CPIC Guide – Control

## Control Actions

- CPIC Guide:
- Policy and procedures to review investment control documents and recommend appropriate action
- Monthly monitoring of Project Costs, Schedule, Benefits, Risks and Technical Baselines
- Quarterly reporting to IRB for Control Review decisions
- GAO ITIM Stage 2, Critical Process 1: Instituting the Investment Board
- CP1-A3:  Established management controls for ensuring that the investment boards’ decisions are carried out.
- GAO ITIM Stage 2, Critical Process 2: Meeting Business Needs
- CP2-A3:  Users participate in project management throughout an IT Investment’s life cycle.

## Control Actions (continued)

- GAO ITIM Stage 2, Critical Process 4: Investment Oversight
- CP4-C1:  Documented policies and procedures for management oversight.
- CP4-P2:  Investments maintain approved project management plans.
- CP4-A2:  Verified data is used by the IRB to review investment performance.
- CP4-A3:  Actions are taken to correct underperforming IT investments.
- CP4-A4:  IRB tracks implementation of corrective actions until completed.

## Control Actions (continued)

- GAO ITIM Stage 2, Critical Process 5: Capturing Investment Information
- CP5-C1:  Documented policies and procedures for identifying and collecting information about IT investments.
- CP5-C2:  An official is assigned responsibility for ensuring investment information collected is sufficient.
- CP5-P1:  Adequate resources, including people, funding, and tools are provided for identifying IT investments and collecting and analyzing investment information.
- CP5-A1:  IT investments are identified, and specific information is collected to support decisions about them.
- CP5-A2:  Collected IT investment information is easily accessible and understandable to decision makers.
- CP5-A3:  Collected IT information is used by investment decision makers to support investment management.

## DOI CPIC Guide – Evaluate

**DOI CPIC Guide – Evaluate**

## Evaluate Actions

- CPIC Guide:
- Policy and procedures for Post Implementation Reviews (PIRs):
- Impact to Stakeholders
- Ability to deliver quantitative and qualitative IT performance measures
- Ability to meet baseline goals
- Policy and procedures to evaluate the IT Capital Management Investment Management Process
- Policy and procedures to move investments to Steady State

## DOI CPIC Guide – Steady State

## Steady State Actions

- CPIC Guide:
- Policy and procedures for conducting yearly Operational Analysis of Steady State investments
- Investment continues to effectively support mission requirements
- Operation and Maintenance costs are within expected range

## Questions?

**Questions?**