# Presentation: 411747

## 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)***

## 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, January 2005**

## 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**

## Key Decision Makers 

**DOI CIO**
**Secretary’s delegated agent for IT investments**
**DOI Investment Review Board**
**Manage DOI portfolio (select, control, evaluate)**
**Select decision criteria and make technical decisions **
**Approve, disapprove, or defer judgment**
**Bureau Investment Review Boards**
**Manage Bureau portfolio (select, control, evaluate)**
**Manage project management deficiencies**
**Approve, disapprove final investment decisions**

## 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

## DOI CPIC Guide V2.0 (IT and Construction)

## 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 V2.0 (IT and Construction)

## DOI CPIC Guide – Pre Select

**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 V2.0 (IT and Construction)

## DOI CPIC Guide – Select

**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**
**USGS: unique Rating & Ranking Criteria**
**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 V2.0 (IT and Construction)

## DOI CPIC Guide – Control

**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 V2.0 (IT and Construction)

## 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 V2.0 (IT and Construction)

## DOI CPIC Guide – 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?