Guidance on the Preparation of the FY 2010 IT Infrastructure Budget Submission
This guidance is organized in five sections:
1. Overview of the FY 2010 Infrastructure Budget Documentation Requirements
2. Understanding the Infrastructure Funding Reporting Requirements
3. Understanding the Infrastructure Improvement Reporting Requirements
4. Understanding the Operational Analysis Reporting Requirements
5. Understanding OMB Infrastructure Optimization Initiative Reporting Requirements
Section 1. Overview of the FY 2010 Infrastructure Budget Documentation Requirements
1) FY 2010 Infrastructure Funding in eCPIC
As result of the OMB Information Technology Infrastructure Line of Business (ITI LOB) and the changes to the Exhibit 300, Capital Asset Plan and Business Case Summary, the focus for the FY 2010 submission will be showing how Commerce’s infrastructure activities support the ITI LOB. In eCPIC, the sections required for completion of the individual operating unit Exhibit 300 will be used to complete and substantiate the DOC IT Infrastructure Exhibit 300. The operating unit Infrastructure Exhibit 300 is for internal use and will not be submitted to OMB. Please remember that your operating unit Exhibit 300 should include the funds for all of your IT infrastructure investments. If you have a separate Exhibit 300 for a major IT budget initiative for infrastructure, please contact Stuart Simon (email@example.com), (202) 482-0275 for specific guidance to avoid double counting.
A more detailed discussion about the funding information detail is provided in section 2, “Understanding the Infrastructure Funding Reporting Requirements,” of this guidance.
2) Infrastructure Improvement Report
The purpose of this report is to provide the Department with a mechanism to accurately portray the operating unit’s efforts to improve the management of their infrastructure (e.g., resource sharing, consolidation, redundancy elimination, resource leveraging) when we update the consolidated Infrastructure Exhibit 300. We need to know about investments/accomplishments/improvement efforts that have occurred or are underway since the last budget submission so that we can make our case that the Department is managing its infrastructure well.
A more detailed discussion about the Infrastructure Improvement Report is provided in section 3, “Understanding the Infrastructure Improvement Reporting Requirements,” of this guidance.
3) Operational Analysis Report(s)
The annual Operational Analysis Report(s) is due on February 16, 2009, and should be part of your annual submission for major systems. Operational analysis is a method of examining the current performance of an operational (or steady-state) investment and measuring that performance against an established set of cost, schedule, and performance parameters. An operational analysis is, by nature, less structured than performance reporting methods applied to developmental projects (such as Earned Value Management Analysis). It is more creative in nature, and should trigger considerations of how the objectives could be better met, how costs could be saved, and whether, in fact, the organization should even be performing a particular function. These reports should follow the Department’s guidance that can be found at http://ocio.os.doc.gov/ITPolicyandPrograms/Capital_Planning/dev01_003715
A more detailed discussion about the Operational Analysis Report(s) is provided in section 5, “Understanding the Operational Analysis Reporting Requirements,” of this guidance.
Section 2. Understanding the Infrastructure Funding Reporting Requirements
Since the FY 2005 Budget submission, all federal agencies have submitted one Exhibit 300 to OMB that cover the entire agency’s information technology infrastructure, office automation and telecommunications (hereafter called infrastructure). The Department’s CIO established the Consolidated Infrastructure Team (CIT) as a strategic response to the new requirement. The CIT was charged with improving the management of IT infrastructure on a Department-wide basis. The CIT successfully prepared the consolidated IT infrastructure Exhibit 300 and developed a principle-based, IT Infrastructure Management Framework that was aligned with the Department’s Enterprise Architecture and provided the context for better management of our IT infrastructure. Infrastructure was categorized in clusters and subclusters.
OMB requires that the funding be reported to OMB via the Exhibit 300 in the three phases of the investment (see Exhibit 300 guidance for definitions):
• Acquisition, and
The sum of planning and acquisition equates to what the Exhibit 53 calls Development, Modernization, and Enhancement (DME), while Maintenance equates to what the Exhibit 53 IT Investment Portfolio, calls Steady State (SS).
Previous DOC Clusters (From FY2009 submission)
1. Desktops (Seat Management )
2. IT Help Desks
3. Telecommunications (Voice Networks)
4. Telecommunications (Data Networks)
5. Data Centers (includes mainframes and servers)
As a result of the OMB ITILOB, DOC has adjusted its cluster and subclusters to more closely align with what OMB is requesting. A new cluster “Servers” will be added. The data needed to populate the new “Servers” cluster currently resides in the “Data Centers” cluster. To reduce the update burden on the operating units, DOC will rename the current Data Center cluster in eCPIC to “Servers” and will add a new “Data Center” cluster. Operating Units (OU) that currently have data center costs will need to move them out of “Servers” and into “Data Center.” This change is required for all years starting in 2008 through the out years.
Revised DOC Clusters (For FY2010 submission)
1. Desktops (Seat Management )
2. IT Help Desks
3. Telecommunications (Voice Networks)
4. Telecommunications (Data Networks)
6. Data Centers (includes mainframes)
The DOC subclusters are unchanged:
c. Contract Services
d. Government FTE Costs
e. IT Security
What level of detail do you report for the budget year?
For the budget year (FY 2010), please provide funding detail by the six clusters, 7 sub-clusters, and the three phases (i.e., planning, acquisition, and maintenance).
OMB has directed that we report our funding source information by Budget Accounts and within the accounts, funds for planning, acquisition, and maintenance phases. .
Remember that your actuals for FY 2007 and FY 2008 should be recorded. The FY 2008 actuals will be used to perform the Earned Value Management calculations. FY 2009 should also be updated if there are changes.
It is important to note that according to OMB Circular A-11 guidance, only planning and acquisition dollars (DME) are to be used in the Earned Value Management calculations. We are still required to report the maintenance (steady state) funds, but those funds will not be included in the Earned Value Management calculations. It is important then, that special attention is given to your FY 2008 DME actuals.
What Will OMB See?
OMB will be provided with the phase totals (i.e., planning, acquisition and maintenance) for Infrastructure via the Exhibit 53. The consolidated Exhibit 300 will show both the phase totals and cluster totals aggregated at the Department level. We will collect the more detailed costs for internal use. That information may be discussed in the Exhibit 300, but unless requested by OMB, the detailed information for each operating unit will remain in-house.
What is required to be completed in the eCPIC system?
Each operating unit will prepare an Infrastructure Exhibit 300 in eCPIC. This will not be submitted to OMB but will be used to substantiate and generate the DOC Consolidated Infrastructure 300. The specific sections to complete are:
• Part I, Section A (Overview, including DOC Supplemental)
• Part I, Section B (Summary of Spending)
• Part I, Section C (Acquisition/Contract Strategy)
• Part I, Section D (Performance Information, Table 2) – Use the DOC 300 as a reference.
• Part I, Section E (Security and Privacy)
• Part I, Section F, (Enterprise Architecture) --Use the DOC Exhibit 300 as a reference.
• Part II –complete ONLY if your operating unit has funding identified as Planning or Acquisition.
• Part III, Section A (Risk Management)
• Part III, Section B (Cost and Schedule) -- Use the DOC Exhibit 300 as a reference
Once all of the operating unit submissions are completed, we will update the appropriate eCPIC sections in the Consolidated Infrastructure Exhibit 300.
It is very important that significant changes are avoided after August 13. The roll-up of the financial and narrative information takes quite a bit of time, as it is both an automated and manual process.
If you have questions about eCPIC, please contact the eCPIC help desk at (firstname.lastname@example.org, 202-482-0277) or Stuart Simon (Ssimon@doc.gov, 202-482-0275).
Section 3. Understanding the Infrastructure Improvement Report
The purpose of this report is to provide the Department with a mechanism to accurately portray the operating unit’s efforts to improve the management of its infrastructure (e.g., resource sharing, consolidation, redundancy elimination, and resource leveraging) when we update the consolidated Infrastructure Exhibit 300. We need to know about investments/accomplishments/improvement efforts that have occurred since the last budget submission so that we can make our case that the Department is managing its infrastructure well.
OMB, through the ITI LOB, is expecting the agencies to make a case for continued infrastructure funding by showing agency activities that are consistent with the goals of the ITI LOB.
Many significant infrastructure improvements do not require acquisition money. For instance, you may be consolidating your servers and co-locating them. The activity will have costs, but they are coming out of “hide” (maintenance) and savings will be put to better use. Furthermore, if the effort does not meet the requirements for a major system, an Exhibit 300 is not required. These efforts are “under the radar.” However, we need to make sure we are taking credit for these kinds of infrastructure improvements.
In a few cases, Exhibit 300s for an infrastructure investment do exist, perhaps as a requirement for obtaining a Delegation of Procurement Authority, or other Department-level review and approval. If this is the case, please update the Exhibit 300(s) and identify the Exhibit 300(s) in the Infrastructure Improvement Report. Be sure to include the FY 2008 highlights for these Exhibit 300(s) in the body of the Infrastructure Improvement Report.
There is no prescribed format for this report, nor any set length. We want to capture the most important accomplishments with respect to infrastructure improvement that occurred or are underway in FY 2008. Where benefits can be quantified, please do so. For each of your FY 2008 highlights, please provide point of contact information in case we need to ask questions. Here are extracts from a previous submission so that you can see the level of effort that we are looking for.
“For instance, nine (9) of our operating units (TA, ESA, ITA, OS, MBDA, EDA, BIS, NTIA and NOAA) housed within the HCHB building at 14th & Constitution Avenue, have united to eliminate redundant networks and support for the many networks in an effort spearheaded by the Department's CIO and Deputy CIO/Office of the Secretary CIO that is referred to as the HCHB network. Full migration to the HCHB Network has the potential to reduce costs and create greater efficiencies throughout the Department in resource management and information sharing. Consolidation, integration and centralization of non-core resources into a shared services model is widely considered to be the most efficient means of delivering support services, including IT, though out large organizations in the private sector. Consolidation and centralization reduce redundancies in physical infrastructure investments and enable senior management to more easily identify opportunities to develop or deploy common applications and business processes, promoting efficiency and productivity. Just as importantly, resources and information can be shared with other governmental entities and with other partners and stakeholders, which may lead to efficiency gains (benefits) outside of the Department of Commerce. The reduction in physical infrastructure will allow individual operating units to reprogram funds previously obligated to support the individual networks to other mission-related programs. As business needs and mission requirements for expanded electronic services and information sharing increase in future years, Commerce will be confronted with a very significant capability gap with its own cost implications in the form of retention, hiring, and training if it remains with the status quo of several operating units each attempting to run their own networks. Redeploying scarce human capital to the most strategic roles while turning to the private sector for day-to-day network services in one consolidated solution addresses this situation.”
If you have questions about these reports, please contact Stuart Simon (Ssimon@doc.gov, 202-482-0275).
Section 4. Understanding OMB Information Technology Infrastructure Optimization Plan Update Requirements
OMB’s IT Infrastructure Line of Business (ITI LOB) is an effort by OMB to reduce IT infrastructure costs Government-wide. Data will be gathered from the agencies and compared to industry standards to identify areas where agencies can improve their infrastructure performance. The scope of the ITI LOB includes End User Systems and Support (EUSS), Telecommunications Systems and Support (TSS), and Mainframe and Servers Services and Support (MSSS).
In support of this effort, three data calls have been issued by OMB during FY2008 requesting information on helpdesk/desktop (EUSS), mainframes/servers (MSSS), telecommunications (TSS) and an IT Optimization Plan. The IT Optimization Plan is what is being requested to be updated.
The IT Optimization Plan identifies cost and service level performance targets for all three areas of IT infrastructure and to collect and report annual performance data. When the IT Optimization Plan was initially submitted, only EUSS information was available. OMB is requesting that the TSS and MSSS information be incorporated into the Plan.
Each operating unit is requested to update their respective IT Optimization Plan with the telecommunications and mainframe/servers service level performance targets. If you have questions about this report, please contact Stuart Simon (Ssimon@doc.gov, 202-482-0275).
Section 5. Understanding the Operational Analysis Reporting Requirements
How you conduct and report the results of an operational analysis will be influenced by your governance processes and procedures, as well as your current performance monitoring systems. There is no prescribed format for an operational analysis. However, the Department does provide guidance as to its content at
There is not a prescribed number of operational analysis reports. An operational analysis report might be scoped to just one investment, several investments, services, cluster level or even by technologies (e.g., storage devices). It’s important that the operational analysis scope makes sense in your environment.
The operational analysis report(s) should cover a great deal of your maintenance (steady state) funding, as the majority of the Infrastructure funding is earmarked as maintenance (steady state)—90% at the Department level. So that the Department can report the percentage of FY 2008 actual infrastructure maintenance funds covered by operational analysis reports, each report submitted should provide a brief description of its scope and the percentage of your FY 2008 Actual Infrastructure Maintenance dollars that the report covers, as well as your operating unit’s total infrastructure maintenance actuals for FY 2008. As an example, if the scope of the operational analysis covered several investments, that when totaled equaled $500,000 of FY 2008 actual infrastructure maintenance dollars, and your operating unit FY 2007 actual total for infrastructure maintenance was $2,000,000, then you would simply state in the operational analysis report that the report covered 25% of your $2,000,000 infrastructure maintenance actuals for FY 2008. In the event that an operating unit submits more than one operational analysis report, we would simply add the percentages together (making sure that the operating unit FY 2008 actual infrastructure maintenance totals were the same) to yield the grand percentage of the operating unit’s infrastructure maintenance funds covered for FY 2008. The total of the percentages would not exceed 100% and would not necessarily add up to 100%. It is our expectation that over time we will increase the amount of funds that are covered by operational analyses.
The IT infrastructure operational analysis report(s) are due annually on February 16, and focus on the investment’s operational state as of December 31, 2008. This report should be submitted to Jerry Harper (JHarper@doc.gov, 202-482-2022) with a cc to Stuart Simon (Ssimon@doc.gov, 202-482-0275).
- Questions regarding this section may be directed to the IT Capital Planning & Investment Control Administrator