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Information Technology (IT) Budget Development
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| 2013-2015 IT Budget Instructions |
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The 2013-2015 Agency Budget Instructions (.DOC) contain several requirements regarding agency information technology (IT) project planning and budget development.
For 2013-2015 Budget development:
All agencies will be required to submit a list via the Form 107BF14 of all IT projects (underway or planned for initiation in 13-15) that exceed $150,000 in value– regardless of whether the funding is in the base budget or contained in a policy option package (POP).
A POP must be submitted for any IT project, initiative or program that requires new funding, new expenditure limitation, or new positions.
Definitions from Agency Budget Instruction Document:
Page 16 -Information Technology (IT) Projects are expenditures for network and computer information systems (hardware, software and/or services, etc.) other than routine maintenance. IT projects have a definite beginning and end date and are aimed at solving specific business problems, or improving the way that the organization achieves its mission. While this is not an expenditure category, agencies must complete the Form 107BF14 for all IT projects that exceed $150,000 and develop a business case document for all major IT projects as part of the Information Resources Management (IRM) planning information agencies submit to DAS Chief Information Office (CIO). (See pages 32-34 for more detail.)
Page 33 -The Estimated Cost Summary on Form 107BF14 must include the total cost estimate for hardware, software, contract services, internal staff, capital costs, and indirect and overhead costs for 2013-15 regardless of whether the agency intends to fund the project through its base budget or a policy package.
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| State Data Center Customers - IT Project Planning and Budget Development |
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State Data Center (SDC) customer agencies must request SDC involvement in the planning and budget development for Information Technology projects.
Early submittal SDC customer agencies, including Consumer and Business Services, Employment, Housing and Community Services, and Veterans Affairs, as well as the Department of Human Services, Oregon Health Authority, and Transportation must request SDC involvement in the planning and budget development for IT projects by April 30, 2012.
The Department of Administrative Services, Corrections, Forestry, Revenue, and State Police must request SDC involvement in budget development for IT projects by May 31, 2012.
The process is designed to:
- Improve quality of SDC customer agency IT project planning
- Increase accuracy of SDC-related cost estimates
- Ensure SDC infrastructure capacity, budget and resources will be sufficient to meet agency needs in 13-15 and beyond
Please review the SDC Quote Process and SDC Service Scoping Template and then contact SDC.Quotes@das.state.or.us, at 503-378-6758.
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| Business Case Development |
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Agencies are required to develop a business case document for each major IT projects/initiatives that is expected to cost $1,000,000 or more. The business case should clearly describe how the project/initiative:
- Aligns with and supports agency strategic/business plans
- Aligns with and supports the Governor's goals, priorities and initiatives, the 2010-2015 Enterprise Information Resources Management Strategy, and other IT-related statewide plans, initiatives, goals and objectives.
This document should be included in the budget document under Special Reports, and submitted to the Chief Information Office, IT Investment and Planning Section at the same time agencies submit their Agency Request Budgets to BAM.
The business case should also include the following information:
- Subject, Purpose and Scope.
- Projected cash flows across timeline (lifecycle or other).
- Alternatives Analysis (to the extent possible at this point in the project lifecycle).
- Assumptions and Methods that the investment is based upon.
- Costs and Benefits - Financial and Non-financial (to the extent possible at the point in the project).
- Estimated costs must include the total cost estimate for hardware, software, contract services, internal staff, capital costs, and indirect and overhead costs for 2013-15 regardless of whether the agency intends to fund the project through its base budget or a policy package. SDC customer agencies must confirm SDC involvement in creating the cost estimate and separately identify the estimated costs related to SDC provided products and services.
- Critical Success Factors
- Risk Assessment (to the extent possible at this point in the project lifecycle)
Business Case Development Resources (Training, Templates, Guidelines, etc.) can be found here:
Business Case Development Web site
Agencies are required to submit all the information listed above to the Chief Information Office at the same time they submit their Agency Request Budget to BAM.
Key dates for IT-related reporting as listed below:
April 30, 2012 - Last date for the following SDC customer agencies to request SDC involvement in IT project planning and budget development: Consumer and Business Services, Employment, Housing and Community Services, Human Services, Oregon Health Authority, Transportation and Veterans Affairs.
May 31, 2012 - Last date for the following SDC customer agencies to request SDC involvement in IT project planning and budget development: Department of Administrative Services, Corrections, Forestry, Revenue, and State Police.
June 30, 2012 - Last date for special approvals for specific IT-related projects.
August 31, 2012 - Last date to submit 2013-2015 Agency Request Budget document BAM.
September 1, 2012 - Information resource management planning information (i.e. IT project list, lifecycle replacement plan, and business case documents for major IT projects) to Chief Information Office.
For additional information regarding business case development, requirements of IRM planning guidance, or sample lifecycle replacement plans, please contact Darren Wellington, Policy Analyst, at 503-378-2242 or by e-mail at: darren.wellington@state.or.us
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| Information Resource Management Planning |
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Go to the IT Planning web page for additional IRM planning information and guidance.
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| IT Lifecycle Planning |
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For 2013-2015 Budget development:
All agencies be required to submit lifecycle replacement plans to DAS Chief Information Office at the same time they submit their agency request budget document to DAS BAM.
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The Statewide Policy on IT Asset Inventory/Management (DAS IRM 107-004-010), developed and endorsed by the CIO Council in 2004, requires the development and submission of a Lifecycle Replacement Plan.
This is a fundamental IT Asset Management-related practice and is also a foundational step agencies need to go through to develop meaningful IT budget estimates (i.e. Services and Supplies - Data Processing and Expendable Property - and Capital Outlay – Telecommunications, Data Processing Hardware, and Data Processing Software).
Without establishing lifecycles and replacement plans for IT assets, IT budget estimates related to replacement of IT hardware, software, systems, etc. cannot be relied on and/or cannot be defended by documented analysis and conclusions.
Further, ORS 184.473-184.477 portfolio planning requirements and requirements related to the assessment and management of the total life cycle cost of IT assets cannot be fulfilled without adequate lifecycle planning and analysis.
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The Chief Information Office will provide sample Lifecycle Replacement Plans upon request (a series of templates – Large/Medium Agency, Small Agency samples) to assist agencies in complying with this requirement. Go to the IT Lifecycle Replacement Planning website for more information.
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| Presentations |
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January 4, 2008 – Budget Advisory Group
January 8, 2008 – CIO Council Meeting
January 11, 2008 – SDC CIO Advisory Board Meeting
March 6, 2008 - Agency Budget Instruction Kickoff Meeting
April 9, 2008 - SDC Customer Agency Forum
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| Contact for more information |
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For additional information related to IT Budget Development for 2013-2015 please contact:
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