| Information Technology (IT) Budget Development |
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| 2009-2011 IT Budget Instructions |
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The 2009-2011 Agency Budget Instructions contain several requirements regarding agency information technology (IT) project planning and budget development.
For 2009-2011 Budget development:
All agencies will be required to submit a list via the 107BF14 Form of all IT projects (underway or planned for initiation in 09-11) 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 19 -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 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 Enterprise Information Strategy and Policy Division (EISPD). (See pages 34-38 for more detail.)
Page 36 -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 2009-11 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.
By May 1, 2008 - Consumer and Business Services, Employment, Housing and Community Services, and Veterans Affairs. A response with pricing information will be provided back to the agency by June 1, 2008.
By May 1, 2008 - Transportation and Human Services - A response with pricing information will be provided back to the agency by July 15, 2008.
By June 1, 2008: Administrative Services, Corrections, Forestry, Revenue, and State Police. A response with pricing information will be provided back to the agency by July 15, 2008.
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 09-11 and beyond
View the current SDC Rates here: 2008-09 Oregon State Data Center Rates (pdf)
Please review the SDC Quote Process and SDC Service Scoping Template and then contact contact SDC.Quotes@das.state.or.us, at 503-378-6758.
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| Business Case Development |
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For 2009-2011 Budget Development:
Agencies must submit a business case document (in addition to a POP and/or a Form 107BF14 as appropriate) for all major IT initiatives greater than $1,000,000 – regardless of funding source and whether the project funding will be met with base budget, POP, or other funds. While business cases are not required for IT proposals under $1,000,000, they are encouraged.
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 2007-2011 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 EISPD, 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 on
- 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 2009-11 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
A list of employees by agency who have received Business Case Development training since May 2007 is also listed here. These employees can be a resource in helping you build your Business Case.
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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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| Frequently Asked Questions - FAQs |
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Go the Frequently Asked Questions Web page for more information.
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| IT Lifecycle Planning |
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For 2009-2011 Budget development:
All agencies be required to submit lifecycle replacement plans to DAS EISPD 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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EISPD 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 2009-2011 please contact:
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