| CNIC Initiative |
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| Frequently Asked Questions |
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April 25, 2005 - Rumors
Rumor 1. In an IRMD meeting, it was announced that the CIO of DHS negotiated for DHS to move first into the state data center. This would conflict with the premise: The final Mainframe architecture will decide which agency moves first into the state data center.
In the preliminary implementation plan developed in September 2004, DHS was identified as the first agency to move to the new data center. However, the final decision regarding the order of consolidation has not been made. That decision will be made during the next stage of the project, detailed design. The decision will be made by the CNIC Steering Committee after review of the stage two (detailed design) work group recommendations.
Rumor 2. We have heard that DAS and ODOT have already distributed layoff notices connected to changes taking place from CNIC. We heard that an IS-5 bumped an AS-2 at DAS.
This rumor is not true. DAS experienced some layoffs a few weeks ago related to downsizing the Systems Development and Consulting section and some bumping occurred. These layoffs had nothing to do with "changes taking place from CNIC." Additionally, ODOT has not distributed any official layoff notices connected to CNIC. What all of the CNIC agencies have done is to meet with and give advance notice to staff whose job functions are 100 percent within scope.
Rumor 3. We have heard that the reason the state is not providing information about human resources is because staffing at the state data center will be outsourced.
Staffing will not be outsourced. Recruitment for positions will take place as outlined in the Letter of Agreement (LOA). The Steering Committee will work with DAS and the data center director* on creation of position descriptions, selection criteria and hiring (in accordance with the LOA). *Interviews for data center director candidates are being conducted the first week of May. The expected "start date" for the director is July 1.
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Q&A on COP Funding
Q1. Everyone is talking about COP funding for the CNIC project. What is it?
COP stands for Certificates of Participation; fundamentally, it is a loan program. Use of COP is a common funding strategy used by governments to fund large projects such as CNIC. It works similarly to a short-term loan a family might need for a remodeling project. The state repays the loan plus interest over a designated timeframe and factors those payments into the ongoing program being developed.
Q2. Why is the state using this strategy to fund CNIC?
Oregon state agencies use this strategy to fund many projects. Because this is an enterprise project involving multiple state agencies and funding streams, initial use of COP funding for CNIC gives the project the cash it needs to proceed without solving every finance and budget issue inherent in a shared service.
Q3. Who pays the COP debt back?
Ultimately, participating state agencies will pay all costs. An Accounting Work Group comprised of some of the state’s top finance experts (and a nationally recognized expert in federal funding issues) is working out all the financial details of CNIC including how agencies will pay for the service. Additionally, CNIC participating agency budget departments are working closely with BAM and LFO on building the budget through the legislative process.
Q4. How can you guarantee agencies won’t end up paying more for IT than they do today?
Governance for the CNIC project is being conducted in a collaborative way with the CNIC participating agencies providing the leadership for the initiative. Service levels and rates will not be decided by DAS. All the CNIC participating agencies sit at the decision-making table. The same is true for the ongoing operations of the state data center. Once the CNIC project is complete and the data center is operational, a governance structure that ensures broad agency participation and accountability will engage. In other words, if agencies pay more for services through the state data center, it will be because they decided to for business reasons (such as obtaining a new or enhanced service or service level). However, the mission of the CNIC project remains the same: reduce costs while maintaining or improving service levels through consolidation of the state’s computing and networking infrastructure.
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