Program Management of SSA's Data Center OMB 300 Program

Disclaimer: Not an official spokesperson for SSA. The views expressed herein by the author do not necessarily reflect the views of SSA. The information provided is of a general, broad, sweeping, large, wide-ranging, wide-reaching and wide-spread nature, and a competent authority with specialized knowledge is the only one who can address the specific circumstances of your situation.

04/09/2023 [email protected] 1

Program Management of the National Computer

Center (NCC)Brian Bissett

Office of Telecommunications and Systems Operations (OTSO)Office of Enterprise IT Services Management

Division of Resources Management and Acquisition (DRMA) April 10, 2013



Objectives of SSA’s OMB 300s

Provide actionable information to SSA executives. Provide Early Intervention for Programs which begin to Underperform.Identify Program Risks, both current and future.Provide Transparency to the Public on the Performance of High Dollar Programs.Identify Alternatives to the Current Program.Rank Program Performance Monthly by the CIO and Program Managers.Produce and Store an Auditable Trail of Program Metrics.



IT Infrastructure at SSA

How Large is the Program - $407.4 M.

http://www.itdashboard.gov/portfolios/agency=016,bureau=00,business_function=139



Types of Investments

DME – Development Modernization and Enhancement; i.e. “making it better.”

Example: SEI – R132 Imaging Architecture.

OM – Operations and Maintenance, i.e. keeping what you have running.

Example: SEI – R820 Telecommunication Support Services.OM must continue during a CR.



Typical Data Center Investments

Configuration ManagementConsolidation & VirtualizationIT FacilitiesMainframe Software & ConfigurationNetwork and TelecommunicationsSecurityStorage (We add 2 Million Records/Week!)



EVM Reporting Requirements

OMB Requires Federal Agencies’ Major IT Initiatives execute within ±10% variance of cost, schedule, and performance goals. Initiatives not within the ±10% tolerance limit must specify corrective actions, including potential initiative termination.OMB Circular A-11, Section 300.5



Not All Variances are Equal

A variance of 10% on:$100,000,000 = $10 Million $100,000 = $10K$10,000 = $1KAll Equal under OMB guidelines and require reporting.Good Rule of Thumb: If the dollar value of the variance does not exceed the annual salary of the program manager, omit from reporting.



Variance

Variance is “the Canary in the Coal Mine.”Variances are tracked for all Program Efforts Two Variances are Important:

Cost Variance (CV)CV = Earned Value (EV) – Actual Cost (AC)+ Underspent; - Overspent

Schedule VarianceSV = Earned Value (EV) – Planned Value (PV)+ Ahead of Schedule; - Behind Schedule



A Single Variance Cannot Predict Program Health

Just because the Cost Variance is positive (program underspent) does not mean the Program is Healthy.

It is possible to underspend but also fail to achieve program milestones and functionality.

Similarly just because the Schedule Variance is positive (ahead of schedule) does not mean the program is healthy.

It may have cost twice as much as planned to stay on schedule!



Continuing Resolutions (CRs)

When Congress cannot agree on a budget we have a Continuing Resolution (CR).A CR is a bridge to fund the government until it can agree on a final budget.A CR provides government agencies funding at the prior year’s budget level until the resolution expires, or a budget is passed.Money can only be spent for “Operations Essential” functions.



EVM and Continuing Resolutions

Continuing Resolutions destroy the ability of EVM to effectively manage programs in several ways:

Most Programs can no longer spend what they planned to spend for two reasons:

Spending must be Operations Essential. If you planned to spend more than last year you can’t.

Program Estimates are No Longer valid.

Programs have Many More Variances.



Continuing Resolutions → KTLO“Keeping the Lights On”

During a CR most agencies go into KTLO mode.DME spending is drastically reduced.OM spending is maintained.Save now - Innovate, and Update later.



Program Data Compilation

A Portfolio Manager creates a report about the Projects in the Program via SQL Queries to various agency Databases.i.e. The Working File.



Working File for Data Center

Contains all SEI, FTE, and CWY expenses for the Program in both DME and OM categories.



VRTP – A “Meaningful” Variance

VRTP = Variance Relative to PROGRAM.

Significant Variance to Program

Insignificant Variance to Program



Notification of Variance

Automated Code Creates this Worksheet.



VarianceCollection

Project Managers fill out an InfoPath form to Report Variances to their Projects.The InfoPath forms are archived in a SharePoint Library for proof of due diligence in the event of an audit by OMB/GAO.

Corrective Actions

Effect on Program

Effect on Task

Explain IT



SharePoint Repository for Program Information

SharePoint Archive contains Information for Audits.



Performance Metrics(Define a Successful Data Center)

Availability is a key Performance Metric for the Data Center Program.Reported to eCPIC.



Program Risks

Risk - a measure of future uncertainties in achieving program performance goals and objectives within defined cost, schedule, and performance constraints.Common Risk Categories:

Security (Threats – Viruses, PII Breaches, etc.) Technology Maturity/Obsolescence Supplier Capability (threat to COE, etc.) Sole Source Providers Exponential Cost Growth (Budgetary) Force Majeure



Risk Management Process

Identify Program Risks Seek Subject Matter Expert (SME) Input

Risk Analysis How likely is this to happen? (Probability) How damaging if it happens? (Impact)

Develop Mitigation Strategies Can include “None” for low probability risks.

Track Risks for Continued Relevance



Typical and Atypical DC Risks

Single Vendor Monopoly (Mainframes).Violations of Privacy Regulations (PII).Spikes in Mainframe MIPS requirements.Delays due to Failure to Timely Award Contracts.Obsolescence.Hardware or Software Failures.



Risk Ranking

Qualitative and Quantitative Factors used to Rank Risks.Qualitative - Impact & Probability AssessmentQuantitative – Score Calculation

Highest Risk – Score = 25Lowest Risk – Score = 1



InfoPath Risk Reporting



Alternatives Analysis

Must Meet OMB Circular A-11 Requirements.Must Include financial and non-financial; qualitative and quantitative benefits.Provide a minimum of Three (3) viable alternatives plus the status quo.Rank order results of status quo vs. all viable alternatives.Utilize a minimum of a Ten (10) year Lifecycle.



Alternatives Analysis

Account for all stages of the alternatives lifecycle:Planning and DevelopmentAcquisition and ImplementationOperations and Maintenance

Account for inflation using Assumptions in OMB Circular A-94 Appendix C. (The Fisher Equation)Account for the Time Value of Money in the Analysis: Nominal Dollars Versus Real Dollars (aka: Current Dollars vs. Constant Dollars)Risk Adjust Lifecycle Costs and Benefits using a 10% risk factor when no risk analysis is available.



IT Dashboard Agency CIO

Agency CIO has final authority on Evaluating the Investment and makes performance available to the Public via the Federal IT Dashboarditdashboard.gov



IT Dashboard Project Summary

The Planned Total Costs of Projects along with:Cost and Schedule Variance



Selected Publications

Automated Data Analysis with Excel Softcover: 442 PagesChapman & Hall (June 2007)ISBN: 1-58488-885-7

Practical Pharmaceutical Laboratory Automation

Hardcover: 464 pages Publisher: CRC Press (May 2003) ISBN: 0849318149



Acknowledgements

Mark Irwin, Division Director OTSO/DRMAChris Goetz, Program Manager, TelecomQuinn Solem, Program Manager, Office AutoMaria White, Team Leader, OMB300 & EVM Cecilia Lorenzo, DC Portfolio Manager FY 12Matt Buchman, DC Portfolio Manager FY 13Anissa Matthews, EVM PMO Staff

Business

Program Management of SSA's Data Center OMB 300 Program