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Capital Planning and Investment Control
Course 1.01
Presented to the DOI IRBFebruary 16th, 2005
Cyndy Anderson, PMPActing Chief Portfolio Management Division
IT Investment Management (ITIM)
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What Is CPIC?
What it is notAn exercise in paperworkSomething we do to check off a box on a
scorecardA four letter word
What it isA systematic way of selecting the right mix of
investments to meet goals and then managing those investments to ensure success.
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Change to a caterpillar is death…
But to its maker, is a new life.
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Legislative Direction
Chief Financial Officer Act of 1990 Government Performance and
Results Act of 1993 Federal Acquisition Streamlining
Act of 1994 Paperwork Reduction Act of 1995 Clinger-Cohen Act of 1996 Government Paperwork
Elimination Act of 1998 Federal Information Security
Management Act E-Gov Act of 2002
“The Head of each executive agency shall design and implement in the executive agency a process for maximizing the value and assessing and managing the risk of the information technology acquisitions of the executive agency.”
Clinger-Cohen Act
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Circulars, Manual Chapters, Maturity Models
OMB A-11 – Provide a full and accurate accounting of Major and Non-major IT investments
Section 53 Section 300
OMB A-130 – Use Capital Planning and Investment Control process
GAO IT Investment Management Framework Departmental Manuals
375 DM 6, Information Resources Life Cycle Management, 1989
375 DM 7, Benefit/Cost Analysis in Support of IRM Decision making, 1993
376 DM 4, Information Technology Investments, 1996
DOI Capital Planning and Investment Control Guide, February 2005
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GAO IT Investment Management Stages
Stage 1Creating an Investment Awareness
Stage 4Improving the Investment Process
Stage 5Leveraging IT for Strategic Outcomes
Stage 3Developing a Complete Investment Portfolio
Stage 2Building the Investment Foundation
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Key Decision Makers
DOI CIO Secretary’s delegated agent for IT investments
DOI Investment Review Board Manage DOI portfolio (select, control, evaluate) Define and refine Select decision criteria Make investment decisions such as: Approve,
disapprove, continue as is, modify, or terminate, for Departmental or bureau cross-cutting IT investment proposals or systems.
Define and implement the DOI IT investment governance process
Bureau Investment Review Boards Manage Bureau portfolio (select, control, evaluate) Manage project management deficiencies Approve, disapprove final investment decisions
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IRB Roles and Purpose
Investment Review Board (IRB): The governing and approval body responsible for ensuring that proposed investments meet DOI strategic, business, and technical objectives, and manages the overall IT portfolio. The IRB reviews, recommends decisions, and issues guidance, on the implementation of recommendations contained in Modernization Blueprints for information technology (IT) lines of business.
From the IRB Charter Purpose: The purpose is to establish the Board as the forum for
collaborative governance of E-Government and IT within the Department, bringing together business and IT executives from Interior’s E-Government Team and Information Technology Management Council.
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“ IT is not a separate function – its woven into everything we do.”
Mr. Paul Hoffman at the OCIO Retreat in Shepherdstown, WV, January 2005
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IRB Responsibilities Reviews Bureau IRB decisions and considers
the impact those decisions have to the overall DOI IT portfolio.
To review and approve/disapprove all Departmental or bureau cross-cutting system IT investment proposals greater than $5 Million total life cycle; all sensitive systems, and all multi-bureau/agency systems.
To assure bureaus/offices have an IT investment review process for bureau/office specific IT investments.
To manage the IT portfolio for the Department.
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Responsibilities (cont.) To adopt common approaches throughout the DOI
in responding to E-Government and IT-related issues or requirements.
To influence the development of Departmental budget requirements involving activities fulfilling the requirements of the Clinger-Cohen Act of 1996 (Public Law 104-106).
To assure “best practices” are identified and implemented within the Department.
To review and approve the Department and bureau or office requests for funding that involve data collection in accordance with the requirement to adhere to established standards.
To serve as an arbitrator among members regarding IT investments should the need arise.
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Governance Meeting ScheduleOct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
Identify Gaps and Redundancies
Determine and prioritize E-Gov opportunities
Prepare Pre-Select Business Cases
Prioritize Pre-Select Business Cases
Prepare and Refine Select Bus. Cases
Prioritize Select Business Cases andRecommend to MIT/ MEC
Conduct Quarterly Review of Ongoing Projects
Review Federal E-Gov Initiatives Updates andCoordinate other enterprise- wide efforts
Review IBAT Updates
Review Web Resources Council Updates
E-GovTeam
Project Mgrs
IRBIRB
Project Mgrs
IRBIRB
IRBIRB IRBIRB IRBIRB IRBIRB
E-GovTeamE-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeamE-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
E-GovTeam
Respond to OMB Passback IRBIRB
IRB
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Major IT Investments: (meet at least one of the following criteria) Any investment previously reported to OMB $5M annual cost or > $35M lifecycle cost Importance to the mission or its significant role in administration of
programs, finances, property, or other resources Is an integral part of the Department’s modernization blueprint (EA) Mandated by legislation or executive order, or identified by the
Secretary as critical All financial systems with an annual cost greater than $500,000. High risk as determined by OMB, GAO, Congress and or the CIO. Directly Supports the President’s Management Agenda Items of
“high executive visibility” E-Government, Departmental, cross-cutting (across more than one
office or Bureau) Links to the first two layers of the FEA. (This is meant to imply the
first two layers of the BRM: Services to Citizens and Mode of Delivery
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CPIC Process Entry/Exit Criteria
Entry Criteria:Concept Exit Criteria:Mission Needs Statement,Concept,Exhibit 300-1
Entry Criteria:Concept Exit Criteria:Mission Needs Statement,Concept,Exhibit 300-1
Entry Criteria: Exit Criteria:IRB Approved MNS Charter300-1 Full Exhibit 300
Project Plan
Entry Criteria: Exit Criteria:IRB Approved MNS Charter300-1 Full Exhibit 300
Project Plan Entry Criteria:IRB Approved 300 IRB Approved Project PlanSupporting Project Documents Exit Criteria:Updated 300Updated Project Plan Control DocumentsQuarterly Reports PIR Schedule
Entry Criteria:IRB Approved 300 IRB Approved Project PlanSupporting Project Documents Exit Criteria:Updated 300Updated Project Plan Control DocumentsQuarterly Reports PIR Schedule
Entry Criteria:Implementation completeDOI IRB approval Exit Criteria:Updated 300Completed PIRO&M Review Schedule
Entry Criteria:Implementation completeDOI IRB approval Exit Criteria:Updated 300Completed PIRO&M Review Schedule
Entry Criteria:DOI IRB approval to enter Steady State Exit Criteria:Updated 300Yearly Operational Analysis
Entry Criteria:DOI IRB approval to enter Steady State Exit Criteria:Updated 300Yearly Operational Analysis
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DOI CPIC Guide – Pre SelectPre-Select Phase Process Steps
ProjectSponsor/
Functional Manager/Project
Manager
Depart-mental
IRB
BureauCIO
Office or BureauHead
Office or Bureau
Sponsor
Office or Bureau
IRB
Conduct Mission Analysis
Develop Concept
Prepare300-1 Business
Case
Review300-1 Business
Case
Approve300-1 Business
Case
Review Initiative and Recommend
Appropriate Action
Make Final InvestmentDecisions on the
300-1 Business Case
Mission Needs
Statement
300-1 Business
Case
Make Final InvestmentDecisions on the
300-1 Business Case for recommendation to
the secretary.
Identify a need
Check Modernization
Blueprints
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Pre-Select Actions
CPIC Guide: Policy and procedures for submitting and
approving new investments GAO ITIM Stage 2, Critical Process 3:
Selecting an Investment CP3-C1: The organization has documented
policies and procedures for selecting new IT proposals.
CP3-C3: The organization has documented policies and procedures for integrating funding with the process of selecting an investment.
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DOI CPIC Guide – SelectSelect Phase Process Steps
Depart-mental
IRB
Office or Bureau
IRB
BureauCIO
Office or BureauHead
Office or Bureau
Sponsor
ProjectSponsor/
Functional Manager/Project
Manager
Review Initiative and Recommend
Appropriate Action
Approve Integrated Project Team Membership
Make Final Investment Decisions
Approve Exhibit 300 Business Case and
Project Plan
Develop Exhibit 300 Business
Case Supporting Materials
Review the Mission Needs Statement and
Update, If Needed
Identify Funding Source and Obtain
DOI/Bureau Approvals
Prepare Project Plan
Review Exhibit 300 Business
Case and Project Plan
Make Final Investment
Decisions on the 300-1 Business Case for recommendation
to the secretary.
Create Project Charter
Approve or Reject Project Charter
Review and Recommend or Reject Project
Charter
Review and Recommend or Reject Project
Charter
Review and Recommend or Reject Project
Charter
Prepare Exhibit 300 Business
Case
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Select Actions
CPIC Guide: Policy and procedures for selecting investments
using Rating and Ranking Criteria DOI: Value, IEA alignment, Risk, Quality of documents,
Project Health
Policy and procedures to review investment documents:
Charter, full 300, acquisition plan, risk management plan, performance measures, and project plan.
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Select Actions (continued)
GAO ITIM Stage 2, Critical Process 3: Selecting an Investment CP3-C2: Documented policies and procedures for re-
selecting new IT proposals. CP3-P2-3: Established criteria for analyzing/prioritizing/
selecting and re-selecting IT investments opportunities CP3-P4: A mechanism exists to ensure that the criteria
continue to reflect organizational objectives. CP3-A1-2: The organization uses its defined selection/re-
selection process, including predefined selection criteria. CP3-A3: Executives’ funding decisions are aligned with
selection decisions.
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DOI CPIC Guide – ControlControl Phase Process Steps
Depart-mental
IRB
Office or Bureau
IRB
BureauCIO
Office or BureauHead
Office or Bureau
Sponsor
ProjectSponsor/
FunctionalManager/Project
Manager
Prepare Quarterly/Milestone
Control Review Documents
Evaluate Quarterly/Milestone
Control Review Documents
Maintain Current Project Costs,
Schedule, Technical, and General Status
Information Ensures all
budget documents
remain current and final
decisions are vetted through
PMD.
Establish and Maintain Project Costs, Schedule,
Benefits and Risks, and Technical
Baselines
Review Control Documents and
Recommend Appropriate Action
Make Control Review Decisions
Work with Project Manager to
Implement Decisions
Project Manager Project Sponsor
Quarterly Reports
Assess Project Progress
Against Performance Measures
Make Final control review
recommendations to the secretary.
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Control Actions CPIC Guide:
Policy and procedures to review investment control documents and recommend appropriate action
Monthly monitoring of Project Costs, Schedule, Benefits, Risks and Technical Baselines
Quarterly reporting to IRB for Control Review decisions
GAO ITIM Stage 2, Critical Process 1: Instituting the Investment Board CP1-A3: Established management controls for ensuring
that the investment boards’ decisions are carried out. GAO ITIM Stage 2, Critical Process 2: Meeting
Business Needs CP2-A3: Users participate in project management
throughout an IT Investment’s life cycle.
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Control Actions (continued)
GAO ITIM Stage 2, Critical Process 4: Investment Oversight CP4-C1: Documented policies and procedures for
management oversight. CP4-P2: Investments maintain approved project
management plans. CP4-A2: Verified data is used by the IRB to review
investment performance. CP4-A3: Actions are taken to correct underperforming IT
investments. CP4-A4: IRB tracks implementation of corrective actions
until completed.
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Control Actions (continued)
GAO ITIM Stage 2, Critical Process 5: Capturing Investment Information CP5-C1: Documented policies and procedures for
identifying and collecting information about IT investments. CP5-C2: An official is assigned responsibility for ensuring
investment information collected is sufficient. CP5-P1: Adequate resources, including people, funding,
and tools are provided for identifying IT investments and collecting and analyzing investment information.
CP5-A1: IT investments are identified, and specific information is collected to support decisions about them.
CP5-A2: Collected IT investment information is easily accessible and understandable to decision makers.
CP5-A3: Collected IT information is used by investment decision makers to support investment management.
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DOI CPIC Guide – EvaluateEvaluate Phase Process Steps
Depart-mental
IRB
Office or Bureau
IRB
BureauCIO
Office or BureauHead
Office or Bureau
Sponsor
ProjectSponsor/
Functional Manager/Project
Manager
Make Final Investment Decisions
Update Exhibit 300
Business case
Review Exhibit 300
Business case
Review Investment’s PIR Results and
Recommend Appropriate Action
Conduct PIR and Present Results
PrepareExhibit 300 or 300-1
Business Case
Evaluate IT Capital
Investment Management
Process
Make Final Investment
Decisions on the 300-1 Business Case for recommendation
to the secretary.
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Evaluate Actions CPIC Guide:
Policy and procedures for Post Implementation Reviews (PIRs):
Impact to Stakeholders Ability to deliver quantitative and qualitative IT performance
measures Ability to meet baseline goals
Policy and procedures to evaluate the IT Capital Management Investment Management Process
Policy and procedures to move investments to Steady State
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DOI CPIC Guide – Steady StateSteady-State Phase Process Steps
Depart-mental
IRB
Office or Bureau
IRB
BureauCIO
Office or BureauHead
Office or Bureau
Sponsor
ProjectSponsor/
Functional Manager/Project
Manager
AssessTechnology
AnalyzeMission
Assess User/Customer
Satisfaction
ReviewO&M
Update Exhibit 300 Business
Case
Review/Approve Exhibit 300
Business Case
Review Investment and Recommend
Appropriate Action
Make Final Investment Decisions
Make Final InvestmentDecisions on the
300-1 Business Case for recommendation to
the secretary.
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Steady State Actions
CPIC Guide:Policy and procedures for conducting yearly
Operational Analysis of Steady State investments
Investment continues to effectively support mission requirements
Operation and Maintenance costs are within expected range
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Questions?