Secretary of Technology Annual Report to JCOTS

1. Secretary of Technology Annual Report to JCOTS The Honorable Leonard M. Pomata Secretary of Technology December 2nd, 2009

2. Page 2 Agenda VITA Overview CIT Overview Office of Broadband and Telework Overview Health IT Overview Information Security in the Commonwealth Overview Continuity of Operations & Government Overview IT Contingent Labor Overview Productivity Investment Fund Overview VA STAR Program Overview Awards & Recognition Recommendations

3. Page 3 VITA 2009 Accomplishments  New CIO of the Commonwealth hired Priorities are infrastructure modernization program, customer service and cost management No IT project failures 52 Major IT projects worth $759 million 100 Non-major IT projects worth $37.6 million Improved Virginia’s information security posture Policies, procedures for all branches of state government Operational improvements (data centers, Internet connections, etc.) Significant progress modernizing executive branch IT infrastructure 30 agencies complete 71 percent of transformation activities complete RTIP Delivery Annual report of recommended technology projects delivered on Sept 1st.

4. Page 4 VITA 2009 Accomplishments (cont.)  Integrated Virginia Enterprise Applications Program (VEAP) into VITA Awarded financial management and performance budgeting systems contracts Launched Business Intelligence Staffed Health IT Standards Advisory Committee (HITSAC) of the ITIB Supported Virginia’s federal grant application for a statewide Health Information Exchange (HIE) promoting electronic medical records A national leader in enhanced 9-1-1 (E-911) deployment All but one county provide wireline 9-1-1 service All but two counties provide wireless 9-1-1 service Led statewide geographic information system (GIS) program Updated Virginia Base Map for eastern portion of the state Assisted with initial broadband mapping effort, application for grant Earned national awards and recognition on behalf of the Commonwealth Three NASCIO Recognition Awards, Digital Government Achievement Award, Bronze Telly Award 90-day assessment?90-day assessment?

5. Page 5 VITA Next Steps  Complete infrastructure transformation with Northrop Grumman 7/1/10. Improve customer service, while continuing to work on cost reductions. Address JLARC and APA findings and recommendations Continue to strengthen information security policies Complete statewide data standards and implement Develop and carry out strategic plan for enterprise applications Support implementation of Virginia’s Health Information Exchange Complete deployment of E-911 services Manage re-work of IT Strategic Plan for the Commonwealth Develop five-year strategic plan for GIS Complete digital photography of western portion of the state (2011) for Virginia Base Map Support next phase of broadband mapping initiative 90-day assessment?90-day assessment?

6. Page 6 CIT 2009 Goals and Objectives

7. Page 7 CIT 2009 Major Accomplishment Highlights

8. Page 8 CIT 2010 Direction Highlights

9. Page 9 Broadband and Telework Highlights Completed Virginia’s First Broadband Availability Map Created Broadband Advisory Council Participated in Federal Policy Activities (comments, participation in NTIA/FCC discussions) Virginia Entities Submitted 71 Applications in First Round of NTIA/RUS Broadband Funding Solicitation Totaling $691,603,921.00 (outcomes pending) Virginia (Claudville) site of Nation’s FIRST white-space broadband pilot project (Dell, Microsoft, Spectrum Bridge)

10. Page 10 Commonwealth Broadband Availability Map Phase I

11. Page 11 VA Submissions – Dept of Commerce: Broadband Technology Opportunities Program (BTOP) and Dept of Agriculture: Broadband Initiatives Program (BIP)

12. Page 12 Going Forward… Retain Virginia’s reputation for broadband creativity and leadership Create a favorable policy and business climate Monitor and Participate in Federal Initiatives (including mapping) Serve as a resource/clearinghouse for communities undertaking broadband initiatives Provide support to/visibility for emerging projects Unserved Areas Community-led Initiatives Partnerships Creating Collaborative Environments

13. Page 13 Health IT Highlights for 2009 Creation of Health IT Standards Committee (HITSAC) HITSAC will advise the Information Technology Investment Board (ITIB) on the approval of nationally recognized technical and data standards for health information technology systems or software Creation of Health IT Advisory Commission (HITAC) - Exec Order 95 HITAC is a public/ private partnership to provide guidance and oversight for Commonwealth health initiatives. This group will provide strategic direction for Health IT projects in the Commonwealth. It is chaired by the Secretary of Health and Human Resources and the Secretary of Technology. Creation of the Office of Health IT – Exec Order 95 The office of Health IT will reside within the Virginia Department of Health (VDH) and take direction from the Secretary of Health & Human Resources and the Secretary of Technology. The mission of the Office is to use information technology to improve health care quality and efficiency through the authorized and secure electronic exchange and use of health information. Implementation of the Virginia Health Exchange Network (VHEN) VHEN is a multi-payer portal technology that will allow all participants in the Health care process to submit electronic claims for verification. The overall objective is to standardize and streamline administrative transactions to lower costs for all plans and providers from 7% to 5% of total claim costs. Collaboration on the project is between all the public and private stakeholders in Virginia including: 9 health care plans; 8 health systems; Medicaid and Medicare; and in total will cover> 75% of Virginia’s commercially insured citizens. The system will be deployed initially in January of 2010, with participation up to 71% of the total market by March 2010.

14. Page 14 ARRA/Stimulus Importance to the Commonwealth The Commonwealth will receive significant funding and incentives

15. Page 15 Project Spotlight - Health Information Exchange (HIE) Overview The purpose of the HIE program is to continuously improve and expand health information services over time and reach all health care providers in an effort to improve the quality and efficiency. The program will build off existing efforts to advance regional and state level HIEswhile moving towards nationwide interoperability. Grant application sent on October 16th provides funding for a statewide HIE with an option to create the HIE through a state designated entity. If the grant application is approved, COV will be awarded $11.6 million to plan and implement the state HIE with all final state plans will approved by ONC. The grant should be approved in mid-December and the HITAC board has already begun work in anticipation of the award. COV will have 6-8 months to complete a strategic and operational plan for an HIE.

16. Page 16 COV-HIE Conceptual View

17. Page 17 Going Forward Support work of HITAC and formalize office of Health IT through legislation. Prepare to respond to Health Research Center grant application in early 2010. Develop COV-HIE Work Plan & assign resources based on grant funding. HITAC to hold public forums in first half 0f 2010 to gather input on Health IT concerns and develop policy recommendations for new administration. Recommend JCOTS take up Health IT topic for research in next session and be prepared for ongoing work and developments in the area.HHR Nd S Develop legislative research topics for 2010: Legal changes needed in summer of 2011 for HIE rollout in fall of 2011. Ongoing framework to allow for change cycle based on technology changes.

18. Page 18 IT Contingent Labor Process Re-Design Project Goals & Objectives Lead with VITA and DHRM implementation of reduced IT staffing hourly rates, new IT staffing contract, HR procedures that address co-employment and knowledge transfer. Consolidate expiring Advanced IT and SMSA contracts into less expensive and more open contract vehicles, while preserving more options for agencies. Develop detailed financial info on IT staffing spend across all Executive branch agencies. Major Activities Saved $4.5 Million in CY09 through 10% rate reductions of AIT and SMSA contracts. Up to $6 Million can be saved if named resources are replaced by new workers in 2010. Developed detail financial data for all IT staffing engagements across the Commonwealth. In order to implement better metrics across the commonwealth. Released RFP for new IT staffing service, contract award expected in January 2010, with anticipated savings around 12% from overhead charged under SMSA and AIT Contracts. Recommendations Continue to follow ongoing efforts of IT Contingent Labor Steering Committee. They include: award of new contract; rollout of mew solution to all agencies; creation of Agency Advisory and Supplier Advisory Councils; and start of named resource migration project.

19. Page 19 Continuity of Operations/Government Planning Goals & Objectives Coordinate with the Office of Commonwealth Preparedness on formal evaluation of Technology dependencies for Agency/VITA/NG COOP/COG plans. Resolve any contractual, procedural or systems design issues for COOP related projects from all agencies with VITA and Northrop Grumman. Coordinate with OCP on project to create one set of employee and contractor security check credentials to streamline access to state facilities in both normal and emergency operations. Major Activities Formal evaluation of all Agency/VITA/NG COOP Technology plans related to Pandemic Flu and overall technology capacity underway. Will be completed by end of December with formal recommendations. Critical projects at OCP, the Governor’s Office, and DSS were reviewed for problems and through negotiations and solutions re-design, project were put back on track. SoTech and OCP are leading a team to evaluate the background check issue and develop a timeline to effect changes to agency rules and allow for singles et of consistent processes. Recommendations Continue to focus efforts between OCP and Secretary of Technology’s office in next administration and work together to identify areas of mutual interest.

20. Page 20 Information Security in the Commonwealth Goals & Objectives Significantly strengthen information security in the Commonwealth. Major Activities Broadened the scope of Security Standard to address the protection of data regardless of medium it is stored on. All data is subject to standards, including encryption. Promoted security awareness and education, including two conferences and a monthly Information Security Officer Advisory Group meeting. Assessed the security of 25 applications during application vulnerability assessment project. Improved the security of infrastructure operations with performance metrics and reporting Conducted two successful tests of Virginia’s disaster recovery capability in dedicated southwest Virginia backup data center. Recommendations Conduct annual audit of compliance to security policy and procedures at all agencies. Update application security standards and rollout an application vulnerability assessment test. Promote information security as an executive priority across all agencies. Strengthen infrastructure security through security metrics and measures. Introduce new methods for collecting and analyzing security threats targeting Virginia.

21. Page 21 Productivity Investment Fund: 2009 Goals and Objectives

22. Page 22 Productivity Investment Fund: Major Activities and Accomplishments Since 2007 (Inception of Fund) 30+ projects across 17 state agencies representative of the vast majority of Secretariats $3+ million awarded (grants, loans, gain share) 100% of the projects have increased service levels that align with the priorities of the Governor and the Commonwealth 14 projects have quantifiable cost-savings and will generate an expected 4.8X return on investment for the Commonwealth after 3 years In 2009 Solicitation for proposals generated 20+ formal applications for consideration 10 projects, 2+ million awarded in 2009 (grants, loans, gain share) 3 Fund Award Recipients Won 2009 Governors Technology Awards DBA's Business One Stop, DMME's Digital Signature, and DOE's Virginia and iTunes U Gov. Kaine recognized DBAs Business One Stop business creation efforts 15,000 entrepreneurs helped by the online business formation process, reflecting 8,587 new businesses formed Productivity Investment Fund Recognized by Nextgov Magazine as working model for Federal Government

23. Page 23 Bringing Innovative Education Programs to Scale Northrop Grumman has business connections that go back 100 years through Newport News Shipbuilding. NG ranks 16th in number of patents filed in Virginia over latest five year period. A significant contributor to the State’s Modeling & Simulation expertise through the VASCIC—An important example of state/local/industry R&D infrastructure investment collaboration. Works closely with Old Dominion University’s top-notch faculty in the Modeling and Simulation Center, which provides engineers, shipbuilders, and other professionals the tools they need to create the next great idea. And, of course, Northrop Grumman’s IT Sector and VITA have a major IT infrastructure partnership--significant data center in Chesterfield County, and operation in SWVA NG’s Apprentice School at Newport News Shipbuilding --a collaboration with Thomas Nelson Community College, has spurred the careers of thousands of workers over the years. NG sees it as a model that the company can replicate in other parts of the Commonwealth as it looks to expand. Northrop Grumman has business connections that go back 100 years through Newport News Shipbuilding. NG ranks 16th in number of patents filed in Virginia over latest five year period. A significant contributor to the State’s Modeling & Simulation expertise through the VASCIC—An important example of state/local/industry R&D infrastructure investment collaboration. Works closely with Old Dominion University’s top-notch faculty in the Modeling and Simulation Center, which provides engineers, shipbuilders, and other professionals the tools they need to create the next great idea. And, of course, Northrop Grumman’s IT Sector and VITA have a major IT infrastructure partnership--significant data center in Chesterfield County, and operation in SWVA NG’s Apprentice School at Newport News Shipbuilding --a collaboration with Thomas Nelson Community College, has spurred the careers of thousands of workers over the years. NG sees it as a model that the company can replicate in other parts of the Commonwealth as it looks to expand.

24. Page 24 Awards & Recognition September 3, 2009 - Stimulus.virginia.gov honored with a National Digital Government Achievement Award (government to citizen category) Virginia Beach and Fairfax County also honored. September 23, 2009 – Virginia is honored with the HIMSS State of the Year Award in recognition of the Commonwealth of Virginia’s many achievements in advancing Health IT.  October 27, 2009 - Recognition Awards for Outstanding Achievement in the field of IT from NASCIO. The state won in the following categories: Data, Information & Knowledge Management - Virginia Performs: Virginia's Performance Leadership and Accountability System Digital Government: Government to Citizen – Virginia.gov Portal Widgets IT Project and Portfolio Management – Virginia Technology Portfolio 2.0 We have "met" our state telework goal of having 20% of our telework eligible employees teleworking by 2010 (we are currently at 23.9% as of 10/1/09.

25. Page 25 Going Forward Recommendations Government Effectiveness and Citizen Service Complete Agency IT transformation Enterprise Application Consolidation focus at Agency level PIF expansion to encourage innovation and efficiency gain in more agencies Support Health IT project deployment (VHEN, HIE, etc.) Research and Development University Coordination CRTF concentration for new research projects Economic Development GAP fund expansion for Job Creation Broadband deployment New Initiatives Energy Technology Exploration VCSA development for technology initiatives