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. 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. 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. 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

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

6. CIT 2009 Goals and Objectives CIT Goal 2009 Objective Facilitate new technology industry cluster formation. Initiate the development of a community owned strategic planning process via “Innovation Index”. Secure global leadership in the development of entrepreneurial technology ventures. Secure seed stage private sector and federal funding for Virginia start-ups via “GAP Fund”. Secure global leadership in the identification and assimilation of technology. Improve technology effectiveness in Virginia government application via “Connect service”. Expand the use and application of broadband technologies Operate the Commonwealth's Office of Broadband Assistance and Telework Promotion.

7. CIT 2009 Major Accomplishment Highlights Innovation Index - worked with every technology council in the Commonwealth to establish a strategic planning and measurement process for community driven technology led economic development – will release first progress report on December 2, 2009. GAP Fund - examined over 350 startup companies for seed stage investment. Presented 19 companies for board review and generated funds to start 5 companies (current year budget reductions eliminated funds for the creation of 10 additional companies). GAP Fund - achieved a leverage ratio of 11 private sector investment dollars for every CIT investment dollar resulting in over $40M of private sector investment since program start. Stimulus Funding - as Commonwealth’s designee, CIT submitted over $20M of ARRA funding proposals in areas of health IT, broadband mapping and applications, seed stage funding. Ignite Institute - worked with VEDP to establish a portion of the CIT facility as the initial location for the Ignite Institute of Personalized Medicine. Transition – produced plan to accelerate the formation of technology jobs and maximize the Commonwealth’s return on investment for the Governor-elect transition team.

8. CIT 2010 Direction Highlights Health IT - with ARRA funding and in conjunction with Virginia Health Quality Center, successfully support convert at least 1,000 Commonwealth health practitioners from paper to electronic medical records Broadband Mapping - secure $2M of ARRA funding to complete Commonwealth broadband mapping. Broadband sustainability - secure $3 to $5M of ARRA funding to stimulate sustainable broadband deployment including telemedicine and commerce applications. Energy startup companies – secure $2.5M of ARRA funding to create a seed stage funding program for Virginia energy startup companies Statewide R&D plan - initiate the development of a new university R&D strategic plan to identify new research opportunities and attract new private and federal research funds.

9. Broadband and Telework Highlights Broadband • 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) Telework • Exceeded Legislated Goal for Telework (20% of Eligible Teleworking) – VA now has 24.5% of our telework eligible workforce teleworking. • Virginia conducted 1st Statewide Telework Day – August 3, 2009 (conducted in partnership with Telework!VA (Department of Rail and Public Transportation) and the Telework Exchange (4267 individuals and 52 organizations pledged to participate) estimated outcomes: 140,000 miles of driving avoided; 75.89 tons of pollutants removed; approximately $113, 000 saved.

10. Commonwealth Broadband Availability Map Phase I “Phase I” Broadband Availability Map launched May 2009–Virginia only state to create such a map at no incremental cost to citizens. ARRA funds applied for (CIT) to update and validate provider data Source: http://gismaps.virginia.gov/BroadbandMappingFinal/

11. VA Submissions – Dept of Commerce: Broadband Technology Opportunities Program (BTOP) and Dept of Agriculture: Broadband Initiatives Program (BIP) • 70 applications submitted by Virginia entities for Virginia projects: • Sustainable broadband adoption: 14 • Last mile: 35 (note: 15 individual applications were submitted by a single provider) • Middle mile: 14 • Public computing centers: 7 http://www.ntia.doc.gov/broadbandgrants/applications/results.cfm?org=&keywords=&program=BTOP&program=BIP%2FBTOP&state=&projstates=VA

12. 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 Going Forward… Virginia’s Role Virginia’s Priorities

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. ARRA/Stimulus Importance to the Commonwealth The Commonwealth will receive significant funding and incentives Funding estimates for COV will be more concrete in March 2010

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. 15

16. COV-HIE Conceptual View

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. 17

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. 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. 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. Productivity Investment Fund: 2009 Goals and Objectives Goal Objective Lower government operating costs Actively solicit ideas for innovative solutions from public and private enterprise Improve government service levels Encourage unique multi-agency and public-private partnerships Advance key performance goals as published on the Virginia Performs website (www.vaperforms.virginia.gov) Facilitate proposal development to ensure project success Ensure the project portfolio deliver or exceed expected results

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. Bringing Innovative Education Programs to Scale The Virginia Student Training and Refurbishment Program • An educational initiative based on a model at Forest Park High School in Prince William County. Using state and federal surplus computers, the program: • Trains students for IT certification • Refurbishes computers for school use • Donates refurbished computers to underprivileged students in the local community The schools that have already started VA STAR programs have: • saved approximately $450 for each surplus computer used within the school • refurbished 650 computers (that will be donated to schools and families) • enrolled at least 60 students in “Students Working to Advance Technology” teams, each of whom will be getting hands-on experience in IT repair and community service • employed 10 IT professionals to maintain the curriculum Recent Successes: VA STAR was recently granted a PIF Award of $345,150 to fund programs in 10 schools including Virginia Beach City Schools and Fairfax High School.

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. 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