Streamlining Capital Planning for HRSA: Challenges, Successes, and the Path Forward

1. Agenda HRSA Overview Capital Planning at HRSA Challenges in Implementing Capital Planning at HRSA CPIC successes at HRSA Growing and Maturing the CPIC Process

2. HRSA Overview • HRSA provides access to health care for underserved and disadvantaged populations • Provides grants to states to treat at risk individuals • Oversees the training and staffing of healthcare providers • Provides oversight for tissue and organ donation and monitors malpractice suits nationwide • Benefits of Capital Planning at HRSA • IT is an enabler for programs to meet their business needs • Capital Planning allows us to measure how well IT is being planned for, managed and achieving results • The HRSA IT portfolio includes the following investments: • 2 Majors (annual IT costs greater than $10M) • 1 Tactical (annual IT costs greater than $3M, but less than $10M) • 19 Supporting (annual IT costs greater than $100k, but less than $3M) (1) HHS Office of Budget FY2009 Budget In Brief (2) Office of Management and Budget Report on Information Technology (IT) Spending for the Federal Government for Fiscal Years 2007, 2008, and 2009

3. Select Cycle at HRSA 1 Develop Screening and Scoring Criteria • HRSA has been refining the Select Cycle for several years • All investments greater than $100K go through an internal review cycle at HRSA • HRSA tailors business case requirements for investments according to their IT Portfolio Classification (Major, Tactical or Supporting) • Major/Tactical investments also participate in a Departmental review • Training and individual assistance is available to all PMs that are interested in improving their business cases • Select evaluation is conducted through a critical partner review approach • Subject matter experts, including governance board reps, score business cases on their area of expertise • The CPIC team consolidates scores, analyzes results, and presents the ranked IT portfolio • Overall scores are reviewed and discussed by governance boards before being finalized • Highest tier governance board recommends IT Portfolio to the HRSA Administrator, which feeds IT spending plan decision-making 2 Create or Update Business Cases 3 Review and Score Business Cases 4 Analyze, Compare, and Rank Investments 5 Approval of IT Portfolio by Governance Boards and Administrator

4. Control Process at HRSA 1 Project Managers (PMs) update data in portfolio management tool • HRSA has completed one full year of Periodic Reporting (Control Review) • HRSA has received praise on our maturing Capital Planning procedures from the Department • Criteria Maturity • Originally PMs reported Cost and Schedule only on a quarterly basis • Reporting criteria now includes Security and Performance Measure reporting on a quarterly basis • Security criteria is aligned to the Security Team’s requirements for ease of reporting by PMs • Increased reporting on Performance and Cost/Schedule milestones has improved Select scores in those areas • Results Reporting • The CPIC team provides Scorecards and Corrective Action Plans to create a feedback loop for PMs • Governance boards utilize score trending and variance analysis to understand how individual investments and the overall IT portfolio are performing • Investments that show a downward trend work with the CPIC team and governance boards to improve performance 2 CPIC analyzes data to identify gaps and assign an overall score 3 PMs create Corrective Action Plans (CAPs) 4 CPIC creates Scorecards with CAPs and results briefings 5 Results are presented to two tiers of Governance Bodies

5. HRSA’s IT Clearance Process 1 Information entered into requisition system • Overview: • HRSA has instituted an internal control process to monitor, review, and correct IT contracts before they are released to the public • Ensures that necessary contract language is included to meet all Federal, HHS, and HRSA IT requirements • Leverages the input of Subject Matter Experts (SMEs) on SOW areas • Benefits • Integrates CPIC into the procurement cycle • Mechanism to ensure that IT procurements are mapped to an approved Business Case • Provides an opportunity for PMs to begin planning for new IT investments outside of the scheduled CPIC cycle 2 OIT assigns/verifies IT investment number and determines reporting requirements 3 SOW entered into collaboration tool for review and comment by appropriate SMEs 4 PMs are contacted with required changes to SOWs 5 SOW is cleared and sent to Contracting for release

6. Challenges and Solutions of Capital Planning at HRSA

7. CPIC Successes at HRSA What Has Been Done Impact • HRSA now actively managing and monitoring the IT portfolio • Insight into individual investments increased at all levels • Organization has embraced process as meaningful • Initiated both Select and Control phases based on best practices • Process tailored to HRSA’s unique needs Developed CPIC Process 1 • Investment data reviewed by agency executives on a regular basis • Executives realize greater transparency from PMs • Increased importance of CPIC in budgeting process IT Governance • Established and chartered two separate IT Governance review boards • Conduct regular meetings to review IT Capital Planning data 2 Earned Value Management • Developed tailored EVM guidance and reporting process • Institutionalized a Baseline Change Request process • Forged routine communications with Contracting on EVM implementation and use • Elevated understanding of EVM principles • Improved control over investment baselines and IT Spending in HRSA contracts • Incorporated EVM reporting into Quarterly Control process for all investments greater than $100K 3

8. Growing and Maturing the CPIC process at HRSA

9. Questions?