Contents | March 2006 | Volume 1, Issue 2
March Marathon
March has been a very busy month for IT in Texas. In addition to regular responsibilities of supporting agencies’ technology operations, maintaining data security, and managing projects, many IT staff have been working diligently on the Data Center Services request for offer (RFO) and interagency contracts (IACs). Their hard work and many long hours have been instrumental to the process.
The RFO sessions included nine half- or full-day workshops reviewing RFO requirements including service levels, reports, and statements of work. All agencies participating in the Data Center Services RFO were represented in the sessions. Each day’s workshop focused on updating a different portion of the RFO with agency requirements. Agency representatives helped to modify the statements of work, policies and procedures manual contents, service levels, HR requirements, and other sections. The workshops were long, intense, and absolutely critical to obtaining the broad input needed to develop a truly statewide RFO.
The IAC process began when DIR and a committee of IT and legal staff representing participating agencies developed the base IAC document. DIR supplied the initial draft and the committee recommended revisions to terms and contract language to better reflect agencies’ needs. The result is a standard IAC for all agencies participating in the RFO. (Agencies not participating in the RFO signed a simplified IAC short form.) Thanks to all staff who contributed to the IAC development and RFO.
Focus on Workforce Planning
Workforce planning is the process of aligning the organization with business goals and objectives. Simply put, to deliver the best services to citizens and other stakeholders, an agency must have the right people, with the right skills, organized in the right structure. Changes to an agency’s mission, strategy, or demand for services require the agency to update its workforce plan to match new priorities.
Contracting with a service provider for data center and disaster recovery services exemplifies one business strategy change that requires an updated workforce plan. Agencies must review the scope of services to be outsourced and determine how their agency and workforce is affected. On a strategic level, these agencies must look at the big picture of how their IT organization can best serve its customers in the new environment. On a tactical level, agencies must determine retained staff and adjust roles and responsibilities.
Participating data center agencies and the DIR Project Team will complete some workforce analysis tasks in April and May. Process mapping sessions will assist IT managers with identifying appropriate retained staff and contribute to workforce planning.
Some agencies, such as the Texas Commission on Environmental Quality (TCEQ), have already started this process. Patricia Machac, HR Director at TCEQ, said, “Workforce planning is an essential tool to ensure we stay in step with our agency mission. We developed our plan for the data center consolidation early to give our employees and managers plenty of time to transition, support each other, and adjust to this change.”
Workforce planning is not just good practice, it’s also a required part of the agency strategic plan. The State Auditor’s Office (SAO) publishes a Workforce Planning Guide with background on workforce planning and excellent step-by-step instructions to help agencies with this activity. The Auditor’s guide can be found on the SAO Website. As with any organizational change, workforce planning requires an open dialogue with employees to develop employee understanding and support.
Federal Funds Update
Federal funding will account for $48.3 billion or nearly 35 percent of the Texas state government budget for the 2006–07 biennium. Texas follows detailed processes to ensure full accountability for this critical funding stream. As Texas shifts from paying for assets and resources to paying for data center services, the state must update the cost allocation methodology to comply with federal requirements.
Far from a simple process, changing cost allocation involves solving technical questions (How do we measure service consumption?), financial questions (How do we separate and track costs?), and procedural questions (What documents must be filed and when?). Fortunately, a number of subject-matter experts have been working on these issues for several months. Their accomplishments include:
- Establishing a billing methodology plan: Data center services charges will be a“Billed Central Service” under the Statewide Cost Allocation Plan. DIR will provide the federal Division of Cost Allocation (DCA) a detailed description of the billing methodology not later than October 2006.
- Confirming the statewide advance planning document (APD) process: Coordination with the federal APD liaisons has determined that no statewide APD is required.
- Addressing agency APD requirements: Agencies may be able to submit a memo notification describing the changes, eliminating the need for an update to existing APDs. Agencies are encouraged to contact their APD liaison to confirm this will suffice for their federal partners.
The Federal Funds team would like to thank the subject-matter experts in the agencies, especially at the Health and Human Services Commission, for their help in addressing these important issues.
Fact or Fiction?
The data center project has statewide implications and many different stakeholders. With so many people involved and so many activities, rumors start easily. This feature of Data Center Download aims to present the facts and dispel rumors.
Facts
- FACT: All “in scope” agency data center employees will be offered a job by the selected service provider.
The RFO requires service providers to make comparable employment offers to in-scope state employees. This part of the RFO is not negotiable.
- FACT: IACs will be amended within 60 days of the RFO contract execution.
Agency assets and resources included in the data center services RFO will be refined and updated through the summer and fall. There will be a process mapping exercise, to determine
retained staff, due diligence, and other activities. All of these actions will help agencies and DIR determine the correct staffing levels so agencies and the data center have appropriate resources to effectively support their business customers. The amended IAC will include these updated figures.
- FACT: Participating agencies will comprise the RFO evaluation committee.
This is absolutely true. Agency participation is critical in a fair and just evaluation process. This is a statewide decision and the agencies will be highly involved in making this decision. Participating agencies will be involved on several levels including the technical, enterprise solution, and business value.
Fictional Rumors
- FICTION: I serve my agency’s best interest by transferring vacancies and keeping all of my staff.
Having experienced, knowledgeable individuals working for the service provider helps the agency transition its service smoothly. Agencies can benefit from revising the workforce plan to address data center changes. Workforce planning helps identify what staff should be transferred, what staff are retained, how this changes training needs, and what impact this has on the organizational structure. Additionally, some employees may be interested in the opportunity of working for the service provider. Focus on Workforce Planning (page 1) has more information.
- FICTION: Employees will transfer to DIR and then to the service provider.
Employees who accept the service provider’s employment offer transfer directly to the service provider and will become employees of the service provider on the contract commencement date.
- FICTION: When services start and employees move to the service provider, agencies’ budgets will move to DIR or be swept to the State Treasury.
Fiscal year 2006–07 dollars budgeted for inscope staff salaries and other expenses are not being swept. These funds will be used to pay for data center services. Future appropriations may be adjusted to reflect funding requirements for each agency’s data center costs.
- FICTION: The “winning” service provider has already been selected.
Rumors that DIR or the state has already determined the winning service provider are false. DIR and the agencies are investing considerable time and resources into the Data Center Services RFO specifically to have an open procurement that encourages competition and creative solutions.
Key Dates
- RFO Released March 31, 2006
- RFO Response Development April 1 – May 31, 2006
- Pre-Proposal Conference 1 April 13, 2006
- Pre-Proposal Conference 2 May 5, 2006
- RFO Responses Due May 31, 2006
- Clarification Sessions Begin June 22, 2006
- Down Select August 2006
- Due Diligence September – Mid-October 2006
- Offer Revisions October 2006
- Negotiations November – December 2006
- Contract Signed December 2006
- Transition and Employee Offers January – March 2007
- Contract Commencement April 2007
The Data Room
The Data Center Services RFO comprises more than 65 detailed documents developed by agencies and DIR, but service providers may need even more information about the state’s current data center operations to develop complete responses. When the data center consolidation team determined some of this data to be too copious to scan into electronic format, the Data Room was created. The Data Room is a central repository for RFO support documents and resources such as disaster recovery plans, business continuity plans, and contracts for in-scope software, third party maintenance, and services The Data Room has detailed rules and procedures governing its use.
Service providers may make an appointment to visit the Data Room facilities to read, review, and take notes on these documents, but not copy, scan or reproduce them. The facility will be monitored by DIR staff at all times. Before entering the data room, service providers will be required to sign a confidentiality agreement. As always during an open procurement, service providers will not be permitted to engage in conversation with DIR staff about the Data Center Services RFO or other pending procurements.
The Data Room is located in DIR’s offices at 300 West 15th Street in Austin. Access to the Data Room is by appointment only. Additional details about Data Room operations can be found in the Data Center Services RFO.
