Presented to: Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety and the Judiciary, Hon. Loni Hancock, Chair.
The FI$Cal project recently completed a procurement and selected the vendor who will build FI$Cal, the state's single, fully integrated financial information system. Project staff has submitted several documents to the Legislature, including a special project report that updates the project plans, a report to the legislature that includes information on the procurement, and a budget request for $89 million ($54 million General Fund) and 86 new positions in order to begin the first year of system development.
This report (24 pages): (1) provides an extensive background on the project; (2) describes the innovative procurement process that state staff conducted to secure vendor services to build the FI$Cal system, including information on the procurement results; (3) reviews the FI$Cal project plans as explained in project documents; and (4) analyzes features of the project’s proposed plans and offers recommendations to the Legislature as it considers the budget request and the future of the system.
Based upon our analysis of the proposed plans and review of project status, we believe that the benefits of proceeding with FI$Cal development at this time outweigh the costs of the project. In addition to the inherent benefits derived from having a modern, fully integrated financial information system for the state, proceeding with FI$Cal would also avoid substantial costs associated with replacing various individual financial management systems over the next several years. However, we recognize the tight budget times requiring the Legislature to make difficult decisions regarding programmatic reductions. Therefore, should the Legislature wish to proceed with the project, we offer alternative funding options that reduce the state’s reliance on General Fund monies to pay for the project in the short term. These options include the state's GS $Mart loan program, vendor financing, and advanced payments from the special funds for the first few years of system development. Additionally, we point out ways the project’s change management and staffing plans to implement FI$Cal statewide could be improved to reduce risk and maximize project benefits.
Presented to: Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government, Hon. Gloria Negrete McLeod, Chair
Senate Budget and Fiscal Review Subcommittee No. 5
On Corrections, Public Safety and the Judiciary
Hon. Loni Hancock, Chair
Presented to:
Assembly Budget Subcommittee No. 4 On State Administration
Hon. Warren Furutani, Chair
Presented to:
Budget and Fiscal Review Subcommittee No. 4 On State Administration
Hon. Mark DeSaulnier, Chair
The state's traditional approach for IT procurement, called the firm fixed price (FFP) procurement, creates a prescriptive process that gives equal footing to all vendors to help ensure open competition and reduce the state’s exposure to protests and potential lawsuits due to perceived vendor bias. As an alternative the state is beginning to look to so-called multi–stage procurement because it creates a collaborative environment for state and vendor staff. Our analysis indicates that an earlier evaluation of procurement strategy can reduce the risks of cost overruns and schedule delays, so we recommend that the Legislature require state entities to include procurement strategies in project documents when they submit them for approval.
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Short video summary)
In this four-minute video, analyst Erika Li summarizes the LAO report Expanding Multi–Stage Procurements for Large IT Systems.
Governor's Reorganization Plan to Consolidate Information Technology Functions
Index of Information Technology Issues in the Analysis of the 2008-09 Budget Bill
The administration proposes a number of changes to the state’s information technology (IT) governance structure. Our analysis finds that (1) the planning and policy development roles are appropriately placed with the Chief Information Officer (CIO), (2) moving IT project oversight to CIO would eliminate objectivity, and (3) a separate security office may create an unnecessary layer of review. We recommend the Legislature adopt an alternative structure that addresses these concerns.
Index of Information Technology Issues in the Analysis of the 2007-08 Budget Bill
In 2005 the Department of Finance (DOF) began an information technology (IT) project to replace the state’s budget system. After interviewing departments’ financial staff, DOF has concluded the project needs to be expanded because most state department automated financial systems are old and do not support modern financial reporting requirements. The Governor’s budget proposes a $1.3 billion IT project over the next decade to develop a statewide financial system that would be used by all departments. Our analysis discusses the primary components of this project proposal, key issues the Legislature should consider in evaluating the project, and recommends additional oversight tools if the Legislature decides the project should go forward.
Index of Information Technology Issues in the Analysis of the 2006-07 Budget Bill
Presented to the Little Hoover Commission on April 28, 2005.
The Governor proposes to consolidate the state’s two largest data centers into the Department of Technology Services. A consolidated data center should ultimately result in improved services and reduced costs. A number of specific components of the proposal, however, would preempt the Legislature’s appropriation and oversight roles. For instance, the department’s expenditures would be controlled by administration officials outside the purview of the Legislature. Consequently, we recommend that the Legislature approve the consolidation but modify some key components.
Index of Information Technology Issues in the Analysis of the Budget Bill, 2005-06
Presented to Assembly Budget Committee on March 24, 2004
Index of Information Technology Issues in the Analysis of the Budget Bill, 2004-05
In March 2003, the Department of Finance began a statewide assessment of 117 state information technology (IT) projects. The results of the assessment indicate that departments are having problems (1) developing their IT projects and (2) adhering to state policies. Our analysis examines the assessment results, identifies some possible deficiencies in the state's IT processes, and makes recommendations on how the Legislature can address the deficiencies.
Presented to the Assembly Select Committee on Information Technology and the High-Tech Workforce
Index of Information Technology Issues in the Analysis of the Budget Bill, 2003-04
In reviewing the state's two major data centers, we found two options that could reduce department expenditures: (1) consolidation of data centers, and (2) consolidation of servers from various state departments to state data centers.
The administration proposes a model for a new state information technology governance structure consisting of three components: a State Chief Information Officer, an oversight board, and state control agencies. Our review found that the proposal lacks details and leaves many questions unanswered. We recommend the Legislature evaluate the proposal based on the key objectives of leadership, accountability, and oversight.
The Department of General Services' (DGS) GS $Mart Program has been used to finance $521 million in state equipment purchases over the past seven years. We find that DGS has demonstrated initiative in developing this innovative program but that the program has significant deficiencies, including a lack of statutory authority.
Index of Information Technology Issues in the Analysis of the Budget Bill, 2002-03
Through the use of Enterprise License Agreements (ELAs), which are software contracts encompassing the entire state, could result in many benefits. We provide a number of suggestions and recommendations that can help the Legislature ensure ELAs are cost effective and beneficial to the state.
The Department of Information Technology (DOIT) is scheduled to sunset on June 30, 2002. DOIT's overall performance of its legislative mandates is one of limited success. Therefore, we recommend a two-year reauthorization of DOIT and a Bureau of State Audits review of DOIT's progress in meeting its mandated responsibilities.
Index of Information Technology Issues in the Analysis of the Budget Bill, 2001-02
We recommend that the Legislature direct the Department of Information Technology to report at budget hearings on the resources and time frames needed to conduct a study which (1) examines data centers' rates for nonmainframe activities, (2) identifies potential opportunities for specialization between the state's primary data centers, and (3) identifies data center functions that can be provided more efficiently by private industry.
It appears that there are a number of potential benefits from e-government implementation. We raise, though, a number of concerns about the direction that the state is taking in this area. We also outline specific qualities to look for before approving future e-government proposals and identify policy issues to address.
Handout accompanying testimony given to Assembly Budget Subcommittee No. 2 on Education Finance
Index of Information Technology Issues in the Analysis of the Budget Bill, 2000-01
The Governor's budget provides a total of $433 million to increase the use of technology in education. We comment on this proposal and make several recommendations.
The growth of the Internet raises many tax policy issues. These include: How can we ensure that the tax system is fair without interfering with the Internet's evolution? How will the Internet's growth affect government tax bases? We examine these and other Internet-related tax issues in detail, and recommend that California approach them by pursuing multistate tax agreements and consider undertaking a comprehensive review of telecommunication related levies.
In 1999, the Legislature and Governor changed the state’s child support enforcement program which significantly increased state authority over the program. We review the governing legislation and recommend steps designed to maximize collections while minimizing federal penalties and automation problems.
Index of Information Technology Issues in the Analysis of the Budget Bill, 1999-00
Evaluating Information Technology Projects
We examine 12 specific business practices frequently used by the private sector to develop, acquire, and implement information technology. We recommend that these best practices be used on state information technology projects, unless a project has unique characteristics that warrant exceptions.
The Year 2000 (“Y2K”) Computer Problem
Department of Motor Vehicles Database Redesign
In order to ensure the resolution of the problems discussed in the three 1994 reports, we recommend that the Legislature (1) continue to closely monitor the state's information technology efforts and ensure that the administration addresses the issues raised in three oversight reports; (2) hold the new information technology oversight agency accountable, but remove barriers to fulfilling its mission; and (3) direct the administration to implement a new cost allocation method to fund the new information technology oversight department.
Department of Motor Vehicles Database Redesign
While there have been many significant advances in the state's deployment and uses of IT since the state's first computer was installed in the mid-1950s, there remain fundamental problems that prevent the state from realizing a better return on its IT investment.
In our Analysis of the 1994-95 Budget Bill, we withheld recommendation on $2 million proposed to support the Department of Finance's Office of Information Technology (OIT). We indicated that there are serious, fundamental problems with the manner in which the state plans and implements major information technology projects, and noted that we were conducting a review of the state's information technology infrastructure. This supplemental analysis includes the major findings and recommendations of that review as they relate to the OIT.
Department of Motor Vehicles Database Redesign
Information Technology Applications For State Operations
State Telecommunications Management
The Institute of Computer Technology (ICT) was established in 1982 by three school districts in Santa Clara County—Sunnyvale Elementary, Fremont Union High School, and Los Gatos Joint Union High School. The purpose of the institute is to provide education and training in computer technology for children and adults.