Change Request for Certification and Release of Funds Form

All Certified Projects Must Follow NM State Policies and Procurement Code

Change Type:

/ Scope / Budget X / Schedule
Project Governance

Project Name

/ ONGARD Modernization
Project Phase / Planning
Date / November 20th, 2013
Lead Agency / Taxation and Revenue Department (TRD)
Other Agencies / State Land Office (SLO), Energy Minerals Natural Resource Department (EMNRD)

Executive Sponsor

/ Terry Rister-TRD, Elaine Olah-SLO, Jami Bailey-EMNRD
Agency Head / Demesia Padilla-TRD, Ray Powell-SLO, David Martin-EMNRD
Agency CIO/IT Lead / Greg Saunders-TRD CIO
Project Manager / Tim Elsbrock
Project Abstract (Provide a brief description and purpose for this project)
The ONGARD Modernization Project was funded in the 2012 Legislative session. In March 2013, the overall project was certified for a small amount ($39k) to fund contract assistance in development of a RFP for Business Process Analysis (BPA). At a meeting of the ONGARD SMT on May1, the executive steering body directed the ONGARD team to shift focus to the API Number Expansion and Horizontal Drilling portion of the project. This new direction put the BPA effort on a back burner and stepped up the focus on the API Number Expansion and Horizontal Drilling portion of the project. The SMT also directed the ONGARD team to complete the API Number Expansion and Horizontal Drilling specification, requirements and design documentation as soon as possible. It was expected that completion of this document would greatly improve our ability to estimate the scope of the changes that were estimated to be in the $3million range.
The API Number Expansion and Horizontal Drilling analysis work, noted above, discovered that the current concept of Spacing Unit as defined by the Oil and Conservation Division would not change with the Implementation of the 14 digit API. As such and as reflected in this change request, resources are now being diverted to support the business process analysis effort and other identified initiatives such as Print Modernization.
The newly expanded Print Modernization subproject within the ONGARD Modernization project was initially focused on risk mitigation. The current mainframe print services provided by DoIT (on Xerox printers) are being mothballed. This decision is driven by a reduction in printer requirements as customers have moved from mainframe to server based solutions over the last decade. Additionally, a part of the Xerox print solution depends on a Windows 95 application that is still in production and very clearly an antiquated, single point of failure workflow is in production within the ONGARD notice generation and printing workflow. The newly developed Print Modernization request also reflects OSC’S intent to mitigate this risk by removing this single point of failure by updating the notice generation and printing process hardware and software of the ONGARD system. Along with elimination of the risk associated with outdated technology, identified print management solutions also offer archival and web delivery functionality that would allow expansion of ONGARD customer services and elimination of risks associated with the current print scenario.
Start Date / July 8, 2013 / Planned End Date / June 30, 2015

Justification for Change in Certification (Include budget adjustment request; Business Value and/or program Results)

The prior planning certification was to certify project funds in preparation for an RFP to implement the 14-API digit API change in ONGARD, as well as the Business Process Analysis for the entire ONGARD system to define the future state of ONGARD. However, the 14 Digit API work is no longer required as the SMT has agreed to have the Oil Conservation Division of the Energy Minerals and Natural Resources department implement the 14 digit API within their systems, this is possible since they control the front-end of the ONGARD data flow.
Due to this change, planning activities for the ONGARD Modernization project have turned to the Business Process Analysis RFP and bringing the ONGARD notice printing and archiving process up to current standards.
As such we are asking for an increase in budget allocation for the planning phase to achieve the two objectives noted above.
Amount Requested this Certification / $ 1,205,000
Amount Previously Certified / $ 126,000
Remaining Appropriation not Certified / $ 2,669,000
Total Appropriated Amount (include any new funds) / $ 4,000,000

Certification History (Include any previous project or phase certifications)

Date
/ Amount / Funding Source(s) (use specific citations to laws, grants, etc.)
April 25, 2013 / $36,000 / Laws of 2012, Chapter 19, Section 7, Item 5
May 23, 2012 / $90,000 / Laws of 2012, Chapter 19, Section 7, Item 5

Appropriation History (Include all Funding sources, e.g. Federal, State, County, Municipal laws or grants)

Fiscal Year
/ Amount / Funding Source
FY12 / $116,000 / Laws of 2011, Chapter 179, Section 4
FY12 / $6,000,000 / Laws of 2012, Chapter 19, Section 7, Item 5
Major Deliverable Schedule and Performance Measures

Major Project Deliverable and Performance Measure

/ Budget /

Due Date

/

Project Phase

Printing Process analysis and removal of windows 95 single point of failure in ONGARD notice generation workflow / $400,000 / 7/01/14 / Planning
Business/System Analysis. Position backfill and training of agency personnel ramping up to the Business Process Analysis, Function Point Analysis refresh, LIMS interface / $805,000 / 7/01/14 / Planning
Budget
Comments: The estimate for consulting services below includes allocations for backfilling the following positions in support of the Business Process Analysis:
·  2 people for 10 months at SLO
·  2 people for 10 months at TRD
·  1 person for 12 months at OSC
Description
/

FY14& Prior

/ FY15 / FY16
Staff - Internal
Consulting Services / $200,000 / $500,000 / $200,000
Hardware
Software / $305,000
Total / $200,000 / $805,000 / $200,000

Independent Verification & Validation (Include summary of the latest IV & V report)

This report covers the period October 1, 2013, through October 31, 2013.

Executive Summary

·  This report covers the period November 1, 2013, through November 30, 2013.
The project status is rated GREEN. The schedule status is rated GREEN. The budget status is rated GREEN.
The ONGARD system supports business processes associated with collection of taxes and royalties paid on the extraction of oil and natural gas resources, as well as the revenues from other State Land Office activities. The ONGARD service center (OSC) supports the State Land Office (SLO), the Energy, Minerals & Natural Resource Department (EMNRD) Oil Conservation District (OCD), and the Taxation and Revenue Department (TRD). These three agencies, and the OSC, have a vision to modernize ONGARD, and this Mainframe Stabilization project is phase 1. The project received $6m in funding from the FY12 legislative appropriation process to fund both phases of the project. The ONGARD system collects approximately 30% of all New Mexico state revenue.
The project concluded the technical writer contract for the drafting of the BPA RFP during this month. Currently, there are no contractual efforts for the modernization project. The tech writer contract was finished on-time and on-budget and the output from the contractor was excellent. POD believes that the $129k allotted for RSI and the tech writer was State money well spent. Both contracts moved the modernization forward for excellent value.
The OSC management team is preparing documentation for the December PCC meeting. The project is planning on drawing down $1.4m in additional planning funds. These funds are allocated for augmenting staff for the tri-agencies for the BPA RFP preparation and effort and funding the print modernization solution. The OSC PM will distribute draft PCC documentation for SMT review.
The OSC Director has been in contact with the vendor who performed the 2008 function point analysis to refresh that study. As the applications development team has substantially reduced the screens and code base for ONGARD, a new study is required. It is envisioned that this will be a 2-3 week effort and the Director is working on a price quote.
The monthly SMT meeting was held on 11/13 and is covered in the Detail Section of this report. The meeting was well attended, had a full agenda, and was productive. The output/action items for the OSC PM from the meeting are as follows: forward the draft PCC documentation to the SMT for review, provide details on how the budget estimates, by phase, were created, provide a preliminary timeline for the modernization deliverables, and provide staff level expectations for the BPA effort, broken down by agency.
The draft RFP, created by the technical writer and the OSC PM, has been reviewed favorably by POD. Input from the tri-agency SME’s has been provided and a final draft will be submitted to the SMT in the near future. After that, it will be sent to DOIT and SPD for final review and then posted publicly. It is of critical importance for the procurement to be considered by SPD to be a multi-phase procurement. The vendor who wins the BPA RFP should have the ability to bid on any subsequent contract. The target release date for the RFP is early 2014. There is a slight delay in processing the RFP as New Horizons, the State-approved disability vendor, reviews the RFP to evaluate whether they have the necessary resources to perform the work.
A design approach for the 14-digit API project has been selected by the SMT. The project will not be done in ONGARD, instead EMNRD IT will perform the work and the $1.9m budgeted for the project out of the modernization project will not be needed.

Impact of Change (May Include Significant Risks & Mitigation Strategy; SECURITY, Consolidation & Maintenance Strategies; Records Retention; & Business Performance Measures)

Risk Mitigation—Print Modernization: This change will allow the OSC to resolving the single point of failure within the ONGARD notice generation workflow by removing the antiquated form creation and printing process/ spooling functionality currently in place.
Risk Mitigation—Position backfill during project: This change will allow for the ONGARD Subject Matter Experts (SME) to hire/contract and train backfill personnel so that the ONGARD subject matter experts can dedicate their time to the Business Process Analysis. This effort is estimated to be a 12-14 month process from inception to completion. This is in planning to give the agencies time to cross train the contracted personnel.
Risk Mitigation—Business Process Analysis: The completion of a Business Process Analysis RFP will put the ONGARD team in the position to address the lack of documentation and business rules in the ONGARD system. At the same time, the BPA exercise will clearly identify future system requirements for the ONGARD system and will provide an excellent basis for an expected RFP to redevelop ONGARD.
Risk Mitigation—Redo Function Point Analysis: The Function Point Analysis will be updated to reflect the removal of two million lines of code from the ONGARD system within the last 3 years. This should help us better estimate the cost of replacing the ONGARD system.

Page | 7