Change Request for Certification and Release of Funds Form

All Certified Projects Must Follow NM State Policies and Procurement Code

Change Type:

/ Scope / Budget / Schedule

Project Name

/ eProcurement Phase II –SHARE Modules
Project Number / TBD / Date / 10/14/2009
Lead Agency / GSD / Agency Code / 350
Other Agencies / DFA and Pilot Agency TBD in Planning Phase / Project Phase / Initiation and Planning

Executive Sponsor

/ Arturo Jaramillo, GSD Secretary
Michael Vinyard – GSD State Purchasing Director
Project Manager / Ross Boom – State Purchasing Deputy Director
Agency Head / Arturo Jaramillo, GSD Secretary
Agency CIO/IT LEAD / Karen Baltzley
Project Description (Provide a brief description and purpose for this project)
The State Purchasing Division (SPD) reverted to a manual procurement process when SPD quit utilizing the very high cost IDMS mainframe system after the SHARE system was implemented hoping that SHARE would be able to deliver the system automation for its’ business processing that the Division required. Unfortunately, this transition created an untenable situation in which the division became unable to adequately manage schedules for implementing contract/agreement extensions and also became ineffective in scheduling new procurements to replace expiring agreements. Spend and usage data was no longer readily available and management procurement sourcing decisions were forced to rely on assumptions that could prove to be inaccurate. The result is that the division is less effective with its decisions and the time and effort to maintain the normal business operations has increased substantially. Errors and omissions that negatively effect procurements have increased markedly.
Industry has brought technical advances in the procurement system marketplace offerings which provide SPD opportunity to streamline the Invitation to Bid and Request for Proposal processes through improving communication methods and data exchange over the internet. At the same time, technology has spurred the creation of e-Procurement (defined as purchasing activities and related communications occurring on-line/on the internet) and e-Sourcing (defined as a methodology of identifying available products and services as well as their specifications and appropriate use through the ability of online search and collaboration). These systems are more reliable, substantially less error prone, documented, and faster than the current manual methods used by the division. The SHARE system is a product of PeopleSoft (now Oracle) and provides an integrated suite of modules which provide functionality that includes procurement, e-Procurement, and e-Sourcing. The State of New Mexico already owns key modules that support major portions of these procurement capabilities and SPD can improve some of the Divisions processes and performance through installation, configuration, and integration of these already owned modules within the current SHARE system. With integration capabilities, or linkage into existing inventory and financial systems, duplication of data entry and synchronization issues are mostly resolved.
The State Purchasing Division / General Services Department in coordination with the Department of Finance and Administration (DFA) SHARE Development Group has just completed Phase I of the eProcurement Project (the Implementation of Oracle Consulting Optimization A Recommendations). In this first phase, the State implemented the first set of recommendations from an Oracle Consulting HealthCheck Assessment. The Health check laid out a series of Recommendations for the implementation of eProcurement at the State of New Mexico. The first major sets of Recommendations were called Optimizations A and B. The A and B Recommendations were designed to help the State of New Mexico make the “foundational” changes needed to be ready for the upgrading of the SHARE system and the implementation of eProcurement, Strategic Sourcing and Supplier Contract Management modules.
As the Project team started planning for Phase II, we became aware of two things: (1) the possibility of upgrading the SHARE system might be farther down the line or subject to more limited funding than was anticipated back in February of 2009 when the recommendations were first made and (2) enough was accomplished with Phase I to provide an adequate foundation to implement the eProcurement module. It was determined that for the Phase II funding, it could be possible to implement eProcurement at a set of Pilot Agencies thus speeding along the path of recommendations to realize the benefits of Oracle eProcurement Module sooner.
Under Phase II we intend to implement the eProcurement Module to a set of Pilot Agencies. We will implement standard functionalities in eProcurement for the pilot agency selected in conjunction and coordination with DFA, SPD and the DFA FCD SU. At the end of this Pilot Agency implementation we anticipate the creation of a “cook book” that will detail steps to organically turn existing functionality on for additional agencies and associated users. We also plan to have sufficient funds to have Oracle assist in the roll out to an additional agency (or set of agencies) utilizing the above mentioned Cook Book or Check List method.
Planned Start Date / Planning – 12/1/2009
Implementation – 2/1/2010 / Planned End Date / Planning – 1/5/2010
Implementation – 6/30/2010

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

We considered the following justifications for the change request to implement eProcurement:
·  Additional Funding has been provided
·  Implementing the eProcurement Module will help improve business processes in terms of efficiency and effectiveness
·  Implementing eProcurement will address yet to be completed Health check recommendations
·  Implementing eProcurement will address and resolve Audit findings
·  Phase II will maintain continuity and momentum gained and achieved by the successful implementation of Phase I
·  Workflows and delivered on line inquiry (reporting) capabilities will provide further transparency and consistency in metric reporting
·  Workflows and supporting business processes delivered with eProcurement will enhance internal controls related to procurement activities
Amount Requested this Certification / $100,000
Amount Previously Certified / $500,000
Remaining Appropriation not Certified / $435,000
Total Appropriated Amount (include any new funds) / $935,000

Certification History (Include any previous project or phase certifications)

Date
/ Amount / Funding Source(s) (use specific citations to laws, grants, etc.)
10/08/08 / 92,000 / Laws 2008, Ch3, Sec 7, Item 10
2/25/08 / 145,000 / Laws 2008, Ch3, Sec 7, Item 10
3/31/09 / 263,000 / Laws 2008, Ch3, Sec 7, Item 10

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

Fiscal Year
/ Amount / Funding Source(s)
FY09 / 500,000 / Laws 2008, Ch3, Sec 7, Item 10
FY10 / 435,000 / Laws 2009, Ch3, Sec 7, Item 4
Budget
Comments: Phase I project contingency was not spent and will carry to Phase II
Description
/

FY07 & prior

/ FY08 / FY09
Phase I / FY10
Phase II / FY11
Staff - Internal
/ 0 / 0
Consulting Services / 490,500 / 433,000
Contingency / 8,000
Misc / 1,500 / 2,000
Total / $500,000 / $435,000

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

The Latest IV&V report noted this Project with a Green Status. Much of the IV&V report noted the exceptional work of the team and resulted in a handful of minor findings that the Project Team has addressed.

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

We do not anticipate significant impacts from this change in terms of Risks, Security, Records or Business Performance Measures. We do anticipate that much like Phase I, this project will change how State end users / Requestors in the system conduct their business. Like Phase I, our project intends to utilize a series of Design Sessions, Conference Room Pilots and Business Process Redesign steps and associated deliverables as part of the project to help address the impact of Change.

Security Strategy (Application and Data Security Process, Plan, or Standard)

The Implementation of the eProcurement Module, like Phase I will result in moderate and standard updates to security using the existing SHARE security tool capabilities. In the case of the Implementation of eProcurement, we will be rolling out the functionality of a new module to pilot agency users. This will result in changes and updates to security settings including:
·  New Permission Lists – to give menu access to the new modules
·  New Roles – to associate with the Permission Lists and support proposed updates to workflow
·  Users – users of the eProcurement module will be associated with the Roles noted above
·  Role Actions – this is an advanced security feature unique to eProcurement. Oracle will help the state implement and understand the implications of role actions in eProcurement
·  User Preferences – User Preferences may be updated as part of the project.
·  Requestor Defaults – ePro comes with a capability to default an entire chartfield sting per user. We anticipate this setup for pilot agency users.
We will make these changes in accordance and alignment with the new “Information Security Policy” draft that was issued on October 2, 2009.

IT System Analysis

On this document, or as an attachment, provide a summary response, including changes, to the following IT infrastructure topics relating to this project:
·  Describe or estimate this project’s impact on the Enterprise/DoIT infrastructure.
o  Hardware –N/A
o  Network (Include Diagram) - N/A
o  Software / Applications – configure existing eProcurement Module
o  Where is this system hosted? – It is part of the existing SHARE system which is hosted at the Simms Data Center.
§  If not hosted at DoIT Data Center what is your strategy to host at DoIT Data Center: (When, Why?)
§  DoIT Migration Collaboration
·  Summarize your collaboration with DoIT on moving this project from initialization through close (full production). Identify points of contact, dates of discussions, and results – Like Phase I, we will have regular meetings with the SHARE system manager (Steve Yore), SHARE operational managers and the DFA FCD SU.
·  Provide Application Architecture Schematic – NA – existing SHARE system

business Continuity Strategy

On this document, or as an attachment, provide a summary response, including changes, of your business Continuity Strategy.
·  Emergency and Disaster Management
o  This project is a configuration change only to the SHARE system. DoIT provides Emergency and Disaster Management for SHARE.
·  Business Resumption
o  This project is a configuration change only to the SHARE system. DoIT provides the business resumption services for SHARE
·  Operational Recovery Planning
o  This project is a configuration change only to the SHARE System. DoIT provides Operational Recovery Services for SHARE.
Phase II will be the implementation and configuration of an existing SHARE module. As such, we will plan and implement the project in accord with existing SHARE governance policies.

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Revision: 2/14/08 Page 1