Implementation
Request for Certification and Release of Funds Form
All Certified Projects Must Follow NM State Policies and Procurement Code
Project Name
/ eProcurement Phase II –SHARE ModulesProject Number / SPD0004 / Date / 09-Mar-2010
Lead Agency / GSD / Agency Code / 350
Other Agencies / DFA and Pilot Agency TBD at the conclusion of the Planning Phase / Project Phase / Implementation
Executive Sponsor
/ Arturo Jaramillo, GSD SecretaryMichael Vinyard – GSD State Purchasing Director
Project Manager / Keith Campbell
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 / 05-Apr-2010 / Planned End Date / 30-Jun-2010
Amount Requested this Certification / $335,000
Amount Previously Certified / $600,000
Remaining Appropriation not Certified / $335,000
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.)08-Oct-2008 / 92,000 / Laws 2008, Ch3, Sec 7, Item 10
25-Feb-2008 / 145,000 / Laws 2008, Ch3, Sec 7, Item 10
31-Mar-2009 / 263,000 / Laws 2008, Ch3, Sec 7, Item 10
28-Oct-2009 / 100,000 / Laws 2009, Ch124 Sec 7, Item 4
Proposed Certification Schedule for Current Fiscal Year (agency to complete for all phases)
Phases / Amount Requested /
Major Deliverable(s) / Performance Measure(s)
/Due Dates
Initiation:
/ $ -0- / Determine which of the Options best meets Business Requirements compiled during Phase I Healthcheck based on input from Business Owners and Subject Matter Experts, Complete Project Scope, Finalize PM contract & hire, draft IV & V contract and plan. / 11/30/09Planning:
/ $100,000 / Complete Fit-Gap, Determine Implementation Scope, Draft Implementation Project Schedule, Update Project Management Plan, Operations Framework and Management Policy and Procedures, Risk Assessment & Mitigation, Project Schedule, Scope definition and cost estimates for implementation, resource planning. Finalize IV&V contract and hire IV&V consultant. / 01/05/2010Implementation: / $335,000 / Implement eProcurement modules according to scope finalized in the Planning Phase; Configure the system; team development; SME functional training; Perform User Testing; Perform Regression / Integration Testing in QA; move to production; PM/IV &V reports / 06/30/2010
Subsequent Rollouts / $ - 0 - / Rollout functionality to additional agencies utilizing the CookBook developed during Implementation phase and delivered on go-live for the pilot agencies. / August 2010
Closeout: / $-0- / DoIT Closure Report, Project Closure Archive,
IV &V Close out report, Lessons Learned / October 2010
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, Ch. 124 Sec 7, Item 4
Budget
Comments:
Description
/FY07 & Prior
/ FY08 / FY09Phase I / FY10
Phase II / FY11
Staff - Internal
/ 0 / 0Consulting Services / 490,500 / 433,000
Contingency / 8,000*
Misc / 1,500 / 2,000
Total / $500,000 / $435,000
*Note: FY09 Unexpended Contingency $$ will be carried over to Phase II Project
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.
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 – eProcurement comes with a capability to default an entire chartfield string per user. We anticipate this setup for pilot agency users.
We will make these changes in accordance and alignment with the State of New Mexico “Information Security Policy” draft that was issued by Department of Information Technology on October 2, 2009.
Independent Verification & Validation (Include summary of the latest IV V report)
Phase I final 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.The first IV&V report for Phase II is due on 3/19/10.
Significant Risks and Mitigation Strategy
Description - Insufficient funds appropriated to support this project; / Probability: POSSIBLE / Impact: LOW 1) May be forced to implement procurement functionality in a phased manner. 2) SPD may be unable to meet statutory requirements, 3) customer agency needs may not be completely met, and 4) procurement efficiency will be negatively impactedMitigation Strategy: Need to prioritize required functionality and focus efforts on highest impact areas.
Contingency Plan: Worst case, status quo continues; Most likely case, implement a subset of functionality. SPD may be required to assign personnel to cover gaps in system/tool availability
Description- Lack of sufficient personnel to support the eProc Project effort. / Probability: POSSIBLE / Impact: LOW that schedules will be delayed, costs may increase and project may not receive the thought and testing required for smooth transition into production/implementation Surprises may occur during the initial go-live period
Mitigation Strategy: Ensure adequate trained personnel are enlisted to support the effort up front. Realistically develop schedule and identify potential outsource opportunities such as Project Management, consultants, software configuration, etc. Outsource additional resources.
Contingency Plan: Identify scope priorities and schedule slippage opportunities. Monitor closely the workload and personnel assignments. Utilize outside resources if budget will accommodate.
Description Outsourcing project implementation / Probability: EXPECTED / Impact: LOW - System may not fully meet needs. Costs are increased.
Mitigation Strategy: Ensure dedicated Project Manager resource. Must closely monitor and manage outside implementation team. Perform regular validation reviews to ensure implementation assumptions used by third party are consistent with user organization(s) as well as track progress to identify issues that may cause schedule delays and cost overruns. If schedules start to slip, apply additional resources and/or re-focus vendor priorities. Monitor cost incurrence closely. Structure the third party agreement to incentivize schedule adherence, cost control, and resultant system performance.
Contingency Plan: Monitor situation closely and utilize all functionality available. Worst case: Status quo continues, unable to fully meet statutory requirements, serve customers, and procurement bottleneck. SPD may be required to assign personnel to cover gaps in system/tool availability
Description Handling of procurement transactions in current SHARE system may have deviated from the best practices that are built into the procurement modules / Probability: POSSIBLE / Impact: LOW that Procurement transactions may be tracked in the financial system inconsistently and/or incorrectly
Mitigation Strategy: Rely on Health Check to identify areas deviated from the best practices and make recommendations for handling. Substantial testing of the procurement (related) modules of PeopleSoft for handling/results will be necessary to identify if problems exist with current flows and those built into the modules
Contingency Plan: In event transactions are inconsistent between the modules, delay of migration to the production environment may be necessary until such time resolution and consistency are available. SPD may be required to assign personnel to cover gaps in system/tool availability
Description – Insufficient or ineffective SHARE training for SPD and Agency Staff. / Probability: POSSIBLE / Impact: LOW Improvements and enhancements to current PeopleSoft
(SHARE) system purchasing functionality will not be realized. Transition or change management will be more difficult because of user errors. Increased User trouble tickets and demand on SHARE technical support staff.
Mitigation Strategy: Identify Training needs, end users who need training. Standardize procedures for all Central Purchasing and Agency Purchasing end users. Identify “Super Users” from the Central Purchasing, Agency and Tech Support User community who will be trained. Engage “Super
Users” with the eProc Team in developing of comprehensive training plan to provide training on Purchasing modules, functions and procedures. Ask Oracle to include recommendations for training specific to their recommendations for improvements and road forward for the People Soft (SHARE) system and consider contracting Oracle Trainers to provide specific training for State of NM Purchasing “Super Users” and others, as possible.
Update and utilize existing UPK Training facilities for training end users.
Contingency Plan: Identify Super Users at Central Purchasing and each Agency who will be responsible to train end users at their location or unit. These Super Users will also be responsible for providing first level End user support on Purchasing functions and procedures to end users in their location. Develop Training materials and webinars and make available to Purchasing and Agency end users.
Record Retention Policy (Describe the Agency’s records retention requirements for this project)