Project Initiation

Request for Certification and Release of Funds Form

All Certified Projects Must Follow NM State Policies and Procurement Code

Project Name

/ eProcurement / Project Number / SPD0003
Agency CIO / Karen Baltzley / Date / April 15, 2008
Lead Agency / Agency Code / General Services Department / Other Agencies / DFA, DoIT

Executive Sponsor(s)

/ Arturo Jaramillo,
GSD Secretary
Mike Vinyard, SPD Division Director/Project Sponsor / Project Manager / TBD
Project Description (Provide a brief description and purpose for this project)

The scope of this project will include reviewing and documenting the current SHARE system procurement functionality and state of implementation, identify the functionality of the uninstalled SHARE modules for impact to SPD procurement and perform analysis of the SPD business process. The data will support the gap-analysis and identification of additional modules and or modifications to the current procurement process to achieve an efficient system. The scope will include development of priorities and a workflow design to configure and implement Strategic Sourcing and e-Procurement module functionality to automate business process requirements for Solicitation Release and Vendor Notification processing.

This project will enable State Purchasing to follow consistent, controlled, automated processes and provide workflow tracking as well as e-procurement functionality for state agencies and other public entities. Timely communications between SPD, vendors and Agencies will be facilitated and access to secured and accurate data will be significantly improved. Error reduction and quality control are critical need factors of the system as is the ability to assemble historical purchasing activities to support trend analysis and buying patterns. Effective Spend Management will provide higher value to the State for each dollar spent.

The implementation of SHARE financials for the State of New Mexico and the subsequent departure of State Purchasing Division off of the costly IDMS mainframe procurement applications have had a very large negative impact on the Divisions tracking ability, work flow and automation of business processes of the State Purchasing Division.

The Division reverted back to manual processing in order to meet the statutory and business requirements it is responsible for. Those areas most critically impacted are the Invitation to Bid process, Request for Proposal process, contract management and administration, vendor registration, management, internal tracking and assignment of workflow. The Division is in desperate need of automation and access to data particularly for document management to support public record and public review of procurement documents, detailed purchasing reports to support strategic sourcing efforts, bid tabulations, protest response and management, and review and approval of exception purchases (i.e., sole source, GSA requests and emergency requisitions).

There is business opportunity to enhance and meet critical needs through the implementation of a comprehensive eProcurement and Strategic Sourcing automated solution. The immediate opportunities are in the increased efficiency and accuracy of work, the increased professionalism of the products produced, the reassignment of staff to analytical, more value-added work than the current manual process requires and promotes. The overarching achievement will be an effective, efficient purchasing operation resulting in reduced waste, appropriate and effective use of public funds, streamlined and cooperative interactions with New Mexico businesses and an increase of accountability across state government.

This project will build upon the existing infrastructure and knowledge base of the State of New Mexico SHARE system by fully implementing State owned PeopleSoft Strategic Sourcing and procurement application modules where effective that will enhance and automate the State Purchasing Division (SPD). This will enable SPD to implement and follow consistent, controlled, accountable, efficient processes and provide Strategic Sourcing capabilities to all state agencies and other public entities utilizing eSourcing methodologies and practices.

The Division’s plan is to leverage the existing work done to align the business processes from the SHARE implementation and the internal SPD business, functional and project management knowledge and skills in collaboration with external support to complete this implementation. The outcomes will include procurement savings through the use of Strategic Sourcing and eProcurement as defined above.

We plan to utilize outside contract vendors for those areas we feel we have limited knowledge or resources including: customization of the software if required, specific high-level Oracle database administrator skills for sizing, tuning, configuration and implementation, IV&V oversight and guidance, DoIT oversight and guidance as well as interfacing for actual Data Center migration.

Existing SPD/GSD staff has significant functional experience in the PeopleSoft procurement system that will compliment and complete the required business and functional skills required to complete this project successfully.

The Division envisions and fully supports changes to business processes as well as organizational and management shifts in order to realize the greatest return on investment in this project.

Planned Start Date / April 2008 / Planned End Date / June 2009
Requested amount this Certification / $92,000 / Remaining Appropriation not Certified / $408,000
Proposed Certification Schedule
Phases / Planned Certification Date / Amount to be requested /

Major Deliverable(s) / Performance Measures

Initiation:
/ September 24, 2008 / $92,000 / Define Business Requirements through Surveying Business Owners and Subject Matter Experts, Complete Project Scope, Finalize PM contract & hire, draft IV & V contract and plan, Finalize Oracle Contract for Health Assessment, Conduct Health Assessment, draft IV&V contract (PM- $50.0, Oracle Health Assessment - $42.0)
Planning:
/ November 26, 2008 / $275,000 / Development of; Final Workflow Design Document, Project Management Plan, Operations Framework and Management Policy and Procedures, Application Support Plan, Risk Assessment & Mitigation, Project Schedule, Scope definition and cost estimates for workflow design and implementation, resource planning. Finalize IV&V contract and hire IV&V consultant, set up test region, estimate bandwidth utilization requirements, confirm system processing capacity requirements (PM - $60,202, IV&V - $25.0,Consulting -$189,798)
Implementation:
/ December 24, 2008 / $108,000 / Identified workflow design incorporating functionality from Strategic Sourcing and eProcurement modules software configured/ installed in test region; data conversion/ migration and or new data input; test; implement into production; team development and attend SME functional training; conduct vendor training; user acceptance; PM/IV &V periodic reports; test DR if available; QA, transition to operations (Consulting - $108,000)
Closeout:
/ April 29, 2009 / $25,000 / DoIT Closure Report, Project Closure Archive, IV &V Close out report, Post Mortem (Contingency - $25.0)

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

Fiscal Year
/ Amount / Funding Source(s) (use specific citations to laws, grants, etc.)
FY09 / $500,000.00 / The Department of Finance and Administration was awarded an appropriation of $500k - Laws 2008, Chapter 3, Sec. 7 – Data Processing Appropriations includes $500.0 “for strategic sourcing and electronic procurement configuration for the general services department”

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:
Oracle will conduct a Health Assessment to determine the current implementation state of the Strategic Sourcing and procurement modules. It is believed that there is adequate processing capacity for the two modules. Email notification and Crystal Reports that are already implemented in SHARE will be utilized. Network bandwidth should not be a problem as vendors were accessing the legacy system.
We don’t anticipate any major changes to the IT infrastructure as a result of this project as it will piggyback onto the existing Oracle/PeopleSoft installation and IT infrastructure already in place and certified for the State of New Mexico under the DoIT Data Center Operations. There may be a requirement for additional server space that will be determined during the planning phase. There may also be a bandwidth issue for large group emails related to the request for quote process.
We do see the need for the email component of the existing SHARE Purchasing module to function as promised as this feature is critical to this project.
The collaboration and contact person for DoIT Migration (live production hosting) for this project will be the GSD CIO, Karen Baltzley.
Until the initiation phase and the Health Assessment is complete, we will not have a complete answer for this analysis.

business Continuity Strategy

The strategy will follow the SHARE Business Continuity Strategy.
Additional Emergency and Disaster Management, Business Resumption and Operational Recovery Planning details will be addressed and documented during Planning phase.
Security strategy (Application and data security process, plan or standard)
The strategy will follow the SHARE Security Strategy. Remote access by vendors and LPB’s will be required. During the planning phase, these items will be addressed and documented. Bid documents must be secured.

Significant Risks and Mitigation Strategy

Risk 1
Description - Insufficient funds appropriated to support this project; / Probability: Medium-high / Impact: 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 impacted
Mitigation 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
Risk 2
Description- Lack of adequate personnel / Probability: High / Impact: 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 personnel are enlisted to support the effort
up front. Realistically develop schedule and identify potential outsource opportunities
Contingency Plan: Identify scope priorities and schedule slippage opportunities. Monitor closely the workload and personnel assignments. Utilize outside
resources if budget will accommodate
Risk 3
Description Outsourcing project implementation / Probability: High / Impact: System may not fully meet needs. Control over schedules/costs is less direct.
Mitigation Strategy: 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
Risk 4
Description Financial handling of procurement transactions in current SHARE system may have deviated from the “boiler” assumptions that are built into the procurement modules / Probability: Unknown / Impact: procurement transactions may be tracked in the financial system inconsistently and/or incorrectly
Mitigation Strategy: Substantial testing of the procurement (related) modules of Peoplesoft for financial handling/results will be necessary to identify if problems exist with current financial flows and those built into the modules
Contingency Plan: In event financial 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

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Revision: 2/14/08 Page 1