Improving How We Do Business in Virginia: Procurement Reform for the Commonwealth

1
Improving How We Do Business in Virginia
Procurement Reform for the Commonwealth

• Lemuel C. Stewart
• Chief Information Officer
• Commonwealth of Virginia
• NASCIO Corporate Leadership Council
• April 25, 2004

2
History

• IT Procurement Reform was launched during a time
  of major change in IT and state government
• IT Consolidation launched in July 2003 to
  consolidate the IT utility of 90 executive
  branch agencies into VITA
• Scope includes nearly 1,300 employees supporting
  60,000 users in more than 1,500 locations
• VITA given sole procurement authority for IT in
  July 2002
• Governors Commission on Efficiency and
  Effectiveness findings and recommendations in
  December 2002
• Virginia would rank 50th if it was in SP500
• State has tremendous opportunities to leverage
  buying power and embrace and implement better
  solutions and tools
• Virginia does not purchase and utilize IT in the
  most cost-effective manner

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Purpose

• To develop a new technology procurement business
  process based on best practices. Desired state
• Leveraging Virginias ample buying power
• Innovative tools and solutions
• Increased use and usefulness of statewide
  technology contracts
• Fast and flexible processes
• Positive relationships with customers and
  partners
• Value-oriented, not price-oriented
• Business-driven and enterprise-oriented
• Fair, standardized contract vehicles
• Making Virginia much easier to do business with!

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Progress Accomplishments

• Centralized IT procurement
• Realignment of organization into functional teams
• Solutions-based RFP approach
• Limited terms and conditions as mandated
• Innovative public-private partnerships
• Virginia Partners in Procurement Program
  participant
• Technology-enabled procurement
• Alternative dispute resolution to reduce protests
  and disputes
• Cooperative procurements

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Results

• Savings for Virginia Partners in Procurement
• Estimated savings of 7.6 million for computer
  hardware and software
• Anticipated savings of 1.3 million for storage
  media
• Reverse auction is expected to save more than 15
  for media storage tapes
• More standardization of configurations
• Local governments and higher education have the
  ability to purchase
• Positive feedback from supplier community

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Challenges Requirements

• Significant change management
• Removing barriers and agency silos
• Internal staff awareness and training
• Updating skills and systems
• Executive leadership and buy-in
• Tying procurement to state standards,
  architecture, and project management
• Focusing on quick winscommodities with
  greatest potential for cost reduction and savings
  through aggregated purchasing
• Fostering statewide buying cooperation through
  stakeholder involvement

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Opportunities

• Public / Private Educational Facilities and
  Infrastructure Act of 2002 (PPEA)
• Innovative, risk-sharing partnerships
• Unsolicited proposals for major projects like
  tunnels, schools, jails, and data centers
• Innovative financing models for significant
  expenses
• Supplier diversity
• Small, women- and minority-owned participation
• Consolidated contracts from all executive branch
  agencies
• Movement to enterprise agreements and licensing

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Contact Information

• Please visit http//www.vita.virginia.gov to
• learn more about our procurement efforts
• Lemuel C. Stewart, Jr.
• Chief Information Officer of the
  CommonwealthVirginia Information Technologies
  Agency
• lem.stewart_at_vita.virginia.gov
• [phone]