FDA IM Strategic Plan - Goal #3
Create Fiscal Opportunity via the efficient delivery of high value services that reduce costs and create reinvestment opportunities
Currently, information technology expenditures and overhead account for approximately 12% of the total FDA budget. The amount of value realized for this significant investment must be continuously monitored and optimized. Once the infrastructure has been optimized, by rigorously managing all technology overhead costs, it is estimated that 5-15% of new capability can be delivered annually without any increase in costs. This can be accomplished by the strategic re-investment of a portion of savings realized through cost optimization. Examples of cost savings opportunities are in infrastructure standardization, elimination of redundant infrastructure and computer applications, automation, a strategic balance of insourcing and outsourcing of resources and capabilities and vendor management, with this last opportunity being the largest opportunity by far.
3.1 Develop an improved financial model for IM investment and budgeting at FDA that increases transparency and provides an actionably direct understanding of technology spend at FDA by 2013
Evolve the current and historical allocation-based financial models with a more direct set of approaches that enable the understanding of fixed, variable and opportunity costs.
3.2 Develop a strategic vendor management strategy and capability in cooperation with the FDA contracting office and HHS by 2014
Current approaches to IT contract management and strategy are rate-limited by procurement personnel and based upon outdated technology practices, such as fixed-price approaches for technology delivery. These contracts can be greatly optimized via the application of strategic resources and up-to-date procurement strategies to yield the benefits of tens of millions of dollars saved annually.
3.3 Develop models that transparently connect the actual costs of all major services and the service level agreements for those services by 2014
By clarifying the actual cost of IM and mobility costs by service, customers can make informed choices that increase productivity, enable re-investment and create cost savings.
3.4 Implement effective program management methodology by 2013
By implementing a Program Management Office and HHS-mandated Enterprise Performance Management Life Cycle processes FDA can coordinate systems development and maintenance processes across all components of FDA’s information management activities.
MAJOR ACTIVITIES and TIMING
3.A Establish integrated portfolio management, Capital Planning and Investment Control (CPIC), and project execution and cost accounting
3.B Provide effective support for IM-related acquisitions through FDA contracting services and modernize procurement strategies
3.C Maintain excellence and transparency in fiduciary accountability and resource management and IM procurement services
3.D Implement standardized IM program management oversight, ensuring evaluation of projects at critical stages in their development
KEY PERFORMANCE INDICATORS
- Measurably closer alignment between actual spend and budget forecasts available transparently throughout the fiscal year
- Significant decrease in unplanned spending in fourth quarter
- Continuous cost optimization on all major services
- 20% overall decrease in spend on major projects via vendor management
- 10% decrease in annual support of commercial software licensing
- Sustained rate of technology upgrade that ranges from 5-15% annually
- Annual decrease in cost of data storage
PROGRESS TO DATE and SUCCESS STORIES
Establishment of the FDA OIM Program Management Office (PMO)
The FDA OIM PMO is the organizational component established by the CIO that defines and maintains the standards of IM program and project management processes within FDA. The PMO strategically addresses areas for process improvement and fills critical gaps in program coordination, collaboration, and program and project management across all FDA information management activities. The PMO strives to standardize and introduce repeatable processes and provide documentation, guidance, processes and metrics in order to achieve successful IM projects that are delivered in scope, on time and within budget constraints.
Field Office Infrastructure Refresh
The FDA has is currently completing its field IT infrastructure modernization supporting 220 FDA field locations including Office of Regulatory Affairs, Center for Drug Evaluation and Research and Center for Food Safety and Applied Nutritionfacilities. This effort includes network connectivity and monitoring for all field locations, implementation of Voice-Over-IP phone integration for medium-to-large sites, a streamlined enterprise-standard security patch distribution system, standardized file and print sharing for all field locations, and laboratory instrument backups for 13 field locations.
The number of file and print servers has been reduced through this effort from 110 prior to this effort to 27 today. Consolidation, virtualization and standardization have greatly reduced capital equipment and operations and maintenance costs for field IT infrastructure, achieving a Return on Investment (ROI) of nine months with recurring annual savings of $2.65M.
Lease buyout of CHDC equipment
Purchase of leased equipment in the FDA’s primary production data center in Ashburn, Virginia achieved a large savings and will greatly simplify the data center support contract re-compete process, as both data centers are now Government Furnished Equipment (GFE) rather than a mix of lease and GFE. Overall net savings of $9.1M was achieved.
Success Story: Project and Portfolio Management Tool Implementation
A central electronic tool capable of harnessing project and portfolio management information in a single central repository was implemented by OIM in 2010, with reporting capabilities to mine information that can be accomplished by anyone with access and privileges to these data. This tool is used to centrally manage and communicate project, contract, and investment data under the FDA IT Portfolio. Approximately $0.4M in savings has been realized to date.
Success Story: Contract Management Support
OIM continually reviews IT contracts to look for cost saving opportunities while maintaining or increasing benefits to FDA programs. A key area identified for improvement was Interagency Agreements (IAGs). IAGs can often save both time and money, but since we are paying another agency to perform contract management this is an area we review periodically to re-evaluate cost efficiency. We determined that bringing two of our IAGs ‘in house’ would provide cost savings and more effective vendor relationships. By partnering with the Office of Acquisitions and Grant Services (OAGS), the majority of Oracle and Microsoft services are now handled internally by FDA, saving over $0.4M in the first year, with an expected savings of over $2M over the next five years.
Success Story: Standard IT Project Support Tools
We have reduced costs around tools that support application development (Configuration Management, Test, Requirements, Issue tracking) by centralizing and standardizing the tools we and our contractors must use. The project teams now have a better knowledge base around these tools, and we can provide expertise to project teams that need support. We reduced total number of tools from 20 to 14, saving $0.25M per year in license and support costs, as well as additional cost avoidance through standardization.