Recent IT Failures Cost State $259M
SA: …The state attorney general’s office in September filed a lawsuit alleging the information technology consulting company Ciber Inc. defrauded the Transportation Department in a failed effort to set up a new financial management computer system for the state Highways Division….
Another expensive computer controversy involved the Hawaii Health Connector, which spent $87 million in federal funds on its own computers and related consulting costs to build a system to process health insurance applications under the national Affordable Care Act, or Obamacare….
As part of the continuing fallout from the Health Connector shutdown, the state has agreed to pay up to $26 million more to contractor KPMG LLP to add new functions to the state’s KOLEA system that are needed to comply with the Affordable Care Act.
Yet another well-publicized computer contract controversy involved the state Department of Taxation’s agreement with CGI Group Inc., which was paid $87.5 million to install what state officials now describe as an outdated computerized tax collection system.
In a new effort to modernize and improve tax collections, this year the state signed a second, entirely new $59 million contact with another company to modernize the tax system. Ige said that newest tax modernization contract was used as a pilot project to test out the new system of increased oversight for IT projects….
read … Cascade Failure
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IGE ADMINISTRATION STRENGTHENS IT PROGRAM GOVERNANCE
News Release from Office of the Governor, December 10, 2015
HONOLULU — Gov. David Y. Ige and Chief Information Officer (CIO) Todd Nacapuy today announced a new, mandatory governance process administered by the CIO-led Office of Enterprise Technology Services (ETS), to ensure success for State of Hawai‘i information technology (IT) programs and projects.
“Proper governance outlined by the Office of Enterprise Technology Services will ensure that tax-payer funds for IT development and modernization programs will be subject to an efficient planning review and approval process,” Gov. Ige said. “The goal is to provide the essential state oversight necessary so that intended objectives are achieved and positive return on investment is realized for the people of Hawai‘i.”
Under the IT governance process, projects must pass several review “gates” during four key phases:
- pre-initiation (concept);
- planning; and
- contract execution and implementation.
At each gate, prerequisite documentation will be required for an investment or project to be approved, denied or deferred by a reviewing body before proceeding to the next phase. This graduated approach provides multiple review points for IT investments and projects, from inception through completion.
“The IT governance process has been set up to promote efficiency and accountability, as well as to help us make smart, informed and coordinated decisions about our IT investment portfolio that will incorporate strategic goals and objectives, leverage value, and mitigate risk,” Nacapuy said. “In consultation with state agencies, our IT governance team has developed a strong process based on industry best practices to provide appropriate oversight and to maximize opportunities to leverage resources to improve and enhance state business operations.”
The process will also require that state-executed contracts include all necessary functional and technical requirements, including measurable performance delivery metrics in order to approve and remit contract payments. Should the contract delivery metrics not be met as determined by the designated state contract administrator, the state will reserve the right to withhold payment delivery due to insufficient performance.
Initially, projects subject to the new governance requirements will include:
- IT development and modernization projects identified under Act 119, Section 41, Session Laws of 2015 (the General Appropriations Act of 2015) or any future related legislation or budget bills;
- IT projects that require technology resources estimated at $1 million or greater; and
- Enterprise modernization projects identified by the CIO, typically those that will leverage business and operational efficiencies and benefits for multiple departments or agencies.
Overseeing implementation of the IT governance requirements will be newly hired IT Governance Officer Todd Omura, who will report to the CIO. Omura brings extensive experience, knowledge and expertise gained as an enterprise asset management consultant, researcher, and economist.
Before joining ETS in November 2015, Todd Omura worked as an enterprise asset management consultant specializing in IT solutions. Prior to that, he was a research fellow of the nonprofit Logistics Management Institute, conducting life-cycle benefit and cost analyses as well as independent verification and validation (IV&V) of enterprise applications and systems for various government clients. He also served as an economist for the U.S. Army Corps of Engineers, managing the development, fielding, testing and maintainance of the economic analysis software system for the Department of Defense and other agencies’ facility construction projects. He earned his juris doctorate from the University of San Diego School of Law and a bachelor’s degree in economics from the University of California, Davis.
About the Office of Enterprise Technology Services
Shortly after taking the technological helm for the state, CIO Todd Nacapuy announced the initiation of discussions to consolidate the Information and Communication Services Division of the Department of Accounting and General Services and the Office of Information Management and Technology. Pending completion of the formal reorganization, the two agencies have already begun working as one cohesive team as the Office of Enterprise Technology Services (ETS), led by the CIO and his executive team. ETS priorities include IT Workforce Development, IT Governance, Enterprise Shared Services, Enterprise Programs and Projects, Open Government, and Cyber Security.
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