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New Investment Proposals
The goal of an investment proposal is to bring together in one
place and at one time all the necessary documents to educate, justify, and
support a decision by the Executive Information Technology Investment Review
Board (EITIRB) whether or not to go forward an investment. We also recommend
that a short presentation be developed that may be given to the EITIRB by the
functional proponent of the system, when soliciting approval.
The investment proposal should address the following
areas:
The 3 "Pesky" questions - First proposed in
the Raines Rules these questions are:
- Does the investment in a major capital asset support core/priority mission
functions that need to be performed by the Federal Government?
- Does it have to be undertaken by the requesting agency because no
alternative private sector or government source can more efficiently support
the function?
- Does the investment support work processes that have been simplified or
otherwise redesigned to reduce costs, improve effectiveness, and make maximum
use of commercial, off-the-shelf technology?
Business Case - Provide any appropriate background or historical
information that would provide the context for the proposal, followed by the
business rationale. The arguments should be advanced that would answer the
question: "Why do we need this project, system, or initiative?"
Requirements Definition and Analysis - Present the documentation of
the functional and technical requirements for this system are, as well as the
process that was used to develop them. Provide the results of any analysis that
was performed. Discuss any architectural considerations addressed.
Benefits - This section should detail and quantify the benefits that
would accrue to the users. There may also be non-quantifiable benefits that
should similarly identified. This should be done on a life-cycle basis.
Costs - This section should detail and quantify the costs and
alternatives consider for the proposal. This should also be done on a
life-cycle basis. There may be different cost models depending upon the style
of implementation. These costs should be inclusive of all hardware, software,
personnel, etc., including any necessary interfaces or feeder systems.
Benefits/Cost Analysis - An analysis that balances
the benefits against the costs should be performed. Intangibles should be
addressed as well. The BCA should be augmented by other indicators such as
payback period, net present value, return on investment, internal rate of
return, and the like.
Performance Goals/Measures - The formalized goals for the system
should be identified, as well as the measures and performance indicators that
will be used to assess the success or failure of the IT investment to attain
the goals. These should address, cost, schedule, and performance. A description
of how these will be collected and tracked should be included. Among the
questions to be answered by the measures would be: How will one know how the
investment is affecting the attainment of the goals?
Business Process Reengineering - Raines Rules requires that before
new systems are fielded that the business process owners simplify or otherwise
redesign their existing processes before they invest in new IT to support the
process. The results of any work process redesign or BPR activities should be
presented.
Independent Verification & Validation - It is OCIO policy that
all major investments contain a plan for I V & V activities at critical
junctures of the life cycle. The plan for the use of I V & V activities
should be presented. Describe the results of any I V & V's that have
been done to date.
Project Management - The approach taken for management of the project
should be discussed. The manner in which cost, schedule, and performance will
be monitored and tracked should be discussed. A chart showing the major
milestones throughout the life cycle should be a part of the project management
plan.
Architecture - The key design features and the proposed architectural
aspects of the investment should be presented from an end-to-end perspective,
including the telecommunications involved. Graphical depictions are helpful
here.
Funding - The sources of funding that will support the investment
throughout its life cycle should be identified.
Risk Management Plan - Provide the documentation that
describes the plan for identifying and mitigating risks associated with the
investment.
Security Plan - An evaluation of the security issues relative to the
proposed investment should be presented along with a plan for addressing them.
Acquisition Plan - The procurement or acquisition strategy should be
discussed, including the use of modular design, performance based contract, and
the sharing of risk between the Government and the Contractor. The use of pilot
projects, phasing, or prototypes should be examined.
Of course, this brief description of the areas that need to
be addressed does not tell the complete story about what should be in any
particular area. The publication entitled "ROI and the Value Puzzle," (Adobe PDF format -- going off-site) recently issued by the Federal CIO Council,
goes into depth about many of these areas, and what the critical issues are that
should be addressed in each.
 http://www.ocio.usda.gov/cpic/invest_proposals.html
Last Modified:
05/17/2007
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