018-030 ITS Director Approval & ITS Board Approval of Procurements

018-030 ITS Director Approval & ITS Board Approval of Procurements Mississippi Code Annotated, Section 25-53-5 (k), requires that contracts for information technology purchases be approved by the ITS Board. The Board is authorized to delegate this approval to the ITS Executive Director for projects costing less than a specified amount. The ITS Board is charged in state statute with the responsibility for maximizing the use and benefit of information technology by the agencies, boards, commissions, and public universities of the state. To address this directive, the ITS Board, during state fiscal year 2004, outlined a plan to redirect its focus to place more attention on strategic technology initiatives and to be more involved in the planning stages of mission-critical projects. The ITS Board expressed its intent to increase its ability to impact the responsible use of scarce technology dollars for more effective solutions that leverage state infrastructure investments and promote technical compatibility and coordination among agencies and public universities. As an important component of this redirection of its role, the ITS Board revised the content and format of board meetings. As the Board shifted its focus from the approval of contract awards at the end of a procurement process to the review, analysis, and approval of strategic technology initiatives, the Board set new thresholds for approval of procurement projects by the ITS Executive Director. With fewer procurement project presentations, the Board will have time to work with ITS and ITS customers on strategic planning, best practices, and leveraging the state’s investment in enterprise technology resources. Prior to presenting a project to the ITS Board for approval, agencies must be incompliance with the Enterprise Security Policy and have obtained an IT Security Risk Assessment within three years of the date of the procurement presentation to the ITS Board. For more information on the IT Security Risk Assessment and the State of Mississippi Enterprise Security Policy, please visit the Information Security page of the ITS website at http://www.its.ms.gov/Services/Pages/services_security.aspx. A business case must be completed on all IT projects requiring ITS Board Approval. ITS has developed an IT Project Business Case Workbook to assist agencies in preparing the business case. Other advanced planning documentation such as a grant application might be substituted for the Business Case if it provides the necessary justification for the technology project. Please work with the IT Planning Coordinator at ITS to determine if the documentation may be substituted. Business case documentation may be found on the ITS website at http://www.its.ms.gov/Services/Pages/Agency-IT-Planning.aspx. For more information or assistance, please contact the IT Planning Coordinator at ITS. Due to the importance the Board places on technology planning, the new Director Approval thresholds do not apply to agencies without approved technology plans. ITS Board Approval and Reporting Requirements/ Director Approval Thresholds Effective July 2004 Board Approval Requirements for Agencies with approved IT plans and for IHLs Director Approval Thresholds Procurement Category Board Approval Required if Total Project Lifecycle Cost is Greater Than: Default $1,000,000* Manufacturer Maintenance No limit: Board approval not required Bureau of Buildings Projects No limit: Board approval not required Consulting Services: Includes all projects that include either 'body shop' or deliverable-based technology consulting, other than incidental services provided in conjunction with another acquisition. $500,000* Projects identified by Board, ITS Director, ITS staff, and/or customer agency staff for special consideration: These projects will be identified at the direction of the ITS Board. The ITS Board may determine focus areas based on Enterprise Architecture initiatives, analysis of agency IT plans, and continued assessment of emerging technologies and opportunities for interoperability and leveraging state IT infrastructure investments. Board input and/or approval required Board Approval Requirements: for Agencies without approved IT plans Default $250,000 Board Reporting Requirements Consulting Services Semi annually: Total consulting services approved, by agency, with list of individual CP-1s Annually: IT PINS by agency: filled and vacant, with salaries IT PINS by position across all state agencies *Note: The ITS Executive Director only approves state agency projects with a lifecycle cost above $250,000 if those projects are in the current technology plan on file with ITS. Approvals by the ITS Executive Director of projects costing more than $250,000 are designated "Director Approved Planned Purchases." The CP-1 Acquisition Approval Documents for these procurements contain the project number from the agency's IT plan and have special language documenting that the acquisition was authorized under the Director Approval Planned Purchases Procedure. The total project lifecycle cost is used to determine whether a contract can be approved by the ITS Executive Director ('Director Approval') or must be submitted to the ITS Board for approval (see 005-400 Terms: Lifecycle cost). Because there are many types of projects and associated payment models and because contracts are frequently modified over the life of a project, the table below has been developed to describe situations in which ITS Board approval would be required. The table is not exhaustive. A customer who is uncertain whether ITS Board approval is required for a specific procurement is encouraged to discuss the procurement details with the ITS Technology Consultant assigned to the project after the request has been submitted. Type Contract: Board Approval Required if: (1) Initial: Single Phase The total initial and ongoing costs (maintenance, support, annual license fees, etc.) to be paid to vendor(s) for the projected lifecycle of the technology exceed the Director Approval threshold. (2) Initial: Multi-Phase The total cost of the initial phase is less than the Director Approval threshold, but the RFP/LOC included an option for the contract to continue for subsequent phases at the State’s discretion, with the vendor providing a cost proposal for the next phase as a deliverable in Phase I; the total cost of the initial phase and subsequent phases can reasonably be expected to exceed the Director Approval threshold (3) Modification/continuation: Amendment or change order to ongoing project a. Cost increase for the amendment or change order is above the Director Approval threshold; or b. Cost increase for the amendment or change order is less than the Director Approval threshold, but the new project total is above the Director Approval threshold, and there has been no previous Board approval for the project; or c. Cost increase for the amendment or change order is less than the Director Approval threshold; the project was approved by the Board; the sum of changes since the last Board approval exceeds the Director Approval threshold