Information Technology Authorization Committee

Special Public Meeting

Wednesday, May 12, 2004

2:30 – 4:30 p.m.

100 North 15th  Avenue, #300, Phoenix Arizona

 

Minutes

Present

 

 

 

David K. Byers

Dawn Chicky

Al Crawford Jr.

Supreme Court 

Private Industry

Private Industry

Chris Cummiskey

Rod Lenniger

Senator Dean Martin

Stephen Owens

Steve Peru                                 

Anthony Rodgers

 

GITA

Private Industry

State Senate

Agency Director

Local Government

Agency Director

 

Absent

 

 

Dr. Bill Lewis

State Government – Joe Askins attending

Richard Stavneak

Kim Snyder

 

JLBC – Shelli Carol Attending

Private Industry

Call to Order at 2:30  p.m. by Chairman Chris Cummiskey

 

Director’s Report                                                                                       
                                                                                               

Pursuant to A.R.S. 38-341.01(B, minutes of the Information Technology Authorization Committee are recorded by tape recorder.  Taped minutes are maintained permanently in the GITA office.  Public access and review of ITAC minutes are available by appointment Monday through Friday during normal business hours.  Please contact Margaret Mueller at 364-4770 to arrange for an audit of the tape-recorded proceedings.

 

ADOA Telecommunications Privatization

Request for Proposal (RFP) and Executive Summary

Frank Somers, GITA Oversight Manager

ADOA – Betsey Bayless, Director

ADOA – Andre Briere, Director, Telecommunications Programs Office

 

Information Item – No action.

 

 

 

 

 

ITAC Minutes – Special Meeting May 12, 2004

Page 2                                                              

 

Consideration of ADOA RFP and Executive summary as an Action Item

For ITAC Approval, Approval with conditions or Disapproval

Frank Somers, GITA Oversight Manager

 

The RFP published by ADOA/SPO is significantly different from the original RFP drafted by GITA and agency stakeholders, and approved by ITAC and JCCR.  There are also a number of similarities.  The ADOA RFP is designed to yield the same result as the GITA RFP—namely implementation of privatized telecommunications to improve service and reduce State costs.

 

ADOA explains changes made to the RFP as necessary to address procurement, business and financial concerns.  Procurement issues relate to the elimination of exclusionary provisions that could invite vendor protest.  Also the scope was broadened to allow privatization opportunities beyond a facilities management arrangement.  ADOA made other changes to facilitate contract management and administration by the Telecommunications Project Office.  And finally, elements were included to enable ADOA to recoup capital expenditures and to pay for other ADOA activities.

 

There are valid arguments on both sides whether or not the ADOA changes are necessary and justified.  The situation is that the ADOA RFP has been published and the original GITA RFP has been set aside. 

 

ITAC may elect to disapprove or not act on the ADOA Executive Summary and RFP at this time.  If no action is taken any feedback given by the Committee will not be binding on ADOA.

 

HB 2533 set forth a 120 day timeline for procurement and contract award.  The law requires ITAC to review the successful bidder’s proposed contract and approve or disapprove it. 

 

Since the law requires ITAC to render the final decision on privatization, and no contract can be awarded without ITAC approval, it is GITA’s recommendation to the Committee to enable the process to move forward by considering the ADOA Executive Summary and RFP as an actionable item.

 

GITA recommends an Approval with Conditions of the Executive Summary and RFP.  The Action Item provided to the Committee contains proposed conditions.   

 

Motion Approved.

 

 

 

 

 

 

 

ITAC Minutes – Special Meeting May 12, 2004

Page 3                                                              

 

Approval, Approval with Conditions or Disapproval of the ADOA

Privatization RFP and Executive Summary

Frank Somers, GITA Oversight Manager

ADOA – Betsey Bayless, Director

ADOA – Andre Briere, Director, Telecommunications Programs Office

 

Motion Approved with Conditions as follows:

 

1.      The ADOA Executive Summary represents a clarification and explanation of the intent of the ADOA Privatization Request for Proposal.  As such, it must be included in the procurement as an attachment and related provisions of the RFP must be amended, as necessary, to be consistent with the Executive Summary, including inclusion of the Roadmap approved by the Committee.

 

2.      Execution of a State contract for privatized telecommunications is subject to ITAC review and approval under HB 2533.  After vendor proposals have been evaluated and ADOA has selected a Best and Final Offer, ADOA staff must present the following confidential information to the Committee:

 

·        A list of evaluators including name, title and agency represented;

 

·        A description of evaluation criteria and how the offerors, including the potential awardee, were rated in regard to each criteria;

 

·        A summary of all proposals received and an explanation of why the Procurement Officer believes the potential awardee is the best selection;

 

·        A side by side Cost/Benefit Analysis between current/anticipated total costs of ATS operations to the State (and all impacted agencies) and anticipated costs (State, outsourcer and other) if the proposed contract is awarded,  including operating costs, savings and total cost for each year of the contract (and any optional extension terms). Costs must include all costs, including Teleprocessing Project Office (TPO) costs for project management and for functions that ADOA is retaining, as well as costs for third party expenses and anticipated capital expenditures expressed as cash outlay or lease-to-own costs.  Savings may result from anticipated lower rates, reduced labor costs, elimination of duplicated services, etc.;

 

·        A brief summary of the selected offeror’s Method of Approach required by the Special Instructions of the Solicitation, to include their understanding of the Scope of Work and Requirements, proposed implementation and transition plan, their approach to planning and managing the implementation, a description of how the offeror will handle current State employees, their plan to build a converged backbone network, their philosophy on external benchmarking, their methodology used to develop an annual operating plan, their approach to disaster recovery planning, and their approach to service level management including damages and incentives;

 

ITAC Minutes – Special Meeting May 12, 2004

Page 4                                                              

 

 

·        A list of personnel involved in the implementation and management of privatized telecommunications including job descriptions, roles and responsibilities;

 

·        A description of the exit strategy including potential buy-out costs and any other potential liabilities so that a risk analysis may be performed.

 

·        Recommendation from ADOA/SPO regarding whether they believe award of the contract is in the State’s best interests and reasoning for such recommendation.

 

The ITAC anticipates interim status reports from ADOA staff, and delivery of the above noted information on or about August 4, 2004. 

 

Meeting Adjourned at 4:00 p.m.

 

 

 

5/14/04