Texas Health and Human Services Commission HHSC

1
Texas Health and Human Services Commission (HHSC)

• Enterprise Information Technology
• Cost Containment
• Request for Information 529-08-0214
• Vendor Conference May 14, 2008

2
Welcome

• Introductions
• Katherine Smith, Contact Administrator,
  Enterprise Contract and Procurement Services
  (ECPS)
• Gary Gumbert, Chief Information Officer (CIO),
  Enterprise Information Technology
• Housekeeping Items

3
HHSC Procurement Roles

• ECPS- Responsible for procurement activity
• Program- Responsible for project scope,
  requirements, performance, and results
• Legal- Questions/answers and legal activity

4
Vendor Conference Overview

• RFI Overview
• Questions Submittal
• Break
• Preliminary Responses to Questions
• Closing Comments

5
Enterprise IT Cost Containment

• RFI Overview
• Gary Gumbert, CIO
• HHSC Enterprise Information Technology

6
Health and Human Services Sandbox
Total TX State Budget FY 2007
68,749 Million
Fortune 500 (Revenue) 89. Travelers Companies at
25,090 M Texas HHSC at 24,997.2 M 90.
Massachusetts Mutual at 24,863 M
36 Health and Human Services
64 All Other TX Government Functions
7
Enterprise IT Goals

• Mission
• To deliver optimal value at an affordable cost by
  delivering customer focused IT services through a
  commitment to continuous improvement.
• Goals
• Manage and control IT to deliver value to HHS
  business areas.
• Provide quality, cost effective, and timely IT
  services.
• Optimize IT project and application portfolio to
  meet customer business needs.
• Optimize IT resources.

8
Enterprise IT Cost Containment

• Purpose
• HHSCs purpose in publishing this Request for
  Information (RFI) is to gather information
  regarding strategies and possible solutions that
  will assist HHS Enterprise Information Technology
  (EIT) Division in developing future Requests for
  Offer (RFOs).
• Mission Statement
• HHSC seeks Best Value solutions, the optimum
  combination of economy and quality that is the
  result of fair, efficient, and practical
  procurement decision-making and which achieves
  health and human services program objectives.

9
IT Strategies for 2004-2009
New IT Services Based Operations, Service
Delivery and Cost Model build on SOA / UCE
concepts that enable HHS Business
Transformation INTEGRATED BUSINESS / IT PLANNING
AND GOVERNANCE
Shared IT Infrastructure Based on Utility
Computing Standards (Data Center Consolidation)
Application Standardization and Consolidation
based on Service Oriented Architecture (SOA)
30
Global Information Standards HIPPA, HL7, HHSXML
(New), MITA etc
IT Infrastructure Outsourcing (Messaging and
Collaboration, WAN, VoIP)
Strategic Sourcing including Business Process
Outsourcing of Non-Core and Selected Core
Business Functions
70
Commodity Purchasing Model Based on a Services
Model
70
Application/Services Asset Re-Use across Business
Domains
10
Roadmap Considers MITA across Business and IT
Year 3 Enterprise Organized As BC (Based on New
BM)
Year 1 Piloting/Planning New Business Models (BM)
Year 2 Program enabled as New Business Components
(BC) and BM
Year 4 Programs Executing to New BM and Shared
BCs
Year 5 Real Time and Resource Optimized Enterprise
2004
2005
2006
2007
2008
2009
Year 1 Piloting/Planning New IT Model
Year 2 New IT Model by Program
Year 4 IT Executing to New BM and Shared BCs
Year 5 IT as a Service Oriented Organization
Optimized To Business Objectives
Year 3 IT Transitioning To New Governance Model
based on BM
11
Enterprise IT Cost Containment

• Mission Objective
• HHSCs objective for publishing this request is
  to develop strategies for solutions that will
• Contain costs related to contracts currently up
  for renewal
• Identify qualified vendors of potential
  solutions for information
• technology functionalities
• Create and coordinate efficiencies for systems,
  tools and
• applications which provide services
• Maximize and optimize state funding resources
  for program
• initiatives across HHS enterprise and
• Evaluate the cost-effectiveness of possible
  migrations and
• remediation for applications and tools.

12
Enterprise IT Cost Containment

• Scope
• HHSC EIT is requesting information it may use in
  a future RFO regarding cost-effective
  alternatives and solutions for current
  functionalities provided in these specific areas
  of interest
• Database - Oracle
• Desktop applications - Microsoft
• Human Resources PeopleSoft
• Middleware Tools / Application server IBM
  Websphere family of products

13
Enterprise IT Cost Containment

• Software support currently version N-1
• Functionality changes are not sufficient enough
  to press the upgrade
• Business is trapped by technology.
• Software pricing model
• Extend the support for tools
• End of life COTS solutions
• Software upgrades are driving hardware upgrades
• Contain costs of software upgrades
• Address these costs across the environments
• Industry addressing these issues
• Accessibility
• Customization
• Open source technology

14
Conclusion
Response to RFI Due June 2, 2008