What is PPEA?
PPEA is the Public-Private Education Facilities and Infrastructure Act. It was passed in 2002 by the General Assembly to allow agencies, institutions, and localities to form partnerships with the private sector. Through these partnerships, the public and private sectors work together to complete major projects, like building new schools and jails, to serve the public interest. The law was amended in 2003 to include information technology (IT) infrastructure projects, like building new data centers.
How does PPEA work?
Through the PPEA, the private sector can submit unsolicited proposals to any agency, institution, or locality in the Commonwealth. The proposed projects should serve the public interest, such as improved services. It is up to the public entity to determine whether there is a need for the project, whether private sector involvement will be a timely and cost-effective way to implement the project, and whether to reject the proposal or accept it for further review and consideration. The Office of the Secretary of Technology has published Model Procedures to guide the PPEA review process.
What are some examples of successful public/private partnerships in the Commonwealth?
There are many examples of successful public/private partnerships in Virginia. Here are a few:
Virginia Department of Taxation partnered with CGI-AMS to reengineer and modernize its business processes and operations through the use of technology, including Web-enabling. As a result, the Tax Department has improved services to taxpayers, introduced new customer services, improved operations, generated savings, and provided a foundation for future performance and service enhancements.
Virginia Department of Transportation (VDOT) has used the Public-Private Transportation Act of 1995 to complete major road and bridge projects. The Pocahontas Parkway, including the Veteran's Memorial Bridge over the James River, was constructed in 2002 through a public/private partnership, as well as improvements to Route 288 in the Richmond area and Route 28 in Loudoun County. The PPEA is based on the Public-Private Transportation Act.
Department of General Services is currently using the PPEA as a vehicle for completing the Capitol Square Improvements projects. This is a series of renovation and restoration projects to preserve the Capitol, the Old State Library & Archives, the Old Finance Building, and the Washington Building.
How does PPEA benefit VITA and the Transformation Effort?
The focus of the PPEA is to establish a true partnership, where each partner shares its assets, strengths, and capabilities, as well as the risks and rewards of the undertaking. Doing Transformation of IT in the Commonwealth successfully-the actual consolidation of hardware and software and possible realignment and relocation of staff-requires much upfront funding. The private sector can propose innovative financing solutions to pay for major projects, such as leasing arrangements, so that Virginia doesn't have to provide all the upfront funding. The Tax Project, for example, was valued at over $122 million. CGI-AMS provided the upfront funding to pay for the project, which it earned back through a benefits-sharing program.
What do potential partners bring to the table?
In addition to innovative funding arrangements, our potential partners bring other desirable traits to the table, including:
Innovative ideas for solving our business problems and providing better services to citizens and customers.
Access to state-of-the-art capabilities and technologies.
Expertise and ability to bring major projects to successful completion and experience with similar initiatives.
Ability to bring resources to bear for the benefit of citizens and customers of the Commonwealth.
What is Virginia trying to accomplish in technology with the PPEA?
Virginia wants to use PPEA in its approach to facilitate Transformation of IT in Virginia and help Virginia become the best-managed state for technology management and provision of services to citizens. Virginia is trying to improve dramatically its services to citizens and to provide them anytime, anywhere to support Virginia citizens and the operations of customer agencies at a reasonable cost.
Where are we in the process?
We are very early in the overall process. If you think about the process of building a house, one of the first things you do is look for someone to help you (an architect or builder) and research what's available on the market based on your family's needs (location, size, cost, design options, quality of materials, etc.). VITA is in the initial process of finding one or more partners and gathering ideas and information from the private sector. Virginia is seeking an array of options so we can choose the design that is best for our employees, our customers, and our citizens. Just as with house-building, we have much exploring and negotiating to do before entering into a comprehensive agreement.
VITA posted four proposals to its Web site on June 1, 2004. Over the next 60 days, other private sector companies are invited and encouraged to submit competing proposals for consideration. Beginning in early August 2004, a review team made up of VITA staff, IT Investment Board members, and representatives from other agencies including the Departments of Human Resource Management, Planning and Budget, Accounts, General Services, and Treasury will review and evaluate the four existing proposals and any new proposals that may come in. At any time in the process, VITA can request changes to proposals or decide to consider only parts of proposals. VITA can also reject a proposal entirely at any time if it is not in the best interest of the Commonwealth to move forward.
What do the proposals that have been posted include?
The PPEA proposals are focused on significant improvements to the Commonwealth's information technology infrastructure and management in areas such as data center consolidation, enterprise systems, disaster recovery and backup, and customer service and support. The proposals present a wide array of options and ideas for efficiencies and cost-savings, including the construction of new data centers within and outside of Richmond and the outsourcing of some technology functions. Click on the "Proposals" tab above to review the executive summaries or access the full proposals.
What is a "managed service" or "outsourcing" and why is Virginia considering it?
Managed services are services that are managed and delivered in partnership with the private sector, typically performed by staff employed by the private sector partner at the direction of the staff employed by the public sector partner. Smart sourcing some functions where it makes sense and won't disrupt services is an option the Commonwealth will consider.
The MCI COVANET contract is an example of a successful managed service in Virginia today for the Commonwealth's voice and data needs, saving the Commonwealth more than $12 million over four years.
virginia.gov is another example of a managed service in Virginia for provision of eGovernment services to agencies, institutions, and localities, providing cost avoidance of at least $10 million annually to the Commonwealth.
The Commonwealth will only entertain proposals that take into account the welfare of the existing employees and also focuses on supporting and adding technology jobs in economically depressed areas of Virginia.
Is Virginia planning to outsource IT completely?
Absolutely not. Some IT activities are clearly inappropriate to be conducted by the private sector, such as governance and oversight of IT investments. Other functions will be considered on a case-by-case basis, based on the costs, risks, and benefits of outsourcing those activities. Outsourcing will only be considered in areas where the private sector can support better services to citizens than we can afford to provide or build on our own.
How do I submit a competing proposal?
Click on the "Proposals" tab from the menu above and click on "Instructions to Proposers." To be considered simultaneously with any of the proposals posted on June 1, the competing proposal must be submitted by 5:00 p.m. on August 2, 2004, with the $50,000 review fee.
Can PPEA proposals be submitted at any time, or is there a specific "call" period?
PPEA proposals can be submitted at any time. Any proposal received after August 2, 2004, however, will not be reviewed and considered with the four proposals posted on June 1. Proposals received after that date will be considered independently on a separate schedule.
What are the next steps in the PPEA process?
The review of PPEA proposals is a continuous process, in the sense that each proposal gets its own review. At present, we have four proposals under simultaneous review. Competing proposals are due by August 2. At that point, the proposals undergo "conceptual review." If the review committee recommends that any or all of the proposals move forward to Detailed Review, a "recommended course of action" will be developed and submitted to the Chief Information Officer (CIO). The CIO, in consultation with the Information Technology Investment Board (ITIB) will submit the recommended course of action to the Secretary of Technology. After consultation with the Secretaries of Administration and Finance, the Secretary of Technology may approve or reject the recommended course of action. After approval of the recommended course of action, the proposal moves into the Detailed Review phase.
If the Secretary of Technology approves the course of action and Conceptual Proposal, a Detailed Proposal will be solicited and, when received, subjected to close review by a broad group of stakeholders. If it approves, the proposal will be forwarded to the CIO and ITIB for approval for development and entry into negotiations for a Comprehensive Agreement. The agreement, when concluded, will be reviewed by the CIO, the ITIB, stakeholders at the Cabinet level, and the Office of the Attorney General before being approved by the Governor.
At any time in the process, VITA can request changes to proposals or decide to consider only parts of proposals. VITA can also reject a proposal entirely at any time if it is not in the best interest of the Commonwealth to move forward.
Who is reviewing the proposals?
The PPEA process calls for broad participation in the review, evaluation and selection of any PPEA agreement. The review teams for PPEA proposals received by VITA will include customer agency representatives, central service agencies (including the Departments of Human Resource Management, Planning and Budget, Accounts, General Services, and Treasury), cabinet representatives, members of the Information Technology Investment Board, and VITA staff. The review team will use a set of criteria, or desired attributes, against which to evaluate proposals in areas such as finances, approach, experience, and viability. The reviews will occur in two phases over the next seven months or so-the conceptual review phase and the detailed review phase. Click on "Attributes" in the menu above to read the criteria against which proposals will be evaluated.
In addition to the PPEA review team, the process calls for the Chief Information Officer, the IT Investment Board, the Cabinet, the Office of the Attorney General, and the Governor to evaluate proposals and ensure solutions fully support the Commonwealth's business needs and commitments. The Commonwealth has the option at any time during the review process to reject proposals in whole or in part and to pick and choose the elements that best serve the interests of Virginia and its citizens.
What is the Conceptual Phase?
The purpose of the conceptual phase is to identify potential projects and suppliers. During the conceptual stage, the review team considers the proposer's:
Qualifications and experience,
Anticipated public support or opposition, or both,
Project benefit and compatibility, and
Additional information and factors.
What is the Detailed Phase?
If a proposal is approved for further consideration under the Conceptual Phase, VITA requests the proposer to provide a more detailed proposal. The detailed review looks at the same six categories from the Conceptual Phase, in much greater detail, to identify one or more proposers to take to the next level: the Comprehensive Agreement.
What is the implementation process once an agreement is signed?
This really depends on the final structure of the Comprehensive Agreement; however, VITA does intend to apply the Project Management Standards and Guidelines to the projects that are generated from PPEA proposals.
How can I follow the status of PPEA proposals?
Status of the proposal review process will be posted on the VITA Web site and updated periodically.
Will the Enterprise Architecture PPEA proposals affect VITA employees?
The Enterprise Applications PPEA effort is separate and distinct from the Infrastructure PPEA being pursued by VITA. IBM happens to be a competitor for both deals. The EA PPEA, however, is owned and sponsored by the Secretaries of Finance and Administration. They will be responsible for negotiating the terms and conditions of any EA agreement. No impact upon the employment status of VITA employees is anticipated.
Who can I contact for more information?
Send your questions to firstname.lastname@example.org or contact Dan Ziomek at (804) 416-6017.