Capital Planning & Investment Control for Federal Government
Challenge
For many government agencies, gathering accurate investment data is often an arduous and unsuccessful process. Agency data is often contained within several siloed and poorly integrated systems. Although many commercial project and portfolio data tools are available to government agencies, these tools often do not meet government agencies’ unique needs, leading government executives to purchase additional tools to complete their planning and investment responsibilities.
In addition to these challenges, recent legislation mandates improvements in operational and management performance. The Clinger-Cohen Act of 1996 requires federal agencies to focus on the results they are achieving through IT investments. Agencies must comply with the Government Performance and Results of 1993 (GPRA), requiring them to set goals, measure performance, and report their accomplishments. Improving the financial management and reporting practices in the federal government are covered in the Chief Financial Officers (CFO) Act of 1990. The Federal Acquisition Streamlining Act of 1994 (FASA), Title V, requires agencies to define cost, schedule, and performance goals for federal acquisition programs (including IT projects) and monitor these programs to ensure that they remain within prescribed limits. Government agencies must follow the Paperwork Reduction Act (PRA) of 1995, requiring agencies to use information resources to improve the efficiency and effectiveness of their operations and fulfillment of their missions.
Solution
The goal of the Microsoft Enterprise Project Management (EPM) Solution for Capital Planning and Investment Control (CPIC) is to provide consistent and visible decision-making capabilities for the management of all enterprise-level investments throughout the investment life cycle. Agencies can integrate and streamline data acquisition and management processes while enhancing management and reporting of investment performance and risk with the CPIC solution. Agencies can interact in a web-based environment supported by a central data repository to access consistent, reliable, accurate, and auditable investment information that is grouped into investment portfolios.
Support the CPIC Process
The CPIC solution enables accountability and good stewardship of taxpayer dollars through the seamless integration processes and activities. With data integrated in a collaborative environment, the select, control and evaluate phases in the CPIC process can be streamlined allowing the agency to identify investments that satisfy their strategic goals and eliminate duplication. Additionally, management can apply performance metrics that monitor expected return on investment and project alignment.
Sustain Mission Needs in the Select Phase
A new investment enters the CPIC life cycle through the Select Phase. In this phase, the agency makes decisions regarding which investments to fund based on strategic priorities. New investments are compared and prioritized against a uniform set of screening criteria and thresholds to determine whether they meet minimum funding requirements. The Select Phase helps ensure that the agency selects those investments that will best support the mission needs and helps to identify and analyze project risks and benefits before significant funding is committed.
Monitor the Portfolio in the Control Phase
Once the Selection Phase is complete, projects in the portfolio enter the Control Phase where they are actively managed and controlled. The Control Phase helps ensure that as a project is developed, it continues to meet cost, schedule, and performance expectations.
The Control Phase helps government executives to monitor the portfolio, make decisions and take actions to change the course of a particular project to improve the position of the entire portfolio. During the Control Phase managers can also correct any problems before significant resources or time are utilized.
Assess Performance in the Evaluation Phase
Once projects have been fully implemented and are in the portfolio review cycle, they enter a phase where actual versus expected project results can be applied as portfolio process improvements. The Evaluation Phase compares actual performance to estimates at the portfolio level in order to assess performance and identify areas where future decision making can be improved. Government project managers can identify ways to modify or improve the overall investment management process to maximize results and minimize risks. In the Evaluation Phase managers can assess how well the project met its intended objectives and consider methods to improve overall performance of investments.