TAPE/#

Speaker

Comments

TAPE 9, A

004

Chair Dallum

Calls the meeting to order at 1:03 PM and opens the public hearing.

Consolidation of State Computing and Networking Infrastructure - PUBLIC HEARING

015

Mike Freese

Deputy Chief Information Officer, DAS.  Presents Computing and Networking Infrastructure Consolidation (CNIC) project update (EXHIBIT A).  Lists primary objectives of the project, and explains the “shared services” model. 

068

Freese

Continues with an explanation of the governing board and its responsibilities.

075

Freese

Cites the participating agencies and business case key findings.

113

Freese

States that consolidation should correct deficiencies and mitigate risk.

137

Freese

Explains that the Governor accepted the governing board’s recommendation to proceed but asked for a more aggressive plan to achieve maximize savings.

163

Freese

Points out that the project is in the architectural design phase now.  Discusses the detail design phase and agency implementation plan.

200

Freese

Reiterates that the “shared services” concept is new for Oregon state government, and there are staff concerns about loss of direct control. 

220

Freese

Comments that the current infrastructure is unsustainable and needs to be replaced. 

237

Freese

Concludes that clear and consistent leadership is the key to being successful.

251

Rep. Wirth

Asks about the percent of savings due to reduction of fulltime equivalencies due to consolidation. 

260

Freese

Replies that an estimated 70 percent saving in personnel costs is expected.

273

Chair Dallum

Requests a more detailed plan and flow chart for implementation.  

284

Freese

Responds that a detailed plan is available on the internet.

295

Rep. Krummel

Requests a further presentation from the project manager.

330

Chair Dallum

Requests a paper copy of the plan and copies for Rep. Burley and Rep. Wirth.

341

Jessica Stevens

Organizer for SEIU Local 503.  Indicates that concerns stem from lack of information.  Refers to establishment of work groups to address employee issues.

350

Stevens

States that there are questions about the contractor’s capabilities and reputation.

395

Stevens

Continues with questions about the physical structure of the data center and the number of employees needed to maintain the new system.

406

Stevens

Raises concerns about which workers will be affected and accomplishment of agency day–to-day business. 

TAPE 10, A

035

Stevens

Concludes with concerns about the lack of participation by information technology staff.

043

Dennis Green

Assistant Internet Administrator, Employment Department, representing SEIU.  Expresses concern about the lack of a solid business case at this time.

074

Green

Emphasizes the need for answers on specific positions affected so the appropriate tools are provided to train those people.   

113

Rep. Wirth

Asks what kind of training could be provided now for a quick response team.

127

Green

Responds that contact has been made with the dislocated worker program for available funds for training and retraining.    

146

Rep. Wirth

Inquires if there is agreement on the figures presented regarding reduction of personnel .

152

Green

Replies that an attrition report identifies the number of anticipated retirements in the next one to five years.  Raises the question if the same cost savings can be realized through attrition versus lay-off. 

169

Rep. Wirth

Requests clarification on how better services at lower cost can be accomplished. 

184

Green

Responds that those numbers are not available.

193

Stevens

States that it is unknown at this time which workers will be laid off, so there is a need to work with management to figure out the needs and develop a plan.

207

Rep. Krummel

Asks when the information sharing group will meet.

211

Green

Explains that there are two committees being formed:  a conglomerate of technical work groups specializing in architecture networking and a peer communications work group. 

249

Rep. Burley

Expresses concern about the business plan.  Asks if it will address specific concerns.

256

Green

Replies that the business plan gives a complete picture of what will happen; however, the scope is a moving target. 

297

Rep. Roblan

Follows up on Rep. Burley’s question.  Asks if there is an opportunity for the work groups to provide input into the business plan.

305

Green

Responds that the technical work groups will be focused on their facet of the project so don’t know if that will help with the business plan.

313

Rep. Wirth

Asks if the estimated $5 million annual cost savings and the one-time investment of $20-25 million for the project have changed.

334

Green

Explains that $20 million was approved by the Emergency Board for construction of the facility and $5 million for security.  Says they have not seen specifics for the anticipated $5 million savings.

349

Rep. Wirth

Requests clarification, that different numbers have not been provided.

350

Green

Responds, that is correct.

351

Rep. Roblan

Asks if the COBOL people can get the necessary training and if they have seen the charts that explain the shifts and needed skills.

370

Green

Explains that they have seen what kind of functions will be needed in the data center but haven’t seen details.

387

Rep. Roblan

Comments that the charts don’t contain numbers.

393

Rep. Krummel

Raises question about comments that Accenture has never done this type of contract before, and is curious about concerns about combining many different systems into one center.

TAPE 9, B

014

Freese

Believes the issues raised have been answered, and a legislative briefing will soon be available to the members.  Reports that Accenture has performed projects as complicated as this one. 

045

Freese

Explains the vendor solicitation process. 

056

Rep. Burley

Asks why the detailed implementation plan and final business case have not been completed. 

067

Freese

Responds that the original plan was completed, but the governor requested acceleration so a revised timeline was prepared.

087

Rep. Wirth

Asks if applications experts are in-house experts, vendor experts, or a combination.

097

Freese

Replies, a combination.

110

Chair Dallum

Closes the public hearing and adjourns the meeting at 2:05 p.m.