Exhibit 300 (BY2009) - Centers for Medicare and Medicaid Services CMS, Medicare FFS IT Infrastructure

1. Date of Submission:

2008-02-04

2. Agency:

009

3. Bureau:

38

4. Name of this Capital Asset:

CMS Medicare FFS IT Infrastructure

5. Unique Project Identifier:

009-38-01-02-01-1030-00

6. What kind of investment will this be in FY2009?

Operations and Maintenance

7. What was the first budget year this investment was submitted to OMB?

FY2001 or earlier

8. Provide a brief summary and justification for this investment, including a brief description of how this closes in part or in whole an identified agency performance gap.

The project supports the Agency's core function - providing claim payments to beneficiaries per Title 18 and 19 of the Social Security Act - by providing a portion of the infrastructure that processes claims. IT supports the ongoing hosting of the Common Working File and support for the two Medicare Data Centers. The fee-for-service claims processing system environment is made up of several system applications (shared system software). The application s are supported by computer processing centers (known as data centers). Those data centers house the computer hardware and system software that allow the application code to process. The data centers provide the infrastructure that allows for the efficient and timely processing of the claims. It also provides the ability for the authorized fiscal intermediary and carrier personnel to connect from their desktop personal computer to the large mainframe computers housed at the data center in order to do real time inquiries of Medicare claims. The claims are processed in a network of 14 data centers throughout the continental United States. Three of those data centers are under two direct contracts with CMS. The two contracts are called Medicare Claims Data Center 1 (MCDC1, held by IBM) and Medicare Claims Data Center 2 (MCDC2, held by EDS). MCDC2 has two physical locations (data centers) in which Medicare claims are processed. These three data centers (two contracts) process approximately 1/3 (one third) of the total 1 billion annual Medicare claims. The other 11 (eleven) data centers are subcontracts held by the various fiscal intermediaries and carriers under Title XVIII. The focus of this exhibit are the two direct contracts that CMS holds (MCDC1 and MCDC2). This investment also includes the hosting costs of the Common Working File (CWF) that is located at CWF host site. The CWF is a nationwide processing system for validating Medicare claim payments throughout the United States. There are nine host-processing sectors. The nine sectors house localized databases, each servicing, Medicare Part A Intermediaries and Part B Carriers within defined geographic sectors. The project provides funding for ongoing operations until transition to the Enterprise Data Centers is complete. This investment assumes that all CWF processing will be hosted at an Enterprise Data Center by September 2008. It assumes workload at Medicare Data Centers trails off as Enterprise Data Centers begins.

9. Did the Agency's Executive/Investment Committee approve this request?

yes

9.a. If "yes," what was the date of this approval?

2007-06-26

10. Did the Project Manager review this Exhibit?

yes

11.a. What is the current FAC-P/PM certification level of the project/program manager?

Mid/Journeyman-level

12. Has the agency developed and/or promoted cost effective, energy-efficient and environmentally sustainable techniques or practices for this project.

no

12.a. Will this investment include electronic assets (including computers)?

no

12.b. Is this investment for new construction or major retrofit of a Federal building or facility? (answer applicable to non-IT assets only)

no

13. Does this investment directly support one of the PMA initiatives?

yes

If yes, select the initiatives that apply:

Initiative Name
Competitive Sourcing
Expanded E-Government
Financial Performance

13.a. Briefly and specifically describe for each selected how this asset directly supports the identified initiative(s)? (e.g. If E-Gov is selected, is it an approved shared service provider or the managing partner?)

This ongoing business operation is aligned with the Government-wide initiative of "Comp. Sourcing" by ensuring that services that can most effectively be performed in the private sector are subject to competition. Through the prudent use of direct data center contracts, CMS has continued to keep Medicare administrative costs low. Through Electronic Government CMS has improved productivity by using electronic transactions.

14. Does this investment support a program assessed using the Program Assessment Rating Tool (PART)?

yes

14.a. If yes, does this investment address a weakness found during the PART review?

yes

14.b. If yes, what is the name of the PARTed program?

2003: CMS - Medicare Program

14.c. If yes, what rating did the PART receive?

Moderately Effective

15. Is this investment for information technology?

yes

16. What is the level of the IT Project (per CIO Council's PM Guidance)?

Level 2

17. What project management qualifications does the Project Manager have? (per CIO Council's PM Guidance)

(1) Project manager has been validated as qualified for this investment

18. Is this investment identified as high risk on the Q4 - FY 2007 agency high risk report (per OMB memorandum M-05-23)?

no

19. Is this a financial management system?

no

19.a.1. If yes, which compliance area:

Not Applicable

19.a.2. If no, what does it address?

Data center processing services

20. What is the percentage breakout for the total FY2009 funding request for the following? (This should total 100%)

Area	Percentage
Hardware	80
Software	0
Services	20
Other	0

21. If this project produces information dissemination products for the public, are these products published to the Internet in conformance with OMB Memorandum 05-04 and included in your agency inventory, schedules and priorities?

n/a

22. Contact information of individual responsible for privacy related questions.

Name	Walter Stone
Phone Number	410-786-5357
Title	Privacy Office
Email	Walter.Stone@cms.hhs.gov

23. Are the records produced by this investment appropriately scheduled with the National Archives and Records Administration's approval?

yes

24. Does this investment directly support one of the GAO High Risk Areas?

yes

1. Provide the total estimated life-cycle cost for this investment by completing the following table. All amounts represent budget authority in millions, and are rounded to three decimal places. Federal personnel costs should be included only in the row designated Government FTE Cost, and should be excluded from the amounts shown for Planning, Full Acquisition, and Operation/Maintenance. The total estimated annual cost of the investment is the sum of costs for Planning, Full Acquisition, and Operation/Maintenance. For Federal buildings and facilities, life-cycle costs should include long term energy, environmental, decommissioning, and/or restoration costs. The costs associated with the entire life-cycle of the investment should be included in this report.

All amounts represent Budget Authority

Note: For the cross-agency investments, this table should include all funding (both managing partner and partner agencies).

Government FTE Costs should not be included as part of the TOTAL represented.

Cost Type	Py-1 & Earlier -2006	PY 2007	CY 2008	BY 2009
Planning Budgetary Resources	0.000	0.000	0.000	0.000
Acquisition Budgetary Resources	0.000	0.000	0.000	0.000
Maintenance Budgetary Resources	81.344	28.292	23.150	0.000
Government FTE Cost	0.623	0.000	0.000	0.000
# of FTEs	4	0	0	0

2. Will this project require the agency to hire additional FTE's?

no

Agencies must use the following table to report performance goals and measures for the major investment and use the Federal Enterprise Architecture (FEA) Performance Reference Model (PRM). Map all Measurement Indicators to the corresponding Measurement Area and Measurement Grouping identified in the PRM. There should be at least one Measurement Indicator for each of the four different Measurement Areas (for each fiscal year). The PRM is available at www.egov.gov. The table can be extended to include performance measures for years beyond FY 2009.

Row	Fiscal Year	Strategic Goal Supported	Measurement Area	Measurement Grouping	Measurement Indicator	Baseline	Planned Improvement to the Baseline	Actual Results
1	2005	S.O. 1.2 - Increase health care service availability and accessibility	Mission and Business Results	Health Care Administration	Operations and Maintenance Cost Savings	20%	20%	20%
2	2005	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Response Time	Reduce call abandonment rate	<6%	6%	5%
3	2005	S.O. 1.3 - Improve health care quality, safety, cost and value	Technology	Availability	Maintain efficiency and availability of systems	99%	99%	99.8%
4	2006	S.O. 1.2 - Increase health care service availability and accessibility	Mission and Business Results	Health Care Administration	Operations and Maintenance costs savings	20%	20%	20%
5	2006	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Response Time	Reduce abandonment call rate	5%	5%	5%
6	2006	S.O. 1.3 - Improve health care quality, safety, cost and value	Technology	Availability	Maintain efficiency and availability of systems	99.8%	99%	99.5%
7	2007	S.O. 1.2 - Increase health care service availability and accessibility	Mission and Business Results	Health Care Administration	Operations and maintenance cost and savings	20%	15%	TBD
8	2007	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Response Time	Reduce call abandonment rates	5%	5%	TBD
9	2007	S.O. 1.3 - Improve health care quality, safety, cost and value	Technology	Availability	Maintain efficiency and availability of systems	99.5%	99.5%	TBD
10	2008	S.O. 1.2 - Increase health care service availability and accessibility	Mission and Business Results	Health Care Administration	Operations and Maintenance	TBD	15%	TBD
11	2008	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Response Time	Reduce call abandonment rate	TBD	5%	TBD
12	2008	S.O. 1.3 - Improve health care quality, safety, cost and value	Technology	Availability	Maintain efficiency and availability of systems	TBD	99.5%	TBD
13	2005	Effective Management of Human Capital/Information Technology/Resources	Processes and Activities	Efficiency	Percentage of production jobs completed on schedule	95%	99%	98%
14	2006	Effective Management of Human Capital/Information Technology/Resources	Processes and Activities	Efficiency	Percentage of production jobs completed on schedule	98%	99%	98%
15	2007	Effective Management of Human Capital/Information Technology/Resources	Processes and Activities	Efficiency	Percentage of production jobs completed on schedule	98%	99%	TBD
16	2008	Effective Management of Human Capital/Information Technology/Resources	Processes and Activities	Efficiency	Percentage of production jobs completed on schedule	TBD	99%	TBD

1. Is this investment included in your agency's target enterprise architecture?

yes

2. Is this investment included in the agency's EA Transition Strategy?

yes

2.a. If yes, provide the investment name as identified in the Transition Strategy provided in the agency's most recent annual EA Assessment.

CMS Medicare FFS IT Infrastructure

3. Is this investment identified in a completed (contains a target architecture) and approved segment architecture?

no

4. Identify the service components funded by this major IT investment (e.g., knowledge management, content management, customer relationship management, etc.). Provide this information in the format of the following table. For detailed guidance regarding components, please refer to http://www.whitehouse.gov/omb/egov/.

Component: Use existing SRM Components or identify as NEW. A NEW component is one not already identified as a service component in the FEA SRM.

Reused Name and UPI: A reused component is one being funded by another investment, but being used by this investment. Rather than answer yes or no, identify the reused service component funded by the other investment and identify the other investment using the Unique Project Identifier (UPI) code from the OMB Ex 300 or Ex 53 submission.

Internal or External Reuse?: Internal reuse is within an agency. For example, one agency within a department is reusing a service component provided by another agency within the same department. External reuse is one agency within a department reusing a service component provided by another agency in another department. A good example of this is an E-Gov initiative service being reused by multiple organizations across the federal government.

Funding Percentage: Please provide the percentage of the BY requested funding amount used for each service component listed in the table. If external, provide the funding level transferred to another agency to pay for the service.

Row	Agency Component Name	Agency Component Description	Service Type	Component	Reused Component Name	Reused UPI	Internal or External Reuse?	Funding %
1	Identification and Authentication	Defines the set of capabilities that support obtaining information about those parties attempting to log on to a system or application for security purposes and the validation of those users.	Security Management	Identification and Authentication			No Reuse	4
2	Information Sharing	Defines the set of capabilities that support the use of documents and data in a multi-user environment for use by an organization and its stakeholders.	Knowledge Management	Information Sharing			No Reuse	1
3	Information Retrieval	Defines the set of capabilities that allow access to data and information for use by an organization and its stakeholders.	Knowledge Management	Information Retrieval			No Reuse	4
4	Data Cleansing	Defines the set of capabilities that support the removal of incorrect or unnecessary characters and data from a data source.	Data Management	Data Cleansing			No Reuse	1
5	Data Exchange	Defines the set of capabilities that support the interchange of information between multiple systems or applications; includes verification that transmitted data was received unaltered.	Data Management	Data Exchange			No Reuse	1
6	Computers / Automation Management	Defines the set of capabilities that support the identification, upgrade, allocation and replacement of physical devices, including servers and desktops, used to facilitate production and process-driven activities.	Asset / Materials Management	Computers / Automation Management			No Reuse	77
7	Change Management	Defines the set of capabilities that control the process for updates or modifications to the existing documents, software or business processes of an organization.	Management of Processes	Change Management			No Reuse	1
8	Configuration Management	Defines the set of capabilities that control the hardware and software environments, as well as documents of an organization.	Management of Processes	Configuration Management			No Reuse	1
9	Network Management	Defines the set of capabilities that monitor and maintain a communications network in order to diagnose problems, gather statistics and provide general usage.	Organizational Management	Network Management			No Reuse	9

5. To demonstrate how this major IT investment aligns with the FEA Technical Reference Model (TRM), please list the Service Areas, Categories, Standards, and Service Specifications supporting this IT investment.

FEA SRM Component: Service Components identified in the previous question should be entered in this column. Please enter multiple rows for FEA SRM Components supported by multiple TRM Service Specifications.

Service Specification: In the Service Specification field, Agencies should provide information on the specified technical standard or vendor product mapped to the FEA TRM Service Standard, including model or version numbers, as appropriate.

Row	SRM Component	>Service Area	Service Category	Service Standard	Service Specification (i.e., vendor and product name)
1	Network Management	Service Access and Delivery	Delivery Channels	Virtual Private Network (VPN)	ATT MDCN VPN
2	Configuration Management	Service Platform and Infrastructure	Software Engineering	Software Configuration Management	CA Endevor MVS
3	Computers / Automation Management	Service Platform and Infrastructure	Hardware / Infrastructure	Peripherals	DASD: IBM 2105-800; EMC 5700; EMC 8830; Amdahl SP300; Amdahl SP400. TAPE: IBM 3480-A/B22; IBM 3490 A20; IBM 3590-H1A/A14; IBM 3592-J1A; STK VSM3; STK 9310; STK 9840; STK 9490; STK 4480.
4	Network Management	Service Platform and Infrastructure	Hardware / Infrastructure	Network Devices / Standards	IBM 3745; IBM 3746; CISCO 2950-24
5	Information Retrieval	Service Platform and Infrastructure	Software Engineering	Integrated Development Environment	IBM CICS TS 390
6	Computers / Automation Management	Service Platform and Infrastructure	Hardware / Infrastructure	Servers / Computers	IBM CPU 2086-450; IBM CPU 2064-1C9
7	Change Management	Service Platform and Infrastructure	Software Engineering	Integrated Development Environment	IBM INFOMAN
8	Identification and Authentication	Component Framework	Security	Supporting Security Services	IBM RACF; CA ACF2
9	Data Exchange	Service Access and Delivery	Delivery Channels	Internet	IBM TCP/IP
10	Computers / Automation Management	Service Platform and Infrastructure	Software Engineering	Integrated Development Environment	IBM Z/OS;Tivoli Wrkld Schdlr&Netview;ACF/NCP&VATM,DSF;IBM ISPF;JES2,Tivoli Omegamon;SDSF;ICFRU;RMDS;TapeStckr;COBOL&Compiler;DFSORT;Ditto;High Level Assblr;REXX 370;VIPS ALGS;Syncsrt;Serena Comparex;SAS SAS/BASE;CA Optimizer;FileAid,Expediter&Strobe
11	Information Sharing	Service Access and Delivery	Delivery Channels	Internet	Sterling Commerce Connect Direct SNA
12	Data Cleansing	Service Interface and Integration	Interoperability	Data Transformation	Sterling Commerce Gentran; DOCSENSE Finalist

6. Will the application leverage existing components and/or applications across the Government (i.e., FirstGov, Pay.Gov, etc)?

no

1. Does the investment have a Risk Management Plan?

yes

1.a. If yes, what is the date of the plan?

2005-07-19

1.b. Has the Risk Management Plan been significantly changed since last year's submission to OMB?

no

1. Was operational analysis conducted?

yes

1.a. If yes, provide the date the analysis was completed.

2007-08-31

What were the results of your operational analysis?

Operational analyses have been performed to examine how close the investment has been achieving expected cost, schedule, and performance goals. The investment was found to be meeting expected performance and schedule goals within budget.