Exhibit 300 (BY2009) - Modernized IT Infrastructure (EDCs), Centers for Medicare and Medicaid Services

1. Date of Submission:

2008-02-04

2. Agency:

009

3. Bureau:

38

4. Name of this Capital Asset:

CMS Modernized IT Infrastructure (EDCs)

5. Unique Project Identifier:

009-38-01-02-01-1050-00

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

Mixed Life Cycle

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

FY2006

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.

This investment was reviewed & approved by the Information Technology Review Board & currently is in the control phase of the CPIC process. The Enterprise Data Centers (EDC) are the foundation of the enterprise infrastructure that will support all CMS production Data Center Operations. They will provide the infrastructure and program management office to transition all CMS production operations currently performed by over 20 disparate Data Centers into 3 integrated Enterprise Data Centers. The privately owned EDCs will be operated by industry leaders. The EDCs will provide CMS with world-class application hosting centers & be capable of operating a redundant & scalable environment for mainframe & mid-tier computing. The EDCs will be geographically dispersed & designed for interoperability. With all production applications hosted in one of the EDCs, the Baltimore CMS Data Center will be used as a test and validation environment for all CMS applications. The EDCs will provide CMS the capability to deploy secure, scalable, high-performing applications on the Internet. They will combine "best practice" quality management systems with secure operations found in traditional data centers with the agility, access, & customer responsiveness required for successful e-Business. This investment also supports the development of a common enterprise infrastructure (CEI) that facilitates highly integrated operations (e.g., cyber security), seamless handoffs between EDCs & CMS, & common reporting & management in a distributed environment. The EDCs will provide CMS business owners with many benefits, including:1)Improving service levels to benes & providers through support of web-based services, better & timely access to quality data, relief of data center capacity constraints, integrated help desks & enterprise call centers, & more control over security & privacy; 2) Giving CMS business owners the ability to host applications in a controlled environment with more flexibility to respond to increased Medicare claims processing; 3) Providing the computing infrastructure for Medicare FFS Contracting Reform, realizing savings from economies of scale; 4) Improving the ability to timely implement new applications or make changes to existing applications across any EDC through the standardization of enterprise-level infrastructure; & 5) Establishing the EDCs in a structured way helps implement its legislative mandates & position CMS to meet its future business needs.

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.

yes

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

yes

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 investment supports improved financial performance by using competitive contracting programs to streamline the performance of operations & to assign functional responsibilities to the private sector where they can provide equal or better cost-effective services than the gov't. Performance requirements can be built into the contracts. The EDCs will be owned and operated by industry leaders. In addition, the investment assures better services at lower cost through e-government efforts.

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 3

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

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

Area	Percentage
Hardware	5
Software	5
Services	24
Other	66

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?

no

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

Name	Maribel Franey
Phone Number	410-786-0757
Title	Director, Privacy Compliance
Email	Maribel.Franey@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	13.953	20.561	33.053	11.038
Maintenance Budgetary Resources	0.000	0.000	0.000	0.000
Government FTE Cost	0.754	0.000	2.000	0.212
# of FTEs	4	0	2	2

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

no

3. If the summary of spending has changed from the FY2008 President's budget request, briefly explain those changes.

N/A

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	2006	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	22	19	11
2	2006	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	97%	97.5%	TBD
3	2006	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	12 cents	10 cents	10
4	2006	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	98%	98.5%	98.5
5	2007	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	19	10	14
6	2007	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	97.5%	98%	98
7	2007	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	10 cents	8 cents	9
8	2007	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	98.5%	99%	TBD
9	2008	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	14	10	TBD
10	2008	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	98	99	TBD
11	2008	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	9	5 cents	TBD
12	2008	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	TBD	99%	TBD
13	2009	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	TBD	4	TBD
14	2009	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	TBD	98%	TBD
15	2009	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	TBD	4 cents	TBD
16	2009	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	TBD	99%	TBD
17	2010	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	TBD	4	TBD
18	2010	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	TBD	99%	TBD
19	2010	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	TBD	4 cents	TBD
20	2010	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	TBD	99%	TBD
21	2011	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	TBD	4	TBD
22	2011	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	TBD	99%	TBD
23	2011	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	TBD	4 cents	TBD
24	2011	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	TBD	99%	TBD
25	2012	S.O. 1.3 - Improve health care quality, safety, cost and value	Mission and Business Results	Budget and Performance Integration	Number of FFS data centers	TBD	4	TBD
26	2012	S.O. 1.3 - Improve health care quality, safety, cost and value	Customer Results	Customer Satisfaction	Percentage of favorable customer surveys	TBD	99%	TBD
27	2012	S.O. 1.3 - Improve health care quality, safety, cost and value	Processes and Activities	Savings and Cost Avoidance	Cost per FFS claim	TBD	4 cents	TBD
28	2012	S.O. 1.2 - Increase health care service availability and accessibility	Technology	Availability	Percentage of production jobs completed on time	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 Modernized IT Infrastructure (Enterprise Data Centers)

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)?

yes

6.a. If yes, please describe.

This investment leverages: IT Infrastructure Optimization Line of Business.

1. Does the investment have a Risk Management Plan?

yes

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

2005-03-01

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

no

3. Briefly describe how investment risks are reflected in the life cycle cost estimate and investment schedule:

The contract and resulting task orders are performance based, with an award fee based on established SLAs and QPMs. Weekly technical meetings and monthly management meetings are held to ensure risks are identified early and mitigated.

1. Does the earned value management system meet the criteria in ANSI/EIA Standard 748?

no

2. Is the CV% or SV% greater than ± 10%?

no

2.b. If yes, explain the variance.

There are no negative cost or schedule variances to report.

2.c. If yes, what corrective actions are being taken?

No corrective actions are warranted for this investment.

3. Has the investment re-baselined during the past fiscal year?

no