Software Portfolio Management Statement of Objectives.pdf

Software Portfolio Management Statement of Objectives (SOO)

1. BACKGROUND AND AGENCY MISSION

The Inflation Reduction Act (IRA) legislation provides the IRS with funding to modernize and transform IRS enterprise technology. In response, the IRS is undertaking numerous efforts to effectively plan for, use, and manage the influx of IT modernization funds.

Until the passage of the IRA, the IRS lacked the resources to bring our technology infrastructure into the current era. In addition, the inability to plan for stable funding led to a start-and-stop approach that did not allow for sustained progress. The multi-year nature of IRA funding will allow the IRS to successfully plan and deliver modern technology platforms that center around data and applications.

Strategy & Planning (S&P) collaborates with IT leadership to provide policy, direction, and administration of essential programs, including strategy and capital planning, comprehensive, integrated modernization planning, strategic planning and performance measurement, financial management services, vendor and contract management, requirements and demand management and risk management.

S&P consists of:

• Business Planning & Risk Management.

• Financial Management Services.

• Investment & Portfolio Control and Oversight.

• Strategic Supplier Management.

Strategic Supplier Management (SSM) supports IRS IT using an over-arching organizational concept of strategically managing IT acquisitions and vendors to maximize the IRS’ investment in key commodities, while simultaneously minimizing business risk. The primary goal of the SSM Division is to identify significant opportunities to improve IRS IT procurement capability by:

• Achieving greater transparency around organizational structures, roles, and responsibilities to ensure accountability.

• Committing resources to limit supplier advantage through competitive bidding processes, market research on rates, and internal staff training.

• Maximizing value realized from existing vendor relationships through end-to-end vendor lifecycle management.

Acquisition Portfolio Management (APM), a second major responsibility of the SSM organization, is a repeatable process built to support the strategic and technological needs of IRS IT. APM aims to identify the most critical areas on which IT shall focus acquisition activities, create an acquisitions portfolio that supports those objectives, and continuously evaluates the contracts that make up that portfolio to optimize spend, return on investment, and management results.

2. PURPOSE

Problem Statement - The IRS currently lacks the knowledge, expertise, and market information to establish and manage commercial software license agreements and licensing models that effectively and efficiently support enterprise-wide modernization initiatives and provide cost avoidance.

Technology improvements at the IRS must always be driven by what will improve customer service and enforcement and in a way that secures taxpayer information. The key dependency for many IT initiatives is the modernization of our core IT infrastructure and business processes to get the full value of the data we have.

This Statement of Objectives describes the objectives and outcomes the IRS requires to improve the utility of commercial software license agreements that enable IT modernization initiatives and maximizes cost efficiency.

The purpose of this acquisition is to obtain contractor services to establish and operate a Software Portfolio Management program that transforms how the IRS acquires commercial software, incorporates vendor management best practices, and optimizes cost avoidance.

The Software Portfolio Management program is essential to the delivery of the following Objectives and Initiatives in the IRS’ Inflation Reduction Act’s Strategic Operating Plan.

• Objective 4 – Deliver cutting-edge technology, data, and analytics to operate more effectively.

o Initiative 4.2 – Accelerate technology delivery.

o Initiative 4.3 – Improve technology operations.

o Initiative 4.4 - Continue to ensure data security.

3. SCOPE

Business Task Areas:

Establish and operate a Software Portfolio Management program that enables IRS modernization initiatives, transforms software acquisition, and maximizes cost avoidance.

• Develop a Software Portfolio Management plan that includes strategic goals and objectives, program governance, forecasting, business process improvement, risk management, and knowledge management.

• Establish performance goals, measures, and metrics to evaluate the overall cost efficiency, effectiveness of commercial software license agreements and licensing models.

• Draft acquisition package documents to implement the goals and objectives of the Software Portfolio Management program. Development and approval of acquisition strategies and software requirements are an IRS responsibility.

• Develop and refine standard operating procedures, to include business processes and a vendor management roadmap, for acquiring commercial software.

• Monitor & measure progress towards established performance goals, objectives, and metrics with a focus on cost avoidance and return-on-investment.

• Configure and maintain web-based portal within the IRS’ SharePoint instance that contains easy-to-access information on planned software license agreements, including terms & conditions, and prices that integrates with the current Software Asset Management Program portal.

Quality Assurance:

The contractor shall propose a draft Quality Assurance Surveillance Plan (QASP) as a component of their response to the SOO for the Government’s consideration. The QASP will be finalized through discussions prior to the contract award.

Transition: The contractor shall transition the Software Portfolio Management program’s procedures, tools, and business processes to Strategic Supplier Management or the incoming contractor at the end of the contract.

Primary work site – Contractor’s site.

Contractor Travel – Limited travel to IRS locations within the National Capital Region Primary Location - NCFB Service 5000 Ellin Road Lanham, MD 20706

4. CURRENT OPERATING ENVIRONMENT

The IRS has established a Software Asset Management (SAM) program. The program ensures that software licenses comply with license agreements, provides accurate and reliable information about IRS license supply and demand.

The current inventory of software agreements does not represent the end-state for the Software Portfolio Management program. It is provided as a starting point to assist with the establishment of the program and is to be included as a government-furnished Information (GFI).

The Software Portfolio Management program is not responsible for software asset management but should plan to use the SAM-provided data and information.

The IRS’ ability to comply with Federal mandates is currently limited in the following areas:

• Software licensing policy with goals and metrics that support cost avoidance and informed decision-making through improved vendor management.

• Software Portfolio Management procedures and processes that operationalize industry best practices.

5. OBJECTIVES

Software Portfolio Management program that transforms how the IRS acquires commercial software, optimizes cost avoidance, and incorporates vendor management best practices.

• Provide market intelligence of the commercial software marketplace, to include commercial cloud services, and software vendors to make well-informed business decisions that optimize cost avoidance.

• Identify and apply best practices in structuring software agreements that support IT modernization initiatives, including the application of risk, issue, and opportunity management practices.

• Operationalize market intelligence and best practices in new and updated software agreements.

• Provide and implement software vendor management practices, including financial analysis and assessments, that maximize cost avoidance and operational efficiencies.

6. DELIVERABLES/SCHEDULE:

Item No.

Deliverable/ Item Title Description Frequency Reference Delivery

Format Due By

1 Monthly Status Report

Monthly report documenting tasks and issues identified during the month

Monthly

Ref. SOO, Page 2, Section 5.

Scope/Business Task Areas.

Via email to

COR

10th business day of each month

Monthly/Technical Meeting Minutes/Reports

Detailed meeting minutes as requested and required.

As needed

Ref. SOO, Page 2, Section 5, Scope/Business Task Areas

Via email to

COR

Within 2 business days after meeting

3 Kickoff Meeting

Orientation briefing to introduce key task order participants, communication processes, roles and responsibilities, common understanding of task order requirements and objectives.

Once

Ref. SOO, Page 2, Section 5, Scope/Business Task Areas and Page 3, Section 7, Objectives

Via email to

COR

Within 5 business days of contract award

4 Quality Control Plan

Annual report documenting quality control procedures to ensure the delivery of quality services, quality

Once per base/option period

Ref. SOO, Page 2, Section 5, Scope/Quality Assurance

Via email to

COR

At kickoff meeting and 15 business days after each option period assurance measures and the method of accountability

5 Project Management Plan

Annual report documenting contractor’s plan and schedule to deliver professional services and deliverables.

Once per base/option period

Ref. SOO, Page 2, Section 5, Scope/Business Task Areas and Page 3, Section 7, Objectives

Via email to

COR

Within 15 business days of the kickoff meeting and 15 business days of each option period

Problem Notifications Report

Notification of schedule delays, assumptions upon which tasks were based, and all other perceived contractual issues, including proposed resolution

As needed

Ref. SOO, Page 2, Section 5, Scope/Business Task Areas and Page 3, Section 7, Objectives

Via email to

COR

Within 5 business days after issue is discovered

Deliverables (add IRS defined plans/deliverables)

As required per Task Order

Ref. SOO, Page 2, Section 5, Scope/Business Task Areas and Page 3, Section 7, Objectives

Via email to

COR

8 Transition Out Plan

Plan that facilities seamless transition from the incumbent to an incoming Contractor and/or GOVT.

Once per base/option period

Ref. SOO, Page 2, Section 5, Scope/Transition

Via email to

COR

business days prior to end of PoP

8. CONSTRAINTS

Development and approval of acquisition strategies and commercial software requirements are an IRS role and responsibility with contractor-provided advisory and assistance services.

Applicable Internal Revenue Manuals

• Acquisition Policy - https://www.irs.gov/pub/irs-pdf/p5488.pdf

• Information Technology Security Policy & Guidance - https://www.irs.gov/irm/part10/irm_10- 008-001r

• Personnel Security Contractor Investigations - https://www.irs.gov/irm/part10/irm_10-023-002

• Personnel Security/Suitability for Employment and Personnel Security Operations -https://www.irs.gov/irm/part10/irm_10-023-003

• Enterprise Architecture (EA) - https://www.irs.gov/irm/part2/irm_02-015-001

• Requisition Processing for IT Acquisition Products and Services -https://www.irs.gov/irm/part2/irm_02-021-001

• Section 508 - https://www.irs.gov/irm/part2/irm_02-030-001

• Lifecycle Management - https://www.irs.gov/irm/part2/irm_02-031-001

• Risk, Issue, and Action Item Management Policy - https://www.irs.gov/irm/part2/irm_02-109-

• IT Asset Management Policy - https://www.irs.gov/irm/part2/irm_02-149-001

• Asset Management Software Procedures - https://www.irs.gov/irm/part2/irm_02-149-004

• IT Program Governance Policy - https://www.irs.gov/irm/part2/irm_02-173-001

9. GOVERNMENT FURNISHED INFORMATION

• IRS Strategic Operating Plan, https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan

• A listing of current & planned software agreements from SAM program.

https://www.irs.gov/pub/irs-pdf/p5488.pdf https://www.irs.gov/irm/part10/irm_10-008-001r https://www.irs.gov/irm/part10/irm_10-008-001r https://www.irs.gov/irm/part10/irm_10-023-002 https://www.irs.gov/irm/part10/irm_10-023-003 https://www.irs.gov/irm/part2/irm_02-015-001 https://www.irs.gov/irm/part2/irm_02-021-001 https://www.irs.gov/irm/part2/irm_02-030-001 https://www.irs.gov/irm/part2/irm_02-031-001 https://www.irs.gov/irm/part2/irm_02-109-001 https://www.irs.gov/irm/part2/irm_02-109-001 https://www.irs.gov/irm/part2/irm_02-149-001 https://www.irs.gov/irm/part2/irm_02-149-004 https://www.irs.gov/irm/part2/irm_02-173-001 https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan