I BUDGET: Device Client management (DCM) NDA

Transcription

1 BUDGET CONSENT AGENDA ITEM #18 I BUDGET: Device Client management (DCM) NDA May 10, 2018 Reviewed bv: GO Committee FY19 CE REC: $7,206, FTE Increase/Decrease from FY 18 -$680,000 (-8.6%) 0.0 FTE (0.0%) COMMITTEE RECOMMENDED CHANGES*: NONE KEY CE CHANGES FROM FY18: On top ofa $1,000,000 reduction made for tbe FY18 savings plan, tbis NDA reduces tbe desktop and laptop replacement fund by an additional $800,000 for FYl 9. This equates to an effective 11-year replacement cycle for computers, which is untenable given tbe rapid change of technology and increasing cyber security threats that make older equipment far more vulnerable. The Committee encouraged the Executive to return to fully funding the policy goal of 4-year replacements for all staff equipment as soon as the financial situation permits. OTHER ISSUES: The requested level of funding allows for 11,700 licenses for Office 365, which can be installed in 5 different devices for each user. The security for these applications is strengthened through tbis cloud-based service for basic office functions ( , word processing, etc.). *unanimous unless noted

2 AGENDA ITEM #18 May 10, 2018 Worksession MEMORANDUM May 8, 2018 TO: FROM: County Council Dr. Costis Toregas, Council IT Adviser PURPOSE: Initial adoption of Committee recommendations Reference: April 27, 2018 memorandum from Council IT Adviser Dr. Costis Toregas on 1-6 The Committee unanimously recommended the Device Client Management (DCM) NDA budget as proposed by the Executive in the amount of$7,206,000 for final approval. At the worksession, the Committee discussed the following issues: On top of a $ I,000,000 reduction made for the FYI 8 savings plan, this NDA reduces the desktop and laptop replacement fund by an additional $800,000 for FYI 9. This equates to an effective I I-year replacement cycle for computers, which is untenable given the rapid change of technology and increasing cyber security threats which make older equipment far more vulnerable. The Committee encouraged the Executive to return to fully funding the policy goal of 4-year replacements for all staff equipment as soon as the financial situation permits. The requested level of funding allows for 11,700 licenses for Office 365, which can be installed in 5 different devices for each user. The security for these applications is strengthened through this cloud-based service for basic office functions ( , word processing, etc.).

3 GO COMMITTEE #4 April 27, 2018 MEMORANDUM April25,2018 TO: Government Operations and Fiscal Policy Committee FROM: Dr. Costis Toregas, Council IT Advise SUBJECT: NDA: Device Client Management (DCM) PURPOSE: Review and recommend action on the FYl 9 Operating Budget for the DCM NDA Expected to attend: Sonny Segal, Chief Information Officer, DTS Dieter Klinger, Chief Operating Officer, DTS Matt Schaeffer, Office of Management and Budget Staff recommendation: 1. The Committee should affirm their continued support for 4- rather than 6-year replacement cycles for desktop computers and encourage the restoration of full funding that would reverse this trend when financial conditions permit. 2. The Committee should engage all departments with active cloud migration strategies in a summer worksession. The agenda should include the exploration of on-premise cost reductions by identifying tasks no longer necessary to be carried out, as well as possible price reductions that might accrue through collaborative procurement actions for cloud solutions across departments. If successful, the same approach could be explored across agencies through the Interagency Technology Policy and Coordination Committee. 3. Staff recommends the adoption of the Executive's recommended FY19 budget for Device Client Management for $7,206,200. Discussion The Device Client Management (DCM) program is part of the Non-Departmental Accounts budget; it is charged with maintaining a modem and cost-effective computing environment in the County by funding Help Desk support and by managing, maintaining, and replacing PCs on employees' desks. It targets the annual replacement of approximately one-fourth of all managed PCs. Recently, the target of one-fourth (J)

4 has been relaxed because of fiscal pressures. The primary strategy of executing this mandate is through a contract with an outside vendor; currently, that contract is held by L3 Communications. The FY! 9 recommendations for DCM are on 1-2. The budget request of$7,206,200 represents an 8.6% decrease from the FY18 level of$7,886,200. A shift from buying one-time software licenses for all County desktop computers to buying annual "subscriptions" for Office 365, the new, cloud-based offering of Microsoft, occurred in FYl 7. It provides several (up to 15) additional versions of Office 365 for every County employee on multiple devices such as tablets, laptops and smart phones, thereby boosting employee productivity (both during and outside office hours). In addition, encrypting all s and unlimited archiving of s are new and welcome benefits of the migration to Office 365. In FYl 8, the Committee added $100,000 to the DCM budget through the Reconciliation process to support the expansion of the Homework Gap program through the provision of additional tablets and/or computers (see question 5 below for updates). To gauge progress made in this important program and ensure that the FY19 DCM program can address current challenges, Council Staff posed a series of questions. These questions, DIS answers and, where relevant, Council Staff comments are provided below. 1. The support services contract for Help Desk and other services expired in What is the current situation? And were there material changes in costs or in service levels negotiated with the current vendor? Please relate your answer to the question raised under the Help Desk performance targets in the DTS budget. Following the release of a Request for Proposal (RFP), the Device Client Management (DCM) contract was competitively awarded in August, 2014 and provides for an initial 3-year term, with three (3) I-year extension options. Therefore, the contract can be renewed through August DTS anticipates that we will issue a renewal RFP before the end of The contract includes several negotiated Service Level Agreements (SLAs) which the County regularly monitors via a real-time online management dashboard and supplemental management reports. The most significant change in the current DCM contract vis-a-vis prior contracts is that all County users (and their associated devices) receive services under the contract, rather than just users with a DCM provided primary seat computer (as was the case in prior contracts). This enhanced level of service has been critical in facilitating the successful enterprise rollout of Office 365 and in resolving Cyber Security incidents in a timely manner. 2. Provide a listing of all licenses for cloud-based services and their cost for cloud-based services for the Enterprise? Where costs are difficult to derive, provide best estimates; in any case, list licenses. The DCM NDAfanding includes the following cloud-based services: $1,962,000 11,700 licenses - Office 365 $100, licenses - RemedyForce (HelpDesk) 2 /1; 'ty

5 Council Staff comment The move to the cloud is one that other progressive counties are replicating; however, attention must be given to ensure that stranded costs of old technology support are not still absorbed by the budget. Given the size of cloud migration that now occupies more than 27% of the DCM budget, it is important to provide for and account for all related costs that support this migration. For example, in prior years, instead of cloud licenses, the County actually had software copies to distribute and maintain. Distribution, upkeep, and support costs for almost 12,000 units are significant. Reductions of equivalent magnitude should begin to be seen in the DTS budget. The Committee may wish to review overall cloud migration strategy costs ( across all department budgets) as part of the summer work program. 3. Has the migration to the cloud changed the mix of hardware which DTS provides to the MCG employee's desktop? Yes, as a result of increased Cloud adoption (such as Office 365), more departments are opting to upgrade to laptops or tablets for their PC replacements rather than a traditional PC. Additionally, more users are optingfor dual monitors to be able to access multiple applications at the same time. 4. During the FY18 Savings Plan, the DCM budget was reduced by $1 million to accommodate the financial difficulty at the time. An additional $800,000 reduction currently being proposed would reduce the number of PC replacements in FY19 to what level? The number of PC replacements in FYI 9 would be reduced to approximately 770 due to the additional $800,000 reduction currently proposed. This figure assumes that additional users opt for laptops rather than desktops during the PC replacement process. As the entire PC replacement cost in FY18 was $1. 7 million (see table below; please provide updated FY19 numbers for each category), the proposed reduction would bring the replacement pool to $900,000, or at $1,100/unit, reduce the number of units that can be replaced to about 800 this coming year. This would stretch the replacement cycle to almost 12 years. Such a level cannot be sustained in a progressive enterprise. FY18 A121:iroved FY18 with Savings FYl9 Pro12osed DCMBud"et Plan DCMBudr;et Services $3,021,383 $3,021,383 $3,141,383 PC Reolacements $1,697,827 $697,827 $897,827 Software Licenses $2,878,300 $2,878,300 $2,878,300 Enterprise Server $288,690 $288,690 $288,690 Reolacements Total $7,886,200 $6,886,200 $7,206,200 3 / -~, ' ij '--C../

6 a) Is the $800,000 proposed reduction taken solely from PC replacements, or some other line of the DCM budget? The $800,000 proposed reduction is proposed to be taken solely from PC replacements. b) What is the current policy for PC replacements? And does the proposed FY19 budget suggest a change for the Committee to consider? The current policy is a 6-year replacement cycle, fiscal conditions permitting. The proposed budget will increase the number of" at risk" PCs when Microsoft is scheduled to end support and stop providing security related patches for the Windows 7 Operating System in January, Council Staff comment There are approximately 9,300 devices covered under the DCM NDA. If the Executive replaces 770 in 2019, this represents an annualized replacement policy of 12 years. This is obviously nonsustainable as technology, security, and user capabilities change dramatically every 2-3 years. The policy of 4-year replacement cycles is one that should be endorsed and followed to keep County employees adequately resourced in this information age. Understandably, the current financial crisis is forcing the Executive to propose undesirable choices to the Council. The Committee should request that the proposed DCM budget level of replacements should be restored to a 4-year replacement cycle as soon as practical. 5. List the number of equipment by type that has been provided for the Homework Gap program (laptops, tablets, Chrome books, others) and identify the equipment numbers and cost of continuing to provide them in the FY19 proposed budget. Equipment Provided: 136 HP Chromebook laptops to HOC Residents at 7 locations 30 HP Chrome book laptops made available for in-library use at Germantown, Plum Gar, Upper County, Long Branch and White Oak community recreation centers 20 Lenovo ThinkPad laptops made available for Excel Beyond the Bell NASA STEM Rocketry classes and the Homework Club at Argyle and Lee Middle Schools 12 Dell Latitude laptops with Adobe Creative Cloudediting software made available for in-library use and to support Gandhi Media Brigade youth editing classes at Aspen Hill, Rockville, Kensington and Praisner Public Libraries. Cost to continue program: $9,000 to continue to license Adobe Creative Cloud software ($750 per license x 12 computers) $162,000 to purchase an additional 260 computers for HOC residents. 4 ' (ff/ ''---.!.-, ' I

7 Changes Expenditures FTEs ~18. App~~~E:d Increase Cost Annualization of FY18 Personnel Costs Increase Cost CoStar Licensing Cost.. "' Decrease Cost Management Audit.., , ,975 2,720 (50,000) , * Consolidated Retiree Health Benefit Trust - College This NDA provides consolidated funding for Montgomery College's contnbution to 1he Retiree Heal1h Beuefits Trust Changes Expenditures FTEs -~-~-~ ~ep.~~~ed --. Increase Cost County Contribution Based on Actuarial Valuation 2,552, , !~~S,E_~-- * Consolidated Retiree Health Benefit Trust - MCPS This NDA provides consolidated funding for Montgomery County Public Schools' con1nbution to 1he Retiree Heal1h Benefits Trust i=yt9 Recommended Changes _ - - _ Expenditures - FT& FY18 Approved Increase Cost County Contribution Based on Actuarial Valuation 74,192, ~ ,213,000 _ 79,405,ooo o.oo ~ County Associations This NDA funds Montgomery County membership dues to 1he Narional Association of Counties (NACo) and the Maryland Association of Counties (MACo). Changes - _ - Expenditures FTEs 74,728 74,728 * Device Client Management The Device Client Management (DCM) program is based on a best practices approach to main1aining a modern and cost effective computing environment in the County. The program reduces 1he Total Cost of Ownership (TCO) of personal computers (PCs) and laptops 1hrough standardization, asset managemens and maintenance services. DCM includes the centralized management, support, and maintenance of PCs and targets 1he annual replacement of approximately one-fourth of managed PCs. The program also includes PC-related training and software. This NDA includes funding for Help Desk support, managemens maintenance, and replacement of PCs. Changes Expenditures FTEs ~18 Approve<:! _ _ e 7,886,200 _ Increase Cost Systems Center Configuration Manager (SCCM) Remed1ation Acceleration [Security] 120,000 Non-Departmental Accounts Other County Government Func/kJns

8 Changes Expenditures FTEs Reduce: Delay Scheduled Computer Replacements (800,000) 1,20s,200,11,,,. ~ Future Federal/State/Other Grants This NDA enables the County to implement new grant-funded programs up to $200,000 each and provides funds for grant continuations and enhancements without having to process individual supplemental appropriations furough the County Council. Upon approval by the County Executive, funds in this program are transferred to the receiving department's grant account Changes Expenditures FTEs FY~S-~p~_rov~_ 20,oo_o._o_oo ~o,~00,000.. ~ Grants To Municipalities in Lieu Of Shares Tax This NDA funds payments required in accordance with State Jaw. The 1968 Sessioo of the General Assembly revised the tax structure to include a County income tax. As part of this restructuring, the shared tax on banks and financial institutions was eliminated, and a provision was adopted which requires counties to pay annually to municipalities the amount ($28,020) which had been received by the rmmicipalities in FY68. Changes. _. Expenditures FTEs.f:'_~ 8 AJ.>~ro~~ 28,020 28,020 ~ Group Insurance Retirees Group insurance is provided to an estimated 7,002 retired County employees and survivors, as well as retirees of participating outside ageocies. Employees hired before Janumy 1, 1987, are eligible upon retiremeot to pay 20 percent of the premium for health and life insurance for the same number of years ( after retirement) that they were eligible to participate in the group insurance plan as an active employee. The County government pays the remaining 80 percent of the premium. Thereafter, these retirees pay 100 percent of the premium Employees hired before Janumy 1, 1987, are also offered the option at retirement to convert from the 20/80 arrangement to a lifetime cost sharing option. Employees hired after Janumy 1, 1987, are eligible upon retirement for a lifetime cost sharing option under which the County pays 70 percent of the premium and the retiree pays 30 percent of the preminm for life for retirees who were eligible to participate in the County group insurance plan for 15 or more years as active employees. Minimum participatioo eligibility of five years as an active employee is necessary to be eligible for the lifetime plan. The County will pay 50 peroent of the preminm for retirees with five years of participation as an active employee. The County contnbution to the paymeot of the premium increases by two percent for each additional year of participation up to the 70 percent rnax:innnn. On March 5, 2002, the County Council approved a one-time opportunity for retirees still under the 20/80 arrangement with an expiration date to elect 1he lifetime cost sharing arrangement The new percentage paid by the County for those electing 1his arrangement ranges from 50 percent to 68 peroeot, depending upon years of active eligibilityunderthep!an and years since retirement The cost sharing election prooess bas been completed. The budget does not include employer coottibutions from participating outside agencies Other County Government Functions FY19 Operating Budget and Public Services Program FY19-24 (_,