DEPARTMENT OF FIRE AND POLICE PENSIONS 360 East Second Street, Suite 400 Los Angeles, CA (213)
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1 DEPARTMENT OF FIRE AND POLICE PENSIONS 360 East Second Street, Suite 400 Los Angeles, CA (213) REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS APRIL 4, 2013 ITEM: A.8 FROM: SUBJECT: William S. Raggio, Interim General Manager APPROVAL TO IMPLEMENT THE INFORMATION TECHNOLOGY DISASTER RECOVERY SOLUTIONS AND POSSIBLE BOARD ACTION RECOMMENDATION That the Board: 1. Adopt the Information Technology (IT) Disaster Recovery (DR) solutions for business continuity; 2. Authorize staff to proceed with the DR solutions implementation; and 3. Authorize the Interim General Manager to issue a Request for Proposal (RFP) for IT DR solutions implementation services. BACKGROUND In order for Los Angeles Fire and Police Pensions (LAFPP) to become more resilient to business disruptions, a Business Continuity Lifecycle (Lifecycle) was initiated in November The Lifecycle consists of five steps: (1) Business Impact Analysis (BIA); (2) Business Continuity Plan (BCP) Development; (3) DR Implementation; (4) Exercise and Response; and, (5) Review and Maintain. The first step in the Lifecycle, BIA, began in November 2010 and was completed in September The BIA provided LAFPP with a high-level plan, direction, and vision for the future to reduce the overall risk profile and provide continuity to critical business processes. The second step in the Lifecycle, BCP Development, began in October 2011 and was completed in June The final BCP provided LAFPP with a detailed plan to maintain business continuity and recover from events that disrupt operations, thus mitigating the impact to our members. Staff performed various tests of our plan to validate the accuracy and the integrity of our BCP. The tests were successful as they validated the continuity of the services that we provide to our members.
2 LAFPP is now in Step 3 of the Lifecycle, DR Implementation, which began in July By February 2013, staff determined the final IT DR solutions, hardware and software requirements, key milestones and timelines, and all necessary funding resources. A detailed report with relevant information is outlined and discussed in the Disaster Recovery Blueprint Specifications and Roadmap Assessment documents. DISCUSSION The DR Specifications and Roadmap Assessment outlined three stages necessary to complete Step 3 DR Implementation of the Lifecycle. Stage 1 Production Upgrades: Several upgrades to our current production environment are required before the DR solutions can be implemented. The production upgrades include the following: (1) Network Upgrades; (2) Storage Upgrades; (3) Data Encryption; and (4) Remote Access and Telecommuting Capabilities. These production upgrades will cost approximately $414,000 to complete. Stage 2 Data Discovery and Classification: One of the prerequisites to complete the upgrades is to analyze and classify the data in our systems. The Data Discovery and Classification component costs approximately $70,000 and is required for Item 3 above, Data Encryption. Stage 3 DR Solution: The cost to implement the DR solution at a third-party facility will be approximately $50,000. It will also cost an additional $1,000 to implement voice and electronic communication between LAFPP s staff to be used during an emergency. Therefore, a total one-time cost of $535,000 is needed to implement Stages 1 3 of the proposed DR solutions. With the integration of the DR Solutions, there are recurring charges annually to maintain the DR solutions by a third-party vendor. Staff has estimated the first year cost to be $69,000 to maintain and support the DR solutions. These costs do not include disaster activation, or if additional testing is scheduled when needed. A total cost of $604,000 will be incurred by September 2014, which includes Stages 1, 2 and 3 Capital Expenses, and Year 1 Operational Expenses. As shown below, Table 1 includes Stages 1, 2 and 3 with timelines and one-time implementation expenses. Table 2 provides the yearly operational expense for maintaining and supporting the DR solutions for the next five years. Board Report Page 2 April 4, 2013
3 Table 1: Pricing Capital Expense (one-time expense) CAPEX Implementation Expenses Description Stage 1 (Jul 13-Nov 13) Stage 2 (Sep 13-Feb 14) Stage 3 (Mar 14-Sep 14) Total CAPEX Network Upgrades $136,000 $136,000 Storage Upgrades $140,000 $276,000 Data Encryption $90,000 $366,000 Remote Access and Telecommuting $48,000 $414,000 Data Discovery and Classification $70,000 $484,000 Virtual Disaster Recovery $50,000 $534,000 Voice Disaster Recovery $1,000 $535,000 Totals $414,000 $70,000 $51,000 $535,000 Table 2: Pricing Operational Expense (ongoing expense) OPEX Maintenance Expenses Description Year 1 Year 2 Year 3 Year 4 Year 5 Total OPEX Network Upgrades Storage Upgrades Data Encryption Remote Access and Telecommuting Data Discovery and Classification Virtual Disaster Recovery $66,000 $69,300 $72,765 $76,403 $80,223 $364,691 Voice Disaster Recovery $3,000 $3,150 $3,308 $3,473 $3,647 $16,578 Totals $69,000 $72,450 $76,073 $79,876 $83,870 $381,269 The location of LAFPP s DR solutions and the third-party vendor has not been determined at this time. With the Board s approval, Staff plans to release a RFP to find and select a vendor by May 2013, that will best meet the qualifications and specifications to complete the Production upgrades, implement, and host LAFPP s DR solutions. Staff will recommend to the Board a final vendor selection by July At the completion of Step 3 (DR Implementation) in September 2014, Staff will be very well prepared to provide business services to our members even during disruptions. With due diligence, Staff will proceed with the final two steps of the Lifecycle: Step 4 Exercise and Response includes various practice drills of the BCP allowing LAFPP personnel to become familiar with the BCP. Furthermore, the offsite DR solutions and recovery capabilities will again be validated to ensure continuity of services to our members during business disruptions. Step 5 Review and Maintain the products and services that are implemented to continuously meet the BCP objectives and maintain a desired risk profile. One of the key objectives in the fifth step is to monitor changes in business processes, risk profile, and impacts to LAFPP. It is in the best interest of LAFPP to have staff review the Lifecycle annually and continually make adjustments to the BCP and DR solutions. At the completion of the final step, LAFPP will be well equipped to mitigate risks and continue to provide services to our members during uncontrolled events that may disrupt our daily business processes. Board Report Page 3 April 4, 2013
4 BUDGET Sufficient funding is available in fiscal year The remaining funds have been included in fiscal year budget. POLICY No change in policy. This report was prepared by: Jennifer Huang-Leifeste, Programmer Analyst V Systems Section WSR:BMY:JHL Attachment: IT Disaster Recovery (DR) Solutions and Roadmap Report Board Report Page 4 April 4, 2013
5 IT Disaster Recovery (DR) Solutions and Roadmap Report April 4,
6 Imagine. 2
7 Earthquake At 1:00 am tomorrow, Los Angeles City and surrounding region experiences a severe earthquake the big one. Many buildings are damaged; bridges, rails and roads are also severely damaged; travel to LAFPP or other City Offices is impossible; communication is sporadic; electricity is unavailable; emergency officials and the Media are urging people to stay away from the region; and clean up will take several weeks to months. How do we overcome the inevitable? 3
8 Four Key DR Requirements 1. Remote Access/Telecommuting data access 2. Back-Up Data Center (DC) outside the region for maintaining data processing capability 3. Voice Recovery for continuity of communication 4. Paperless Operations to enhance facility and personnel collaboration 4
9 IT DR Solutions Blueprint 5
10 IT DR Solutions Blueprint Three (3) stages: 1. Stage 1- Production Upgrades (Prepare) Network Upgrades Storage Upgrades Data Encryption Remote Access and Telecommuting 2. Stage 2 Data Discovery and Classification (Secure) Identifies data for secure encryption 3. Stage 3 DR Implementation (Enable) Virtual Disaster Recovery Service Voice Disaster Recovery Service 6
11 Benefits: Stage 1 Production Upgrades Network Upgrades Storage Upgrades Data Encryption Remote Access / Telecommuting Prepares LAFPP to process between two sites; Production and DR data centers Establishes Alternate Work Site (AWS) to work from anywhere Prepares LAFPP data back-up Stage 2 Data Discovery and Classification Data Identifies data for encryption Identifies critical data Optimizes data back-up Stage 3 DR Implementation Virtual Disaster Recovery DC Enables cost effective DR Data processing Establishes remote DC Easiest to expand and manage Voice Disaster Recovery Provides communication continuity to members and staff 7
12 Investment Pricing Description CAPEX Implementation Expenses Stage 1 (Jul 13-Nov 13) Stage 2 (Sep 13-Feb 14) Stage 3 (Mar 14-Sep 14) Total CAPEX Network Upgrades $136,000 $136,000 Storage Upgrades $140,000 $276,000 Data Encryption $90,000 $366,000 Remote Access and Telecommuting $48,000 $414,000 Data Discovery and Classification $70,000 $484,000 Virtual Disaster Recovery $50,000 $534,000 Voice Disaster Recovery $1,000 $535,000 Totals $414,000 $70,000 $51,000 $535,000 OPEX Maintenance Expenses Description Year 1 Year 2 Year 3 Year 4 Year 5 Total OPEX Network Upgrades Storage Upgrades Data Encryption Remote Access and Telecommuting Data Discovery and Classification Virtual Disaster Recovery $66,000 $69,300 $72,765 $76,403 $80,223 $364,691 Voice Disaster Recovery $3,000 $3,150 $3,308 $3,473 $3,647 $16,578 Totals $69,000 $72,450 $76,073 $79,876 $83,870 $381,269* Year 1 Total (CapEx and OpEx) $535,000 $69,000 $604,000* *Pricing does not include DR activation costs 8
13 IT DR Solutions Roadmap 9
14 Roadmap, Timeline & Milestones Schedule: Months July 2013 to September 2014 Three (3) Completion Milestones: November 2013: Stage 1 - Production Upgrades February 2014: Stage 2 Data Discovery September 2014: Stage 3 DR Implementation 10
15 Roadmap Activities by Stage Stage 1 Prod Upgrades (Jul 13- Nov 13) Stage 2 Data Discovery (Sep 13-Feb 14) Stage 3 DR Implementation (Mar 14-Sep 14) RFP Process Award contract Prod Data Center Upgrades: Network Upgrades Storage Upgrades Data Back-Up & Encryption Remote Access & Telecommute Identifies data for encryption Data Classification Data Design Data Migration Virtual DR Setup Initial Data Replication Ongoing Replication Virtual DR Test Voice DR Setup Voice DR Test 11
16 Next Steps 12
17 Next Steps 1. RFP Phase Develop RFP Select Vendor Award contract 2. Stage 1 Implement Production Upgrades 3. Stage 2 Conduct Data Discovery and Classification Assessment 4. Stage 3 Implement DR data center Implement voice recovery solution 13
18 Questions 14
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