Fiscal Note
Fiscal Services Division
SF 539 – Cloud Computing Procurement Preference (LSB1409SV)
Staff Contact: Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 539 relates to cloud computing procurement preferences for the Office of the Chief
Information Officer (OCIO). The Bill requires the OCIO to procure, when feasible, cloud
computing solutions and other information technology and related services not hosted on
premises by the State from service providers that comply with federal authorization or
accreditation programs for information technology. The Bill requires that the control and
ownership of State data stored with cloud computing service providers is to remain with the
State, requires the data to be portable, and allows the OCIO to contract with multiple providers.
If the OCIO determines it is not feasible to procure a cloud computing solution, the Bill requires
OCIO to submit a report to the General Assembly with the following information:
• An explanation as to why a cloud computing deployment was not feasible.
• A cost-benefit analysis of the on-premises technology upgrades or new applications
compared to the cloud computing solution or other information technology-related service.
• Compliance frameworks that require the application to be hosted on premise.
Senate File 539 also requires the OCIO to provide a report to the General Assembly by
November 1, 2021, that includes a complete inventory of all State information technology
applications, including the percentage of cloud-based applications, and recommendations for
applications that should migrate to cloud-based applications.
Background
The National Institute of Standards and Technology (NIST) defines cloud computing in Special
Publication 800-145 as a “model for enabling ubiquitous, convenient, on-demand network
access to a shared pool of configurable computing resources that can be rapidly provisioned
and released with minimal management effort or service provider interaction.” The OCIO has
reported that many State agencies have migrated to cloud services on a case-by-case basis,
including email, human resources, and Web hosting investments.
Assumptions
• To manage the implementation of annual reporting requirements, feasibility analysis, and
review of agency inventories, the OCIO estimates that it may need to hire 3.0 additional full-
time equivalent (FTE) positions that include: two Executive Officer 3 positions and one
Budget Analyst 2 position.
• The OCIO’s salary and benefit estimates are based on hiring decisions at the high end of the
pay scale for the identified position.
Fiscal Impact
The estimated cost or cost savings from procuring third-party cloud computing solutions cannot
be estimated at this time. The OCIO estimates that cloud computing solutions may be cheaper
in some circumstances but could significantly increase costs in other circumstances. As a
result, the overall aggregate information technology costs cannot be determined.
1
Table 1 below shows the estimated costs associated with filling the FTE positions on an annual
basis, as reported by the OCIO.
Table 1
OCIO Estimated Personnel Costs FY 2022 - FY 2024
FY 2022 FY 2023 FY 2024
Salary and Benefits
Executive Officer 3 (2.0 FTEs) $ 250,000 $ 250,000 $ 250,000
Budget Analyst 2 (1.0 FTE) 100,000 100,000 100,000
Total Salary and Benefits $ 350,000 $ 350,000 $ 350,000
The total cost reflects the full salary plus benefits for each position and assumes hiring at the
high end of the pay grade. Therefore, costs could be expected to vary depending on the hire
and selected benefit plans.
Sources
Office of the Chief Information Officer
Department of Management
/s/ Holly M. Lyons
March 8, 2021
Doc ID 1216172
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
2


Statutes affected:
Introduced: 8B.1, 8B.24