DIR Leaders Talk Budget Predictions and Procurement Concerns

Department of Information Resources (DIR) leaders provided valuable procurement insights at this year’s State of Technology — Texas Industry Forum, including plans for the upcoming budgeting session and major areas in the procurement process where vendors are dropping the ball.

DIR Deputy Executive Director Steve Pier said that while the appeal of artificial intelligence is undeniable, he expects the budget to continue to emphasize legacy modernization and cybersecurity.

“The reality is that the state isn’t ready,” said Pier regarding AI integration. “The state agencies aren’t ready to deploy all of the AI we could, because all of our systems are not modernized the way they need to be to optimize for AI. And cybersecurity is just never going to go away in terms of priority.”

In Texas, meeting cybersecurity needs will involve doubling down on proactive solutions like multifactor authentication, endpoint detection and response, and network detection and response.

One major method of strengthening the state’s cybersecurity Pier expects to see in the budget is the expansion of regional security operations centers (RSOCs), the first of which officially opened at Angelo State University in January 2023. Two additional RSOCs were opened later that year; one at the University of Texas at Austin and the other in the Rio Grande Valley.

Deputy State CIO John Hoffman stressed the importance of preparation when doing business in Texas, particularly for vendors looking to partner with state agencies. According to Hoffman, far too often negotiations with vendors — including established partners — fall through due to a lack of research and communication. His advice: “Bring your A-team.”

“I don’t mean just the account managers,” clarified Hoffman. “You have to understand, I can get my techies excited, and we can want to move forward, and then we run straight into the wall of finance and legal and procurement. I am always amazed at how great organizations with fantastic products can put a really good response together and then screw it up about the time it goes to negotiation and implementation.”

Pier urged vendors to research three main sources before approaching Texas agencies with proposals: the state strategic plan, the appropriate agency’s strategic plan and their legislative appropriations requests. Without understanding the particularities of the state, its various agencies and their particular needs, negotiations are likely to stagnate.