Operating Plan - Center for Innovative Technology Fiscal Year 2021 (January 20, 2021)
Summary
A January 20, 2021 letter from Susan Aitcheson, CFO of the Center for Innovative Technology (CIT), to Daniel Timberlake, Director of the Department of Planning and Budget, enclosing the CIT Operating Plan for FY2021. The letter says CIT is the operating arm for the Virginia Innovation Partnership Authority (VIPA) and that the attached report fulfills Item 135.D.1 of the Virginia Acts of Assembly, 2020 Regular Session. The plan is marked as approved by the CIT Board of Directors June 24, 2020, and its table of contents lists Commercialization, Entrepreneurial Ecosystems and Investments divisions. The closing pages carry a cash receipts and disbursements table and a note under Item 135.D.1e that private investment activity related to the fund of funds had no activity.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Operating Plan - Center for Innovative Technology Fiscal Year 2021 (January 20, 2021).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-rd69-5e483d153e/
, SHA-256 c69b5c1173c4e394cf5c3bfa8ca464b799b92783bbf76074e3d9675b39d3af10.Full text
January 20, 2021
Mr. Daniel Timberlake
Director
Department of Planning and Budget
1111 East Broad Street, Room 5040
Richmond, Virginia 23219
Dear Mr. Timberlake:
Enclosed please find the Operating Plan for FY2021 for the Center for Innovative Technology (CIT). CIT is the
operating arm for the Virginia Innovation Partnership Authority (VIPA). The attached report fulfills the
requirements of Item 135.D.1 of the Virginia Acts of Assembly, 2020 Regular Session.
Please feel free to call me at 703‐689‐3021 if you have any questions.
Sincerely,
Susan Aitcheson
CFO
Center for Innovative Technology
cc: The Honorable Brian Ball, Secretary of Commerce and Trade
Ms. Cassidy Rasnick, Deputy Secretary of Commerce and Trade
The Honorable Janet D Howell, Chairman, Senate Finance & Appropriations Committee
The Honorable Luke E. Torian, Chairman, House Appropriations Committee
Ms. Anne E Oman, Staff Director, House Appropriations Committee
Ms. April Kees, Staff Director, Senate Finance & Appropriations Committee
Ms. Toni Walker, Associate Director, Department of Planning and Budget
Ms. Samantha Martin, Budget and Policy Analyst, Department of Planning and Budget
2214 Rock Hill Road
Suite 600
Herndon, VA 20170
Tel.703‐689‐3000
www.cit.org
Item 135.D.1
Operating Plan
CENTER FOR INNOVATIVE TECHNOLOGY
FISCAL YEAR 2021
OPERATING PLAN
Approved by CIT Board of Directors
June 24, 2020
TABLE OF CONTENTS
OVERVIEW .................................................................................................................................. 3
MISSION, VISION, SCOPE OF OVERSIGHT ........................................................................ 4
VIPA AND CIT ............................................................................................................................. 6
CIT ................................................................................................................................................. 6
OPERATING DIVISIONS .......................................................................................................... 7
Commercialization Division ........................................................................................................... 7
Entrepreneurial Ecosystems Division ............................................................................................. 9
Investments Division .................................................................................................................... 11
EXECUTIVE FUNCTIONS ...................................................................................................... 13
Strategic Initiatives ........................................................................................................... 13
o Smart Communities .................................................................................. 14
o Unmanned Systems ................................................................................... 14
o SCITI Labs ................................................................................................ 15
Policy, Communications and COV Engagement .............................................................. 16
Finance and Administration .............................................................................................. 18
Human Resources ............................................................................................................. 19
Systems ............................................................................................................................. 20
CIT Locations and Relocation ................................................................................................... 21
Major Operating Risks and Mitigations ................................................................................... 21
APPENDIX A .............................................................................................................................. 23
APPENDIX B .............................................................................................................................. 28
2
OVERVIEW
FY21 represents the start of a profound transformative period for innovation, entrepreneurship,
and technology commercialization in the Commonwealth of Virginia. The new Virginia
Innovation Partnership Authority (VIPA) comes into existence on July 1, 2020. Legislation that
creates the Authority provides the best overview.
The Administration and General Assembly determined "that there exists in the Commonwealth a
need to support the life cycle of innovation, from translational research; to entrepreneurship; to
pre-seed and seed-stage funding; as well as acceleration, growth, and commercialization,
resulting in the creation of new jobs and company formation. A collaborative, consistent, and
consolidated approach will assist the Commonwealth in identifying its entrepreneurial strengths,
including the identification of talents and resources that make the Commonwealth a unique place
to grow and attract technology-based businesses."
The scope of programs the Authority may undertake is broad. It provides for a wide range of
powers and programmatic development. The critical needs and opportunities the Authority can
address include:
Promote the technology-based economic development of the Commonwealth by building,
attracting, and retaining innovation and high-technology jobs and businesses in Virginia.
Increase industry competitiveness by supporting the application of innovative
technologies that improve productivity and efficiency.
Attract and provide additional private and public funding in the Commonwealth to
enhance and expand the scientific and technological research and commercialization at
the state and federal research institutions and facilities, including by supporting and
working with technology transfer offices to advance research from proof-of-concept to
commercialization resulting in new business and job creation.
Attract and provide additional private and public funding to support and enhance
innovation-led entrepreneurship ecosystems and coordination of existing activities and
programs throughout Commonwealth to create new job opportunities and diversify the
economy.
Ensure promotion and marketing of Virginia's statewide innovation economy and support
and coordinate regional marketing efforts to align local and statewide objectives.
Close the Commonwealth's support gap through pre-seed and seed-stage investments,
coordination of private investor networks, and shared due diligence research.
In essence, the Authority is Virginia's hub for growing and diversifying the economy through
innovation, entrepreneurship, and technology commercialization.
3
MISSION, VISION, SCOPE OF OVERSIGHT
The Virginia Innovation Report published by the Commerce and Trade Secretariat lays out the
Administration's view on the Authority's mission and vision. This report gives us insight into the
structure and purpose of the Authority.
The new Authority, through its governance and with CIT as the lead managing nonprofit, brings
together components of existing and new program activities in an approach through which the
whole is greater than the sum of the individual programs. VIPA's design includes governance
and management capabilities to ensure that programs generate transformative and measurable
results.
VIPA and the not-for-profits under its oversight can provide funds to existing organizations to
carry out programmatic activities while also delivering, as needed, vital services in strategic
domain areas that existing Commonwealth organizations are not currently serving. Major goals
include:
Creating a continuum of services and investments for innovation-led development that
will collectively scale to drive economic diversification, economic growth, and generate
measurable benefits, including:
o Broadening the funnel of commercialization ideas and inventions in targeted
technology domain areas, leading to a critical mass of innovation-led companies in
Virginia that can catalyze the development of more robust clusters.
o Producing and investing in more successful startups based on commercialization from
research institutions.
o Elevating and creating R&D excellence that can catalyze industry collaboration and
innovation-led development.
o Fostering a robust innovation ecosystem in regions across the state.
o Investing in and creating a critical mass of successful innovation-led companies
serving commercial markets.
Emphasizing four major functional elements:
o Improving the pathway for research commercialization by building university
capacity.
o Focusing on strategic domain areas for research commercialization and acceleration
services, including cybersecurity, data analytics, unmanned systems, space and
satellite systems, personalized medicine, life sciences and other opportunities that
present themselves in the future.
4
o Developing a backbone of statewide resources that each region can tap into to ensure
there is capacity across the state to form quality startups positioned for growth.
o Defining and prioritizing strategic domain areas of research and research
commercialization.
Generating measurable economic development benefits, such as taxable events at
corporate and employee levels.
The creation of VIPA will be guided by the principles adopted in the CIT Board of Directors
and new leadership in 2016 that set a new tone for CIT based on 4 governing principles to
address oversight, reputation and financial management issues. The principles continue to
guide the company. Those principles include:
Inclusion – prioritize outreach to groups in the Commonwealth traditionally
underrepresented such as people of color, women, rural communities, students and youth
while ensuring that all parts of the Commonwealth are touched by CIT.
Transparency – openness on all issues among the Board, the Administration, the General
Assembly; enhanced Board committees for greater oversight
Accountability – Board approved operating plans & balanced scorecards; management
accountability; rigorous Board and Commonwealth reporting
Leadership – Board and management policy engagement with COV government,
operational execution and measurable results
CIT management will continue applying these principles and ensure that all organizations
under VIPA adhere to similar principles on behalf of the VIPA Board of Directors.
Scope of VIPA Oversight
VIPA represents the consolidation of oversight at the authority level for multiple state-funded
organizations. Those organizations include the Center for Innovative Technology (CIT), the
Virginia Catalyst (also known as the Virginia Biosciences Health Research Corporation
(VBHRC)), the Commonwealth Center for Advanced Manufacturing (CCAM), the
Commonwealth Cyber Initiative (CCI), and the Commonwealth Center for Advanced Logistics
Systems (CCALS). Each of these organizations has separate Boards of Directors or governance
structures. The Board of Directors of VIPA will interact with the management and boards or
governance structures of these organizations. The VIPA Board and the boards and management
of the organizations, will define the appropriate oversight model in FY21.
5
VIPA AND CIT
Commonwealth legislation designates CIT as the managing not-for-profit for VIPA in FY21. In
the past, there was a one-to-one relationship between the state authority, the Innovation and
Entrepreneurship Authority (IEIA) and CIT. Given the multi-entity scope of VIPA governance,
CIT's role expands to both management of: 1) the CIT organization and programs funded in CIT
and 2) administrative support to the VIPA Board of Directors in its oversight of multiple entities.
During FY21, CIT management and the VIPA Board will need to define the scope of and cost of
support for CIT's administrative role for VIPA with regard to the other entities under VIPA's
governance. In addition, CIT is seeking the Administration's and outside legal counsel's advice
on the legal relationship between CIT and the other organizations to help clarify governance
roles and accounting requirements.
In FY20, CIT's Board and management engaged legal counsel to outline actions for the new
VIPA Board. For FY21, enactment language in the legislation allows CIT and the other
organizations to continue operating with no disruption. CIT management is working with the
Administration on a final plan for Board transition. CIT management will add objectives to the
FY21 Corporate Scorecard to ensure focus on governance actions.
CIT
Starting in FY21, CIT will organize consistent with the Authority. That is, CIT will consist of
three divisions, a Commercialization Division, an Investment Division, and an Entrepreneurial
Ecosystems Division. CIT’s executive functions will consist of departments for:
Strategic Initiatives
Finance and Administration
Human Resources
Policy, Communications and Government Engagement
An experienced leader is accountable for the performance of each organization unit. CIT will
also maintain the current Board of Directors and Board committees to ensure proper governance
of the company.
6
OPERATING DIVISIONS
Commercialization Division
The Commercialization Division supports and advances technology commercialization
throughout Virginia, with particular engagement with higher education and the private sector. It
has a crucial role in promoting research and development (R&D) excellence in Virginia and
guiding and coordinating efforts to support research with commercial potential. In doing so, the
Division leads three initiatives: the Commonwealth Commercialization Fund (CCF), advancing
founder-friendly policies, and identifying allowable, specific uses of buildings owned by public
higher education institutions. The Division supports two additional initiatives: Commonwealth
centers of excellence and the Virginia Innovation Index.
The initiatives are described below. However, because of the COVID-19 pandemic and rapidly
evolving circumstances and needs, the Division's programs, priorities, and timelines may change
from what is described. In FY21, proceeds from the sale of the CIT Building supports the
Division's activities as well as the Centers of Excellence and Virginia Innovation Index work led
by the Strategic Initiatives Division.
Commonwealth Commercialization Fund (CCF)
The CCF is a new program that drives economic growth by funding innovative technology
research, development, and commercialization in Virginia, with particular emphasis on higher
education and the private sector. Established in the 2020 General Assembly Session, CCF builds
upon two programs that transitioned to CCF: the Commonwealth Research Commercialization
Fund (CRCF) and the Virginia Research Investment Fund (VRIF). Through grants and loans to
Virginia organizations for technology development and commercialization, hiring of eminent
researchers, acquisition of equipment, and other activities, CCF will foster economic growth and
job creation, and further the goals of the Virginia Innovation Index.
In FY21, the Commercialization Division will launch the CCF. Managing such a grant and loan
program includes issuing funding opportunities and supporting award recipients. In offering
funding opportunities, the Division's goal is to fund Virginia's innovators early in calendar year
2021. Such a goal can provide much-needed funding to help innovations get to market faster and
restart the Virginia economy. CIT management will work with the CIT Board, the new VIPA
Board, and the Administration on the appropriate steps and approvals to get funds into the
community as soon as possible.
Outreach to the innovation community will occur through electronic and, as permitted, in-person
briefings. The Division will expand its partnerships with technology councils, accelerators,
higher education, and other members of the entrepreneurial ecosystem. Although the intent is for
FY21 private sector funding opportunities to resemble CRCF's programs, the CCF will require
7
updates, including new processes for guidelines development and application review and
selection. The Division will develop and present guidelines for higher education program(s) to
the VIPA Board in spring 2021, with the launch(es) scheduled for early FY22.
The Division also will support its portfolio of prior CRCF and VRIF award recipients whose
projects are active or are within the five-year reporting window following the project's
completion. Among the collection of ~250 CRCF award recipients are those whose awards were
announced in June 2020 and will execute performance agreements in Q1 FY21. The Division
similarly will support the portfolio of VRIF award recipients. It will coordinate with the State
Council of Higher Education for Virginia (SCHEV) in communications with stakeholders,
records transfer, and other areas, to ensure a smooth transition.
The CCF and its predecessors may serve as a pipeline for other CIT initiatives, including the
GAP Funds, and other CIT initiatives can be pipelines for CCF. Thus, the Division will continue
to work closely with colleagues to identify opportunities for joint outreach and other
collaboration.
The Division will prepare and submit the FY20 annual report (§ 2.2-2355, para.17) addressing
that year's CRCF and VRIF awards and outcomes, as well as the transition to CCF. Also, the
Division will provide reports as required, including for VIPA's annual report, the VIPA
President's annual report, and in response to the Joint Legislative Audit and Review Commission
(JLARC)'s annual data call.
In supporting research with commercial potential, higher education ecosystems play a pivotal
role. Commercialization occurs in many centers and initiatives, such as the Apex Center at VT,
Strome Center at ODU, and iLab at UVA, as well as through technology transfer offices. Along
with the Division of Entrepreneurship Ecosystems and other CIT colleagues, the Division of
Commercialization will continue and expand its engagement with higher education to further
shared goals of R&D excellence and commercializing university-based intellectual property.
The Division will establish an Advisory Committee on Commercialization in coordination with
the VIPA President or as the VIPA Board determines. The Division may arrange for a short-term
Committee to serve through December 2020, with a long-term Committee serving effective
January 2021.
Advancing Founder-Friendly Policies
Founder-friendly policies catalyze the creation and growth of spinout companies. Facilitating
identification, licensing, and commercialization of university intellectual property leads to
company creation and growth, new products and services in the market, revenue to higher ed
institutions, and other economic benefits. The Division will coordinate with technology transfer
offices and VPs of research and innovation of higher ed institutions to advance such policies
8
throughout Virginia. Work on this initiative will be deferred until FY22, as the FY21 priority is
related to COVID-19 responses for business, higher education, and government.
Allowable Building Use
Additionally, the Division seeks to drive technology research and commercialization by
facilitating, as appropriate, the use of buildings owned by public institutions of higher education
to support spinoff companies and student commercial initiatives. Benefits could include access to
office and other space not at capacity between or during school sessions as well as access to
specialized instrumentation and equipment. Work on this initiative will be deferred until FY22,
as the FY21 priority is related to COVID-19 responses for business, higher education, and
government.
Strategic Initiatives-led Activities
The Division will coordinate with the Strategic Initiatives Department on its work and budgets
associated with Commonwealth centers of excellence (§ 2.2-2359) and the Virginia Innovation
Index (§ 2.2-2360).
The Division will support Strategic Initiates in developing recommendations for oversight of
initiatives or Commonwealth Centers of Excellence (COEs) related to technology-based or
innovation-based economic development. CIT will deliver the annual report to the VIPA Board
on December 1, 2020. The Strategic Initiatives Department will propose a model for how
initiatives and COEs are formed, matured, and transitioned, as a basis for an integrated set of
recommended oversight processes.
The Strategic Initiative Department will defer work on the Virginia Innovation Index until FY22.
At that time, the Division will review and advise on the Virginia Innovation Index.
Entrepreneurial Ecosystems Division
In FY21, the Entrepreneurial Ecosystems Division (EED) will be established within CIT to
support and promote technology-based entrepreneurial activities throughout Commonwealth.
Starting with the understanding that entrepreneurs are the drivers of successful business
formation and growth, EED will launch and support programs that serve Virginia's existing and
future entrepreneurs. EED will support partner organizations throughout the Commonwealth that
fund or offer support services to entrepreneurs, such as the following:
Colleges and universities
Accelerators
Co-working enterprises
Investors (Investment Division is lead)
9
Local business support programs (SVP, P&RI is lead)
State business assistance programs
o GO Virginia
o Small Business and Supplier Division (SBSD) /Small Business Financing
Authority (VSBFA)
o Virginia Economic Development Partnership (VEDP)
Federal business assistance programs
o Federal Funding Assistance Program (SBIR/STTR assistance)
o Virginia SBDC network (27 offices statewide)
o Procurement Technical Assistance Centers (PTAC)
o Women’s Business Centers (WBC)
EED will connect and leverage the expertise and infrastructure of CIT partner organizations.
EED will work with them to develop and strengthen programs that support entrepreneurs in all
regions of the Commonwealth. Either our partners or CIT may administer such programs. In the
former case, CIT may provide both funding and administrative support to the partner. We intend
to use FY21 as a year to explore and pilot new programs and to provide financial and
administrative support to our partners' existing programs. Programs we plan to support or
explore in FY21 include:
Co-funding entrepreneurial ecosystem projects identified by GO Virginia
Co-funding the Innovation Commercialization Assistance Program (ICAP)
Exploring a micro-grant program for Virginia’s launch-stage entrepreneurs
Exploring a grant program to support entrepreneurial ecosystems projects not supported
by GO Virginia
Exploring grants to support college and university entrepreneurship centers
Coordinating the work of the Virginia Accelerator Network
Through the programs listed above, EED will develop a backbone of statewide resources to
assist all Virginia entrepreneurs. We will ensure that our programs are inclusive to communities
that have been historically underrepresented in entrepreneurship and capital formation.
Incorporated into the programs listed above is an explicit intent to link Virginia's higher
education ecosystems more closely with Virginia's entrepreneurial ecosystem. EED believes that
support for student-led and faculty-led entrepreneurial initiatives will lead to measurable gains in
FY22 and beyond. EED expects (a) more startups using university-based research and IP, and
(b) more graduates remaining in Virginia to launch ventures of their own or work in high
technology companies. EED will work closely with our colleagues in CIT's Division of
Commercialization to coordinate efforts as we continue to engage with key stakeholders within
Virginia's higher education ecosystems.
10
In addition to exploring and supporting the programs listed above, other tasks for the EED in
FY21 include:
Establish the Advisory Committee on Entrepreneurial Ecosystems.
Conduct one-on-one and group meetings with regional entrepreneurial ecosystem
stakeholders and partners to assess specific needs within regions, and to explore if or how
CIT/VIPA can create or support programs that meet those needs.
Establish the Regional Innovation Fund (RIF) as the vehicle through which EED grants
and other support to partner organizations will be disbursed and managed.
Partner with the GO Virginia regional councils to offer resources and expertise related to
entrepreneurial ecosystem development.
Launch an entrepreneurship information portal to support the diverse stakeholders within
Virginia’s entrepreneurial ecosystem.
Manage the existing Federal Funding Assistance Program (FFAP), which identifies and
accelerates opportunities for Virginia's small technology businesses to obtain SBIR,
STTR, and other government contracts.
Investments Division
In FY21, CIT will create a new Division of Investments. This new division includes CIT GAP
Funds and any new investment vehicles approved by the VIPA and CIT Boards. The purpose of
this Division is to give Virginia a competitive advantage with an array of funding mechanisms
provided under section § 2.2-2221 related to direct and indirect investments.
Because the availability of early-stage capital is critical for many emerging technology
companies, CIT makes direct investments through CIT GAP Funds. CIT GAP Funds is a family
of funds spanning multiple generations of tech, life science, and cleantech/energy funds.
Launched in 2018, the Virginia Founders Fund joins these sector-oriented funds and focuses
investments on geographic and demographic communities traditionally underserved by risk
capital.
Traditionally, CIT management oversees CIT GAP Funds along with advice from the GAP
Funds Investment Advisory Board (IAB). CIT will maintain the IAB for GAP-related specific
company investment advice. The IAB will also form the nucleus of a broader division
Investment Advisory Committee. The division committee will add representatives from the
regional and national angel and venture capital communities, as well as corporate strategic
partners, to advise management and the VIPA Board on new investment programs and policies.
Primary objectives for the Investment Division in the upcoming fiscal year include continuation
of the CIT GAP Funds investment programs to:
11
Identify investment opportunities and provide equity investments that catalyze attract
additional private investment.
Provide for continuity and predictability for companies currently in the CIT GAP Funds
portfolio.
Scale up the CIT GAP Funds program to include a three-stage pipeline model to support
companies through their seed-stage progression: Seed Stage I - Innovation (Pre-GAP),
Seed Stage II - CIT GAP Funds, Seed Stage III – CIT GAP Funds Spin-Out fund.
Seed Stage I will provide for an increased number of pre-GAP seed-stage investments across the
Commonwealth, closer relationships with Virginia ecosystem partners in placing capital and
value-added entrepreneurial training to selected portfolio companies. Seed Stage II is our current
GAP Funds profile. In support of Seed Stage III, CIT will examine alternatives to aggregating
and deploying increased private capital into CIT GAP Funds portfolio companies and other
startups aligned with CIT's investment mission. These alternatives may include the launch of a
CIT GAP Funds “spin-out" fund, building on the CIT GAP Fund's strategic sector investment
track record.
In support of the VIPA transition, the Investment Division will implement two additional
measures:
Develop proposals and policies to support the launch of an Indirect Investment Program.
These may include CIT's support of investment in sidecar funds or intermediary funds
aligned with CIT's investment mission.
Work with the CIT CEO and Board of Directors toward the appointment of an Advisory
Committee on Investment that will advise the Investment Division and assist the
Investment Division and CIT Board on making biennial recommendations to the
Governor regarding investment strategy.
COVID-19 Response
The Investment Division will work closely with other VIPA operating divisions, CIT's Chief
Executive Officer, the CIT Board of Directors, and Virginia's government to support
CommonwealthConnect response to and recovery from the COVID-19 pandemic. The
Investment Division will propose modifications to the GAP Funds' investment parameters in
anticipation of contraction in the angel and non-institutional seed investment markets.
Modifications include and increase the number and dollar size of its seed-stage transactions. The
Division will also examine the feasibility of augmenting Virginia's resources by aggregating
capital from private investment sources to deploy into Virginia's early-stage companies.
Additional measures may include the identification and investment "targeting" of Virginia's
high-growth prospect companies with technologies or solutions deemed critical to (1) care-
giving for Virginia's COVID-19 afflicted, (2) assisting those Virginians displaced by the
economic impact of COVID-19 or (3) rebuilding Virginia's "post COVID-19" economy.
12
EXECUTIVE FUNCTIONS
Strategic Initiatives
The Strategic Initiatives Department will lead the execution of the legislative mandate to
"provide leadership for strategic initiatives that explore and shape programs designed to attract
and grow innovation in the Commonwealth" (§ 2.2-2355). In FY21, the department's efforts
focus on the continuing execution of the three primary activities, Smart Communities,
Unmanned Systems, and the DHS SCITI Labs program. Management expects all activities to
continue but will make adjustments to tasks due to the schedule impacts and limitations on group
activities from COVID-19 restrictions.
In addition to these primary activities, Strategic Initiatives will support the transition of
Broadband to DHCD, and explore three potential new areas:
A Maritime Center of Excellence centered around Hampton Roads. A working group
with broad stakeholder representation has already been formed in FY20 and will re-
engage once COVID restrictions are relaxed.
Augmented Reality/Virtual Reality (AR/VR) in conjunction with Shenandoah
University. The Shenandoah Center for Immersive Learning (SCIL) has advanced
AR/VR capabilities. The Center recently created a commercial spinout, VOTU, with a
healthy business plan that has already generated some customers and revenue. CIT will
continue as a mentor for VOTU and explore opportunities to build a more significant
industry group in the Winchester region.
Quantum computing. Activity related to quantum computing will include efforts to
validate the potential for industry formation and growth. Anecdotal feedback indicates
interest in this area in the business community. For instance, the Greater Washington
Board of Trade included this area in its strategic plan. There are nascent efforts in
universities such as George Mason and the potential for synergy with CCI.
Geographically the proximity to the Federal government as a likely early customer for
commercial offerings provides Virginia with a competitive advantage. Compared to other
disciplines such as Artificial Intelligence or Data Analytics, which tend to collections of
techniques across a variety of use cases, Quantum Computing offers the potential for a
vertically focused industry cluster of hardware and software ventures.
Other potential initiatives and external funding opportunities under § 2.2-2355 will be pursued
during FY21, as opportunities provide possible mission support and available staff time allows.
Management will defer activity on the Virginia Innovation Index (VII, "the Index") until FY22.
To provide a more comprehensive framework across this range of initiatives and COEs, and per
the legislation § 2.2-2359, the Strategic Initiatives Department will work with SCHEV and
13
propose a model in Q1FY21 for how initiatives and COEs are formed, matured, and transitioned,
as a basis for an integrated set of recommended oversight processes.
Appropriated Strategic Initiatives budget for FY21/22 biennium budget is $1M per year for each
of the two years, and for each of the two areas – Smart Communities and Unmanned Systems.
SCITI Labs' funding is approximately $1.7M. Management expects the federal government to
authorize an additional estimated $2M during the current federal FY ending September 30, 2020.
This funding will support all current staff who become part of the FY21 Strategic Initiatives
team. Management projects the need to add one to two new hires for adequate program support.
Management will assess the need for new staff should budgets not meet our expectations.
Remaining funds will provide direct program support, including pilot project initiatives under
Smart Communities and Unmanned Systems, and subcontracts under the SCITI Labs program.
Smart Communities
Smart Communities activities will continue to focus on pilot projects across Commonwealth,
with the intent being "Community-Driven Innovation," supporting early stages of initiatives that
develop capabilities identified and desired by the communities involved. Project selection will
seek to achieve geographic diversity across Commonwealth, in addition to technology and
vendor diversity, with a preference for smaller, innovative Virginia companies.
Current activity around an IoT security and privacy testbed in Stafford County is likely the
showcase project for Smart Communities in FY21. Management believes this offers a model
from which other communities can follow and learn. A second primary focus is an integration
with the Commonwealth Data Trust model that the Chief Data Officer, Carlos Rivero, is
establishing. Other numerous discussions and potential pilots are in progress and will evolve
throughout FY21, consistent with processes and budget. The goal is to support four pilot projects
in FY21.
In addition to the pilot activities, a goal of the Smart Communities effort is to establish a CIT-
level advisory group in Q1 FY21, modeled after the successful Unmanned Systems Advisory
Board. The objectives of this group will be to help formulate policy and process
recommendations, support outreach and suggest and connect potential pilot project opportunities,
advise on approaches for scaling Smart Community activities, and provide a core advocacy
group to support ongoing Smart Community activities.
Unmanned Systems
The Unmanned Systems Center at CIT will continue to catalyze the growth of autonomous
systems, vehicles, and technologies in Virginia. The Center has established itself as the nexus
for collaboration between businesses, investors, universities, entrepreneurs, and government
organizations, which led to Virginia's recognition as the top state in the country for UAS by
Business Facilities Magazine. The Unmanned Systems Center will update the Strategic Plan for
14
UAV Industry Development to provide a vision for UAV infrastructure investment, commercial
operations, and legislative and governance framework.
Key priorities in FY21 in support of this strategic vision include:
Launching the VA FIX (Flight Information Exchange) in partnership with Virginia’s
Department of Aviation, Department of Transportation, and private partner ATA.
Promoting the use of UMS-based solutions to the COVID-19 emergency response.
Creating new pilot projects with Virginia state agencies and private companies to
demonstrate the use of UMS technology.
Developing partnerships for Virginia companies with major service providers (package
delivery, public safety, and infrastructure.)
Supporting the Mid Atlantic Aviation Partnership (MAAP) as it expands services beyond
IPP.
Creating a UXS speakers bureau of experts to help promote the value of this critical
industry.
The Unmanned Systems Center leads the Commonwealth's participation at the industry's largest
international event, Xponential, with support of key corporate sponsors under the Virginia
Pavilion banner. A 24-member advisory board and an extensive stakeholder community bring
together expertise and leadership from across Virginia to guide strategies and priorities in the
Center. The Center will continue to maintain the Commonwealth's UMS website and Virginia's
Unmanned Systems Directory and to serve as the central source for information and assistance
related to the unmanned systems landscape in Virginia.
SCITI Labs
The SCITI Labs program will enter into a new contract with the U.S. Department of Homeland
Security (DHS) for FY21. The new contract has initial funding of $1.7M, with a ceiling of
$4.2M per year over four years. Based on discussions with DHS regarding more funding,
management set a conservative revenue target of $2M for SCITI Labs in FY21.
The primary focus of this program will be continued strong execution against the defined
Program Plan and customer technology interests. Current interests include:
Detection of wildfire ignition using ground-based IoT sensors
Vehicle inspection at speed
Smart buildings and communities
UAV and other Public Safety-related technologies
Infrastructure protection against a range of threats, including cybersecurity and chemical
release threats, in addition to more traditional threats
15
Policy, Communications and COV Engagement
Marketing and Communications
The new VIPA authority transition and company renaming efforts will drive many of the
priorities, messaging, and marketing tactics in FY21. Thoughtful, well-planned, inclusive
communications are critical to the launch of the Authority; business agility will be a significant
factor in the success of the project. The communications team will also prepare a transition
marketing plan for VIPA and a plan to rebrand CIT. The communications team expects to be
responsive to stakeholders through the VIPA transition while maintaining the current level and
quality of public-facing communications for all CIT business units through the change.
In FY21, we will continue to build and expand on the successful marketing strategy and tactics
of the past year, while also planning and executing the new Authority plan. The communications
strategy and development initiatives in FY20 provide a solid foundation for communicating in
FY21, including through the VIPA transition, program changes, and the rebranding of CIT.
Foundations for FY21 Communications Summary
FY20 was transformative for CIT communications. CIT successfully refreshed the brand, created
consistent messaging across the organization, refined program definitions, and expanded
outreach tactics. Through these efforts, we significantly increased engagement with the
community, our stakeholders, and the world. On LinkedIn, CIT had a 900% increase in views
and a 1400% increase in content interaction – meaning people clicked on our posts and paid
attention to our messages. On Twitter, there was a 400% increase in impressions and
interactions. On Facebook, we have more than doubled our audience and exchanges as well.
CIT reaches more than five hundred thousand people per year through our social media. CIT.org
averages over 10,000 visitors per month, and the number is growing. We do not expect the VIPA
transition to affect these results. Management will continue to build on them through the new
Authority transition and CIT renaming process.
The communications team also launched a new website for the organization on a newly upgraded
platform in FY20. The leadership team updated the language and improved the descriptions of
CIT programs. The team updated the site to make it mobile-friendly, and easy to navigate and
understand, with well-defined areas and illustrative, brand consistent graphics. The FY20
communications strategy and tactical execution prepared the groundwork for continued
successful communication programs in FY21.
The new platform allows us to post dynamic, up to the minute information on programs, events,
and resources that we were not capable of executing before. An example is the recent COVID-19
resource webpage. These updates and upgrades will help the new authority transition process in
FY21.
16
The new platform has tools to increase search engine optimization of our programs, measure
traffic, and gain insight into the information of most interest to people. The new platform will
make the transition to VIPA and a re-branded CIT more efficient and timely.
FY21 Communications Priorities
FY21 initiatives will build on the success of the previous year and evolve to meet the demands of
the new organization transition. Marketing communications priorities follow:
Continuation of CIT marketing through VIPA transition
Continuity of ongoing marketing communications for each of the divisions and
initiatives.
Maintain the CIT brand and communications tactics while congruently working
through the VIPA transition.
Create and execute a communications/marketing plan for the new VIPA authority
Create a marketing plan for VIPA transition and renaming project.
Work with leadership, the board, and stakeholders on the marketing plan, input, and
timeline.
Communicate and get internal buy-in on the benefits/definition of VIPA by the end of
August 2020 and develop a comprehensive communications strategy to introduce
VIPA to Virginians.
Work with the Secretary of Commerce and Trade to create a marketing and
communications plan for VIPA rollout.
Train board members and staff on consistent messaging of VIPA.
Create and execute a timeline and communications plan for renaming/rebranding
CIT
By the September CIT board meeting, the goal is to have an agreement in place with
the CIT Board on the name change process.
Name change implementation by the end of FY21.
New Website
Update website to reflect the Authority and re-branded CIT.
Timeline dependent on the marketing plan and how extensive the changes are to the
site and branding.
New Office Location
Design/Branding/Publicity – Timeline TBD.
17
Business objectives for individual business units
All CIT communications will flow up from the individual business unit objectives.
Below is a graphic representation of CIT's communication approach. Each business
unit has its own strategic messaging and owns uniquely defined outcomes while all
are underneath the CIT, and eventual VIPA/re-branded CIT overall marketing
communications umbrella.
Finance and Administration
Chief Financial Officer
In FY 21, VIPA consolidates oversight at the authority level for multiple state-funded organizations.
Those organizations include the Center for Innovative Technology (CIT), the Virginia Catalyst (also
known as the Virginia Biosciences Health Research Corporation (VBHRC), the Commonwealth Center
for Advanced Manufacturing (CCAM), the Commonwealth Cyber Initiative (CCI) and the
Commonwealth Center for Advanced Logistics Systems (CCALS). The Chief Financial Officer of CIT,
the managing not for profit for VIPA in FY21, will 1) manage the financial responsibilities of the CIT
organization and programs funded in CIT and 2) support the VIPA Board of Directors in its financial
oversight of the other state-funded organizations under the VIPA umbrella. CIT is seeking the
Administration's and outside legal counsel's advice on the legal relationship between VIPA, CIT and the
other organizations to help clarify governance roles and accounting requirements.
The CIT Finance and Administration (F&A) Group promotes the financial well-being of the CIT
organization. The CFO leads CIT’s F&A group, which is responsible for all financial, legal, and
administrative functions of the corporation, including the design and operation of a federal and state
18
compliant financial management system. Key priorities of the F&A Group are to independently evaluate
the quantitative and qualitative return on investment of the programs in CIT, ensure that programs operate
within the agreed-upon financial envelope, and maintain the stability of the organization through sound
financial management.
Human Resources
Human Resources (HR) must confront many challenges in its operational activities. CIT is facing
significant adjustments with the new Virginia Innovation Partnership Authority (VIPA)
transition. CIT will be experiencing considerable amounts of change with evolving legislation
and funding, as well as the succession of a new Board. CIT is also researching new office
geographic locations with the sale of the Herndon location. Given these factors and levels of
uncertainty, it is even more critical that employees embrace change and the opportunity it brings.
HR will take a leadership role and engage in an aggressive strategy to provide services in support
of VIPA's and CIT's vision and mission. HR will work with management to value human capital
and align it with company initiatives, values, strategies, and the needs of all stakeholders.
Management's goal is that CIT remains a great place to work for employees with a passion for
creating economic opportunities for others. Management will take affordable steps to maintain
the morale and performance of our valuable employees.
In support of the CIT mission, HR will engage with leadership on the following objectives:
Maintain the skills and leadership necessary to successfully carry out CIT's mission
and vision through workforce and succession planning.
As the transition, funding, and geographic locations evolve, a critical task will be to focus
on staffing considerations. CIT commits to maintain its mission-focused team through
workforce design, staffing plans, and succession planning that consider current skills
gaps, an aging workforce, and future staffing expectations.
Recruit, hire, motivate, and retain high performing, diversified talent in a
workforce that is highly geographically distributed.
CIT has proven its effective recruiting processes by the caliber of its employees. CIT will
continue to maximize our human capital by hiring employees from a diverse pool of
highly qualified candidates and by broadly communicating employment opportunities to
a distributed audience. CIT has a goal to retain our current valued employees who are
critical to our reputation and success. We intend to manage attrition rates by continuing
flexible remote working policies as CIT's distributed workforce expands.
Success in our mission requires high performance from our leaders and staff. CIT will
ensure a high-performance workforce and continue to conduct annual reviews that
effectively link performance with organizational goals. CIT continues to use Specific,
19
Measurable, Actionable, Responsible, and Time Bound (SMART) goals to predict
outcomes and ensure impartial evaluation.
Increase engagement that fosters employee commitment in a rapidly changing
environment.
HR will continue to read the pulse of the organization to engage employees, boost
morale, fulfill expectations, and inspire commitment. Together with leadership, HR
intends to bestow greater emphasis on employee investment and development to ensure
the stability and competence of our workforce. Our goal is to expand engagement by
assessing needs and investing in training platforms to promote education for remote
working that also accommodates strategy for replacement.
Support the transformation of total compensation programs through analysis and
benchmarking.
To retain talent, CIT commits to offering unique employee value propositions in return
for employee knowledge, skills, and capabilities. HR will recommend to the Board
Compensation Committee that we reevaluate our current compensation programs to align
with market structure.
Update policies and procedures that coincide with the new VIPA.
CIT will uphold its commitment to the Commonwealth for a seamless transition in
support of the new VIPA organization. HR will ensure that HR policies and procedures
are standardized, documented, and communicated promptly and monitor compliance.
Systems
The Systems plan under the auspices of the CIO will focus on continued evolution to support a
fully distributed and multi-facility workforce while maintaining a sound security posture. Our
need for remote work, resulting from the COVID-19, stress-tested our systems architecture with
generally positive results. Management anticipates no significant system changes aside from the
incremental addition of remote capabilities to the CIT baseline, such as Diplodocus and Google
Meet.
When operation resumes in multiple commercial office facilities, the Systems area will evaluate
needs in each high-traffic location and on a case-by-case basis, potentially installing
infrastructure modeled on the private network segment implemented in The Gather.
From a security posture, the primary goals are to comply with NIST 800.53 Security and Privacy
Controls and address any identified issues. Our security controls continue to be a combination of
VITA controls and separately implemented CIT controls, using the NIST 800.53 risk
management guidelines.
20
CIT Locations and Relocation
CIT works to provide support to all regions of Virginia. CIT staff holds or participates in
hundreds of community engagements across Virginia each year. In FY20, CIT staff drove the
equivalent of all the roads in Virginia twice to get to community engagements. Our meetings
and events reach every corner of Virginia from Abingdon to Alexandria and Winchester to
Virginia Beach. Physical office presence has never limited CIT staff in connecting with Virginia
communities.
In FY20, CIT operated from two physical locations, including Herndon and Richmond, as well
as from employees' homes for our remote workers. FY21 will continue our model of remote
working and working out of offices in Richmond and Northern Virginia. Richmond is the
headquarters for VIPA and CIT effective July 1, 2020. The CIT complex in Herndon, the
Northern Virginia location has been sold and the new proprietor has taken ownership.
For FY21, CIT will continue to use building operating reserves to fund offices in Richmond. CIT
also has a $1 lease to remain in the Herndon building until March 31, 2021. The General
Assembly's budget provides no appropriation or rent for any CIT locations in FY21. As such,
CIT is holding informal discussions with brokers to identify possible office space in Northern
Virginia following the end of the lease. CIT management is also working with the
Administration to add appropriations for rent in the next budget session. Otherwise, the company
is unable to enter any future leases for space.
Most importantly, our sheltering-in-home practices during the COVID-19 pandemic demonstrate
our resiliency to operate regardless of access to physical facilities. CIT carried out its vital
mission while ensuring the safety of our staff and our stakeholders.
Major Operating Risks and Mitigations
All corporate transformations come with significant areas of risk during the transformation
period. Below are the major areas of risk in this operating plan and mitigations to those risks.
Board Governance – Inadequate Board governance leads to loss of reputation, financial
mismanagement and operational disruption. VIPA is a new Authority replacing the
Innovation and Entrepreneurship Investment Authority (IEIA) on July 1, 2020. It is critical
that a thoughtful approach to VIPA Board development and transition be undertaken to avoid
disruption to programs in the not-for-profits and institute the appropriate Authority and legal
governance.
o Mitigation – Enactment and budget language that keeps the IEIA Board and CIT
intact and named the Managing Not For Profit provides the context for a
thoughtful, smooth Board transition.
21
o Mitigation – IEIA and CIT Board members and management created a transition
committee preparing transition briefings, legal options and a high-level roadmap
for successful Board transition.
COVID-19 Restrictions – Continuation into FY 21 of COVID-19 related restrictions on
business activity impair the ability for CIT to continue operations as planned.
o Mitigation – Building on CIT’s direction to move to a distributed workforce
across Virginia, the Board, staff and management implemented procedures and
system enhancements to continue all operations and governance during the
Governor’s directed shelter in place.
o Mitigation – CIT management is preparing an action plan to allow employees to
re-enter CIT facilities across Virginia. Our emphasis will be on the safety and
security of our employees as well as the mitigation of legal risk of returning to
work in our offices.
Funding Cuts – Substantial budget cuts reflecting re-prioritization of funds to COVID-19
related programs disrupts program plans and staffing.
o Mitigation – CIT management modeled scenarios of 20% and 30% cuts in general
funding and actions in response to cuts that allow all programs to continue at a
reduced level of activity but maintain all staff. The purpose of maintaining staff is
to be able to get back quickly to normal program activity levels should funding
allow.
Key Personnel Departures – FY21 brings substantial changes in Board governance,
programs and funding for VIPA and CIT. Funding uncertainty early in the year also
brings stress to the organization. It is possible key staff may depart during this period.
Mitigation – Management has undertaken a consistent program of communications
to employees to address uncertainty regarding the company as best as possible.
Management also prepared succession plans for key personnel.
22
APPENDIX A
Corporate Scorecard FY21
VIPA Governance and Transition
Objectives Success Metric FY21 Measure Primary
Accountability
VIPA transition items ready for VIPA Board Board briefing book complete Complete by August 1, 2020 CEO
engagement
Complete by September 1, 2020
Governance items ready for new Board
review
Establish the Advisory Committees on Advisory Committees engaged on division Ready to present Advisory Committee VP,
Commercialization topics (initial) candidates to VIPA Board by Commercialization
September Division
Ready to present Advisory Committee
(long-term) candidates to VIPA Board by
December
Initial formal or informal Advisory
Committee meeting by December 31,
2020
Establish the Advisory Committee on Appoint members from diverse regions and Ready to present Advisory Committee VP, Entrepreneurial
Entrepreneurial Ecosystems underrepresented communities candidates to VIPA Board by Sepember Ecosystems Division
Initial formal or informal Advisory
Committee meeting by December 31,
2020
Establish the Advisory Committee on Investment Appoint members from diverse regions and Ready to present Advisory Committee VP, Invesments
underrepresented communities candidates to VIPA Board by Sepember Division
Initial formal or informal Advisory
Committee meeting by December 31,
2020
Engage consistently and visibly with VIPA Delivery of highly publicized, broad Semiannual virtual and permissible in- CIT Leadership team
stakeholders across the Commonwealth invitation stakeholder events highlighting person, dual location events
VIPA, CIT programs and audience
participation
23
Commercialization Division
Objectives Success Metric FY21 Measure Primary
Accountability
CCF – Solicit, process, award and administer a robust pipeline of high-potential private Execute FY21 private Announce awards VP,
sector CCF projects sector solicitation between January and Commercialization
March 2021 Division
Report on CRCF and VRIF-funded outcomes and FY20 projects Effectively track October 1, 2020 VP,
outcomes in omnibus submission Commercialization
Annual Report Division
Define CCF’s FY22 approach, including guidelines for higher ed solicitation Board approval in Q4 Present to VIPA Board VP,
FY21 by March 31, 2021 Commercialization
Division
Develop planning / transition model for Commonwealth centers of excellence engaged in Develop FY22 plan Draft model to Board CTO / CIO
commercialization of university research within the VIPA purview (10/2020) VP,
Final COE model (11/20) Commercialization
Division
Advance founder-friendly policies throughout Virginia.This work will be deferred until Develop FY22 plan Inclusion in FY22 VP,
FY22. Operating Plan and Commercialization
Budget Division
Identify allowable uses of buildings owned by public institutions of higher ed for research- Develop FY22 plan Inclusion in FY22 VP,
led spin-offs and student commercial initiatives. This work will be deferred until FY22. Operating Plan and Commercialization
Budget Division
Virginia Innovation Index – assisting Strategic Initiatives Division by reviewing and advising Develop FY22 plan Inclusion in FY22 CTO / CIO
on development of VII. This work will be deferred until FY22. Operating Plan and VP,
Budget Commercialization
Division
Investment Division
Objectives Success Metric FY21 Measure Primary
Accountability
VFF Operations – In partnership with Entrepreneurial Number of Investments Placed Goal: 12-16 VFF VP, Investments
Ecosystems initiatives, identify pipeline and close investments Investments Placed by Division
for the Virginia Founders Fund. May 31 2021
GAP Fund Operations – Identify, process and close a robust Number of Investments Placed Goal: 8-12 GAP VP, Investments
pipeline of seed stage investments and maintain portfolio Leverage Cash Investments Placed, Division
performance to recover all invested capital over the life of the Rate of Return including Innovation
investment program. Investments, by May 31
2021
Goal: At least $20M in
Initial and Follow-On
Capital from Non-
Commonwealth Sources
Goal: 1.2 X Total ROR
Indirect Investment Policies - Develop a proposal for and Indirect Investment Policy Goal: Formulate Indirect VP, Investments
policies to support the launch of an Indirect Investment Formulation Investment Policies for Division
Program that may include CIT’s support of investment in VIPA Board review by
sidecar funds or intermediary funds aligned with CIT’s 12/1/20
investment mission.
24
Entrepreneurial Ecosystems Division
Objectives Success Metric FY21 Measure Primary
Accountability
Launch statewide entrepreneurship information portal Gain understanding of existing By 10/31/2020, meet and solicit VP, Entrepreneurial
entrepreneurial ecosystem feedback from 20+ state & regional Ecosystems Division
resources, and assess need for stakeholders incl. entrepreneurs,
additional resources incubators & angel groups
launch portal “Go live” no later than 5/31/2021
Establish Regional Innovation Fund (RIF) RIF ready for VIPA Board approvel By 12/31/2020, complete all legal CEO, CFO, VP,
and procedural tasks required to Entrepreneurial
create the RIF Ecosystems Division
Federal Funding – Provide education programs (in-person and # of companies receiving mentoring By 5/31/2021, provide mentoring VP, Entrepreneurial
online) to support companies seeking to raise funds through and training support and training to 200 companies Ecosystems Division
state and federal grants and contracts
Co-fund entrepreneurial ecosystems projects identified by Align with GO Virginia ecosystem By 9/30/2020, meet with GO VP, Entrepreneurial
GO Virginia projects, and where VIPA funding Virginia leadership in Richmond and Ecosystems Division
provide benefits in the 9 regions
Develop grant application process to By 12/31/2020, develop and
ensure fairness and efficacy announce grant application process
Deploy funds in FY21 By 5/31/2021, commit/deploy
grants
Co-fund Innovation Commercialization Assistance Program Negotiate with GMU’s Mason By 8/31/2020, execute ICAP VP, Entrepreneurial
(ICAP) Enterprise Center amount and terms support agreement with GMU Ecosystems
of VIPA’s FY21 support for ICAP
Collaborate with stakeholders to identify and support a Contract with an established provider Executed contract by 12/1/20 VP Entrepreneurial
startup training program designed to foster, grow and of lean-startup training for a Ecosystems Division,
nurture startup tech companies statewide. statewide service offering. VP Investment
Division
Policy, Communications and COV Engagement
Objectives Success Metric FY21 Measure Primary
Accountability
Collaborate with stakeholders, regional ecosystems, and VTA to Establish virtual working group of stakeholders By 10/31/20, working group CEO, SVP Policy, VP
develop and promote a common Virginia brand and statewide established and 1 st meeting EED
outreach strategy held
Develop a plan and outreach strategy By 5/31/21 Draft strategy
plan presented to VIPA BOD
Collaborate with stakeholders, regional ecosystems, and the Draft Legislative Agenda for 2021 Session By 10/31/20 provide VIPA CEO, SVP Policy
VIPA Policy Committee to recommend policy, legislation and BOD with recommended
investment that advance innovation and entrepreneurship legislative and budget
priorities
Continuation of CIT marketing through VIPA transition Maintain the CIT brand and comms tactics Maintain/increase numbers of Director MarCom
while congruently working through the VIPA social media interaction
transition /quality of forward-facing
comms across all channels
Create and execute a communications/marketing plan for the VIPA transition comms plan created and Successful transition to the Director MarCom
new VIPA authority executed new authority from a comms
perspective internally and
externally
Create and execute a timeline and communications plan for Agree on defined process for name change – • Key stakeholders identified Director MarCom
renaming/rebranding CIT 9/20 BOD approval • Vision/Objective/Strategy
CIT name changed and rebrand completed – defined
7/21 • Budget/timeline/plan
• All marketing materials/ forward facing • Execution milestones
comms/website changed • CIT NewCo Name & brand
completed
New Office Location • Communicate to public on new • Announcement made Director MarCom
location/update all forward facing comms about relocation across all
• Assist with design of FF&E/branding of new comms channels
space
Business objectives for individual business units Continue ongoing marketing and comms for Detail in FY21 Operating Plan Director MarCom
each of the divisions and initiatives
25
Strategic Initiatives
Objectives Success Metric FY21 Measure Primary
Accountability
Smart Communities – conduct or initiate smart community pilot projects # of pilot projects conducted or 3 pilots projects CTO
with a diverse set of communities initiated
Smart Communities – establish Virginia Smart Community Advisory Group Advisory Group established and - Advisory Group established CTO
to provide strategic guidance meetings conducted by 12/20
- 2 Advisory Group meetings
Unmanned Systems – update UMS Strategic Plan Updated Plan defines transition to - Draft Updated Plan 12/20 Dir, UMS
industry growth - Updated Plan 3/21
Unmanned Systems – launch VA-FIX Operational Demonstration VA-FIX prototype functional Dir, UMS
and available to operational
users by 12/20
Unmanned Systems – maintain UMS Speakers Bureau and conduct Number of presentations conducted 4, at least 1 per quarter Dir, UMS
presentations/demonstrations/webinars to relevant venues/audiences opportunities realized
Engage and educate key State Agencies on use of UXS Pilot projects, MOU’s, other forms of At least 1 new pilot project Dir, UMS
partnering
Communications and Outreach to include Stakeholders, Legislators, and Participate in major outreach events 3 major outreach events Dir, UMS
Industry through major outreach events such as Xponential and Legislative to update legislators and introduce
briefings companies to opportunities in
Virginia
DHS SCITI Labs – successful ongoing execution of SCITI Labs program Revenue generation - $2M top line revenue CTO
Customer satisfaction - Positive customer feedback
VIPA Centers of Excellence – Develop planning/transition model for various COE Planning model complete - Draft model to Board CTO
Centers of Excellence (COE) within the VIPA purview 10/2020
- Final COE model 11/2020
Virginia Innovation Index – This work will be deferred to FY22 Develop FY22 plan Inclusion in FY22 Op Plan and CTO
Budget
Finance and Business Operations
Objectives Success Metric FY21 Measure Primary
Accountability
Financially Sound Operations – Continue to operate CIT to Positive operating fund net asset $50k - $100k CFO
achieve a positive operating fund net asset position. position
Review quarterly management reports, per Item 135 D2 of Obtain CIT Finance Committee and Presentation by CFO to CIT FC at CFO
FY2021/FY2022 biennium budget, with CIT Finance Committee CIT Board approval of reporting. Fall 2020 meeting. Approval
(FC) and CIT Board. based on timeline set at Fall 2020
meeting.
Document and implement process for managing CIT’s and the Obtain VIPA Board approval of Presentation by CFO at 2 nd board CFO
Centers of Excellences’ (pass-through entities) reporting to the reporting. meeting. Approval based on
VIPA Board. timeline set at 2 nd board
meeting.
26
Human Resources
Objectives Success Metric FY21 Primary
Measure Accountability
Maintain skills and leadership necessary to successfully carry out CIT’s Succession plans updated January 2021 Dir., Human
mission and vision through workforce and succession planning. Resources
Recruit, hire, motivate, and retain high performing, diversified talent in a Overall performance metrics FY20 YE Dir., Human
workforce that is highly geographically distributed. Performance Resources
Review
Employee attrition rate
<20%
Increase engagement that fosters employee commitment in a rapidly Training strategies in place July 2020 Dir., Human
changing environment. Resources
Support transformation of cash compensation and benefits programs Benchmark total compensation programs FY21 year end with Dir., Human
through analysis and benchmarking. recommendations Resources
for the next
biennium budget
Update policies and procedures to coincide with new VIPA organization. Update policies and procedures FY21 year end Dir., Human
Resources
Systems
Objectives Success Metric FY21 Measure Primary
Accountability
Security posture – conform to NIST 800.53 APA IT Audit findings resolved. • All audit findings resolved or addressed CTO
• Annual Risk Management Memo to
CEO complete
Operating Environment – complete transition to support fully Updated IT baseline • Updated IT baseline documented to CTO
distributed and multi-facility operations support fully distributed workforce
Transition – evolve IT infrastructure to support new VIPA Updated IT baseline • Updated IT baseline documented to CTO
structure support new VIPA structure
27
APPENDIX B
Financial Performance
The FY2021 VIPA $45,700,000 budget consists of $20,000,000 in one-time non-general fund
appropriation from the CIT headquarters' building sale proceeds and $25,700,000 of general fund
appropriation. $25,350,000 of the total is pass-through funding to several Centers of Excellence. The
remaining $20,350,000 is for CIT programs and operating base. The budget includes an operating base
reduction of $196,485, as compared to CIT’s FY2020 operating base funding.
The FY2021 financial profile reflects a conservative, risk-averse approach, intended to promote economic
stability while achieving the programmatic objections outlined in the operating plan.
28
Center for Innovative Technology
Fiscal Year 2021 Budget
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned
Discretionary Grants & Commercialization Investments Ecosystems Initiatives Systems
Fund Contracts Division Division Division Fund Fund Total
(In Thousands)
Beginning Balance at 7/1/2020 $ 362 $ 357 $ - $ 13,365 $ 340 $ 1,111 $ 15,535
REVENUE
General Fund Appropriation $ 3,250 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 10,350
Non General Fund Appropriation - Building Sale Proceeds $ 10,000 $ 10,000
Interest, Sponsorship, Return on Investment $ 219 $ - $ 219
Building Reserve $ 731 $ 731
Contracts & Grants $ 1,760 $ 1,760
Total Revenue $ 4,200 $ 1,760 $ 10,000 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 23,060
EXPENSES AND TRANSFERS
Operating Programs Net of Over-applied Indirects $ (634) $ (634)
Designated Programs $ 4,413 $ 6,695 $ 8,010 $ 2,000 $ 1,283 $ 1,861 $ 24,262
Building Reserve - Rent $ 731 $ 731
Contracts & Grants $ 1,634 $ 1,634
Total Expenses $ 4,510 $ 1,634 $ 6,695 $ 8,010 $ 2,000 $ 1,283 $ 1,861 $ 25,993
Net Change $ (310) $ 126 $ 3,305 $ (4,910) $ - $ (283) $ (861) $ (2,933)
Ending Balance, GF at 6/30/2021 $ 52 $ - $ - $ - $ - $ 57 $ 250 $ 359
Ending Balance, NGF at 6/30/2021 $ - $ 483 $ 3,305 $ 8,455 $ - $ - $ - $ 12,243
Ending Balance, Total at 6/30/2021 $ 52 $ 483 $ 3,305 $ 8,455 $ - $ 57 $ 250 $ 12,602
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
29
Center For Innovative Technology
Fiscal Year 2021 Operating Budget by Funding Source
Commonwealth Projects Funded By Appropriation & Other Revenue
(in thousands)
Revenue
Commonwealth Appropriation - General Fund $ 10,350
Commonwealth Appropriation - Non General Fund $ 10,000
Interest, Sponsorship, Return on Investment & Miscellaneous Income $ 950
Total Revenue $ 21,300
Expenses
Commercialization Division $ 8,125
Investments Division $ 9,828
Entrepreneurial Ecosystems Division $ 2,450
Strategic Initiatives $ 1,601
Unmanned Systems $ 2,258
Policy, Communications and Commonwealth Engagement $ 1,199
Under-applied (over-applied) indirects $ (1,102)
Total Expenses $ 24,359
Net $ (3,059)
Strategic Initiatives Funded by Contracts & Grants
Program Revenue - DHS Commercial First $ 1,700
Program Expense $ 1,574
Profit/(Loss) $ 126
Program Revenue - SBA FAST $ 60
Program Expense $ 60
Profit/(Loss) $ -
Consolidated Revenue & Expenses & Changes in Net Position
Total Revenue $ 23,060
Total Expenses $ 25,993
Change in Net Position $ (2,933)
Beginning Net Position $ 15,535
Ending Net Position $ 12,602
30
Item 135.D.1a
All planned and actual
revenue and expenditures
along with funding sources
Virginia Innovation Partnership Authority
Fiscal Year 2021 Budget
(In Thousands)
Beginning Balance at 7/1/2020 $ 2,000
Cash Receipts
Commonwealth Appropriation ‐ General Fund Item 135 $ 25,700
Commonwealth Appropriation ‐ NGF Item 135 property sale proceeds 20,000
Total Cash Receipts $ 45,700
Cash Disbursements
VIPA Administrative Expense $ 20
Transfer to CIT ‐ FY2021 Appropriation 20,350
Transfer to CIT ‐ FY2021 Rent from IEIA Building Reserve 731
Transfer to COEs ‐ FY2021 Appropriation 25,350
Total Cash Disbursements $ 46,451
Net Change $ (751)
Ending Balance, Total at 6/30/2021 $ 1,249
Center for Innovative Technology
Fiscal Year 2021 Budget
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned
Discretionary Grants & Commercialization Investments Ecosystems Initiatives Systems
Fund Contracts Division Division Division Fund Fund Total
(In Thousands)
Beginning Balance at 7/1/2020 $ 362 $ 357 $ ‐ $ 13,365 $ ‐ $ 340 $ 1,111 $ 15,535
REVENUE
General Fund Appropriation $ 3,250 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 10,350
Non General Fund Appropriation ‐ Building Sale Proceeds $ 10,000 $ 10,000
Interest, Sponsorship, Return on Investment $ 219 $ 219
Building Reserve $ 731 $ 731
Contracts & Grants $ 1,760 $ 1,760
Total Revenue $ 4,200 $ 1,760 $ 10,000 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 23,060
EXPENSES AND TRANSFERS
Operating Programs Net of Over‐applied Indirects $ (634) $ (634)
Designated Programs $ 4,413 $ 6,695 $ 8,010 $ 2,000 $ 1,283 $ 1,861 $ 24,262
Building Reserve ‐ Rent $ 731 $ 731
Contracts & Grants $ 1,634 $ 1,634
Total Expenses $ 4,510 $ 1,634 $ 6,695 $ 8,010 $ 2,000 $ 1,283 $ 1,861 $ 25,993
Net Change $ (310) $ 126 $ 3,305 $ (4,910) $ ‐ $ (283) $ (861) $ (2,933)
Ending Balance, GF at 6/30/2021 $ 52 $ ‐ $ ‐ $ ‐ $ ‐ $ 57 $ 250 $ 359
Ending Balance, NGF at 6/30/2021 $ ‐ $ 483 $ 3,305 $ 8,455 $ ‐ $ ‐ $ ‐ $ 12,243
Ending Balance, Total at 6/30/2021 $ 52 $ 483 $ 3,305 $ 8,455 $ ‐ $ 57 $ 250 $ 12,602
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
Center For Innovative Technology
Fiscal Year 2021 Operating Budget by Funding Source
Commonwealth Projects Funded By Appropriation & Other Revenue
(in thousands)
Revenue
Commonwealth Appropriation ‐ General Fund $ 10,350
Commonwealth Appropriation ‐ Non General Fund $ 10,000
Interest, Sponsorship, Return on Investment & Miscellaneous Income $ 950
Total Revenue $ 21,300
Expenses
Commercialization Division $ 8,125
Investments Division $ 9,828
Entrepreneurial Ecosystems Division $ 2,450
Strategic Initiatives $ 1,601
Unmanned Systems $ 2,258
Policy, Communications and Commonwealth Engagement $ 1,199
Under‐applied (over‐applied) indirects $ (1,102)
Total Expenses $ 24,359
Net $ (3,059)
Strategic Initiatives Funded by Contracts & Grants
Program Revenue ‐ DHS Commercial First $ 1,700
Program Expense $ 1,574
Profit/(Loss) $ 126
Program Revenue ‐SBA FAST $ 60
Program Expense $ 60
Profit/(Loss) $ ‐
Consolidated Revenue & Expenses & Changes in Net Position
Total Revenue $ 23,060
Total Expenses $ 25,993
Change in Net Position $ (2,933)
Beginning Net Position $ 15,535
Ending Net Position $ 12,602
Item 135.D.1b
By program, total grants
made and investments
awarded for each grant and
investment program,
including CRCF
Item 135.D.1b
As illustrated in item 135.D.1 FY2021 Operating Plan of the managing non‐profit, the following excerpt has been modified to include total budgeted grants and investments planned
for each grant and investment program administered by the managing non‐profit at a total budgeted amount of $11.362M.
Objectives Success Metric FY21 Measure Budget Grant/
Investment Amount
Virginia Founders Fund (VFF) – In partnership with Entrepreneurial Ecosystems initiatives, Number of investments 12‐16 VFF investments placed $1.065M
identify pipeline and close investments for the Virginia Founders Fund.
GAP Fund – Identify, process and close a robust pipeline of seed stage investments and # of investments placed 8‐12 GAP Investments Placed, $3.335M
maintain portfolio performance to recover all invested capital over the life of the including Innovation Investments
investment program
Leverage Cash: amount of initial At least $20M
and follow on investment from
non‐Commonwealth sources
Rate of Return 1.2 x Total ROR
CCF – Solicit, process , award and administer a robust pipeline of high‐potential CCF Execute FY21 private sector Announce awards between January $5.962M
projects; Report on CRCF and VRIF‐funded outcomes solicitation and March 2021 (includes deployment of
CRCF and VRIF prior year
award milestone
achievement)
Entrepreneurial Ecosystems – CoFund entrepreneurial ecosystems projects identified by Align with GO Virginia ecosystem By 9/30/2020 meet with GO Virginia $1.0M
GO Virginia projects, and where VIPA funding leadership in Richmond and in the 9
provide benefits regions
Develop grant application process By 12/31/2020 develop and announce
to ensure fairness and efficiency grant application process
Deploy funds in FY21 By 5/31/2021 commit/deploy grants
Entrepreneurial Ecosystems – Establish the Regional Innovation Fund (RIF) RIF ready for VIPA Board approval By 12/31/2020 complete all legal and Unfunded, structure
procedural tasks required to create established subject to VIPA
the RIF board allocation of proceeds
Total $11.362M
Item 135.D.1c
By program, recoveries of
previous grants or
investments and sales of
equity positions
Recoveries of previous grants, investments and sales of
equity positions are unpredictable and, therefore, not
budgeted.
Item 135.D.1d
Cash balances by funding
source and available,
committed and projected
expenditures of cash balances
Virginia Innovation Partnership Authority
Fiscal Year 2021 Cash Budget
(In Thousands)
Beginning Balance at 7/1/2020 $ 2,000
Cash Receipts
Commonwealth Appropriation ‐ General Fund Item 135 $ 25,700
Commonwealth Appropriation ‐ NGF Item 135 property sale proceeds 20,000
Total Cash Receipts $ 45,700
Cash Disbursements
VIPA Administrative Expense $ 20
Transfer to CIT ‐ FY2021 Appropriation 20,350
Transfer to CIT ‐ FY2021 Rent from IEIA Building Reserve 731
Transfer to COEs ‐ FY2021 Appropriation 25,350
Total Cash Disbursements $ 46,451
Net Change $ (751)
Ending Balance, Total at 6/30/2021 $ 1,249
Center for Innovative Technology
Fiscal Year 2021 Cash Budget
Operating Funds Designated Funds
COV Other COV
Entrepreneurial Strategic Unmanned
Discretionary Grants & Commercialization Investments Ecosystems Initiatives Systems
Fund Contracts Division Division Division Fund Fund Total
(In Thousands)
Beginning Balance at 7/1/2020 $ 313 $ 408 $ ‐ $ 13,589 $ ‐ $ 340 $ 1,199 $ 15,849
Cash Receipts
General Fund Appropriation $ 3,250 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 10,350
Non General Fund Appropriation ‐ Building Sale Proceeds $ 10,000 $ 10,000
Interest, Sponsorship, Return on Investment $ 219 $ 219
Building Reserve $ 731 $ 731
Contracts & Grants $ 1,678 $ 1,678
Total Cash Receipts $ 4,200 $ 1,678 $ 10,000 $ 3,100 $ 2,000 $ 1,000 $ 1,000 $ 22,978
Cash Disbursements
Operating Programs Net of Over‐applied Indirects $ (634) $ (634)
Designated Programs $ 4,413 $ 6,695 $ 8,010 $ 2,000 $ 1,283 $ 1,861 $ 24,262
Building Reserve ‐ Rent $ 731 $ 731
Contracts & Grants $ 1,770 $ 1,770
Total Cash Disbursements $ 4,510 $ 1,770 $ 6,695 $ 8,010 $ 2,000 $ 1,283 $ 1,861 $ 26,129
Net Change $ (310) $ (92) $ 3,305 $ (4,910) $ ‐ $ (283) $ (861) $ (3,151)
Ending Balance, GF at 6/30/2021 $ 3 $ ‐ $ ‐ $ ‐ $ ‐ $ 57 $ 338 $ 398
Ending Balance, NGF at 6/30/2021 $ ‐ $ 316 $ 3,305 $ 8,679 $ ‐ $ ‐ $ ‐ $ 12,300
Ending Balance, Total at 6/30/2021 $ 3 $ 316 $ 3,305 $ 8,679 $ ‐ $ 57 $ 338 $ 12,698
Designated Funds are amounts which are to be spent on a specific purpose stated in the Appropriation Act
Item 135.D.1e
Private investment activity
related to the fund of funds
No activity.
File and source
- File
- 2021-RD69.pdf
- Size
- 1,262,635 bytes
- SHA-256
- c69b5c1173c4e394cf5c3bfa8ca464b799b92783bbf76074e3d9675b39d3af10
- Our copy
- 2021-RD69.pdf
- Original
- No public link identified.