
Decentralization to Innovation: Florida’s Journey in IT Management and the Role of Leadership in Overcoming Challenges
By Victoria Zepp, CEO; Danny Jordan, Senior Advisor; and Chris Veal, Senior Advisor, Team 180 Consulting
Summary
For decades leading up to the year 2000, Florida’s state departments and agencies operated their computer facilities/Information Technology organizations independently. Over the past two decades, the state has experienced numerous challenges and setbacks in its attempt to create and run a central information technology organization. These struggles often earned Florida the lowest rankings in the nation for innovation in state agency IT operations, according to national organizations and industry groups.
The journey toward centralization began in 2000 with the creation of the State Technology Office (STO) by Florida’s legislature. However, this initiative was short-lived, as the STO faced significant operational challenges and was defunded and dismantled by the Florida Legislature in 2005. A second attempt to centralize IT followed in 2008 with the establishment of the Agency for Enterprise Technology (AEIT), but this effort also ended in failure when the agency was defunded in 2012.
During this period, Florida repeatedly found itself without a central IT organization or a State Chief Information Officer (CIO), a distinction that set it apart from every other state in the nation. After the dissolution of AEIT, Florida went two years without a State CIO before the Agency for State Technology (AST) was established in 2014. However, AST encountered significant legislative challenges in 2017, when a bill proposed replacing it with a minimal seven-person office lacking purchasing authority. Governor Rick Scott vetoed the bill, preserving the agency, which was restructured in 2019. Under this new structure, AST became the Division of State Technology (DST), housed within the Department of Management Services (DMS).
Florida’s IT landscape underwent another transformation on July 1, 2020, with the creation of the Florida Digital Service (FDS). Representative James Grant filed the bill for the new office and left the Florida Legislature to become the new State CIO in August 2020. This marks the most recent chapter in Florida’s legislative efforts to modernize and centralize its information technology operations. The journey reflects the state's ongoing commitment to overcoming past challenges and building a cohesive, innovative IT framework for the future.
Detailed History
In 1999, Governor Jeb Bush created the Florida State Technology Office (STO) with its primary mission being the state’s first centralized information technology organization. This ambitious initiative aimed to modernize and unify Florida’s IT operations.
Florida State Technology Office (STO)
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July 2000 – Governor Bush appointed Roy Cales as Florida’s first State Chief Information Officer (CIO), placing him at the helm of the STO.
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August 2001 – State CIO Roy Cales was forced to resign due to personal legal issues unrelated to state government. In the aftermath, scrutiny grew around the STO, particularly regarding its centralized contracts and operations. A 2002 State Auditor General report outlined 28 instances of alleged mismanagement, conflicts of interest, and legal violations in purchasing.
Leadership Challenges and Ethical Scandals
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July 2002 – Kim Bahrami assumed leadership of the STO after serving as interim director following Cales’ resignation. Under her leadership, the STO initiated the controversial MyFlorida Alliance project—a privatization initiative projected to cost $140 million and awarded to two companies.
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August 2003 – Shortly after the award, Bahrami resigned amid growing criticism. In September of the same year, she joined one of the companies involved in the MyFlorida Alliance contract, raising ethical concerns.
Investigations and Fallout
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May 2004: Attorney Simon Marstiller replaced Bahrami as the head of the STO. Her appointment marked a shift in focus as the Governor’s Office prepared for the fallout from another Auditor General report. The report condemned the MyFlorida Alliance project for a lack of cost-saving documentation, insufficient contract requirements, inadequate pricing controls, and a deeply flawed competitive bidding process, which it described as potentially circumvented.
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March 2005: The Florida Department of Law Enforcement (FDLE) launched an investigation into the MyFlorida Alliance outsourcing contract award. While no charges were filed, the findings—detailing mismanagement and procurement violations—were widely publicized in state newspapers.
The End of the STO
The mounting controversies surrounding the STO culminated in swift legislative action. Funding for the agency was removed from the state budget, effectively dissolving the Florida State Technology Office in 2005. This marked the end of the state’s first attempt at a centralized IT organization and set the stage for future efforts to restructure Florida’s IT governance.
Agency for Enterprise Information Technology (AEIT)
In 2009, Governor Charlie Crist appointed David Taylor as State Chief Information Officer (CIO), marking a departure from previous appointments. Taylor brought 27 years of experience in state government IT, making him a seasoned professional for the role. During his tenure, AEIT successfully conducted a year-long procurement to outsource state agency email systems, a rare win in Florida’s tumultuous IT history.
However, discord between the Governor’s Office and the Legislature over the email project led to AEIT's downfall. The Florida Legislature attempted to restructure AEIT into a smaller, less influential agency, but Governor Crist vetoed the bill. This decision ultimately resulted in the agency being defunded and dismantled. Florida was left without a State CIO office for another two years, further hindering centralized IT progress.
Agency for State Technology (AST)
In 2014, the Legislature took another shot at centralizing Florida's IT operations by establishing the Agency for State Technology (AST). Funded with 25 positions and incorporating staff from the Northwood and Southwood state data centers, AST aimed to address Florida’s persistent IT challenges. Jason Allison was appointed State CIO to lead the new organization.
A Rocky Start
Under Allison's leadership, AST implemented controversial practices. Meetings with agency CIOs, previously open to the public, were now conducted behind closed doors, raising transparency concerns. Additionally, many competitively procured IT service contracts were canceled and replaced with no-bid agreements. During the 2015-2016 fiscal year alone, nearly $23 million in no-bid contracts were executed under Allison’s direction.
The Florida Auditor General, Sherrill Norman, released a scathing report criticizing AST’s management, highlighting issues with security, record-keeping, and overall governance. The report triggered Jason Allison’s resignation in February 2017.
A Glimmer of Improvement
Following Jason Allison’s resignation, Eric Larson stepped in as Interim Executive Director and State CIO, bringing a renewed focus on improving Florida’s IT governance. With strong backing from the Governor’s Office, Larson successfully raised Florida’s IT rating from a "D" to a "B+"—a notable achievement in an otherwise challenging landscape. However, in 2018, the central IT organization was downgraded from an independent agency to a division within the Department of Management Services (DMS), marking a significant reduction in authority.
Renamed the Division of State Technology (DST), the new structure operated under the leadership of DMS, signaling yet another shift in Florida’s approach to IT management. In 2019, Larson resigned shortly after Governor Ron DeSantis took office, closing another chapter in Florida’s ongoing efforts to create a stable and effective centralized IT organization.
Florida Digital Service (FDS)
In yet another effort to centralize and modernize its information technology operations, Florida underwent a series of reorganizations that ultimately led to the creation of the Florida Digital Service (FDS). This restructuring marked the latest chapter in the state’s long and complex history of IT governance.
Restructuring and the Birth of FDS
The journey began when the Agency for State Technology (AST) was dissolved, and its functions were merged into the Division of State Technology (DST), housed within the Department of Management Services (DMS). This consolidation brought DST alongside the state’s telecommunications division (DivTel) under DMS, signaling a shift toward integrating IT and communications.
However, within a year, Florida once again restructured its IT governance. Representative James Grant spearheaded legislation that abolished the DST and created the Florida Digital Service (FDS). While the FDS remained a division within DMS, its creation represented a renewed focus on technology innovation and enterprise solutions for state and local governments.
In August 2020, Representative James Grant stepped down from his re-election campaign to accept the role of State CIO. During Grant's tenure as State CIO, some progress was made in securing funding for enterprise cybersecurity solutions for both state and local governments. However, challenges emerged, including implementation hurdles and procurement inefficiencies that complicated operations. Additionally, the Florida Digital Service (FDS) grappled with budget deficits and lingering operational issues at the State Data Center, inherited from its predecessor agencies.
In response to these challenges, the legislature transferred the State Data Center to the Northwest Regional Data Center (NWRDC), managed by Tim Brown in partnership with the Florida State University System. Grant resigned from his role in July 2023, leaving FDS at a critical juncture in its evolution. In a letter to Gov. Ron DeSantis, shared with Statescoop, Grant claimed several achievements across various initiatives, presenting a narrative of progress for a state he had described months earlier in a national meeting as having “a history of doing State tech worse than anyone else.”
A Promising Future with Warren Sponholtz
In August 2024, Warren Sponholtz was appointed State CIO, taking charge of the Florida Digital Service (FDS) at a pivotal moment in its evolution.
A Tallahassee native and U.S. Marine Corps veteran, Sponholtz brought over 22 years of experience in managing complex IT systems across Florida state agencies, including a decade as CIO at the Department of Environmental Protection (FDEP) and two years as Deputy State Chief Information Security Officer (CISO).
Sponholtz is highly respected as a leader by both the public and private sectors, earning optimism from state agency CIOs, IT managers, and industry. His expertise in cybersecurity, risk management, and IT governance is considered vital for addressing Florida’s evolving technological challenges.
Challenges and Opportunities Ahead
As FDS looks to the future, it faces both challenges and opportunities:
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Cooperative Purchasing Agreements: Streamlining vendor tools and services to improve procurement efficiency.
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Cybersecurity Initiatives: Expanding funding and focus on cyber risk management and mitigation.
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Artificial Intelligence Governance: Establishing a formal structure for the safe and ethical use of AI across state agencies.
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Workforce Development: Addressing the persistent challenge of attracting, retaining, and upskilling technical talent in a competitive labor market.
Despite a history of frequent reorganizations—four over the past 15 years—FDS under Sponholtz’s leadership is well-positioned to guide Florida toward a more stable and effective IT future. With strong leadership and a clear vision, FDS aims to transform past challenges into a foundation for innovation and success.
*The Florida Technology Council extends its heartfelt gratitude to Team 180 Consulting for their exceptional work and meticulous research showcased in this article. Since its founding in 1994, Team 180 Consulting has been a cornerstone of success, securing hundreds of millions of dollars in contracts for clients ranging from small businesses to Fortune 500 companies across Florida. With over 130 years of combined expertise, their unwavering commitment to excellence and proven ability to guide clients through Florida's government landscape exemplify their dedication to delivering unmatched service. We appreciate the opportunity to share their remarkable history and accomplishments.
