FLORIDA DEPARTMENT OF FINANCIAL SERVICES

Transcription

1 FLORIDA DEPARTMENT OF FINANCIAL SERVICES DFS AC RFQ #32 FLAIR Study Request for Quotes

2 1. Purpose The Department of Financial Services (DFS) Division of Information Systems (DIS), in collaboration with the Division of Accounting and Auditing (A&A) is issuing this Statement of Work ( SOW ) to define the scope and requirements of this task order ( Task Order ) pursuant to the State Term Contract (STC) for Management Consulting Services, No , Category 1 and Information Technology (IT) Consulting Services, No , Project Area 1. This task order is needed to comply with proviso in the 2013 General Appropriations Act (GAA) requiring DFS to complete a study of the Florida Accounting Information Resource (FLAIR) Subsystem and provide a recommendation to replace or enhance FLAIR. 2. Background Section , Florida Statutes (F.S.), establishes the Florida Financial Management Information System (FFMIS). FFMIS is comprised of the accounting, budgeting, cash management, human resources and procurement subsystems. See Exhibit A. For nearly two decades, all of the FFMIS subsystems ran on legacy technology. To date, only the human resources and procurement subsystems have been modernized. In 2002, the Legislature appropriated funding for the then Department of Banking and Finance 1 to undertake a project to replace the accounting and cash management subsystems, FLAIR and CMS respectively. Project Aspire, as it was called, suffered insurmountable challenges and was ultimately cancelled in In 2010, the Department of Financial Services initiated a project to rewrite the Cash Management System (CMS). This system is being written in Microsoft.Net with a SQL database back end. The first phase of CMS is scheduled for deployment in Thus, the Florida Accounting Information Resource (FLAIR) system has been performing the state s accounting and payroll functions for thirty years. Although it has been maintained and modified over the years to accommodate state and federal mandates, it is becoming increasingly unable to meet the State s changing and growing needs. Issues and concerns with FLAIR include limited integration with the other subsystems (batch vs. transactional processing), incomplete reporting capabilities, inability to perform offsets, inability to schedule and consolidate payments, and insufficient information to perform state level cash forecasting. 2.1 FLAIR Subsystem Formerly known as the State Automated Management Accounting Subsystem (SAMAS), FLAIR is a double entry, computer based general ledger accounting system consisting of the following four components: 1 Effective January 7, 2003, the Department of Banking and Finance and the Department of Insurance merged into the new Florida Department of Financial Services. Page 1 of 25

3 Departmental Accounting: Maintains agencies accounting records and is utilized at the end of each fiscal year to prepare financial statements in accordance with generally accepted accounting principles. Central Accounting: Maintains cash basis records and is used by the Chief Financial Officer (CFO) to ensure that expenditures are made in accordance with the legislative appropriations. Payroll Accounting: Processes the State s payroll. Information Warehouse: A reporting system that allows users to access Central Accounting information and most Departmental Accounting information in FLAIR. Not all agencies use FLAIR exclusively for their accounting functions. Further, there are numerous specialized accounting methods and systems used by state agencies in addition to FLAIR. FLAIR is a mature subsystem, running on an IBM Z114, zos platform at the Fletcher Data Center. FLAIR is fully implemented in 35 state agencies with approximately 12,000+ individual users at 400+ accounting office sites throughout the State. The FLAIR subsystem typically processes 95+ million accounting transactions accounting for a $90+ billion budget and pays 180,000+ State personnel annually. 2.2 Cash Management Subsystem CMS The Treasury receives and disburses funds, invests available balances, performs related accounting functions, cash management operations, and consultations. The Treasury operates separate systems to carry out its responsibilities of monitoring cash levels and activities in State bank accounts, for keeping detailed records of cash transactions and investments for State agencies, and paying of warrants and other payments issued by the CFO. All of these functions are accomplished utilizing client server applications developed by DFS staff. These applications run on an IBM iseries Model 525. File transfer protocol is used to exchange information between the CFO s Office, Department of Revenue, other State agencies, and business partners, i.e., financial institutions. 2.3 Personnel Subsystem People First The Florida Department of Management Services (DMS) is the functional owner of the personnel and procurement subsystems and has outsourced both functions. The personnel outsourcing contract was executed by DMS and Convergys, Inc. (Convergys) on August 21, Convergys was acquired by NorthgateArinso, Inc., (NGA) on June 2, 2010, and the contract with NGA expires August 20, The system, known as People First, is a self service, secure, web based Human Resource Information System (HRIS) comprised of the following modules: payroll preparation, time and attendance, recruitment, benefits administration, human resources management, and organizational management. The system currently runs on SAP version ECC 6.0 HR on Net Weaver 7.0. NGA has performed more than 17,000 customizations to the system platform (back end solution) and web application servers (front end solution), and 588 special interfaces have been built to exchange data between the People First system and external systems (e.g., Department of Financial Services, university personnel systems, insurance carriers). The system streamlines Page 2 of 25

4 and automates many of the state s HR functions, and promotes paperless work processes (e.g., timesheet submission, benefits transactions, and direct deposit). In accordance with proviso in the 2013 GAA, DMS is currently procuring a management consulting firm to conduct a business case study to determine the best and most appropriate human resource model for DMS to procure in a future competitive solicitation. 2.4 Procurement Subsystem MyFloridaMarketPlace DMS and Accenture, LLP (Accenture) executed a contract on October 9, 2002 to implement a procurement solution for the state of Florida utilizing the Ariba application. The state of Florida Ariba application, known as MyFloridaMarketPlace (MFMP), is a Commercial off the Shelf (COTS) package with customizations. The majority of the customizations were required to interface with the state s accounting system, FLAIR. MFMP is web based and provides for state purchasers and vendors to exchange products and services. MFMP allows vendors to register, contracted catalogues of products to be managed and displayed, buyers to find products, place orders, approve purchases, reconcile invoices and approve payment all within one system. Users can create solicitations in the Sourcing module and the Analytics module provides spend analysis and reporting. The system serves state and vendor users and has full procurement capability. The original MFMP contract between Accenture and DMS expired in December Prior to contract expiration, DMS issued a solicitation for continued support services of MFMP and awarded the new contract to Accenture. The current MFMP contract is set to expire on January 31, 2017 and has options for renewal. The MFMP applications that make up the eprocurement solution, and the other state applications supporting MFMP, are listed below: eprocurement Component Buying / Catalogs Paying Invoicing Sourcing/Quoting Contract Management Supplier Integration Reporting Catalog Enablement Supplier Management Solicitation Notification Posting Tool Purchase Order Transparency Tool Ariba Buyer 9r1 Current Supporting Application State Accounting System (FLAIR) Ariba Invoice 9r1 Ariba Sourcing 9r1 Ariba Contract Compliance 9r1 Ariba Supplier Network Ariba Analysis 9r1 Aravo Vendor Information Portal (a DMS developed system) Vendor Bid System (a DMS developed system) MarketView (a DMS developed system) Page 3 of 25

5 3. Scope of Work DFS seeks to engage a management consulting firm with experience in planning and/or managing public sector technology projects, preferably Enterprise Resource Planning projects, to complete a study of the Florida Accounting Information Resource (FLAIR) subsystem and to provide a recommendation to replace or enhance FLAIR. The chosen Respondent ( Contractor ) is expected to leverage the institutional knowledge and artifacts that DFS has from Project Aspire as resources for the study. The Contractor shall complete a study of FLAIR and provide a recommendation to replace or enhance FLAIR. The Contractor shall: 1. Prepare an inventory of all agency systems interfacing with FLAIR. 2. Assess the advantages and disadvantages of enhancing FLAIR. 3. Assess the advantages and disadvantages of replacing: a. FLAIR; b. FLAIR and the Cash Management System (CMS); c. FLAIR, CMS, and the procurement (MyFloridaMarketPlace) and personnel information subsystems (PeopleFirst). 4. Assess the feasibility of implementing an Enterprise Resource Planning (ERP) system 2 for the State of Florida. 5. Identify any specific changes needed in the Florida Statutes and the state s financial business practices to facilitate the recommended option. 6. Complete a FLAIR Study and prepare a final report titled FLAIR Study that meets the requirements outlined in Section Work closely with state staff, and be on site at key points during the project to meet with DFS executives, subject matter experts, Project Manager and Contract Manager. The Contractor s time spent on site shall be agreed upon by both DFS and the Contractor prior to award. 8. Dedicate a Project Manager to manage the engagement for the Contractor. The Contractor s Project Manager shall be DFS primary point of contact with the Contractor for the project. 9. Upon start, maintain all project artifacts (e.g., project schedules, project tracking book, study drafts, etc.) and supporting documents in a project folder on DFS network. 10. Upon start, create a Project Tracking Book utilizing DFS template in Exhibit B. Updates to the tracking book are the Contractor s responsibility and shall be made weekly, at a minimum. 11. Provide written and oral status reports starting within three weeks of contract award, then weekly thereafter, until completion of the project. Dates for oral status reports shall be determined based on the approved project schedule. Status reports are due via to DFS Project Manager and Contract Manager by 12:00pm ET each Friday (unless instructed otherwise in writing by DFS Project Manager) until completion of the project and shall include: 2 Enterprise Resource Planning (ERP) systems integrate internal and external management information across an entire organization: finance/accounting, purchasing, human resources, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Page 4 of 25

6 A narrative description of significant activities that have been conducted or are underway. The progress to date on the study, including tentative conclusions. An explanation of any tasks/activities that are behind schedule and a plan to bring them current. Notification of any problems that have been encountered and their resolution or plan for future resolution. 12. As needed by DFS, the Contractor shall be available upon request to address requests from legislative committees or other bodies to explain the recommendation or answer questions regarding the study. 13. Complete and deliver the following budget schedules 3 with information obtained as part of this study where required: a. Schedule IV B Information Technology Projects b. Schedule XII Outsourcing or Privatization of a Service or Activity c. Schedule XIIA, 1 3 Cost/Benefit Analysis 14. Ensure that all documents prior to being presented for review by DFS staff have gone through an internal quality assurance editorial review so that grammar and formatting errors are minimized. 4. FLAIR Study and FLAIR Study Report The FLAIR Study Report resulting from the Contractor s analysis shall adhere to the requirements set forth in the 2013 GAA Proviso and in section (4), F.S. The report shall address the items listed below and include the following chapters: Executive Summary The Executive Summary shall summarize the results of the study with emphasis on the Contractor s recommendation. This section shall meet the requirements outlined in sections (4)(a), F.S. Chapter 1: Background. The Background section shall meet the requirements outlined in sections (4)(b), (4)(c), and (4)(d), F.S. The Contractor shall consider DFS goals for state financials and provide DFS a formal recommendation for the enhancement or replacement of FLAIR, which must be supported and have a clear basis for the recommendation. At a minimum, this chapter shall include: A. A detailed description of the services currently being performed by the Florida Financial Management Information System (FFMIS) and its functional owner information subsystems. B. A description and analysis of the state s current performance based on existing performance metrics (if available) and compared to organizations of comparable size (e.g., budget). C. The goals that could be achieved through the recommended approach and the rationale for such goals. A citation to the existing or proposed legal authority for any option proposing the outsourcing of a service or activity. 3 These templates can be found on Florida s Fiscal Portal at: Page 5 of 25

7 Chapter 2: Options Analysis The Options Analysis section shall include the analysis of market conditions, trends, and the advantages, disadvantages and costs (direct, indirect and opportunity costs) associated with each option. A. Market Conditions and Trends. The Contractor shall review the current market conditions and trends. Industry and public sector best practices shall be reviewed. At a minimum, the section shall meet the requirements outlined in section (4)(g), F.S., and include: 1) Identification of industry and public sector best practices including technology and operating models. 2) Identification of technology drivers (hardware, software, licensing, staffing, etc.). B. Technology and Operating Model Options The Contractor shall consider DFS objectives for state financials. At a minimum, this section of the study shall include a description and analysis of the various technology(ies) and operating model options. The Contractor shall review the technology and operating options available in the market and analyze the benefits of each considering such factors as scalability, stability, cost, ease of implementation, and DFS goals for state financials. At a minimum, the section shall include: 1) Analysis of available solutions that meet Florida s needs. 2) Description of the methodology used to perform the analysis. 3) Description of technology and operating model options available to the state of Florida, including, but not limited to: o A review of ERP business models appropriate for the State of Florida o ERP licensing considerations o Outsourcing of certain financial functions o Governance 4) Cost / pricing models used by other states in providing solutions for enterprise financials both off the shelf and custom coding. C. Options Advantages and Disadvantages The Contractor shall outline the advantages and disadvantages of each option below. This section shall meet the requirements outlined in sections (4)(e), (4)(f) and (4)(i), F.S., and also discuss the considerations associated with interfacing with the FFMIS subsystems. Enhancing FLAIR Replacing FLAIR Page 6 of 25

8 Replacing FLAIR and CMS Replacing FLAIR, CMS, MyFloridaMarketPlace and People First with an ERP system for the State of Florida This section shall include: 1) A description of the options and how they support DFS or the state s goals. 2) An analysis of advantages and disadvantages for each option, including, at a minimum, potential performance improvements and risks. 3) Identification of assumptions unique to each option. 4) A risk analysis that includes risk mitigation strategies for each of the options. 5) An implementation timeline for each option. 6) A description of differences among current state agency policies and processes, and a discussion of options for, or a plan to standardize, consolidate, or revise current policies and processes, if any, to reduce the customization of any proposed solution that would otherwise be required. D. Cost Benefit Analysis The Contractor shall document the direct and indirect specific baseline costs, savings, and qualitative and quantitative benefits involved in, or resulting from, the implementation of the recommended option or options. Such analysis must specify the timeframes that, at a minimum, must be adhered to in order to achieve the estimated savings. All elements of cost must be clearly identified in the cost benefit analysis, described in the study, and supported by applicable records and reports. The Contractor shall analyze available cost / pricing models. At a minimum, this section shall meet the requirements outlined in section (4)(h), F.S., and include: 1) Analysis of available cost and pricing models for each option. 2) Description of the methodology used to perform the analysis. 3) Description of cost/pricing model options available. 4) A cost benefit analysis including direct/indirect costs, staffing levels and personnel related costs for each of the options. 5) Identification of assumptions unique to each option. 6) A risk analysis with mitigation strategies for each of the options. Chapter 3: Recommendation This chapter shall include the Contractor s recommendation to enhance or replace FLAIR based on the findings of the study. The Recommendation Chapter shall include, but not be limited to: A. Specific changes needed in Florida Statutes and financial business practices to support the recommendation B. A proposed Governance structure that will support the recommendation (the proposed Governance structure shall consider the state s unique governing structure) Page 7 of 25

9 C. Any services or activities that should be considered for outsourcing D. Milestones and timeframes associated with the recommendation Chapter 4: Procurement and Contract Management The Procurement and Contract Management chapter shall meet the requirements outlined in sections (4)(j) (4)(m) and (4)(o), F.S., and at a minimum, include: A. A description of the specific performance standards that must be met to ensure adequate performance. B. The projected timeframe of key events for the procurement and implementation process. C. A plan to ensure compliance with the public records law. D. A specific and feasible contingency plan addressing contractor nonperformance and a description of the tasks involved in, and costs required for, its implementation. E. A plan for ensuring access by persons with disabilities in compliance with applicable state and federal law. Chapter 5: Implementation Strategy The Contractor shall analyze existing systems and outline a strategy for transitioning to the option recommended in Chapter 3 of the FLAIR Study. The strategy shall address human resource and other considerations related to the transition to the recommended option and the associated business process changes, if any. This section shall follow the requirements defined in section (4)(n), F.S., and at a minimum include: A. A strategy for the transition to the recommended option including the affected business processes. B. A strategy for the state to address human resource changes resulting from affected business processes and employees transition to the recommended option. C. A communication plan to deliver information to affected stakeholders and customers that includes impacts associated with human resource changes. 5. Optional Future Deliverables DFS may utilize the Contractor awarded a contract per this RFQ to provide additional consulting services upon written request from DFS Contract Manager in the following categories: A. Procurement Support Services Procurement Support Services shall include, at a minimum, the services outlined in Exhibit C and other activities as determined by a Project Plan for this Deliverable. B. Independent Project Management Independent Project Management Services shall include, at a minimum, the services outlined in Exhibit D and other activities as determined by a Project Plan for this Deliverable. Page 8 of 25

10 To implement the optional services DFS reserves the right to amend the Task Order to convert the hourly rate provided by the Contractor in Exhibit I to a deliverable basis at a future date at the time the Deliverables for the optional services are defined. 6. Deliverables and Acceptance Criteria DFS will use the following criteria to determine when each deliverable is considered complete and acceptable. DFS Contract Manager may provide additional acceptance criteria to be used for the Deliverables. The Contractor must submit the following deliverables in electronic format as well as three hard copies (binders) to the Contract Manager for review and approval by the due dates specified below: Deliverables and Acceptance Criteria Deliverable: 1 Description: Project Management Plan and Project Schedule Due Date of Deliverable: Within 4 weeks of contract award Minimum Acceptance Criteria: This deliverable shall include the following, at a minimum: Project Management Plan A Microsoft Word 2007 document following the template provided in Exhibit E or an equivalent format approved in writing by DFS. At a minimum, the Project Management Plan shall document: - the approved scope and scope exclusions; - planning assumptions, constraints and decisions; - risk/issue, quality assurance, and change management plans; - the staffing plan, including team member roles and responsibilities; - the project s communication plan - the change management process used to control scope, budget and timeframes The project management plan shall be approved by DFS. Once approved, changes shall follow the change management process defined in the Project Management Plan. Project Schedule A Microsoft Project 2007 schedule that details tasks and activities that will be performed during the engagement to at least Work Breakdown Structure (WBS) level 4. At a minimum, the schedule shall include: 1. Firm task durations (estimated durations should be limited) 2. Task start and finish dates 3. Baseline start and finish dates 4. Task predecessors and successors 5. Resources The project schedule shall be maintained on at least a weekly basis. The project schedule shall reflect non working time of project team members (i.e., weekends, holidays). Page 9 of 25

11 The project schedule shall be approved by DFS. Once approved, changes shall follow the change management process defined in the Project Management Plan. Deliverable: 2 Description: First draft of the study report Due Date of Deliverable: November 18, 2013 Minimum Acceptance Criteria: This deliverable shall include the following, at a minimum: A Microsoft Word 2007 document that reflects work to date on the study as noted in Section 4. The study shall be organized in chapters as provided in Section 4. DFS expects that Chapter 1: Background content will have at least 90% of the content specified in Section 4 above incorporated into the document; Chapters 2 5 will have at least 30% of the content specified in Section 4 above incorporated into the document. Deliverable: 3 Description: Inventory of all agency systems interfacing with FLAIR. Due Date of Deliverable: December 2, 2013 Minimum Acceptance Criteria: This deliverable shall include the following, at a minimum: A complete inventory of all agencies systems interfacing with FLAIR. A spreadsheet template is provided with the minimum data elements that are to be captured; however, the Contractor will not be restricted to just these data elements. Information can be returned in the form of a spreadsheet or database, using Microsoft Excel 2007 or Access See Exhibit F. Deliverable: 4 Description: Second draft of the study report Due Date of Deliverable: January 24, 2014 Minimum Acceptance Criteria: This deliverable shall include the following, at a minimum: A Microsoft Word 2007 document that reflects a near final work product. The study shall be organized in chapters as provided in Section % of the content outlined in Section 4 should exist for all chapters, including the recommendation. Deliverable: 5 Description: Final draft of the study report Due Date of Deliverable: February 28, 2014 Minimum Acceptance Criteria: This deliverable shall include the following, at a minimum: The final study shall fully meet all of the requirements defined in Sections 3 and 4. The study shall be organized in chapters as provided in Section 4. The study shall be proofread and edited for proper grammar, spelling and consistent formatting. Any revisions requested by DFS have been incorporated into the document. Page 10 of 25

12 The study shall be delivered to DFS in two (2) bound hardcopies and an electronic copy in PDF format and in each file s native format (e.g., Microsoft Word, Excel, Visio, etc.). Microsoft files should be compatible with the 2007 version of Microsoft Office products. The Contractor shall include in the study all documentation and other information gathered by the Contractor that supports its analysis, conclusions and recommendations in either an appendix or lettered exhibits to the study. Exhibits and appendices shall be used to validate the data used or provide supporting detail. Footnotes or end notes shall also be used in the study to make reference to resources used by the Contractor in performing the study. Supporting information and documentation gathered by the Contractor shall be provided DFS with the final report. Supporting information and documentation includes, but is not limited to, analysis of data collected by the Contractor from key stakeholders, both internal and external, subject matter experts, budget staff, legal staff, legislative staff, technology managers, project director, and employees at DFS and other agencies. Deliverable: 6 Non invoiced deliverable. Satisfactory performance and the Department s acceptance of these services is a requirement for payment of Holdback as outlined in Section 8B. Description: Consultation and/or testimony before Gubernatorial, Cabinet or Legislative bodies. Due Date of Deliverable: As needed upon written request by DFS until May 31, Minimum Acceptance Criteria: This deliverable shall include the following, at a minimum: Respond to DFS requests to appear before, or respond to inquiries from, legislative committees or other bodies within the timeframe identified at the time of the request. Contractor shall be on call for critical issues 24 hours/day, 7 days/week. Critical issues are defined as Gubernatorial, Cabinet or Legislative requests outside of normal office hours. Contractor shall develop responses that appropriately address inquiries received from legislative committees or other bodies. Responses shall be delivered to DFS within the timeframe identified at the time of the request. 7. Schedule The due dates specified shall be firmly adhered to, unless otherwise negotiated in writing by DFS and the Contractor. DFS must receive all deliverables by the dates specified below. 1 2 Deliverable Title: Project Management Plan and Project Schedule First draft of the FLAIR Study Report Draft Deliverable Due Date: Within 4 weeks of contract award DFS Review Completion Date Due: 10 business days after delivery Final Deliverable 4 Due Date: 10 business days after DFS has provided feedback November 18, 2013 December 9, 2013 January 24, Invoices may be submitted upon the Department s acceptance of final deliverables. Page 11 of 25

13 3 4 5 Inventory of all agency systems interfacing with FLAIR Second draft of the FLAIR Study Report Final FLAIR Study Report December 2, 2013 December 16, 2013 December 30, 2013 January 24, 2014 February 14, 2014 February 28, 2014 February 28, 2014 March 14, 2014 March 21, Consultation and Testimony As requested May 31, Acceptance of Work A. All deliverables must be submitted to the Contract Manager for review and approval (Acceptance) in accordance with the schedule in Section 7. DFS will only accept each deliverable when it has been reviewed and signed off that it meets the applicable criteria specified in Section 6. DFS may provide additional acceptance criteria during the contract period to be used for the deliverables. DFS reserves the right to require the Contractor to revise deliverables previously approved at no additional cost to DFS for any inadequate or insufficient information. The invoice will not be paid for deliverables that fail to meet specifications until acceptable corrective action has been completed. Failure to accept a deliverable within twenty (20) calendar days means automatic non acceptance by DFS unless stated otherwise by the Contract Manager in writing. See Section 18 for additional financial consequences associated with deliverables. DFS shall hold back 10% of the total payment of each deliverable. The total withheld amounts shall be paid upon completion of contract based on satisfactory performance and DFS acceptance of all contract deliverables. 9. DFS Duties A. Upon completion of Security Awareness Training by the Contractor s personnel who will be assigned to this project, DFS shall provide access to a shared project folder on the DFS network. 5 The intent of the folder is to facilitate collaboration between DFS and the Contractor as well as contract and project oversight. B. At a minimum, DFS Project Manager and Contract Manager shall have access to the folder. C. If requested in the Respondent s response (Proposal), DFS will provide furnished office space, computer equipment and licensed software. D. DFS shall provide: 1) Contract oversight 2) Project oversight 3) Access to a minimum of two Division of Accounting and Auditing (A&A) staff, two Division of Treasury (TRS) staff, and two Division of Information Systems (DIS) staff with subject matter expertise 4) Access to available information required to complete deliverables 5) Assistance with communications to, and cooperation from, other state agencies 5 In accordance with Rule Chapter 71 A Florida Administrative Code and Department policy, all DFS workers (regular employees, OPS staff, contractors, volunteers, etc.) are required to complete the Department s security awareness training within 30 calendar days of their start date. Page 12 of 25

14 10. Qualification Requirements for Contractor DFS is seeking a management consulting firm that possesses strategic planning and analysis experience with ERP projects for statewide, public entities. Respondents must have documented experience providing strategic analysis and planning services associated with preparing an organization for ERP implementation, i.e., program management, business process analysis, business process reengineering, human resource management, and organizational transformation. A. Preferred Respondents will have: 1. Participated in ERP engagements with at least 3 state governments and have documented experience with the full ERP project lifecycle 2. Experience with states that have $20 billion+ in annual spending 3. Specific knowledge of State of Florida governmental operations B. Background checks. A level 2 background check shall be completed and reviewed before Contractor staff may work on this project. The Contractor must advise its candidates that: (1) the fingerprints will be used to check the criminal history records of the FBI; and (2) procedures for obtaining a change, correction, or updating of an FBI identification record are described in 28 CFR In the event records reveal evidence of a crime that is unacceptable as determined by DFS, the Contractor agrees to remove the employee from the project and replace the employee with someone with comparable knowledge, skills and abilities. DFS will provide instructions for providing fingerprints and other information needed for obtaining background checks and submitting them to DFS upon award. C. Scrutinized Companies. If the Proposal is for goods or services of $1 million or more, the Respondent shall certify that the Respondent, as a company as defined in section , F.S., is not on the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List. (See Notice: Section , F.S., would operate to make businesses ineligible to contract with the State of Florida in specified circumstances. Currently, the 2012 changes to this section have been enjoined by a court of law. If ultimately upheld by the court, the Respondent who is awarded this contract may be required to amend the contract to certify compliance with the law, i.e. that the business is not and will not engage in business operations in Cuba or Syria that are prohibited by section , F.S. 11. Response Format, Deadlines, and Content Interested vendors should respond to this RFQ by submitting a response that includes, at a minimum, the Respondent s qualifications and proposed methodology for performing the above described services and the cost associated with providing the services. The response shall not exceed 100 pages. Responses are due on the dates shown below. An electronic copy in Word or PDF format shall be submitted on or before the response deadlines to the address shown below. Responses are due according to the schedule below: Issue RFQ Friday, June 28, 2013 Page 13 of 25

15 Deadline to submit questions via Wednesday, July 10, 2013 by 1pm ET DFS will respond to questions Friday, July 19, 2013 by 1pm ET Deadline to submit Proposals Friday, August 9, 2013 by 5pm ET Oral Presentations tentative Week of August 19, 2013 Anticipated award Tuesday, September 17, 2013 DFS assumes no responsibility for missing or delayed Proposals. Oral presentations outlining the Respondent s proposed approach and methodology for completing the contract services may be required. These presentations should address the project plan and include key milestones for each deliverable, as well as corporate experience, qualifications, and staff roles and responsibilities. The oral presentations will be tentatively scheduled for three (3) hour periods. Please send questions and Proposal via to the address shown below by the respective deadlines: Dustin Stroud DIS.Procurement@myfloridacfo.com Responses shall be concise and shall follow the outline below: A. Tab A Introductory Letter and Letter of Commitment. The letter shall include an executive summary that demonstrates previous experience with statewide, public sector ERPs and the ERP project lifecycle (experience with the full ERP project lifecycle does not have to come from a single engagement); recommended approach; a point of contact for all RFQ communications; and the length of time the Proposal is valid, which shall be no less than 180 days. Tab A should also include all required certifications; proof of insurance as required in Section 18. B. Tab B Approach, Proposed Work Plan and Schedule. This section shall include detailed information regarding the approach and provide a draft work plan and schedule that meets the deliverables and timelines set forth in Section 7. This section shall also detail the Contractor s requirements of the state s resources, including, but not limited to: access to DFS executives and subject matter experts; availability of state staff; tasks to be performed by state staff; office space and equipment at DFS, etc.). C. Tab C Corporate Experience, Qualifications and References. This section shall include corporate experience, qualifications and references pertinent to Section 3. The Respondent should include a bibliography and/or links to the company's public sponsored studies, published research, or similar analysis for another governmental entity related to ERP or ERP Financials solutions. The Respondent shall include information in this section that will clearly outline why their experience and qualifications separate them from other respondents. At a minimum, the Respondent should include three (3) references 6 with at least one (1) past customer for a project conducted in Florida that is relevant to the requirements of this RFQ. Use 6 Contact information shall be provided for each engagement cited. References will be checked. Page 14 of 25

16 Exhibit G to provide references. A current project is acceptable as long as the services are currently being provided. Exhibit G will not become part of the Contract. D. Tab D Proposed Staff. This section shall include staff assignments and their proposed roles relative to this project, resumes for key staff, and key staff s allocation to this project, i.e., fulltime, half time, as needed, etc. DFS expects that the key staff identified in the Proposal will remain on the project for the duration of the contract, and, if needed, shall be replaced with staff of equal or greater experience and knowledge and approved by DFS. The Contractor shall include information in this section for any proposed subcontractors. Including company information, proposed roles, and staff resumes. E. Tab E Pricing. The Respondent shall provide the study for a firm, fixed price, not to exceed $1,250,000 using Exhibit H. The response shall also include the name and job title of personnel assigned to the project, number of hours anticipated and hourly rates. The hourly rates in Exhibit H reflect estimated costs that are included in the firm fixed price, and establish hourly rates for any amendments that address any modifications in scope that require a change in pricing. F. Tab F Optional Future Deliverables. This section shall include the Respondent s written Proposal and costs using Exhibit I to provide additional optional support services in the following categories: A. Procurement Support Services Procurement Support Services shall include, at a minimum, the services outlined in Exhibit C and other activities as determined by a Project Plan for this Deliverable. B. Independent Project Management Independent Project Management Services shall include, at a minimum, the services outlined in Exhibit D and other activities as determined by a Project Plan for this Deliverable. The hourly rates in Exhibit I reflect pricing in addition to the firm fixed prices in Exhibit H, and will apply only upon DFS election of an option. To implement the optional services, DFS reserves the right to amend the Task Order to convert the hourly rate provided by the Contractor in Exhibit I to a deliverable basis at a future date at the time the Deliverables for the optional services are defined. 12. Basis for Award DFS intends to award this quote to the Respondent that provides the overall best value to the state. DFS will consider the Respondent s full Proposal when making an award recommendation, including the Respondent s ability, corporate experience, proposed work plan, resource availability, experience, and references in addition to the Respondent s price Proposal as outlined in Section 11. Respondents will be evaluated based on their qualifications as documented in the materials provided as required in Section 11. All other factors being equal, price will be the determining factor. Page 15 of 25

17 13. Use of Subcontractors In providing services under the prospective contract, Contractor is permitted to utilize subcontractors. However, in its response to this RFQ, Respondent shall identify all subcontractors Respondent will utilize and what services they will provide. During the term of the prospective contract, subcontractors may be substituted with the prior written approval of DFS Contract Manager. Please see section 32 of the PUR 1000 for additional requirements regarding utilization of employees, subcontractors and agents. 14. Conflict of Interest It is essential to the proper conduct and operation that the Contractor is independent and impartial and that the implementation of decisions made as it relates to the procurement is not used for private gain or other remuneration. The Contractor from this agreement shall refuse any override commissions or any other valuable consideration, in any and all forms, from any involved party. Fees earned relating to this agreement will be limited exclusively to payments by DFS to the Contractor under the purchase order issued subsequent to the awarding of this RFQ. The Contractor will be excluded from award of the future solicitation for implementation services resulting from this analysis. Section (17)(c), Florida Statutes, states in part: [a] person who receives a contract that has not been procured pursuant to subsections (1) (3) to perform a feasibility study of the potential implementation of a subsequent contract, who participates in the drafting of a solicitation or who develops a program for future implementation, is not eligible to contract with the agency for any other contracts dealing with that specific subject matter, and any firm in which such person has any interest is not eligible to receive such contract. However, DFS may utilize the Contractor per this RFQ to provide additional consulting services to ensure the recommendations are appropriately implemented by a future provider. Such additional consulting services, as referenced in Section 5, may be procured by DFS under State Term Contract Number , Management Consulting Services. 15. Pricing and Invoicing A. Contractor will be paid a fixed price for each deliverable in accordance with the Management Consulting Services State Term Contract, subject to the conditions for Acceptance of Work set forth in this SOW. B. Costs may be negotiated with the Contractor; however, DFS does not anticipate the total costs of all services to exceed $1,250,000. C. No travel expenses shall be paid. D. Invoicing shall be in arrears after approval and acceptance of deliverables and services. E. Invoices shall be submitted as final deliverables are completed and accepted. Invoices shall be processed in accordance with section , Florida Statutes. F. Invoices are submitted to: Danielle Kosberg Application Design and Support Process Manger State of Florida, Department of Financial Services Page 16 of 25

18 16. Contract Division of Accounting and Auditing, Director s Office 200 East Gaines Street, Room 304 Tallahassee, FL DFS will enter into a contract with the awarded respondent in the form of a purchase order. The contract period for this RFQ begins upon issuance of the Purchase Order and ends the later of June 30, 2014 or upon acceptance of the final deliverable. DFS reserves the right to require the successful Respondent to execute a two party contract that incorporates this solicitation and the Respondent s Proposal as soon as possible after the posting of the notice of award. 17. Contract Manager Danielle Kosberg Application Design and Support Process Manager State of Florida, Department of Financial Services Division of Accounting and Auditing, Director s Office 18. State Term Contract Special Conditions A. Precedence. The provisions of the applicable State Term Contract supersede all other Contractor terms and conditions with regard to this Task Order. Pursuant to the STC, any additional terms and conditions outlined in this SOW are supplemental to those set forth in the STC. The SOW and Proposal may serve as a Task Order under the STC; however the SOW will supersede the Proposal in the event of any conflicting provisions. B. Taxes. DFS is exempted from payment of Florida state sales and use taxes and Federal Excise Tax. DFS will provide its tax exemption certification. C. Limitation of Liability: No provision in this Contract shall require DFS to hold harmless or indemnify the Contractor, insure or assume liability for the Contractor s negligence, waive DFS sovereign immunity under the laws of Florida, or otherwise impose liability on DFS for which it would not otherwise be responsible. Except as otherwise provided by law, the parties agree to be responsible for their own attorney fees incurred in connection with disputes arising under the terms of this contract. DFS maximum liability for any damages, regardless of form of action, shall in no event exceed the fees actually paid to the Contractor for the relevant products or services giving rise to the liability, prorated over a term from the date of performance of the applicable services. D. Public Records. Notwithstanding any provisions to the contrary, disclosure of any confidential information received by the State of Florida will be governed by the provisions of the Florida Public Records Act, Chapter 119, F.S. 1) Trade secrets are not solicited or desired, as submissions with Responses/Proposals. DFS will advise the Respondent if disclosure of any trade secret as defined in section , F.S., where clearly segregated and identified as such in the Response, is sought. If the Page 17 of 25

19 Respondent submits a Proposal containing trade secrets, the Respondent shall submit a statement titled "Notice of Trade Secrets." This Notice shall clearly identify specific sections of the Proposal that are trade secrets and identify the reason for each designation. If the Respondent considers any portion of the documents, data or records submitted in reply to this solicitation to be confidential, trade secret or otherwise not subject to disclosure pursuant to Chapter 119, F.S., the Florida Constitution or other authority, the Respondent must also simultaneously provide DFS with a separate redacted copy of its Proposal. 2) The provision of redacted contract information on a website for public viewing does not alleviate the duty of DFS nor a state contractor to respond to a public records request. The response to the requestor may include referral to the website for viewing the identical (redacted) version. Should the Respondent or Contractor provide information deemed confidential or exempt from the Florida Public Records Act, then the Respondent or Contractor shall place such information in an encrypted electronic form or a sealed separate envelope and provide DFS with an additional copy of its documentation containing such information that has been redacted to conceal only that information that the Respondent or Contractor claims to be confidential. The awarded Respondent (Contractor) is responsible for becoming familiar with the Florida Public Records Act with regard to records associated with the Contract. If a public records request is made to the Contractor, the Contractor shall: immediately notify DFS of such request; process the request as approved by DFS Public Records section; and provide DFS progress status reports; and provide a copy of its intended redacted version in case there is a public records request. For noncompliance by the Contractor with section , F.S., or the above requirements regarding response to public records requests (collectively Public Records Tasks), DFS at its option may enforce these provisions by exercising Step In rights as described in the contract section regarding remedies or according to the termination provisions of the contract or both. If DFS receives a public records request related to the Proposal, the Respondent shall be solely responsible for taking whatever action it deems appropriate to legally protect its claim of exemption from the public records law. Any prospective Respondent acknowledges, that the protection afforded by section , F.S., is incomplete, and it is hereby agreed that no right or remedy for damages arises from any disclosure. The awarded Respondent (Contractor) shall retain such records for the longer of three (3) years after the expiration of the Contract or the period required by the General Records Schedules maintained by the Florida Department of State (available at: ). 3) The Contractor, and any approved subcontractor, shall keep and maintain the public records that ordinarily and necessarily would be required, provide access to all records regarding the Task Order or any approved subcontracts upon reasonable notice, and ensure that records that are exempt from the Florida public records laws are not disclosed except as authorized by law, and meet all of the requirements of the STC regarding retaining records, and upon transition, transfer such records to DFS at no additional cost. The requirements are designed to avoid requiring unconventional data formats since the Contractor will be required at termination to transfer records to DFS at no cost and ensure that electronic records are in a format compatible with that of DFS to comply with section , F.S.: using the data formats as noted in deliverables above. 4) The awarded Contractor shall, to the extent required by section , F.S., perform the following tasks to comply with section , F.S., (a) maintain public records required by DFS to perform the service; (b) provide access on the same conditions and at a cost not exceeding that provided in Page 18 of 25

20 section , F.S.; (c) ensure exempt or confidential documents are not disclosed; and (d) transfer public records at no cost to DFS on termination, destroy confidential duplicates, including remnant data, and provide electronic records in a format compatible with the public agency systems at no cost to the agency. 5) The parties shall not be required to disclose to the public any materials protected by law, and disclosure of any confidential information received by the State of Florida will be governed by the provisions of Article I, section 24 of the Florida Constitution, and the Florida Public Records Act, Chapter 119, F.S., and exceptions thereto. The following records are specifically excluded from inspection, copying, and audit rights under the Contract: (a) Records of the Contractor (and subcontractors) that are unrelated to the Contract; (b) Documents created by and for DFS or other communications related thereto that are confidential attorney work product or subject to attorney client privilege, unless those documents would be required to be produced for inspection and copying by DFS under the requirements of Chapter 119, F.S., and, Article I section 24 of the Florida Constitution; and (c) The Contractor's (and subcontractors) internal cost and resource utilization data, or data related to employees, or records related to other customers of the Contractor, or any subcontractor who is not performing services under this Contract. E. Governing law. Florida law shall govern the contract and jurisdiction shall be in Leon County, FL. With regard to limitation of actions, section 95.11, F.S., shall govern. F. Change Process. The Contractor shall contact the Contract Manager to request any changes to the Task Order (Change Order Process). If the Contractor fails to notify and obtain approval from DFS before commencing performance of activities relating to changes in the Task Order, such activities will be considered to be performed gratuitously by the Contractor, and the Contractor shall not have any right thereafter to assert any claim for additional compensation or time for the performance of such activities. G. Asset Usage. DFS may, upon termination or expiration of the contract, purchase any assets used by the Contractor in performance of the contract, at their depreciated value, or if not depreciated, then DFS retains the right to negotiate to purchase such assets at an agreed upon cost, not to exceed the price offered in any state term contract. H. Default. In addition to the default provisions in STC 4.24, DFS reserves the right to perform the service or activity, directly or with another contractor, if service levels are not being achieved. DFS may, in addition to other remedies available to them at law or equity and upon notice to the Contractor, retain such monies from amounts due the Contractor as may be necessary to satisfy any claim for damages, costs and the like asserted by or against them. I. Termination. 1) All services performed by the Contractor prior to the termination date of this Contract shall be professionally serviced to conclusion in accordance with the requirements of the Contract. Should the Contractor fail to perform all services under the Contract, the Contractor shall be liable to DFS for any fees or expenses that DFS may incur in securing a substitute provider to assume completion of those services. DFS may, in its sole discretion, provide notice and an opportunity to cure the default rather than exercise the remedy of Page 19 of 25

21 termination. If the default or breach is not cured within thirty (30) calendar days after written notice is given to the Contractor specifying the nature of the alleged default or breach, then DFS, upon giving written notice to the Contractor, shall have the right to terminate the Contract effective as of the date of receipt of the default notice. DFS shall have the right to unilaterally cancel or suspend the Contract, by providing the Contractor thirty (30) days written notice. The Contractor shall not perform any Services after it receives the notice of termination, except as necessary to complete the transition or continued portion of the Contract, if any. 2) Exit Transition Assistance. If at any time the Contract is canceled, terminated, or expires, the Contractor has the affirmative obligation to assist in the smooth transition of Contract services to DFS or a subsequent contractor. At least eight (8) weeks in advance of termination or expiration, the Contractor shall provide a non proprietary description of the technical and service requirements for transitioning to a new provider or DFS. Upon the earlier of six (6) weeks before the expiration of the Contract or upon any notice of termination of the Contract, the Contractor shall provide transition services (Exit Transition Services) to DFS without regard to the reason for termination, as stated herein. Exit Transition Services shall be provided for up to six (6) weeks during the term and after termination or expiration and will be limited to post contract activities involving knowledge transfer for such services and deliverables and all reasonable termination assistance requested by DFS to facilitate the orderly transfer of such services to the State or its designees in a manner designed to minimize interruption and adverse effect. J. Electronic Accessibility. The Electronic and Information Technology standard can be found at: If applicable, section 508 compliance information on the supplies and services in this contract are available on a website indicated by the Contractor. K. Employment Eligibility Verification. 1) The Chief Financial Officer has directed, in cooperation with the Governor s Executive Order , that the Contractor must participate in the federal E Verify Program for Employment Verification under the terms provided in the Memorandum of Understanding with the federal Department of Homeland Security governing the program if any new employees are hired to work on this Contract during the term of the Contract. The Contractor agrees to provide to DFS, within thirty days of hiring new employees to work on this Contract, documentation of such enrollment in the form of a copy of the E Verify Edit Company Profile screen, which contains proof of enrollment in the E Verify Program. Information on E Verify is available at the following website: verify 2) The Contractor further agrees that it will require each subcontractor that performs work under this contract to enroll and participate in the E Verify Program if the subcontractor hires new employees during the term of this Contract. The Contractor shall include this provision in any subcontract and obtain from the subcontractor(s) a copy of the Edit Company Profile screen indicating enrollment in the E Verify Program and make such record(s) available to DFS upon request. 3) Compliance with the terms of this Employment Eligibility Verification provision will be an express condition of the Contract and DFS may treat a failure to comply as a material breach of the Contract. 4) In the event legislation authorizes an alternative option as proof of legal status, the Contractor may use the process authorized by such legislation upon its passage. Page 20 of 25

22 L. Insurance. The Contractor shall submit appropriate proof of insurance. At a minimum, amounts reasonably associated with the contract include the following types of insurance for anyone directly or indirectly employed by the Contractor and the amount of such Insurance shall be the minimum limits as follows, unless otherwise approved by the Contract Manager: a) Commercial general liability coverage, bodily injury, property damage: $1,000,000 per occurrence/$2,000,000 aggregate. b) Automobile liability coverage, bodily injury, property damage: $1,000,000 Combined Single Limits. Insuring clause for both bodily injury and property damage shall be amended to provide coverage on an occurrence basis. c) Workers compensation and employer s liability insurance covering all employees engaged in any Contract work, in accordance with Chapter 440, F.S. d) Submit appropriate proof of computer crime insurance and coverage against intentional acts as well as negligent acts or omissions in connection with its activities under the Contract. Such coverage may be reduced with the consent of the Contract Manager since certain subcontractors have potentially less exposure in liability than other subcontractors. Except as agreed in a separate writing, no self insurance coverage shall be acceptable unless Contractor is licensed or authorized to self insure for a particular coverage listed above in the State of Florida, or is an in insured member of a self insurance group that is licensed to self insure in the State of Florida. M. Ownership and Rights. Title to all property furnished by DFS under this Contract shall remain in DFS, and the Contractor shall surrender to DFS all property of DFS prior to settlement upon completion, termination, or cancellation. All deliverables shall become and remain DFS property upon receipt and acceptance. All work materials developed or provided by the Contractor under this Contract and any prior agreement between the parties shall be deemed to be work made for hire and owned exclusively by the State of Florida, Department of Financial Services. Effective July 1, 2010 intellectual property is subject to the following additional provisions: 1) Anything by whatsoever designation it may be known, that is produced by, or developed in connection with, this Purchase Order shall become the exclusive property of the State of Florida and may be copyrighted, patented, or otherwise restricted as provided by Florida or federal law. Neither the Contractor nor any individual employed under the Purchase Order shall have any proprietary interest in the product. 2) With respect to each Deliverable that constitutes a work of authorship within the subject matter or scope of U.S. Copyright Law, 17, U.S.C. sections , such work shall be work for hire as defined in 17, U.S.C. sections 101 and all copyrights subsisting in such work for hire shall be owned exclusively by DFS issuing the Purchase Order pursuant to section , F.S., on behalf of the State of Florida. 3) In the event it is determined as a matter of law that any such work is not a work for hire, the Contractor shall immediately assign to DFS all copyrights subsisting therein for the consideration set forth in the Purchase Order and with no additional compensation. 4) The forgoing shall not apply to any preexisting software, or other work of authorship used by the Contractor, to create a Deliverable but which exists as a work independently of the Page 21 of 25

23 Deliverables, unless the preexisting software or work was developed by the Contractor pursuant to a previous Purchase Order or Contract with DFS issuing the Purchase Order or a purchase by DFS under a State Term Contract. 5) DFS issuing the Purchase Order shall have a full and complete ownership of all software developed pursuant to the Purchase Order, if any, including without limitation: a) The written source code; b) The source code lines; c) The executable code; d) The executable code files; e) The data dictionary; f) The data flow diagram; g) The work flow diagram; h) The entity relationship diagram; and i) All other documentation needed to enable DFS to support, recreate, revise, repair, or otherwise make use of the software. N. Financial Consequences for Non Performance (1) To the extent that financial consequences are not further specified in the Statement of Work, the following apply: (a) Holdback: In accordance with Section 8B, 10% of all payments shall be retained by the Department until completion of all deliverables in the contract. (b) Non performance: In addition to the above holdback, other financial consequences may be assessed on the Contractor for non performance as specified in Section 6 of the Statement of Work. i. Failure to meet the acceptance criteria as identified in the Statement of Work will result in automatic deliverable rejection and may not be invoiced or paid until correction of the deliverable. Failure to complete the required duties not associated with a deliverable as outlined in the Statement of Work may also result in the rejection of the invoice. Notwithstanding any provisions to the contrary, written acceptance of a particular deliverable does not foreclose DFS remedies in the event those performance standards that cannot be readily measured at the time of delivery are not met. ii. To the extent liquidated damages are assessed on the Contractor according to the Statement of Work, the Contractor acknowledges that its failure to meet the agreed upon deadline for, delivery of deliverables will damage DFS but that by their nature such damages are impossible to ascertain presently and will be difficult to ascertain in the future. Accordingly, the parties agree upon a reasonable amount of liquidated damages which are not intended to be a penalty and are solely intended to compensate for unknown and unascertainable damages. Accordingly, liquidated damages shall be assessed on the Contractor as follows: Failure to meet the deliverable deadlines as identified in the Statement of Work will result in a reduction of 1% of the price of the deliverable for each day that any deliverable is received after its due date, as specified in Section 7. Price reductions will be assessed up to a maximum of 10% for each of Deliverables 1 3; for each of Deliverables 4 and 5, price reductions will be assessed up to 15 days (for a maximum of 15%). Page 22 of 25

24 (2) Step in Rights For discontinuance of the performance of the work, failure to resume work that has been discontinued within a reasonable time after notice to do so, abandonment of the Contract, or for noncompliance by the Contractor with tasks related to public records, DFS at its option may enforce these provisions by exercising Step In rights as described below: a) If DFS exercises its Step In rights, the Contractor must cooperate fully with DFS (including its personnel and any third parties acting on behalf of DFS) and shall provide, at no additional charge to DFS, all assistance reasonably required by DFS as soon as possible, including: 1. providing access to all relevant equipment, premises and software under the Contractor s control as required by DFS (or its nominee); and 2. ensuring that the Contractor personnel normally engaged in the provision of such tasks are available to DFS to provide assistance which DFS may reasonably request. b) DFS Step In rights will end, and DFS will hand back the responsibility to the Contractor, when the Contractor demonstrates to DFS reasonable satisfaction that the Contractor is capable of resuming provision of the affected tasks in accordance with the requirements of the Statement of Work Section 18 D 3), and that the circumstances giving rise to the Step In right cease to exist and will not recur. c) The Contractor must reimburse DFS for all reasonable costs incurred by the Department (including reasonable payments made to third parties) in connection with the Department s exercise of Step In rights and provision of the affected tasks ( Step In Costs ). d) DFS will continue to pay the Contractor the charges for the deliverables (including that portion which relates to the affected tasks) due for the products or services, provided that the Contractor reimburses the Department for the Step In Costs. If the Contractor fails to reimburse DFS within 30 days of receipt of DFS demand for payment of Step In Costs, DFS is entitled to set off such Step In Costs against a subsequent invoice. O. Data Security and Confidentiality. 1) The Contractor, its employees, subcontractors and agents shall comply with all security procedures of DFS in performance of this Contract. The Contractor shall provide immediate notice to the DFS Information Security Office (ISO) in the event it becomes aware of any security breach and any unauthorized transmission of State data or of any allegation or suspected violation of security procedures of DFS. Except as required by law or legal process and after notice to DFS, the Contractor shall not divulge to third parties any confidential information obtained by the Contractor or its agents, distributors, resellers, subcontractors, officers or employees in the course of performing Contract work, including, but not limited to, Rule Chapter 71A 1, Florida Administrative Code, security procedures, business operations information, or commercial proprietary information in the possession of the state or DFS. The Contractor shall not be required to keep confidential information that is publicly available through no fault of the Contractor, material that the Contractor developed independently without relying on the State s confidential information or information that is otherwise obtainable under state law as a public record. 2) Loss of Data. In the event of loss of any State data or record where such loss is due to the negligence of the or any of its subcontractors or agents, the Contractor shall be responsible for recreating such lost data in the manner and on the schedule set by DFS at the Contractor s sole expense, in addition to any other damages DFS may be entitled to by law or the Contract. Further, failure to maintain security that results in certain data release will Page 23 of 25

25 subject the Contractor to the sanctions for failure to comply with section , F.S., together with any costs to DFS of such breach of security. 3) Data Protection. State data shall not be transmitted to, stored in, processed in, or shipped to off shore locations regardless of method, except as required by law. Examples of these methods include, but are not limited to: FTP transfer, DVD, tape, or drive shipping; regardless of level of encryption employed. Access to DFS data shall only be available to approved and authorized staff, including remote/offshore personnel, that have a legitimate business need. Requests for remote access shall be submitted to the DFS Help Desk. With approval, these parties may be granted time limited terminal service access to IT resources as necessary for fulfillment of related responsibilities. Third parties shall not be granted remote access via VPN, private line, or firewall holes. Requests for exceptions to this provision may be submitted to the Information Security Office for approval. Remote connections are subject to detailed monitoring via two way log reviews and the use of other tools, as deemed appropriate. When remote access needs change, the Information Security Office shall be promptly notified and access shall be removed promptly. 4) The Contractor shall encrypt all data transmissions containing confidential or confidential and exempt information. Remote data access must be provided via a trusted method such as SSL, TLS, SSH, VPN, IPSec or a comparable protocol approved by DFS. Confidential information must be encrypted using an approved encryption technology when transmitted outside of the DFS network or over a medium not entirely owned or managed by DFS. 5) The Contractor agrees to protect, indemnify, defend and hold harmless DFS from and against any and all costs, claims, demands, damages, losses and liabilities arising from or in any way related to the Contractor s breach of data security or the negligent acts or omissions of the Contractor related to this subsection. All employees, subcontractors, or agents performing work under the Contract must comply with all security and administrative requirements of DFS. The Contractor shall not divulge to third parties any confidential information obtained by the Contractor or its agents, distributors, resellers, subcontractors, officers or employees in the course of performing Contract work, including, but not limited to, security procedures, business operations information, or commercial proprietary information in the possession of the state or DFS. P. Scrutinized Companies. The Contractor hereby certifies that the company is not on the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List. (See As provided in section , F. S., DFS may, at its option, terminate the Contract immediately in the event the Contractor (as a company as defined in such statute), is found to have submitted a false certification as provided under section (5), F.S., or been placed on the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List. Notice: Section , F.S., would operate to make businesses ineligible to contract with the State of Florida in specified circumstances. Currently, the 2012 changes to this section have been enjoined by a court of law. If ultimately upheld by the court, the Contractor may be required to amend the contract to certify compliance with the law, i.e. that the business is not and will not engage in business operations in Cuba or Syria that are prohibited by section , F.S., if legally prohibited from doing so by section , F.S. Page 25 is intentionally omitted. Page 24 of 25

26 Exhibit A - FFMIS FFMIS BOARD Florida Financial Management Information Board Governor Chief Financial Officer Agriculture Commissioner Attorney General FFMIS Council Florida Financial Management Information System Coordinating Council Chief Financial Officer (Chair) or designee DMS Secretary or designee Attorney General or designee Director of OPB or designee Non-voting/Ex-officio Members Auditor General or designee State Courts Administrator or designee An executive officer of the Florida Association of State Agency Administrative Services Directors or designee An executive Officer of the Florida Association of State Budget Officers or designee FFMIS Florida Financial Management Information System LAS PBS FLAIR CMS MFMP People First Legislative Appropriations System (Owner Legislature) Planning and Budgeting Subsystem (Functional Owner Governor) Florida Accounting Information Resource Subsystem (Functional Owner CFO) Cash Management Subsystem (Functional Owner CFO) Purchasing Subsystem (Functional Owner DMS) Personnel Subsystem (Functional Owner DMS) Combined with the Legislative Appropriations System (LAS) (5) The Florida Financial Management Information System and its functional owner information subsystems shall be compatible with the legislative appropriations system, and they shall be designed to support the legislative oversight function. The Florida Financial Management Information System and its functional owner information subsystems shall be unified with the legislative information systems that support the legislative appropriations and legislative oversight functions. The Florida Financial Management Information System and its functional owner information subsystems shall exchange information with the legislative information systems that support the legislative appropriations and legislative oversight functions without conversion or modification. Any information maintained by the Florida Financial Management Information System and its functional owner information subsystems shall be available, upon request, to the information systems of the legislative branch.

27 Exhibit C - Procurement Support Services A. Develop Application, Hardware Platform, Database Platform, and Implementation Services Requirements: a. Coordinate and lead meetings, including documenting the identification of functional requirements; and b. Coordinate and lead meetings, including documenting the identification of technical requirements B. Develop Solicitations for Application, Hardware Platform, Database Platform, and Implementation Services Vendors: a. Coordinate, lead, analyze and document the definition of implementation strategies and approaches; and b. Coordinate and document the development of the required RFP(s)/ITN(s), including the preparation of initiation draft versions of the pertinent documents. C. Evaluation and Selection of Vendors: a. Propose vendor evaluation process and criteria; b. Finalize and document vendor evaluation process and criteria; and c. Coordinate and document vendor evaluations. D. Contract Negotiations with Vendors: a. Develop Contract Negotiation schedule and outline; b. Prepare draft Contract materials for consideration by the State: c. Coordinate, document, and participate in vendor contract negotiations as a subject matter expert; and d. Produce Contract Negotiations Report.

28 Exhibit D - Independent Project Management Services A. Project Management Activities: a. Analyze resource requirements b. Provide overall project guidance and direction c. Develop a project management plan d. Establish project milestone reviews e. Assist state in managing project resources f. Assist state in managing project budget g. Attend critical project team meetings h. Monitor actual progress against the project work plan i. Prepare status reports j. Provide project briefings as necessary, and k. Perform other general project administration activities B. Project Start-up Activities: a. Organize and initiate project infrastructure b. Coordinate project team logistics c. Coordinate project team facilities d. Coordinate project administrative standards, and C. Project Oversight and Approval Processes: a. Conduct monthly, or as needed, ongoing project assessments, and b. Identify, monitor, and recommend corrective action, as necessary D. Project Issue Resolution: a. Design issue resolution process, and b. Implement issue resolution process E. Review and Evaluation of Project Deliverables: a. Coordinate, lead, document, and communicate definition of deliverable acceptance criteria b. Update and communicate deliverable acceptance criteria throughout project life cycle c. Prepare deliverable review schedule and state SME staffing d. Document and facilitate deliverable reviews e. Perform monthly contractor performance reviews, and f. Advise the state on recommendations made other contracted staff concerning system, architecture and implementation strategies and plans g. Consolidate state feedback from deliverable reviews and contractor performance reviews for presentation by the state F. Development and Implementation of Quality Assurance Efforts for the Software: a. Conduct and report monthly, or as needed, ongoing project assessments b. Ensure that the state s requirements are consistently met by the software as designed, configured, and implemented, and c. Ensure that the implementation vendor consistently meets the state s requirements and quality standards G. Periodic Risk Assessments and Ongoing Risk Management: a. Produce the Risk Management Plan b. Identify project risks c. Perform qualitative risk analysis and quantitative risk analysis if requested by the state Page 1 of 2

29 d. Perform risk response planning, and e. Perform risk monitoring and control H. Maintenance of Detailed Project Schedules with Progress in Microsoft Project: a. Refine work break down structure b. Refine resource requirements c. Refine task dependencies d. Define critical path, and e. Periodically maintain/publish the work plan Page 2 of 2

30 Department of Financial Services DIS Project Management Office Project Management Plan Business Need (Describe why the project is being undertaken.) Purpose (Describe what the project is trying to achieve.) [Project Name] Project Scope (A scope statement helps set the parameters for the range of activities to be performed during a project as well as activities that are expressly excluded. Document those items that are considered in-scope [part of this project] and those that are out-of-scope [not part of this project]). In Scope The scope of this project includes the following items: Out of Scope For the purpose of this project, the following are out of scope: Deliverables/Milestones (Milestones mark important project achievements and are frequently used to monitor project progress. Examples include the end of a project phase and the completion of key deliverables. List the applicable major milestones necessary to determine the project s success.) Deliverables/Milestones Projected Lead (Resource) Completion Date Project Management Plan TBD TBD Detailed Project Schedule TBD TBD Project Tracking Book (Issues and Risks, Change Requests, Action Items, Lessons Learned) Ongoing TBD Project Schedule See Attachment A. Assumptions (Certain assumptions need to be made to identify and estimate the required tasks and timing for the project. Based on the team knows today, list the project assumptions and constraints below. If an assumption is invalidated at a later date, then the activities and estimates in the project schedule should be adjusted accordingly and this document should be updated.) This project management plan assumes that: PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 1 OF 9 UPDATED 2/05/13

31 Department of Financial Services DIS Project Management Office Project Management Plan Constraints This project is constrained by the following: Organizations Affected or Impacted: (The impact of this project on other organizations needs to be determined to ensure that the right people and functional areas are involved and communication is directed appropriately.) Organization How Are They Affected, or How Are Business System(s) They Participating? Impacted Project Team Roles and Responsibilities (Identify the people that are needed on the team and their project roles and responsibilities. Below are examples of possible roles and responsibilities. Please update to reflect the needs of your project.) ROLE NAME(S) RESPONSIBILITIES Executive Project Sponsors Authorizing the project Advising the Project Manager of her/his vision, goals and objectives for the project Empowering the project manager to lead the project to a successful completion Approving the project scope and any requests for scope changes Attending and participating in the kick-off meeting (with team members) Attending team meetings, as needed and requested Reviewing and signing off at key project points Advising the project manager of changes in direction Advising the project manager of risks that may impact the project Supporting the project manager in managing changes/risk and anticipating problems Supporting the project manager in overcoming systemic barriers Reviewing the minutes and periodic reports Serving on the Steering Committee Steering Committee Group of high-level stakeholders who provide guidance on overall strategic direction Advising the project manager of risks that may PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 2 OF 9 UPDATED 2/05/13

32 Department of Financial Services DIS Project Management Office Project Management Plan impact the project Facilitate resolution of significant issues in the project Reviewing and signing off on key milestones Project Manager Serving on the Project Sponsors behalf by providing day-to-day direction and leadership for all aspects of the project Leads project to ensure deliverables are met Leads project according to the approved project schedule and PMP Drafts and maintains project management artifacts (schedule, tracking book, this document) Ensures the project follows project management best practices Ensures the project adheres to DIS Information System Development Methodology (ISDM) Receives and evaluates change requests and provides data to the Project Sponsor for decisionmaking Responsible for project team communications Responsible for project status reporting to the Project Sponsor, Directors and others as identified by the Project Sponsor or Directors Scheduling and leading team meetings Assigning tasks Reviewing completed tasks Ensuring the quality of product and service deliverables Monitoring deadlines Keeping the Project Sponsors, stakeholders, and team members advised on progress of the project Updating the Project Sponsors Facilitating meetings Team Leaders Staying focused on project tasks Providing daily leadership to their respective teams Attend meetings as appropriate Performing work outside of the team meeting. Informing the project manager of risks and issues that may impact the project Ensuring that their respective team members complete assigned tasks Testing Coordinator Develop master test plan Develop and maintain detailed test plan - Based upon JAD session outcomes - Coordinate test activities with development delivery - Include CODA enhancement acceptance PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 3 OF 9 UPDATED 2/05/13

33 Department of Financial Services DIS Project Management Office Project Management Plan - Coordinate assignments with business unit managers - Modify as discovery during testing cycle occurs Coordinate gathering of data for test exercises Coordinate task completion with business unit managers Track testing progress Provide feedback to developers and team leaders Alert project manager of critical path issues Orchestrate cross-functional testing Participate in all project-related meetings Business Analyst Facilitate JAD sessions with the Divisions Staying focused on project tasks Attend additional project meetings as appropriate Informing the project manager of risks and issues that may impact the project Technical Representatives Participating in required technical related discussions and activities; especially those related to infrastructure issues and back-end systems Informing the project manager of risks and issues that may impact the project Completing assigned tasks Security Advisor Information Security Manager, DIS Provides guidance to project team regarding security concerns Assists project team in the mitigation and/or avoidance of security concerns Identifies risks and issues to the Project Manager in accordance with the Risk and Issue Management section of this PMP Assists the Project Manager in responding to risks and issues Assists the Project Manager in evaluating change requests Provides guidance to the Project team regarding completion of the System Security Plan Project Management Approach (The subsections below describe how key project management knowledge areas will be addressed during the course of the project. Please update these subsections to meet the unique needs of your project.) Schedule Management Plan The project will be managed by a project schedule created in Microsoft Project Professional and will follow the Project Management and ISDM Guidelines established by DIS and the PMO. PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 4 OF 9 UPDATED 2/05/13

34 Department of Financial Services DIS Project Management Office Project Management Plan The Project Manager will update the schedule on a weekly basis, adding tasks as necessary. The Project Manager will monitor progress proactively to anticipate challenges and provide support to team members. Communications Management Plan Team Essentials All Project Team members will keep their Outlook Calendar up-to-date with planned periods out of the office. All Project Team members will strive to give the Project Manager advanced notice of when they will be out of the office. Decisions must be documented and communicated to the Project Manager, at a minimum; preferably to the project team. (In other words, the project team should not alter their work or approach based on informal conversations.) Scheduled Meetings Provide information about the primary project meetings that will be held during this project, including a description of the meeting, its purpose, and how often it is to be held. A Kickoff meeting will be held with all stakeholders to discuss the high level scope of the project and major milestones. The Project Team will have weekly update/status meetings/conference calls to review completed tasks, and determine current work priorities and agree on action items Steering Committee meetings will be held at key milestones throughout the project with a group of high level stakeholders to get guidance on strategic direction, facilitate the resolution of major issues as well as signing-off on key milestones. Ad hoc meetings will be conducted as necessary with project team to discuss any outstanding tasks, collaborate, and identify issues. A Closeout meeting will be held with all stakeholders upon completion of the project. (See Project Close-out Plan). Scheduled Status Reports Provide information about the primary status reports that will be distributed during this project, including a description of the report, its purpose, and how often it is to be prepared and distributed. Weekly Status Report: Project status will be reported weekly for posting on the DIS Project Tracking List. Risks or issues for discussion at the management review meeting will be listed and color coded buttons will be used to show the project is on track (green), delayed or temporarily on hold (yellow) or stopped (red). Comments will be used to explain the status. The Project Manager will send weekly status updates to the PMO for status reporting in DIS weekly Senior Staff meetings. Communications and Deliverable Approval PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 5 OF 9 UPDATED 2/05/13

35 Department of Financial Services DIS Project Management Office Project Management Plan Provide information about the primary communication guidelines and how deliverables can be approved. Each Division shall identify a primary and back-up point of contact. Communications will be through the identified points of contact. Meeting summaries or correspondence will be produced to summarize decisions and assign Action Items, with due dates. Communication that may affect the project schedule or scope will be made via . Acceptance of project documentation and deliverables may be indicated via . Project Team members will the Project Manager as soon as they realize they might miss a deadline. Risk and Issue Management Plan Risks may arise throughout the course of the project and may not require action. Some risks may last for the duration of the project. (ex. Work on this project may have to stop if the COOP is invoked due to a hurricane or other event). However, the project team will identify risk responses and triggers so they can respond proactively in the event the probability of a given risk increases. Project team members and stakeholders will report risks to the Project Manager. Project team members and stakeholders will report issues to the Project Manager. Issues evolve from known or unknown risks and should be resolved promptly. Issues that cannot be resolved by the Project Manager and the team will be escalated to the Project Sponsor(s) or Steering Committee for resolution. Risks and issues will be tracked in the Project Tracking Book (PTB). See attachment B. Quality Management Plan The Project Manager is responsible for ensuring that deliverables are reviewed, validated and approved by subject matter experts and impacted groups before acceptance. Stakeholder review and signoff on deliverables is required. Scope/Change Management Plan If a team member or project stakeholder determines that a change to the project scope or test plan is needed, s/he will complete the Change Request Form (Attachment #) and send it to the Project Manager. The Project Manager will log the Change Request in the PTB and then assess the request for schedule and costs impacts. The findings will be shared with the requestor before forwarding to the Project Sponsors for a decision. Project Close-out Plan PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 6 OF 9 UPDATED 2/05/13

36 Department of Financial Services DIS Project Management Office Project Management Plan The Project Manager will conduct a Lessons Learned meeting to share and gather feedback for use in the management of future projects. The Project Manager will document Lessons Learned and forward to all stakeholders in order to facilitate improvement activities. Upon project completion, the Project Manger will request written signoff by the project sponsor, project sponsor and key stakeholders. Upon project completion, the PMO Manager will send a survey to assess the customers and team s satisfaction with the Project Manager s performance and project experience. The Project Manager is responsible for filing all project documentation. PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 7 OF 9 UPDATED 2/05/13

37 Department of Financial Services DIS Project Management Office Project Management Plan Signature and Acceptance Page (Please include signatories that are appropriate for your project.) I have reviewed this Project Management Plan (PMP) and agree that the content of the document is accurate as of the date of my signature and clearly describes the work to be done for the project. This document serves as the source of project information and will be updated as required. <Name> Project Sponsor <Name> Project Manager Date Date <Name> Role Date <Name> Role Date <Name> Role Date <Name> PMO Manager Date PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 8 OF 9 UPDATED 2/05/13

38 Department of Financial Services DIS Project Management Office Project Management Plan Attachment # Project Scope Change Request Form (This form does not serve as an amendment to a contract.) [Insert Project Name] Date Reported: Requested By: Scope Change Description: Business Benefit: Implications of Not Making the Change: Scope Change Status: (In Progress, Closed) This section to be completed by Project Manager and Project Team Scope Change Assigned To: Scope Change Number: Impact Analysis to the Project: (Cost, Schedule, Resources) Alternatives: Final Resolution: Approval from Sponsor to Investigate (Optional): Approval from Sponsor for Final Resolution: Date: Date Resolved: PROJECT MANAGEMENT PLAN: TEMPLATE PAGE 9 OF 9 UPDATED 2/05/13

39 Column A - Agency OLO Column B - Agency Name Column C - Shadow System Name Column D - Shadow System Acronym Column E - Category Column F - Technical Owner Group Column G - Functional Description of System Column H - Functional Organizational Units Served by System Column I - Functional Unit Contact Column J - Hardware Column K - Software Column L - System Interfaces to FLAIR Column M - Data Transfer with FLAIR Column N - Program Name Exhibit F Format for Inventory of Agency Systems that Interface with FLAIR