Implementation Advance Planning Document. Multi-State Consortium ewic Planning Project

Transcription

1 Multi-State Consortium ewic Planning Project Implementation Advance Planning Document Inter Tribal Council of Arizona, New Hampshire and Kansas WIC Programs May 10, 2016 Version 1.5

2 Table of Contents Table of Contents... i Table of Exhibits... iv Version History... vi 1 Executive Summary Purpose of the IAPD Project Background Strategy ITCA: New Hampshire: Kansas: High Level Schedule Implementation Budget Operations Costs Project Management and Resource Requirements Narrative Statement Scope Implementation Activities Supported by Requested Funding Statewide Expansion Procurement Plan ITCA Kansas New Hampshire Staffing and Oversight Project Management Project Organization Roles of the ewic Implementation Project Schedule of Activities, Milestones, and Deliverables Schedule Narrative Proposed Budget Approach to Project Budget Implementation Budget ITCA New Hampshire Kansas Cost Allocation Plan Quality Management Organization, Responsibilities, and Interfaces Tools, Environment, and Interfaces Quality Management Quality Planning Quality Assurance Quality Control Deliverable Acceptance QA Support MSC ewic IAPD Table of Contents Page i

3 7 Risk Management Risk Management Planning Risk Identification Process Risk Analysis Risk Response Planning Risk Monitoring and Control Issues Log Change Management Plan Types of Change Scope Changes Schedule Changes Budget Changes Key Staff Changes Key Change Management Components Change Management Stakeholders Change Management Processes Change Request Initiation Change Management Process Steps Change Management Log Change Request Form Evaluating Changes Communications Management Communication Stakeholders High Level Communication Guidelines Escalation Processes Types of Communication Written Communications Correspondence On-Site Meetings Communication Tools and Documentation State Agency/Contractor Assurances National Universal Product Code (UPC) Database Interface Technical Standards Standard Business Practices Vendor Enablement Background Vendor Readiness ITCA: New Hampshire: Kansas Vendor Enablement Support and Resources Vendor Enablement Activities ewic Service Providers MSC WIC Programs Monitoring of Vendor Readiness Sharing POS Terminals with SNAP MSC ewic IAPD Table of Contents Page ii

4 11.7 State Agency WIC Vendor Agreements Pilot Area Statewide Rollout Up-Front Investment and Ongoing Expenses ITCA New Hampshire Kansas Request for Waiver of Depreciation Security Plan Training Plan Training Expectations Types of Training User Acceptance Test Training System Operations Training for State Agency Staff WIC Clinic Pilot Training WIC Clinic Staff Training Prior to Rollout Vendor Training Service Provider Help Desk Staff Training Cardholder Training Clinic Enablement Pilot Clinics Statewide Expansion of Clinics Appendix A: Functional Requirements Appendix B: Acronyms Appendix C: Budget Documents ITCA Budget... Error! Bookmark not defined. New Hampshire Budget... Error! Bookmark not defined. Kansas Budget... Error! Bookmark not defined. Appendix D: MSC Change Management Process MSC ewic IAPD Table of Contents Page iii

5 Table of Exhibits Exhibit 1: Version Control... vi Exhibit 2: High Level Schedule of Milestones... 3 Exhibit 3: Implementation Costs... 4 Exhibit 4: Paper vs. ewic Costs... 6 Exhibit 5: MSC Attributes... 7 Exhibit 6: High Level Schedule... 8 Exhibit 7: Pilot and Rollout Plan Exhibit 8: Selected Procurement Approaches Exhibit 9: Northeast Coalition of States WIC Services Contract Language Exhibit 10: EBT Implementation Organizational Structure Exhibit 11: Project Members and Roles Exhibit 12: ITCA ewic Project Schedule Exhibit 13: New Hampshire ewic Project Schedule Exhibit 14: Kansas ewic Project Schedule Exhibit 15: Estimated ewic Implementation Costs for ITCA Exhibit 16: Summary of ITCA Ongoing ewic Costs Exhibit 17: Estimated ewic Implementation Costs New Hampshire Exhibit 18: Summary of New Hampshire Ongoing ewic Costs Exhibit 19: Estimated ewic Implementation Costs for Kansas Exhibit 20: Summary of Kansas Ongoing ewic Costs Exhibit 21: Quality Management Roles and Responsibilities Exhibit 22: Quality Management Tools Exhibit 23: Risk Management Approach Exhibit 24: Risk Log Components Exhibit 25: Issue Log Components Exhibit 26: Change Request Initiating Entities Exhibit 27: Change Management Process Work Flow Exhibit 28: Change Process Steps Exhibit 29: Change Management Log Components Exhibit 30: Sample Change Request Form Exhibit 31: On-site Meetings Exhibit 32: Internal Communication Exhibit 33: Communication with MSC ewic Team Members MSC ewic IAPD Table of Exhibits Page iv

6 Exhibit 34: Communication with Clinics Exhibit 35: Communication with WIC Vendors Exhibit 36: Communication with Participants Exhibit 37: ITCA Vendor Enablement Costs Exhibit 38: New Hampshire Vendor Enablement Costs Exhibit 39: Kansas Vendor Enablement Costs Exhibit 40: Training Provision Exhibit 41: Overview of ewic Implementation Activities at the Local Level MSC ewic IAPD Table of Exhibits Page v

7 Version History Exhibit 1: Version Control Version # Date Document Change Responsible Party v /15/2015 Compiled Draft Mary Hinderer, MAXIMUS v /4/2015 Updated based on comments provided by MSC V1.2 12/9/2015 Updated based on additional comments provided by MSC V1.3 3/3/2016 Updated based on FNS comments Ellen Thompson, MAXIMUS Ellen Thompson, MAXIMUS Ellen Thompson, MAXIMUS MSC ewic IAPD Version History Page vi

8 1 Executive Summary The purpose of this IAPD is to request approval to proceed and funding for the implementation of ewic in the member states of the Multi State-Consortium (MSC): Kansas, New Hampshire and Inter Tribal Council of Arizona (ITCA). It was written following the guidelines of the FNS Handbook Purpose of the IAPD The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is administered by the United States Department of Agriculture (USDA), Food and Nutrition Service (FNS). To fund the WIC Program, FNS provides Federal grants to states for supplemental foods, health care referrals, and nutrition education. Multi-State Consortium member State Agencies, Kansas, New Hampshire and ITCA, administer WIC in their respective states. The three programs combined provide more than $70 million in food benefits annually to an average of approximately 106,000 clients per month at 238 clinic sites statewide in the three states. All WIC benefits are currently issued via paper checks which clients exchange for food at approximately 700 local retailers. In December 2010, President Obama signed into law the Healthy Hungry-free Kids Act, which mandates that all states implement ewic by October ewic provides WIC Programs with the ability to issue benefits electronically to WIC participants, eliminating the need for paper WIC checks. An ewic system(s) may be an on-line system, using magnetic stripe cards and real time transaction processing or an offline system using smart cards (cards embedded with an integrated circuit chip or ICC) and batch file processing. The MSC Consortium is currently in the planning stages for an on-line ewic solution. When the WIC Programs implement ewic, the MIS used by the MSC must interface with the selected ewic system(s) and together the MSC MIS and the ewic system(s) must provide the functions and interfaces to outside systems necessary to issue, redeem, and settle WIC benefits electronically. In implementing ewic, the MSC Consortium will meet this federal mandate and provide distinct benefits to the WIC Program s stakeholders who include the State Agency staff administering WIC, WIC local agencies and clinics, WIC participants, and WIC authorized vendors. This ewic Implementation Advance Planning Document (IAPD) has been created to assure the United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) that the MSC Consortium WIC Programs understands the tasks necessary to implement ewic and to request funding for the ewic implementation. 1.2 Project Background The MSC Consortium WIC Programs contracted with MAXIMUS Health Services, Inc. in March 2015 to conduct ewic planning activities. Initial planning activities included a series of deliverables. Deliverables completed to date include: Project Work Plan and Training Gap Analysis Procurement Options Study EBT Affordability Vendor Readiness MSC ewic IAPD Page 1 1: Executive Summary

9 As a result of these deliverables, the MSC Consortium WIC Programs determined that the best options for procuring ewic services prior to the 2020 mandate are those that involve partnering with other WIC agencies or through existing contracts vehicles. 1.3 Strategy The cost of ewic varies from contract to contract, based on a number of variables. Because the MSC WIC Programs operate within differing regions, this is especially true. After careful analysis of the options available to each WIC Program, the MSC Consortium WIC Programs identified the primary avenue they will pursue for ewic services, and, in the case of ITCA and Kansas, a secondary option for obtaining ewic services if the primary option does not produce the desired outcomes ITCA: ITCA considered the following two options: Primary: Procure through Arizona HANDS Consortium Contract Secondary: Partner with Kansas ITCA has identified working with the HANDS Consortium as the primary approach to procuring ewic services, but will also maintain communication with Kansas about options for partnering for joint procurement. HANDS provides a procurement vehicle that is established, already includes ITCA, and is in progress. Kansas should continue to keep ITCA as part of future discussions with contractors (with either option pursued) so that ITCA can have a fallback position if issues arise with the HANDS Consortium New Hampshire: Because New Hampshire is a member of the Northeast Coalition of States (NCS) which has procured EBT services for SNAP and cash benefits and also offers the option for New Hampshire to procure services through this existing contract, New Hampshire only considered one option in procuring ewic services: Primary: Proceed with Northeast Coalition of States In a way, this option combines both partnering with New Hampshire SNAP as well as participating in a multi-state consortium. The NCS includes Connecticut, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. Xerox is the current NCS service provider Kansas: The Kansas WIC Program considered the following two procurement options: Primary: Negotiate with State SNAP EBT Contractor Secondary: Join the Western States EBT Alliance Kansas WIC will pursue negotiations with their SNAP contract as the primary option as it is immediately available to them. At the same time, they will begin inquiries into joining WSEA so that they have the necessary information and could pursue it as a secondary option if needed when that contract becomes available for new members. MSC ewic IAPD Page 2 1: Executive Summary

10 1.4 High Level Schedule During Federal Fiscal Year (FFY) 2015, the MSC Consortium WIC Programs planning contractor(s) will have prepared this IAPD and is contracted to prepare a Statement of Work (SOW), which may or may not be incorporated into a full Request for Proposals (RFP) for ewic services. The SOW and RFP should be completed and reviewed by USDA FNS no later than March 25, 2016, the end of the planning contract. Moving forward into implementation will depend on federal funding. When developing the schedule for ewic, we have assumed that federal funding will be available on May 2, Based on that assumption, we have developed a detailed schedule for each MSC member, which are being submitted with this IAPD. A high level schedule is provided in the exhibit below. Exhibit 2: High Level Schedule of Milestones Activity Start Date Completion Date ITCA Acquisition of ewic Project Manager April 2016 September 2016 Acquisition of WIC EBT Service Provider March 2016 October 2016 Acquisition of single MSC WIC EBT QA Consultant April 2016 September 2016 ewic System Modifications and Installation Activities October 2016 May 2017 MIS Modifications Complete March 2017 March 2017 Conduct UAT April 2017 June 2017 Pilot July 2017 September 2017 Statewide Rollout October 2017 April 2018 Project Closeout Complete May 2018 May 2018 New Hampshire Acquisition of ewic Project Manager April 2016 September 2016 Acquisition of WIC EBT Service Provider March 2016 October 2016 ewic System Modifications and Installation Activities October 2016 May 2017 MIS Modifications Complete March 2017 March 2017 Conduct UAT April 2017 June 2017 Pilot July 2017 September 2017 Statewide Rollout October 2017 February 2018 Project Closeout Complete March 2018 March 2018 Kansas Acquisition of WIC EBT Service Provider February 2016 September 2016 ewic System Modifications and Installation Activities October 2016 May 2017 MIS Modifications Complete February 2017 February 2017 MSC ewic IAPD Page 3 1: Executive Summary

11 Activity Start Date Completion Date Conduct UAT March 2017 May 2017 Pilot June 2017 September 2017 Statewide Rollout September 2017 April 2018 Project Closeout Complete May 2018 May 2018 Please note the following concerning this schedule: ITCA and New Hampshire will share one procurement for an ewic project manager for each state agency. Each state agency will have a separate contract with the winning bidder. Kansas and ITCA rollout activities may cross holiday months depending on the final ewic service provider schedule. Because vendors typically prefer not to have rollout activities impact them during these months schedule includes two additional months to accommodate a pause in the rollout if needed.. The schedule assumes that all modifications required for the MIS will be completed no later than February ITCA will procure a single Quality Assurance (QA) Contractor for use by all MSC members. Kansas will be using internal resources instead of contracting with an ewic Project Manager. 1.5 Implementation Budget In developing the implementation budget, we have assumed that the agencies will pursue their primary procurement strategies. The following table provides an overview of the implementation costs by grant type for each state agency. Exhibit 3: Implementation Costs by Fund Source Project Funding Sources Source of funding Source year Amount Received Spent Requesting ( ) ( ) ( ) ITCA NSA Funds FFY 2016 ITCA Technology Funds FFY 2016 ITCA NSA Funds FFY 2017 ITCA NSA Funds FFY 2018 Total Project budget MSC ewic IAPD Page 4 1: Executive Summary

12 Project Funding Sources Source of funding Source year Amount Received Spent Requesting ( ) ( ) ( ) KS NSA Funds FFY 2016 KS Technology Funds FFY 2016 KS NSA Funds FFY 2017 KS NSA Funds FFY 2018 Total Project budget Project Funding Sources Source of funding Source year Amount Received Spent Requesting ( ) ( ) ( ) NH NSA Funds FFY 2016 NH Technology Funds FFY 2016 NH NSA Funds FFY 2017 NH NSA Funds FFY 2018 Total Project budget 1.6 Operations Costs The implementation of ewic by October 2020 is mandated for WIC State Agencies. However, for the MSC State Agencies, the gap between cost savings and expenditures is significant. The following details the cost comparisons by CPCM for the paper environment and ewic environment for each State Agency. The MSC will explore additional avenues and opportunities in moving forward to reduce the impacts of ewic on current operating costs. MSC ewic IAPD Page 5 1: Executive Summary

13 Exhibit 4: Paper vs. ewic Costs ITCA Cost Comparison Cost Type Paper Environment Operations ewic Environment Operations Monthly Annual CPCM New Hampshire Cost Comparison Cost Type Paper Environment Operations ewic Environment Operations Monthly Annual CPCM Kansas Cost Comparison Cost Type Paper Environment Operations ewic Environment Operations Monthly Annual CPCM MSC ewic IAPD Page 6 1: Executive Summary

14 2 Project Management and Resource Requirements 2.1 Narrative Statement Multi-State Consortium (MSC) member state agencies, Kansas, New Hampshire and the Inter Tribal Council of Arizona (ITCA), administer WIC in their respective states and territory. The three programs combined provide more than $70 million in food benefits annually to an average of approximately 90,000 clients per month at 238 clinic sites statewide in the three states. All WIC benefits are currently issued via paper checks or vouchers which clients exchange for food at approximately 700 local retailers. The following exhibit provides basic statistics for each MSC member. These statistics are fluid; participants, clinics, and vendors are subject to change. Exhibit 5: MSC Attributes Attribute Statistics ITCA Number of WIC Participants 9,301 Number of WIC Clinics 47 Number of WIC Vendors 140 New Hampshire Number of WIC Participants 14,736 Number of WIC Clinics 64 Number of WIC Vendors 176 Kansas Number of WIC Participants 65,699 Number of WIC Clinics 117 Number of WIC Vendors Scope Implementation Activities Supported by Requested Funding Implementation funding requested from USDA FNS will be used for specific implementation activities, services, hardware, and materials. Specific services will include: ewic system(s) design, configuration and implementation by the ewic service providers (SP) ewic implementation management and support from the ewic SP MIS configuration for ewic by the MIS contractor Contracted project management for ITCA and NH MSC ewic IAPD Page 7 2: Project Management and Resource Requirements

15 The Management Information System (MIS)-EBT interface by the ewic SP and the MIS contractor Quality Assurance (QA) support and subject matter expertise (SME) by a shared QA contractor Security assessments and testing support from the members information technology departments Specific hardware will include: Magnetic stripe card swipe devices Personal Identification Number (PIN) selection terminals Point of sale (POS) terminals Specific materials will include: Magnetic stripe cards Operations manuals Training materials Participant brochures Card protectors Implementation of online outsourced ewic will require an estimated $xxx in technology grant funding across the three state agencies. The implementation of ewic will require a myriad of activities supported by MSC WIC Program staff and contractors. The MSC WIC Programs are fully cognizant of these activities and the level of effort it will require to complete them. Given the current staff size, the following MSC WIC Programs intend to contract for additional services: ITCA: ewic Project Manager, responsibilities include coordinating all ewic implementation activities and resources New Hampshire: ewic Project Manager, responsibilities include coordinating all ewic implementation activities and resources The following exhibit provides rolled up activities taken from the detailed project schedule. It includes the contract deliverables anticipated from the ewic SP, the MIS contractor and the QA contractor. Exhibit 6: High Level Schedule Activity Start Date Completion Date ITCA Acquisition of ewic Project Manager April 2016 September 2016 Acquisition of WIC EBT Service Provider March 2016 October 2016 Acquisition of single MSC WIC EBT QA Consultant April 2016 September 2016 ewic System Modifications and Installation Activities October 2016 May 2017 MIS Modifications Complete March 2017 March 2017 Conduct UAT April 2017 June 2017 Pilot July 2017 September 2017 MSC ewic IAPD Page 8 2: Project Management and Resource Requirements

16 Activity Start Date Completion Date Completion of Pilot Evaluation / Rollout Go-No Go / Rollout Readiness Activities September 2017 September 2017 Statewide Rollout October 2017 April 2018 Project Closeout Complete May 2018 May 2018 New Hampshire Acquisition of ewic Project Manager April 2016 September 2016 Acquisition of WIC EBT Service Provider March 2016 October 2016 ewic System Modifications and Installation Activities October 2016 May 2017 MIS Modifications Complete March 2017 March 2017 Conduct UAT April 2017 June 2017 Pilot July 2017 September 2017 Completion of Pilot Evaluation / Rollout Go-No Go / Rollout Readiness Activities September 2017 September 2017 Statewide Rollout October 2017 February 2018 Project Closeout Complete March 2018 March 2018 Kansas Acquisition of WIC EBT Service Provider February 2016 September 2016 ewic System Modifications and Installation Activities October 2016 May 2017 MIS Modifications Complete February 2017 February 2017 Conduct UAT March 2017 May 2017 Pilot June 2017 September 2017 Completion of Pilot Evaluation / Rollout Go-No Go / Rollout Readiness Activities September 2017 September 2017 Statewide Rollout (with holiday break) September 2017 April 2018 Project Closeout Complete May 2018 May 2018 Details of these activities and time frames can be found in the project schedule, included in Section 3. The MSC WIC Programs issue benefits for three months or less, depending on participant needs and risk factors. As a result, all existing pilot participants will have been issued a card after three months of pilot operations. To ensure statewide implementation readiness, the MSC WIC Programs intend to conduct the pilot and its evaluation over three months, followed by two to three weeks to make the final go/no-go decision for rollout and receive approval by FNS before continuing with statewide implementation. This period will also be used for rollout readiness activities which may also begin prior to the end of pilot. MSC ewic IAPD Page 9 2: Project Management and Resource Requirements

17 2.2.2 Statewide Expansion The MSC WIC Programs are planning to conduct a pilot over a three month period with an extra month to complete the evaluation and acquire FNS approval for statewide expansion. During these four months, the MSC WIC Programs are confident that the WIC Program and the ewic service providers will have completed all activities necessary for statewide expansion. The MSC WIC Programs then intend to implement ewic incrementally over several weeks. ITCA intends to roll out 3 areas across 5 weeks, KS intends to roll out 6 areas over the course of 12 weeks, and NH intends to roll out 3 areas across 6 weeks. This schedule will allow the MSC WIC Programs to provide training to clinic staff across the state or territory prior to implementing ewic in that region and will also allow WIC vendors to implement ewic efficiently statewide. The pilot and rollout locations are presented in the exhibit below: Exhibit 7: Pilot and Rollout Plan Agency ITCA Kansas New Hampshire Pilot Pilot Gila River Indian Community Shawnee Goodwin Community Health Center Rollout Rollout 1 Pascua Yaqui Tribe, Tohono O'odham Nation Northeast Belknap/Merrimack Community Action Program Rollout 2 San Carlos Apache Tribe, Northwest Southern New Hampshire Service White Mountain Apache Tribe Rollout 3 Native Health, Salt River Pima-Maricopa Southwest Southwest Community Action Program Indian Community, Yavapai Apache Nation Rollout 4 Hopi Tribe Northcentral Hualapai Tribe Havasupai Tribe Colorado River Indian Tribes Rollout 5 Southcentral Rollout 6 Southeast 2.3 Procurement Plan The procurement plan for each state agency was determined based upon the following assumptions. The MSC is pursuing online, outsourced ewic services from a ewic Service Provider. The MSC is pursuing procurement options that are most feasible and affordable for the individual MSC State Agency. It is not assumed that the MSC will acquire ewic services as a consortium although there may be secondary options for two of the members to join together in a procurement effort. These procurement strategies selected by each MSC member are summarized in the exhibit below: MSC ewic IAPD Page 10 2: Project Management and Resource Requirements

18 Exhibit 8: Selected Procurement Approaches MSC State Agency ITCA New Hampshire Kansas Primary Procurement Approach Procure through Arizona Health and Nutrition Delivery System (HANDS) Consortium, which includes the Arizona Department of Health Services (DHS), American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam, and the Navajo Nation. Proceed with Northeastern State Coalition (NSC) NCS procured EBT services for SNAP, cash and WIC benefits with Xerox. The NCS includes the states of Connecticut, the Commonwealth of Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. Negotiate with State SNAP EBT Contractor The following provides further explanation regarding the MSC procurement choices ITCA ITCA considered the following two options: Primary: Procure through Arizona HANDS Consortium Contract Secondary: Partner with Kansas ITCA has identified working with the HANDS Consortium as the primary approach to procuring ewic services, but will also maintain communication with Kansas about options for partnering for joint procurement. HANDS provides a procurement vehicle that is established, already includes ITCA, and is in progress. Kansas should continue to keep ITCA as part of future discussions with contractors (with either option pursued) so that ITCA can have a fallback position if issues arise with the HANDS Consortium. The following language is included in the HANDS Consortium RFP: Part 2: Inter Tribal Council of Arizona EBT Implementation Services The Inter Tribal Council of Arizona, Inc. (ITCA) is a 501(c)(3) non-profit corporation that administers WIC as a state agency. ITCA WIC provides services to an average of 9,500 clients per month through 11 Tribal local agencies and 1 urban Indian health center. Through the local agencies, ITCA WIC operates 14 permanent clinic sites and 50 mobile sites on reservations throughout Arizona and in the Phoenix and Tucson urban areas. ITCA WIC contracts with 150 vendors that redeem the benefits issued to clients each month. Vendors range from small reservation based trading posts to large super centers. ITCA WIC is a member of the Multistate Consortium (MSC) with the States of Kansas and New Hampshire. The MSC operates a.net based computer system developed by CQuest America, Inc. for certifications, issuance of benefits, vendor management and reporting ITCA WIC is interested in obtaining EBT implementation products and services outlined in the scope of work deliverables 11 through ITCA WIC shall have the option to utilize any or all EBT implementation products or services. MSC ewic IAPD Page 11 2: Project Management and Resource Requirements

19 Part 5: 1. Information for Offerors Kansas This RFP is for Online WIC Electronic Benefit Transfer (EBT) implementation and processing services for the Arizona, American Samoa, Commonwealth of the Northern Mariana Islands, Guam, and Navajo Special Supplemental Nutrition Program for Women, Infants and Children (WIC). The Inter-Tribal Council of Arizona (ITCA) WIC Program has the option to purchase products and services from this solicitation. Proposals must be for all required and optional services Operating Costs The operating costs with WIC EBT are calculating by multiplying the number of households served in the previous month by the cost per case month (CPCM). The tiered active households represents the monthly combined households of Arizona, American Samoa, Commonwealth of the Northern Mariana Islands, Guam, Navajo Nation, any other WIC Agencies, and (ITCA, if applicable), that join the contract. The CPCM pricing may vary based on the combined households each month; The flat fee differential represents the additional monthly costs to operate WIC EBT in remote locations and/or if ITCA joins he Contract The Contractor shall utilize the pricing schedule 2 and 3 for all hardware and operating services. ITCA WIC and the Contractor shall negotiate pricing for all other implementation related deliverables. The Kansas WIC Program considered the following two procurement options: Primary: Negotiate with State SNAP EBT Contractor Secondary: Join the Western States EBT Alliance Kansas WIC will pursue negotiations with their SNAP contract as the primary option as it is immediately available to them. At the same time, they will begin inquiries into joining WSEA so that they have the necessary information and could pursue it as a secondary option if needed when that contract becomes available for new members. The following language is included in the Kansas SNAP EBT Request for Proposals: G. Future Additional Programs: The Contractor must support the State in pursuit of future additional State and Federal program benefits including, but not limited to, WIC (Women, Infants and Children), Adoption Support, and Foster Care. The Contractor must agree to negotiate in good faith toward developing a contract amendment, subject to applicable State agency approval, to include pricing and development costs associated with any additional programs. At this time, the State has no intentions of adding any of these programs but wants to reserve this right for future considerations and/or mandates. Vendors are encouraged to demonstrate any products which are not specifically requested in this RFP. Such demonstrations should be expressed in sufficient detail to enable the State to determine usefulness of the product(s). Although not included in this RFP, the State would be interested in but not limited to functional demonstrations of EBT WIC and Low Income Energy Assistance Program (LIEAP) products. The executed Kansas SNAP/FIS Contract contains the following language: MSC ewic IAPD Page 12 2: Project Management and Resource Requirements

20 E. Future Additional Programs: The Contractor shall support the State in pursuit of future additional State and Federal program benefits including, but not limited to, WIC (Women, Infants and Children), Adoption Support, and Foster Care. The Contractor shall agree to negotiate in good faith toward developing a contract amendment, subject to applicable State agency approval, to include pricing and development costs associated with any additional programs. The State reserves this right for future considerations and/or mandates New Hampshire Because New Hampshire is a member of the Northeast Coalition of States (NCS) which has procured EBT services for SNAP and cash benefits and also offers the option for New Hampshire to procure services through this existing contract, New Hampshire only considered one option in procuring ewic services: Primary: Proceed with Northeast Coalition of States In a way, this option combines both partnering with New Hampshire SNAP as well as participating in a multi-state consortium. The NCS includes Connecticut, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. Xerox is the current NCS service provider. The language that addresses WIC services in the NSC contract has been included in the attached file below. Exhibit 9: Northeast Coalition of States WIC Services Contract Language wic_ pdf 2.4 Staffing and Oversight Project Management Each MSC state agency will assigned a dedicated project manager to support the ewic implementation efforts. ITCA and New Hampshire will obtain an outsourced project manager and Kansas intends to use an internal resource Project Organization The following represents the ewic Implementation Project Team organization in each MSC state agency. The graphic shows how each state agency will each manage their ewic project, stakeholders and ewic service provider. Additionally, each state agency will share the services provided by the MSC MIS contractor and a QA contractor. MSC ewic IAPD Page 13 2: Project Management and Resource Requirements

21 Exhibit 10: EBT Implementation Organizational Structure ITCA Project NH Project USDA FNS (WRO) ITCA WIC Director MSC MIS Contractor NH WIC Director USDA FNS (NERO) ITCA State Agency Staff NH State Agency Staff ITCA Project Manager QA Contractor NH Project Manager ITCA ewic Service Provider ITCA Project Stakeholders NH ewic Service Provider NH Project Stakeholders KS Project USDA FNS (MPRO) KS WIC Director KS State Agency Staff KS Project Manager KS ewic Service Provider KS Project Stakeholders The formal management structure includes multiple layers of oversight, which includes departmental support and FNS Roles of the ewic Implementation Project WIC Director The WIC Director(s) is responsible for project oversight and has the overall authority for final decision making. The WIC Director(s) monitors all project progress, decisions, issues, risks, and resource usage. The WIC Director(s), with the support of their respective division/department, will make decisions concerning cost, schedule, and scope of the project activities. The WIC Director(s) is also responsible for communicating project progress with FNS. ewic Project Manager The ewic Project Manager(s) has demonstrated interest in the outcome of the project and has the authority to make decisions determining the operation, order, and management of the project including the prioritization of cost, schedule, scope, and quality. The ewic Project Manager(s) will be responsible for day to day resource allocation, change management assistance, assistance with interagency coordination activities and in coordinating activities between the contractors and the state agency as well as reporting to the WIC Director. While New Hampshire and ITCA will contract individually for ewic Project Managers, Kansas will use existing resources to fill this role. MSC ewic IAPD Page 14 2: Project Management and Resource Requirements

22 Project Stakeholders There are three primary stakeholders in this implementation: WIC vendors, WIC clinics, and WIC participants. During implementation, the MSC WIC Programs must ensure that WIC vendors and WIC clinics are sufficiently prepared to provide ewic services to WIC participants. This means that the MSC WIC Programs or their contractors must interact with WIC vendors and clinics to ensure these stakeholder groups have sufficient knowledge (training) and hardware/software to provide cards, electronic benefits and benefit redemption services to WIC participants. Project Members Project members are those independent entities that are needed to successfully implement ewic. They include the following: Exhibit 11: Project Members and Roles Team Member State WIC Program Staff Quality Assurance Contractor ewic Service Provider MIS Contractor IT Information Technology Role WIC Program staff will be assigned various tasks throughout the implementation based on their area of expertise. These include, but are not limited to: Support the contract negotiation process (or proposal evaluation) Participate in design sessions Review deliverables Participate in UAT Provide training to clinic staff The agencies plan to contract with a single QA contractor. The QA contractor support will begin prior to contracting with a ewic contractor and continue through statewide implementation. The responsibility of each ewic SP is to complete ewic related contract deliverables and tasks successfully and on schedule per their ewic SP contract. The responsibility of the MIS contractor is to make any required modifications to the MIS and to collaborate with the ewic SP to establish the interface between the ewic and the MIS systems. IT staff will provide as-needed technical support staff to review deliverables, including the system security plans, support system interface and testing and conduct system security scans. MSC ewic IAPD Page 15 2: Project Management and Resource Requirements

23 3 Schedule of Activities, Milestones, and Deliverables 3.1 Schedule Narrative During Federal Fiscal Year (FFY) 2015 and early 2016, the MSC WIC Programs planning contractor will assist in finalizing the IAPD. The contract for ewic planning services also includes the preparation of a Statement of Work for ewic services. The contract may be modified if the MSC WIC Programs determine they will go straight into negotiations with a service provider for an ewic contract. All planning documents should be completed and reviewed by USDA FNS by March, 30, Regardless of the approach for acquiring ewic services, the implementation will depend on three critical factors, the availability of federal funding, the readiness of the MIS and, for New Hampshire and ITCA, the ability of the WIC Programs to hire an ewic Project Manager. We have developed three ewic implementation schedules. All schedules assume that implementation funding will be available by May 2, 2016, and, while acquisition activities could begin prior to that date, the states could not enter into contracts prior to that date. The schedules also assume the MIS readiness for online ewic by January The more detailed schedule is based on negotiating a contract with existing ewic service providers or acquiring ewic service providers using an open procurement as appropriate. Please also note the following concerning these schedules: The MSC WIC Programs currently have limited staff members. While the design, development, and test period may seem extended considering the size of the state agencies, the spacing of deliverables has been scheduled so that major deliverable reviews do not overlap. This has slightly extended the implementation (design, develop and test) period but is considered necessary considering MSC WIC Programs staffing. The pilot will occur over a period of three months, with two to three weeks for the completion and approval of the pilot evaluation before starting statewide rollout. Statewide rollout will occur in stages over several weeks, depending on the state agency. Cards being issued to all existing participants will be completed within three months of the last week of rollout. Vendors prefer that major holidays be avoided for rollout activities, the schedule assumes that no rollout activities will occur across November and December to accommodate that preference. This extends the rollout schedule for Kansas. ITCA s schedule is contingent on Arizona/HANDS Partners project schedule as the expectation is that Arizona will rollout before ITCA enabling a large majority of ITCA vendors for ewic. The following high-level schedules provide milestone completion dates for major activities of each project. MSC ewic IAPD Page 16 3: Schedule of Activities, Milestones, and Deliverables

24 Exhibit 12: ITCA ewic Project Schedule MSC ewic IAPD Page 17 3: Schedule of Activities, Milestones, and Deliverables

25 Exhibit 13: New Hampshire ewic Project Schedule MSC ewic IAPD Page 18 3: Schedule of Activities, Milestones, and Deliverables

26 Exhibit 14: Kansas ewic Project Schedule MSC ewic IAPD Page 19 3: Schedule of Activities, Milestones, and Deliverables

27 4 Proposed Budget 4.1 Approach to Project Budget Within the MSC, each state agency will be responsible their own EBT implementation and ongoing costs with the exception of the following: A shared QA contractor Back-end and front-end modifications required for the MSC MIS These two costs will be included in the funding requested by ITCA and paid to the contractors by ITCA. The work effort to complete the MIS readiness enhancement will include: Back-end modifications estimated at $xxx Architecture updates EBT functionality development: o Benefit Issuance o Void/replacement o Clinic business functions that affect the EBA o Account balance o Card management o Client portal Development of online messages and related processes Development of batch files and related processes Documentation updates Testing Front-end modifications estimated at $xxx Screen updates o Card Issuance o Card inventory and management o Assigning benefits and proration o Benefit issuance/redemption screens o Moving clients between EBA s o UPC management o Functionality to track certification of vendors front end systems Report updates o Vendor Management reports dealing with pricing o Food Package reports for redemption information Development of interface with PIN pad o Finding clients within the database with the swipe of the card o Managing EBA s 4.2 Implementation Budget ITCA The estimated costs for the ITCA WIC Program to implement and operate ewic were based on current program data and additional knowledge gleaned from states that have recently implemented ewic. MSC ewic IAPD Page 20 4: Proposed Budget

28 Assumptions Assumptions include the following: The schedule assumes that o The implementation will include a year of preparation prior to the start of pilot o The ewic Service Provider and QA Contractor will be engaged nine months prior to pilot. o Pilot will last three months o There will be three weeks between the completion of pilot and the start of rollout to complete the pilot evaluation and prepare for rollout o Rollout will last two months ITCA will procure ewic services with the Arizona HANDS Consortium. ITCA will have an upfront cost of $xxx that will be in additional to any upfront costs paid by Arizona or the other HANDS partners. This cost will include the development of the interface between the ewic system and the ITCA MIS which is different from the system used by the HANDS consortium. It is anticipated that the Arizona project will cover vendor enablement for the majority of ITCA vendors. Funding has been included in the ITCA budget to enable any non-arizona vendors. The CPCM is based on the estimated CPCM listed in the Arizona HANDS IAPD. An outsourced Project Manager estimated at $95.00/hour will be hired. Quality Assurance consulting services are based on recent QA services procured by other state agencies including Wisconsin and Oregon. ITCA will procure a single QA contractor that will service all three agencies. Vendor enablement costs are based on the current number of WIC authorized vendors and results of the vendor survey. Costs include equipping seventeen vendors with stand-beside devices through pilot and rollout and supporting five vendors with their integration efforts. Total MIS updates are estimated to cost xxx. ITCA is requesting this amount as part of its ewic implementation costs. The other MSC State Agencies will not request funding for MIS updates. ITCA Implementation Budget The following exhibit provides the preliminary estimates for implementation, including design, development, and testing of the ewic system, pilot and pilot evaluation, and statewide rollout. Exhibit 15: Estimated ewic Implementation Costs for ITCA Category Subcategory Cost NSA FUNDED ACTIVITIES State Resources Labor Indirect Costs Overhead TOTAL NSA FUNDED FUNDED BY FNS IMPLEMENTATION FUNDS External Project Manager Bank Identification Number Application Fee Local Clinic Materials Project Management One-time fee to apply for a BIN PIN Selection Devices/ Magnetic Swipe Devices/ Bulk Card Covers MSC ewic IAPD Page 21 4: Proposed Budget

29 Category Subcategory Cost Travel Conferences, Retailer Certification, UPC Collection, Training, Pilot/Rollout Technical Support Quality Assurance Retailer Enablement ECR Software Install/Training, POS Terminal Lease During Pilot / Rollout EBT Processor Implementation Costs MIS Modifications CQuest Upgrades Indirect Costs Overhead TOTAL FUNDED BY FNS IMPLEMENTATION FUNDS TOTAL PROJECT COST For cost details, the ewic Imple mentation Budget is available in Appendix C. MSC ewic IAPD Page 22 4: Proposed Budget

30 Ongoing Costs The following assumptions were used in developing operations costs: CPCM to include stand beside terminal maintenance and supporting newly authorized WIC vendors. Clinic equipment for pin pad terminals, card covers, and magnetic stripe readers will be replaced at a rate of 10% a year. PIN pads will be purchased through the ewic Service Provider The ITCA WIC Program will not adjust staffing levels for ewic. A summary of estimated operating costs is provided in the following exhibit. Exhibit 16: Summary of ITCA Ongoing ewic Costs Ongoing ewic Operations Unit Initial Qty Rate of Replacement Materials/Equipment Card Covers (10% a year) Magnetic Stripe Card Readers Replacement (10% a year) Indirect Costs Total Materials Qty Purchased/ Year Amt/Unit Monthly Quarterly Annually 5 Yr Total* ewic Service Provider Costs/Operations CPCM Stand-Beside POS Devices Pin Pad Replacement (10% a year) Indirect Costs Total Contractor Costs/Operations Total Ongoing ewic Operational Costs MSC ewic IAPD Page 23 4: Proposed Budget \

31 4.2.2 New Hampshire The estimated costs for the New Hampshire WIC Program to implement ewic were based on current program data and additional knowledge gleaned from states that have recently implemented ewic. Assumptions Assumptions include the following: The schedule assumes that o The implementation will include a year of preparation prior to the start of pilot o The ewic Service Provider and quality assurance contract will be engaged nine months prior to pilot. o Pilot will last three months o There will be three weeks between the completions of pilot and the start of rollout to complete the pilot evaluation and prepare for rollout o Rollout will last one month New Hampshire is a member of NCS which has procured EBT services for SNAP, cash and WIC benefits with Xerox. The NCS includes the states of Connecticut, the Commonwealth of Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. Estimated ewic Service Provider implementation fees are $xxx based on Xerox pricing for the NCS. An outsourced Project Manager estimated at $95.00/hour will be hired. Quality Assurance consulting services will be procured by ITCA. Vendor enablement costs are based on the current number of WIC authorized vendors and results of the vendor survey. Costs include equipping seventeen vendors with stand-beside devices through pilot and rollout and supporting five vendors with their integration efforts. Implementation Costs The following exhibit provides the preliminary estimates for implementation, including design, development, and testing of the ewic system, pilot and pilot evaluation, and statewide rollout. Exhibit 17: Estimated ewic Implementation Costs New Hampshire Category Subcategory Cost NSA FUNDED ACTIVITIES State Resources Labor Overhead TOTAL NSA FUNDED FUNDED BY FNS IMPLEMENTATION FUNDS External Project Manager Bank Identification Number Application Fee Equipment / Materials Project Management On-time fee to apply for a BIN PIN Selection Devices/ Bar Code Scanners / Magnetic Swipe Devices / Card Covers MSC ewic IAPD Page 24 4: Proposed Budget

32 Category Subcategory Cost Travel Conferences, Retailer Certification, UPC Collection, Training, Pilot/Rollout Technical Support Quality Assurance Retailer Enablement ECR Software Install/Training POS Terminal Lease Cost MIS Modifications CQuest Upgrades EBT Processor Implementation Costs State Cost Allocation Overhead TOTAL FUNDED BY FNS IMPLEMENTATION FUNDS TOTAL PROJECT COST For cost details, the ewic Implementation Budget is available in Appendix C. MSC ewic IAPD Page 25 4: Proposed Budget

33 Ongoing Costs The following assumptions were used in developing operations costs: CPCM to include stand beside terminal maintenance and supporting newly authorized WIC vendors based on participation in the NCS. Clinic equipment for PIN pad terminals, card covers, and magnetic stripe readers will be replaced at a rate of 10% a year. PIN pads and magnetic stripe readers will be purchased through the ewic Service Provider with maintenance support provided The New Hampshire WIC Program will not increase staffing levels for ewic. A summary of estimated operating costs is provided in the following exhibit. Exhibit 18: Summary of New Hampshire Ongoing ewic Costs Ongoing ewic Operations Unit Initial Qty Materials Card Covers Cost Allocation Total Materials Rate of Replacement Purchased Qty/Year Amt/Unit Monthly Quarterly Annually 5 Yr Total ewic Service Provider Costs/Operations CPCM Stand-Beside POS Pin Pad Replacement (10% a year) Pin Pad Maintenance Magnetic Stripe Reader Replacement (10% a year) Magnetic Stripe Reader Maintenance Cost Allocation Total Contractor Costs/Operations Total Ongoing ewic Operational Costs MSC ewic IAPD Page 26 4: Proposed Budget

34 4.2.3 Kansas The estimated costs for the Kansas WIC Program to implement ewic were based on current program data and additional knowledge gleaned from states that have recently implemented ewic. Assumptions Assumptions include the following: The schedule assumes that o The implementation will include a year of preparation prior to the start of pilot o The ewic Service Provider and quality assurance contractors will be engaged nine months prior to pilot. o Pilot will last three months o There will be three weeks between the completion of pilot and the start of rollout to complete the pilot evaluation and prepare for rollout o Rollout will last three months but will include a break for holidays lasting through November and December An average contract and proposal cost of $xxx for ewic Service Provider implementation services, based on Oregon, Wisconsin and South Dakota pricing. There will be an assigned PM for Kansas IT. There is a commitment of other SA staff to provide additional PM support. Quality Assurance consulting services will be procured by ITCA. Vendor enablement costs are based on the current number of WIC authorized vendors and results of the vendor survey. Costs include equipping 44 vendors with stand-beside devices through pilot and rollout and supporting up to 162 vendors with their integration efforts. An analysis of Oregon, Wisconsin and South Dakota pricing was created to assume the ongoing costs (including CPCM). This analysis assumes that Kansas will negotiate the CPCM with the State s SNAP EBT Service Provider. The ewic Service Provider implementation costs include additional funds to reduce the CPCM price. Implementation Costs The following exhibit provides the preliminary estimates for implementation, including design, development, and testing of the ewic system, pilot and pilot evaluation, and statewide rollout. Exhibit 19: Estimated ewic Implementation Costs for Kansas Category Subcategory Cost NSA FUNDED ACTIVITIES State Resources Labor Indirect Costs Overhead TOTAL NSA FUNDED FUNDED BY FNS IMPLEMENTATION FUNDS Project Manager (KS IT) Bank Identification Number Application Project Management One-time fee to apply for a BIN MSC ewic IAPD Page 27 4: Proposed Budget