BRIEF DESCRIPTION: Introduction

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1 STATE OF ILLINOIS REQUEST FOR PROPOSAL The Governor s Office of Management and Budget in collaboration with the Chief Procurement Office for General Services on behalf of the State of Illinois Enterprise Resources Planning (ERP) Software Request for Proposal No.14 OMB 15 Illinois Procurement Bulletin # The State of Illinois ( State ) requests proposals from responsible Offerors to meet its needs. A brief description is set forth below for Offerors convenience, with detailed requirements in subsequent sections of this Solicitation. If interested and able to meet these requirements, the State appreciates and welcomes a Proposal. BRIEF DESCRIPTION: Introduction In issuing this request for proposal ( RFP ), the Governor s Office of Management and Budget in collaboration with the Chief Procurement Office for General Services on behalf of the State of Illinois, seeks to identify a Tier-1 Enterprise Resource Planning Software Package ( ERP Software Package ) capable of helping Illinois standardize its back-office business processes Statewide. The resulting contract with the awarded Offeror shall have an initial term of no more than five (5) years upon full execution. In no event will the total term of the contract, including the initial term, any renewal terms, and any extensions, exceed ten (10) years. Subject to the maximum total term limitation, the State has the option to renew for five (5) additional one (1) year terms. Please read the entire Solicitation and follow the instructions. All forms and signature areas contained in the Solicitation must be completed in full and submitted, along with the Responsiveness portion of the Proposal and Price portion of the Proposal, which combined will constitute the Proposal. Do not submit the instruction pages with your Proposal. Offerors should keep the instruction pages and a copy of their Proposal for future reference. Any firm that assisted in the preparation of this RFP is prohibited from responding to it. Please see Section B for further details on prohibited bidders. Potential Offerors that participated in the ERP RFI process are not prohibited from responding to this RFP. Nor are potential Offerors that did not participate in the ERP RFI process precluded from responding to this RFP. Please adhere to the form and provide the information as required. Proposals that fail to do so will not be considered. 1

2 TABLE OF CONTENTS A. EXECUTIVE SUMMARY... 5 A.1 Overview of RFP... 5 A.2 Items unique to this Solicitation... 7 A.3 Key dates... 7 B. INSTRUCTIONS FOR SUBMITTING PROPOSAL... 8 B.1 How to enter information... 8 B.2 Published procurement information... 8 B.3 Solicitation Contact... 8 B.4 Offeror questions and agency response... 8 B.5 Proposal due date, time, and address for submission of Proposals... 9 B.6 Required meetings for Finalist Offerors only... 9 B.7 Organization required of the Proposal B.8 Submission of Proposals B.9 Small business set-aside B.10 Minority contractor initiative B.11 Federal funds B.12 Employment tax credit B.13 Governing law and forum B.14 Public records and requests for confidential treatment B.15 Reservations B.16 Award B.17 References B.18 Invoicing address B.19 Protest review office B.20 Evaluation process C. SELECTION OF OFFEROR C.1 Evaluation Committee C.2 System integrator C.3 Maximum points C.4 Point allocation for the Responsiveness portion of the Proposal C.5 Point allocation for the Price portion of the Proposal C.6 Detailed Solicitation process

3 D. PROPOSAL CHECKLIST D.1 Solicitation and contract review D.2 Addenda D.3 Proposal submission D.4 Small business set-aside D.5 Packet 1 The Responsiveness portion of the Proposal D.6 Packet 2 The Price portion of the Proposal D.7 Packet 3 Proposal Checklist (Section D) and Attachments AA-MM (less Attachment KK) D.8 Packet 4 Redacted copy of the Proposal with confidential information deleted D.9 Preferences E. PROJECT SCOPE AND REQUIREMENTS E.1 Background E.2 Expected future-state landscape E.3 Functional scope and requirements E.4 Non-functional requirements E.5 Working in partnership with the ERP Project Management Office and any system integrators E.6 Subcontracting E.7 Where services are to be performed F. PRICE PORTION OF THE PROPOSAL F.1 Format of Price F.2 Type of Price: F.3 Expenses allowed: F.4 Taxes: G. DETAILED FACT PACK FOR AGENCIES IN SCOPE G.1 Organizational G.2 Financial Business Management users G.3 Human Capital Management users G.4 Administrative Services users G.5 Technical Information H. PROPOSAL RESPONSE AND OFFEROR QUALIFICATIONS H.1 Scope Sheet H.2 Offeror s product information question H.3 Offeror s proposed solution to meet the State s functional requirements

4 H.4 Non-functional requirements H.5 Response to other non-functional requirements H.6 Offeror organizational information H.7 Offeror s Price portion of the Proposal H.8 References from other implementations I. APPENDIX I.1 ERP Software Package - Scope sheet I.2 ERP Software Package product information I.3 Functional requirement spreadsheets I.4 Non-functional requirement spreadsheets I.5 Offeror information worksheets I.6 Reference sheet I.7 Price sheet I.8 State attachments

5 A. EXECUTIVE SUMMARY A.1 Overview of RFP A.1.1 Purpose The purpose of this RFP is to satisfy procurement requirements so that the State can contract with a Tier-1 ERP Software Package provider. A Tier-1 ERP Software Package serves the business needs of Fortune 100 global enterprises and large states, is scalable to support over 100,000 parallel users and several thousand concurrent transactions, and typically requires a complex, sophisticated information technology ( IT ) infrastructure and highly-skilled IT professional support. A Tier-1 ERP Software Package is distinguished from a lower tier (e.g., Tier-2, Tier-3) ERP Software Package in that a Tier-1 ERP Software Package s scope of functionality is designed to serve large, global businesses and public sector entities, and requires more complicated hardware and more highly skilled IT professionals than does a lower tier ERP Software Package. A.1.2 Objectives Currently, the individual agencies of the State rely on manual or paper-based processes and use disparate technology systems that require employees to make repetitive entries and assemble cross-agency data from multiple systems. Implementation of a single, Statewide ERP Software Package will enable greater financial transparency and compliance with applicable laws and regulations such as the State Chief Information Officer s duty to coordinate development of financial systems, including grants reporting, under the Grant Information Collection Act (30 ILCS 707/1 et seq.), and will reduce overall costs and risks by eliminating the need to maintain multiple systems. The ERP Software Package will empower the State leadership with critical and timely insights into State s operations, helping them to improve the management of State initiatives. A.1.3 Vision for the overall ERP effort The ERP effort will deliver a modern, integrated IT platform for the State of Illinois that: Consistently delivers financial statements in a timely manner Enables Statewide transparency, access to information, and swift decision-making Enables State operations to receive a clean audit from the Auditor General Is a catalyst for the Statewide transformation of administrative services A.1.4 Scope of effort The scope of this RFP is to identify a single, integrated, core Tier-1 ERP Software Package for support functions such as Financial Business Management (FBM), Human Capital Management (HCM), and Administrative Services (ADS). Financial Business Management includes, inter alia: General Ledger (GL) 5

6 Accounts Receivable (AR) Accounts Payable (AP) Asset Lifecycle Management Bank Reconciliation Treasury and Cash Management Budgeting Human Capital Management includes, inter alia: Hiring Management Personnel Administration Labor Relations Payroll Management Benefits Administration Leave Management Time and Attendance Management Compensation Management Performance Management Learning Management Administrative Services include, inter alia: Procurement Encumbrance Accounting Grants Management Travel and Expenses Agencies directly responsible to the Governor, as that term is defined in the Executive Reorganization Implementation Act (15 ILCS 15/3.1), are the entities intended to use the goods and/or services being Solicited by this RFP. Also able to use the goods and/or services being Solicited are State of Illinois governmental entities, such as separately elected Constitutional Officers, should they choose to participate. 6

7 A.2 Items unique to this Solicitation A.2.1 A.2.2 The focus of this RFP is to identify and select only a Tier-1 ERP Software Package; this is not a Solicitation for system integration services. This ERP RFP includes a two-round submission of the Price portion of the Proposal. The Finalist Offerors (as defined in Section C.6.2) will be asked to submit a revised Price portion of the Proposal. Revised submission will be due two days after the request for a revised Price portion of the Proposal. A.3 Key dates A.3.1 Offerors intent to submit Proposal is requested by May 23, While the intent to submit Proposal is neither mandatory nor binding on Offerors, it is convenient for the State to have this information. To advise the State of their interest, Offerors need only notify via the Solicitation contact (refer to Section B.3) of their intention to submit a Proposal in response to this RFP. A.3.2 Proposals are due on June 9, 2014 no later than 2:00 p.m., U.S. Central Time. Proposals (less the Price portion of the Proposals) will be opened on June 9, 2014 at 2:00 p.m. Central Time on the 15th floor of the James R. Thompson Center located at 100 W. Randolph St. Chicago, IL A.3.3 For Finalist Offerors, the State anticipates holding System Demonstrations, oral presentations, and Q&A sessions during the period of June 23, 2014 to July 1, The Finalist Offerors (as defined in Section C.6.2) will be assigned two (2) consecutive dates during the above period to hold System Demonstrations, provide an oral presentation, and answer questions. A.3.4 The State anticipates requesting a second submission of the Price portion of the Proposal on July 7, The second round Price portion of the Proposal will be due two days after the State issues the request for the second submission of the Price portion of the Proposal. Please refer to Section C.6.5 for further details on the scoring and second round submission of the Price portion of the Proposal. 7

8 B. INSTRUCTIONS FOR SUBMITTING PROPOSAL B.1 How to enter information For each of the provided attachments, please use the editable templates provided by typing information in the text fields provided. Text fields are indicated by the instruction Click here to enter text. in red or green font. If the information requested does not apply to the Offeror s situation, then enter N/A in the text field. Please enter either the requested information or N/A in every red text field. B.2 Published procurement information The State publishes procurement information, including updates, on the Illinois Procurement Bulletin ( referred to herein as Bulletin ). Procurement information may not be available in any other form or location. The Offeror is responsible for monitoring the Bulletin. The State will not be held responsible if an Offeror fails to receive any optional notices. B.3 Solicitation Contact The individual listed below shall be the single point of contact for this Solicitation. Unless otherwise directed, Offerors should only communicate with the Solicitation Contact. All communications must be submitted in writing only to the address listed below with the Subject line reading ERP Software RFP Question(s). The State shall not be held responsible for information sent to any other person. Solicitation Contact: Christ Balich Phone: Agency: Budget The Governor s Office of Management and Fax: Street Address: 100 W. Randolph Street, Suite TDD: City, State Zip: Chicago, IL christ.balich@illinois.gov Do not discuss the Solicitation or the Proposal, directly or indirectly, with any State officer or employee other than the Solicitation Contact. B.4 Offeror questions and agency response All questions that pertain to this Solicitation must be submitted via to the Solicitation Contact. Questions received and Agency/State responses may be posted as an Addendum to the original Solicitation on the Bulletin; only these written answers to questions shall be binding on the State. Offerors are responsible for monitoring the Bulletin. 8

9 The first set of questions should be submitted via by May 22, 2014, 10:00 a.m., U.S. Central Time. The State will post responses as an Addendum to the original Solicitation on the Bulletin as soon as possible. Follow-up questions should be submitted via by May 28, 2014, 10:00 a.m., U.S. Central Time. The State will post responses as an Addendum to the original Solicitation on the Bulletin as soon as possible. B.5 Proposal due date, time, and address for submission of Proposals Proposals will be opened at the Submit/Deliver Proposals To address provided below at the Proposal Due Date & Time specified below. B.5.1 Proposal Due Date & Time Date: June 9, 2014 Time: 2:00 p.m. Central Time B.5.2 Proposal Firm Time: The Proposal must remain firm for 90 days from opening; however, at the State s discretion, Offeror may be required to keep the Proposal firm for up to 180 days. B.5.3 Submit/Deliver Proposals To: Agency: The Governor s Office of Management and Budget Attn: Christ Balich Address: 100 W. Randolph Street, Suite City, State Zip: Chicago, IL Label (outside of envelopes/containers): Sealed Proposal Do Not Open Project Title & Reference #: Enterprise Resources Planning (ERP) Software Package, RFP No.14 OMB 15 Due Date & Time: June 9, 2014 at 2:00 p.m. Central Time Offeror Name Offeror City, State Zip B.6 Required meetings for Finalist Offerors only System Demonstrations / oral presentation: Yes No System Demonstrations and oral presentation are mandatory for the Finalist Offerors (as defined in Section C.6.2). Mandatory attendance: Yes No Offeror will be disqualified and considered non-responsive if Offeror does not attend, is not on time, leaves early, or fails to sign the attendance sheet. Offeror must allow adequate time to accommodate 9

10 security screenings at the site. The State anticipates holding System Demonstrations and oral presentation on the following dates: Date: June 23, 2014 July 1, 2014, on two consecutive days allotted to the Offeror within the date range mentioned here. Time: Location: 9:00 a.m. Central Time 5:00 p.m. Central Time Springfield, IL B.7 Organization required of the Proposal Proposals must be submitted in four packets. Packet 1 shall contain the Offeror s Responsiveness portion of the Proposal requested in Section H.1 through H.6 and Section H.8. Packet 2 shall include Offeror s Price portion of the Proposal requested in Section H.7. Packet 3 shall include the completed Proposal Checklist (Section D) and completed attachments AA-MM (less Attachment KK). Packet 4 shall contain a redacted copy of the Proposal. If no redactions are intended to be made there is no need to submit a Packet 4: simply indicate as much to the Solicitation Contact via . The Proposal should be structured using the following guidelines: B.7.1 B.7.2 B.7.3 B.7.4 Offeror s Responsiveness portion of the Proposal and Offeror qualifications (Section H.1 through H.6 and Section H.8) Packet 1 Offeror s Price portion of the Proposal (Section H.7) Packet 2 Proposal Checklist (Section D), Attachments AA through CC, FF through JJ, and MM Packet 3, Tab 1 Attachment EE - supplemental provisions Packet 3, Tab 2 Offeror supplemental provisions - This does not include exceptions to Agency/State specifications, terms and conditions, or any other part of this Solicitation. This is supplemental information that supports an Offeror s position or, for example, an Offeror s licensing agreement. B.7.5 Attachment LL - exceptions - Packet 3 Tab 3 If taken, exceptions must be provided on Agency s/state s Contract Terms and Conditions Exceptions Form or must be in a substantially similar format. State discourages taking exceptions. State law shall not be circumvented by the exception process. Exceptions may result in the rejection of an Offeror s Proposal. B.7.6 Offeror-provided redacted documents - Packet 4 Offeror should provide a redacted copy of the Proposal, if applicable, that removes material considered to be a trade secret or competitively sensitive, confidential, or proprietary. See #9 in Attachment DD - Standard Terms and Conditions. Offeror must 10

11 be aware that all information provided in response to this RFP is considered the property of the State of Illinois and may be available for public review. As a public body subject to laws requiring openness and transparency (e.g., the Freedom of Information Act), the State cannot guarantee that any information submitted pursuant to this RFP will be protected from public disclosure. The burden is on the Offeror to familiarize itself with the Freedom of Information Act and related Public Access Counselor (PAC) letters and opinions and any relevant court opinions. Refer to Section B.14 for additional information. B.8 Submission of Proposals The Proposal must be submitted in four separately sealed packets as indicated below and clearly labeled with the RFP title, the packet number, the Offeror s name and the wording: Sealed Proposal Do Not Open. The four separately sealed packets may be submitted together in one mailing/shipping box or may be submitted separately in four individual mailing/shipping boxes. The soft copies of the four packets should not be included on a single CD or USB. Subject Matter Responsiveness portion of the Proposal packet 1 Price portion of the Proposal packet 2 Proposal Checklist, Attachments AA- MM (Less Attachment KK) and CDs/USBs packet 3 # of Hard Copy Originals # of Hard Copies in Addition to Original # of CDs or USBs Redacted Proposal packet B.9 Small business set-aside Yes No. If Yes is marked, the Offeror must be qualified by the Small Business Set-Aside Program at the time Proposals are due. For complete requirements and to qualify an Offeror s business in the Small Business Set-Aside Program, visit ( B.10 Minority contractor initiative The State requires a fee of $15 to cover expenses related to the administration of the Minority Contractor Opportunity Initiative. Any Offeror awarded a contract under Section 20-10, 20-15, or of the Illinois Procurement Code (30 ILCS 500) of $1,000 or more is required to pay a fee of $15. The Comptroller shall deduct the fee from the first check issued to the Offeror under the contract and deposit the fee in the Comptroller s Administrative Fund. 15 ILCS 405/

12 B.11 Federal funds The Solicitation may be partially or totally funded with federal funds. Upon notice of intent to award, the percentage of goods and/or services involved that are federally funded and the dollar amount of such federal funds will be disclosed. B.12 Employment tax credit Offerors who hire qualified veterans and certain ex-offenders may be eligible for tax credits. 30 ILCS 500/45-67 & Please contact the Illinois Department of Revenue ( ) for information about tax credits. B.13 Governing law and forum Illinois law and rule govern this Solicitation and any resulting contract. Offeror must bring any action relating to this Solicitation or any resulting contract to the appropriate court in Illinois. This document contains statutory references designated with ILCS. Offeror may view the full text at ( The Illinois Procurement Code (30 ILCS 500/ et seq.) and the Standard Procurement Rules (44 ILL. ADM. CODE PART 1) are applicable to this Solicitation and may be viewed by users registered for the Illinois Procurement Bulletin at ( B.14 Public records and requests for confidential treatment Proposals become the property of the State and late submissions will not be returned. All Proposals will be open to the public under the Illinois Freedom of Information Act (FOIA) (5 ILCS 140) and other applicable laws and rules, unless Offeror requests in its Proposal that the State treat certain information as confidential. A request for confidential treatment will not supersede the State s legal obligations under FOIA. The State will not honor requests to keep entire Proposals confidential. Offerors must show the specific grounds in FOIA or other law or rule that support confidential treatment. The State will disclose the successful Offeror s name, the substance of the Proposal, and the Price. If Offeror requests confidential treatment, Offeror must submit additional copy/copies of its Proposal (see Instructions for Submitting Proposals in Section B.) with proposed confidential information redacted. This redacted copy must tell the general nature of the material removed, and shall retain as much of the Proposal as possible. In a separate attachment, the Offeror shall supply a list of the provisions, identified by Section number, for which it seeks confidential treatment, identify the statutory basis under Illinois law, and include a detailed justification for exempting the information from public disclosure. Offeror will hold harmless and indemnify the State for all costs or damages associated with the State defending Offeror s request for confidential treatment. Offeror agrees the State may copy the Proposal to facilitate evaluation, or to respond to requests for public records. Offeror warrants that such copying will not violate the rights of any third-party. B.15 Reservations Offeror must read and understand the Solicitation and tailor the Proposal and all activities to ensure compliance. The State reserves the right to amend the Solicitation, reject any or all Proposals, award by item/service, group of items/services, or grand total, and waive minor defects. The State may 12

13 request a clarification, inspect an Offeror s premises, interview staff, request a presentation, or otherwise verify the contents of the Proposal, including information about subcontractors and suppliers. The State may request Best and Final Proposals when appropriate. The State will make all decisions on compliance, evaluation, terms and conditions, and shall make decisions in the best interests of the State and in accordance with the Illinois Procurement Code, rules and other applicable state and federal statutes and regulations. This competitive process may require the Offeror to provide additional information and otherwise cooperate with the State. If an Offeror does not comply with requests for information and cooperation, the State may reject the Proposal as non-responsive to the Solicitation. Submitting a Proposal does not entitle the Offeror to an award or a contract. Posting an Offeror s name in a Bulletin notice does not entitle the Offeror to a contract. The State is not responsible for and will not pay any costs associated with the preparation and submission of any Proposal. Awarded Offeror(s) shall not commence, and will not be paid for, any billable work prior to the date all parties execute the contract, unless approved in writing in advance by the Governor s Office of Management and Budget, or the Chief Procurement Officer of General Services, as applicable. B.16 Award The State is not obligated to award a contract pursuant to this Solicitation. If the State issues an award, the award will be made to the Offeror whose Proposal best meets the specified criteria, unless otherwise permitted by the Illinois Procurement Code and Administrative Code. However, if the State does not consider the Price portion of the Proposal to be fair and reasonable, and negotiations fail to meet an acceptable Price, the State reserves the right to cancel the award and take appropriate action to meet the needs of the State. The State will determine whether the Price is fair and reasonable by considering the Proposal, including the Offeror's qualifications, the Offeror's reputation, Price portion of the Proposal submitted, other known Prices, the project budget, and other relevant factors. The State will post a notice in the Bulletin identifying the Offeror whose Proposal best meets the specified criteria. B.17 References Yes No. If Yes is marked, Offeror must provide references from entities other than the procuring State, who can attest to Offeror s experience and ability to perform the contract that is the subject of this Solicitation. Offeror must provide the name, contact information and a description of the supplies or services provided using the Reference sheet (please refer to I.6 Attachment H). Type of References: Customers of similar scope, scale, and complexity as the State of Illinois that have installed Offeror s Tier-1 ERP Software Package. Please see Section H.8 for details. Number of Each Reference Type: Ten (10) (See Section H.8 for details). B.18 Invoicing address Offeror shall submit invoices to each using entity under the agreement on a schedule to be determined by the State. Invoicing will vary depending on the using entity. The invoicing address will be established during implementation. 13

14 Offeror shall not bill for any taxes unless accompanied by proof the State is subject to the tax. If necessary, Offeror may request the applicable Agency s Illinois tax exemption number and federal tax exemption information. B.19 Protest review office Offeror may submit a written protest to the Protest Review Office following the requirements of the Standard Procurement Rules. 44 ILL. ADM. CODE For protests related to specifications, the Protest Review Office must physically receive the protest no later than fourteen (14) days after the Solicitation or related addendum was posted to the Bulletin. For protests related to the rejection of individual proposals or awards, the protest must be received by close of business no later than fourteen (14) days after the protesting party knows or should have known of the facts giving rise to the protest. The Protest Review Office s information is as follows: Chief Procurement Office Phone: (217) Attn: Protest Review Office Facsimile: (217) S. Spring Street adam.alstott@illinois.gov Suite 515, Stratton Office Building Illinois Relay: (800) Springfield, IL B.20 Evaluation process The State determines how well Proposals meet the Responsiveness requirements. The State will rank Proposals, without consideration of Price, from best to least qualified, using a point system (unless otherwise specified) as an aid to the evaluation. Offerors who fail to meet minimum qualifications (outlined in Section C.6.1and Figure C.1) will not be considered for Price evaluation and award. The State will evaluate three categories of information: Responsiveness, Responsibility, and Price. The State will consider the information provided and the quality of that information when evaluating Proposals. If the State finds a failure or deficiency, the State may reject the Proposal or reflect the failure or deficiency in the evaluation. B.20.1 Responsiveness: A responsive Offeror is one who submits a Proposal that conforms in all material respects to the RFP, and includes all required forms. Required forms may include, but may not be limited to: State Board of Elections Registration: Offeror may be prohibited from making political contributions and be required to register with the State Board of Elections. See Attachment AA - State Board of Elections Registration for more detail. Authorized to Do Business in Illinois: A person (other than an individual acting as a sole proprietor) must be a duly constituted, legal entity and authorized to do business in Illinois prior to submitting a Proposal. The Offeror shall complete certification #31 in Attachment GG - Standard Certifications, and provide any required documentation. Illinois Department of Human Rights Public Contracts Number: Offeror shall complete and return Attachment CC - Illinois Department of Human Rights Public Contracts Number. 14

15 Subcontractor Disclosure: If an Offeror s Proposal includes any subcontractors, the Offeror shall complete Attachment FF - Subcontractor Disclosure. Standard Certifications: Offeror shall complete Attachment GG - Standard Certifications. Financial Disclosures and Conflicts of Interest: Offeror shall complete Attachment HH - Financial Disclosures and Conflicts of Interest. Disclosure of Business Operations: Offerors shall complete Attachment II - Disclosure of Business Operations with Iran. Business and Directory Information: Offeror shall complete and return Attachment JJ - Business and Directory Information. Taxpayer Identification Number: Offeror shall complete Attachment MM - Taxpayer Identification Number B B The State will determine whether the Proposal meets the requirements. Minor differences or deviations that have a negligible impact on the Price or suitability of the supply or service to meet the State s needs may be accepted or corrections allowed. If no Offeror meets a particular requirement, the State may waive that requirement. The State will determine if the Offeror s Proposal complies with the instructions for submitting Proposals. Except for late submissions, and other requirements that by law must be part of the submission, the State may require an Offeror to correct deficiencies as a condition of further evaluation. B.20.2 Responsibility B B A responsible Offeror is one who has the capability in all respects to fully perform the contract requirements and who has the integrity and reliability that will assure good faith performance. The State will determine if the Offeror is a responsible Offeror; i.e., an Offeror with whom the State can or should do business. A prohibited bidder includes any person assisting an employee of the State of Illinois by reviewing, drafting, directing, or preparing any invitation for bids, a request for proposal, or request of information, or providing similar assistance unless such assistance was part of a publicly-issued opportunity to review drafts of all or part of these documents. For purposes of this section, an employee of the State of Illinois means one who, by the nature of his or her duties, has the authority to participate personally and substantially in the decision to award a State contract. No person or business shall submit specifications to a State agency unless requested to do so by an employee of the State. No person or business who contracts with a 15

16 State agency to write specifications for a particular procurement need shall submit a bid or proposal or receive a contract for that procurement need. Nothing herein is intended to prohibit a vendor from bidding or offering to supply developing technology, goods, or services after providing the State with a demonstration of the developing technology, goods, or services; provided the subject of the demonstration to the State represents industry trends and innovation and is not specifically designed to meet the State's needs. Nothing herein is intended to prohibit a person or business from submitting a bid or offer or entering into a contract if the person or business: (i) initiates a communication with an employee to provide general information about products, services, or industry best practices and, if applicable, that communication is documented in accordance with Section of the Illinois Procurement Code or (ii) responds to a communication initiated by an employee of the State for the purposes of providing information to evaluate new products, trends, services, or technologies. B B B Other factors that the State may evaluate to determine Responsibility include, but are not limited to: political contributions, certifications, conflict of interest, financial disclosures, taxpayer identification number, past performance in business or industry, references (including those found outside the Proposal), compliance with applicable laws, financial responsibility, insurability, effective equal opportunity compliance, payment of prevailing wages if required by law, capacity to produce or courses of supply, and the ability to provide necessary maintenance services or other matters relating to the Offeror s probable ability to deliver in the quality and quantity within the time and Price as specified in this Solicitation. Awarded Offerors must at all times have and, upon request, be able to provide proof of sufficient financial resources to meet the terms of the contract. The State may terminate the contract, consistent with the termination for cause provision in the contract, if the Offeror lacks the financial resources to perform under the contract. The State may require that an Offeror correct any deficiencies as a condition of further evaluation. B.20.3 Price portion of the Proposal The State identifies the lowest Price portion of the Proposal that meets the evaluated Responsibility and Responsiveness requirements. 16

17 C. SELECTION OF OFFEROR This RFP and the selection process described below pertain only to Tier-1 ERP Software Packages; this is not a solicitation for system integration services. The Governor s Office of Management and Budget in collaboration with the Chief Procurement Office for General Services, on behalf of the State of Illinois, will use an RFP process to identify Tier-1 ERP Software Package Proposals that represent the best value for the State. C.1 Evaluation Committee The State will establish an Evaluation Committee composed of State employees. The Evaluation Committee will be responsible for evaluating and scoring the Proposal. C.2 System integrator If the State does not come to an agreement with a system integrator capable of implementing the selected Tier-1 ERP Software Package at a time of the State s choosing, the State reserves the right to cancel or delay the ERP Software Package award, make the award to the next highest scoring Offeror, or take such other appropriate alternative action to meet its needs. C.3 Maximum points The maximum number of points is 10,000 (8,000 points for the Responsiveness portion of the Proposal + 2,000 points for the Price portion of the Proposal). C.4 Point allocation for the Responsiveness portion of the Proposal The chart below lists the Responsiveness elements on which the State will evaluate ERP Software Package Proposals, along with relative weights in points. This Section lists total points only; please refer to Section C.6 for the detailed Solicitation process, through which Offerors will be allocated points as appropriate. C.4.1 C.4.2 Total points for the Responsiveness portion of the Proposal: 8,000 points Breakdown of points by Responsiveness elements: A. Offeror experience 1,000 points B. Functional requirements 3,000 points C. Non-functional requirements 1,500 points D. Risks 2,500 points C.4.3 Criteria for evaluating each element of the Responsiveness portion of the Proposal: A. Offeror experience (1,000 points) 17

18 Scoring will be based on reference cases where the Offeror s proposed ERP Software Package is implemented at organizations that are similar in scope and scale to the State of Illinois. The score of the highest scoring Offeror of the experience element will be awarded the full 1,000 points; all other Offerors will be scored proportionately. Please refer to Section H.8 for additional details on reference cases requested. B. Functional requirements (3,000 points) The State of Illinois has identified a list of functional requirements for an ERP Software Package that is the best fit for the State of Illinois. Baseline requirements (1,500 points): The State of Illinois categorizes roughly 75% of its requirements as baseline requirements that it expects to be commonly available in all Tier-1 ERP systems. Differentiating requirements (1,500 points): Roughly 25% of the State of Illinois requirements are differentiating requirements that may be unique to the State of Illinois (i.e., they must be integrated with the State s systems) or that may relate to mandatory, critical State functions. Scoring will be based on how the Offeror s ERP Software Package meets the above requirements, whether the requirements will be met out-of-the-box or if customization is needed, the extent of effort involved for customization. Please refer to Section E.3 for additional details on the functional scope and requirements. C. Non-functional requirements (1,500 points) The State of Illinois has identified a list of non-functional requirements for an ERP Software Package that is the best fit for the State of Illinois. Technical requirements, which includes requirements for solution architecture (e.g., integration architecture, workflow processing, data warehousing) and technology architecture (e.g., scalability, security, audit, data storage and archiving, capacity and performance) Usability Innovation Offeror commitment Scoring will be based on how the Offeror s ERP Software Package will meet the above requirements. Please refer to Section E.4 for additional details on the non-functional requirements. D. Risks (2,500 points) 18

19 To ensure success for the overall ERP effort, the State of Illinois seeks to minimize any known risks wherever possible. Scoring will be based on the identification and extent of various types of risks, as outlined below. Company risk, driven by factors such as: o The financial stability of the Offeror, with specific reference to the proposed ERP Software Package, and the diversity of the product portfolio. Technology risk, driven by factors such as: o The Offeror s ERP Software Package s core platform architecture (e.g., application programming language, such as COBOL, Java; core infrastructure backbone, such as mainframe, midrange UNIX; underlying RDBMS, such as IBM DB2, Oracle RDBMS); and the integration of functional domains (e.g., Financial Business Management, Human Capital Management, Procurement) across the platform. o The frequency and depth of the Offeror s ERP Software Package updates and upgrades. Strategic and financial risk, driven by factors such as: o The number of available internal and external resources with certifications related to the Offeror s ERP Software Package o Depth of partnerships with established top-tier system integrators o The application ecosystem related to the Offeror s ERP Software Package (e.g., available add-ons, integration of industry best-practice third-party solutions). C.5 Point allocation for the Price portion of the Proposal Total points for the Price portion of the Proposal are 2,000. A breakdown of the Price portion of the Proposal is outlined below. C.5.1 ERP Software Package Price The ERP Software Package Price includes all fees that the State would pay the Offeror to acquire, use, and maintain the ERP Software Package (e.g., one-time software installation Price, one-time software user license fees, on-going support and maintenance fees). This shall include the Price for proposed point solutions, whether owned by the Offeror, or by an outside third-party, that the Offeror proposes as part of the ERP Software Package in the Scope Sheet in Section H.1. Any costs of the ERP Software Package that are not owned or being resold by the Offeror should not be included here. The State will use the Offeror s input in the Price Sheet (for instructions please refer to Section H.7) to determine the points for Price portion of the Proposal related to the Offeror s direct Price, as per the following formula: 19

20 Maximum points for the ERP Software Package section of the Price portion of the Proposal X (lowest ERP Software Package Price / Offeror s ERP Software Package Price) = total points for the ERP Software Package Price portion of the Proposal C.5.2 Operational cost This cost category includes all operational costs related to the ERP Software Package (e.g., costs for hosting/managed services of the ERP Software Package) and costs that are related to system integrator ( SI ) services during implementation (e.g., range of costs per man-day for different levels of SI resources). The State will use the Offeror s input in the Price Sheet (please refer to Section H.7 for instructions) to calculate the points for the Price of operational costs, using the following formula: Maximum points for Operational cost section of the Price portion of the Proposal X (lowest Operational cost / Offeror s Operational cost) = total points for Operational cost section of the Price portion of the Proposal C.5.3 Payment schedule The State of Illinois has identified a preferred payment schedule that correlates to the milestones of the ERP effort. Scoring will be based on whether Offerors provide a payment schedule that is in line with the preferred payment schedule. Please refer to Section H.7 for further details on the information and format requested for the Price portion of the Proposal. C.6 Detailed Solicitation process Described below are details of the Solicitation process the State will use to calculate which Proposal scores the highest number of points out of a maximum of 10,000 points. C.6.1 Minimum qualifications There are minimum qualifications for Offerors to be considered qualified for this RFP. By submitting a Proposal, the Offeror declares that they meet the minimum qualifications listed in Figure C.1. The Evaluation Committee will only consider Offerors that fulfill the Offeror s minimum qualifications as outlined below in Figure C.1. 20

21 The proposed ERP Software Package has been implemented in a minimum of one (1) U.S. state. The U.S. state must have the ERP Software Package in use as of 6/9/2014. The proposed ERP Software Package has been implemented in a U.S. state to support the majority of Financial Business Management (FBM) functions. Please see section E of the RFP for the functions included in FBM. The proposed ERP Software Package has been implemented in a U.S. state to support the majority of Human Capital Management (HCM) functions. Please see section E of the RFP for the functions included in HCM. The proposed ERP Software Package has been implemented in a U.S. state to support Procurement functions. Please see section E of the RFP for the functions included in Procurement. The proposed ERP Software Package has been implemented in a U.S. public sector organization with an annual operational budget greater than USD 10 Billion. The proposed ERP Software Package has been implemented in a U.S. public sector organization with greater than 20,000 employees. The proposed ERP Software Package has been implemented in a U.S. public sector organization with greater than 5,000 users. FIGURE C.1 ERP RFP MINIMUM QUALIFICATIONS C.6.2 Evaluation of the Responsiveness portion of the Proposal The State will evaluate and score the Responsiveness portion of the Proposals received by the submission deadline from Offerors meeting minimum qualifications as outlined in C.6.1. The Evaluation Committee will assign a numerical score to each Responsiveness portion of the Proposal, based on the extent to which it meets the criteria listed in Section C.4. Verification that the Offerors ERP Software Package has been implemented for organizations with the scale and complexity similar to the State of Illinois is an important element of this step. Upon completion of the evaluation of the Responsiveness portion of the Proposal, the State intends to invite the three (3) highest scoring Offerors (thereafter referred to as Finalist Offerors ) to proceed to the next stage. The State reserves the right to modify the number of invited Offerors based upon the range of scores after the evaluation of the Responsiveness portion of the Proposal. C.6.3 System Demonstrations, oral presentations, and Q&A The Finalist Offerors will be invited to provide a System Demonstration of their software package, deliver an oral presentation, and answer questions about the Responsiveness portion of their Proposals. The State anticipates holding these events between June 23, 2014 and July 1, 2014, for approximately two (2) consecutive business days. (The dates and duration may be changed at the State s discretion.) Each Offeror will be provided with a set of scripts to be demonstrated at the System Demonstrations. Each Offeror will receive the scripts approximately two (2) working days before each Offeror s scheduled session. 21

22 Based on the System Demonstrations, oral presentations, and Q&A, the State reserves the right to revise the Responsiveness score of the Proposal. In that case, the State reserves the right to invite or not invite the next ranked Offeror(s) for System Demonstrations, oral presentations, and Q&A. C System Demonstration: Offerors who are invited to give a System Demonstration will be required to demonstrate their ERP Software Package along a specific set of scripts and sequence that will be provided by the State of Illinois in advance of the system demonstration. The script will specify which functional requirements (both baseline and differentiating requirements) and non-functional requirements (e.g., technical requirements, usability) will need to be demonstrated to prove the ERP Software Package s ability to meet the State s needs. C Oral presentation and Q&A: Along with the System Demonstrations, Offerors will be required to deliver oral presentations on the Responsiveness portion of the Proposal, and to clarify areas queried by the Evaluation Committee. C.6.4 Opening the Price portion of the Proposal After the System Demonstrations and oral presentations, the Evaluation Committee will open the Price portion of the Finalist Offerors Proposals, and calculate a total score based on: Total Score = Responsiveness portion of the Proposal + Price portion of the Proposal C.6.5 Opportunity to refine the Price portion of the Proposal After opening and reviewing the Finalist Offerors Price portion of the Proposal, the State will provide feedback to the Finalist Offerors, and provide them the opportunity to revise their Price portion of the Proposal with a two-day turnaround time. Given the two-day turnaround, the Finalist Offerors should be prepared to revise their Price portion of the Proposals in a timely fashion based on feedback provided by the State. A resubmitted Price portion of the Proposal will replace the originally submitted Price portion of the Proposal and, therefore, update the total Score. If the Offeror fails to provide a resubmission of their Price portion of the Proposal in the time allotted, the Offeror s original Price portion of the Proposal will be used as their resubmitted Price portion of the Proposal. C.6.6 Highest scoring Proposal The Finalist Offeror with the highest total score after the rescoring of the Price portion of the Proposal will be invited to negotiate a contract. 22

23 D. PROPOSAL CHECKLIST Project Title / RFP # : Enterprise Resources Planning (ERP) Software Package / RFP No. 14 OMB 15 The undersigned authorized representative of the identified Offeror hereby submits this Proposal to perform in full compliance with the subject Solicitation. By completing and signing this form, the Offeror makes a Proposal to the State of Illinois that the State may accept. Offeror should use this form as a final check to ensure that all required documents are completed and included with the Proposal. Offeror must mark each item below as appropriate, or enter N/A when an item is not applicable to this Solicitation. Offeror understands that failure to meet all requirements is cause for disqualification. D.1 Solicitation and contract review Offeror reviewed the RFP, including all referenced documents and instructions, completed all Sections, provided all required information, and demonstrated how it will meet the requirements of the State of Illinois. Yes No D.2 Addenda Offeror acknowledges receipt of any and all addenda to the Solicitation and has taken those into account in making this Proposal. Yes No N/A D.3 Proposal submission Offeror is submitting the correct number of copies, in a properly labeled container(s), to the correct location, and by the due date and time. Yes No D.4 Small business set-aside Offeror was a qualified small business in the Small Business Set-Aside Program at the time Proposal was due. Yes No N/A D.5 Packet 1 The Responsiveness portion of the Proposal Yes No D.5.1 Attachment A - Scope sheet Yes No 23

24 D.5.2 Attachment B Product information Yes No D.5.3 Attachment C FBM functional requirements Yes No D.5.4 Attachment D HCM functional requirements Yes No D.5.5 Attachment E ADS Functional requirements Yes No D.5.6 Attachment F Technical requirements Yes No D.5.7 Attachment G Company information Yes No D.5.8 Attachment H Reference sheet Yes No D.5.9 Offeror s responses to Query.1 Query.22 Yes No D.6 Packet 2 The Price portion of the Proposal D.6.1 Attachment I Price sheet Yes No D.7 Packet 3 Proposal Checklist (Section D) and Attachments AA-MM (less Attachment KK) Yes No D.7.1 Proposal Checklist Yes No D.7.2 Authorized to Do Business in Illinois Documentation, if checking option C or D in certification #31 in Standard Certifications Attachment GG Yes No N/A D.7.3 Illinois Department of Human Rights Public Contracts Number Yes No D.7.4 Supplemental Terms and Conditions Yes No D.7.5 Subcontractor Disclosure Yes No D.7.6 Standard Certifications Yes No D.7.7 Financial Disclosures and Conflicts of Interest Yes No D.7.8 Disclosure of Business Operations in Iran Yes No D.7.9 Business Directory Information Yes No D.7.10 Offeror Provided Additional Material, Confidential Documents and Exceptions Yes No 24

25 D.7.11 Taxpayer Identification Number Yes No D.8 Packet 4 Redacted copy of the Proposal with confidential information deleted Yes No D.9 Preferences The Illinois Procurement Code provides various preferences to promote business opportunities in Illinois. Does Offeror make any claims for preferences? If yes, please mark the applicable preference(s) and include a list of the items that qualify for the preference at the end of this Section and a description of why the preference applies. Agency/State reserves the right to determine whether the preference indicated applies to Offeror. Resident Bidder (30 ILCS 500/45-10). Soybean Oil-Based Ink (30 ILCS 500/45-15). Recycled Materials (30 ILCS 500/45-20). Recycled Paper (30 ILCS 500/45-25). Environmentally Preferable Supplies (30 ILCS 500/45-26). Correctional Industries (30 ILCS 500/45-30). Sheltered Workshops for the Severely Handicapped (30 ILCS 500/45-35). Gas Mileage (30 ILCS 500/45-40). Small Businesses (30 ILCS 500/45-45). Illinois Agricultural Products (30 ILCS 500/45-50). Corn-Based Plastics (30 ILCS 500/45-55). Disabled Veterans (30 ILCS 500/45-57). Vehicles Powered by Agricultural Commodity-Based Fuel (30 ILCS 500/45-6) Biobased Products (30 ILCS 500/45-75). Historic Preference Area (30 ILCS 500/45-80). Procurement of Domestic Products (30 ILCS 517). 25

26 Public Purchases in Other State (30 ILCS 520). Illinois Mined Coal Act (30 ILCS 555). Steel Products Procurement (30 ILCS 565). Business Enterprise for Minorities, Females, and Persons with Disabilities Act (30 ILCS 575). Veteran s Preference (330 ILCS 55). Items that require an explanation: Signature of Authorized Representative: Printed Name of Signatory: Offeror Name: Date: Click here to enter a date. 26

27 E. PROJECT SCOPE AND REQUIREMENTS E.1 Background E.1.1 Description and history of the State of Illinois The State of Illinois has approximately 12.9 million residents, making it the fifth largest state in the nation (U.S. Census, 2013). The State government employs approximately 50,000 people, dispersed over seventy-nine (79) agencies. The State government s annual operating budget is approximately $65 billion, with an on-going capital program that has multi-year appropriations totaling over $21 billion. E.1.2 Description of the ERP Software Package ERP Software Package is a Tier-1 Enterprise Resource Planning Software, which is a bundle of software that serves the business needs of Fortune 100 global enterprises and large states, is scalable to support over 100,000 parallel users and several thousand concurrent transactions, and typically requires a complex, sophisticated information technology ( IT ) infrastructure and highly-skilled IT professional support. A Tier-1 ERP Software Package is distinguished from a lower tier (e.g., Tier-2, Tier-3) ERP Software Package in that a Tier-1 ERP Software Package s scope of functionality is designed to serve large, global businesses and public sector entities, and requires more complicated hardware and more highly skilled IT professionals than does a lower tier ERP Software Package. E.1.3 Limitations to the current system The State does not have a single system for administrative functions, such as Financial Business Management, Human Capital Management, and Administrative Services. Most agencies utilize disparate systems and applications to perform functions that are typically included in an ERP Software Package. The State s current systems include various commercially available, off-the-shelf ( COTS ) products. Customized systems originally developed in-house, mainframe products and tools, desktop applications, and DB2/Oracle/SQL databases. In the current environment: State agencies manage and sometime develop their own fiscal systems to meet individual needs. The resulting proliferation of systems has resulted in operational problems, such as duplicate data entry, time-consuming reconciliation of data from multiple source systems, and difficulty completing fiscal reports at period close. As a result, each year, State agencies struggle to complete audited financial statements in a timely manner. Similarly, the assembly of accurate and consistent Statewide data is laborious and difficult. Human Capital Management systems are fragmented. Hiring approvals are conducted in a stand-alone system, and benefits, employee performance, and timekeeping are managed by agencies through a wide variety of custom, COTS, and mainframe systems. Lastly, there is a strong reliance on mainframe-based payroll systems with shrinking talent pools of mainframe programmers and experts. 27

28 Procurement approvals are conducted in a different set of systems than those that track inventory and those that process vouchers. As a result, most State agencies rely on paperbased procedures to track invoice requests, which are prone to mistakes, cause duplications, and increase processing time. E.2 Expected future-state landscape The State of Illinois future-state landscape consists of a single, integrated, Statewide ERP Solution ( ERP Solution hereafter refers to both the ERP Software Package and the system integration services involved in implementing the ERP Software Package). The expected architecture of the State of Illinois ERP Solution is illustrated in the figure below: FIGURE E.1 - STATE OF ILLINOIS ERP SOLUTION FUTURE-STATE LANDSCAPE The envisioned State of Illinois s ERP Solution future-state landscape consists of: E.2.1 Tier-1 ERP transactional backbone: An end-to-end Tier-1 ERP Software Package that is the transactional backbone for all administrative functions, including, but not limited to, financial accounting, budgeting, asset management, human capital management, payroll, benefits, time & attendance, procurement, grants management. The package could potentially be supplemented by a minimal number of point solutions, where necessary, should the ERP backbone fail to provide the required functionality for specific and critical functional components (e.g., grants management). E.2.2 Fully-integrated functional modules in ERP Software Package: The ERP Software Package must be fully integrated across all modules. In other words, the ERP Software 28

29 Package must be built on a unified code base across major functional domains, such as Financial Business Management ( FBM ), Human Capital Management ( HCM ) and Administrative Services ( ADS ). It must be fully-integrated to deliver seamless data integration across functional modules (e.g., integration between procurement, accounts receivable, and accounts payable to enable inter-agency transfers), as well as to facilitate automated, non-disruptive technical and functional upgrades at the State s discretion in the future. E.2.3 E.2.4 E.2.5 E.2.6 E.2.7 System of record: The ERP Solution must serve as the system of record for all financial, human capital management and procurement-related data, such as, but not limited to, master data (e.g., chart of accounts, employees, positions, job classifications), transactional data (e.g., journal entries, invoices, time cards, payroll transactions, purchasing documents), and reporting/analytical data. Out-of-the-box integrated analytics: The ERP Software Package must include pre-built analytical applications that are fully integrated with the ERP transactional hub and that include capabilities for analytical reporting, and measuring and tracking key performance indicators across FBM, HCM and ADS. Additionally, the ERP Solution must include tools for performance dashboards, ad-hoc analysis, data-mining, as well as bi-directional integration with MS Office tools such as MS Excel. Integration framework: A robust integration framework is required to be at the core of the ERP Software Package that encompasses capabilities and tools for data integration (e.g., ETL, web services, data quality, data profiling, replication, and change data capture), process integration (e.g., BPM, SOA, EDA, composite applications), and information integration (e.g., content management, imaging, enterprise search and web 2.0) to enable seamless information exchange between the ERP backbone and other applications. Information security: Security and controls across the data, application and infrastructure tiers are critical features of the envisioned ERP Solution. Since the ERP Solution will contain highly sensitive and confidential data, robust information security, data protection and governance are required, including encryption, firewalls, identity and access management, role-based access control, privileged user access control (i.e., to prevent system and application administrators from unauthorized access to confidential information), digital rights management, etc., at all tiers of the ERP Solution (i.e., from user interface to disk). Additionally, security provisions must protect the ERP Solution from malicious code, unauthorized access, hackers, and intrusion. Security provisions of the ERP Solution must be in compliance with State security regulations, including but not limited to PIPA (Personal Information Protection Act, 815 ILCS 530/). Hosted solution: In accordance with Public Act , the State will evaluate safe, secure hosting options before making any new information technology or telecommunications investments. E.3 Functional scope and requirements The scope of the State s ERP Solution encompasses three (3) functional domains: Financial Business Management, Human Capital Management, and Administrative Services. The following illustration depicts the functional modules that fall within the scope of each of these three (3) functional domains. 29

30 FIGURE E.2 - FUNCTIONAL SCOPE OF THE STATE OF ILLINOIS ERP SOLUTION The table below lists the desired functional components within each of the modules. Functional Domain Financial Business Management (FBM) Functional Area Core Financials Functional Module Requirements Category General Ledger Chart of Accounts Journal Entry Allocations GL Reporting Inter-Agency Transactions GL Period-End/Fiscal Year-End Budget Control General Accounts Receivable Cash Receipts AR Transactions Non-AR Transactions Invoicing/Billing General Accounts Payable Invoice Maintenance Payment Processing Checking Accounts Processing Reporting 1099 Processing Involuntary Withholding General Asset Lifecycle Asset Maintenance 30

31 Functional Domain Human Capital Management (HCM) Functional Area Functional Module Requirements Category Management Asset Funding Lease Management Physical Inventory Asset Insurance Transfer/Disposal Depreciation General Treasury and Cash Management Cash Deposits/Receipts Cash Projections General Reporting Interfaces Bank Reconciliation General Reporting Project Accounting Project Management Project Budgeting Capital Project Management Reporting Budgeting Budget Preparation Budget Development Base Budget/Rollover Personnel Budget Capital Projects Forecasting Budget Document General Reporting Personnel and Payroll Management Budget Execution Appropriations Allocation Budget Administration General Reporting Hiring Management Position Management Application Management Onboarding Employee Self-Service General Personnel Administration Employee Verification Secondary Employment Unemployment Care Employee Data Management Light Duty Requests Term Appointment Renewals Alternative Employment Program Workers Compensation and OSHA Expungements 31

32 Functional Domain Functional Area Workforce Management Talent Management Functional Module Requirements Category Labor Relations Grievances Discipline Contract Negotiations Payroll Management General Earnings Gross Pay and Salary Adjustments Salary Reversal Deductions Payroll Processing Reporting Benefits Administration Retirement Administration Retirement Employee Self-Service Retirement General & Processing Deferred Compensation Processing & Reporting Deferred Compensation Administration Deferred Compensation Employee Self-Service Group Insurance Administration Group Insurance Processing & Reporting Group Insurance Employee Self- Service Group Insurance General Leave Management Advance Sick Leave FMLA Leave Accrual Sick Bank Employee Self-Service General Reporting Time and Attendance Management Compensation Management Time Entry Time Approval Time Processing Audit Control and Edits General Reporting Job Classification Specification Classification Tracking Compensation Re-organization Self-Service General Reporting 32

33 Functional Domain Administrative Services (ADS) Functional Area Functional Module Performance Management Learning Management Requirements Category Performance Evaluations Separations General Reporting Orientation Training General Reporting Procurement Requisition to PO Purchase Requisitions Purchase Documents Receiving/Returns General Reporting Other Services Bid Process Solicitation Development and Posting Solicitation Evaluation and Contract Award General Reporting Contracts Management General Reporting Vendor Management General Vendor Evaluation Reporting P-Card Management General Reporting Interfaces Encumbrance Accounting General Grants Management Obtain and Maintain Grant Manage Grant Monitoring General Reporting Travel and Expenses Management General Taxes Reporting FIGURE E.3 - FUNCTIONAL REQUIREMENTS FOR THE STATE OF ILLINOIS ERP SOLUTION The functional requirement spreadsheets (I.3 Attachments C,D,E) list the desired functionality for each of the three (3) functional domains (FBM, HCM and ADS). Financial Business Management (I.3 Attachment C) lists the desired capabilities in FBM. Human Capital Management (I.3 Attachment D) lists the desired capabilities in HCM. 33

34 Administrative Services (I.3 Attachment E) lists the desired capabilities in ADS. To show that the proposed ERP Software Package meets the functional requirements of the State, the Offeror must provide a response in Attachments C, D, and E to each of the requirements in the three functional domains -- FBM, HCM, and ADS. Further instructions, along with the required worksheets, are provided in Section H.3. E.4 Non-functional requirements In addition to the functional requirements, the State is envisioning that the ERP Solution will meet specific non-functional requirements identified as central to the ERP Solution s ability to meet the State s needs. The non-functional requirements include usability, innovation, Offeror commitment, and technical requirements. Technical requirements include Solution Architecture (e.g., data warehousing, workflow processing) and Technology Architecture (e.g., hosting, data storage, scalability). To show that the proposed ERP Software Package meets the non-functional requirements of the State, the Offeror must provide a response in Section H.4 including Attachment F. Further instructions, along with the required worksheets, are provided in Section H.4. FIGURE E.4 TECHNICAL REQUIREMENTS FRAMEWORK 34

35 E.4.1 Hosting The State of Illinois requires that agencies, in making new information technology investments, evaluate and, if feasible, adopt appropriate cloud computing solutions. Note: Cloud Computing is defined as having the same meaning as provided in the National Institute of Science and Technology (NIST) special publication : Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of five essential characteristics (i.e., ondemand self-service, broad network access, resource pooling, rapid elasticity, and measured service), three service models (i.e., Software as a Service, Platform as a Service, and Infrastructure as a Service) and four deployment models (i.e., private cloud, community cloud, public cloud, and hybrid cloud). The State will explore options to host the ERP Software Package in either a third-party-hosted facility with basic systems administration support, or a third-party-hosted facility inclusive of the full range of managed services. Offerors should clearly articulate in their Proposal whether either of the hosting options would work for their ERP Software Package, and the consequent implications of each hosting option. The State will evaluate the Offeror s ERP Software Package s capability to accommodate each of the hosting options but will not be scored in the Pricing portion of the Proposal. The procurement of hosting and associated services is included in this Solicitation as an optional service. This RFP s scope includes both of these hosting models such that the State will have the option, as its sole discretion through the contract resulting from this RFP, to change the delivery model of the ERP Software Package from an installed-base delivery model to a hosted, as-a-service, or other delivery model. The two hosting options are: Third-party-hosted (Offeror or other third-party): The Offeror or a certified thirdparty partner on behalf of the Offeror will host the ERP Software Package in primary and secondary data centers. The Offeror will own the hardware and supporting infrastructure (network, storage, RDBMS servers, application servers) and provide basic system administration support. In turn, the State will own the ERP Software Package licenses, be responsible for application administration, help desk and other support services, and rely on the Offeror or certified third-party to provide basic infrastructure administration services. Offerors are encouraged to provide details on either an Offeror-hosted, or a certified partner hosted solution, as options for the State to consider. Third-party-hosted (Offeror or other third-party) with managed services: The Offeror or a certified third-party partner on behalf of the Offeror will host the ERP Software Package in primary and secondary data centers. The Offeror will own the hardware and supporting infrastructure (network, storage, RDBMS servers, application servers) while the State will own the ERP Software Package licenses. Additionally, the 35

36 Offeror will be responsible for providing managed services for the ERP Solution (e.g., Help Desk, Application Administration such as, but not limited to user account, role and profile management, application performance tuning, configuration management, etc.) a Offerors are encouraged to provide details on an Offeror-hosted or certified partnerhosted solution that includes Offeror provided managed services as an option for the State to consider. Migration of hosting to a cloud or a SaaS version of the ERP Software Package is within the scope of this Solicitation. E.5 Working in partnership with the ERP Project Management Office and any system integrators The ERP Software Package Offeror will be required to work in partnership with the ERP Project Management Office and any system integrator throughout the implementation process of the ERP Solution. E.6 Subcontracting E.6.1 E.6.2 E.6.3 E.6.4 Subcontractors are allowed. For the purposes of this section, subcontractors are those persons or entities specifically hired to perform part of the work covered by the contract. For example, subcontractors may be those providing point solutions not owned by the Offeror. If subcontractors are to be utilized, Offeror must identify in Attachment FF Subcontractor Disclosure, all subcontracts with an annual value of $50,000 or more. All subcontracts with an annual value of $50,000 or more are subject to the prior written approval of the State. No additional or substitute subcontractors may be hired during the term of the contract. without the prior written approval of the State. The State shall be provided with a copy of all subcontracts within fifteen (15) days of execution. Any subcontracts entered into before a contract is awarded pursuant to this Solicitation are at the sole risk of the parties thereto. E.7 Where services are to be performed E.7.1 E.7.2 Unless otherwise stated in this Section, all services shall be performed in the United States. This information and the economic impact on Illinois and its residents may be considered in the evaluation. If the services offered hereunder are performed in another country in violation of this provision, such action shall be deemed by the State as a breach of the contract for which the State may seek all available legal remedies. The Offeror shall disclose the locations where the required services shall be performed and the known or anticipated value of the services to be performed at each location. If the services offered hereunder are shifted or transferred in whole or in part to a location outside of the United States, such action shall be deemed by the State as a breach of the contract for which the State may seek all available legal remedies. E.7.3 Location where services will be performed: If services are to be performed in person, the services will be performed in Springfield, IL or Chicago, IL. 36

37 E.7.4 Percentage of contract of services performed at this location: 100% of the in person services to be performed in Springfield, IL or Chicago, IL. F. PRICE PORTION OF THE PROPOSAL F.1 Format of Price Offeror shall submit the Price portion of the Proposal in the format described in Section H.7, and base it on the terms and conditions set forth in Section F of this RFP. Failure to submit the Price as shown in this Section may render the Offeror s entire Proposal non-responsive and ineligible for award. F.2 Type of Price: The Illinois Office of the Comptroller requires the State to indicate whether the contract Price is firm or estimated at the time it is submitted for obligation. Price pursuant to this contract: unit prices are firm, but total contract cost is estimated. F.3 Expenses allowed: Expenses are not allowed are allowed as follows: F.4 Taxes: Price shall not include any taxes unless accompanied by proof that the State is subject to the tax. If necessary, Offeror may request the applicable Agency s Illinois tax exemption number and federal tax exemption information. G. DETAILED FACT PACK FOR AGENCIES IN SCOPE G.1 Organizational The following provides general background information. All numbers are estimates. State of Illinois Number of employees 50,000 Number of household employees 40,000 Number of agencies 79 Number of core users 3,500 Number of casual users 5,000 Number of unique vendors 870,000 FIGURE G.1 STATE OF ILLINOIS ORGANIZATIONAL INFORMATION 37

38 G.2 Financial Business Management users Financial Business Management users Number of core users 1,500 Number of casual users 2,000 Number of simultaneous users 2,500 Number of cost centers 10,000 Annual business transactions 15,500,000 FIGURE G.2 STATE OF ILLINOIS FINANCIAL BUSINESS MANAGEMENT USERS G.3 Human Capital Management users Human Capital Management users Number of core users 1,250 Number of casual users 2,000 Number of simultaneous users 2,000 Number of self-serve users 50,000 Annual business transactions 6,000,000 Annual payroll transactions 2,800,000 FIGURE G.3 STATE OF ILLINOIS HUMAN CAPITAL MANAGEMENT USERS G.4 Administrative Services users Administrative Services users Procurement Number of core users 750 Number of casual users 1,000 Number of simultaneous users 1,250 Number of annual procurements 250,000 Annual business transactions 2,000,000 FIGURE G.4 STATE OF ILLINOIS ADMINISTRATIVE USERS G.5 Technical Information Category Extensive State and Federal Security and Compliance Requirements Current State The State must comply with COBIT 5.0; applicable NIST Publications; IRS Publication 1075; the Auditor General ACES manual; the Identity Protection Act (5 ILCS 179); the Personal Protection Act (815 ILCS 530); the Data Processing and Confidentiality Act (30 ILCS 585); the Data Security on State Computers Act (20 ILCS 450); federal privacy acts such as HIPAA; Federal grant and inventory tracking; as well as other State and Federal requirements. 38

39 Mainframe Environment 4 Mainframes; Production = 4,099 MIPS; Disaster Recovery = 4,320 MIPS; 4.1 Petabytes of Storage. Server/Workstation 3,755 Servers (Windows, Novell, Unix); 36,065 Environment Workstations; 972 Customer Sites. Database Management Systems IDMS; IMS DB; DB2; VSAM; Oracle; SQL Server; MS Access; FoxPro; dbase; and various proprietary DBMSs. Content Management Systems SharePoint, Lotus Notes; IBM Content Manager; Adobe Livecycle; Percussion; Docuware. Archive/Record Management State Records Act; as well as other State and Federal Requirements Requirements. No. of Applications that fall FBM = 147; HCM = 157; ADS = 75. under FBM, HCM, ADS Middleware and Integration Tools (ESB, SOA, BPM, Etc.) Data Modeling Tools Data Integration (ETL, Replication, CDC) Programming Languages Data Centers Data Warehouse Business Intelligence & Reporting Tools Web Browsers IBM BPM (we do not have an established Middleware layer within our Enterprise Architecture Framework so system integration is predominately 'point-to-point' and batch files). ERwin; ProVision Enterprise Pro; Visio Pro. IBM InfoSphere; IBM Datastage; SSIS. Cobol; Easytrieve +; Assembler; C#; VB.Net; ASP.Net; JAVA; PHP; Cold Fusion; Smalltalk; Sharepoint. Primary and Back-Up Data Centers. SAP Business Objects (Limited Use). SAP Business Objects Enterprise; Crystal Enterprise/Crystal Reports; Cognos, SSRS, SharePoint; SAS; Mobius. MS Internet Explorer (IE) is the Standard (with various versions depending on agency and OS levels); in addition, some agencies are using Firefox, Chrome, and Safari (in limited but growing numbers). FIGURE G.5 STATE OF ILLINOIS TECHNICAL INFORMATION 39

40 H. PROPOSAL RESPONSE AND OFFEROR QUALIFICATIONS We request all Offerors to respond to the queries and fill out the attachments in this Section. All soft copies of the responses to the queries in this Section should be presented in Microsoft Word unless a spreadsheet template is provided, in which case the Offeror must use the provided template. All responses in your Word document should be labeled with the Query Label (e.g., Query.X) before responding to the query. Please limit responses to three pages per Query unless otherwise specified. The first Query is in Section H.2.1. If the Section refers to an attachment - please refer to Section I to identify the appropriate file name. H.1 Scope Sheet The Offeror is required to complete the Scope Sheet (please see I.1 - Attachment A) to provide an overview of the proposed ERP Software Package. The Scope Sheet is structured by functional modules (i.e., Financial Business Management, Human Capital Management, Administrative Services, and Other). For each functional module, the Offeror should provide information on the software application components in the proposed ERP Software Package that address the functional requirements. The proposed ERP Software Package outlined in the Scope Sheet shall be the solution landscape for determining the fulfillment of functional and non-functional requirements in Section H.3 and H.4, and the basis for the Price and cost data requested in Section H.7. The Scope Sheet provides the Offeror with four (4) potential methods of fulfilling the requested functionality of a module. The requested functionality can be fulfilled in any combination of the four (4) potential methods listed here: (i) as part of the proposed core ERP platform; (ii) a specific point solution owned by the Offeror; (iii) a third-party point solution that the Offeror can directly provide (e.g., resell); or (iv) a custom development that supplements the software application in the solution landscape. The Offeror has the option to use percentages for multiple applications that cover a specific functionality (e.g., FBM Budget management within the Core ERP Software Package covers 75% of the requested functionality, and a specified third-party application covers the remaining 25%). If the functionality is proposed in any of the four methods mentioned above, these functionalities will be considered as a bundle during scoring of the Offeror s Proposal. The selected Offeror will be accountable to provide the functionality covered through any of the methods other than the custom development method as part of the software package contract resulting from this Solicitation and within the Price proposed in the Price portion of the Proposal. H.1.1 Core platform functionality The Offeror is required to complete the Your Core ERP Software column of the Scope Sheet with a Yes or No to denote whether or not the functionality provided in each row is covered by the proposed core ERP Software Package. H.1.2 Offeror point solution 40

41 The Offeror is required to complete the Offeror point solution column of the Scope Sheet for functional modules where a point solution owned by the Offeror would fulfill the requirements. The Offeror is allowed to flag the requirements enabled by the point solution as fulfilled, but must state the additional costs for the point solution in the Price Sheet (I.7 - Attachment I). H.1.3 Third-party solution provided by Offeror The Offeror is required to complete the third-party solution provided by the Offeror column of the Scope Sheet for any functional modules provided by a third-party point solution that the Offeror proposes to resell or provide as part of the ERP Software Package. Such functionality elements will be reviewed and scored against the requirements in the same manner as for the Offeror s own software. The Offeror may flag the requirements enabled by the point solution as fulfilled, but must state the costs for the third-party solution in the Price Sheet (I.7 - Attachment I). H.1.4 Custom development The Offeror is required to complete the custom development column of the Scope Sheet for functional modules where a custom development work may be needed to fulfill the requirements. While the development effort should not be reflected in the Price Sheet (I.7 - Attachment I), the Offeror must provide a reasonable estimate of the total man-days required for custom development. H.1.5 Optional Third-party solution not provided by Offeror (i.e., not part of the solution landscape) The Offeror may complete the Optional columns of the Scope Sheet for functional modules where a third-party solution that cannot be provided by the Offeror would be needed, or recommended, to provide the required functionality. These recommendations are optional and third-party. Price of the third-party solution should not be part of the Price Sheet (I.7 - Attachment I). H.2 Offeror s product information question H.2.1 H.2.2 Query.1 Provide a description of the proposed ERP Software Package s unique and distinctive attributes, and why these attributes make the proposed ERP Software Package a perfect fit for the State. Product information sheet The Offeror is required to complete the Product Information Sheet (I.2 Attachment B). The Product Information Sheet requires the Offeror to provide general product information, product footprint information, and product support information. H Product information The Offeror is required to provide information on the year of introduction of the proposed ERP Software Package as well as the year of introduction of the proposed version of the proposed ERP Software Package. 41

42 H Product footprint The Offeror is required to provide information on where and at what level the ERP Software Package has been implemented to date. H Product support The Offeror is required to provide the number of internal resources that can support the implementation of the proposed ERP Software Package, an overview of the total number of certified resources available, and a detailed description of the Offeror s partnerships with top-tier system integrators that can support an implementation of the proposed ERP Software Package. H.3 Offeror s proposed solution to meet the State s functional requirements The Offeror is required to complete the functional requirement spreadsheets (I.3 Attachment C,D,E,) which list the desired functionality for each of the three functional domains (FBM, HCM and ADS). Financial Business Management (FBM) (I.3 Attachment C) lists the desired capabilities in FBM. Human Capital Management (HCM) (I.3 Attachment D) lists the desired capabilities in HCM. Administrative Services (ADS) (I.3 Attachment E) lists the desired capabilities in ADS. In addition to completing the accompanying spreadsheets and tables, Offeror is required to respond to the following queries. Query.2 Provide a summary of major functional requirements, or groups of requirements, that the proposed ERP Software Packages will not meet out of the box and describe how the Offeror will address those functional gaps Query.3 Provide a description of whether or not the proposed ERP Software Package will require modifications, enhancements, or supplements (beyond the standard, out-of-the-box configuration elements). If the proposed ERP Software Package will not require modifications, enhancements, or supplements, Offerors must state this explicitly. The State recognizes that the need for customization may arise during the system design phase of the program, and asks Offerors to document all potential modifications on a best effort basis. H.3.1 Financial Business Management (FBM) Query.4 - Provide a concise description of the proposed ERP Software Package s ability to deliver the Financial Business Management functionality outlined in Section E. Describe any areas of functionality the proposed ERP Software Package may not be able to address and any functionality the proposed ERP Software Package may contain that is not required by the State. H.3.2 Human Capital Management (HCM) 42

43 Query.5 - Provide a concise description of the proposed ERP Software Package s ability to deliver the Human Capital Management functionality outlined in Section E. Describe any areas of functionality the proposed ERP Software Package may not be able to address and any functionality the proposed ERP Software Package may contain that is not required by the State. H.3.3 Administrative Services (ADS) Query.6 - Provide a concise description of the proposed software package s ability to deliver the Administrative Services functionality outlined in Section E. Describe any areas of functionality the proposed software package may not be able to address and any functionality the proposed software package may contain that is not required by the State. H.3.4 Integration between functional modules The primary advantage of an enterprise solution is its ability to provide consistent information simultaneously to all areas of a business. Information entered in one area updates all related areas and does not need to be reentered. Built-in features shall ensure file integrity and consistency. Query.7 Provide a description of the proposed ERP Software Package s ability to realize a single, integrated, Statewide administrative system. Specifically, Offerors shall describe the general approach to integrating applications (e.g., FBM, HCM and ADS) and the underlying functional modules (e.g., integrating Accounts Payable, Asset Lifecycle Management and Procurement). Also provide a description of the integration strategy for adding new components which the State acquires or develops separately from the proposed ERP Software Package (e.g., current State applications or other best of breed software applications). H Description of functional modules Query.8 - Offerors shall list all functional modules (e.g., General Ledger, Accounts Payable, Hiring Management, Time and Attendance) included in their proposed ERP Software Package that are needed to deliver the required functionality. For each functional module, Offerors shall provide a one-page executive summary that describes: The main features and functions of that module Dependencies on other modules in the ERP Software Package (e.g., what is a pre-requisite for the module under consideration) Integration points with other functional modules in the ERP Software Package (e.g., link between Accounts Payable and Procurement) Standard workflows in the module Operational and analytical reporting capabilities Any special considerations or features for that module 43

44 H.4 Non-functional requirements Non-functional requirements consist of usability, innovation, Offeror commitment, and technical requirements. These are further described below, along with the information that the Offeror must provide. H.4.1 Usability Query.9 Provide a description of the user experience that State employees will have when using the proposed ERP Software Package. The Finalist Offerors ERP Software Package Usability will be tested during the System Demonstrations, as described earlier. The Usability evaluation will focus on features that make it easy for State employees to adopt the system. H.4.2 Innovation Query.10 Provide a description of recent innovations made on the proposed ERP Software Package (relative to the rest of the industry). Please include an explanation of why the recent innovations are distinctly valuable to the State. These innovations may range from specific public-sector process automation, to features that enhance user experience, improve system performance or costs, or have an innovative product roadmap (e.g., includes migration to Cloud-based offerings as viable deployment models). H.4.3 Offeror commitment Query.11 - Provide information and evidence of the Offeror s commitment to the State of Illinois in terms of: a) enhancing the proposed product by integrating custom-made solutions into the product roadmap; b) providing opportunities for U.S. states to collaborate in focused user-groups; c) providing a rapid response to the State when issues are raised; d) providing frequent and periodic automated patches and updates to the ERP Software Package to address any defects, security threats, incremental functionality to meet regulatory/legal mandates, etc.; and e) providing additional functionalities that maybe of future value to the State at no incremental Price. H.4.4 Technical requirements Technical requirements have been organized in two categories Solution Architecture and Technology Architecture. The figure below illustrates the components of each. The Offeror is required to complete the ERP Technical Requirement sheet (I.4 Attachment F) which outlines the desired technical requirements to support an ERP Software Package. The Offeror must state if the proposed solution would address the stated requirement out-ofthe-box, or if it would require customization. Additionally, the Offeror must provide a detailed description of how the proposed solution addresses the requirement. Detailed instructions are provided in each spreadsheet, along with guidelines on completing Offeror s responses. 44

45 FIGURE H.2 TECHNICAL REQUIREMENTS FRAMEWORK H.5 Response to other non-functional requirements H.5.1 Support and maintenance for the proposed ERP Software Package Query.12 Provide a description of the Offeror s support options including various tiers of customer support (e.g., platinum, gold, silver) and the associated levels of service Query.13 Provide a description of the Offeror s problem reporting and resolution procedures. Please include information regarding the path to escalation and priority bug fixes. Query.14 Provide a description of the Offeror s telephone support that is included in the Price portion of the Proposal (include toll-free support hotline, hours of operation, etc.) and other support activities (e.g., on-site, remote dial-in, Web site access to patches, and knowledge base). Query.15 Provide a description of the Offeror s functionality/extensions/modules (current or new/upcoming) that would NOT be covered by the ongoing annual license payment quoted in the Price portion of the Proposal. Query.16 Provide a description of the Offeror s accessibility to user groups, how often these user groups meet and how these user groups are structured. Describe user group input to system fixes and future enhancements to the proposed ERP Software Package. Query.17 Provide a description of the Offeror s timing and duration of patches following the proposed ERP Software Package s last major release in the last five years. Provide detail on the most significant enhancements made to the product in each of these patches. Query.18 Provide a description of the Offeror s timing and duration of upgrades following the proposed ERP Software Package s last major release in the last five years. Provide detail on the most significant enhancements made to the products in each of these upgrades. H.5.2 ERP Software Package future development 45

46 Query.19 Provide a description of the Offeror s future development of the proposed ERP Software Package and its components over the next five years. Also include future plans for public sector functionality for the components of the proposed ERP Software Package. Query.20 - Provide a description of the expected evolvement and growth of the proposed ERP Software Package as technology advances in the future (e.g., transformation for end-to-end functionality from a traditional hosted deployment to a pure Cloud-based deployment). H.6 Offeror organizational information Query.21 - Provide a description of the Offeror s Company uniqueness and distinctive attributes, and why these attributes make the Offeror s Company a good partner for the State to provide an ERP Software Package. Furthermore, the Offeror is required to complete the Company Information Sheet (Please see I.5 Attachment G) that requests information on the following items. H.6.1 Company information Information about the Offeror s Company, core business areas, and product and service portfolios. Query.22 A description of the diversity of the Company s product portfolio and the importance of the proposed ERP Software Package as a product within the Company. H.6.2 Financial data Basic financial data such as the Company s revenue, its profit/loss, its R&D expenditures, and its ERP-related revenues from software and service offerings. H.6.3 Employee data The Company s global and U.S. based employee footprint, and the most significant drivers for employee attrition. H.7 Offeror s Price portion of the Proposal The Offeror is required to provide the estimated Price for all items listed on the Price Sheet (I.7 Attachment I). The State reserves the right to negotiate further Price and Payment Schedule during negotiation. The Offeror s completed Price Sheet (I.7 Attachment I) shall include the Price and costs for: ERP Software Package Price for which the State shall compensate the Offeror (e.g., software license fees, software installation Price, maintenance fees). This ERP Software Package Price includes all fees that the State would pay the Offeror to acquire and maintain the ERP Software Package (e.g., one-time software installation Price, one-time software user license fees, on-going support and maintenance fees). 46

47 Operational costs, including all operational costs related to the ERP Software Package (e.g., Proposal for hosting/managed services of the ERP Software Package) and costs that are related to system integrator services during implementation (e.g., range of costs per man-day for different levels of SI resources). The Price Sheet (I.7 Attachment I) consists of multiple worksheets. Below are instructions Offerors should consider when filling out the worksheets. H.7.1 ERP Software Package Price (Attachment I ERP Software Package Price Sheet) The ERP Software Package Price Sheet provides a structure for Pricing the State s planned ERP Software Package, by i) individual functional modules: Financial Business Management, Human Capital Management, Administrative Services (e.g., procurement), and others (e.g., CRM, BW and BI foundation) in Section A, and by ii) a bundle in Section B. The Offeror is required to provide individual Price per functional module utilizing user based license fees in Section A. The Offeror is requested (but not required) to provide a bundled price utilizing the enterprise license Price field in Section B. H Software installation Price The Offeror shall provide the software installation Price for the core ERP modules combined (modules in Financial Business Management, Human Capital Management, Administrative Services), as well as the individual software installation Price for each of the Others modules that the Offeror provides as part of the ERP Software Package. If any of the Others modules are included in the core ERP software installation Price, rather than duplicate the data, the Offeror should note this in the Offeror comments column. The software installation Price shall include all one-time costs, excluding the license fees as described in H , for which the Offeror requires compensation. H License fees The Offeror is required to provide user-based license fees for each of the modules, and is optionally requested to provide enterprise license fees for each of the modules. Only the user-based license fees will be used for the scoring of the Price portion of the Proposal, to ensure comparability across Proposals. The Offeror is required to provide user-based license prices for core users, casual users, development users, and self-service users. The State defines core users as State employees who will be heavy ERP Software Package users throughout the day, and casual users as State employees that will only use small parts of the ERP Software Package, or who will only require limited access (e.g., only a few transactions, read-only). The State defines Development users as IT experts who will require authorization to configure and make system changes. The State defines 47

48 self-service users as State employees that need access to the system for small changes related to their own profile (e.g., view of vacation balance, change of home address). In providing the enterprise license costs, the Offeror should build on the current State estimates of core and casual user numbers. In addition, the Offeror is required to provide enterprise license Price options if the number of users varies from the current State estimates. The Offeror should explain further assumptions in the Offeror comments column. H Support and maintenance fees The Offeror is required to provide annual support and maintenance fees for the first 5 years after the go-live of the ERP Software Package. The Offeror shall describe the assumptions and calculations of the support and maintenance fees in detail in the Offeror comments column. If the Offeror requires additional annual compensation for the ERP Software Package, these costs shall be included as part of the support and maintenance fee and the details described in the Offeror comments column. H.7.2 Operational cost (Attachment I Operational cost sheet) This worksheet requires the Offeror to provide information on the operational cost of the proposed ERP Software Package, which will give the State a baseline for calculating the Total Cost of Ownership ( TCO ) as part of its decision making. H Infrastructure costs for the ERP Solution The Offeror is required to provide detailed information on each infrastructure dimension required. This includes the quantity required, the one-time cost, and ongoing costs per year. The Offeror shall add any further infrastructure dimensions that are not included in the current structure, as needed. One-time and ongoing costs shall be a reasonable estimate based on the Offeror s experience. The State reserves the right to validate these estimates at any given point during the Solicitation. H System integration (SI) The Offeror is required to provide reasonable estimates for one-time and ongoing system integration effort required for the ERP Solution. The effort estimates shall be provided for each role requested, in cost per hour based on industry-practice. H Offeror support The Offeror is required to provide cost estimates for Offeror support and advisory services related to the ERP Solution. The estimate shall be provided for each role 48

49 requested, in cost per hour based on the Offeror s current pricing model. This rate card shall apply for services fulfilled by the Offeror. H Hosting The State is considering various hosting options for the ERP Software Package. The Offeror shall recommend a hosting option (e.g., Offeror-hosted, third-party-hosted), name the hosting provider, and provide information and cost estimates for hosting and related managed services. The procurement of hosting and associated services are included as part of this Solicitation as an optional service only. The Offeror is required to provide any further hosting services that are not included in the current structure, as needed. One-time and ongoing costs shall be reasonable estimates based on the Offeror s experience. The State reserves the right to validate these estimates at any given point. H.7.3 Price Payment schedule Sheet (Attachment I Payment schedule Sheet) This worksheet outlines the State s preferred payment approach, and requires Offerors to propose an Offeror-preferred payment approach for each of the Price dimensions in the section C of the ERP Software Package Price sheet. The Payment schedule sheet, section A, details the State s preferred payment approach that builds on the following guidelines: The State would not want to pay any upfront fees before the start of the ERP implementation. The State would want to pay the installation cost when the ERP Software Package is used during the development and configuration phase. The State would want to pay license fees for each user and user group only at the go-live time of the production environment for those users and user groups. The State will only pay support and maintenance fees after the go-live of the of the ERP Software Package. H.7.4 Offeror assumptions Sheet (Attachment I Offeror Assumptions Sheet) This worksheet provides Offerors with an opportunity to explain the assumptions behind their calculations throughout Appendix I. For each assumption, Offerors must provide a detailed description and rationale for the assumption, as well as the cost impact of each should the State determine the assumption invalid. H.8 References from other implementations The Offeror shall provide the State with up to ten (10) references from customers of similar scale and complexity as the State of Illinois for which it implemented the proposed ERP Software Package. 49

50 Offerors may provide less than ten (10) references, however Offerors will be receiving points for every reference they provide up to ten (10). H.8.1 Details related to completion of Offeror experience reference form The Reference Sheet (please refer to I.6 Attachment H) includes a template for providing the references from other implementations. The Offeror shall complete one Reference Sheet per reference. All data points shall be provided to the Offeror s best ability. If the data can only be provided as estimates or ranges, the Offeror shall use reasonable estimates. Details of Sections of the Reference Sheet: Offeror information this Section requests information related to the Offeror and the Offeror s contact person. Customer reference information this Section requests information about the reference organization and the contact person. Reference organization details this Section requests information about the scale of the reference organization. ERP Software Package details this Section requests information about the scale of the ERP Software Package implemented in the Reference organization. Scope this Section requires information related to the scope of the ERP Software Package implementation, and focuses on the functional modules that are part of the State s requirements. Project details this Section requires information related to costs and the timeline of the reference project. H.8.2 Guidelines for references The State values references that prove the proposed ERP Software Package was implemented successfully, and that it satisfactorily serves a customer of similar scale, scope, and complexity as the State of Illinois. The Offeror shall keep the following guidelines in mind when selecting reference examples: The State will only consider references of ERP Software Packages that are already running in a production environment. References of ongoing implementations shall only mention the scope and scale of the functional modules that are already in a post go-live state (i.e., in production). The State prefers references for implementations of a similar or larger scale as the Offeror s proposed ERP Software Package (Please see Section G on State of Illinois organizational size information). 50

51 The State prefers references with a similar or larger scope across the detailed functional modules in Financial Business Management, Human Capital Management and Administrative Services as the Offeror s proposed ERP Software Package. The State prefers references from various types of customers in the following order of preference: U.S. state references, other U.S. public sector references, private sector references. The State prefers references for the most recent versions and upgrades of the ERP Software Package. The State may, in its sole discretion, dismiss any references that do not fit the State s requirements. H.8.3 Verification of references The State may contact the named contact persons of references to verify the data provided. For each of the references provided, the State may consider using independent industry knowledge and resources or contact other individuals in addition to the contacts provided in order to validate the implementation of the ERP Software Package. Include Section H.1 through H.6 and Section H.8 and any attachments in Packet 1 Include Section H.7 and any attachments in Packet 2 51

52 I. APPENDIX This section highlights all of the attachments that are part of this RFP. Instructions on how to complete each of the attachments are provided in Section H. I.1 ERP Software Package - Scope sheet Attachment A Scope sheet.xlsx, consisting of the following tabs Scope sheet Offeror assumptions I.2 ERP Software Package product information Attachment B Product information.xlsx, consisting of the following tabs: Product information I.3 Functional requirement spreadsheets Attachment C - FBM Functional Requirements.xlsx Lists the desired capabilities in Financial Business Management (FBM) Attachment D HCM Functional Requirements.xlsx Lists the desired capabilities in Human Capital Management (HCM) Attachment E ADS Functional Requirements.xlsx Lists the desired capabilities in Administrative Services (ADS) I.4 Non-functional requirement spreadsheets Attachment F - ERP Technical Requirements.xlsx I.5 Offeror information worksheets Attachment G Company information.xlsx To provide company organizational and financial information I.6 Reference sheet Attachment H Reference sheet.xlsx Please complete one worksheet for each reference you provide. As stated earlier, Offerors shall provide as many references as available up to ten (10). 52

53 I.7 Price sheet Attachment I Price sheet.xlsx, consisting of the following tabs Instructions ERP Software Package Price Operational Cost Payment Offeror assumptions I.8 State attachments Attachment AA Attachment MM 53

54 ATTACHMENT AA STATE OF ILLINOIS STATE BOARD OF ELECTIONS REGISTRATION Section of the Illinois Procurement Code prohibits political contributions of certain vendors, bidders and Offerors. Additionally, section 9-35 of the Illinois Election Code governs provisions relating to reporting and making contributions to state officeholders, declared candidates for State offices and covered political organizations that promote the candidacy of an officeholder or declared candidate for office. The State may declare any resultant contract void if these Acts are violated. Generally, if a vendor, bidder, or Offeror is an entity doing business for profit (i.e. sole proprietorship, partnership, corporation, limited liability company or partnership, or otherwise) and has contracts with State agencies that annually total more than $50,000 or who has aggregate pending bids or proposals and current State contracts that total more than $50,000, the vendor, bidder, or Offeror is prohibited from making political contributions and must register with the State Board of Elections. 30 ILCS 500/ EVIDENCE OF REGISTRATION WITH THE STATE BOARD OF ELECTIONS IS THE CERTIFICATE OF REGISTRATION 54

55 STATE OF ILLINOIS AUTHORIZED TO DO BUSINESS IN ILLINOIS ATTACHMENT BB A person, other than an individual acting as a sole proprietor, must be a duly constituted legal entity and authorized to do business in Illinois prior to submitting an offer. 30 ILCS 500/ Offerors must review and complete certification #31 in the Standard Certifications Attachment GG. Certification #31 requires Vendor to check one of the four boxes representing its status. Two of the four options require that the Vendor attach to the Standard Certifications Attachment GG a detailed explanation of the legal basis for its status claim. The State may request evidence from a vendor that certifies it is authorized to do business in Illinois proving such authorization. Failure to produce evidence in a timely manner may be considered grounds for determining Vendor non-responsive or not responsible. For information on registering to conduct business in Illinois, please visit the Illinois Secretary of State s Department of Business Services at their website at ( or your home county clerk. EVIDENCE OF BEING AUTHORIZED TO DO BUSINESS IS THE SECRETARY OF STATE S CERTIFICATE OF GOOD STANDING 55