STATE OF ILLINOIS REQUEST FOR INFORMATION

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1 I. General Information Introduction This Request for Information ( RFI ) is being issued by the ( GOMB or State ) to obtain information regarding a Tier-1 enterprise resource planning solution ( ERP Solution ) that will enable Illinois to standardize back-office business processes Statewide. 1.0 Purpose 1.1 Purpose of RFI The purpose of this RFI is to invite responses that will assist GOMB in understanding the products and services typically offered by entities that provide Tier-1 ERP Solutions. In addition to an end-to-end Tier-1 ERP Solution, GOMB is interested in understanding the products and services offered by eprocurement and Contract Administration point solutions. GOMB will not award a contract on the basis of the responses to this RFI. The State of Illinois may issue a Request for Proposal ( RFP ) to identify a Statewide Tier-1 ERP Solution subsequent to receipt of responses to this RFI. A Tier-1 ERP Solution serves the business needs of Fortune 100 global enterprises, is scalable to support over 50,000 parallel users with several thousand concurrent transactions, and typically requires complex, sophisticated information technology ( IT ) infrastructure and highly-skilled IT professional support. The State of Illinois may also issue an RFP to identify an eprocurement and Contract Administration point solution subsequent to receipt of responses to this RFI. 1.2 Purpose of the ERP Solution Currently, the individual agencies of the State utilize disparate technology systems resulting in employees performing repetitive entries, reconciling hundreds of systems, and having to assemble cross-agency data from multiple systems. Implementation of a single Statewide ERP Solution (supplemented by point solutions such as eprocurement and Contract Administration solutions, where applicable) is intended to ensure transparency and compliance with regulations, increase State efficiency and effectiveness by adopting simplified and standardized business processes, optimize costs and risk resulting from maintenance of multiple systems, and empower leadership with critical insights to improve the management of State initiatives. 2.0 Background 2.1 About 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). 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. 2.2 The State s Current Technology The State does not have a single system for administrative functions such as Finance, Human Resources, and Procurement. Individual agencies utilize disparate systems and applications, performing functions that are typically included in an ERP Solution. Page 1 of 15

2 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 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 reconciliations of multiple source systems, and an inability to quickly close a fiscal period. As a result, the State struggles each year to complete audited financial statements in a timely manner. In addition, the assembly of accurate and consistent cross-agency data is similarly laborious. Human resources systems are fragmented. There are multiple mainframe-based payroll systems with everdecreasing mainframe programmers and experts. 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. 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 paper tracking of invoice requests that are prone to mistakes, and cause duplication and increased processing time. 3.0 Fact pack The following is provided for general background information and all numbers are estimates. State of Illinois Number of employees 50,000 Number of agencies 79 Number of core users 10,000 Number of casual users 50,000 Finance Number of administrative users 1,000 5,000 Number of casual users 1,000 5,000 Number of simultaneous users 1,000 Number of cost centers 5,000 Daily / Annual business transactions 250,000 / 50,000,000 Human Resources Number of administrative users 1,000 5,000 Number of casual users 50,000 Number of simultaneous users 10,000 Page 2 of 15

3 Number of personnel system members 50,000 Number of benefits system members 500,000 Daily / Annual business transactions 25,000 / 5,000,000 Procurement (Commodities) Number of administrative users 1,000 2,500 Number of casual users 1,000 2,500 Number of simultaneous users 1,000 Number of unique vendors 1,000 Daily / Annual business transactions 10,000 / 2,000,000 Procurement (Products & Services) Number of administrative users 1,000 2,000 Number of casual users 1,000 2,000 Number of simultaneous users 50 Number of annual procurements 9,000 Daily / Annual business transactions 3,000 / 36,000 Operating Environment Security / Compliance requirements Extensive State & Federal requirements Mainframe environment 4 Mainframes; Production = 4,099 MIPS; Disaster Recovery = 4,320 MIPS; 4.1 Petabytes of storage Server / Workstation environment Database management systems Archive / Record management requirements 3,755 Servers (Windows, Novell, Unix); 36,065 Workstations, 972 Customer sites IMS, DB2, Oracle, SQL, Access databases Extensive State & Federal requirements Page 3 of 15

4 4.0 Legal This RFI is being issued solely for the purpose of gaining knowledge that will assist the State in understanding products and services typically offered by entities that provide Tier-1 ERP Solutions. This RFI is not a solicitation and no contract will result from any response to this RFI by any person or entity ( Respondent ). The State will not pay for any information requested in this RFI, nor is the State liable for any costs incurred by any Respondent in connection with any presentations or demonstrations. The information gathered by the State is intended to be used to make subsequent decisions about the State s implementation of a Tier-1 ERP Solution. The responses to this RFI should be submitted in the format described in Section 8.0. Respondents are cautioned that all information provided in response to this RFI is considered the property of the State and will be available for public review. As a public body subject to laws requiring openness and transparency (e.g., the Freedom of Information Act), GOMB cannot guarantee that any information submitted pursuant to this RFI will be protected from public disclosure. Respondents are encouraged to provide detailed responses to the questions; however, Respondents may choose to leave questions unanswered. The State may contact some Respondents with follow-up questions and requests for presentations in connection with responses to this RFI. All presentations or demonstrations, should any be scheduled, will take place the week of April 21, Presentations or demonstrations will be conducted in person in Springfield, Illinois, or virtually at a place and time to be determined by GOMB and coordinated with invited Respondents. Respondents will be contacted at the sole discretion of the State, but contact does not imply advantage to the contacted Respondents in any future solicitation. Submitting a response to this RFI will not prohibit a Respondent from bidding on an RFP for a Statewide Tier-1 ERP Solution, should one be issued, nor will it prevent a Respondent from entering into a contract with the State under 30 ILCS 500/ (e). Parties that decline to respond to this RFI will not be precluded from responding to a future solicitation, if any, related to the identification of a Statewide Tier-1 ERP Solution. 5.0 System Requirements 5.1 System Functional Requirements The ERP Solution shall replace existing system functionality as well as add system functionality where none existed previously. The ERP Solution should include, but not be limited to, the following functional components: Financial Business functions (e.g., General Ledger, Accounts Receivable, Accounts Payable, Treasury and Cash, Asset Lifecycle, Bank Reconciliation, Budget Preparation, Budget Execution, Grants, and supporting financial analytics). Human Capital functions (e.g., Hiring, Personnel Administration, Labor Relations, Payroll, Benefits Administration, Leave, Time and Attendance, Compensation, Performance, Learning and supporting human capital management analytics). Page 4 of 15

5 Administrative Services functions (e.g., Procurement, Encumbrance Accounting, Travel and Expense, Project Accounting, Capital Projects, and supporting procurement analytics). An eprocurement and Contract Administration Point Solution should include, but not be limited to, the following functional components: eprocurement and Contract Administration functions (e.g., prospective bidder, offeree and respondent management, web-enabled solicitation and award of contracts, contract management, vendor portal including vendor registration, vendor performance and compliance tracking, online capabilities for non-contracted vendor registration and maintenance, web-enabled invoicing and payment, e-catalog management, supplier network integration inclusive of punchouts, purchase order integration, general ledger integration, and purchasing analytics). 5.2 System Technical Requirements The ERP Solution shall replace existing systems and add technical components where none existed previously. The ERP Solution should include, but not be limited to, the following technical capabilities: Solution Architecture components (e.g., Integration Architecture, Workflow Processing, Data Warehousing and Business Intelligence, Data, User Interface, Data Entry Support and Online Help, System Administration). Technology Architecture features (e.g., Scalability, Security, Data Storage and Archival, Audit, Capacity and Performance, Business Continuity and Disaster Recovery, Hosting, Remote Services, Cloud Computing, Infrastructure Platform, and Network). II. Response Requested The following section requests responses from Respondents. Respondents shall prepare their responses using the following format. Responses should be clear, concise, and directly address the questions. 6.0 Respondent Information 6.1 ERP Solution Information (For ERP Respondents only) Company overview Name of ERP Solution provider Name of contact person Title Telephone number address Page 5 of 15

6 Mailing address STATE OF ILLINOIS Company website address Company s primary line of business Name of ERP Solution Product information Prior experience Timeline Delivery model Please describe your ERP Solution that would meet the requirements of a U.S. state that is Illinois. In previous experiences where your ERP Illinois, what were the modules delivered outof-the-box with minimal customization? In previous experiences where your ERP Illinois, what were the modules that needed reasonable customization efforts? Based on your prior experience, please describe why your ERP Solution may be an appropriate ERP Solution for a U.S. state that is similar in scale and complexity to the State of Illinois. In previous experiences where your ERP Illinois, what was the implementation sequence of the functional modules, and how much time was allocated for each? What types of delivery models do you offer for your ERP Solution (e.g., on-premise, hosted, on-demand cloud)? Please provide pros and cons of each. In previous experiences where your ERP Illinois, what delivery model was utilized, and why (e.g., on-premise, hosted, on-demand cloud)? Page 6 of 15

7 Implementation model In previous experiences where your ERP Illinois, what was the implementation approach (e.g., implemented alone, implemented with SI partner)? If you partnered with someone, please provide details of that partnership, specifically with regard to the reasons for your decision to partner with that SI as opposed to any other. Describe the typical staffing organization needed during implementation and delivery of your ERP Solution, where your ERP Solution was delivered to a U.S. state that is similar in scale and complexity to the State of Illinois. Please provide information on the ratio of client resources vs. ERP vendor resources vs. SI resources. Please list the types of resources (e.g., functional subject matter experts ( SMEs )), # of resources, and # of years. Figure 1: Example (Illustrative): Resource # of resources # of years type HR SME 2 Full-time 2 resources for first 2 years, 1 resource until stabilized The previous question inquired as to the typical staffing needed during implementation; now please describe the typical support organization that was needed after go-live of your ERP Solution, where it was delivered to a U.S. state that is similar in scale and complexity to the State of Illinois. Page 7 of 15

8 Vendor Support STATE OF ILLINOIS Please provide information on the ratio of client resources vs. ERP vendor resources vs. SI resources. Please list the types of resources (e.g., functional SME), # of resources, and # of years (as in the example above). Based on your prior experience, what level of configuration do you typically provide postbasic installation (e.g., optimization of the application, linking of application modules with special configuration)? Source of complexity In previous experiences, where your ERP Illinois, what type of challenges did you encounter? How did you overcome those challenges? 6.2 Use case of ERP Solution (For ERP Respondents only) ERP Solutions Please share case examples where your Tier-1 ERP Solution was successfully utilized. 6.3 U.S. state use case of ERP Solution (For ERP Respondents only) For U.S. states, in which your ERP Solution has been successfully implemented, please indicate the name and version of the product, including third-party point solutions, used for each of the functional modules listed below. For any functional module that was not implemented, please indicate N/A. Please respond by completing the table below. If necessary, extend the table to provide additional information. Tier 1 ERP Solution Implemented Systems Integrator Vendor Scale of State (e.g., # of users, # of parallel transactions, # of accounts) State of XX State of XX State of XX State of XX Page 8 of 15

9 Length of Implementation Functional modules: Please indicate the name and version of the product, including third-party point solutions, used for each of the functional modules listed below. For any functional module that was not implemented, please indicate N/A. General Ledger Accounts Receivable Accounts Payable Treasury and Cash Asset Lifecycle Bank Reconciliation Encumbrance Accounting Budget Preparation Budget Execution Grants Investment Debt and Bond Loans Hiring Personnel Administration Labor Relations Payroll Benefits Administration Leave Time and Attendance Page 9 of 15

10 Compensation Performance Learning Requisition to Purchase Order Bid Process Contracts Vendor Purchasing Card (P- Card) Travel and Expense Project Accounting Capital Projects 6.4 eprocurement and Contract Administration Solution Information (For eprocurement and Contract Administration Respondents only) Company overview Name of eprocurement and Contract Administration Solution provider Name of contact person Title Telephone number address Mailing address Company website address Company s primary line of business Page 10 of 15

11 Name of eprocurement and Contract Administration Solution Product information Integration Please describe your eprocurement and Contract Administration Solution that would meet the requirements of a U.S. state that is Illinois. In previous experiences where your eprocurement and Contract Administration Illinois, what were the functionalities delivered out-of-the-box with minimal customization? In previous experiences, where your eprocurement and Contract Administration Illinois, what were the functionalities that needed considerable customization efforts? In previous experiences, where your eprocurement and Contract Administration Illinois, how did the solution handle parallel approval process for multiple stakeholders? In cases where your eprocurement and Contract Administration Solution was implemented in a U.S. state that is similar in scale and complexity to the State of Illinois, how did the solution integrate with an existing ERP system? In previous experiences, what were the ERP systems that your eprocurement and Contract Administration Point Solution was integrated with? What were the key challenges with each of these systems and how did you overcome these challenges? What are the reporting capabilities of your eprocurement and Contract Administration solution? In cases where your eprocurement and Contract Administration Solution was Page 11 of 15

12 Timeline Vendor Support STATE OF ILLINOIS implemented in a U.S. state that is similar in scale and complexity to the State of Illinois, how was eprocurement reporting integrated with overall system reporting? In previous experiences where your eprocurement and Contract Administration Illinois, what was the implementation timeline? Post-basic installation, what level of support (e.g., upgrades) do you provide? Source of complexity In previous experiences, where your eprocurement and Contract Administration Illinois, what type of challenges have you encountered? How did you overcome those challenges? Satisfaction In cases where users are dissatisfied with an eprocurement and Contract Administration Solution, what are the typical sources of dissatisfaction? How do vendors address them? 7.0 Best Practices information (For ERP Respondents only) Systems Integrator Sequencing and Duration What is industry best practice for Tier-1 ERP design and implementation for a U.S. state, particularly as it pertains to a partnership with third-party system integrators ( SIs )? If applicable, who are the major SIs with whom you have established a partnership? Please provide information on recent implementations where you partnered with SIs (e.g., name of the SI, responsibilities of ERP vendor vs. SI partner throughout the implementation). During implementation of an ERP Solution in a U.S. state, what is the industry best practice for sequencing of the functional models listed in Section 6.3? What are best practice timelines for implementing your ERP Solution Page 12 of 15

13 in similar public sector organizations? Delivery model State support organization Challenges Pricing structure What are the best-practice delivery models (e.g., on-premise, hosted, on-demand cloud) for an ERP Solution in a U.S. state? Please provide details of each delivery model. What are your recommendations for an optimal implementation organization during implementation and delivery of a Tier-1 ERP Solution for a U.S. state that is similar in scale and complexity to the State of Illinois? Please list the types of resources (e.g., functional SME), # of resources, ratio of clients vs. ERP vendor resources vs. SI resources, # of years support needed (Figure 1). The previous question inquired as to the recommended support during implementation; now please describe the recommended support organization after go-live of a Tier-1 ERP Solution for a U.S. state that is similar in scale and complexity to the State of Illinois. Please list the types of resources (e.g., functional SME), # of resources, ratio of clients vs. ERP vendor resources vs. SI resources, # of years support needed (Figure 1). What are your recommendations as to any other resources and support that must be provided by a U.S. state during implementation and delivery of a Tier-1 ERP Solution (e.g., facilities, hardware, training)? What are your recommendations as to any other resources and support that must be provided by a U.S. state after go-live of a Tier- 1 ERP Solution (e.g., facilities, hardware, training)? Based on your experience in the public sector, what are the biggest challenges in successfully implementing a Tier-1 ERP Solution for a U.S. state? What is the industry best practice pricing structure for a Tier-1 ERP Solution for a U.S. state? What are the best practice pricing Page 13 of 15

14 structures for implementation and support? What is the best practice approach to calculating total cost of ownership for ERP systems in a U.S. state setting? Solution demonstration Satisfaction What are typical data requirements in order to provide ERP Solution demonstrations? In cases where users are dissatisfied with an ERP solution, what are the typical sources of dissatisfaction? How do vendors address these? 8.0 Detailed submission instructions A. Instructions for submitting information A.1. HOW TO ENTER INFORMATION: Type information in the text fields provided. Text fields are indicated by the instruction Click here to enter text. in red font. If the information requested does not apply to the Respondent s situation, then enter N/A into the text field. Please enter the requested information or N/A into every red text field. A.2. DOCUMENTATION FORMAT: Responses must be in MS Word or PDF format. Please submit (2) hard copies and (1) electronic copy on memory stick or CD-ROM. A.3. A.4. PUBLISHED PROCUREMENT INFORMATION: Information regarding this RFI, including updates, will be published on the Illinois Procurement Bulletin ( Procurement Bulletin ) ( Procurement information may not be available in any other form or location. Respondent is responsible for monitoring the Procurement Bulletin. The State will not be held responsible if Respondent fails to receive the optional notices provided by the Procurement Bulletin. CONTACT: The individual listed below shall be the single point of contact for this RFI. Unless otherwise directed, Respondent should only communicate with the RFI Contact. The State/GOMB shall not be held responsible for information provided by or to any other person. RFI Contact: Christ Balich Phone: Agency: Governor s Office of and Budget Street Address: 100 W. Randolph Street, Suite Fax: TDD: City, State, Zip: Chicago, IL christ.balich@illinois.gov Page 14 of 15

15 Do not discuss this RFI, directly or indirectly, with any State officer or employee other than the RFI Contact. A.5. RFI DUE DATE, TIME, AND ADDRESS FOR SUBMISSION OF INFORMATION: A.5.1. RFI Due Date & Time Date: April 17, 2014 Time: 2:00 p.m. A.5.2. Submit/Deliver RFI To: Label (outside of envelopes/containers): Agency: Governor s Office of Budget & Sealed Do Not Open Attn: Christ Balich Address: 100 W. Randolph Street, Suite City, State, Zip: Chicago, IL Project Title & Reference #: Enterprise Resources Planning (ERP) System, RFI No. 14 OMB 010. Due Date & Time: April 17, 2014, 2:00 p.m. Name City, State, Zip Page 15 of 15