IT Consulting Solicitation: Pioneering the Next Generation June 22, 2015

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1 IT Consulting Solicitation: Pioneering the Next Generation June 22, 2015 Jason Allison, Executive Director Agency for State Technology Chad Poppell, Secretary Department of Management Services

2 Agenda Why are we here? Current State Stakeholder Considerations Solution-Oriented Plan Future Communication Anticipated Timeline Questions

3 Why Are We Here? DMS and AST are working together to procure IT Services. AST is the What and DMS is the How Current contract is coming to an end expires 8/31/2015 Communicate the plan to resolicit CIO participation in the process

4 Current State Vendor resources under the current contract: The current contract has been in place for 6 years The contract originally had 439 vendors - that number has dropped over the years to 282 Vendor participation is less than half of the current number, with 100 of the 282 vendors encompassing 99% of state spend

5 Current State Cont. Purchasing Directors and Chief Information Officers were asked to complete a survey regarding IT Consulting services Both were asked: 1. If they preferred there be a state term contract for these services 2. If desired services were available under the current contract 3. If desired contractors were available under the current contract 4. How many vendors they thought should be on a contract 5. Is it difficult to choose a vendor under the current contract 6. If the number of project areas were sufficient 7. What should the quote thresholds for services be

6 Current State Cont. Survey Responses TOTAL: 22 CHIEF INFORMATION OFFICERS 15 Agencies Responded All preferred there be a STC for these services 93% stated desired services are / were available under the current STC 29% indicated desired contractors not on the current STC 58% stated the number of contractors should be greater than % agreed with requiring an RFQ for purchases >$35,000 86% agreed that four was the right number of project areas PURCHASING DIRECTORS 16 Agencies Responded All preferred there be a STC for these services All Agencies stated that the contract meets / met their needs most of the time 81% indicated that the number of vendors should be between 50 and % agreed with requiring an RFQ for purchases >$35,000 94% agreed that four was the right number of project areas

7 Current State Cont. Additional Activities Review of each project area MFMP spend analysis Contacted high volume users Vendor communication

8 Current State Cont. Stakeholders CIOs OEUs DMS and AST Vendors PDs

9 Stakeholder Considerations Chief Information Officers Contract model that can adapt to new technologies Ensure sufficient depth of resources available on contract Focus on staff augmentation Purchasing Directors Right number of vendors on contract Continued competition via RFQs Vendors Opportunities to be on state term contract at faster pace Ability to offer customers latest technologies Opportunities to participate in agency RFQs DMS Maximize state spend through competition Manageable contract administration AST Making sure agency customer needs are met Reliable reporting of contract utilization and agency spend

10 So what s the plan?

11 Solution-Oriented Plan Strategic two-phased approach: Phase 1: DMS will conduct two solicitation activities: Staff Augmentation Independent Validation and Verification (IV&V) Phase 2: Further need identification regarding Project- Based/Fixed Price Services May result in future state term contracts for services

12 Solution-Oriented Plan Cont. Contract Length 2 years Will account for dynamic technology environment Will foster more robust competition Staff Augmentation Solicitation Award Up to 200 Vendors Historical spend at 100 vendors Manageable contract with consideration of 2 year term Pricing Rate Card unchanged for length of current contract Engaging Gartner for new rate card Selection Process CIOs select up to three vendors from contract list MFMP randomly selects five more vendors for consideration Vendor resource verification Justification to File for Selection Agencies are currently required by rule to document basis for RFQ decisions New state term contract will provide a template for documenting decisions

13 Solution-Oriented Plan Cont. Independent Verification & Validation Solicitation Conduct Competitive Solicitation Provide quality management system support Aligns with AST Project Management Oversight Award to Multiple Vendors Allows vendor selection options Sufficient vendor pool

14 Solution-Oriented Plan Cont. Need Identification Project-Based Services Explore possibility of conducting separate solicitations for project-based solutions Will allow us to better understand agency needs regarding IT consulting project Pursue needs

15 Anticipated Timeline - First, extend current contract 6 months to allow for solicitation - new expiration will be 2/28/16 - Use an RFP to procure services - Post contract execution, the solicitation process begins again June-August 2015 September 2015 February 1, 2016 Gather additional information & develop RFPs Launch RFPs Contracts in Place

16 Questions?