Attachment B Statement of Work

Attachment B Statement of Work Statement of Work 1

Section 1 Overview... 4 1.1 Definitions... 4 1.2 Contract Objectives... 4 1.3 System Overview... 4 Section 2 Project Governance Structure and Staffing Requirements... 6 2.1 Cooperation with the Department and Other Entities... 7 2.2 Cooperation in the Event of a Subsequent Contractor... 7 2.3 Contractor Staffing Requirements... 8 Section 3 Project Administration... 9 3.1 Project Management... 9 3.2 Phase Gate Reviews... 10 3.3 Knowledge Transfer... 11 3.4 Disaster Preparedness / Disaster Recovery... 12 Section 4 Project Execution Performance Periods... 13 4.1 DDI Performance Period... 13 4.2 ST Performance Period... 13 4.3 OS Performance Period... 14 Section 5 Design, Development and Implementation (DDI) Performance Period... 15 5.1 DDI Performance Period Phase One: Initiation and Planning... 15 5.2 DDI Performance Period Phase Two: Requirements Elaboration... 17 5.3 DDI Performance Period Phase Three: System Design... 19 5.4 DDI Performance Phase Four: System Development and Test... 25 5.5 DDI Performance Phase Five: Data Conversion... 27 5.6 DDI Performance Phase Six: Testing... 28 5.7 DDI Performance Phase Seven: Implementation... 32 Section 6 Services Transition (ST) Performance Period... 35 Statement of Work 2

6.1 ST Performance Period Phase A Warranty Phase... 35 6.2 ST Performance Phase B Services Transition Phase... 37 Section 7 Operational Support (OS) Performance Period... 37 Section 8 Project Deliverables for All Phases... 39 8.1 Project Governance and Oversight Deliverables... 40 8.2 DDI Performance Period Phase One: Project Initiation Deliverables... 40 8.3 DDI Performance Period Phase Two: Requirements Elaboration... 42 8.4 DDI Performance Period Phase Three: System Design Deliverables... 43 8.5 DDI Performance Period Phase Four: System Development and Test Deliverables... 45 8.6 DDI Performance Period Phase Five: Data Conversion Deliverables... 46 8.7 DDI Performance Period Phase Six: Testing Deliverables... 47 8.8 DDI Performance Period Phase Seven: Implementation Deliverables... 48 8.9 ST Performance Period Phase A: Warranty Phase Deliverables... 50 8.10 ST Performance Period Phase B: Services Transition Phase Deliverables... 51 8.11 Additional Considerations Operational Support Performance Period Deliverables... 51 Statement of Work 3

Section 1 Overview 1.1 Definitions In this document, in addition to the definitions in the PUR 1000 and PUR 1001, capitalized terms shall have the meanings stated in the solicitation Attachment K, incorporated as Exhibit 3 of the Contract. Defined terms in the singular shall include the plural and vice versa, and the masculine, feminine, or neuter gender shall include all genders. 1.2 Contract Objectives The Department of Financial Services ( DFS, or the Department ) expectation for the RMIS replacement is that it will meet the Division of Risk Management s ( DRM or the Division ) business objectives, including: Improved Efficiency and Reduced Errors: The new system must collect and manage claim information, administer claims, provide workflow and other tools to support the ability of users to communicate with each other, accept and route information, work files and set reminders for key actions. Improved efficiency will enable adjusters to work on high priority items such as investigations and legal issues in a timelier manner. Improved Collaboration and System Integration: The new system should greatly increase the seamless technical integration of the Division with its partners, including third party administrators, other Divisions within the Department and other State and Federal Agencies. This integration should reduce or eliminate the extensive manual effort currently required to export and import data. Enable Self-Service Internally and Externally: The new system should support self-service by Division employees (for example, requesting standard reports), Vendors (for example, submitting invoices electronically) and State Agencies (for example, submitting a property update or claim notification electronically). Performance Measurement: The new system should support tracking and reporting of metrics and improve data access for performance management. 1.3 System Overview To support the Division s objectives, the new system is expected to include, but is not limited to: 1) Business Rules Engine 2) Web Based architecture 3) Document imaging and management, including tight integration with FileNet P8 4) Advanced search capabilities 5) Workflow management 6) Communication administration, including e-mail system integration Statement of Work 4

7) Customer relationship management, or tight integration with an external customer relationship management (CRM) system 8) Automated system interfaces 9) Data import / export, including batch processing 10) Reporting and dashboard tools 11) Enhanced security (role-based) 12) Auditing tools 13) System administration tools 14) Agency self-service portal The new system ( System ) is expected to support the following high-level business functions: 1) Policy administration, including Rating / Binding, issuing Certificates of Insurance with detailed property schedules, calculating premiums and processing no-cost endorsements. Note that the Department has unique Policy administration requirements related to potential annual changes in the organizational structure of various state agencies / policyholders (e.g. Legislatively mandated mergers or reorganizations that necessitate moving properties, claims or history). 2) Claims management, including first notice of loss / injury, validation of coverage, investigation, loss and loss adjustment expenses, reserving, subrogation, salvage and deductible recovery, vendor management, litigation management, claims payment, claims history, third party administrator (TPA) data integration and image and document management. 3) Finance and accounting, including premium and deductible billing, premiums and receivables collection, general ledger interface and payment processing. Note that the Department has unique Finance and Accounting (F&A) requirements related to interfacing with existing financial management systems and calculating deductibles. 4) Reporting, including statistical reporting to the Division of Worker s Compensation (DWC) and other entities, claims data reporting to DWC and Centers for Medicare and Medicare Services (CMS), management reporting, work tracking, auditing, claims monitoring and actuarial data reporting. Statement of Work 5

Section 2 Project Governance Structure and Staffing Requirements This project will be administered by the Department s Division of Information Systems (DIS) and Division of Risk Management. The expected organizational chart of the project team follows. The Contractor is expected to fully cooperate and participate with the Department and any of its partners or Vendors. Project Sponsor Executive Steering Committee Department Project Manager Department Contract Manager Third Party Business App Owners Contractor Project Coordinator Department Project Team Contractor Project Team Key Resources Include: Requirements Lead, Development Lead, Testing Lead, Training Lead, Implementation Lead and Transition Resource The Department s governance structure and stakeholders include: Role Responsibility Project Sponsor Responsible for funding and project resources. Responsible for strategic project direction. Escalation point for Project Director. Executive Steering Consists of members from DIS, DRM and other stakeholders. Committee Monitors ongoing project progress. Responsible for supporting project with Division resources as necessary. Responsible for decision making regarding scope, budget and schedule of the Department Contract Manager Department Project Manager Contractor Project Coordinator project. Day-to-day point of contact for the Department in interfacing with the Contractor post implementation. Has authority to make or obtain contractual decisions on behalf of the Department. Responsible for dispute resolution. Escalation point for the Department Project Manager. Reviews, verifies and approves invoices from the Contractor. Manages day-to-day execution of the project during implementation. Coordinates activities and communication between project team members. Interfaces with Contract Manager to review and approve Contractor deliverables. Acts as liaison between the project team, project support, the steering committee and project sponsor. The Contractor Project Coordinator is required to be a Project Management Institute (PMI) certified Project Management Professional (PMP). A member of Key Resources (see Section 2.3). Statement of Work 6

Role Contractor Project Team Contractor Transition Resource (see 3.3) Department Project Team Departmental Project Support Functional Leads and Business Process Owners Technical Leads, DBA, Application Development Leads Third-Party Business Application Owners Responsibility Single day-to-day point of contact for the Department in interfacing with the Contractor. Responsible for the successful execution of the contract scope of work and deliverables. Responsible for tracking and reporting status of project execution to the Project Manager. Acts as liaison between the Contractor and the Project Manager and DRM Contract Manager. Responsible for successful technical, business and management activities for design, development and implementation of the project. Key resources on the Project Team include: o Requirements Lead o Development Lead o Testing Lead o Training Lead o Implementation Lead o Transition Resource A member of the Key Resources (see Section 2.3). A technical member of the design, development and implementation team that stays on after Go-Live to provide onsite operational maintenance and support for two years during the Services Transition Performance Period. Employees or contractors of the Divisions of Risk Management or Information Systems assigned by the Department to support the system design, implementation and operation associated with this Contract. Department Legal, Human Resources, Procurement, Finance and Accounting and Budget staff that provide additional project support as necessary. DRM resources that act as subject matter experts in verifying and refining requirements, reviewing designs and interfaces, confirming data accuracy and performing user acceptance testing. DIS resources that act as subject matter experts on the expected architecture of the new system as well as interfacing with existing business systems. Provide data extracts and work with the Contractor Project Team to implement APIs and interfaces to achieve the expected level of integration with external business applications. Responsible for providing necessary documentation and information on the function of third party applications that the new system will attach to. Assists in understanding the data structures needed to move data seamlessly between applications. Provides necessary access and permissions to the third party system to enable integration or interfacing. Third-party business application owners can be employee of the Department, other state or Federal agencies or third-party Vendors under contract with the Department. 2.1 Cooperation with the Department and Other Entities As required by Attachment A Standard Contract, section 7.8; the Contractor and its subcontractor(s) agree to cooperate fully with the Department, Partners, oversight authorities and other contractors retained by the Department. 2.2 Cooperation in the Event of a Subsequent Contractor If the Contract, or any portion thereof, is terminated for any reason prior to its completion, the Contractor agrees to comply with the terms of Attachment A Standard Contract section 12, Statement of Work 7

including cooperating fully with the subsequent contractor. Such requirement shall exist notwithstanding the reasons for the retention of the subsequent contractor, including but not limited to cancellation, termination or expiration of the Contract with the Contractor. 2.3 Contractor Staffing Requirements The Contractor shall maintain staffing levels sufficient to complete the services and meeting the requirements specified in the Contract and statement of work. Proposed individuals skill levels should be consistent with the proposed System and services. The Contractor must provide resumes demonstrating appropriate experience for all proposed staff. The Department reserves the right to reject any proposed team members throughout the Contract period. The Contractor will identify key personnel in their reply. Key personnel ( Key Resources ) are those that the Department or Contractor deem essential to the successful execution of the Project. Key personnel includes, but is not limited to: Project Coordinator, Requirements Lead, Development Lead, Testing Lead, Training Lead, Implementation Lead and Transition Resource(s). The Contractor may not reassign any key project personnel except as provided for and in the manner described by section 7 of Attachment A Standard Contract. The Contractor may not knowingly employ or contract with any former employee of the Department in violation of section 112.3185, Florida Statutes (F.S.). Statement of Work 8

Section 3 Project Administration The following sections describe the responsibilities of the Contractor and the Department with regards to general project execution tasks. Later sections describe responsibilities related to Design, Development and Implementation tasks. 3.1 Project Management Project management is the responsibility of the Department and the Contractor. The Contractor will designate a Project Management Institute (PMI) certified Project Management Professional (PMP ) to oversee Contractor activities on this project. This person may not be replaced without the prior consent of the Department. The Contractor Project Manager is responsible for the successful delivery of the Contractor s services in accordance with the Contract and statement of work. The Contractor will manage all Contractor and subcontractor (if any) activities as specified in the Project Management Plan (PMP). The Department will develop the PMP with appropriate input from the Contractor. All activities described in the PMP will be consistent with the Project Management Body of Knowledge (PMBOK) standards for project management. The Contractor will be responsible for maintaining consistent communications with the Department Project Manager and other members of the project team. The Department will establish a SharePoint site for maintaining project documentation and deliverables. The Contractor will use this library to store, access and reference documents and deliverables related to this contract. 3.1.1 Contractor Project Management Responsibilities 1) Provide input into the PMP. 2) Manage and direct Contractor and subcontractor staff. 3) Create and maintain a fully resource-loaded project schedule for all Design, Development and Implementation (DDI) activities. 4) Manage the project according to the agreed project schedule. 5) Prepare and submit weekly project status reports. 6) Participate in weekly project status meetings. 7) Prepare and distribute minutes from project status meetings within three business days of meeting. 8) Identify risks, issues and opportunities and submit to Project Manager. 9) Identify and notify Department Project Manager of scope, budget, schedule or resource issues. 10) Require compliance with project management, development, security and other standards of the Department from all Contractor and subcontractor resources. Statement of Work 9

11) Prepare formal reports and presentations. 12) Participate and cooperate with audits, reviews and quality activities. 13) Provide documents to the Project team for review in the formats and on the timeframes specified in the project schedule and Deliverable Expectation Documents (DEDs) and maintain project documentation in SharePoint site. 14) Maintain records in accordance with the Florida Sunshine laws as appropriate. 3.1.2 Department Project Management Responsibilities 1) Develop and maintain the PMP. 2) Work with the Contractor to develop or approve applicable project management templates. 3) Define reporting structures and expectations between project participants. 4) Facilitate the resolution of issues. 5) Facilitate the availability of Department staff. 6) Facilitate timely review and acceptance of project deliverables. 7) Review and approve schedules changes. 8) Review and approve risk or issue mitigation plans or activities. 9) Review and approve all Contractor project staff. 10) Review and approve project status reports. 11) Negotiate changes in scope as appropriate and necessary. 12) Coordinate with stakeholders to prepare for implementation. 13) Support the Contractor by providing required information timely. 14) Provide a SharePoint library for all project documentation. 15) Provide the Contractor with workspace at the Department s facilities in Tallahassee, Florida. 16) Provide the Contractor access to the Department s infrastructure, including server and operating system, network connectivity, database software and tools, and data storage as needed for the Project. The Contractor will use these resources in accordance with the Department s published usage and security guidelines. Any Contractor resources connected to the Department s infrastructure will be subject to inspection and approval. See: http://www.myfloridacfo.com/division/dis/isdm/ 3.2 Phase Gate Reviews The Department will manage the progress of the Project according to phases as described in the Design, Development and Implementation section. Each phase concludes with a formal gate review of Project deliverables, risks, opportunities and accomplishments. These reviews give the Department and the Contractor an opportunity to determine whether the Project is making sufficient progress to continue. Successful completion of the gate review at the end of a Statement of Work 10

phase is the trigger that allows the Contractor to invoice the Department for Deliverables completed within that phase, per the process defined in Attachment A Standard Contract sections 8 (Acceptance of Deliverables) and 9 (Payment and Financial). 3.3 Knowledge Transfer The Department requires the Contractor to develop and execute a robust knowledge transfer plan. It is the intent of the Department to develop the internal capabilities to maintain the System after implementation. The Contractor must include in its proposal staffing for a two-year transition period after implementation. The resource(s) identified by the Contractor responsible for the Transition Period must be member(s) of the implementation team during the initial System implementation ( Transition Resource ). During this transition period, responsibility for maintaining the System will gradually transition from the Contractor to Department staff. During Design, Development and Implementation the Contractor is responsible for developing a transition plan that covers this two-year period. The Transition Plan should detail the knowledge that the Department must gain proficiency in and provide a schedule with testable milestones for the Department s resources to achieve. In addition, knowledge transfer will be an integral component of each phase gate, with functional and technical knowledge transfer expected to be a component of each major deliverable signoff. 3.3.1 Contractor Knowledge Transfer Responsibilities 1) Develop and maintain a Knowledge Transfer Plan for pre- and post- implementation. Plan must include phased hand-off, identify key knowledge, skills and abilities (KSAs) that Department staff must obtain and identify any foundational skill sets required to support the System (e.g. third-party tool use, programming language, etc.). 2) Conduct formal deliverable reviews / trainings for Department as appropriate. 3) Provide minutes of formal deliverable reviews. 4) Pre-implementation, assess and report to Department Project Manager on level of proficiency achieved by Department staff after each phase gate. 5) Post-implementation, assess and report monthly to Project Manager on level of Department proficiency and readiness to assume maintenance activities. 3.3.2 Department Knowledge Transfer Responsibilities 1) Identify key staff for knowledge transfer. 2) Ensure key staff is available to participate in reviews and trainings. 3) Obtain, at Departmental expense, any third-party tool training deemed required for assuming maintenance responsibilities for the new System (e.g. DB training, programming language training, etc.) Statement of Work 11

3.4 Disaster Preparedness / Disaster Recovery The Contractor shall work with the Department to become familiar with the Department s Disaster Recovery ( DR ) infrastructure. The Contractor shall then, within thirty (30) days of execution of the Contract, submit to the Department s Project Manager input to the Department s Disaster Preparedness Plan, including provisions for pre-disaster records protection and an alternative Recovery Plan that allows the Contractor to continue functioning in compliance with the Contract in the event of an actual emergency. The input to the Disaster Preparedness Plan shall also include Recovery Plans specific to the new System that details actions to be taken in the event of a natural disaster or disaster resulting from negligence, sabotage, mob action, etc. The Contractor should also be aware of the requirements of Attachment A Standard Contract, section 10.8 (Excusable Failure). 3.4.1 Contractor Disaster Preparedness / Recovery Responsibilities 1) Work with the Department to understand the existing DR infrastructure. 2) Prepare input to the Disaster Preparedness Plan. 3) Execute the project-specific Disaster Recovery Plan as required during the Contract term in collaboration with the Department. 3.4.2 Department Disaster Preparedness / Recovery Responsibilities 1) Review, edit or approve the Contractor s input to the Disaster Preparedness Plan. 2) Provide the Contractor with the existing Disaster Recovery Plan for the Department s assets. 3) Execute the Disaster Recovery Plan after the Contract term. Statement of Work 12

Section 4 Project Execution Performance Periods The Project shall consist of three performance periods the Design, Development and Implementation (DDI) Performance Period, the Services Transition (ST) Performance Period and the optional Operations Support (OS) Performance Period. The DDI Performance Period includes all activities from the time of contract execution to System Go-Live. The Services Transition Performance Period begins at System Go-Live and continues for a period of two (2) years post Go-Live. The optional Operations Support Performance Period begins at the conclusion of the Services Transition period and continues for two (2) years. The Operations Support Performance Period tasks may be renewed for a period of five (5) years after completion of the initial contract term. 4.1 DDI Performance Period The DDI Performance Period includes all of the activities necessary to implement the new System, including data migration, report development, installation, configuration, customization and training. The DDI Performance Period is broken into Phases. The following Phases and approach may be updated to be consistent with the Contractor s SDLC as agreed to by the Department during negotiations. Phase One: Phase Two: Project Initiation and Planning Requirements Elaboration. Phase Three: System Design. Create functional, business process, technical, interface and data conversion designs. Phase Four: application. Phase Five: Phase Six: System Development and Test. Install, Configure, Code and Unit Test Data Conversion. Populate new System with legacy data from multiple sources. Testing. Phase Seven: Go-Live and Training. Move into production environment with required training and documentation. 4.2 ST Performance Period This Performance Period includes the warranty period and oversees the transition of maintenance capabilities from the Contractor to the Department post-implementation over a two-year timeframe after Go-Live. Phase A: Phase B: Warranty and Documentation Services Transition Statement of Work 13

4.3 OS Performance Period If the Department determines it is in the best interest of the Department and the State to engage the Contractor to provide ongoing Operational Support, the optional OS Performance Period would begin at the end of the two-year Services Transition Performance Period. If the Department selects this option, the Department and the Contractor must negotiate to refine the statement of work and document a detailed service level agreement (SLA). The agreed statement of work and SLA will be incorporated into the Contract by Amendment. Statement of Work 14

Section 5 Design, Development and Implementation (DDI) Performance Period 5.1 DDI Performance Period Phase One: Initiation and Planning During Project Initiation and Planning, the project will kick off and the Department and the Contractor will work together to define how the project and all tasks will be managed, including the definition of the System Development Life Cycle (SDLC). The Department will create a Project Management Plan (PMP). The Contractor will provide input and updates to the PMP. The plan will follow industry standard practices for project management and will include at a minimum, the methodology and approach for the project. Within thirty (30) days of contract initiation, the Contractor will conduct a kick-off meeting in coordination with the Department. All of the Contractor s key staff will attend the kick off meeting. The purpose of the meeting will be to review the project plan (including scope management, schedule management, risk management, change management, quality management, communication management and resource management) and the various deliverables associated with the complete SDLC of the project, as well as establishing general project understanding among the Stakeholders. Such understanding should include, but is not limited to, the identification, roles and responsibilities of stakeholders, the SDLC methodology the Contractor will employ, the processes that will be used to review and provide input into processes and deliverables, critical success factors and the performance measures that will be used to evaluate the Project. The Contractor shall conduct one or more additional project initiation meetings if deemed necessary by the Department to meet the goals and objectives of this phase. The Contractor and the Department will implement the workspace and development environment requirements agreed to during negotiations. This Contractor is expected to perform the work under this Contract at the Department s facilities in Tallahassee, Florida. The Contractor and the Department s Project Manager will work together to prepare the work site, including obtaining necessary background checks on Contractor staff, setting up work spaces, establishing necessary credentials and accounts and establishing the necessary technical environment. The Department expects that all workspace and technical environments will be operational within 30 days of the Contract execution. The Department s project team and the Department Project Manager will work together to develop and refine the PMP according to the project approach and schedule. The PMP will include various subcomponents, some of which are the responsibility of the Contractor to provide. Subcomponents shall be due either prior to the kick-off meeting or at the end of the phase gate, according to the following matrix: Subcomponent Responsibility Of Due Prior To Project Charter Department Kickoff Project Schedule Contractor Kickoff SDLC Methodology Contractor, with input from Kickoff Department Budget Management Plan Department Kickoff Schedule Management Plan Department, with input from Kickoff Contractor Project Change Control Management Department Kickoff Statement of Work 15

Subcomponent Responsibility Of Due Prior To Plan (includes scope and schedule) Deliverable Expectation Document Department, with input from Kickoff (DED) and Deliverable Checklists Contractor Phase Gate Approval Criteria Department Kickoff Phase Gate / Deliverable Review and Department Kickoff Acceptance Process Disaster Preparedness Plan Contractor Kickoff (within 30 days of contract execution) Communication Management Plan Department, with input from Phase Gate Contractor Document Management Plan Department, with input from Phase Gate Contractor Quality Management Plan Contractor Phase Gate Risk / Issue Management Plan Contractor Phase Gate Knowledge Transfer Plan Contractor Phase Gate Human Resource Management and Contractor Phase Gate Staffing Plan Configuration Management Plan Contractor, with input from Phase Gate Department Information Security Plan Department, with input from Contractor Phase Gate 5.1.1 Contractor Initiate and Plan Responsibilities 1) Onboard Contractor staff, including required background checks. 2) Prepare PMP subcomponents according to the above schedule. 3) Provide input into planning deliverables that are the responsibility of the Department as needed. 4) Facilitate the Project kickoff meeting. 5) Capture minutes from the kickoff meeting and note any decisions or agreements. Minutes will be delivered for Department review and approval within three (3) business days of the kickoff. 6) Work with Department staff to establish workspace per the Contract. 7) Work with Department staff to establish the technical environment per the Contract. 8) Implement tool or database for tracking and reporting issues per the issue management plan. 5.1.2 Department Initiate and Plan Responsibilities 1) Obtain a MFMP Purchase Order to authorize Contractor work initiation. 2) Review, approve or reject all proposed Contractor staff. 3) Obtain results from Contractor and track successful completion of required background checks. 4) Prepare PMP subcomponents according to the above schedule. 5) Provide input into planning deliverables that are the responsibility of the Contractor as needed. Statement of Work 16

6) Supply workspace and configure required accounts and permissions as necessary for Contractor Project Team per the Contract. 7) Supply hardware, software and infrastructure for which the Department is responsible per the Contract. 8) Establish the SharePoint document repository for the Project. 9) Participate in the kickoff meeting. 10) Communicate with the Steering Committee and all key stakeholders regarding Project Initiation. 5.2 DDI Performance Period Phase Two: Requirements Elaboration The Contractor shall elaborate and refine the requirements provided in this ITN to generate specific, detailed requirements. The Contractor shall verify requirements with the Department and other stakeholders to ensure requirements are correct, understandable and testable. Additionally, the Contractor shall specifically evaluate the completeness of the requirements to ensure that all requirements have been captured and develop any additional requirements necessary to address the entire System. The Contractor shall generate detailed requirements by Joint Application Development (JAD) sessions or other Department-approved methodology proposed by the Contractor. The methodology must be consistent with the Contractor s approved SDLC. The Contractor s approach must acknowledge the time limitations of business users and facilitate and encourage the participation of all stakeholders (e.g., DRM, DIS, State Agencies) with efficient processes. The Contractor s methodology shall clearly indicate the process that will be followed during the requirements sessions. The Contractor will work with the Department s Project Manager to run requirements sessions and the Contractor shall prepare a clearly defined agenda at least three (3) business days prior to any meeting. The Contractor shall maintain minutes of the session and submit those to the Department for review and approval within three (3) business days of the meeting. In addition, the Contractor shall capture any modifications to the requirements according to the traceability requirements detailed below. The Contractor shall generate a Requirements Definition Document (RDD) to document the requirements. The RDD must include, but is not limited to, use cases, descriptions of System and user interfaces, communication interfaces, product functions, user characteristics, constraints and assumptions, external interface requirements, design constraints, and logical database requirements. Note that particular care must be applied to documenting requirements related to external system interfaces. External business applications such as FLAIR (the State s accounting system), FileNet (for Division document and image management) and CODA (the Department s cash receipts system) among others perform essential functions for the Division and must be supported. A listing of known external interfaces can be found in Attachment I. The Contractor shall document all interface requirements, including plans to migrate and deprecate business applications that will no longer be needed with the new System. The Contractor must maintain system requirements in a Requirements Management Tool. The Contractor shall provide this tool, subject to Department approval. The tool can be custom developed or industry standard, but must provide import/integration of standard tools such as Microsoft Excel, be web enabled and provide export/reporting features. The provided tool shall Statement of Work 17

include the ability to output a robust Requirements Traceability Matrix (RTM) to track the relationship between requirements and the developed System. The Contractor shall provide the Department with five (5) perpetual licenses for the tool for Department users if so requested. After completion of the Requirements Elaboration phase, requirements will be Baselined. Should additional requirements come to light during later phases of the DDI, the Contractor will utilize the same elaboration methodology employed in this phase. Additional requirements will be recorded in the requirements management tool and evaluated for inclusion through the Project s change management process. 5.2.1 Contractor Requirements Elaboration Responsibilities 1) Work with the Department to develop the DED for Phase Deliverables. 2) Provide a defined methodology to validate and maintain requirements including the process of how requirements validation sessions will be conducted. 3) Provide a proposed schedule of requirements validation sessions. 4) Ensure that the Contractor s functional and technical experts are on-site during the requirements validation sessions to address and answer any questions. 5) Provide an agenda for each requirements validation session a minimum of three (3) days prior to the meeting. 6) Conduct and document requirements validation sessions. 7) Manage time efficiently during the requirements session to ensure efficient use of the participants time. 8) Provide a report of each requirements validation session, including but not limited to: issues addressed, decisions made, and business rules linked to the requirements, workflows, forms, etc. to the Department s Project Manager within three (3) business days of the session. 9) Work with the Department to describe the business processes that will exist as a result of the proposed System implementation. 10) Validate needs through prototyping of functionality, navigation, and workflow. 11) Prepare the Requirements Definition Document, including interface descriptions. 12) Install and prepare the requirements management tool, as needed. 13) Provide training to Department staff in use of requirements management tool, as needed. 14) Enter requirements into the requirements management tool. 5.2.2 Department Requirements Elaboration Responsibilities 1) Work with the Contractor to develop the DED for Phase Deliverables. 2) Review and approve requirements elaboration schedule. Statement of Work 18

3) Participate in JAD or requirements elaboration meetings, with appropriate staff members to clearly describe required functionality and clarify needs to the Contractor. 4) Resolve any issues raised during requirements elaboration related to conflicting or unclear requirements. 5) Provide leadership in coordinating efforts with Department and partners for requirements elaboration. 6) Provide interpretation of legislative statutes and existing policies and procedures. 7) Identify business process owners with authority to provide input into requirements elaboration and process definition. 8) Work with the Contractor to describe new business processes that will result from use of the new System. 9) Review and approve all requirements deliverables, including meeting reports. 5.3 DDI Performance Period Phase Three: System Design 5.3.1 Design Phase Functional Design The Contractor shall generate a conceptual system design and provide a Functional Design Document (FDD) for the proposed System. The FDD shall include, but not be limited to, data models and process models and must include both graphic and narrative component for each form, report, interface, conversion and enhancement. All business rules and workflows must be documented in detail. The Contractor shall develop prototypes to depict System functionality including user interface screens that will be available in the final System. The Contractor shall update the requirements management tool to reflect the relationship between requirements and design elements. At the completion of the System development, the Contractor shall ensure that the FDD is updated to represent the complete as-built new System. After acceptance of the Design phase by the Department, the functional design will be Baselined. The Contractor shall report all issues after this point through the accepted issue management process. The Contractor will record the issues in the accepted issue-tracking tool. Any modifications to the Functional Design Document after Baselining will be evaluated through the Project s change management process agreed to in the PMP. 5.3.1.1 Contractor Functional Design Responsibilities 1) Work with the Department to develop the DED for Phase Deliverables. 2) Prepare the Functional Design Document. 3) Prototype forms and screens, menu navigation and business functions. 4) Facilitate walk-throughs of the System design with business process owners. 5) Capture results or modifications from walk-throughs and update documentation as needed. Summary meeting minutes must be produced within three (3) business days of meeting. Statement of Work 19

6) Update the Requirements Management Tool as needed to reflect the relationship between requirements and the design. 5.3.1.2 Department Functional Design Responsibilities 1) Work with the Contractor to develop the DED for Phase Deliverables. 2) Provide input into the functional design. 3) Participate in reviews and walk-throughs of the proposed System design and provide direction and feedback. 4) Review and approve all Design deliverables, including meeting reports. 5.3.2 Design Phase Business Process Re-engineering The Contractor shall work with stakeholders to create re-engineered, future state Department business processes to reflect the approved System design and shall document the new business processes. The future state business processes should enable stakeholders to effectively realize the full benefits of System implementation. All in-scope business processes shall be documented in a final To-Be Process Models document and provided to the Department for approval. 5.3.2.1 Contractor Business Process Re-engineering Responsibilities 1) Work with the Department to develop the DED for Phase Deliverables. 2) Create future state Department and Partner business processes to reflect the System as designed. 3) Create business process deliverables. 4) Prepare an Organizational Change Management Plan to prepare for the implementation of the new System, including the activities necessary for the Department and Partners to successfully adopt the new System while minimizing the impact to staff productivity and business performance. This Plan shall include staff roles and responsibilities. 5) Prepare a Staffing and Productivity Impact Analysis Report based on the model for the new System. 6) Facilitate walk-throughs of business process designs with business process owners. 7) Capture results or modifications from walk-throughs and update documentation as needed. Summary meeting minutes must be produced within three (3) business days of meeting. 5.3.2.2 Department Business Process Re-engineering Responsibilities 1) Work with the Contractor to develop the DED for Phase Deliverables. 2) Participate in process design sessions. Statement of Work 20

3) Provide interpretation of applicable statutes, rules, Department and Partner policies and guidance documents. 4) Develop any internal policy changes required to support new business processes. 5) Participate in reviews and walk-throughs of proposed business processes and provide direction and feedback. 6) Review and approve all Design deliverables, including meeting reports. 5.3.3 Design Phase Technical Design The Department will work closely with the Contractor during the Technical Design. The Department reserves the right to directly participate in and contribute to tasks required during the Technical Design, in consultation with the Contractor. The Contractor will specify software languages and tools that are widely available in the market. The Contractor shall generate a Technical Design Document (TDD) with the final requirements for the System, including a configuration plan, infrastructure plan and physical and logical security plan. The Contractor shall update the Requirements Management Tool to reflect the relationship between requirements and design elements. The Contractor shall conduct informal reviews of the design as it is developed and provide the Department with access to informal review information and documentation. The Contractor shall develop its configuration management plan to include descriptions of the software configuration and customizations necessary to meet functional and non-functional requirements and interfaces. The Contractor s infrastructure plan must include a list of the hardware, software and network elements necessary to support the new System through implementation, production and ongoing support and maintenance. The infrastructure list shall include applicable Commercial- Off-The-Shelf (COTS) software, operating systems, relational database management systems, and other supporting software. The Contractor shall clearly identify all the proposed custom developed software. The Contractor shall provide an explanation of the associated benefits and risks for all recommended custom developed software. The Contractor will then work with DRM and DIS staff to evaluate existing resources to determine what hardware or software can be reused for the new System and evaluate alternatives for the System architecture. The Department s physical and logical Security Plan template must be included in the TDD. The Contractor will work with the DIS Information Security Office to complete the plan according to the Department s Information Systems Development Methodology (ISDM). The plan shall include, but is not limited to: resource access enforcement, separation of duties, session management, remote or mobile access policies, logging and monitoring, authentication and data risk assessment. The Department reserves the right to purchase any of the items specified in the TDD from another source instead of acquiring them from the Contractor if it is in the best interest of the Department. Statement of Work 21

After acceptance of the System Design phase by the Department, the Technical Design will be Baselined. This must occur prior to development beginning. The Contractor shall report all issues after this point through the accepted issue management process. The Contractor will record the issues in the accepted issue-tracking tool. Any modifications to the Technical Design Document after baselining will be evaluated through the Project s change management process. The FDD and the TDD, once Baselined, will comprise the agreement between the Department and the Contractor regarding the functionality and operation of the System. 5.3.3.1 Contractor Technical Design Responsibilities 1) Work with the Department to develop the DED for Phase Deliverables. 2) Collaborate with Department staff to finalize the technical design, including the database structure, load management, and storage and hardware requirements. 3) Work with Department staff to evaluate existing assets to determine what can be used to support the new System. 4) Assist the Department in completing the physical / logical Security Plan template. 5) Prepare the Technical Design Document. 6) Facilitate walk-throughs of the System design with technical Subject Matter Experts (SMEs). 7) Capture results or modifications from walk-throughs and update documentation as needed. Summary meeting minutes must be produced within three (3) business days of meeting. 8) Update the Requirements Management Tool as needed to reflect the relationship between requirements and the design. 5.3.3.2 Department Technical Design Responsibilities 1) Work with the Contractor to develop the DED for Phase Deliverables. 2) Collaborate with the Contractor on the technical design, particularly with regards to existing environments, Department standards, security requirements, storage, DR and network capabilities, etc. 3) Participate in reviews and walk-throughs of the proposed System design and provide direction and feedback. 4) Review and approve all Design deliverables, including meeting reports. 5) Procure necessary hardware or software. 5.3.4 Design Phase Interface Design A critical Division requirement is the seamless integration or interface of the proposed System with various external systems. A list of existing interfaces can be found in Attachment I. Some of these systems will be retired after implementation of the new System, as their functions will now be handled by the new System (for example, the Division currently uses a Microsoft Access application to issue and track invoices). Other systems will have to be modified to support an Statement of Work 22

electronic data interchange (EDI) with the new System (for example, the Department s cash receipts system, CODA, will likely need to be modified to support a live feed of data from the new system), or will remain as they are, but the new system must automate the now-manual data exchange and apply appropriate business logic to responses provided by the external system. Finally, some external business applications will need to be integrated with the new System for seamless user interaction (for example, FileNet or the Medical Case Manager s (MCM s) management system). The Department will work closely with the Contractor during the Interface Design. The Department reserves the right to directly participate in and contribute to tasks required during the Interface Design, in consultation with the Contractor. The Contractor shall collaborate with the Department to define and document all interfaces with external business applications. The Contractor shall generate Interface Definitions for each of the external business applications that will be supported, describing each interface in detail, specifying purpose, format, content, frequency, and transaction processing. Each EDI-based interface must include a data map for incoming transactions that describes how incoming data is transformed, how appropriate business rules are applied and how data is mapped to the new System s database. Each EDI-based interface must also include an export file definition, where needed, for outgoing data feeds. The export file definition must describe the field names, data type, length, allowable value limits, delimiter and any other data required by the target external business application. The Contractor shall manage and facilitate all meetings on interfaces, prepare meeting minutes, and track interface coordination status in the status meetings. The Contractor shall update the requirements management tool to reflect the relationship between requirements and design elements. After acceptance of the System Design Phase by the Department, the Interface Design will be Baselined. The Contractor shall report all issues after this point through the accepted issue management process. The Contractor will record the issues in the accepted issue-tracking tool. Any modifications to the Interface Definitions or design after Baselining will be evaluated through the Project s change management process, agreed to in the PMP. 5.3.4.1 Contractor Interface Design Responsibilities 1) Work with the Department to develop the DED for Phase Deliverables. 2) Work with external business system owners / developers to define the functional and technical design for interfacing with the new System. The Contractor will propose innovative Systems where appropriate to achieve the Department s objectives of eliminating manual effort to the degree possible and increasing data accuracy and timeliness. 3) Facilitate design meetings, prepare agendas and capture minutes of each interface session. Minutes, including issues addressed and decisions made, shall be submitted to the Department s Project Manager within three (3) business days of meeting. 4) Prepare the Interface Definitions. Statement of Work 23

5) Update the TDD as needed for additional hardware or software necessary to support integration or EDI. 6) Facilitate walk-throughs of the interface designs with functional and technical SMEs. 7) Capture results or modifications from walk-throughs and update documentation as needed. Summary meeting minutes must be produced within three (3) business days of meeting. 8) Update the Requirements Management Tool as needed to reflect the relationship between requirements and the design. 5.3.4.2 Department Interface Design Responsibilities 1) Work with the Contractor to develop the DED for Phase Deliverables. 2) Identify application owners for each external business application. 3) Facilitate and coordinate with application owners to be available for Contractor meetings. 4) Obtain access / cooperation of any external (non Departmental) entity required for interface design (e.g. MCM Vendor). 5) Participate as needed in design meetings. 6) Work with Contractor to understand business rules or transformations that will have to be applied to external business system responses. 7) Participate in reviews and walk-throughs of the proposed System design and provide direction and feedback. 8) Review and approve all Design deliverables, including meeting reports. 5.3.5 Design Phase Data Conversion Design STARS contains approximately 40 years of historical policy and claims data. In addition to STARS, DRM data exists in spreadsheets and databases where the existing system lacked the ability to store or process the data. The Department has a separate project underway to extract historical data from STARS, scrub and define it. The Department has not yet decided how much of the historical data will be brought into the new System. The Department will work closely with the Contractor during the Data Conversion Design. The Department, in consultation with the Contractor, reserves the right to directly participate in and contribute to tasks required during the Data Conversion Design. The Department will provide the Contractor with a data definition file. The Contractor will map that data to the new System s data model. The Contractor shall create a Data Conversion Plan that defines how the data will be imported, transformed and tested for accuracy postconversion. The Data Conversion Plan will be incorporated into the Contractor s Go-Live Plan. The Data Conversion Plan should also address how historical data can be archived and retrieved according to the System s established record management features. Statement of Work 24