210000001421.pdf

STATE OF MICHIGAN

ENTERPRISE PROCUREMENT

Department of Technology, Management, and Budget 320 S. Walnut Street 2nd Floor Lansing, MI 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

Human Centered Design (HCD) Services – Prequalification Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

September 1, 2021 August 31, 2026 5 - 12 Months August 31, 2026

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1200 19th Street NW, Suite 100

Washington DC 20036

Jessica Wrenn

202-905-1173 jessica_wrenn@mckinsey.com

VS0065227

McKinsey & Company, Inc. Washington D.C.

C O

N

TR

A C

TO

R

517-243-8710

Millerh1@michigan.gov

Adam Ashley

517-855-1376

DTMB

Holly Grandy-Miller DTMB ashleya2@michigan.gov

C ontract

A dm inistrator Program M anagerSTA

TE

N/ANET 45

Change Notice Number 11

Contract Number MA210000001421 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$22,707,700.00 $1,527,000.00 $24,234,700.00

DESCRIPTION

Effective March 21, 2025, the attached Schedule A - Statement of Work and $1,527,000.00 are hereby added to the Contract for UIA.

All other terms, conditions, specifications, and pricing remain the same. Per contractor and agency agreement, DTMB Central Procurement approval, and State Administrative Board approval on 3/11/25.

CN 11: Schedule A – Statement of Work

1.2 Scope of Work

Contractor will support the States transformation efforts through the provision of deliverables, services, staff, and otherwise do all things necessary for, or incidental to, the performance of work, as set forth below.

In order to embed an HCD mindset within the State, a broad range of coordinated, parallel workstreams are included. The agency has prioritized workstreams having significant impact to agency operations and resulting customer experiences.

To strengthen the performance of the State, the agency also seeks to invest in a deeper understanding of the experiences of individuals seeking career navigation support, of which the State is a part. A holistic human-centered design approach to delivering the States takes into consideration the full end-to-end experience of individuals who are seeking assistance from the agency. Building on investments made to modernize the State system and performance, the agency can continue progress towards meeting the needs of residents by developing a more detailed understanding of the journeys of key individuals interacting with the State and their experiences, both narrowly within the State process and as part of an overall career navigation system. To accomplish this, the agency can expand on its past work across the HCD system in each of its key workstreams.

These workstreams are:

1.3 Human-Centric Governance

Objective: Design and establish an effective agency governance system that focuses on aligning strategy, value, and stakeholders instead of exclusively concentrating on budget, scheduling, and issue response.

Deliverables

a. Develop an aligned-upon definition of “career navigation” informed by human- centered design to establish alignment on a strategy for the agency and to guide future efforts across the State.

b. Map existing career navigation efforts and linkages among stakeholders using human-centered design to understand collaboration, service overlaps, and opportunities for resource connection.

1.4 Human-Centric Decision Making

Objective: Embed an HCD approach in all governing decision-making processes and evaluation criteria (e.g. technical requirements, prioritization, securing talent) to enable consistent customer experience across multiple services, products, and projects.

Deliverables

a. Engage cross-functional teams through human-centered design to review and refine future state journey maps, including key intervention points.

1.5 Leadership Coaching

Objective: Define HCD vision for agency and provide executive leadership and organizational coaching on transformation strategies and execution.

Deliverables

a. Hold workshops with key State of Michigan leaders anchored in human-centered design to review findings from baselines and journey maps and ideate potential future state vision.

1.6 Human-Centric Change Experience

Objective: Harness the perspective and experience of all team members to design, implement, and maintain change.

Deliverables

a. Conduct interviews and focus groups with users, employers, and key MI Works! and other system leaders using human-centered design to understand goals, existing challenges, and potential opportunity areas.

1.7 Human-Centric Organization

Objective: Design organization and operational activities around the needs and goals of the agency’s customers.

Deliverables

a. Define 3-5 prioritized resident archetypes (e.g., workers age 55+, youth, workers with disabilities, underemployed).

b. Use a human-centered design approach to map current state jobseeker journeys along key stages, identifying pain points and common drop-off points.

c. Design future state “customer” journey for 3-5 resident archetypes using human- centered design principles, ensuring alignment with specific pain points identified along the user journey.

d. Prioritized initiatives for career navigation, including “quick wins,” immediate next steps, business cases, and high-level implementation plans for 2-3 prioritized initiatives.

1.8 Customer Experience and Satisfaction Monitoring and Interventions Objective: Leverage qualitative and quantitative customer feedback to identify and solve problems in a way that prioritizes customer needs.

a. Gather insights on performance of career navigation efforts through human- centered design surveys and interviews with users, employers, and broad MI workforce stakeholders.

b. Launch “voice of the customer” data collection using human-centered design to evaluate satisfaction with key elements of the career navigation journey, identify pain points, and understand career navigation needs.

1.9 Data Analytics

Objective: Use data and analytic techniques to evaluate the effectiveness of HCD-informed organizational infrastructure transformations for both internal and external stakeholders.

Deliverables

a. Conduct a quantitative baseline assessment of key career navigation supports, including of MI Works! Performance.

Department of Technology, Management, and Budget 320 S. Walnut Street 2nd Floor Lansing, MI 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

Human Centered Design (HCD) Services – Prequalification Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

September 1, 2021 August 31, 2026 5 - 12 Months August 31, 2026

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1200 19th Street NW, Suite 100

Washington DC 20036

Jessica Wrenn

202-905-1173 jessica_wrenn@mckinsey.com

VS0065227

McKinsey & Company, Inc. Washington D.C.

C O

N

TR

A C

TO

R

517-243-8710

Millerh1@michigan.gov

Adam Ashley

5178551376

DTMB

Holly Grandy-Miller DTMB ashleya2@michigan.gov

C ontract

A dm inistrator Program M anagerSTA

TE

N/ANET 45

Change Notice Number 10

Contract Number MA210000001421 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$22,312,500.00 $395,200.00 $22,707,700.00

DESCRIPTION

Effective January 10th, 2025, this contract will be increased by $395,200.00

Conditions, specifications, and pricing remain the same. Per contractor and agency agreement, DTMB Central Procurement approval, and State Administrative Board approval on 1/7/2025.

Michigan.gov/MiProcurement

Version 5/31/2023 Page 1 of 7

SCHEDULE A – STATEMENT OF WORK

CONTRACT ACTIVITIES

Request for Proposal No. 230000002379

HCD Business Strategy Stewardship for UIA Modernization Project

Contractor will support UIA transformation efforts through the provision of deliverables, services, staff, and otherwise do all things necessary for, or incidental to, the performance of work, as set forth below.

In order to embed an HCD mindset within the UIA, a broad range of coordinated, parallel workstreams are included. The agency has prioritized workstreams having significant impact to agency operations and resulting customer experiences. In particular, agency earlier requested the HCD business strategy stewardship vendor ("Contractor") to re-prioritize its efforts to identify HCD design opportunities in the ongoing UIA technology modernization effort (Change Notice 5). Since this re-prioritization, Contractor has supported agency to identify and capture multiple HCD design opportunities by attending and supporting the Joint Application Design (JAD) sessions, reviewing and highlighting potential opportunities in the design use case documents, supporting UIA leadership and staff to develop effective HCD governance and decision-making regarding the system modernization project, etc. UIA found such support helpful in continuously improving agency’s system modernization project and modified the scope of work to extend the support until Nov 01, 2024 (Change Notice 9).

Given the recent developments in the UIA technology modernization effort and anticipated HCD support required, UIA seeks to modify the current scope of work until Mar 31, 2025 (Change Notice 10).

Objective: Design and establish an effective agency governance system that focuses on aligning strategy, value, and stakeholders instead of exclusively concentrating on budget, scheduling, and issue response.

Deliverables completed to-date:

a. Design effective human-centric governance model.

b. Design underpinning governance processes, including decision-making, escalation, change requests, risks and issues management.

c. Provide human-first analytics and expert support to develop independent perspectives and analysis of business and customer impact implications for critical decisions.

Version 5/31/2023 Page 2 of 7

d. Provide subject-matter expertise to pressure technology modernization test plans, select design artifacts, and approaches.

e. Provide bi-weekly leadership updates on technology modernization design

f. Provide high-level summary report of holistic design review of R1 and R2 technology modernization modules against future state aspirations and priorities

g. Provide HCD subject-matter expertise to pressure test technology modernization plans, system development, data conversion, User Acceptance

Testing (UAT) and System Integration Testing (SIT), and organizational change management associated with UIA’s technology modernization program

h. Provide HCD subject-matter expertise and independent perspectives on SIT testing progress, focusing on identifying potential HCD testing risks (e.g., defects, blocked interfaces) and provide potential suggestions to UIA on potential paths to remediate risks

i. Establish and run weekly or bi-weekly discussion sessions with UIA leadership to identify and align on potential ad-hoc HCD intervention priorities

j. Provide bi-weekly leadership updates on HCD opportunities in overall technology modernization project

k. Establish and conduct regular (e.g., weekly) preparation and prioritization check-ins with UIA’s system modernization Project Manager to discuss and align on HCD priorities

Conduct ad-hoc HCD sprints (e.g., monthly), as mutually agreed, to support

UIA leadership and address evolving HCD priorities

l. Provide overview of key HCD gaps and findings related to revised R1 SIT testing plan (dependent on revised R1 SIT plan being available from the SI by

October 15, 2024)

m. Provide summary of key HCD risks and issues, along with suggested mitigation plan

New deliverables for this change notice:

n. Conduct one targeted deep-dive on specific topic(s) that will be mutually agreed upon beforehand with UIA leadership; potential deep-dives include quarterly MiUI health status check and reports across workstreams, workstream specific deep-dives (e.g., HCD employer / TPA dashboards) etc.

1.4 Human-Centric Decision Making

Version 5/31/2023 Page 3 of 7

Objective: Embed an HCD approach in all governing decision-making processes and evaluation criteria (e.g. technical requirements, prioritization, securing talent)

a. Review and provide independent human-centered perspectives on all critical aspects of agency decision-making structural designs impacting downstream service delivery.

b. Identify and highlight potential gaps in project objectives and strategy and develop opportunities to narrow the gaps.

c. Provide strategic consultation to support the agency through assessments and pressure-testing activities.

d. Conduct analysis for implementation options as needed to meet customer needs.

e. Support program planning, sequencing, and prioritization decision making

f. Develop design priorities for agency’s future state technology

g. Develop HCD design principles to guide the technology modernization’s Joint

Application Design (JAD) discussions and future state design

h. Develop list of potential design opportunities from a review of the interim JAD design decisions

i. Develop potential approach to capture technology modernization design opportunities

j. Develop simple 1-page summary for select technology modernization design changes and customizations that may fall outside of existing requirements

k. Conduct high level HCD review of employer contributions- and benefits-related design against future state HCD aspirations and support agency to reflect potential HCD opportunities as part of final approval of design

l. Review System Integrator’s revised development plan and provide independent expert perspectives for UIA leadership, with focus on implications for HCD (e.g., revised timeline’s ability to incorporate / respond to

UIA’s feedback HCD opportunities)

m. Identify list of highest priority data conversion gaps and implications (e.g., list of missing fields, cross-functional issues from design)

n. Provide high-level summary of HCD quality feedback from SIT testing

o. Identify potential HCD gaps against industry accepted leading practices for

UAT and SIT test prep / planning & execution (e.g., test plan review, script development progress, timeline allotted, entrance / exit criteria review)

p. Support decision making and internal alignment within UIA on key data conversion related topics to optimize Human-Centered customer experience

(e.g., # of years of historical data needed)

Version 5/31/2023 Page 4 of 7

q. Track incorporation of HCD opportunities (identified during the design phase) within the development / build sprints

r. Review and provide HCD expert perspectives on System Integrator’s cutover plan, run book, and the legacy system decommission plan, with focus on

HCD impact on claimants, employer/TPAs, staff (dependent on System

Integrator having such plans in sufficient detail by October 1, 2024)

s. Provide summary of HCD findings related to R1 / R2 go-live re-planning based on experience from other states

t. Provide high-level summary of R2 HCD readiness assessment across each workstream (e.g., design, build, testing)

1.5 Leadership Coaching

Objective: Define HCD vision for agency and provide executive leadership and organizational coaching on transformation strategies and execution.

a. Serve as human-centric strategy advisor to agency director and leadership team.

b. Facilitate HCD aspiration setting workshop for agency.

c. Design and facilitate HCD bootcamps for JAD attendees to share and align on desired future state design priorities and their roles and responsibilities

d. For HCD design opportunities that result in change requests (CRs) from the

System Integrator, develop summary 1-page business cases for HCD design changes and customizations for UIA leadership review and prioritization

e. Design and provide targeted coaching (e.g., UAT bootcamp) for UIA staff who are likely to serve as UAT testers to build HCD mindsets

Deliverables to be continued as part of the change notice:

d. Facilitate agency leadership discussions for identified HCD priorities through

1x-a-month leadership workshop focused on specific topics that will be mutually agreed upon with UIA leadership; potential topics include facilitation of resolution for “big rocks” across workstreams (e.g., iSIT readiness, testing plan), UIA staff capability building (e.g., SIT bootcamp) etc.

e. Coach UIA leadership on weekly HCD priorities and action items for key technology modernization governance meetings (e.g., PLG, steering committee) through ongoing leadership counseling (e.g., weekly coaching with 2-3 UIA leaders, facilitation / targeted support for key decisions)

1.6 Human-Centric Change Experience

Version 5/31/2023 Page 5 of 7

Objective: Harness the perspective and experience of all team members to design, implement, and maintain change.

a. Conduct organizational assessments.

b. Design intervention strategies to meet business objectives.

c. Design human-centric organizational change management approach.

d. Design pilot projects across frontline staff.

e. Design a Joint Application Design (JAD) coverage plan using mix of agency’s assigned HCD champions and HCD teams

f. Prepare for and facilitate weekly JAD preparation sessions for UIA staff to emphasize HCD topics in technology modernization design

g. Attend priority JAD sessions and provide realtime coaching to UIA staff to push aspirations and apply HCD principles

h. Attend select mock data conversion sessions with UIA team members and share targeted HCD feedback and input for UIA consideration

i. Review and assess HCD impact of R1 and R2 data conversion plans and provide suggestions to improve stakeholder experience (i.e., employers /

TPAs, claimants, UIA staff)

j. Support UIA to conduct 5-10 HCD employer and TPA interviews and focus groups to identify HCD needs and priorities

k. Build high-level employer and TPA stakeholder mapping to determine level of

HCD changes for each impacted stakeholder group through UIA system modernization

l. Develop employer and TPA communications roadmap and calendar for key stakeholders (e.g., SMBs, large employers, TPAs) for UIA to execute

m. Deliver a high-level TPA and employer HCD change experience assessment by type of change

n. Develop draft employer & TPA communication messages (e.g., number and timing of comms, key talking points) to address identified HCD change management needs

1.7 Human-Centric Organization

Objective: Design organization and operational activities around the needs and goals of the agency’s customers.

a. Assessment of organizational effectiveness and alignment with transformational customer journeys, business processes, and modernized technology to inform organizational and operational models to streamline operations and enhance customer experience.

Version 5/31/2023 Page 6 of 7

1.8 Customer Experience and Satisfaction Monitoring and Interventions

a. Designing customer feedback, satisfaction, and expectations management.

b. Develop intervention strategies to enhance customer experience and business outcome measurement.

1.9 Data Analytics

Objective: Use data and analytic techniques to evaluate the effectiveness of HCD-informed organizational infrastructure transformations for both internal and external stakeholders.

a. Analyze and benchmark organizational survey results

b. Provide analytics support for select prioritized interventions for agency technology modernization

c. Continue to provide analytics support for select prioritized interventions for agency technology modernization (e.g., potential HCD impact assessment) or other supporting analyses for the Project Manager as mutually agreed

3. Service Requirements

3.3 Assumptions and Disclosures

The above revised scope of work was designed with the following assumptions, and is subject to discussion and revision if there are material changes to UIA’s system integration timeline and/or priorities:

• Contractor will primarily focus its HCD efforts on supporting the R1 (tax) go-live, with ad-hoc support for R2 benefits go-live, as needed

• Contractor will be provided access to System Integrator’s interim work-in-progress deliverables

• Contractor will provide executive counseling support for UIA leadership team, but will not manage or be directly accountable for System Integrator tasks

• Topics for monthly leadership workshops and targeted deep-dive will be mutually agreed upon with UIA leadership beforehand

Version 5/31/2023 Page 7 of 7

6. Pricing

6.1 Price Term

Pricing is firm for the entire length of the Contract.

Requirement Total Billing Amount for CN

3, CN 5, CN6

and CN9 (completed)

Additional Billing Amount for updated scope

Total Billing Amount

SOW 1.3 Human-Centric Governance

3,405,000 148,200 3,553,200

SOW 1.4 Human-Centric Decision Making

4,945,000 4,945,000

SOW 1.5 Leadership Coaching 1,750,000 247,000 1,997,000

SOW 1.6 Human-Centric Change Experience 3,440,000 3,440,000

SOW 1.7 Human-Centric Organization

180,000 180,000

SOW 1.8 Customer Experience and Satisfaction Monitoring and Interventions

245,000 245,000

SOW 1.9 Data Analytics 500,000 500,000

Total $12,750,000 $395,200 $14,860,200

Department of Technology, Management, and Budget 320 S. Walnut Street 2nd Floor Lansing, MI 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

Human Centered Design (HCD) Services – Prequalification Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

September 1, 2021 August 31, 2026 5 - 12 Months August 31, 2026

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1200 19th Street NW, Suite 100

Washington DC 20036

Jessica Wrenn

202-905-1173 jessica_wrenn@mckinsey.com

VS0065227

McKinsey & Company, Inc. Washington D.C.

C O

N

TR

A C

TO

R

517-243-8710

Millerh1@michigan.gov

Adam Ashley

517-855-1376

DTMB

Holly Grandy-Miller DTMB ashleya2@michigan.gov

C ontract

A dm inistrator Program M anagerSTA

TE

N/ANET 45

Change Notice Number 9

Contract Number MA210000001421 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$20,597,500.00 $1,715,000.00 $22,312,500.00

DESCRIPTION

Effective 10/8/2024, the attached Schedule A - Statement of Work and $1,715,000 are added to the Contract for the continuation of the UIA Modernization Project established in CN 3.

agreement, DTMB Central Procurement approval, and State Administrative Board approval on 10/8/24.

CN 9: SCHEDULE A – STATEMENT OF WORK

CONTRACT ACTIVITIES

services, staff, and otherwise do all things necessary for, or incidental to, the performance of work, as set forth below.

In order to embed an HCD mindset within the UIA, a broad range of coordinated, significant impact to agency operations and resulting customer experiences. In particular, agency earlier requested the HCD business strategy stewardship vendor ("Contractor") to re-prioritize its efforts to identify HCD design opportunities in the ongoing UIA technology modernization effort (Change Notice 5). Since this re-prioritization, Contractor has supported agency to identify and capture multiple HCD design opportunities by attending and supporting the Joint Application Design (JAD) sessions, reviewing and highlighting potential opportunities in the design use case documents, supporting UIA leadership and staff to develop effective HCD governance and decision-making regarding the system modernization project, etc. UIA found such support helpful in continuously improving agency’s system modernization project and modified the scope of work to extend the support until Sep 13, 2024 (Change Notice 6).

Given the recent developments in the UIA technology modernization effort and anticipated HCD support required, UIA seeks to modify the current scope of work until November 1, 2024.

b. Design underpinning governance processes, including decision-making, escalation, change requests, risks and issues management.

c. Provide human-first analytics and expert support to develop independent

d. Provide subject-matter expertise to pressure technology modernization test plans, select design artifacts, and approaches.

e. Provide bi-weekly leadership updates on technology modernization design

f. Provide high-level summary report of holistic design review of R1 and R2 technology modernization modules against future state aspirations and priorities

g. Provide HCD subject-matter expertise to pressure test technology modernization plans, system development, data conversion, User Acceptance Testing (UAT) and System Integration Testing (SIT), and organizational change management associated with UIA’s technology modernization program

h. Provide HCD subject-matter expertise and independent perspectives on SIT testing progress, focusing on identifying potential HCD testing risks (e.g., defects, blocked interfaces) and provide potential suggestions to UIA on potential paths to remediate risks

Deliverables to be continued as part of this change notice:

i. Establish and run weekly or bi-weekly discussion sessions with UIA leadership to identify and align on potential ad-hoc HCD intervention priorities

j. Provide bi-weekly leadership updates on HCD opportunities in overall technology modernization project

k. Establish and conduct regular (e.g., weekly) preparation and prioritization check-ins with UIA’s system modernization Project Manager to discuss and align on HCD priorities

l. Conduct ad-hoc HCD sprints (e.g., monthly), as mutually agreed, to support UIA leadership and address evolving HCD priorities

New deliverables for this Change Notice:

m. Provide overview of key HCD gaps and findings related to revised R1 SIT testing plan (dependent on revised R1 SIT plan being available from the SI by October 15, 2024)

n. Provide summary of key HCD risks and issues, along with suggested mitigation plan

Objective: Embed an HCD approach in all governing decision-making processes and evaluation criteria (e.g. technical requirements, prioritization, securing talent) aspects of agency decision-making structural designs impacting downstream service delivery.

b. Identify and highlight potential gaps in project objectives and strategy and develop opportunities to narrow the gaps.

c. Provide strategic consultation to support the agency through assessments and pressure-testing activities.

d. Conduct analysis for implementation options as needed to meet customer needs.

e. Support program planning, sequencing, and prioritization decision making

f. Develop design priorities for agency’s future state technology

g. Develop HCD design principles to guide the technology modernization’s Joint

Application Design (JAD) discussions and future state design

h. Develop list of potential design opportunities from a review of the interim JAD design decisions

i. Develop potential approach to capture technology modernization design opportunities

j. Develop simple 1-page summary for select technology modernization design changes and customizations that may fall outside of existing requirements

k. Conduct high level HCD review of employer contributions- and benefits-related design against future state HCD aspirations and support agency to reflect potential HCD opportunities as part of final approval of design

l. Review System Integrator’s revised development plan and provide independent expert perspectives for UIA leadership, with focus on implications for HCD (e.g., revised timeline’s ability to incorporate / respond to UIA’s feedback HCD opportunities)

m. Identify list of highest priority data conversion gaps and implications (e.g., list of missing fields, cross-functional issues from design)

n. Provide high-level summary of HCD quality feedback from SIT testing

o. Identify potential HCD gaps against industry accepted leading practices for

UAT and SIT test prep / planning & execution (e.g., test plan review, script development progress, timeline allotted, entrance / exit criteria review)

Deliverables to be continued as part of this change notice:

k. Support decision making and internal alignment within UIA on key data conversion related topics to optimize Human-Centered customer experience (e.g., # of years of historical data needed)

l. Track incorporation of HCD opportunities (identified during the design phase) within the development / build sprints

m. Review and provide HCD expert perspectives on System Integrator’s cutover plan, run book, and the legacy system decommission plan, with focus on HCD impact on claimants, employer/TPAs, staff (dependent on System Integrator having such plans in sufficient detail by October 1, 2024)

New deliverables for this Change Notice:

o. Provide summary of HCD findings related to R1 / R2 go-live re-planning based on experience from other states

p. Provide high-level summary of R2 HCD readiness assessment across each workstream (e.g., design, build, testing)

Deliverables completed to-date:

a. Serve as human-centric strategy advisor to agency director and leadership team.

b. Facilitate HCD aspiration setting workshop for agency.

c. Design and facilitate HCD bootcamps for JAD attendees to share and align on desired future state design priorities and their roles and responsibilities

d. For HCD design opportunities that result in change requests (CRs) from the

System Integrator, develop summary 1-page business cases for HCD design changes and customizations for UIA leadership review and prioritization

e. Design and provide targeted coaching (e.g., UAT bootcamp) for UIA staff who are likely to serve as UAT testers to build HCD mindsets

Deliverables to be continued as part of the change notice:

d. Facilitate agency leadership discussions for identified HCD priorities

e. Coach UIA leadership and Project Manager on weekly HCD priorities and action items for key technology modernization governance meetings (e.g., PLG, steering committee)

b. Design intervention strategies to meet business objectives.

c. Design human-centric organizational change management approach.

d. Design pilot projects across frontline staff.

e. Design a Joint Application Design (JAD) coverage plan using mix of agency’s assigned HCD champions and HCD teams

f. Prepare for and facilitate weekly JAD preparation sessions for UIA staff to emphasize HCD topics in technology modernization design

g. Attend priority JAD sessions and provide realtime coaching to UIA staff to push aspirations and apply HCD principles

h. Attend select mock data conversion sessions with UIA team members and share targeted HCD feedback and input for UIA consideration

i. Review and assess HCD impact of R1 and R2 data conversion plans and provide suggestions to improve stakeholder experience (i.e., employers / TPAs, claimants, UIA staff)

j. Support UIA to conduct 5-10 HCD employer and TPA interviews and focus groups to identify HCD needs and priorities

k. Build high-level employer and TPA stakeholder mapping to determine level of HCD changes for each impacted stakeholder group through UIA system modernization

l. Develop employer and TPA communications roadmap and calendar for key stakeholders (e.g., SMBs, large employers, TPAs) for UIA to execute

m. Deliver a high-level TPA and employer HCD change experience assessment by type of change

n. Develop draft employer & TPA communication messages (e.g., number and timing of comms, key talking points) to address identified HCD change

Deliverables completed to-date:

a. Assessment of organizational effectiveness and alignment with transformational customer journeys, business processes, and modernized technology to inform organizational and operational models to streamline

b. Develop intervention strategies to enhance customer experience and business outcome measurement.

1.9 Data Analytics

Objective: Use data and analytic techniques to evaluate the effectiveness of HCD-informed organizational infrastructure transformations for both internal and external stakeholders.

Deliverables completed to-date:

a. Analyze and benchmark organizational survey results

b. Provide analytics support for select prioritized interventions for agency technology modernization

Deliverables to be continued as part of this change notice:

c. Continue to provide analytics support for select prioritized interventions for

The above revised scope of work was designed with the following assumptions, and is subject to discussion and revision if there are material changes to UIA’s system integration timeline and/or priorities:

• Contractor will primarily focus its HCD efforts on supporting the R1 go-live, with a high-level assessment of R2 go-live readiness. UIA reserves the option to re-direct Contractor’s resources more fully towards R2 go-live needs based on urgency and impact following discussions with the Contractor

• Contractor will be provided access to System Integrator’s interim work-in-progress deliverables

• Contractor will work directly with the UIA’s project manager to gather information and conduct reviews as needed, but will not manage or be directly accountable for System Integrator tasks

• Contractor will work closely with and support the UIA’s project manager, but will not manage or be accountable for UIA’s system modernization governance processes

6. Pricing

6.1 Price Term

Pricing is firm for the entire length of the Contract.

Requirement Total Billing Amount for CN 3, CN 5 and

CN6

(completed)

Additional Billing Amount for updated scope

Total Billing Amount

SOW 1.3 Human-Centric Governance $2,845,000 $560,000 $3,405,000

SOW 1.4 Human-Centric Decision Making $4,255,000 $690,000 $4,945,000

SOW 1.5 Leadership Coaching $1,355,000 $395,000 $1,750,000

SOW 1.6 Human-Centric Change Experience $3,440,000

$3,440,000

SOW 1.7 Human-Centric Organization $180,000 $180,000

SOW 1.8 Customer Experience and Satisfaction Monitoring and Interventions

$245,000

$245,000

SOW 1.9 Data Analytics $430,000 $70,000 $500,000 Total $12,750,000 $1,715,000 $14,465,000

Department of Technology, Management, and Budget 320 S. Walnut Street 2nd Floor Lansing, MI 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

Human Centered Design (HCD) Services – Prequalification Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

September 1, 2021 August 31, 2026 5 - 12 Months August 31, 2026

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1200 19th Street NW, Suite 100

Washington DC 20036

Jessica Wrenn

202-905-1173 jessica_wrenn@mckinsey.com

VS0065227

McKinsey & Company, Inc. Washington D.C.

C O

N

TR

A C

TO

R

517-243-8710

Millerh1@michigan.gov

Adam Ashley

517-855-1376

DTMB

Holly Grandy-Miller DTMB ashleya2@michigan.gov

C ontract

A dm inistrator Program M anagerSTA

TE

N/ANET 45

Change Notice Number 8

Contract Number MA210000001421 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$20,170,000.00 $427,500.00 $20,597,500.00

DESCRIPTION

Effective July, 30 2024, the following changes are hereby incorporated into this contract.

1. The attached Schedule A - Statement of Work and $427,500.00 are added to the Contract for the continuation of the UIA Michigan Reconnect project established in CN 4 for LEO and MiLEAP.

2. $50,000 is being added due to a discrepancy on the current value between CN 6 and CN 7.

agreement, DTMB Central Procurement approval, and State Administrative Board approval on 7/30/24.

SCHEDULE A – STATEMENT OF WORK

In this phase, the Contractor will perform the activities and furnish the deliverables as listed below. Contractors firm fixed price quote for the work in this extension phase is $427,500.00 for 4 weeks of work comprising:

1. Pilot projects:

• Further define employer-led recruitment initiatives (e.g., internships, employer engagement) (~ $427,500) o Research and scan of existing Michigan efforts (state-led and non-state-led) to engage employers (e.g., internships) that could support Reconnect21 goals o Stakeholder engagement with key partners to identify and refine list of potential Reconnect21 employer engagement initiatives (e.g., scaling of existing internship programs for 21-24 year olds) o Detailed implementation plans for employer engagement initiatives (e.g., weekly and monthly milestones, KPIs)

2. Leadership coaching

• As needed, support June and October stocktakes o Join prep meeting before stocktake to review latest data and refine agenda o Attend stocktake meeting to support facilitation and provide expert input o Join debrief meeting after stocktake to review next steps and acceleration ideas

6. Additional Projects:

• Employer engagement initiative plan

• June and October stocktakes support, as needed

Contractor proposes invoicing in equal monthly payments, separately over the duration of each phase, subject to review and approval from the State of Michigan.

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

CONTRACT SUMMARY

Human Centered Design (HCD) Services – Prequalification Program

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

September 1, 2021 August 31, 2026 5 - 12 Months August 31, 2026

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-Card Direct Voucher (PRC) Other Yes No

1200 19th Street NW, Suite 100

Washington DC 20036

Jessica Wrenn

202-905-1173 jessica_wrenn@mckinsey.com

VS0065227

McKinsey & Company

C O

N

TR

A C

TO

R

517-243-8710

Millerh1@michigan.gov

Adam Ashley

517-855-1376

DTMB

Holly Grandy-Miller DTMB ashleya2@michigan.gov

C ontract

A dm inistrator Program M anagerSTA

TE

N/ANET 45

Change Notice Number 7

Contract Number MA210000001421 to

DESCRIPTION OF CHANGE NOTICE

OPTION EXTENSIONLENGTH OF OPTION LENGTH OF EXTENSION REVISED EXP. DATE

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$19,880,000.00 $240,000.00 $20,120,000.00

DESCRIPTION

Effective June 20, 2024, the attached Schedule A - Statement of Work and the value is hereby increased by $240,000 for DTMB Office of Continuous Improvement (OCI).

agreement, and DTMB Central Procurement approval.

Version 2/23/2024 Page 1 of 6

SCHEDULE A – STATEMENT OF WORK

CONTRACT ACTIVITIES

State of Michigan - Design Operations

HUMAN CENTERED DESIGN (HCD) BACKGROUND

The Michigan Department of Technology, Management and Budget (DTMB) Office of Continuous Improvement (OCI) is responsible for the statewide HCD strategy. The purpose of the HCD strategy is to ensure the voice of the end users are reflected in our services and solutions. The State established a need for services through this specific statement of work through a second-tier solicitation from prequalified Contractors.

PROJECT BACKGROUND

The State of Michigan is seeking to better define and expand our Human Centered Design strategy. Currently, product teams and stakeholders do not fully understand the design process, or the role design should play within their projects. This can cause confusion amongst team members and barriers between design and development. Our goal with this engagement is to tackle both near- and long-term goals. In the near term, we hope to establish robust documentation and a clear process for engaging and working with the eMichigan design team. Our longer-term goal is to create a strategic roadmap for evangelizing and expanding design services throughout the enterprise.

1. Requirements

1.1. General Requirements

The DTMB eMichigan Team is requesting a HCD partner to assist with defining roles and responsibilities, principles and processes, and measures that support varying types of projects/requests ranging from small engagements to large scale, complex solutions.

Additionally, communication is a critical success factor in raising awareness of the services offered by eMichigan and OCI. As such, the team has a need for materials to leverage in building presentations to promote our services as well as establishing a roadmap to ensure that attention is focused where it will be most impactful.

At the end of the HCD partner engagement, the eMichigan team envisions having a built out a DesignOps landscape and supporting documentation similar to that described and depicted (below) by the Nielsen Normal Group at https://www.nngroup.com/articles/design-operations-101/. The areas of most interest for this engagement are highlighted in yellow.

https://www.nngroup.com/articles/design-operations-101/

Version 2/23/2024 Page 2 of 6

1.2. Work and Deliverables

The Contractor must provide Deliverables/Services and staff, and otherwise do all things necessary for or incidental to the performance of work, as set forth below.

1.2.1. Customized DesignOps Landscape for State of Michigan:

A. The Contractor will create the outline of a clear plan for implementing DesignOps within the eMichigan design team. It must define how our team will work together, collaborate efficiently, and ultimately create a significant impact on State of Michigan projects and services.

B. The Contractor will plan and conduct internal research such as stakeholder interviews, and surveys to gather information from the eMichigan and OCI teams as well as external stakeholders such as our DTMB Agency Services development team partners. This information will inform the plan and serve as foundational context for the remainder of the deliverables.

Version 2/23/2024 Page 3 of 6

1.2.2. How We Work Together – Organizational Structure, Team Composition, and Role Definition:

A. Within DTMB, the eMichigan Design/UX team and OCI/HCD teams coexist.

These teams work very closely to address all requests; however, service lines offered by each team and how/when to engage these teams is not clearly delineated. The Contractor will meet with the eMichigan and OCI/HCD teams to understand capabilities, historical engagements, and future goals.

B. The Contractor will use this information to create a clear catalog of outcome-based services for both eMichigan and OCI/HCD, detailing where these services begin and finish and where the teams dovetail together.

1.2.3. How We Get Work Done – Guiding Principles, Design Systems, Design Processes and Estimation:

A. The Contractor will meet with the eMichigan team to uncover and expose challenges and bottlenecks in the current design workflow.

B. The Contractor will then define guiding principles, as well as optimize and document new design processes.

C. The Contractor deliverable must cover the necessary processes from initiation through testing to delivery. This includes defining and aligning purposeful design activities within the design process.

D. The Contractor will produce a detailed visual representation of our design process illustrating how our team navigates different stages of UI/UX work for diverse client projects.

E. The Contractor will include information on how development teams work with designers to create a smooth handoff within the process documentation. It must define clear expectations from clients and internal teams ensuring that all parties are aligned and aware of their roles and responsibilities as the project progresses.

F. The Contractor will meet with the eMichigan team to understand design-team capacity and document a process to accurately estimate and allocate projects resources.

G. The deliverables produced must provide a flexible framework that can be shared with teams enabling easy adoption to various project requirements.

H. eMichigan has developed and published a State of Michigan design system called Digital Guidelines (www.digitalguidelines.michigan.gov). They leverage Figma and UserTesting.com and are not currently looking to change their toolsets. For this engagement, the Contractor shall review the Digital Guidelines design system and provide recommendations on expanding adoption, including in cases where technical constraints (e.g., COTS, Low Code, No Code solutions, SaaS products, CRMs) limit full adoption.

http://www.digitalguidelines.michigan.gov/

Version 2/23/2024 Page 4 of 6

1.2.4. How Our Work Creates Impact – Design Metrics, Defining Good and Done, Success Stories, Value Definition and Skills Training A. Communication is a critical success factor in raising awareness of the design services offered by eMichigan. The Contractor shall create materials and templates to leverage in building presentations to promote our services to both business stakeholders and development teams. The materials created should have a clear target audience (business or technical) and must utilize a consistent message of the role and value of design and offer options for including success stories.

B. Contractor will work with eMichigan to set and document criteria for determining “good and done” as it relates to our work.

C. Contractor will work with eMichigan to establish and document reusable metrics, establish baselines, and a playbook for measuring quality over time.

D. Contractor will provide written recommendations on skills training by role, including eMichigan centralized design/UX team members as well as developers and business stakeholders.

1.2.5. Optional Services as Recommended by Contractor

During the diagnostic of the current state, Contractor has recommended auditing the existing design system for accessibility and inclusive design considerations. The goal is to unlock new opportunities to create more inclusive experiences.

The audit would include:

1. Audit the existing documentation to understand current state of Design System.

2. Cross-check against industry examples and accessibility checklists (web & native) to determine the gaps and best practices to structure.

3. Identify opportunities to drive equitable outcomes by either improving existing componentry, unlocking themes for dark or low visibility modes, and understand the products and services that have the greatest impact to residents.

1.3. Training/Knowledge Transfer

The State of Michigan wants to better understand steps taken throughout the HCD process and requests the Contractor enable state employees to learn through observation, participation, and de-briefing of facilitation activities of the project.

Contractor must provide to the eMichigan and OCI/HCD teams leadership coaching and mentorship throughout the course of the project to equip them with the knowledge they need to achieve desired outcomes of the project. Appropriate knowledge transfer and training should be delivered to core members of the eMichigan team to build competency in HCD and ensure the ability to maintain the implemented solution.

Version 2/23/2024 Page 5 of 6

2. Service Requirements

2.1. Timeframes

All Contract Activities must be delivered within 90 business days from receipt of order.

The receipt of order date is pursuant to the Notices section of the Standard Contract Terms.

DTMB retains the option for additional project iterations, at additional agreed-to cost, beyond the initial service timeframe.

3. Acceptance, Inspection, and Testing Unless otherwise stated, the State will use the criteria provided in Section 16 of the Contract Terms to determine acceptance of the Contract Activities.

4. Staffing

4.1. Key Personnel

The Contractor must appoint individuals who will be directly responsible for the day-to-day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and respond to State inquiries within 24 hours.

5. Project Management

5.1. Project Plan

The Contractor will carry out this project under the direction and control of the eMichigan User Experience team manager.

Contractor must submit an initial project plan to the eMichigan User Experience team manager for approval. The plan must include:

(a) the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and

(b) the project breakdown showing sub-projects, tasks, timeline, and resources required.

Within 10 calendar days of the Effective Date, the Contractor must submit a final project plan to the Program Manager for approval.

5.2. Meetings

Unless previously otherwise arranged, meetings will occur virtually using Teams.

The Contractor must attend the following meetings:

• Weekly Project Status

The State may request other meetings as it deems appropriate.

5.3. Reporting

The Contractor must submit to eMichigan the following written reports:

• Weekly status reports.

Version 2/23/2024 Page 6 of 6

• Final deliverables.

6. Pricing

6.1. Price Term

Pricing is firm for the entire length of the Contract. Contractor to submit specific pricing in this section for each of the following deliverables from Section 1.2.

Deliverable Pricing

1.2.1. Customized DesignOps Landscape for State

of Michigan

$60,000

1.2.2. How We Work Together – Organizational

Structure, Team Composition and Role Definition

1.2.3. How We Get Work Done – Guiding

Principles, Design Processes, Design Systems, and Estimation

1.2.4. How Our Work Creates Impact – Design

Metrics, Defining Good and Done, Success Stories, Value Definition and Skills Training

1.2.5. Optional Services as Recommended by

Contractor (please provide complete description with proposal)

Not separately priced

CENTRAL PROCUREMENT SERVICES

Department of Technology, Management, and Budget

320 S. WALNUT ST., LANSING, MICHIGAN 48933

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 6 to

Contract Number 210000001421

Millerh1@michigan.gov

Holly Grandy-Miller

Adam Ashley jessica_wrenn@mckinsey.com

Jessica Wrenn

Washington, DC 20036

McKinsey & Company

VS0065227

202-905-1173

1200 19th Street NW, Suite 100

(517)855-1376 S

T A

T E

P ro g ra m

M a n a g e r

C o n tra ct

A d m in istra to r

C O

N T R A C T O

R

517-243-8710

DTMB

ashleya2@michigan.gov

$12,580,000.00

September 1, 2021 August 31, 2026

HUMAN CENTERED DESIGN (HCD) SERVICES – PREQUALIFICATION PROGRAM

August 31, 2026

INITIAL AVAILABLE OPTIONS…