Attachment C: Scope of Work Dynamics 365

1. Executive Summary & Project Objectives This initiative focuses on the strategic enhancement and optimization of the Utah Department of Alcoholic Beverage Services (DABS) Microsoft Dynamics 365 (Finance, Operations, and Commerce) environment. The primary business goal is to modernize DABS's retail and supply chain operations through a structured, phased roadmap. Key technical and business objectives include:

● B2C E-Commerce: Deploying an integrated B2C e-commerce webshop to facilitate online ordering and store pickup, ensuring full compliance with state and PCI DSS security standards.

● Retail Optimization: Enhancing the Retail and Commerce module to streamline POS operations, security, payment processing (including Chase Paymentech integration), and shift management.

● Warehouse Efficiency: Improving warehouse inventory management and shipping processes, including optimizing picking, loading, and replenishment workflows.

● Demand Planning: Replacing the existing third-party OneBeat forecasting tool with an integrated Power BI and Dynamics 365 out-of-the-box solution for improved store-level demand planning.

2. Vendor Strategy & Justification

● Vendor Preference: DABS strongly prefers to solicit a proposal from a partner previously engaged by our organization for Dynamics 365 work so that time and money spent previously can be leveraged in this future effort

● Rationale: The preferred vendor has already identified key business requirements and possesses deep, documented knowledge of our current system configuration, architecture, and business processes and saves both time and money in this future effort.

● Business Value: Engaging a familiar vendor will significantly reduce the time and financial costs typically associated with the standard Discovery and Requirements Gathering phase, allowing for immediate alignment and faster time-to-value.

3. Scope of Work (SOW) Details

3.1 In-Scope Activities

● B2C E-Commerce: Deployment of an integrated B2C e-commerce webshop for online ordering and store pickup, featuring user authentication, secure payment processing via Chase Paymentech, and integration with store Zebra scanning devices.

● Retail Optimization: Implementation of POS security and operation improvements, shift management (including starting amount and cash declaration), cash reconciliation processes, credit card tokenization, and ACH batch automation.

● Warehouse Efficiency: Optimization of warehouse inventory management, including configuration of scanning workflows for picking and loading and replenishment processes.

● Demand Planning: Replacement of third-party OneBeat forecasting tool with an integrated Power BI and D365 Out-of-the-Box (OOTB) forecasting solution.

● Delivery Lifecycle: Comprehensive project execution including analysis and design, functional/technical documentation (FDD/TDD/IDD), system and functional testing, UAT support, training for key/power users, production deployment, and post-go-live hypercare support.

3.2 Out-of-Scope Activities

Instruction: Explicitly state what is NOT included in this engagement to avoid misunderstandings.

● Procurement of software licensing (e.g., Dynamics 365, Power BI).

● Tier 1 Helpdesk support for standard, non-project-related D365 inquiries.

● Data cleansing prior to migration (unless specifically negotiated).

● Procurement, setup, and network connectivity for hardware (e.g., handheld devices, barcode scanners).

● Logistics for mass end-user training.

● Implementation of forecasting customization (if a path beyond D365 OOTB is chosen, this requires a separate Change Order).

4. Deliverables and Milestones Instruction: Tie the project work to specific, measurable deliverables and timeframes.

Phase Milestone / Key Deliverable Estimated Timeline

1. Analysis & Planning Stakeholder alignment, current state review, and gap analysis for WMS/Forecasting.

0-2 weeks (zero weeks if using a vendor already familiar with DABS business processes and D365 configurations and existing modifications

2. Solution Design Future-state warehouse process design and OOTB

vs. customization decision.

2-3 weeks

Phase Milestone / Key Deliverable Estimated Timeline

3. Implementation Configure D365 WMS/forecasting, Power BI report development, and

SIT.

3-4 weeks

4. Solution Testing Execution of UAT, defect resolution, and go-live readiness.

2-3 weeks

5. Hypercare Post-go-live support and project transition.

2 weeks

5. Roles and Responsibilities

5.1 Client Responsibilities

● Provide uninterrupted access to current Dynamics 365 environments, Azure resources, and historical documentation.

● Assign a dedicated Product Owner empowered to make rapid business decisions.

● Execute User Acceptance Testing (UAT) within the agreed-upon timeframe.

5.2 Vendor Responsibilities

● Provide highly skilled Dynamics 365 functional consultants, solution architects, and technical developers.

● Manage project timeline and risks, and provide weekly status reports.

● Deliver fully documented code and conduct knowledge transfer sessions with the internal

IT team.

6. Pricing and Payment Schedule

● We require a fixed-bid model where payments are made as work is completed, tested, and signed off prior to payment. This requires a response that breaks out the work based on milestone/requirement so that as those are completed and signed off on by the business, payment for those units of work can be made.

7. Assumptions, Constraints & Risks

● Assumption 1: The selected vendor already holds requisite baseline knowledge of the Client's Dynamics 365 environment, heavily reducing discovery efforts.

● Constraint 1: Project must be completed by January 31st

● Risk 1: Availability of internal Subject Matter Experts (SMEs) during the UAT phase.

8. Acceptance Criteria & Sign-Off Deliverables will be deemed accepted when the Client's designated Product Owner provides formal written approval (via email or project management tool). The Client commits to reviewing and approving/rejecting submitted deliverables within 5 business days of receipt. If rejection occurs, the vendor must remediate defects within 5 business days at no additional cost (if fixed bid).