ATTACHMENT G - Model Statement of Work - RFP 758 2700000012.docx

Commonwealth of Kentucky

KY ENTERPRISE HCM ERP SYSTEM REPLACEMENT

PHASE I – BENEFITS ADMINISTRATION & BILLING

SOFTWARE SOLUTION AND SERVICES

RFP Attachment G – Model Statement of Work

Table of Contents

Model Statement of Work The Commonwealth of Kentucky requires that the Vendor provide a complete and comprehensive set of services that will ensure project success within the planned timeline and budget for the Commonwealth’s KY Enterprise Human Capital Management (HCM) Enterprise Resource Planning (ERP) System Replacement Phase I – Benefits Administration & Billing Software Solution and Services. The implementation includes all modules and functionality procured, including the business processes, forms, workflow, data, business analytics, and reporting required to operate these components as detailed in the contractual agreement between the Commonwealth of Kentucky and the Vendor (Systems Integrator (SI)). The Commonwealth also expects that the corresponding general specifications and technical specifications for each Phase I component will be responded to such that the Commonwealth can assess the overall degree of fit for the complete proposed solution. Following is a high-level list of the implementation services and deliverables that are required; however, additional services and deliverables may be required to ensure implementation success in accordance with the Vendor’s implementation methodology.

The remainder of this document provides a detailed description of the services to be included in any proposal. These services shall be addressed in the Statement of Work (SOW) included in the contractual agreement between the Commonwealth and the Vendor.

Each section includes a listing of minimum expected deliverables applicable to that section, along with a responsibility matrix indicating the Commonwealth’s expectation as to whether the Vendor or the Commonwealth has a lead or assist role for a specified project activity. For the purposes of this model SOW, the terms “Lead” and “Assist”, as applied to these responsibility matrices, are defined as follows:

Lead – in reference to roles and responsibilities, means that the assigned team has primary responsibility for completing any deliverable items and/or managing and guiding the activity, and will be performing the activity; and Assist – in reference to roles and responsibilities, means the assigned team will actively participate and support the Lead team in successfully completing the deliverable or activity, under the management and guidance of the Lead.

Plan Phase Project Management Methodology The Vendor shall provide, and use for the entire project, a proven project management methodology as part of its implementation approach. The project management methodology shall have a foundation in established methodologies and standards, such as the Project Management Institute's (PMI) Project Management Body of Knowledge (PMBOK), IT Infrastructure Library (ITIL), or other methodologies used in previous similar projects.

Note: Per the RFP Section 3.4 Independent Verification and Validation (IV&V), the Commonwealth intends to engage an Independent Verification and Validation (IV&V) vendor to provide objective oversight of the implementation project. The IV&V vendor will operate independently of the awarded Contractor and any subcontractors.

The IV&V vendor will report independently to the Commonwealth. IV&V activities are intended to support project success through early identification of risks and continuous improvement and do not relieve the Systems Integration (SI) Vendor of any contractual responsibilities.

Project Manager The Vendor is expected to provide a full-time, experienced Project Manager who will be accountable for all services and deliverables provided under the Contract resulting from this RFP, and who will work to ensure the on-time delivery and successful deployment of the new Benefits Administration & Billing Solution. This individual is expected to be dedicated to the Commonwealth project and shall function as the Commonwealth's primary point of contact with the Vendor. The Vendor’s Project Manager is expected to promote project team collaboration, respond to day-to-day problems, manage issues, and manage project resources. It is preferred that the Project Manager be certified by the Project Management Institute as a Project Management Professional (PMP).

Implementation Project Charter The Vendor shall collaborate with the Commonwealth to deliver an Implementation Project Charter for modules/functionality as procured) that includes, at a minimum, the following elements:

Project Scope – The project description, its deliverables and what business needs, problems or opportunities the project addresses;

Project Governance – The Commonwealth will provide documentation of current governance policies and applicable bodies for the project. The Vendor will provide comments regarding the existing project governance structure and recommendations for improvement. A recommended project governance organization chart would also be in this section.

Roles and Responsibilities – The identification of and contact information for the Vendor’s Project Manager, Commonwealth Program Director, Commonwealth Project Manager and Key Personnel. This section shall identify which roles have the authority to interface, delegate, and communicate as required for successful and timely completion of the project. It shall also identify which roles have the responsibility for meeting the project plan objectives, monitoring the schedule, cost, and scope of the project; and Project Summary – A high-level series of key deliverables and/or milestones to be used as the performance measures and stage gates in accordance with the proposed implementation methodology.

Work Plan A comprehensive work plan shall be submitted within thirty (30) days of project start as a key deliverable on the Deliverable Payments Schedule. The project schedule shall be accessible via a fully capable project management tool (i.e., Smartsheet, Microsoft Project). The work plan shall be developed by the Vendor with input and participation of the Commonwealth and include tasks to be performed by the Commonwealth and Vendor personnel. The following standards apply to the work plan:

All Project management activities shall be documented;

Shall outline a plan for the entire project - from planning through deployment, including post go-live support;

Shall include tasks, dependencies, linked predecessors/successors, critical paths, and responsible parties (both Vendor and Commonwealth staff) assigned to each task;

Shall include all deliverables that support the proposed methodology and approach;

Estimated work effort, duration, start and end dates shall be shown for each task;

No individual task shall be longer than four (4) weeks in duration;

Appropriate milestones shall be identified in the work plan to gauge the project’s progress toward meeting desired target completion dates; and Any assumptions made in developing the work plan shall be documented.

The Vendor shall also produce a Staffing Plan that addresses each of the Vendor’s proposed project staff, as well as the necessary project staff to be provided by the Commonwealth. The Plan shall indicate a percentage estimate by role of the time on-site by the Vendor’s staff and work that could be done remotely, as well as proposed percentage estimate by role of Commonwealth staff.

The Staffing Plan shall show the plan of usage (days per month) on a monthly basis for each resource over the period of the project, and whether the resource will be on-site or off-site. It is expected that the Staffing Plan will include named resources for all key personnel and as many project roles as possible for a rolling, six-month period. The Commonwealth will allow reasonable approaches for off-site work to support cost reductions or to appropriately achieve on-time completion of project tasks with mutual agreement between the Commonwealth and Vendor. With that said, Commonwealth data shall not be transferred outside of the United States under any circumstance without the written permission of the Commonwealth. No Vendor services will be performed from outside the United States without prior written consent from the Commonwealth.

Throughout the project, the Vendor’s Project Manager shall monitor project activities, update the project plan (weekly), develop further detail as appropriate and work closely with the Commonwealth Project Manager and the Personnel Cabinet’s HCM Program Director. At the end of each month, the Vendor’s Project Manager shall submit an updated project plan for the next 60 days’ activities. The updated project plan should be provided weekly with the Vendor’s weekly status report.

Project Time Reporting By the 15th of each month, the Vendor shall report in MS Excel or other Commonwealth approved format, actual hours worked during the previous month for each team member. Hours worked shall be exclusive of travel time to and from Frankfort, KY.

Status Reporting The Vendor shall provide regular and timely project status reporting. The Vendor shall provide weekly status reports to the Personnel Cabinet’s HCM Project Management Office (PMO) to reflect the major activities for the reporting period. The weekly status report shall serve as the agenda for weekly status meetings. The Vendor may also be required to prepare periodic status reports for sponsor groups and executive leadership. Topics to be covered shall include, but not be limited to, the following:

A listing of significant departures from the Project Work Plan with explanations of causes and effects on other areas, as well as remedies to achieve realignment;

Changes to project objectives, scope, schedule, and/or budget;

A listing of tasks completed since the last report;

Tasks that were delayed and reasons for delay, with revised completion dates and remediation steps;

Updates for previously delayed tasks;

Planned activities for the next scheduled period;

Summary of major concerns, risks, and issues encountered along with proposed resolutions and actual resolutions;

Identification and discussion of any security issues (if applicable); and Any other topics that require attention from the Personnel Cabinet PMO and/or sponsors.

Issue Resolution The Vendor shall provide and use a methodology and software tool for issue identification, tracking and resolution that shall be accessible to Commonwealth Project Team members. The issues tracking process shall integrate into configuration management, testing processes, and the overall project management methodology. Topics that shall be included are:

Issue identification;

Issue tracking, reporting, and trending;

Issue review, prioritization, and assignment;

Issue analysis;

Issue resolution;

Issue escalation;

Issue follow-up (for resolutions with lead time); and Impact to the overall project schedule and budget.

The Commonwealth and the Vendor will agree on a protocol for collaboratively resolving implementation issues. This protocol is expected to address the topics above, responsible parties, and specific steps to be taken on issues or disputes arising during the implementation process.

Risk Management Plan, Discussions, and Mitigations The Vendor shall conduct risk identification and mitigation development discussions early in the Planning Phase of the project and at scheduled points in time over the life of the project. These procedures shall be documented in a risk management plan, and the results of these periodic sessions shall be documented as prescribed by Project Controls, Standards, and Procedures.

Communication and Cooperation The Vendor shall communicate and cooperate with all parties involved in the project. The Vendor's staff shall have excellent communication skills and conduct themselves professionally and courteously in all instances. Communications between parties shall be performed through, but are not limited to:

Regularly scheduled and ad hoc meetings;

Voice and Web conferencing system;

Instant messaging platform;

Email;

Weekly written status reports provided to the Commonwealth by the Vendor;

Required Project Plans; and Other reports as required.

Project Controls, Standards, and Procedures The Vendor shall provide project controls, standards, and procedures for all project tasks. These items are required to be submitted for review and approval by the Commonwealth’s project leadership at project initiation. These requirements include, but are not limited to:

Meeting Procedures – Includes techniques and technology solutions to ensure that meetings are efficient and productive, and discussions, decisions, and action items are adequately documented;

Managing Project Documentation – Includes templates used (e.g., configuration setting and procedures, functional and technical design specifications, test case scenarios, change request procedures, etc.), organization of project directories, naming conventions, and version control procedures;

Project Repository – The document collaboration tool for the project will be the Commonwealth’s SharePoint site, and the Vendor and the Commonwealth shall agree on the organization of documents on that tool. No materials should be stored outside of the Commonwealth and the repository should be a complete repository of all project materials. This includes all the bullet-pointed documentation in this section;

Scope Management – Includes scope control processes to ensure that work is not performed on out-of-scope features, functions, or tasks unless the Commonwealth grants advanced written authorization. This includes processes to provide a competent assessment of the impact of potential scope changes to assist with the Commonwealth’s decision-making processes;

Communications Management – Includes a project communications strategy and plan along with the communication types, frequency, sensitivity classification, and target audience for each communication;

Deliverable Expectation Document (DED) – Includes a Deliverable Outline Template that identifies an outline (and description if necessary) of the planned content, the acceptance criteria for the deliverable as required by the Commonwealth, the review complexity, and the Commonwealth approvers for each deliverable. The format of the Deliverable Outline Template shall be agreed by the Vendor and the Commonwealth; and Deliverable Reviews – Includes the process and time periods whereby the Commonwealth determines the readiness of a deliverable for formal submission, provides feedback on deficiencies, and conducts subsequent reviews.

Information Security Risk Management Plan The project involves the replacing and interfacing of systems that maintain confidential, sensitive, and public data. Employees and representatives from the Vendor’s firm will likely have access to these systems and data to support various activities throughout the life cycle of the project. To ensure that necessary and appropriate risk mitigation steps are taken from the beginning of the project through its completion, the Vendor shall develop, maintain, and assess compliance with an Information Security Risk Management Plan (ISRMP) that shall establish how the project will protect the data assets of the Commonwealth in the course of delivering services of the contract. The elements of the plan shall include, but are not limited to, the following:

Classification of systems in scope (for either replacement or interface) in terms of the degree of sensitivity of the data resident in those systems;

Incorporation of Commonwealth incident management procedures;

Incorporation of Commonwealth data security standards and procedures;

Definition of the responsibilities of the project team members and Commonwealth stakeholders to ensure the data are managed properly in accordance with the plan, policies, and procedures;

Definition of approach to monitor, audit, control, and report on compliance with the plan; and Communication and escalation procedures used to notify appropriate Commonwealth personnel of a security-related breach.

Onboarding Process and Documentation The Vendor shall develop and maintain an onboarding process and related documentation to ensure that project team members (Vendor and Commonwealth) develop a collective understanding of the project scope, team members, roles and responsibilities, work breakdown structure, project policies, and procedures, etc.

Tenant (or Instance) Management Plan The Vendor shall develop and maintain a plan that describes activities, roles, responsibilities, and scheduling related to the request, preparation, and deployment of tenants/instances used during the implementation (A tenant is an instance of the software and related data intended for a specific purpose such as production, testing, training, or demonstration). The plan shall include descriptions of processes and steps to address copy/move of configuration settings and other design features from one tenant to another such that the tenants are prepared to meet the needs of the implementation project at the times required by the project work plan.

Release Management Plan The Vendor is required to provide all consulting services necessary to keep the Commonwealth current on the latest release of the Benefits Administration & Billing Software Solution and other software applications within scope for the duration of the implementation and deployment. The Software Solution Provider will be responsible for the technical installation of any new software releases, while the Vendor will be responsible for managing all other activities required (with the Commonwealth’s participation) to ensure a successful transition to the new software release (e.g., testing and training on new functionality).

The Vendor shall develop and maintain a plan that describes activities, roles, responsibilities, and scheduling related to the review, coordination, scheduling, and testing (including regression testing) of updates and patches that the software provider deploys across the various tenants in the Commonwealth’s Benefits Administration & Software Billing Solution.

Training Within seven (7) days of project initiation, Vendor shall provide a recommended curriculum of solution product training for each Commonwealth project team member. The Commonwealth expects that the SSP shall provide software training to the project team unless Vendor offers an alternative.

In addition, the Vendor shall develop and provide training to the entire project team on the project procedures and project tools, including a walk-through of the detailed project work plan. Additional work plan walk-throughs shall be conducted at appropriate points in the project schedule to allow continued understanding of the scope of work, roles, and responsibilities.

Project Management Deliverables:

Implementation Project Charter Project Work Plan Time Reporting Plan Status Reporting Plan Status Reports Issues Management Plan Risk Management Plan Project Control, Standards, and Procedures Information Security Risk Management Plan Onboarding Process and Documentation Tenant Management Plan Release Management Plan Recommended Curriculum for Project Team Training

Table 1: Project Management Responsibility Matrix

1.2 Organizational Change Management (OCM) and Communications Methodology The Vendor shall provide a structured method and approach, guidance, and mentoring to support a successful transition to the new Benefits Administration & Billing Solution enabled business processes and related business processes impacted by the software. The Vendor shall partner with Commonwealth personnel to orchestrate change activities. Vendor and Commonwealth team members shall support the change process where required, lending both subject-matter expertise and assistance by creating content and supporting materials.

OCM Manager The Vendor is expected to provide a full-time, experienced OCM Manager who is expected to define and execute the overall OCM strategy, to promote project team collaboration, respond to day-to-day problems, manage issues, and manage personnel resources.

OCM Strategy and Plan The Vendor shall deliver a detailed OCM Strategy and associated plans (such as Communication Strategy and Plan and End-User Training Strategy and Plan) that outlines a change management methodology, approach, activities, dependencies, and assumptions for key stakeholders to support a successful transition from the current environment to the future state. Together, these plans shall describe an approach that maximizes engagement from each Commonwealth agency and other participating entities.

The OCM Strategy shall be based on a comprehensive assessment of the Commonwealth’s capacity for and tolerance to change, a stakeholder analysis, and assessment of the overall change risk. The OCM Strategy and its accompanying plan shall encompass the entire project lifecycle.

The OCM Strategy and Plan shall include, but is not limited to, the following elements:

OCM Resources Plan;

Sponsorship and Stakeholder Engagement Plan;

Communications Strategy and Plan;

Impact Assessment and Readiness Plan;

Training and Workforce Development Plan; and Sustainability Plan, Model, and Resourcing.

OCM Resources Strategy and Plan The Vendor shall develop an OCM Resources Strategy and Plan that defines personnel, skills, equipment, and physical resources needed to support the change and achieve the expected benefits of Benefits Administration & Billing Solution. The OCM Resources Strategy and Plan shall include, but are not limited to the following elements:

Staffing plan that assigns roles and individuals to specific change management tasks; and Physical OCM resources needed to support the implementation.

Sponsorship and Stakeholder Engagement Strategy and Plan The Vendor shall develop a Stakeholder Engagement Strategy and Plan that outlines the activities and methodology that will ensure project sponsors, Commonwealth employees and functional groups promote and drive adoption of the new software solution at all levels across the Commonwealth and participating entities and can make the process changes required for successful solution implementation. The Sponsorship and Stakeholder Engagement Plan will address stakeholders affected by new business processes and technology. The Vendor shall regularly consult and collaborate with the Commonwealth on the various stakeholder constituencies and engagement goals and shall provide a draft Stakeholder Engagement Strategy and Plan to the Commonwealth for review and feedback at least four (4) weeks before the proposed launch of such Plan. The Stakeholder Engagement Strategy and Plan shall include, but are not limited to the following elements:

Stakeholder analysis;

Approach for gaining sponsorship commitment;

Leadership alignment;

Organizational readiness and risk assessment;

Cultural assessment;

Change network program; and Channels, key messages, and critical path needs for impacted Stakeholder groups.

Communication Strategy and Plan The Vendor shall, in consult and collaboration with the Commonwealth, develop a Communication Strategy and Plan that defines all communication touch points between the project and all change champions, change agents, subject matter experts, and change targets. The Vendor shall provide a draft Communication Strategy and Plan to the Commonwealth for review and feedback at least four (4) weeks before the proposed launch of such Plan. The Communication Strategy and Plan shall include, but are not limited to the following elements:

Communication Strategy;

Core message outlines;

Communication Plan with the following elements: target audiences, outcomes, sender, key messages, communication channels, frequency, timing, cost and resources, reviewers and approvers, monitoring and feedback, type of communication event, event objectives, key messages, target audience, delivery date(s), communication channel, presenter, content developer, reviewer/approver, and status; and Communication Calendar showing key messages of each communication channel over each month of the implementation and deployment.

As part of this effort, the Vendor shall:

Direct the development of materials appropriate for each communication event. Materials will vary based on the communication channel, but may include videos, presentations, and documents developed in Microsoft PowerPoint presentations, Microsoft Word, Microsoft Publisher and similar tools; and Work with assigned Commonwealth staff to incorporate policy, procedure, and specific personnel roles into the materials.

All communication materials must be reviewed and approved by the Commonwealth prior to distribution. The Vendor shall ensure that all electronic source documents are consistent with branding and graphics used in the development and presentation of communication materials across all delivery channels. All communication materials shall allow for co-branding with the Commonwealth’s selected brand(s).

The Vendor shall implement methods to assess the effectiveness of communication events and identify specific recommendations for adjustments. The Vendor shall, throughout the project, improve the approach, methods, procedures, and communication material based on lessons learned throughout execution of the Communication Plan to ensure the end-users are receiving communications that will enable them to execute tasks within the software upon go-live and help them understand relevant change impacts.

Impact Assessment and Readiness Plan The Vendor shall develop an Impact Assessment and Readiness Plan that analyzes the impacts on participants, processes, tools, and job roles the Benefits Administration & Billing Solution will make available across the Commonwealth. This plan will outline the activities that need to be accomplished in advance of the planned phase go-live. The Impact Assessment and Readiness Plan shall include, but are not limited to the following elements:

Change impact assessment;

Organizational change capacity assessment;

Process mapping and process adoption plan; and Organizational design.

End-User Training Strategy and Plan The Vendor shall develop an End-User Training Strategy and Plan based on a comprehensive end-user training needs assessment conducted by the Vendor in conjunction with overall change management and stakeholder analysis activities. The End-User Training Strategy and Plan shall include, but are not limited to the following elements:

End-User Training Stakeholder Analysis;

Map of End-User Training Needs to Awareness, Skills, and Sustainment learning phases;

Map of End-User Training Needs to modules with associated learning objectives and assessment methods, including mapping training needs to roles;

Map of End-User Training Modules to Training Events and Delivery Channels;

Job Aid Strategy; and Sustainment Strategy.

As part of this effort, the Vendor shall:

Provide a Senior Training Lead who can plan, direct, and execute end-user training for the Commonwealth. The Vendor shall lead and provide resources for at least 80% of the development of end-user training based on the Training Strategy and Plan and will be responsible for train-the-trainer sessions with Commonwealth training resources. The Commonwealth will be responsible up to 20% of the training development efforts at the sole election of the Commonwealth and will administer enrollment. Vendor will lead all instructor-led classes;

Develop materials appropriate for each training delivery channel to support training that has been customized to address specific Benefits Administration & Billing Solution configuration and designs made as part of the implementation project. Where possible, these materials should be sustainable beyond go-live for self-paced learning needs. Materials will vary by delivery channel, but shall include instructor guides, learner guides, quick reference guides, job aids, videos, and user exercise and engagement materials as appropriate;

Work with assigned Commonwealth staff to incorporate policy, procedure, and specific personnel roles into the materials;

Provide a stable, tested environment that is pre-loaded with representative converted reference and historical Commonwealth data that can become a starting point for creating training materials (including screen prints showing user actions and processing outcomes, if included as part of the training approach); and Provide backup, refresh, and troubleshooting assistance in the training environment as materials are prepared and customized and as end-user training proceeds.

All end-user training materials must be provided to the Commonwealth with sufficient lead time for the materials to be reviewed and approved by the Commonwealth prior to the start of training delivery. The Vendor shall incorporate additional material or clarifications to the materials as provided by the Commonwealth as part of such review or adjustments identified as necessary. The Vendor shall provide all electronic source documents and graphics used in the development and presentation of training across all delivery channels.

The Vendor shall implement methods to assess the effectiveness of the training delivery process and identify specific recommendations for adjustments. The Vendor shall, throughout the project, improve the approach, curriculum, methods, procedures, and end-user training material based on lessons learned throughout the training delivery to ensure the end-users are receiving training that will enable them to execute tasks within the new Benefits Administration & Billing Solution upon go-live.

End-User Training Delivery The Vendor must provide a Senior Training Lead who will work with the Project Manager and Personnel’s HCM Program Director to develop, direct, and execute a statewide End-User Training Strategy and Plan. The Commonwealth expects most end-user training will be done with self-paced courses delivered online when appropriate, but there may be curricula that require an instructor-led approach which will be led by the Vendor. Once end-user training has been completed and the new Benefits Billing & Administration Solution is live and in production, the Vendor shall provide the Commonwealth with all Instructor Training Materials developed for and utilized in the end-user training to allow the Commonwealth to support the ongoing training needs related to the Benefits Billing & Administration Solution, as well as provide “train the trainer” courses on the Instructor Training Materials for Commonwealth employees who will be assigned to provide such trainings, at the election of the Commonwealth.

Sustainability Strategy and Plan The Vendor shall develop a Sustainability Strategy and Plan that describes how the new Benefits Billing & Administration Solution will become a part of the Commonwealth’s normal operations. The Sustainability Strategy and Plan shall include, but are not limited to the following elements:

Roles, resources requirements, governance structure for sustainment;

Tiered-Support Model Framework Ongoing communications;

Metrics tracking;

Rewards and recognition;

Sustained ownership and knowledge transfer; and Process improvements.

OCM and Communications Delivery The Commonwealth expects the Vendor to deliver the initial strategy plans in the Plan Phase of the project as indicated in this section. The execution of those plans shall be aligned to the project scope and/or phases (if applicable) in which they are appropriate. The Vendor shall provide a Senior OCM Lead for planning and leadership in this area, plus a Senior Communications Lead for planning and leadership.

These senior consultants will help the Commonwealth project personnel develop the OCM and Communications Management plans for the duration of the project. For execution of the agreed OCM and Communications Management plans, the Commonwealth will provide at least the staff resources noted in the RFP.

OCM Deliverables:

Change Management Strategy and Plans Communications Management Strategy and Plan Impact Assessment and Readiness Plan End-User Training Strategy End-User Training Plan Training Sustainment Plan Train-the-Trainer Sessions and Support for End-User Training End-User Training Materials and Instructor Training Materials

Table 2: Organizational Change Management Responsibility Matrix

1.3 Additional Project Preparation and Planning

The following deliverables are not listed as part of the Plan phase of the project, but the Commonwealth expects that these strategy deliverables will be completed during Plan phase or early in the Design phase.

Integration Strategy Plan (detail included in Section 3.3) Conversion Strategy (detail included in Section 3.4) Security Plan (detail included in Section 3.7) Knowledge Transfer Plan (detail included in Section 5.4)

Design Phase Business Process Design The Vendor shall lead work group sessions and provide tools and other services as required to complete the Business Process Design. The Commonwealth expects the Design phase will involve input from most Commonwealth agencies. At a minimum, the Vendor’s approach to standardized business process design shall include the following:

Conduct multiple process analysis and design workshops by business process area that:

· Utilize the Phase I Benefits Administration & Billing Software Solution and other appropriate software in the facilitation of the workshops, and

· Include Commonwealth subject-matter experts (SMEs) representative of the identified Commonwealth departments in order to leverage their Commonwealth-specific process knowledge;

Produce business to-be process design documents that capture a profile of the business process, process flow diagrams (in “swim-lane” format, as appropriate), key inputs and outputs, and linkages to other processes and solution modules, as well as to third-party systems where applicable;

Identify and document organizational change impacts in terms of process, policy, and skillsets;

Analyze and document the resolution of published Benefits Administration & Billing business and technical specifications, identifying: (1) those that are available in the solution as delivered or through configuration, and (2) those that are gaps, which may lead to the development of business process changes, software extensions, additional integration(s), or modifications to existing third-party systems;

Conduct an analysis of requirements specific to the Commonwealth of Kentucky Personnel Cabinet to better understand the complexities involved in supporting the Personnel Cabinet on the new Benefits Administration & Billing Software Solution.

Design reports to support business processes and identification of any needed custom reports;

Identify and document any additional information or changes to lists of systems that have been identified for replacement, interface, or conversion.

Specific Design Strategies The Vendor or Systems Integrator (SI) shall provide structured methodologies and guidance for the following strategies during Design to support the successful execution of the implementation project and the efficient ongoing operations of the Benefits Administration & Billing Software Solution.

Benefits Administration The Vendor shall lead a workgroup consisting of representation from the Personnel Cabinet and other designated agency representatives (if desired) charged with developing the new Benefits Administration business processes that will support benefits eligibility, enrollment, integrations, administration, support and compliance. This also includes the necessary and required audit and reporting processes for the Commonwealth. The Vendor shall lead early gap analysis and resolution identification sessions for the Commonwealth’s Kentucky Employees Health Plan required Benefits Administration specifications and facilitate design decisions that will contribute to subsequent business process changes, organizational change management, and solution design activities of the project.

The Commonwealth expects the Vendor to develop a plan to guide the planning and design effort; educate the workgroup on the functionality of the Solution pertaining to Benefits Administration business processes, reconciliation, and reporting; provide guidance based on comparable Commonwealth or public sector models; incorporate a means by which broader input can be gathered and considered; and demonstrate multiple iterations of the design within the solution to achieve Commonwealth approval.”

Benefits Accounting The Vendor shall lead a Commonwealth workgroup consisting of representation from the Personnel Cabinet and designated agency representatives (if applicable) charged with developing the new enterprise Benefits Accounting forms, business processes, billing and payment reconciliation, as well as reporting and dashboards that will ensure a consistent, compliant, intuitive user experience that meets the specifications of the Personnel Cabinet and participating agencies for all eligible participants, Insurance Coordinators and Billing Contacts. The Vendor shall lead early gap analysis and resolution identification sessions for the Commonwealth’s required Benefits Accounting specifications and facilitate design decisions that will contribute to subsequent business processes, organizational change management, and solution design activities for this area of functionality for the project.

The Commonwealth expects the Vendor to develop a plan to guide the planning and design effort; educate the workgroup and designated stakeholders on the functionality of the Solution pertaining to benefits accounting, reconciliation and reporting; provide guidance based on other Commonwealth modules or comparable implementations; incorporate a means by which broader input can be gathered and considered; and demonstrate multiple iterations of the design within the Solution to achieve Commonwealth approval.

Business Process Design Deliverables:

To-be business process and roles design Documented Benefits Administration & Billing Solution specifications resolution for the modules/functionality procured (including all the business processes, forms, workflow, data and reporting and analytics required to operate these components). The Commonwealth also expects that the corresponding general specifications and technical specifications will be met accordingly with the components implemented Requirements for configured and custom Application Programming Integrations (APIs) /Integrations, including the need for integrations to and from the Commonwealth’s existing Kentucky Human Resource Information System (KHRIS) and other designated legacy systems, which may include the Commonwealth’s Identity Access Management (IAM), CGI Finance and others until such time as all such legacy systems have migrated to the new Benefits Administration & Billing Software solution (where applicable) Reports, Forms, and Dashboards inventory Software Gap Inventory

Table 3: Design Responsibility Matrix

Develop Benefits Accounting Plan and Design

Configure and Prototype Phase Software Configuration The Vendor shall lead the configuration of all application software in accordance with the to-be business process design. The Vendor shall use the highest applicable industry standards for sound and secure software configuration practices. The "highest applicable industry standards" shall be defined as the degree of care, skill, efficiency, and diligence that a prudent person possessing technical expertise in the subject area, and acting in a like capacity, would exercise in similar circumstances.

The Commonwealth believes that early and frequent access to the solution during the design and configuration phases will allow the Commonwealth to progressively refine its understanding of the Billing Administration & Billing Solution modules/functionality and how they can be implemented in the Commonwealth. The Commonwealth expects the Vendor’s approach to provide iterative prototyping of the software configuration throughout the Configure and Prototype Phase to validate the design of business processes, provide knowledge transfer, and identify organizational change impacts.

Software Configuration Deliverables:

Configuration Management Plan Project Team Training on Configuration Tools and Processes Configured Application Software Updated Configuration-related Aspects of Software Documentation

Table 4: Software Configuration Responsibility Matrix

Technical Team Support Working in partnership, the Commonwealth expects the Vendor to support the management and coordination of all project-related technical team activities. The Vendor shall provide a Technical Lead, Integrations Lead, Data Conversion Lead, Reporting Lead, and a Testing Lead. (One person may be able to perform more than one role.)

The assignment of the technical tasks will be agreed between the Vendor and the Commonwealth. For example, as discussed below, the Commonwealth will be responsible for some of the technical activities, such as extracting data from legacy systems for conversions or for ongoing solution use. The Vendor technical resources will provide technical expertise on software and support development and will work with the Commonwealth technical director on architecture/strategy for conversions, conversion loads, integrations, security and other technical areas.

Integration For the purposes of this Statement of Work, integration (or APIs) is defined in broad terms as two systems sharing data, regardless of the batch or real-time nature of the data exchange. It could also include sharing of a business process or workflow and, where possible, a real-time processing of data or the elimination of duplicate data residing in two systems.

The Vendor is responsible for at least 80% of the integration technical effort, and the Commonwealth will perform no more than 20% of the integration work. The Commonwealth will provide technical resources to extract data from and load data into the Commonwealth’s legacy systems. The Vendor shall provide technical expertise on software and support development to lead the Commonwealth Technical Team Lead on architecture/strategy for integrations and lead the Commonwealth Technical Team Lead in planning and coordinating technical work. For reference, the Commonwealth has identified the existence of 35 inbound/outbound integrations in the existing legacy solution for Benefits Administration & Billing via KHRIS. The newly procured solution must also be able to enable APIs/integrations for the Commonwealth’s future ERP HCM solution.

Based on the Integration Strategy prepared during the Design Phase, the Vendor shall support the Commonwealth in preparing an Integration Plan document that shall include but is not limited to:

Validation and assessment to confirm the inclusion of integration candidates;

Identification of secure data transfer needs for third parties;

Identification of responsibilities and Commonwealth personnel assigned as contact for the integration; and Graphical representation of the integration environment.

The Vendor shall provide the following services for integrations:

Supporting and assisting with all activities related to interfacing data with the new Benefits Administration & Billing Solution (modules/functionality) and other software applications within scope, including the coordination of integration development efforts;

Developing a detailed Data Integration Plan document;

Provide templates for integration design and develop its share of programming specifications;

Performing unit testing of its share of the integration programs;

Developing reports and other means for Commonwealth personnel to audit the results of interfacing;

Facilitating integration user acceptance testing; and Developing mechanisms for monitoring and notification for use in the production environment that immediately alerts specified Commonwealth personnel when real-time integration issues occur between the Benefits Administration & Billing Software Solution and other Commonwealth software applications within scope.

The Commonwealth shall be responsible for subject matter knowledge of existing integrations and associated data. The Commonwealth shall also provide for the coding of integration programs that transform and load data to the new Benefits Administration & Billing Software Solution and other software applications within scope in accordance with program specifications.

Commonwealth SMEs are expected to be available to consult with the Vendor during the development of the Integration Plan and specifications, and to assist with the determination and adoption of acceptable alternatives to integrations wherever feasible. The Commonwealth shall be responsible for coding the legacy application side of the integrations.

Integration Deliverables:

Integration Plan Development of automated integrations, which include scheduling and alerts for processing issues Integration Platform (if applicable) and Integration Training of Commonwealth Personnel on Use and Support

Table 5: Integrations Responsibility Matrix