BAFO_Attachment_12_Arizona_HRIS_Pricing_Attachment_-_Amendment_1.xlsx

Instructions Attachment 8: Arizona HRIS Pricing Attachment

Worksheet Notes & Assumptions

Attributes Common Across All Attachment 12 Worksheets:

• CGI's is proposing a firm fixed-price for the scope described in our proposal.

• All dollar values are rounded to the number of decimal places displayed. There are no hidden decimals to distort the simple calculations for sums of rows or columns of numbers.

• Although elements of our solution are subject to state, county, and city Transaction Privelege Tax (sales tax), per ref # 89 from the State's Q&A response from 11/29/21, the amounts presented in Attachment 8 do not include these taxes. A tax line item will be included in the awarded contract.

Notes for Summary Level Pricing:

• We have modified the duration shown for Phase 1B from 12 months to 9 months, consistent our project plan.

• We have modified the placement of the Phase 2B HyperCare entries from Year 4 to Year 3, consistent with our project plan.

Approach & Notes for the Alt Year 1 & Alt Year 2 Phase 1A Detail Worksheets:

• We revised the deliverables list provided in this template to align with the deliverables presented in the mulitple deliverables tables provided in Sections 5 through 16 of the Solicitation Requirements document (spanning pages 9-30 of the document).

• We have provided both a Draft and Final version of each deliverable where applicable per our work plan

– The "DRAFT" version of a deliverable is its Deliverable Expectation Document (DED), which will define the deliverable in sufficient detail, including an outline of the contents of the deliverable and its acceptance criteria.

– The "FINAL" version of a deliverable is the completed deliverable presented to the State for acceptance for Phase 1A.

• Our numbering scheme provided as part of the PWS Deliverable Name includes:

– Indication if the deliverable is Draft or Final.

– Abbreviation of the deliverable table from the Solicitation Requirements document that was the source for the deliverable (PM = Project Management; IP = Implementation Planning; BPR = Business Process Review; FGP = Fit-Gap Process and Requirements Traceability Matrix; SD = Solution Design; INT = Interfaces; RPT = Reporting; ENH = Customization/Enhancements/Extensions; CONV = Data Conversion; DEPLOY = Deployment; TEST = Testing; GL = Production Tranfer (Go Live); OCM-TRN = Change Management & Testing).

– Entry number from the source table.

– Deliverable name from the source table.

• In addition to the deliverables from the tables in the Solicitation Requirements document, we have added a project management deliverable for the Project Kickoff Presentation, which is numbered "0".

• We have included deliverables for weekly and monthly Project Management Status Reports. The PWS Deliverable Name indicates how many of the respective reports fall in each year of Phase 1A and the fixed fee for each report. The value presented in the Billable Milestone Amount column is the grand total price for the number or reports indicated.

• The deliverables have been assigned to Year 1 and Year 2 based on the schedule from our work plan.

• Our fixed price for Phase 1A was allocated to this revised deliverables list that's consistent with the Solicitation Requirements document. During contract negotiations we look forward developing a more simplified list that aligns with our hybrid-agile development methodology with the goal of developing a performance-based payment schedule for implementation.

• PWS #25 and #26 on the Year 1 worksheet are the Quality Management Plan deliverables, which are listed twice in the Project Management Deliverables table in Section 5.1.1 of the Solicitation Requirements document. We assume there should be just a single instance of this deliverable. The PWS Deliverable Name uses both entry numbers (PM-11,16).

• PWS #76 (Year 1) and #6 (Year 2) for Custom Report Code is shown as $0. The Solicitation Requirements document specifies that the contractor will only be performing report design.

• We have modified the captions in the Hosting section at the bottom of each worksheet that brings forward the hosting costs for the year to indicate a quantity of "1" and a unit of "YEAR".

Approach & Notes for Alt Year 3 - Phase 1B Detail (included in Alt Year 3 - Phase 1B, 2A & 2B Worksheet):

• We used the same approach described above for the Phase 1B deliverables list.

• The Phase 1B deliverables will consist of updates to the final Phase 1A deliverables. As such the deliverable naming reflects "UPDATED" instead of "DRAFT" or "FINAL".

• PWS Deliverable # 11 FINAL: DEPLOY-3 Disaster Recovery Plan Completed is strictly a Phase 1A deliverable. It will not be updated during Phase 1B and is not included on this deliverable list

• The number of Project Management Status Report deliverables is consistent with the 9-month duration of Phase 1B.

• PWS #13 is the update of the Quality Management Plan deliverables, which is listed twice in the Project Management Deliverables table in Section 5.1.1 of the Solicitation Requirements document. We assume there should be just a single instance of this deliverable. The PWS Deliverable Name uses both entry numbers (PM-11,16).

• PWS #55 for Custom Report Code is shown as $0. The Solicitation Requirements document specifies that the contractor will only be performing report design.

• We have modified the captions in the Hosting section at the bottom of each worksheet that brings forward the hosting costs for the year to indicate a quantity of "1" and a unit of "YEAR".

Notes for Alt Year 3 - Phase 2A & Phase 2B (included in Alt Year 3 - Phase 1B, 2A & 2B Worksheet):

• We renamed the tab for Phase 2B to reflect that it's scheduled for Year 3 in our work plan.

• If the State exercises its option to extend either or both HyperCare phases, CGI would look forward to also right-sizing the HyperCare team to align with the State's support needs.

Notes for Hosting Worksheets:

• Our SaaS subscription is a comprehensive bundled offering based on the discrete applications necessary to meet your RFP requirements. Our proposed subscription price is driven by your full-time employee counts, which in turn drive the solution sizing.

• We have merged the annual pricing cells throughout the hosting worksheets and have provided a single subscription amount for each of the 15 years of the project.

• Our SaaS fees ramp-up during the initial deployment period of the project, which provides for full State user usage by year 3 when the solution is enabled in production; once deployed in production, the SaaS fees reflect the State's requested solution. Additionally to assist the State with their annual budgeting process, we are offering the State leveled SaaS fees for each year of the second five-year segment, followed by a single escalation and then leveled SaaS fees for each year of the 3rd five-year segment.

Notes for O&M - Labor Hour Worksheet:

• The O&M rate card provides hourly rates commencing in year 3 of the contract. Year 3 rates (starting July 2024) remain constant for year 4. Thereafter our rates escalate once every three years based on an expectation of an annual COLA increase of 1.5%. Starting on July 1, 2025 and annually thereafter, CGI may request an increase in rates by a percentage amount equal to the percentage increase as provided by the Consumer Price Index for All Urban Consumers (“CPI-U”) for the Phoenix, Arizona area as published by the Bureau of Labor Statistics minus 1.5% if the CPI-U exceeds the planned 1.5% annual basis.

• As described in our response to Question 6 Technical/Ops and Maintenance Services, CGI can provide a flexible capacity-based model to help sustain continuous business improvement after the implementation. These local support services (LSS) are customized to meet your needs. Examples of services that can be provided through the capacity-based model include:

– Leveraging new innovations that are regularly delivered as part of ADOA's Advantage Cloud SaaS subscription.

– Streamlining business processes.

– Increasing efficiencies, and improving decision making (e.g., through applying analytics and predictive modeling) for greater HRM enterprise efficiencies.

– Assisting with the analysis of impacts from regulatory changes and determining how best to address those regulatory changes.

• We can offer discounts from the rates provided for a long-term LSS commitment.

Notes Travel Worksheet:

• For planning purposes, we have modified the travel cost table to provide travel estimates based on a standard basis per traveler. Our experience has shown that short term travel into the Phoenix area averages $1,500 per traveler per week for short term travel (up to 2 weeks per trip) and $5,000 per month for longer durations.

• During project execution, we will get pre-approval from the State for any required billable travel and will use the State's guidelines and expense limits for the billing of the approved travel back to the State.

Optional Pricing:

• Additional non-prod environments:

– One-time fees = $62,000

– Ongoing annual fees = $103,000

• Additional DB storage for production environments: per 100GB monthly fees = $200. 100GB of production data equates to 1.26 TB of storage across production and non-production environments.

Each 100GB includes storage for the production and two non-production databases.

• Additional DB storage storage for non-prod environments: per 100GB monthly fees = $43

• Additional licenses of LMS periodic non-State workers is available in blocks of 1000 users starting at $2,000 with annual escalations

• Additional licenses of Recruiting and LMS based on State user usage is available in blocks of 1000 users starting at $19,000 with annual escalations

Pricing Assumptions:

• Our solution price is based on award of the scope of work described in our proposal. Changes to the scope work may require recasting the price of our solution.

• While our detailed deliverable pricing is consistent with the guidance in the RFP, we would like to revise the detailed pricing tabs during negotiations to align with our hybrid-agile development approach, with the goal of developing a performance-based payment schedule for implementation. Refer to Attachment 12 Alternative Approach for our proposed performance-based milestone schedule.

• In the State's commitment to keep AFIS technology current, our proposal assumes the contract for the AFIS Advantage 4 upgrade, scheduled to start in April 2022, will be fully executed by March 2022.

• When in-person implementation activities are needed and have been mutually agreed to, the State will establish a suitable work environment for CGI staff. This work environment usually includes accommodations and workspace for CGI personnel who will work onsite, internet, and computer systems connectivity, and any hardware and/or software resources required for the project.

• Our solution pricing and scope of work described in our proposal assumes the State will perform the necessary report and analytics development; CGI assumes the design for 20 reports and 20 analytics.

• To acheive the State goals of a modern solution, CGI price includes the configuration of up to 30 business roles, home pages, widgets will meet the State's user experience objectives.

• Our Advantage Insight supports up to 900 concurrent users, across the State, that would benefit from the use the solution's embedded analytics for data driven decisions.

• The State would be responsibile to acquire Power BI Pro Commercial licensing to support the State's report development (required to publish, schedule, and perform administrative actions).

• Our solution includes Advantage Sofia, which is our self-learning, virtual assistant to which we have assumed pricing at 5% of the State's FTE's concurrent usage.

• Our proposal timeline, implementing in two (2) phases, is consistent with the State's RFP. As part of our implementation, a Disaster Recovery Exercise (DRE) will be performed to test the connectivity, test the process, and provide knowledge transfer and experience to the State. Our proposed plan includes one successful DRE test prior to Phase 1A go-live.

• To acheive the State goals of a modern solution, CGI has assumed pricing for ten (10) file based extensions to meet the unique State user experience needs.

• Out of the box, Advantage HRM provides ten (10) pre-existing Advantage forms (i.e., paycheck, remittance notice, W2, etc.). Our pricing assumes CGI will modify up to 10 forms with the State's branding requirements.

• As part of our SaaS solution, CGI Advantage provides storage that includes the initial conversion of data and accounts for annual growth typical of our HR clients with similar size and complexity, taking the number of State employees (36,000) and number of transactions (average of 15 pay details and 20 deduction details per paycheck) into account. Our proposal includes the migration of the State's 2.5TB legacy data warehouse. Cornerstone storage for LMS and Recruiting is unlimited.

• For the proposed LMS and Recruiting solution, our pricing provides for full State user usage (34,000 36,000) by year 3, when the solution is enabled in production. Our pricing also provides for up to 34,000 non-state workers for periodic LMS usage. Annually non-State workers usage of the Learning platform will be evaluated and reset for the next annual period. See optional pricing. Increases to the State employee or non-state worker user base may increase SaaS fees.

• For the proposed Advantage Benefits solution, CGI assumes the State's retirees will only be accessing the application during open enrollment and life events.

• For the proposed Advantage Benefits solution, CGI confirms the State's Universities will send benefits information for their employees from their Peoplesoft system; their employees will not have access to the HRIS Replacement solution.

• The State will provide a hosted SFTP server to support the transmission of data to and from external systems.

• For our LMS and recuriting solution, CGI assumes that centralized processes and configuration meetings will occur with only one set of stakeholders

• As part of our overall solution, CGI assumes that Business Process Alignment, Governance and Change Management Workshops will be facilitated once to identified key stakeholders and that the workshops will not be repeated for different groups.

• Our LMS and recruiting solution includes system Admin training sessions for up to 10 system administrators (this includes train the trainer)

• Our LMS and recruiting solution includes the migration and import of up to 1,000,000 historical training transcript records from legacy systems

• Our LMS and recruiting solution includes the migration of up to 1,000,000 job requisitions, candidate, and application records

• One LMS self registration and landing page will be configured for the periodic non-State workers to access LMS.

Alt Pricing Explanation

CGI Response for Performance-Based Payment Schedule

RFP # BPM003932 for the State of Arizona’s Human Resources Information System (HRIS) Replacement project, instructed the proposers to provide the price for project deliverables identified by the State via Attachment 8 (Arizona HRIS Pricing Attachment). While our proposal included the detailed deliverable pricing consistent with the guidance defined by the RFP, we had requested an opportunity to revise the detailed pricing worksheets during negotiations to better align with our hybrid-agile development approach, with the goal of presenting a performance-based milestone payment schedule for the implementation phases.

During the negotiations for the HRIS Project, the State requested CGI present our performance-based milestone payment schedule for consideration. In this document, we present our proposed performance-based milestone payment schedule based on the following criteria:

• Our proposed AdaptiveSI implementation methodology has evolved and been incrementally improved upon over the past 40 years of state and local government implementations, resulting in an evolution of repeatable processes, accelerated delivery, enabled agility, strong governance, and organizational change that successfully broke-down barriers and fostered adoption. By employing our methodologies, the State will achieve the following benefits:

- Enhanced team collaboration and project efficiency – The integrated State and CGI team share the same goals, objectives, and mutual expectations, establishing a more collaborative project culture supported by strong governance for effective decision making and risk mitigation. An integrated project team that leverages common, reusable project assets and accelerators, ultimately improving their overall productivity while lowering labor costs.

- End-user adoption and cultural change – A combination of organizational change management and human-centered design disciplines focus on the needs of the State's stakeholders, collaborative engagement, effective communication, and promoting acceptance of the changes to come, thus creating a conduit for helping stakeholders understand, engage, adopt, and endorse the new HRIS solution.

- Cultivated agility and transparency – This agile implementation process makes it possible to accommodate change, to obtain feedback early and often, pivot quickly, if needed, and deliver additional functionality with each next iteration, reducing risk early and adjusting the process dynamically with early hands-on access to the solution as it is being configured.

- Improved quality – The iterative process addresses quality throughout the project lifecycle and is particularly adapted to achieving the highest quality by offering consistent progress and value measurements and corrective opportunities to achieve product excellence, data accuracy, and most importantly user satisfaction.

• Our price for the HRIS implementation project remains unchanged, i.e., there is no difference between the price included in our proposal consistent with the State’s guidance in the RFP and the performance-based payment schedule in this document.

• Our performance-based milestone payment schedule will significantly reduce the number of HRIS project deliverables and associated deliverable expectation documents (DED), thereby, reducing the time and effort required by the State to administer the processes required for the review and approval for each of the HRIS project deliverables. In exchange for deliverables, CGI will provide less formal, more collaborative documentation in the form of work products and wrapper documents.

Our performance-based milestone payment includes the following information:

NOTES:

1. The tasks and activities will result in the creation of the project deliverables identified in the RFP

2. Acceptance Criteria for the project deliverables will be established during the Sprints planning process

3. Each sprint will include components of the HRIS application functionality to be implemented per the project plan

4. Project Management Services will include:

Project schedule updates Issue Management Risk Management Decision Logs Action Item Logs Bi-weekly status reports Monthly status reports

5. Each Sprint will include one or more of the following activities:

Status Reporting Project Management Services Reporting and Analytics Services Forms and Extension Services Business Roles and Application Security Services Application Configuration Services OCM Services Training Services Testing Services Cutover Services Please refer to the Alt Year 1 - Phase 1A, Alt Year 2 - Phase 1A and Alt Year 3 - Phase 1B, 2A & 2B worksheets for the performance-based milestone payment schedules, as well as the Alt Summary Level Pricing worksheet (Worksheets with LIGHT GREEN colored tabs). These performance-based milestone payment schedules and pricing summary will replace the following worksheets in BAFO - Attachment 8 (Arizona HRIS Pricing Attachment) in their entirety (Worksheets with RED colored tabs):

• Summary Level Pricing

• Year 1 - Phase 1A Detail

• Year 2 - Phase 1A Detail

• Year 3 - Phase 1B Detail

• Year 3 - Phase 2A

• Year 3 - Phase 2B

The detailed performance-based milestone payment schedule may be recasted based on planning outcomes of the first quarter.

Alt Summary Level Pricing

Base Plus All Option Periods FFF Combined $ 64,417,800 $ 64,417,800

Travel Estimate for Planning Purposes $ 193,000 $ 193,000

Note: Labor Hour rates for Operations and Maintenance services are on the O&M - Labor Hour Worksheet

Please see the Worksheet Notes & Assumptions sheet.

Alt Year 1 - Phase 1A

stories to execute

stories to execute

Total Year 1-3 $ 24,233,800 $ 24,233,800 $ - 0

Alt Year 2 - Phase 1A

stories to execute

stories to execute

• Provide PM Services

stories to execute

stories to execute

Alt Year 3 - Phase 1B, 2A & 2B

stories to execute

system operations for Phase 1A

stories to execute

stories to execute

stories to execute

system operations

Hosting Worksheet Years 1-5

$ 13,745,000

Please see the Worksheet Notes & Assumptions sheet.

1331L519R13OS0005 Hosting Worksheet Base Option Periods 1-4 Attachment J.12

&P of

Hosting Worksheet Years 6-10

$ 16,280,000

Please see the Worksheet Notes & Assumptions sheet.

1331L519R13OS0005 Hosting Worksheet Base Option Periods 1-4 Attachment J.12

&P of

Hosting Worksheet Years 11-15

$ 17,960,000

Please see the Worksheet Notes & Assumptions sheet.

O&M - Labor Hour Worksheet

Please see the Worksheet Notes & Assumptions sheet.

1331L519R13OS0005…