DRAFT SOO CIO Product Management Strategy Support.docx

Internal Revenue Service – Office of the Chief Information Officer Statement of Objectives (SOO) Product Management Strategy Support in line with IRA Objective 4.2

1.0 Background on the IRS

The Internal Revenue Service (IRS) mission is to provide America’s taxpayers with top-quality service by helping them understand and meet their tax responsibilities, while enforcing the law with integrity and fairness to all. The IRS receives revenue from a variety of taxes, including individual and business income, estate and gift, employment, and excise taxes. The IRS also routinely interacts with small and large businesses, partnerships, domestic and foreign financial institutions, governmental organizations (including Federal, state, and foreign entities), Indian Tribal governments, and tax-exempt entities (such as charitable organizations, foundations, universities, and trusts), as well as a wide spectrum of intermediaries and professionals who support effective tax administration, including payment and payroll service providers, enrolled agents, Certified Public Accountants, and return preparers. The IRS employs over 75,000 employees in nearly 500 locations.

2.0 Ambition for a Digitally Transformed IRS

For years, the American public has gotten used to conducting its business and receiving services from a wide variety of vendors including, for example, retailers, banks, insurance companies, and others, by using online digital tools via easy-to-use interactions. When it comes to interacting with the government, including the IRS, digital service options are severely lacking.

In recent years, the IRS has made several changes to modernize and improve tax processing systems, to increase electronic filing and payment options, to improve tools and applications for front-line employees to provide better services, and to expand direct services on IRS.gov for taxpayers and tax professionals. However, there are still significant gaps in basic transactions that taxpayers cannot conduct digitally and must use legacy service channels such as call centers, US Mail, and walk-ins (TACs). The expectations of taxpayers, the tax community, and the nation in general continue to evolve and the IRS needs to consider providing more modern tools, products, and platforms to conduct business and complete the activities necessary to administer effective tax compliance.

In particular, pursuant to the Inflation Reduction Act (IRA) of 2022, the IRS Commissioner has laid out an ambition for a digitally transformed IRS where:

· Taxpayers, should they choose, can easily complete most of their tax activities online and find online the information they need with regards to their taxes and available IRS services

· IRS employees are effectively equipped with the essential technology (e.g., computers, wifi, scanners, applications) for their day-to-day performance and can intuitively access the data, reports, and analytics required to process returns, assist taxpayers, and catch fraud Achieving this vision of a digitally transformed IRS will require fundamental changes to the current IRS Information Technology (IT) ways of working (IRS SOP Objective 4.2) to be more customer-centric and emphasize greater speed in value delivery to the taxpayer and IRS employees. It will require shifting away from feature-based management and long-lead time modernizations to technology solutions informed by holistic customer and IRS business needs and which emphasize enabling seamless end-to-end customer experience journeys.

Adoption of Product Management (PdM) is a widely accepted industry standard for allowing an organization to move towards greater customer-centricity and delivery agility which brings accelerated time-to-market, efficient resource allocation, and strategic alignment. Organizations that embrace PdM experience a 20-50% reduction of production software delivery timelines while also increasing user adoption and delivering value. These benefits are recognized because of a customer-centric problem solving approach towards software development. Today, the IRS uses elements of PdM in specific pockets of its organization, such as but not limited to its Office of Online Services (OLS), Individual Online Accounts (IOLA), and the Business Master File (BMF) Modernization. IRS IT is also taking active steps to encourage and scale PdM adoption in its programs, e.g.,

· Establishing PdM Community of Practice (CoP) to sit under the Office of the Chief Information Officer (OCIO)

· Accelerating hiring and deployment of product managers within targeted IT programs / products

· Launching an IT enterprise-wide education campaign around PdM (e.g., at its leadership offsite)

· …among others

However, use of PdM overall remains nascent and underdeveloped within the IRS and its IT organization. One approach to solve for this gap is to team selected IRS employees with expert vendor support to further mature PdM capabilities. In the subsequent sections, this market research document describes recommendations on how vendor support can be effectively structured to develop IRS’ PdM capabilities.

3.0 Scope of Work and Description of Tasks

The scope of this effort involves supporting the OCIO and relevant IT programs within the IRS IT portfolio in building out and maturing a PdM Community of Practice (CoP) at the IRS IT enterprise level as well as deploying embedded product managers and setting up initial PdM adoption within an agreed-upon subset of high-priority IT programs / products (not exceeding 5 programs / products, to be selected). These initial priority programs / products are just a starting point with opportunity to further scale PdM efforts across additional 15-20 program / products in a similarly rapid manner, once the original efforts are underway and have demonstrated success.

Subtasks are as follow:

Position Description

Product Manager: Responsible for overseeing the development, prioritization, and delivery of software that solve first principle problems for their stakeholders and software users. Acting as the primary liaison between the various business units, the PM ensure alignment between strategic objectives and technical execution. They do this by collaborating closely with stakeholders, end users, and software developers to understand pain point and end-to-end life process lifecycles that drive the software development lifecycle.

3.1 Sub-Task 1: Strategic Integration of Contractor Support

Summary: The contractor shall ensure the IRS team remains informed and consulted on work progress and outcomes for the scope detailed in this PWS. It shall also put in place the relevant mechanisms to ensure quality, integrity, and reliability of delivery across all sub-Tasks.

Performance Requirements:

Contractor requirements include:

· Conducting an initial support kick-off meeting to review workplan, align on IRS-contractor teaming and communication approach, and assure agreement to the workplan for delivery of requirements

· Coordinating with the COR or relevant IRS counterpart to facilitate staff onboarding and offboarding, annual IT security training, and processing of new contractor personnel background investigations

· Coordinating across the enterprise IT PdM Community of Practice and individual IT programs / products where product managers are being deployed as part of this PWS

· Producing monthly reports synthesizing status across requirements, major progress to-date, and elevating any delivery risks (if and when relevant)

· At least monthly and upon request, participate in briefings about the work throughout the period of performance, including periodic quality reviews of in-process work

Deliverables:

Deliverable 1.1: Support Kick-Off Meeting and Materials Deliverable 1.2: Monthly Status Report Deliverable 1.3: Delivery Briefings, at least monthly and upon request

3.2 Sub-Task 2: IT Enterprise PdM Community of Practice (CoP)

Summary: The contractor shall support continued stand-up and initial build-out of a PdM Community of Practice at IRS IT before expanding to the entire enterprise. The CoP will initially sits under the OCIO and is tasked with accelerating adoption of product management capabilities within high-priority IT modernization programs. The CoP will play a critical role in setting the standards for PdM adoption with input and ideas from the entire enterprise across IRS IT and, will need to drive development and dissemination of best practice methodologies, tools, and artifacts as well as support broader education and engagement on PdM topics both within and outside of IRS IT.

Performance Requirements:

Contractor requirements may include:

· Helping define and refine IRS IT PdM CoP model such as clear articulation of scope / charter and clarity on roles and the interaction between the CoP and individual product managers embedded in IT modernization programs

· Recommending best-practice metrics and OKRs for adoption of effective PdM approaches at both the IT enterprise and individual program levels, including at initial programs / products which are to receive Product Managers in the nearer-term

· Developing and maintaining a knowledge repository of PdM approaches and practices (e.g., standardized onboarding and training materials, artifact templates for user journeys / personas, framework for effective engagement of BODs)

· Supporting broader education and communications pertaining to PdM across IRS IT and beyond individual programs (e.g., session at annual LT offsite, update to the CIO or at a SET meeting on PdM adoption, townhall spotlight on the value of PdM)

· Upon request, informing target profiles, capabilities, and position descriptions needed as part of PdM hiring efforts across IRS IT and advising on pathways to secure longer-term PdM resourcing for specific IRS IT programs

Deliverables:

Deliverable 2.1: CoP charter, roles, and interaction model Deliverable 2.2: PdM metrics at enterprise and program / product level Deliverable 2.3: PdM knowledge repository (e.g., BOD engagement framework, user journey template, standard PdM onboarding materials) Deliverable 2.4: Materials for PdM education and communication events Deliverable 2.5: Recommendations on target product manager profiles, to inform hiring needs

3.3 Sub-Task 3: Product Management

Summary: The contractor shall provide product managers to be embedded across an agreed-upon subset of IT programs / products for 6-12mths (varies based on program / product needs). Specific IT programs / products to receive product managers will be agreed upon jointly between the contractor and the IRS, in line with the IRS’ broader strategic priorities and high-priority OKRs under the IRA SOP. As part of the deployment of product managers, the contractor shall also help each IT program / product stand-up a fuller cross-functional product team (e.g., with relevant IT domains and Business counterparts) and deliver an initial PdM training and onboarding curriculum to relevant program team members.

Performance Requirements:

Contractor requirements may include:

· Providing product managers to be embedded across an agreed-upon subset of IT programs / products with aim of introducing initial PdM practices into selected programs and enabling broader program team in learning and adopting PdM methodologies within the context of ongoing program delivery

· Supporting stand-up, as relevant, of cross-functional product teams for each selected program (e.g., consisting of key IT domains and business counterparts) and consistent with a standard product team operating model defined by the IRS IT PdM CoP

· Hosting and delivering initial PdM training and onboarding for relevant product team and existing program members, consistent with standard educational materials and methodologies defined by the IRS IT PdM CoP

Deliverables:

Deliverable 3.1: Provisioning of embedded full-time product managers for no more than 5IT programs / products Deliverable 3.2: Support for stand-up of product teams / op model for each selected program / product Deliverable 3.3: Delivery of initial PdM training and onboarding for each selected program / product

3.4 Sub-Task 4: End-to-end Customer Journeys

Summary: For a mutually agreed-upon subset of IT programs / products for which the contractor is providing a product manager, the contractor shall develop customer personas and E2E journeys that may enable a better understanding of overarching customer needs – both taxpayer and IRS business employee, as relevant to each specific program / product or a more narrow use case. Understanding and segmenting out customers is critical for informing major friction points in today’s customer experiences and where each IT program / product can best address these friction points as well as tailor engagement and messaging to its IRS business counterparts. The same E2E journeys and persona(s) may be applied or have relevance across more than one program / product / use case and the contractor is not expected to duplicate effort when a customer journey / persona is applicable more broadly.

Performance Requirements:

Contractor requirements may include:

· Creating customer personas, current state E2E customer journeys, and target state E2E customer journeys that capture taxpayer and IRS business customers relevant for an IT program / product; the contractor may leverage and synthesize any existing persona findings and E2E customer journeys to ensure consistency and reduce duplication of effort

· Analyzing existing (and new, where needed) data to categorize taxpayer and employee need and augmenting data analysis with targeted engagement with business and IT stakeholders (e.g., via interviews, workshops, ride alongs, prototyping) to inform journey mapping, consistent with human-centered design (HCD) best-practice tools and methodologies; the contractor may leverage and synthesize any existing data analyses to ensure consistency and reduce duplication of effort

· Synthesizing engagements into insight on key customer friction points that exist today and recommendations and options for target state journeys that address frictions and implications on delivery of a given IT program / product

· Identifying interdependencies and commonalities across customer needs that may bear relevance to multiple IT programs / products and may be of IT enterprise significance

Deliverables:

Deliverable 4.1: Synthesized customer persona(s) Deliverable 4.2: Current state and future state E2E customer journey map(s)

3.5 Sub-Task 5: Business Use Cases and Program Roadmap

Summary: For a mutually agreed-upon subset of IT programs / products for which the contractor is providing a product manager, the contractor shall support the program / product team in identifying customer use cases and features that can help address friction points in today’s customer journey(s) and move the given program / product towards the defined future-state customer journey(s). The contractor shall also apply a comprehensive use case prioritization framework, informed by any standards set by the enterprise IT PdM CoP, to evaluate use cases and translate into a sequenced backlog and program / product delivery roadmap. These efforts should culminate in a clear identification and articulation of program / product business value to the taxpayer and IRS business employees.

Performance Requirements:

Contractor requirements may include:

· Elevating potential use cases and features for program / product delivery as informed by on-going customer engagement and developed customer persona(s) and E2E journey(s)

· Adopting and adapting use case prioritization framework, as informed by any methodology proposed by the enterprise IT PdM COP, that assesses use cases based on alignment to IRS strategic priorities, impact and value to business operations and business taxpayers, and technical feasibility of proposed solutions (including risks / dependencies)

· Facilitating and supporting engagements with relevant Business and IT stakeholders to inform development of use cases and prioritization of use cases into a regularly maintained backlog, consistent with IRS strategic priorities and IRA SOP / OKRs

· Translating the prioritized use cases and backlog into a refreshed program / product roadmap; the roadmap should balance incremental capability and value delivery with longer-lead time technology modernization, as relevant

· Synthesizing insight gleaned from development of use cases and roadmap into a clear program / product business value articulation that can be used for engagement with non-IT stakeholders

Deliverables:

Deliverable 5.1: Prioritized backlog of use cases / features Deliverable 5.2: Refreshed program roadmap Deliverable 5.3: External-facing business value articulation

3.6 Sub-Task 6: Creation of User Feedback Loop

Summary: For a mutually agreed-upon subset of IT programs / products for which the contractor is providing a product manager, the contractor shall advise IT program / product teams on how to best prepare end-users and Business stakeholders for the release of new features, updates, or enhancements. While technical delivery teams will continue to own agile development, user testing, and demos as part of releases, the contractor shall provide recommendations and high-level guidance on the user testing approach being used by a given program / product based on best practices.

Performance Requirements:

Contractor requirements may include:

· Reviewing and understanding current user testing approaches used within given program / product by existing technical delivery teams (e.g., through interviews, assessment of existing document and plans)

· Comparing current approaches to best-practices in user testing, in line with PdM and HCD methodologies and standards set by the enterprise IT PdM CoP, and identifying gaps (if any) to the defined best practice

· Synthesizing into high-level recommendations and guidance for the program / product team on opportunities to adjust its user testing plan and model (if needed)

Deliverables:

Deliverable 6.1 High-level user testing recommendations

4.0 Delivery

All deliverables shall be sent to the IRS’s Contracting Officer’s Representative (COR). Below are representative Deliverables and Work Products Sub-Task #1: Strategic Integration of Contractor Support (FFP)

Sub-Task #2: IT Enterprise PdM Community of Practice (CoP) (FFP)

Sub-Task #3: Product Management (FFP)

Sub-Task #4: End-to-end Customer Journeys (FFP)

Sub-Task #5: Business Use Cases and Program Roadmap (FFP)

Sub-Task #6: Creation of User Feedback Loop (FFP)

7.0 Contractor Onboarding/Security Requirements

7.1 Staff-Like Access Definition and Requirements.

Only those contractors/subcontractors who require staff-like access to IRS systems, data, or facilities will follow the outlined process below. Those whose access is infrequent or will not require staff-like access will be 100% escorted while in IRS space. Escort access is only permitted for infrequent access to IRS facilities and is NOT permitted if subjects require sensitive but unclassified (SBU) data access or systems access. Contractors are not permitted to have “staff-like access” to IRS facilities, systems, or SBU data until they are determined to be both eligible and suitable to perform work as an IRS contractor by IRS Personnel Security. Each contractor assigned to work under an IRS contract shall undergo investigative processing commensurate with the risk level designation associated with the work to be performed, and comparable to that required for Federal Employees who occupy the same positions and who have the same position sensitivity designation.

7.2 Eligibility requirements.

Contractors must be eligible for IRS contract employment prior to submitting investigative forms/documentation used to determine their suitability. The contractor must communicate the eligibility requirements to their employees up front and state that only employees who meet the eligibility requirements should apply for IRS contract employment.

7.3 Suitability Screening Requirements

Once deemed eligible, contractors will be screened for suitability or fitness for duty based on their backgrounds. This process begins with timely submission of required investigative forms. The Contractor shall assign a Contractor Point of Contact (POC) to manage this process. Contractors needing staff-like access are not permitted to begin work on the contract until the required forms and documentation have been completed and properly submitted to PS (incomplete/inaccurate forms will be rejected by PS); and PS has granted, at a minimum, interim staff-like access approval to the contractor/subcontractor. Only those needing staff-like access are required to submit the forms.

7.4 Submission Requirements

Submitting a contractor package with missing or incorrect information will delay the on-boarding process. PS will not start the background investigation process until all required documentation is submitted complete and accurate. The Government will reject forms that are incomplete, illegible, inaccurate, and contradict other forms in the package.

The Contractor POC will send all the required forms by their associated due dates via encrypted e-mail or file transfer to the IRS.

7.5 Contractor Employee Training Requirements

Security Awareness Training is a requirement for IRS contractors (including subcontractors) to be completed within 15 business days of receiving approval of interim staff-like access to any IRS contract and annually thereafter. Contractor must complete the required contractor security training; Security Awareness Training (SAT) Form 14616 and UNAX Form 11370.

8.0 Place of Performance

Work will be performed remotely or at an IRS location, as needed.

9.0 Travel

The Contractor may be required to travel to support project activities as determined by the IRS. Prior approval must be obtained from the IRS client before any travel is undertaken.

10.0 Period of Performance

The anticipated period of performance for this Base plus 1 Option Year contract is as follows:

11.0 Government Furnished Property

The following Government Furnished Property (GFP) shall be provided to the Contractor:

Note: The awarded contractor is responsible for tracking and obtaining their badge, laptop and any other GFP once notified by government personnel.

The following Government Furnished Information (GFI) will be provided to the Contractor upon receipt of a clearance approving individual personnel for work on the Task Order:

Access to GFI required for performance of the task requirements (such as datasets, tools, and other information stored on IRS SharePoint, shared drives, and systems) will be furnished through IRS laptops and authorized user accounts.