ESBD_371873_1723662302779_452-24-BLC020 Legacy Systems Replacement Project.pdf

TDLR Legacy Systems Replacement Project

RFO No : 452-24-BLC020 RFO Main Document - Page 1

Texas Department of Licensing and Regulation

(TDLR)

Legacy Systems Replacement Project

Date: August 14, 2024

RFO#: 452-24-BLC020

Class/Item: 208-00, 208-20, 920-03, 920-05, 920-39, 920-40, 920-64, 920-45

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Table of Contents

1.0 Introduction

1.1 Statutory Authority and Project Overview

1.2 Project Background

1.2.1 Project Objectives

1.2.2 Project Guiding Principles

1.2.3 Current State Overview

1.2.4 Project Stakeholders

1.3 RFO Overview

1.3.1 Schedule of Events

1.3.2 Designated Contact

1.3.3 Pre-Offer Conference

1.3.4 Questions

1.3.5 Addendum

1.3.6 Attachments

1.3.7 Initial Term and Renewal

1.3.8 Option to Extend

1.3.9 Additional Services

1.3.10 Evaluation Process

1.3.10.1 Minimum Qualification

1.3.10.2 Evaluation Criteria

1.3.10.3 Offer Review Process

1.3.10.4 In-Person Presentations and Solution Demonstrations

1.3.10.5 Best and Final Offers

1.3.10.6 Contract Award

1.3.11 Invoicing

1.3.11.1 Submitting Invoices

1.3.11.2 Required Information for Invoice

1.3.11.3 Invoice Schedule

1.3.11.4 Invoice Review

1.3.11.5 Billing at Contract Termination or Conclusion

2.0 Scope of Work

2.1 Project Scope

2.1.1 Implementation Services

2.1.1.1 Project Initiation

2.1.1.2 Requirements Analysis and Validation

2.1.1.3 Solution Design

2.1.1.4 Development and Configuration

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2.1.1.5 Data Conversion/Migration

2.1.1.6 Testing

2.1.1.7 Training and Knowledge Transfer

2.1.1.8 Deployment/Go-Live

2.1.1.9 Hosting, Transition, and Post-Production Support and

Maintenance

2.1.1.9.1 Hosting

2.1.1.9.2 Production Support & Transition

2.2 Solution Capabilities

2.2.1 Future State

2.2.1.1 Functional Capabilities

2.2.1.1.1 Complex Business Capabilities to be Supported

2.2.1.2 Technical Capabilities

2.2.1.2.1 Applications for Integration

2.2.1.2.2 Technical Capabilities Summary

3.0 Contract Management Requirements

3.1 Contractor Project/Operational Manager(s)

3.2 Performance Management

3.3 General Non-Performance Remedies

3.4 Problem Resolution and Corrective Action Process

3.5 Contract Performance Report and Review

3.6 Insurance Requirements

3.6.1 Required Coverage

3.6.2 Additional Insurance Requirements

3.6.3 Failure to Obtain, Maintain, or Renew Required Insurance

3.6.4 Cyber Liability

3.7 Independent Verification and Validation

4.0 Offeror Solution Response Requirements

4.1 Submittal Instructions

4.1.1 Procurement Rules

4.1.1.1 Non-Conforming Offers

4.1.1.2 Cost of Preparation of Offers

4.1.1.3 No Copyrights

4.1.1.4 Concise Offers

4.1.1.5 Realistic Offers

4.1.1.6 Multi-Contractor Solutions (Joint-Ventures)

4.1.1.7 Discrepancies and Omissions

4.1.1.8 Offer Integrity

4.1.1.9 Collusion or Fraud

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4.1.1.9.1 Lobbying and Gratuities

4.1.1.10 TDLR’s Right to Reject Offers

4.1.1.11 TDLR’s Right to Cancel Solicitation

4.1.1.12 Amendment or Withdrawal of Offer

4.2 Offer Instructions

4.2.1 Offer Organization

4.2.2 Detailed Offer Instructions

4.2.2.1 Section 1 - Title Page

4.2.2.2 Section 2 - Cover Letter and Executive Summary

4.2.2.3 Section 3 - Table of Contents

4.2.2.4 Section 4 - Company Background & Experience

4.2.2.4.1 Section 4A: Company Profile

4.2.2.4.2 Section 4B: Offeror Experience

4.2.2.4.3 Section 4C: Financial Assurance

4.2.2.5 Section 5 - Product Overview

4.2.2.6 Section 6 - Functional Solution

4.2.2.6.1 Section 6A: Requirements Response Workbook -

Functional Requirements

4.2.2.7 Section 7 - Technical Solution

4.2.2.7.1 Section 7A: Conceptual Architecture

4.2.2.7.2 Section 7B: System Architecture

4.2.2.7.3 Section 7C: Security

4.2.2.7.4 Section 7D: Integration

4.2.2.7.5 Section 7E: Data Conversion/Migration

4.2.2.7.6 Section 7F: Reporting

4.2.2.7.7 Section 7G: Technical Requirements Response

Workbook

4.2.2.8 Section 8 - Implementation Approach and Understanding

4.2.2.8.1 Section 8A: Schedule and Work Plan

4.2.2.8.2 Section 8B: Staffing Requirements and Proposed

Organizational Chart

4.2.2.8.3 Section 8C: Project Management Approach

4.2.2.8.4 Section 8D: Implementation Approach/Deployment

Strategy

4.2.2.8.5 Section 8E: Key Implementation Risks and Mitigation

Strategies

4.2.2.8.6 Section 8F: Design and Development Strategy

4.2.2.8.7 Section 8G: Test Strategy

4.2.2.8.8 Section 8H: Knowledge Transfer and Training

Approach (Optional: OCM)

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4.2.2.8.9 Section 8I: Business Continuity and Disaster

Recovery

4.2.2.8.10 Section 8J: Hosting, Production Support, and

Transition

4.2.2.9 Section 9 - Payment Milestones and Invoice Deliverables

4.2.2.10 Section 10 - Offeror References

4.2.2.11 Section 11 - Staff Resumes

4.2.2.12 Section 12 - Historically Underutilized Business (HUB)

Required Forms

4.2.2.13 Section 13 - Pricing Workbook

4.2.2.14 Section 14 - Service Level Agreements (SLAs)/Service

Level Requirements (SLRs)

4.2.2.15 Section 15 - Terms and Conditions

4.2.2.16 Section 16 - Assumptions and Exceptions

4.2.2.17 Section 17 - Glossary of Terms

5.0 Attachments

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1.0 Introduction

1.1 Statutory Authority and Project Overview

This procurement is issued in accordance with Chapter 51 of the Occupations Code and Chapters 2051, 2054, 2059, 2151, 2156, and 2157 of the Government Code and the rules and procedures prescribed by the Texas Comptroller of Public Accounts, Statewide Procurement Division, and the Department of Information Resources.

The Texas Department of Licensing and Regulation (“TDLR” or “the Agency”) invites business entities, manufacturers, and authorized resellers, to submit Offers to provide the Agency with a comprehensive, cloud‐based licensing and regulatory software, the associated implementation, maintenance, and related services (referred to as the “Solution”). All Offers must comply with the requirements and terms set forth in this Request for Offers (“RFO”). This initiative is referred to as TDLR Legacy Systems Replacement Project (“the Project”).

The purpose of this RFO is for TDLR to receive, review, evaluate, and select the Solution and service provider that offer the best value to the State and meets TDLR’s needs. Offerors must propose a Solution that:

Is developed and successfully implemented, robust, and mature, as described in Section

1.2.

Meets specified functional and non-functional requirements with no, or minimal, custom development.

Includes full implementation services that meet the specified service requirements, including project management, design, installation, configuration, integration, licensing compliance, data migration, documentation, testing, training, and ongoing maintenance, and support.

Ensures an experienced implementation team that meets or exceeds the minimum qualification requirements specified in this RFO.

All information related to this RFO shall be submitted in the format established in this RFO. The Offer must be signed by an individual(s) empowered to contractually bind the Offeror.

1.2 Project Background

TDLR serves Texans by providing licensing and regulatory services that encompass a wide range of professions, occupations, businesses, facilities, and equipment. The required Solution must be capable of supporting at least 200 license types across approximately 40 regulatory programs. Today, there are over 919,000 active licenses, and uniform processes are applied to license application development, curriculum review, examination development, facility inspection, complaint intake, investigation, and resolution through a functionally aligned organizational structure.

Over the last several years, many regulatory programs have been transferred from other state agencies to TDLR. The Agency welcomed this growth opportunity; however, it has been a challenge to maintain, support, and modernize the many disparate licensing systems that came along with these programs, and the impact of multiple siloed licensing systems is felt throughout

TDLR.

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While the Agency tries to streamline the business processes across the multiple license types, some of the existing licensing systems are cumbersome, not user-friendly, and difficult or expensive to support and secure. In addition, maintaining knowledge of multiple licensing systems, each with a different user interface and navigation stretches the capabilities and capacity of licensing, customer service, inspection, enforcement, and other TDLR staff. The workforce at TDLR, especially the Information Technology (“IT”) division, is limited and daily challenged to support the current licensing systems and ongoing project work.

The challenges of gaining efficiencies, when the licensing systems are difficult to align, result in less-than-optimal wait times for constituents to receive TDLR’s services. In addition, due to the current licensing systems limitations, staff and constituents must still use some manual/paper processes, which increase workload and inefficiencies. Existing TDLR licensing systems offer limited automated workflow, self-service functionality, and business intelligence capabilities needed to support TDLR’s internal and external stakeholders. Therefore, with this RFO, the Agency intends to procure a modern Solution that meets the current and future needs of TDLR and its constituents. The Solution will replace most of the existing licensing systems and, increase licensing efficiency, reporting capabilities, functionality, and maintainability.

1.2.1 Project Objectives

TDLR requires the Solution to replace the licensing functionality currently supported by multiple siloed systems. The Solution must be capable of effectively servicing the current 919,000 active licenses, approximately 500 internal Agency users, thousands of business owners, and the public, on-demand. The Solution must also be scalable, for additional TDLR-regulated programs can be incorporated in the future and implemented with a phased and incremental rollout strategy to reduce the risks associated with a “big bang” deployment. The functionality for the proposed Solution must support the end-to-end licensing life cycle from application submission to license issuance. TDLR will continue to leverage its existing enforcement system. Additional information on the scope of this Project and required capabilities is provided in Section 2.0 - Scope of Work.

The Solution must accomplish key business objectives, such as:

Improving the efficiency of TDLR processes through increased automation, allowing staff to do more work with existing resources.

Facilitating all license activities through a single portal to improve self-service capabilities and provide enhanced mobile experience via responsive design.

Replacing legacy systems with a single, secure, modern Solution.

Creating seamless integrations with external systems (see Table 21 - Systems Targeted for Integration).

Providing a user-friendly experience for all internal users and external customers.

The Offer must include ongoing maintenance and support services required to keep the core system components updated to acceptable versions as required by TDLR and other state requirements.

1.2.2 Project Guiding Principles

The Contractor must implement its Solution in a manner that conforms with the following guiding principles:

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Promoting TDLR independence in using, maintaining, and enhancing the new licensing system.

Configuring and developing a core Solution that can be easily extended to incorporate additional functionality and license types over time.

Allowing TDLR Staff to make changes through configuration - from the parameter to component level - with minimal IT or Contractor assistance.

Offering a sustainable and extensible platform that promotes reusability, product innovation, and scalability by using innovative concepts.

Following an industry-accepted software engineering methodology, the Texas Department of Information Resources (“DIR”) Legacy Modernization Guide, and proven best practices.

Maintaining TDLR data stored, processed, accessed, viewed, transmitted, and received, always and exclusively within the contiguous United States of America (“U.S.A.”). TDLR may allow work to occur outside of the U.S.A. upon written pre-approval from TDLR, provided that Contractor complies with all conditions, if any, and remains in compliance for the duration of the pre-approved period.

1.2.3 Current State Overview

TDLR’s approximately 40 regulatory programs and 200 license types are supported by a variety of licensing systems that were installed at various times over the past 20 years. Eight (8) of TDLR core systems are outlined in the table below for reference; however, one (1) of them is not being replaced at this time. See Attachment K. TDLR Applications List for more details about TDLR core systems. TDLR seeks a Solution to support the seven (7) of its core systems, as identified below.

Table 1. TDLR Licensing Systems

Name System Regulatory Programs and License Types In Scope for Replacement

1. Texas Umbrella Licensing Information Project (TULIP)

Agile Business Suite/MS SQL Server

Air Conditioning and Refrigeration, Auctioneers, Barbering, Behavior Analysts, Boiler Inspectors, Breeders, Combative Sports, Cosmetology, Electricians, Elevators, Motor Fuel Metering and Quality, Professional Employer Organizations, Property Tax Consultants, Property Tax Professionals, Registered Accessibility Specialists, Service Contract Providers, Tow Truck Operators, Used Automotive Parts Recyclers, Vehicle Storage Facilities Employees, Water Well Drillers.

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Name System Regulatory Programs and License Types

2. Versa - MicroPact Oracle

Athletic Trainers, Code Enforcement Officers, Dietitians, Dyslexia Practitioners & Therapists, Hearing Instrument Fitters & Dispensers, Laser Hair Removal, Massage Therapy, Midwives, Mold Assessors & Remediators, Court Ordered Programs, Orthotists & Prosthetists, Sanitarians, Speech-Language Pathologists & Audiologists, Transportation Network Companies, Podiatrists, Podiatric Radiological Technician, Temporary Residency License, Motorcycle and ATV operator education, Instructors, Course Providers; Driver Education Schools, Instructors & Course Providers.

3. Industrialized Housing & Building (IHB) Program

MS Access/MS SQL Server

Manufacturer, Industrialized Builder, Design Review Agency, Third-Party Inspection Agency, Third-Party Inspectors, Permits.

4. Weather Modification (WXM) Excel/QuickBooks Weather Modification Licenses & Permits.

5. Texas Online Occupational Licensing (TOOLS)

ASP/MS SQL

Server/Power Builder

Tow Truck Companies & Vehicle Storage Facilities.

6. Texas Architectural Barriers (TABS)

System

ASP.NET/MS

SQL Server

Architectural Barriers Project Registration.

7. Jurisdiction Online (JO) Permitting & Portal

Third-party Proprietary

Boiler equipment Note - This system is not maintained by

TDLR.

Out-of-Scope for Replacement

1. LegalFiles Third-party Proprietary

Enforcement Cases.

Note - This system is not a candidate for replacement at this time.

1.2.4 Project Stakeholders

Throughout the years, TDLR has evolved to become the state’s primary occupational licensing Agency, responsible for the management of approximately 40 regulatory programs. The tables below outline the internal and external stakeholders.

Table 2. Project Internal Stakeholders

Stakeholder Stakeholder Description

Compliance Division

Provides technical expertise, program management, research, industry outreach, inspections, and management of third-party reviewers and inspectors.

Customer Service Division

Responds to public and licensee inquiries through phone, email, and social media.

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Stakeholder Stakeholder Description Education and Examination Division

Reviews and approves school applications, continuing education providers and courses, and manages third party development and administration of licensing examinations.

Enforcement Division

Evaluates, investigates, and resolves complaints; prosecutes violations;

raises public awareness and increases consumer protection by coordinating with local, state, and federal agencies.

Field Inspections Division

Inspects business facilities, equipment, and schools, and engages in industry outreach to ensure public safety and consumer protection.

Financial Services Division

Provides budget, revenue, expenditure, reporting, and contracting and procurement services for the Agency.

General Counsel

Enforces commission orders by placing holds on licenses, when appropriate, to collect administrative penalties via internal staff, third-party collection agencies and referrals to the Office of the Attorney General. Oversees the retention schedules and disposal of agency records. Reviews and redacts sensitive licensing documents in compliance with the Public Information Act.

Information Security Office

Evaluates cybersecurity risks and ensures compliance with applicable state and federal law, as well as industry standards and best practices. Evaluates, investigates, and audits all logs/incidents to ensure cybersecurity risk is managed appropriately.

Information Technology Division

Develops, maintains, and oversees TDLR’s software development, and IT infrastructure.

Licensing Division Evaluates applications and related documents to issue, upgrade, and renew licenses.

Table 3. Project External Stakeholders

Stakeholder Stakeholder Description TDLR License Holders

For this solicitation, TDLR is focused on the entire portfolio of approximately 40 regulatory programs.

Education Providers

To support licensing education requirements, TDLR works with the following Stakeholders: Continuing Education (CE) Providers, Exam Providers, and School Providers.

Insurance Providers

Insurance providers who inform/validate insurance coverage for license holders who are required to meet specific requirements. Today, license holders must carry specific insurance requirements based on the different regulatory programs such as the Vehicle Storage Facilities. Insurance providers must log into the existing system(s) to upload large datasets, including Certificates of Insurance (COI), insurance policy numbers, effective dates, and policy updates.

Texas Department of Information Resources (“DIR”)

Texas DIR is the state’s technology agency and provides a variety of solutions to Texas agencies. TDLR will work closely with DIR on the monitoring of the Project through the Texas Project Delivery Framework, as well as two interfaces with DIR systems: Texas.gov payment services and Texas by Texas.

Texas Office of the Attorney General

(“OAG”)

TDLR shares information with the OAG concerning license holders and ensure that license holders comply with OAG policies and procedures.

Texas Department of Public Safety

(“DPS”)

TDLR sends to DPS applicant information to validate Texas driver license numbers. TDLR also receives criminal history record information related to the applicants.

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Stakeholder Stakeholder Description

General Public Members of the General Public rely on the Agency to protect health and safety by ensuring that licensees meet minimum competency through required examination, experience, and education requirements.

1.3 RFO Overview

An Offer submitted in response to this RFO is an offer to contract based upon the terms, conditions, and specifications contained herein. TDLR reserves the right to make any corrections or include additional requirements in the Contract prior to issuance that may be necessary to comply with all state and federal requirements, as any other agency of the State of Texas.

1.3.1 Schedule of Events

TDLR will follow the schedule of events provided below and reserves the right to change this schedule at any time. Offerors must comply with all deadlines to meet TDLR’s implementation schedule. Offerors must submit all questions regarding this RFO by email to the contact provided in Section 1.3.2 - Designated Contact.

Table 4. Anticipated Procurement Event Schedule

Activity Date/Time

Publish Solicitation 8/14/2024 Pre-Offer Conference 8/20/2024 - 9:30 a.m. - 10:30 p.m. CZT Deadline for Submission of Questions 8/22/2024 — 2 p.m. CZT (Anticipated) Issuance of TDLR’s Written Response to Questions 8/30/2024 Deadline for Submission of Offers 9/16/2024 — 2 p.m. CZT Evaluation Timeline 9/17/2024 – 10/14/2024 Offeror Demonstrations 10/28/2024 – 11/05/2024 Deadline for Best and Final Offer (BAFO) Offer, if necessary 11/15/2024 — 2 p.m. CZT Complete BAFO Process and Notify Selected Finalists for Commencement of Negotiations 11/22/2024

(Estimated) Contract Negotiations Complete 12/17/2024 QAT Review 12/18/2024 – 2/04/2025 Commission Approval of Contract TBD Expected Award of Contract 2/13/2025

1.3.2 Designated Contact

Any notice or communication required by this RFO is to be sent via email to TDLR’s Designated Contact.

Procurement Designated Contact: Darryl Gaona CTCM, CTCD, Contract Specialist Business Mailing Address: P.O. Box 12157 Austin TX 78711 Telephone Number: (512) 463-1186 Email address: bids@tdlr.texas.gov mailto:bids@tdlr.texas.gov

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Offerors shall make no contact concerning this RFO with any other TDLR personnel, except as permitted by the Designated Contact. Any communication made outside of the Designated Contact MAY RESULT IN AN OFFEROR BEING DISQUALIFIED. The only exception to this requirement is that Offerors may contact the TDLR Historically Underutilized Business (HUB) Coordinator directly with questions regarding the proper submission of the HUB Subcontracting Plan, provided the Designated Contact is copied on the email and the communication is limited to question or clarifications related to the HUB.

The HUB Coordinator, Charlotte Craig, Manager of Contracts & Procurement, may be reached via email at charlotte.craig@tdlr.texas.gov, with the subject line: HUB Question - RFO #: 452- 24-BLC020. This is the only exception for communication to the Designated Contact identified in this section. Failure to comply with this requirement may result in disqualification.

1.3.3 Pre-Offer Conference

The Pre-Offer Conference is scheduled for the date and time listed above in Table 4:

Anticipated Procurement Event Schedule. Attendance to the Pre-Offer Conference is highly encouraged. The conference will be conducted in a hybrid format, virtual and in person.

To join on your computer or mobile app, login to WebEx and join at the following link:

https://tdlr.webex.com/tdlr/j.php?MTID=mc3d209cda58c5450e660eafca94c768a Or call in (audio only) at +1-408-418-9388,, 24963000217## Meeting number (access code): 2496 300 0217, Meeting password: 5qrJVJB3hE3 Join from a video system or application: Dial 24963000217@tdlr.webex.com To join in person: 1106 Clayton Lane, Austin, Texas (commonly known as TDLR’s

North Campus).

During the Pre-Offer Conference, TDLR will not be answering questions. All questions must be addressed in Section 1.3.4 Questions.

1.3.4 Questions

Offerors shall submit all questions regarding this procurement, in writing, to the Designated Contact established in Section 1.3.2. The deadline for submitting questions regarding this RFO is stated in Table 4: Anticipated Procurement Event Schedule.

By submitting a question, Offerors acknowledge the question will be published at the discretion of TDLR with an official answer. Offerors should not include confidential, proprietary, or any information it may consider sensitive, private, or privileged in their questions. TDLR will not publish the identity of the Offeror submitting the question. A final compilation of all questions and answers will be available in the form of an Addendum to this RFO that will be posted to ESBD within ten (10) business days (or as soon as possible thereafter), after the Deadline for Submission of Questions.

Questions submitted in compliance with the terms established in this RFO will be answered by TDLR in a Question-and-Answer Addendum Document posted on the Electronic State Business Daily (ESBD) website: http://www.txsmartbuy.com/esbd. Only answers provided in writing by TDLR shall be considered official. All questions must cite the specific RFO section and paragraph number(s) to which the question(s) refers. Each Offeror is solely responsible for monitoring the ESBD for official TDLR communication concerning this procurement and making any necessary adjustments to its response.

mailto:charlotte.craig@tdlr.texas.gov https://tdlr.webex.com/tdlr/j.php?MTID=mc3d209cda58c5450e660eafca94c768a tel:%2B1-408-418-9388,,*01*24935678745%23%23*01* sip:24963000217@tdlr.webex.com

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Other Questions: Procedural questions regarding Offer submission, dates, and locations/addresses may be addressed by email to the Designated Contact.

1.3.5 Addendum

Should an addition or correction to this RFO be necessary after the RFO is published, TDLR will post an Addendum on the ESBD to address it. Offerors are responsible for checking the ESBD for Addenda or additional information about this RFO. Offerors are required to acknowledge addenda by returning the signature page of each Addendum with the Offer or by acknowledgment in Section 4.2.2.2 (Cover Letter and Executive Summary) of each Addendum by number.

1.3.6 Attachments

This RFO includes the following attachments.

Table 5. Attachments

# Attachments A Service Level Agreement (SLA) B Service Level Requirements (SLRs) C Functional Requirements Response Workbook D Technical Requirements Response Workbook E Pricing Workbook F HUB Subcontracting Plan Forms G Certificate of Interested Parties H TDLR Sample Contract I TDLR Sample Contract Provisions J License Inventory K TDLR Applications List L RFO Language for DCS Customers Seeking IT Solutions M TDLR D1 Current State Business Process - Industrialized Housing and Building N TDLR D2 Business Process Mapping Executive Briefing Final

1.3.7 Initial Term and Renewal

The initial term of any Contract that may result from this RFO shall become effective on the date of last signature and end on August 31, 2029, inclusive of the initial configuration, system acceptance, go-live, maintenance, and support. After August 31, 2029, TDLR may renew the Contract for up to five (5) additional one (1) year terms for maintenance and support activities.

The decision to continue receiving maintenance and support services from the Contractor shall be at the sole and absolute discretion of TDLR. The continuation of maintenance and support services shall be subject to the requirements and terms and conditions of the Contract. By submission of an Offer to this RFO, an Offeror agrees to be bound, for the initial term of the Contract and for any additional term available for TDLR to continue receiving maintenance and support services, at the rates specified in the Contract. TDLR must notify the Contractor of its intention to continue receiving maintenance and support services prior the expiration of the Contract term.

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1.3.8 Option to Extend

Following the full Contract term TDLR may, in its sole discretion, extend the term of the Contract as necessary to complete a new procurement, and/or transition to a new Contractor to avoid interruption in TDLR services. If TDLR determines to extend the Contract, notice will be provided to the Contractor before the Contract expiration term. The extension of the Contract may not exceed the end of the fiscal year in progress unless authorized by law, rules, or regulations.

1.3.9 Additional Services

Offerors may describe additional services within the scope of this RFO, if any, that are not required in this RFO, but the Offeror proposal to provide additional services must be at no additional cost to the Agency. The additional services, if any, must be specifically identified in the offer. Offerors are not required to propose additional services. If no additional services are offered, the Offer must state that no additional services are offered. Additional services may be, but not required to be, considered in the best value determination.

1.3.10 Evaluation Process

TDLR will use a formal two-step evaluation process to select the Offer that offers the best value for the state. Best value standards include, but are not limited to Sections 2155.074, 2155.075, 2156.007, 2157.003, and 2157.125 of the Texas Government Code, as applicable. TDLR will consider capabilities or advantages that are clearly described in the Offer, which may be confirmed by oral presentations, demonstrations, and references contacted by TDLR at TDLR’s discretion. TDLR reserves the right to refuse all offers if none of the offers submitted are acceptable to TDLR.

1.3.10.1 Minimum Qualification

To be eligible for consideration of Contract award, Offeror must meet all minimum qualification requirements as outlined in this Solicitation, the Sample Contract, and all documents attached, including any requirements stated within any part of this RFO.

An Offer must demonstrate how the Offeror and the proposed Solution meets the following minimum requirement:

1. Describe how the Offeror successfully implemented the proposed Licensing Solution within at least two (2) other public entities in any jurisdiction of the USA, including one (1) instance where functional software was deployed in production within the past five (5) years using Table 5.1 – Minimum Qualifications.

Table 5.1. Minimum Qualifications

Name and Jurisdiction of the Public

Entity

Project Scope/ Description

Project Start Dates (mm/yyyy)

Project End Dates

(mm/yyyy or “Ongoing”)

Date Deployed to Production (mm/yyyy)

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Offeror must also address in its Offer the following minimum requirements, as instructed in Section 4.2.2.4.2 Section 4B: Offeror Experience:

Offerors must submit a signed reference letter from the two (2) US public entities listed above. The letters must include the following information:

a) Name of the public entity;

b) Name of the project;

c) Public entity project manager or project contact information;

d) The original contract amount;

e) Amount billed for the project;

f) Project start and end date; and

g) Brief project description.

Generalized statements regarding (a)-(g) will be deemed insufficient and nonresponsive.

Failure to meet the mandatory qualification and include two (2) signed reference letters shall result in immediate disqualification of the Offer and the Offer shall receive no further consideration.

1.3.10.2 Evaluation Criteria

Offers will initially be evaluated using the evaluation criteria outlined in Table 6. Evaluation Criteria.

Table 6. Evaluation Criteria

1.3.10.3 Offer Review Process

Offers will undergo a minimum of two (2) review phases prior to Contract award, if any.

The first review will be an administrative review of offers to determine responsiveness.

This review will determine if the Offer satisfactorily meets all submission requirements specified in this RFO, including Offeror financial statements, and to confirm all mandatory requirements and minimum qualifications are met.

The second review is a formal evaluation of offers deemed responsive by TDLR. This review shall be conducted by an appointed evaluation committee using the evaluation criteria set forth within this RFO.

‒ During the second review, TDLR shall solely determine whether negotiations or Best and Final Offers are appropriate and/or necessary.

Criteria Weight Offeror Qualifications (e.g., corporate background, experience, references, staffing) 15% Compliance with this RFO Requirements 25% Totality of the Implementation Services 25% Totality of the Production Services (e.g., maintenance, support, new releases) 20% Cost of the Solution 15%

TOTAL 100%

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‒ TDLR may, but not must, invite select Offerors to deliver oral presentations and Solution demonstrations offered within their response. TDLR will select Offerors to participate in demonstration using a “natural break” in score, where TDLR will arrange the scores in descending order and identify noticeable breaks. The scores within the top class of that optimized iteration will be invited to demonstrations. By way of example, in a scenario where initial evaluation scores are 97, 93, 82, 81, 79 and 68, the natural break would result in the top two Offerors being invited to demonstrations. TDLR is not obligated to enforce a natural break in scores and reserves the right to advance as many or as few Offerors, in its sole discretion, deemed qualified under this section.

‒ Using the original scoring matrix, TDLR will score all oral Presentations/Demonstrations and that score will be added to the initial score to determine the final score of the Offer.

Following completion of both reviews, TDLR may issue a notice of intent to award to the selected Offeror.

TDLR reserves the right to conduct studies and other investigations as necessary, whether references were specifically identified in the Offer or not, to evaluate an Offer.

TDLR reserves the right to reject any or all offers and to waive minor technicalities of submitted Offers.

Submission of Offers confers no legal rights upon any Offeror.

1.3.10.4 In-Person Presentations and Solution Demonstrations

Offerors may be invited to conduct an in-person presentation and demonstrate aspects of the proposed Solution. Such demonstrations will include scripted scenarios provided in advance by TDLR and non-scripted events requested at the time of the demonstration. Any such appearance to present will be at the Offeror’s sole cost and expense.

Oral presentations, Solution demonstrations, or both will take place at 1106 Clayton Lane, Austin, Texas (commonly known as TDLR’s North Campus).

TDLR will provide a specific agenda prior to scheduling the presentations and demonstrations.

Offerors are encouraged to incorporate TDLR-specific references and/or data for the demonstrations to best represent how their Solution meets TDLR’s requirements. Minimal advance notice will be provided to Offerors invited to the presentations and demonstrations and Offerors proposed work teams must attend in person. As such, Offerors are encouraged to proactively block time for demonstrations in accordance with the timeframes identified in Table 4

- Anticipated Procurement Event Schedule.

TDLR normally will not rank presentations and demonstrations. Rather, if TDLR conducts the presentations and demonstrations as part of the technical evaluation, TDLR may use the information it gathers during this process in evaluating the technical merits of the Proposals. As discussed in Section 1.3.10.3, if TDLR holds the presentations and demonstrations for one or more Offerors after the evaluation phase, TDLR will update its existing Proposal evaluations based on the results of this process including reasonableness of the solution and pricing.

Offerors must confirm in writing any substantive oral clarifications of their Proposals made during the course of discussions. Any such written clarifications then become part of the Offeror’s Proposal and are binding if the Contract is awarded.

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1.3.10.5 Best and Final Offers

The evaluation process may, at TDLR’s sole discretion, include a request for select Offeror(s), if any, to prepare a Best and Final Offer (BAFO). Offerors selected to submit a BAFO will receive guidance from TDLR on aspects of the Offer that should be changed by Offeror. An Offeror’s participation in the BAFO process shall not be construed as award of any Contract that may result from this Solicitation.

1.3.10.6 Contract Award

TDLR may enter Contract negotiations with an Offeror(s) deemed to provide best value to TDLR. If TDLR selects an Offeror but fails to reach an agreement during Contract negotiations, the Agency may suspend negotiations and enter negotiations with a different Offeror. Upon successful completion of Contract negotiations, TDLR may proceed to Contract award.

1.3.11 Invoicing

TDLR will process properly prepared and submitted invoices for payment in accordance with Chapter 2251 of the Texas Government Code, commonly known as the Texas Prompt Payment Act.

1.3.11.1 Submitting Invoices

The Contractor will be responsible for invoicing TDLR upon completion of the specified deliverables or agreed upon milestones, as established in the delivery schedule. Invoices will describe the deliverable or milestone and the cost and will be reviewed for approval by TDLR’s Project Manager. Invoices may be submitted electronically to invoice@tdlr.texas.gov or mailed to the address below:

Texas Department of Licensing and Regulation ATTN: Expenditures P.O. Box 12157 Austin, TX 78711

1.3.11.2 Required Information for Invoice

The Contractor may submit an invoice for all unpaid deliverables for which TDLR has provided written Acceptance. The invoice must comply with the invoicing standards established in 34 Tex. Admin. Code § 20.487, including but not limited to:

Any itemized list of each TDLR-accepted deliverable for which the Contractor is seeking payment. Each itemized deliverable must map back to the approved schedule of deliverables.

The agreed upon firm fixed cost for each deliverable being invoiced.

A subtotal of the gross invoice amount.

TDLR purchase order number.

A copy of TDLR’s written Acceptance of each deliverable being invoiced.

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1.3.11.3 Invoice Schedule

The Contractor must submit invoices as required in 4.2.2.9 Section 9 - Payment Milestones and Invoice Deliverables.

1.3.11.4 Invoice Review

TDLR reserves the right to review each invoice for completeness and Contract compliance before providing written notice of the Acceptance of Contractor’s services. Contractor shall ensure all deliverables invoiced for are correct and without any deficiencies before TDLR shall process the invoice for payment. The Contractor shall provide additional information and/or documentation as TDLR may reasonably require. The Contractor shall respond to a TDLR request for additional information and/or documentation to support payment within the time requested by TDLR.

1.3.11.5 Billing at Contract Termination or Conclusion

Upon termination of the Contract for any reason, and in the event that remedies are pending, or quality assurance measures are not complete, the Contractor shall work with TDLR to remedy all quality control issues to finalize the outstanding deliverables before submitting the last invoice. After all quality assurance issues have been resolved, TDLR shall notify the Contractor to invoice TDLR for the remaining balance due.

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2.0 Scope of Work

2.1 Project Scope

TDLR seeks to procure a modern licensing software, related implementation services, and ongoing support and maintenance services. The Contractor must deliver an integrated, end-to-end Solution that best meets TDLR’s requirements in accordance with the requirements outlined in this RFO.

An Offeror may not subcontract any or all of the work and/or obligations due under a Contract without prior written approval of TDLR. Subcontracts, if any, entered into by the Offeror must be in writing. Should Offeror subcontract any of the services required in this RFO, Offeror expressly understands and acknowledges that in entering into such subcontract(s), TDLR is in no manner liable to any subcontractor(s) of the Offeror. In no event shall subcontracting relieve the Offeror of the responsibility to perform the Services in compliance with the Contract that may result from this RFO.

Upon Contract award and execution, the Contractor shall be responsible for implementing the Solution and providing ongoing maintenance and support services.

Table 7. Scope Overview

Scope Area Description

Legacy Systems to be Replaced (See Attachment

K. TDLR

Applications List for additional details)

Seven (7) core legacy licensing applications and systems:

TULIP - Texas Umbrella Licensing Information Project.

System: Agile Business Suite/MS SQL Server. Serves as a system of record for more than 20 regulatory programs.

Versa - Tyler Technologies.

System: Oracle. Serves as a system of record for more than15 license Programs.

TOOLS - Texas Online Occupational Licensing System.

System: ASP/MS SQL Server/PowerBuilder. Serves as a system of record for more than 5 license Programs.

TABS - Texas Architectural Barriers System.

System: ASP.NET/MS SQL Server. Serves as a system of record for one

(1) license Program.

IHB - Industrialized Housing and Building Program.

System: MS Access/MS SQL Server. Serves as a system of record for more than 5 license Programs.

Weather Modification — Weather Modification Law.

System: Excel/QuickBooks. Serves as a system of record for one license Program.

JO — Jurisdiction Online Permitting & Portal.

System: Third-party application.

Number of Users

Number of licensees: 919,000 licensees.

Number of internal users: 500 existing system users.

Approximate number of external users: 22,000

* See Section 1.2.4 for a list of Project Stakeholders

Existing Configuration

Number of Programs: Approximately 40.

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2.1.1 Implementation Services

TDLR anticipates a Project start date of February 2025.

TDLR requires the Contractor to provide implementation services, including requirements, design, development and configuration, data conversion, testing, training, go live support, and ongoing support, maintenance, and hosting requirements defined in Section 2.1.1.9.1.

Offerors must propose a phased rollout strategy to support TDLR’s licensing programs and license types based on best practices and Offeror experience. This incremental rollout approach should deliver real benefits to TDLR as soon as possible and reduce risk to the Project.

Offerors must include in their Offers a realistic timeline that allows adequate time for all Project Activities necessary for a successful and quality deployment, based on their experience with implementations of similar size, scope, and complexity.

2.1.1.1 Project Initiation

The Contractor shall provide project management for the duration of the Project. The Contractor shall provide resources to execute all project management tasks, functions, and Activities

Scope Area Description Amount of license types: Approximately 200.

Number of Records/Data Conversion Scope

Number of existing records:

– TULIP: 80% of business is this system, which translates into approximately 735,200 active licenses and 2,845,274 expired/historical licenses.

– Versa: 12% of business is in this system, which translates into approximately 101,854 active licenses and 25,456 expired/historical licenses.

TOOLS: 71,852 records (all transaction and insurance history).

– IHB: 800 licenses with its own database (all transaction and insurance history).

Weather Modifications: 6 active licenses stored in a spreadsheet (all transaction and insurance history).

– Data conversion scope:

o TDLR has previously mapped data requirements. TDLR anticipates that there may be a cleansing effort required for this Project.

o TDLR intends to convert a large portion of the historical records identified above.

o Conversion scope must be reviewed to ensure compliance with

TDLR’s record retention schedule.

System Interfaces

Number of interfaces: 13. * See Table 21. System Targeted for Integration for a list of integrations.

Volume/Metrics Number of licenses processed annually: 667,000 licenses annually

Hosting Contractor must provide one technical solution: either SaaS or DCS hosted and managed. * See Section 2.1.1.9 Hosting, Transition, and Post-Production Support and Maintenance for more information.

Training Contractor must provide Train-the-Trainer (TtT) Training.

Amount of end users that will require training for TtT: 10.

RFO Main Document - Page 21 described in Table 8. Project Initiation Activities and Deliverables, below. In addition, the Contractor shall maintain and update Project Activities, Deliverables, and associated work products on a timely, regular, and ongoing basis.

Objective(s):

1. Develop an understanding of the needs and challenges to implement an expedient, seamless, and minimally disruptive implementation of the Solution.

2. Engage with TDLR technical and business stakeholders to establish understanding and trust in the product and implementation team.

The Contractor shall be responsible for the following Project Initiation Activities and Deliverables:

Table 8. Project Initiation Activities and Deliverables

Activities Deliverables

Conduct Project pre-planning and preparation — Conduct planning meetings with TDLR and other stakeholders, as required, to confirm the schedule, plans, documentation, and other logistics for the Project related to project management responsibilities.

Develop Project kickoff materials Conduct a Project kickoff meeting with key stakeholders within five (5) business days of Contract execution. The kickoff meeting will provide an overview of the Project objectives, plans, Project scope and schedule, introduce the Contractor’s Project team and roles and responsibilities, and outline Project startup procedures.

Develop Project Management Plan – Conduct meeting with TDLR to review the Project Management Plan completed by TDLR that is based on the Texas Project Delivery Framework (TPDF) Project Plan template and make necessary updates to reflect all project management processes and controls for the Project. Detailed information about the TPDF is located on the DIR website, Step 2:

Plan.

Develop weekly status reports and schedule ongoing Project communications throughout all phases of the project.

Provide Ongoing Project Management Duties - Provide

1) Project Management Plan — Describes the overall project management approach and schedule throughout the life cycle of the Project. The Project Management Plan must conform to the Project Management Institute (PMI) as outlined in the Project Management Body of Knowledge (PMBOK) and TPDF standards, and will define the following (at a minimum):

a) Risk and Issue Management Plans & Logs —

Describe the risk and issue management processes and how this integrates with processes established by TDLR. Describe any assumption and constraints.

b) Integrated Change Management Plan — Describes the process of managing changes throughout the Solution development and support of TDLR’s Legacy Systems Replacement Project. Includes tools and methodology for establishing impacts (cost and schedule) for proposed changes. The Change Management Plan must integrate with processes established by TDLR.

c) Communications Management Plan - Establishes a consistent method for communication of Project information. The Communication Management Plan must define the Project stakeholder groups and for each group, specify the types of communication messages, channels, and frequency of the Project’s communications vehicles, roles, and responsibilities.

d) Status Reports - Describes the status reporting process, schedule, and format of status reports.

Contractor must provide weekly status reports during all phases of the project. The status reports are due every Friday by 4:00 p.m. CT (or agreed upon date with the TDLR Project Manager), with the exception that if a holiday falls on a Friday, report is due on preceding business day. Each weekly status report must, at a minimum, include the following: a. A detailed description of work completed by Contractor during the reporting period; b. An overview of pending work that aligns with the project work status;

https://dir.texas.gov/technology-policy-and-planning/digital-project-services/project-delivery-framework?id=16 https://dir.texas.gov/technology-policy-and-planning/digital-project-services/project-delivery-framework?id=16

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Activities Deliverables weekly Project plan and schedule updates, weekly status reporting, weekly status meetings, risk and issue monitoring with associated mitigation strategies, and integrated change management Activities. In addition to weekly status meetings, the Contractor’s project manager shall participate in Project steering committee meetings and other Agency meetings as required.

Finally, Contractor shall update the project management plan on a regular basis, at least once every quarter, to reflect changes in the project scope, schedule, budget, risks, quality, and communication.

c. The identification of work activities and tasks not tracking to the project timeline; d. A list of past due work activities and tasks with Contractor’s escalation plan to meet schedule deadlines; e. The identified risks, issues, and action items with associated mitigation strategies; f. The disposition of escalated or critical issues, risks; and g. The tracking and documentation of decisions made during the reporting period.

e) DCS Program Interactions — Offeror must describe its interactions with the DCS program (see Section

2.1.1.9 Hosting, Transition, and Post-Production for

more information regarding this requirement).

The plan shall be a living document that is updated periodically throughout the project lifecycle.

Deliverable due date (initial version): Twenty (20) business days after Contract Effective Date.

Deployment Planning - Conduct workshops with TDLR and other stakeholders to finalize approach for deploying the Solution into production.

Develop Deployment Plan

2) Deployment Plan - Develop a Deployment Plan to outline how the Solution will be deployed into production (e.g., transition planning to finalize rollout details that elaborates on the strategy documented in the Offer).

a) Finalized approach for deploying the Solution into production including benefits and strategic risks.

b) Plan will include the following information:

i) Overview of the current environment and considerations for deployment.

ii) Identification of high-risk transition areas and impact, mitigation strategies, and recommended mitigation actions.

iii) Any ongoing risks, based on finalization of phasing approach, must be tracked in a risk log.

iv) Any decisions that impact the schedule must be documented in the Project schedule.

v) Any cutover consideration(s) must be documented in the final Cutover Plan.

Develop a baseline Project schedule to reflect the Project timelines, milestones, and deliverables

3) Baseline Project Schedule - Develop a Project Work Plan and Schedule, including Gantt chart(s) and a Project calendar in Microsoft Project that is developed and maintained in accordance with industry best practices.

The work plan will reflect any changes from the baseline plan originally agreed to during…