ESM_Attachment 1 Statement of Objectives Final.docx

United States Mint Enterprise Sales & Marketing End-to-End Solution Statement of Objectives (SOO)

UNITED STATES MINT

Version 2.4 Date: 2/8/2013

ATTACHMENT 1 - SOO

DRAFT - Acquisition Sensitive

Table of Contents

Overview The United States Mint (USM) was created by Congress in 1792. The USM is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The USM also produces numismatic (collectible) products including proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum collector and bullion (investment) coins. The USM’s numismatic programs are self-sustaining and operate at no cost to the taxpayer. The USM numismatic program currently operates three sales channels: online, phone, and over-the-counter sales. Additionally, it conducts business-to-business transactions for its investment coins and bulk purchase program.

USM's numismatic mission is currently supported by an eCommerce end-to end solution comprised of systems, applications, business processes and third party resellers. This solution was implemented in 2014 and includes an Order Management System (OMS), Warehouse Management System (WMS), eCommerce website (catalog.usmint.gov), Customer Contact Center, Order Fulfillment, Digital Marketing/Advertising and Security Procedures.

The USM plans to continue using a turnkey solution that, with minimal configurations, can capitalize on best practices of the current retail eCommerce industry.

Some general facts about USM’s numismatic business:

· 22.6 million units sold over the last five years

· $2 billion in sales revenue over the last five years

· 300,000 – 500,000 telephone calls per year

· 1.1 to 1.5 million orders per year over the past 5 years

· 1 million active customers over last two years

· 11 million customers in database

· Approximately 600 active product SKUs

USM’s sales are received through the following channels:

*Based on FY21 transaction dates (not when revenue is recognized). While COVID impacted the phone sales channel in FY21, they typically represent ~10% of total sales.

Scope The United States Mint's Sales and Marketing mission is currently supported by an end-to-end eCommerce solution. The solution is comprised of systems, applications, and business processes interfaced in order to effectively support the United States Mint sales function for numismatists and the general public. The solution encompasses an Order Management System (OMS), an eCommerce website, Call Center and Fulfillment Operations. The current solution was implemented in 2014. While the solution met our requirements at the time of initial implementation in 2014, our business has evolved and requirements are ever-changing.

This Statement of Objectives (SOO) scope covers the entire USM numismatic program. The numismatic program includes the business processes of direct-to-consumer/business sales operations over all sales channels. The current business processes include contact center and fulfillment operations, an integrated order management system and warehouse fulfillment application, the eCommerce platform and host site. The scope also includes acceptance orders through a point-of-sales (POS) system that will capture and manage sales from USM retail outlets (POS is currently stand-alone). It also includes providing Accounting transactions for the entire numismatic program which includes, but is not limited to, cash, revenue and accounts receivable transactions, refunds and debt collection. Additionally, the scope includes the need for business analytics and a customer relationship management solution, as well as business-to-business solutions (online ordering for bulk).

The successful Contractor shall provide an end-to-end solution that includes all operational components fully integrated as necessary for the USM to administer the numismatic retail program. End-to-end scope is defined as a turnkey retail service solution that includes:

· Hardware

· Software

· Hosting

· Operations and maintenance

· Staffing for contact center and fulfillment warehouse operations

· All contact center functions and equipment

· Physical fulfillment warehouse and manage the fulfillment function

· Receiving and shipping

· Business and system performance analytics

· Sales fraud detection

· Physical product security

· System cyber security

· Integration with USM internal and external systems

The SOO overview and scope above describe basic business functions and supporting IT systems needed to conduct the USM retail business. The USM is looking for a commercial business provider with extensive retail business expertise to run the USM numismatic systems and processes by providing a comprehensive turnkey solution. The full service provider’s solution must handle the USM business post-manufacture of USM numismatic products.

Program Objectives The Contractor’s proposed solution to the USM shall, at a minimum, meet the following program objectives:

· Provide as a service, an end-to-end retail solution that utilizes the Contractor’s currently existing operational infrastructure and includes all operational components necessary for the USM to conduct the numismatic sales business.

· Provide a secure, scalable, flexible, reliable turnkey retail service solution that meets all the functional and business needs identified in Appendix A of the SOO.

· Integrate the end-to-end retail solution with USM’s internal and external systems identified in Section 6 of the SOO to maximize interoperability and compatibility for exchanging data.

Business Objectives The Contractor’s proposed solution to the USM shall, at a minimum, meet the following business objectives:

· Provide the USM numismatic customer a state-of-the-art experience across USM’s existing communication and ordering channels – POS, phone, chat, email, mobile, and web – from the time an order is placed until received by the customer.

· Evolve business model and supporting business systems and processes to meet industry standards.

· Stay current with all hardware and software to meet industry standards and best practices.

· Keep pace with emerging technologies and capabilities throughout the life of the contract.

· Provide to the numismatic customer a fast, stable, and secure customer experience.

· Maintain system integrity during peak demand.

· Ensure that the turnkey retail solution delivers meaningful business analytic information USM to help it responsibly manage and grow the numismatic business.

· Improve capabilities to the USM to include order processing and fulfillment cycle times.

· Reduce USM cost of operations.

· Deliver a business solution using performance-based contracting techniques with incentives designed to reward superior performance (e.g. customer satisfaction, timely submission of deliverables) and disincentives to penalize poor performance based on commercial quality standards. The Contractor shall propose metrics to measure and manage performance.

Conditions The Contractor’s proposed solution to the USM must adhere to the following conditions:

1. Go-Live shall be no later than October 1, 2023.

1. USM shall be the merchant of record.

1. The Contractor shall deliver a Contractor owned, Contractor operated system. The Government will not own any hardware, software, facilities, or other physical infrastructure.

· The Contractor’s IT systems that are used for the USM solution shall meet federal IT security requirements prior to the Government’s acceptance of any turnkey solution.

· The Contractor shall comply with USM’s physical security requirements.

· The Contractor shall commit to a zero loss standard for all products received into the warehouse to include paper currency.

· The Contractor shall keep all collected data for a minimum of six (6) years, three (3) months from the collection time.

· The Contractor shall manage and control the turnkey retail solution.

· The Contractor shall act as the prime integrator for the turnkey retail solution.

· The Contractor shall be responsible for connectivity and network connection between its environment and the USM’s internal and external systems[footnoteRef:1][1]. [1: [1] Internal and external systems include pay.gov, Citigroup, Oracle ERP, Data Warehouse, Amazon, Counterpoint and IQ Vantiv.]

· All operations, data, systems, and disaster recovery site(s) shall be located within the United States.

· All contractor personnel with access to USM products and data must pass a public trust background check.

· Systems must be compliant with all applicable federal laws and regulations, including Section 508 compliance.

Minimum Performance Work Statement (PWS) Tasks The Contractor shall propose a PWS in response to this SOO. At a minimum, the Contractor PWS shall address the below task requirements. It is the discretion of the Contractor to propose additional tasks or combine tasks if needed. The Contractor will be required to support the USM in Milestone Decision Reviews and will not progress to the next task phase without authorization and approval from the USM.

1.1 Program Management

This task shall identify the work required to manage and perform all the activities in this scope of work up to the point of completing the transition-out. The Contractor shall provide and manage resources to execute tasks and produce deliverables as defined in the PWS. The Contractor shall be responsible for providing, managing, and overseeing its personnel as well as any subcontractor efforts used in performance of this scope of work. The Contractor shall utilize Program Management best practices to actively manage cost, schedule, performance and risk of projects as needed throughout the period of performance. The Contractor shall provide a transition out deliverables to include the transition of entire USM data in industry standard formats such as comma separated value format.[footnoteRef:2] [2: USM data includes customers, orders, financial, inventory, etc.]

1.2 Logical Design Phase (Analysis and Design)

This task, as a minimum, shall include a requirements gap analysis, development of design documents (as needed), project management planning (to include project scheduling, quality management, risk management), test planning, and transition-in planning (for contact center, warehouse, data, and inventory). This task shall also include the development of interface control documents with USM’s internal/external systems. At the conclusion of this task, the contractor will be provided authorization to progress to Task 6.3. The exit criteria for this phase are identified in Appendix B.

1.3 Physical Design Phase (Configuration and Implementation)

This task, as a minimum, shall include any necessary updates to the plans identified in the logical design phase, configuration and coding (if necessary), preparation of production environment(s), the execution of testing activities, integration, transition-in (to include data, inventory, contact center and warehouse), Contractor training, USM staff training, and deployment. The contractor shall deliver the functional and business operations needs identified in Appendix A. At a minimum, the Contractor is responsible for the integration of its system to the following seven individual internal/external systems utilized by USM[footnoteRef:3] (identified in Appendix D): [3: It is intended that integrations will utilize standard Applications Programming Interfaces (APIs)]

· Payment Processing – pay.gov[footnoteRef:4] (External System) [4: Reference Manual for pay.gov integration can be requested from the Contracting Officer]

Pay.gov is a credit card payment processing system provided by Department of Treasury at no cost to USM for processing credit card payments. There is a real time interface between OMS, web front-end, and Pay.gov for credit card authorizations, credit card payments, and refunds.

· USM Data Warehouse (Internal System) Collects information provided by the vendor from the OMS and WMS and provides reporting capabilities on retail business performance, sales metrics, and marketing campaign management.

· Oracle Federal Financials (Oracle EBS v11.5.10 or R12) (External System) The OMS interface to Oracle GL – Oracle Federal Financials module - brings in summarized financial information on order entry, billing, revenue, inventory, expenses, payables and accounts receivable processes for orders in the retail business.

· Oracle Manufacturing WMS (Oracle EBS v11.5.10 or R12) [footnoteRef:5] (External System) [5: Oracle Manufacturing WMS ships manufactured products to the fulfillment center]

Oracle Manufacturing WMS is used to manage movement and storage of raw materials, work in progress inventory, and finished goods.

· Oracle Inventory (Oracle EBS v11.5.10 or R12)[footnoteRef:6] (External System) [6: Fulfillment center warehouse management system is the system-of-records for inventory]

Oracle inventory is currently used to manage the inventory of items, and as well defines the items in the item master. The OMS interface to Oracle Inventory brings in detailed purchase order data to support the inventory control of stock requests of orders in the retail business.

As a part of the transition, the Contractor will be required to conduct data migration activities to include data cleansing.[footnoteRef:7] For all customers active in the last three years, the Contractor shall convert all of the customer data along with its entire history. [7: Data migration requirements: Product Data, Customer Data, Item Master, Orders, Open Sales Orders, and Open Purchase Orders from legacy systems.]

The primary objective of this task is to obtain a system that has reached Go-Live as defined in Appendix C without causing any disruption to operations or customer service. Upon achievement of Go-Live, the Contractor will be provided authorization to progress to Task 6.4. The exit criteria for this phase are identified in Appendix B.

1.4 Operations and Maintenance Phase

This task, at a minimum, shall address all requirements to operate and maintain the USM numismatic retail program. The Contractor shall achieve Full Operational Capability (FOC) under this task. The definition of FOC is identified in Appendix C. Appendix A-1 outlines the USM’s minimum functional and business operation’s needs.

The USM’s objective is to provide contact center and fulfillment services that meet high levels of customer satisfaction, peak capacity, federal security requirements, and improved sales performance. The Contractor shall provide capabilities and service levels to sustain high satisfaction levels.

The Contractor shall provide contact center operations to include inbound order calls, inbound information calls, inbound and outbound service calls, correspondence via traditional mail, email, chat, and technical support. The contractor shall provide a Customer Relationship Management (CRM) solution to effectively track and manage inbound and outbound customer contacts and orders across all channels. The Contractor shall provide operational activities including training, quality monitoring, workforce management, and forecasting.

The Contractor shall provide fulfillment center operations for areas such as outbound consumer and business-to-business shipments, returns with and without a returned merchandise authorization (RMA), inventory receipt and shipments, inventory accuracy (cycle counting and audits), packing slip design, quality inspections (gross), carrier/freight management services (including freight forwarders, ground service, overnight, second day air, armored carrier), insurance coverage on 100% of shipments, carton and dunnage solutions, order accuracy solutions (such as weight verification), disassembly/destruction of obsolete inventory (detrash), and warehouse automation.

The Contractor shall provide eCommerce operational and life-cycle support for the web front-end to include services such as web catalog design, hosting and management, comprehensive shopping cart functionality, search engine optimization, analytics, cross sell and upsell, content management support, and consulting and training services to help maximize system benefits for USM.

Deliverables The Contractor shall propose deliverables in accordance with their proposed PWS. The Government will have final approval of all deliverables. The Contractor’s deliverables shall address all of the content requirements identified in Appendix B of the document.

Contractor Guidelines This acquisition effort will result in the award of a contract to acquire services from an independent, responsive, responsible, experienced Contractor. The Contractor shall comply with all applicable local, state, and Federal laws, including the Privacy Act, 5 U.S.C. §552a, and all agency privacy and security requirements. Contractor shall clearly and effectively communicate in a timely fashion with parties, including all strategic and programmatic partners.

Security Requirements The Contractor shall adhere to the following security requirements, as reasonable, to be assessed by the Government, or third-party on behalf of the Government.

Security and Compliance Point of Contact The Contractor shall designate an individual to serve as a primary point of contact for all Information Security operational and compliance issues and shall serve as a contractor liaison for security. This person shall have sufficient demonstrated knowledge and/or experience in Information Security to effectively communicate and document security requirements and issues between the Contractor and the USM.

Compliance The Contractor shall adhere to laws and regulations that impose security, confidentiality and accessibility requirements, including but not limited to those involving privacy and security controls, electronic discovery and the management, disposition and location data.

System Security Authorization

· Provide documentation to comply with Federal Information Security Management Act of 2002 and applicable National Institute of Standards and Technology standards. Additionally, support development of a security authorization package based on Moderate Impact security standards defined in NIST SP 800-53, Revision 4.

· Provide necessary resources to assist USM or third party audits of Security Authorization both onsite and through documentation as applicable.

· Address and resolve gaps in Security Authorization identified by the USM and/or a third party auditor as applicable.

· Comply with the standards for OMB Memo 06-16: Protection of Sensitive Agency Information Records (June 2006).

Physical Security Compliance

· Provide documentation for a Physical Security Plan that includes but is not limited to how requirements are pushed and managed at data centers, how site surveys are conducted, and how physical compliance is ensured.

· Provide necessary resources to assist USM or third party audits of Physical Security Plan both onsite and through documentation as applicable.

· Address and resolve gaps in Physical Security Plan identified by the USM and/or a third party auditor as applicable.

Maintain PCI DSS Level 1 Compliance

· Provide a complete PCI DSS Level 1 Service Provider Report of Compliance (ROC) and Attestation of Compliance (AOC) for review annually.

· Support USM annual PCI DSS Level 1 on-site audit requirements.

· Support continuous monitoring of all PCI DSS Level 1 requirements by USM personnel and its designees.

FEDRAMP Compliance

· Any system or application that meets NIST SP 800-145 for Cloud computing must be FEDRAMP Authorized.

· NIST Defines Cloud Computing at the following “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of five essential characteristics, three service models, and four deployment models.”

*Note* The ESM solution could be a mix of solutions that are datacenter native applications and applications that meet NIST definition as Cloud Computing. This does not mean that the entire ESM solution has to be FEDRAMP authorized but any solution or application that does meet NIST definition will have to be FEDRAMP authorized. If the solution is natively deployed in an environment that meets NIST Definition for cloud computing, the underlining infrastructure has be in a FEDRAMP authorized environment but the ESM solution itself does not have to go through FEDRAMP authorization.

Audit Support

· Undergo a SSAE 18 (Type 2) audit assessment on an annual basis conducted by an Independent Certified Public Accounting (IPA) firm recognized by the American Institute of Certified Public Accounts on all systems involving transactions processed by the retail and inventory management systems. Report must contain an unmodified “clean” opinion, which provides the Mint assurance that relevant controls are in place, suitably designed and operating as intended.

· Physical and Technical access to systems, facilities and resources to authorized USM personnel, or designated third parties, at any time to conduct security audits, reviews, and data calls.

· Contractor must provide sufficient audit evidence to support all applicable Mint assessments, audits and reviews conducted by the Office of Inspector General (OIG), Government Accountability Office (GAO) and any other Federal Government regulatory authority.

· Provide access to all requested data, systems, resources, and facilities.

· Provide recommendations and remediation plans that appropriately address the risks/findings discovered during any audits, assessments or reviews.

SOO Appendices Appendix A-1: Functional and Business Requirements

Appendix A-2: Functional and Business Requirements Workbook

Appendix B: Deliverables and Content Requirements

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