Ex 1.2.docx

Exhibit 1.2 (Governance Model) Solicitation No. 5400026039

SCEIS Modernization

Exhibit 1.2 Governance Model

Solicitation No. 5400026039

Table of Contents

Figures Figure 1 - SCEIS Governance Entities 3

Introduction The South Carolina Department of Administration (Admin) SCEIS Sourcing Management has operational governance responsibilities for SCEIS (South Carolina Enterprise Information System) Service Provider Services. SCEIS Sourcing Management provides centralized management of Service Provider Services while liaising with Admin SCEIS Governance for statewide SCEIS services visibility, strategic direction, and escalated issues. This Exhibit 1.2 (Governance Model) describes the SCEIS Sourcing Management roles and responsibilities and working relationships.

The purpose of the SCEIS governance model is to ensure that SCEIS objectives are continually met through a healthy relationship with the Service Provider. This approach seeks to understand and meet each party’s objectives, ensure each party is meeting its own commitments in the relationship, and is efficiently and flexibly managing change. With a focus on creatively meeting goals and a healthy relationship in place, the Service Provider is allowed to innovate as SCEIS requirements change.

The governance model is a set of defined interactions, expectations, decisions, roles, and processes that guide the governance of Service Provider Services. The governance model is designed to be informed of the overall service operations while facilitating effective resolution of issues and enabling strategic decision-making.

Guiding principles used to formulate the governance model include the following:

1. Strong and effective customer engagement.

2. Resolving issues at the lowest possible level.

3. Establishing representative groups to resolve issues.

4. Monitoring governance contractual requirements.

5. Monitor interparty relationships between all Service Components.

6. Evolving service options and supporting innovation.

7. Formalize roles and responsibilities for governance strategy and issue management among Admin, Admin retained teams, and the Service Provider.

SCEIS Governance Structure Operational governance consists of the day-to-day management of the Service Provider Services, program-level communications, issue resolution, contractual and funding oversight, and Consumer satisfaction.

Figure 1 - SCEIS Governance Entities Success with the Governance Model rests mainly on the effective management of operational processes that the Service Provider is responsible for establishing and operating with Admin and the SCEIS Consumers. This close relationship between the Service Provider, Admin, and Consumers provides an efficient working and operational governance foundation to foster quality services, including resolving issues and making in-scope decisions at the lowest possible level. Nearly all issues are expected to be resolved through direct interaction between the Service Provider and Sourcing Management or the Service Provider and Consumers with Admin Executive Leadership participation only for escalated issues as appropriate.

Admin SCEIS Governance Admin provides overall leadership and coordination for strategic governance of SCEIS services. SCEIS Sourcing Management will leverage the existing Admin SCEIS Governance model to provide the following oversight for SCEIS services:

1. Define the strategic business direction of services.

2. Resolve business critical issues escalated from SCEIS Sourcing Management.

3. Monitor implications of results for business performance.

4. Ensure strategic goals are achieved.

5. Approve changes to governance decision making framework for services.

6. Approve the addition or deletion of services.

7. Approve changes to the service delivery model.

8. Monitor service delivery and performance.

9. Resolve issues with broad enterprise financial implications.

10. Approve critical security or technology-related decisions.

11. Consult on analysis of Consumer Satisfaction Survey results and action plans.

12. Review and approve Service Levels, services, and performance reporting changes to align with business requirements.

SCEIS Sourcing Management Responsibilities Performance Management Role:

1. Ensure compliance with SMM processes.

2. Conduct deliverable review and approval.

3. Monitor RFS and Project Work Order management.

4. Perform project review and approval.

5. Facilitate oversight of security and architectural standards within solutions.

6. Review Consumer service satisfaction measurement results and analysis.

Responsibilities:

1. The initial point of contact for Consumers on service issues.

2. The initial point of contact for Service Providers on delivery.

3. Monitor day-to-day delivery.

4. Implement and maintain a repository for all aspects of service delivery, SMMs, continuous improvement programs, performance improvement programs, and manage processes to track all improvement action items.

5. Monitor RFS and Project Work Order processes and approvals.

6. Oversee incident and problem root cause analysis.

7. Ensure service delivery meets SLA requirements.

8. Develop performance improvement plans with the Service Provider.

9. Review and approve/deny Service Level exception requests and track SLA credits.

10. Review and recommend adjustments to Service Levels.

Contract Administration Role:

1. Service Provider onboarding.

2. Service Provider Contract management.

3. Service Provider correspondence.

Responsibilities:

1. Contract library administration.

2. Service Provider audit.

3. Service Provider Contract change and modification management.

4. Service Provider Contract renewal.

5. Service Provider Contract closeout.

Commercial Management Role:

1. Ensure integrity of business model.

2. Ensure compliance with contract requirements.

3. Ensure deliverables and obligations are timely.

Financial Management Responsibilities:

1. Support overall SCEIS financial planning, budgets, and reporting.

2. Perform monthly Service Provider invoice verification and dispute management.

3. Investigate variances in forecasted Service Provider expenses or usage.

4. Participate in review of Service Provider-provided project estimates and business cases for inclusion to contract schedules.

5. Review business case for all special projects and new services.

Contract Management Responsibilities:

1. Consumer advisor for consumption management.

2. Provide active leadership to resolve contract issues and disputes.

3. Monitor and facilitate approvals of Service Provider’s deliverable commitments.

4. Ensure terms and conditions of the Contract are satisfied.

5. Track and audit retained software license compliance.

6. As required, conduct benchmarks and analyze results.

Relationship Management Role:

1. Coordinate program communications.

2. Oversight of Consumer satisfaction.

3. Service Provider relationship management.

4. Foster a healthy relationship with the Service Provider to create value.

Service Provider Relationship Responsibilities:

1. Provide active leadership to resolve contract issues and disputes.

2. Assist with service escalation events.

3. Liaison between agency leadership and Service Provider.

4. Communicate service status, major changes, or improvements.

5. Facilitate educational materials and training on the services.

6. Facilitate the development and delivery of key messages for Service Providers.

7. Ensure understanding within Admin of Service Provider roles and behaviors required to sustain effective long-term partnerships.

8. Oversee SCEIS risk management program.

Consumer Relationship Responsibilities:

1. Consumer advocate to ensure services meet expectations.

2. Stay informed on services, projects, and plans to meet customer objectives.

3. Manage Service Provider response to Consumer demand.

4. Monitor Consumer satisfaction and provide remediation through effective communication between Consumer and Service Provider.

Sourcing Management Governance Meetings Sourcing Management will establish and coordinate governing meetings with the Service Provider and facilitate meeting agendas, presentations, and notes. Regularly scheduled operational meetings may focus on service delivery, projects and project planning, finance, or other topics. The Service Provider may be invited to participate in these meetings and may also be asked to research issues, make presentations, and complete follow-up action items.

The meeting cadence and agendas will be developed during the Transition period. The target meeting cadence will be weekly or monthly as needed, with topics including the following:

1. Service delivery and service level performance

2. Service improvement initiatives

3. Financial management and planning

4. Contract administration and Deliverables

5. Information Security

6. Consumer Satisfaction

7. Issues Management and escalations

8. Service Management Manual currency

9. Solution Request management

10. Project management Sourcing Management’s role includes interpreting the Contract from the State’s perspective, executing contract oversight, sustaining governance processes, and promoting effective program communication.

Sourcing Management will participate as a chair or co-chair on all governance committees, based on the committee charters, with the responsibility to coordinate topics spanning multiple groups and to facilitate the execution of decisions.

Service Provider Responsibilities To support the governance model, the Service Provider has an essential role as subject matter expert on technology, solutions, and feasibility. This includes the following responsibilities:

1. Engage directly with Admin Retained Teams and SCEIS Sourcing Management to resolve their specific operational issues at the lowest level.

2. Assign empowered subject-matter experts to participate as requested in governance committees to resolve enterprise issues.

3. Research, as necessary, and document the Service Provider perspective for issue resolution papers.

4. Provide timely and accurate data, information, and responses to promote prompt resolution of issues.

5. Enable and facilitate the use of the issue management process.

6. Aggregate demand from the Consumers for the services and communicate aggregated demand forecasts for resources to the Admin Retained Teams and SCEIS Sourcing Management teams.

7. Participating in governance as governance group charters requires identifying technical options for solving issues, participating in collaborative solution development, and providing the Service Provider’s technical and business perspective.

Escalations As noted above, the governance model strives to resolve issues at the operational level. However, not all issues will be resolved at this level. Hence, the governance model includes an escalation process designed to route the issue promptly and efficiently to the appropriate committee for resolution.

After the Admin Retained Teams and Service Provider determine an issue cannot be resolved at the local operational level, the issue is escalated to Governance, where SCEIS Sourcing Management will further attempt to resolve it. If resolution is not reached quickly, then SCEIS Sourcing Management determines the appropriate governance committee or forum for resolution and coordinates with Governance to determine when the issue can be placed on the agenda.

Sourcing Management coordinates with the Admin Retained Teams and Service Provider involved in the issue to complete the required documentation for Admin Retained Teams input on the process as follows:

1. Sourcing Management and the governance committee chair or co-chair coordinate the distribution of the issue material with the meeting agenda.

2. Meeting agendas and associated material are distributed to Admin Retained Teams in advance of the meeting, with approximately five (5) to seven (7) Business Days for Admin Retained Teams and the Service Provider to review and provide input to their committee representative and approximately two (2) days for SCEIS Sourcing Management to compile the comments received for distribution to all.

3. After the meeting, decisions will be documented with the issue.

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