Exhibit E, Scope of Work (SOW).pdf

RFP No. HHS0015252 Exhibit E

Exhibit E, Scope of Work (SOW)

Document Processing Services

RFP No. HHS0015252

Table of Contents

1. Overview

2. Contract Management Requirements

2.1 Formal Communication Process Requirements

2.2 Performance Measures and Associated Remedies

2.3 Contract Retention Requirement

2.4 Contract Monitoring Questionnaire (CMQ) and Requirements

3. Operational Requirements

3.1 HHSC Responsibilities

3.2 Equipment, Accessibility, and Operations

3.2.1 HHSC Responsibilities

3.3 Training Requirements

3.3.1 Training Plan

3.3.2 HHSC Responsibilities

3.4 Key Personnel and Organizational Requirements

3.4.1 Organizational Structure

3.4.2 Key Staffing Positions

3.4.3 Unqualified Personnel

3.4.4 HHSC Responsibilities

3.5 Transition Phase - Requirements

3.5.1 Transition Phase - Project Management

3.5.2 Transition Phase Work Plan

3.5.3 Transition Phase - Facility and Business Structure Transition Plan

3.6 Risk Management and Issue Resolution Plan

3.7 Readiness Assessment Process

3.7.1 HHSC Responsibilities

3.8 Operational Phase Requirements

3.8.1 Business Operations Plan

3.8.2 HHSC Responsibilities

3.9 Facility Acquisition and Equipment Requirements

3.9.1 Utilization of Current Investment

3.9.2 Configuration Management

3.9.3 Facility Acquisition, Management and Operation

3.10 Security Management

3.11 Disaster Recovery and Business Continuity Plan

3.11.1 Recovery Time Objective (RTO)

3.11.2 Disaster Recovery Exercise

3.11.3 HHSC Responsibilities

3.12 Quality Assurance Program Requirements

3.12.1 Quality Management Plan

3.12.2 Quality Assurance Areas

3.12.3 Performance Measurement

3.12.4 Assessment Plans

3.12.5 Corrective Action and Continuous Improvement Plans

3.12.6 Reporting Requirements

3.12.7 Data Access Requirements

3.12.8 Repository Requirements

3.12.9 Single Point of Contact

3.12.10 Contractor Quality Assurance Requirements

3.12.11 HHSC Responsibilities

3.13 Communication and Coordination Requirements

3.14 Turnover Requirements

3.14.1 Turnover Phases

3.14.2 Turnover Plan

3.14.3 Facilities and Business Structure Turnover Plan

3.14.4 Turnover Results

3.14.5 Post-Turnover Support

3.14.6 HHSC Responsibilities

4. Financial Requirements

4.1 Overview of Financial Approach

4.2 Financial Accounting and Reporting Requirements

4.2.1 Overview of Financial Accounting and Reporting Requirements

4.2.2 Business Objectives of Financial Accounting and Reporting Requirements

4.2.3 Financial Accounting Requirements

4.2.4 HHSC Responsibilities

4.2.5 General Access to Accounting Records

4.2.6 Financial Report Requirements

4.2.7 HHSC Responsibilities

4.3 Financial Payment Structure and Provisions

4.3.1 Overview of Financial Payment Structures

4.3.2 Payment and Reimbursement Terms

4.3.3 Payment for Implementation and Transition Deliverables

4.4 Capital Items and Asset Ownership under All-Inclusive Pricings

4.4.1 Ownership and Management of Capital Items in All-Inclusive Contract

1. Overview

Document Processing Services (DPS) Contractor provides administrative Services that assists the Texas Health and Human Service Commission (HHSC) receive and process applications for public assistance, forms, and supporting documentation as described within this exhibit.

2. Contract Management Requirements

2.1 Formal Communication Process Requirements

Contractor must establish formal communication with HHSC for receipt and response to requests for information, high-level estimates of costs, Work Products, ad hoc reports, Deliverables, updates, and other required correspondence related to Contract requirements.

HHSC will issue State Action Requests (SARs) to the Contractor following established procedures and timelines. The Contractor will issue Vendor Action Requests (VARs) to HHSC according to established procedures and timelines. This includes submitting the Contract Exhibit G, Deliverables, and Exhibit F, Key Performance Requirements (KPRs) using the approved VAR template. This template will be provided upon Contract award.

The Contractor's proposal must outline how formal communication will be established and managed with HHSC, including a designated point of contact, processes to meet response deadlines, and a quality assurance procedure.

Additionally, the Contractor must perform all requirements outlined in this RFP, including but not limited to the numbered items beginning with item number DP 001 below and continuing throughout this RFP. Requirements that call for the Contractor to submit tangible or intangible products to HHSC ("Deliverables") as part of this RFP include the letter "D" at the end of the item number (for example, see item DP 005-D).

DP 001 Submit complete and accurate responses to any SAR or VAR memos no later than ten (10) calendar days after the Contractor’s receipt of the request or by the date specified in the memo.

DP 002 Submit written request for extension of a SAR or VAR deadline that specifies the estimated date of completion and reasons for the extension no later than three (3) business days prior to the response due date.

DP 003 The Contractor must provide ad hoc reports and respond to Legislative inquiries and other high priority requests within thirty-six (36) hours from the time of the request or by the date and/or time specified by HHSC.

DP 004 If the Contractor is late in responding, or does not provide adequate information, HHSC will assess non-compliance remedies as described in Section 2.2 Performance Measures and Associated Remedies of Exhibit E, Scope for Work (SOW).

HHSC’s formal communication process will be utilized for the submission of all KPRs and Deliverable reports. HHSC provides comments and approval of each report provided in support of this agreement.

2.1.1 HHSC Responsibilities

To fulfill the requirements of this procurement, HHSC will:

A. Provide SAR and VAR related communication procedural requirements, template to be provided to Contractor upon award.

B. Define the criteria for data elements to be included in ad hoc reports and the information which will be included in the executed reports or other high-priority requests.

C. Define acceptance criteria for each deliverable within Exhibit G, by outlining the required due date and all requirements to be included within each deliverable.

At its discretion, HHSC may review, approve, or require modification to the Contractor’s proposed formal communication process.

2.2 Performance Measures and Associated Remedies

HHSC will monitor the performance of the Contract issued under this RFP. All administrative Services and Deliverables under the Contract shall be provided at or above a level acceptable by HHSC as defined by the requirements specified in this RFP. Failure to comply may, at the discretion of HHSC, result in the assessment of liquidated damages.

HHSC has identified the KPRs in this RFP as referenced in Exhibit F, Key Performance Requirements, to the RFP. HHSC will review KPRs to ensure the Contractor is achieving the desired outcome. Reviews will be completed upon submission of KPRs on the established reporting date as referenced in Exhibit F, Key Performance Requirements.

KPRs will be used to gauge the Contractor’s commitment to successful performance, its willingness to stand behind its products and administrative Services during the course of the Contract, as well as its confidence in its ability to perform. However, all areas of responsibility and all requirements in the Contract will be subject to performance evaluation by HHSC. Any and all responsibilities or requirements not fulfilled may have remedies applied and either actual or liquidated damages assessed, as determined by HHSC.

HHSC will include standard remedies in the Contract (see Exhibit B, HHS Uniform Terms and Conditions – Vendor, Version 3.4) resulting from the RFP. Examples of remedies include but are not limited to:

A. Pass-through of a proportional share of federal disallowances and remedies imposed on the State and resulting from the Contractor’s performance or non-performance under the Contract;

B. Written corrective action plan(s) approved by HHSC that details the specified performance issues, as well as steps and timelines for the Contractor to respond and correct;

C. Additional or ad hoc reporting by the Contractor, at no cost to HHSC, to address performance issues;

D. Accelerated monitoring of the Contractor’s performance by HHSC or its designee, including access to the Contractor’s facilities, records, data, information systems and personnel;

E. Withholding or set-off of payments to the Contractor;

F. The assessment of liquidated damages in accordance with Texas law;

G. Termination or suspension of the Contract; and H. Equitable remedies as provided by Texas law.

2.3 Contract Retention Requirement

The Contractor must comply with Contract retention requirements described in Exhibit B, HHS Uniform Terms and Conditions – Vendor, Version 3.4.

2.4 Contract Monitoring Questionnaire (CMQ) and Requirements

The Contractor must comply with all applicable cost principles, audit and Contract monitoring requirements, and administrative requirements in accordance with the Contract, Contract Management Guidelines, and State and federal regulations. To ensure compliance with these requirements, HHSC utilizes a risk-based Contract monitoring process, Contract Monitoring Questionnaire (CMQ), which is part of the risk-based Contract monitoring process and provides HHSC with detailed and ongoing information regarding the Contractor’s internal and financial controls and other general contracting processes.

In addition to the requirements stated above, the Contractor must:

DP 005-D Submit an initial CMQ within thirty (30) calendar days after Contract

Effective Date and annually within sixty (60) calendar days prior to the end of each State Fiscal Year (SFY).

3. Operational Requirements

HHSC is seeking to procure a Contractor to provide Document Processing Services using State provided document imaging solution as outlined in Exhibit I, HHSC Kofax ES - ECM Mail Channel Flow and Exhibit J, Kofax Mail Channel – DR Site. The Contractor must provide a comprehensive business solution for managing inbound documents received from HHSC offices, applicants, and existing Consumers such as, but not limited to, application for assistance, requests for recertification for assistance, verification documents, reported changes, Enrollment Broker (EB) documents, requests for verification forms, or other Consumer correspondence.

The Contractor is expected to utilize HHSC equipment while performing the administrative Services to conserve HHSC resources and minimize cost.

The Contractor shall provide comprehensive inbound document processing services and a detailed processing timeframe, retention, and real-time retrieval strategy for documents received, and associated cost implications in compliance with HHSC requirements. The document processing services must include imaging of inbound documents, which is defined as the process of scanning and saving documents as electronic images in HHSC’s system for online access and viewing, as well as document handling and retention according to HHSC requirements.

As part of the agreement for managing documents, the Contractor must include a process for accepting HHSC paper documentation from HHSC offices and staff in accordance with HHSC defined procedures. The process must be consistent with HHSC document processing procedures and integrated with HHSC’s process for image capture and must include performance standards and reporting mechanisms that are acceptable to HHSC.

DP 006 Assist HHSC with implementation of any initiatives that may result from a legislative request, audit finding, policy change, etc., that helps the Agency meet State and federal timeliness requirements for processing Consumer/applicant requests.

DP 007 Receive and process inbound mail including, but not limited to:

A. Operate maintain and pick up mail in a manner approved by HHSC from existing HHSC managed post office boxes, or other locations as required.;

B. Provide a primary and secondary method of transportation or alternative method to obtain mail from the USPS;

C. Accept delivery from other delivery services from all carriers including but not limited to Fed Ex Corporation, United Parcel Service, Lone Star Mailing Services, and DHL International;

D. Open incoming mail and complete imaging within defined time periods specified in Exhibit F, Key Performance Requirements;

E. Identify and secure Federal Tax Information (FTI) according to HHSC defined method in Exhibit T, Document Processing Center Procedures;

F. Reroute misdirected mail or payments as approved by HHSC in Exhibit T, Document Processing Center Procedures;

G. Modify and maintain document processing procedures as defined and approved by HHSC in Exhibit T, Document Processing Center Procedures;

H. After scanning is complete, return any original documents to the Consumer by the next business day after receipt;

I. Retain received inbound documents for thirty (30) calendar days and up to ninety (90) days for documents used in Quality Assurance reviews, then destroy Confidential Information in a secure fashion that protects against any reasonably anticipated threats or hazards to the security or integrity of such information or unauthorized users;

J. Process and dispose of contaminated mail according to Exhibit T, Document Processing Center Procedures;

K. Properly and efficiently handle threatening mail. Examples of threatening mail, include but are not limited to, mail containing a report of abuse to an elderly person or child, a threat to an individual’s life or a threat to an HHSC staff member/office;

L. Comply with the Health Insurance Portability and Accountability Act (HIPAA) and other applicable State and federal privacy, security and breach notification laws when receiving, identifying and processing documents that may constitute an unauthorized disclosure of information; and

M. In the event of a disaster, process Disaster SNAP Applications in accordance with the guidelines provided by HHSC.

DP 008 Scan documents front and back into imaging equipment to create an image of all information, including envelopes, which has been received from any form of mail delivery service, as indicated in Exhibit I, HHSC Kofax ES-ECM Mail Channel Flow.

DP 009 Ensure quality of image is usable by image association and HHSC staff.

DP 010 Conduct daily Quality Assurance review of images within defined time periods specified in Exhibit F, Key Performance Requirements.

DP 011 Maintain quality of administrative service in compliance with HHSC specified service levels, including:

A. Imaging/scanning equipment and operational resources, B. Image quality, C. Agency received date for documents, D. Scanning of all agreed documentation received by the DPC; and E. Escalation and corrective action/resolution processes as related to imaging (rescan, image research, etc.).

DP 012 Design, develop, implement, and maintain acceptable quality controls for ensuring accuracy of data collected from inbound documents (inclusive of Agency’s received date being identified, maintained, and utilized).

DP 013 Establish a process to notify and route to HHSC documents, not imaged, that are not appropriate for imaging but have been received by mail. This includes but is not limited to hazardous materials, documents with inappropriate images, or other items received that cannot be imaged, such as, nudity or profanity.

DP 014 Meet all State and federal record retention, privacy, and confidentiality requirements.

DP 015 Maintain and reconcile established reporting methods to provide end to end count transaction Reconciliation to HHSC.

DP 016-D Submit document processing procedures and business processes updates within thirty (30) business days after Contract Effective Date and anytime thereafter when specified by HHSC.

DP 017-D Submit annual updates to the document processing procedures and business processes via the formal communication process, no less than thirty (30) calendar days prior to the end of each operational year of the Contract.

3.1 HHSC Responsibilities

A. Provide the image capture software solution, currently Kofax, as referenced in Exhibit I, HHSC Kofax ES – ECM Mail Channel Flow, and Exhibit J, Kofax Mail Channel – DR Site.

B. Provide image routing software solution with sorting rules based upon the type of document received or another barcoding.

C. Monitor the Contractor’s compliance with policy, timeliness, accuracy standards, and require Corrective Action Plans when standards are not met; and

D. Provide imaging solution for scanning.

At its discretion, HHSC may:

A. Initiate or review and approve changes, additions, deletions, and other modifications to all of the Contractor functions, business processes, or workflows; and B. Review, approve, or require modification to all detailed plans associated with designing and deploying the Contractor’s processes.

3.2 Equipment, Accessibility, and Operations

The Contractor must utilize the current document processing equipment owned by HHSC.

The Contractor will submit a Transition Plan for a transition of the current DPC Operations.

The Contractor will be expected to provide sufficient and trained staffing levels to maintain and operate the mail and imaging equipment to meet HHSC requirements. This staff will use the document processing equipment to manage, maintain and improve mail and imaging operations.

DP 018 Utilize existing mail opening equipment.

DP 019 Utilize existing mail sorting equipment.

DP 020 Utilize existing document imaging/scanning equipment compliant with HHSC requirements and technical specifications.

DP 021 Utilize existing document processing equipment to support business continuity.

3.2.1 HHSC Responsibilities

A. Facilitate discussions with applicable resources for the Contractor’s proposal to utilize existing HHSC and State infrastructure components; and B. Provide the image capture procedure for storage of images.

A. Initiate or review and approve changes, additions, deletions, and other modifications to all functions and processes; and B. Review, approve, or require modification to the Contractor’s proposed final integration, testing, and deployment strategy.

3.3 Training Requirements

HHSC will have oversight (monitor, review and approve) of all training activities. The Contractor’s proposal must provide a training strategy sufficient to meet or exceed its contractual responsibilities, in compliance with federal, State, and HHSC requirements.

The Contractor must allow a minimum of ten (10) business days and in some instances greater than ten (10) business days, depending on the size of the change(s) for the review and approval process. HHSC reserves the right to require the Contractor to revise any training material.

3.3.1 Training Plan

The Contractor must provide a Training Plan which describes processes that include training activities for Contractor and HHSC staff and Subcontractors. The Contractor must develop procedures for maintaining and updating the Training Plan and training materials throughout the Contract Term, on an as needed basis.

DP 022-D Submit a Training Plan no less than sixty (60) calendar days prior to the operational start date or by the date specified by HHSC and anytime thereafter when specified by HHSC including but not limited to all of the requirements listed below.

The Training Plan must address the following requirements:

A. Staffing

1. Contractor will propose an administrative organizational training structure that meets or exceeds contractual responsibilities.

2. Contractor must include a description of the different types of instructor-led training and the anticipated instructor to student ratio.

3. Contractor will identify all levels of training staff knowledge, experience, skills, and abilities.

4. The Contractor will provide a plan for monitoring training staff, including but not limited to Corrective Action Planning, to ensure quality products are developed and delivered.

5. The Contractor will explain how the staffing plan accommodates potential increases/decreases in work volumes and staff Turnover and provide a detailed description of the methodology used.

B. Curriculum Development

1. The Contractor will outline appropriate curricula and training delivery methods.

2. The Contractor will include a plan for designing, developing, implementing, and maintaining curriculum that supports HHSC functions, fulfills contractual responsibilities, and utilizes appropriate adult learning methodologies.

3. The Contractor will design training plans for new hires, existing employees, and supervisors/managers for initial, remedial, and corrective action, refresher/reinforcement, and continuous improvement training.

4. The Contractor will design curricula that capture expected results (measurable and repeatable) for students.

5. The Contractor must describe how curricula will capture expected results (measurable and repeatable) for students and trainers to measure successful completion of training.

6. HHSC reserves the right to observe and participate in training sessions.

DP 023-D Submit all initial curricula, training materials, and tools thirty (30) calendar days prior to initial training delivery dates to HHSC for review and approval. HHSC reserves the right to request training material and tools at its discretion.

A. Training Delivery

1. The Contractor will outline a plan for effective training delivery and knowledge transfer; and

2. The Contractor will design student assessments that measure successful achievement of class competencies.

B. Continuous Improvement

1. The Contractor will describe processes that support ongoing employee and business process excellence, growth, and development; and

2. The Contractor will provide detailed description of internal evaluation processes; including corrective actions and monitoring that ensure successful training.

C. Training Automation Support

1. The Contractor will include strategies for training staff on all equipment required for all levels of staff to effectively perform job tasks; and

2. The Contractor must provide a plan for tracking staff training, including but not limited to completion, student assessment scores, and evaluations in a learning management system. HHSC must have full access to learning management data to validate, monitor and review training progress and training outcomes.

D. Facilities/Equipment/Materials

The Contractor will outline a plan for training to be available within the facility. Refer to the Section 3.9 Facility Acquisition and Equipment Requirements.

E. Costing Methodology The Contractor must include methodologies and all metrics/formulas used to determine initial, additional, and ongoing training costs.

F. Single Point of Contact

The Contractor will provide a single point of contact for all training activities to facilitate communication, help resolve issues and complaints, escalate problems, and share successes via phone, email, Teams, etc.

G. Accessibility and Diversity

The Training Plan must include specific training approaches to address training for persons with disabilities.

DP 024 Design, develop, implement, and maintain a training plan that ensures the Contractor staff effectively performs job tasks that support HHSC functions and are in accordance with contractual responsibilities.

DP 025 Design, develop and maintain curricula, training materials, and tools.

The Contractor must describe how curricula will capture expected results (measurable and repeatable) for students and trainers to measure the successful completions of training.

DP 026 Deliver initial, ongoing, refresher/reinforcement training to all

Contractor and designated HHSC staff (on a schedule agreed upon by HHSC) as required to meet or exceed its contractual responsibilities and to support HHSC functions.

DP 027 Design, develop, implement, and maintain a continuous improvement process (internal Quality Assurance process) that demonstrates The Contractor must commit to quality improvement in training curriculum and delivery.

DP 028-D Submit a quarterly Training Delivery Completion Report and Status

Report by the tenth (10th) business day of each calendar quarter (i.e.

Jan – March due by the 10th business day of April) which includes the following Training Deliverable Reports specified below:

1. A Training Delivery Completion Report which outlines, but is not limited to, classes delivered, number of pass/fail participants by class, class name, delivery dates, trainer name, type of training, remediation plan, and follow-up plan on subsequent reports; and

2. A Training Calendar of all classes scheduled including but not limited to class title, class size, course dates, audience, and type of training for the upcoming three (3) months with an explanation for any changes on the prior submissions.

DP 029 The Contractor must provide training that is sufficiently equipped for initial and ongoing training.

DP 030 The Contractor will provide and maintain training repository and learning management system and ensure HHSC access.

3.3.2 HHSC Responsibilities

A. Have oversight of all Contractor training activities.

B. Audit (monitor, observe and evaluate) Contractor delivered training.

C. Review and approve Contractor curricula and training related materials and require additions or deletions.

D. Review Training Plan and require additions, deletions, or use of HHSC developed curricula”; and” E. Provide training contacts to facilitate communication and resolve issues.

3.4 Key Personnel and Organizational Requirements

To establish strong accountability controls, Contractor must propose and provide for HHSC approval ongoing reporting of organizational structure and identification of Key Personnel, including resumes and references.

3.4.1 Organizational Structure

A. The Contractor must demonstrate an organizational structure that has a clear chain of command, roles, responsibilities and decision-making authority. This must include Executive Level Management or leadership structure (e.g. Chief Executive Officer, Director of Operations, Chief Operations Officer). These roles must oversee/manage staff operations performed at the DPC.

B. The Contractor must demonstrate a qualified Executive-level Management or Leadership structure that maintains critical operations inclusive of back-ups that possess the corresponding experience and skills, along with the ability to make executive-level decisions related to the operations of the Document Processing Center (DPC).

3.4.2 Key Staffing Positions

A. The Contractor may not reduce the agreed-upon organizational staffing levels without prior written approval by HHSC.

B. The Contractor must not replace any Key Personnel without HHSC’s prior written approval.

C. HHSC reserves the right to approve or reject any staff and replacement staff proposed by the Contractor.

D. All positions in the organizational chart must remain filled, with no vacancies beyond ninety (90) calendar days unless State Agency approves. This applies to all positions except Scan Operators and Preparation staff.

E. The Contractor must provide for HHSC approval prior notice of any changes in Key Personnel during the term of the Contract and any extensions.

F. The Contractor must assign a qualified staff member to perform all duties of vacant Key Personnel positions on an interim basis within seven (7) days of termination or resignation if a permanent replacement is not selected and approved by HHSC by that time.

3.4.3 Unqualified Personnel

A. Contractor shall not employ, Contract with, or permit the employment of unfit or unqualified persons or persons not skilled in the tasks assigned to them.

B. The Contractor shall at all times employ sufficient labor to carry out functions and services in the manner and time prescribed by the Contract.

C. The Contractor shall be responsible to HHSC for the acts and omissions of the

Contractor’s employees, agents (including, but not limited to, lobbyists), and Subcontractors.

D. The Contractor shall create processes that ensure the Contractor’s employees, agents (including, but not limited to, lobbyists) and Subcontractors performing the services under the Contract adhere to company rules and regulations and address misconduct and insubordination.

After Contract Award, the Contractor must propose for HHSC approval all organizational changes that result in a restructure of the organization or redirection of Key Personnel to perform functions other than the responsibilities of their current positions, either temporarily or permanently, within fourteen (14) calendar days prior to the change.

DP 031 Maintain a core staff sufficient for successful fulfillment of Contract and performance requirements with experience in systems, operations, policy and procedures, and in the functional areas in which they work.

DP 032 Propose Key Personnel in their response to the RFP and provide resumes and references for HHSC approval.

DP 033 Allocate Key Personnel 100% to this Contract.

DP 034-D Submit notification to HHSC in writing fourteen (14) calendar days prior to a Key Personnel vacancy for any reason or prior to making any changes in Key Personnel other than changes due to resignation, death, or military recall. Notification must include a plan to recruit Key Personnel.

DP 035 Remove Key Personnel or any Contractor’s employee or

Subcontractor employee found unacceptable to HHSC, including any system access they may have, immediately upon the request of removal by HHSC.

DP 036 Replace any Key Personnel with HHSC-approved personnel within thirty (30) calendar days of the approval with personnel of equal or greater skills and abilities required by the position.

DP 037-D Submit resumes and references of proposed replacement Key

Personnel for HHSC review prior to making a job offer no later than seven (7) calendar days from notification of resignation or request for removal.

DP 038-D Submit an initial organizational chart within thirty (30) calendar days after the operational start date, including the names and positions of all personnel assigned to this Contract. The organizational chart must designate who are Key Personnel and indicate which positions are eligible for telework.

DP 039-D Submit an updated organizational chart on a quarterly basis within ten (10) calendar days after the end of the calendar quarter identifying the names and positions of all personnel assigned to this Contract.

The organizational chart must designate who are Key Personnel, indicate which positions are eligible for telework, list the date any vacancy occurred for a given position and include a list at the top of the organizational chart indicating what changes were made to the organizational chart from the previous submission.

Reporting Quarters:

A. First Quarter - January – March (due by the 10th of April) B. Second Quarter -April – June (due by the 10th of July) C. Third Quarter - July – September (due by the 10th of October);

and D. Fourth Quarter - October – December (due by the 10th of

January)

DP 040-D Submit notification to HHSC in writing and request approval ten (10) calendar days prior to Key Personnel are temporarily redirected to perform functions other than the responsibilities of their current position, unless previously approved by HHSC.

DP 041 Obtain appropriate background checks for all personnel and, on HHSC’s request, for Subcontractors who by virtue of their access to information or facilities may, in HHSC’s sole discretion, present a risk to the safety or security of Consumers and other persons or the integrity, confidentiality or security of HHSC information. The Contractor must represent and warrant to HHSC that continued employment of such personnel by the Contractor shall be contingent upon the Contractor’s compliance with these and other appropriate security measures that may be required by

HHSC.

3.4.4 HHSC Responsibilities

A. Review, approve or require modification to the Contractor’s proposed Key Personnel.

B. Review, approve, or require modification to any changes in Key Personnel.

C. Reserve the right to require replacement of Key Personnel or any of the

Contractor’s employee or Subcontractor employee found unacceptable to

HHSC.

D. Reserve the right to request a rebate or price reduction for Key Personnel positions that remain vacant longer than thirty (30) calendar days.

E. Review, approve, or require modification to the Contractor’s proposed, initial, and quarterly organizational charts and organizational changes.

3.5 Transition Phase - Requirements

HHSC must ensure that the process of transitioning to a new contractor from the incumbent upon Contract Award, results in a predictable and seamless transition where services to Consumers continue to be delivered in a timely and accurate manner according to the requirements outlined in this RFP.

The transition will be determined successful if Consumers and HHSC do not experience any degradation in service levels that would impede the delivery of eligibility determinations by HHSC, or negatively impact the accuracy and timeliness of those determinations.

The primary objectives of the Transition Phase are to meet the following with an emphasis on cost, schedule, and quality:

A. Ensure a smooth transition and implementation of business operations and systems;

B. Perform readiness assessment thoroughly and timely for implementation;

C. Establish strong Contractor accountability controls;

D. Ensure comprehensive knowledge transfer;

E. Ensure cost effectiveness; and F. Mitigate risk to Consumers and HHSC.

This includes all of the project management activities required to successfully support eligibility support services, and other components as determined by HHSC.

3.5.1 Transition Phase - Project Management

Comprehensive Project Management approach must include the following:

A. Project Management Office (PMO) Organization, B. Transition Phase Project Work Plan (with schedule and resource allocations), C. Facility and Business Structure Transition Plan, D. Transition operations, E. Staffing, F. Training, G. System equipment and testing, H. Systems and operations readiness assessment, I. Implementation, J. Coordination and communication, K. Risk management and issue resolution, L. Change management, M. Systems integrations where applicable, N. Security management, O. Disaster Recovery and business continuity; and P. Integration of business operations.

HHSC reserves the right to waive the review and approval of any Contractor’s work product. This waiver will be communicated in advance to the Contractor through the Official Correspondence Process. Neither the waiver of review nor approval by HHSC will relieve the Contractor of liability for errors and omissions in the work product.

Transition Phase - Project Management Office (PMO) Organization

An established Transition Phase PMO in Texas with an organizational structure must be responsible for managing the transition project tasks, deliverables, and risks.

HHSC, the incumbent, and the Contractor must work together during the initial Transition Phase to define specific Project Management and reporting standards, establish communication protocols, and establish specific work products and tasks the Contractor’s PMO will perform. The Contractor must outline communication protocols, including the Contractor’s approach to progress tracking and status reporting.

DP 042 Implement PMO organization structure no later than fifteen (15) business days after Contract Effective Date.

If the Contractor intends to continue to maintain a PMO after the Transition Phase is concluded, then the Contractor must specify functions that will be performed by the operations PMO for HHSC to review and approve.

3.5.2 Transition Phase Work Plan

To ensure the mitigation of risk to HHSC and Consumer services/access, the Contractor must establish a comprehensive Transition Phase Work Plan to track the project team’s progress regarding project tasks, deliverables, management of risks and progress toward readiness for operations assumption.

HHSC and the Contractor must work together throughout the Transition Phase to establish a detailed schedule for all activities and define expectations for the content and format of the Contract deliverables. This detailed schedule must address continued business operations for all transition functions and requirements.

The Contractor’s final Transition Phase Work Plan must include examples of reports that support the progress on the work plan for the transition components including, but not limited to due dates and tasks associated with:

A. Transition operations;

B. Staffing;

C. Training;

D. Quality Assurance and quality control activities;

E. System equipment and testing;

F. Systems and operations readiness assessment;

G. Implementation; and H. Coordination and communication.

For each of the above components, include the following data elements within the work plan that the Contractor is required to report on:

A. A logical sequence of tasks and progress reports;

B. A clear definition of each task and progress report;

C. Staff loading for each task and progress report;

D. A specific target completion date for each task and progress report;

E. Track and report completion of tasks within the work plan; and F. Task and progress report relationships and dependencies.

DP 043-D Submit a Transition Phase Work Plan within forty-five (45) calendar days after Contract Effective Date.

DP 044 Upon final approval from HHSC on the Transition Phase Work Plan, the Contractor is expected to begin performing work under the plan.

DP 045 Coordinate with the incumbent as needed to address questions or concerns related to the transition DP 046-D Submit a Weekly Transition Phase Status Report by 5:00 p.m. the

Monday following the last day of the week covered by the report, or the next business day if Monday falls on a holiday. HHSC will inform the Contractor when the weekly Transition Phase status report submission period begins and ends. The Weekly Transition Phase Status Report must include but is not limited to the following:

A. Accurate reflection of the status of work completed against the

Transition Phase Work Plan and Facilities and Business Structure Transition Plan;

B. Status of meeting activities and due dates;

C. Status of identified risks, mitigation strategies and activities, and contingency plan;

D. Issues and resolution of issues, including the length of time from discovery to resolution; and E. Requested corrective actions by HHSC and the status.

DP 047 Monitor, track and update Transition Phase Work Plan.

DP 048 Meet all due dates contained within Transition Phase Work Plan.

The Transition Phase Work Plan will be evaluated at the close of transition for the Contractor’s compliance and subsequently retired as a Deliverable.

3.5.3 Transition Phase - Facility and Business Structure Transition Plan

The Contractor must submit a Facility and Business Structure Transition Plan that documents the approach for transition and implementation, and describes how the assets, facilities, and support operations will transition from the current incumbent.

The existing DPC in Austin, Texas, and the DR site contain State owned assets, HHSC Equipment Inventory for DPC. The Contractor will be expected to use existing State assets until the end of the assets’ recommended life cycle. All Contractor acquired equipment must be supported by the Contractor.

The Facility and Business Structure Transition Plan must describe how the transition of functions, facilities, assets, and processes will transition from the incumbent contractor to the Contractor.

DP 049-D Submit a Facility and Business Structure Transition Plan within sixty (60) calendar days after Contract Effective Date or by the date specified by HHSC. The Plan must include but is not limited to the following:

A. The overall approach for transitioning control and management of the current assets (i.e. leverage of current investments);

B. The process and procedures to shift responsibility and control of facilities identified under the proposal that are operated by the incumbent to the Contractor and detail the structure under which those facilities will be managed and operated;

C. A plan for transitioning facilities, including operational management;

D. List of all Subcontracts, including functions performed by each Subcontractor;

E. Key Contact with Subcontractors;

F. The processes to be used during Transition Phase;

G. The Project schedule with Key Milestones;

H. Outline of procedures to be followed during the implementation period, including the plan for managing the period of concurrent operations with the incumbent;

I. Identification of issues that need to be addressed during the implementation period, including, but not limited to:

a. meeting performance standards;

b. operations of the facilities and who directs the support of operations;

c. how disputes and issues between the Contractor and incumbent will be resolved; and

d. liability;

J. Identification of roles and responsibilities for the Contractor, the incumbent, HHSC, and additional stakeholders; and point of contact and procedures for managing problems or issues during the Transition Phase.

3.6 Risk Management and Issue Resolution Plan

To ensure the mitigation of risk to HHSC and Consumers, the Contractor must establish a comprehensive risk management and issue resolution plan. The risk management and issue resolution plan must include the methodology and approach to risk management and issue resolution through the Transition Phase and after refinement during transition to describe the process by which the Contractor detects, manages, resolves, and notifies HHSC of problems during the remainder of the Contract life cycle.

HHSC requires that where the Contractor identifies risk, the Contractor identify actions to mitigate the risk and/or resolve the issue. The Contractor must describe processes and procedures requiring approval by HHSC, for reporting, tracking, monitoring, prioritizing, resolving, and escalating problems.

The Contractor must develop, implement, and maintain a comprehensive Risk Management Plan that identifies potential risks associated with each service component proposed.

The proposed risk management plan must include:

A. Risk identification methodology that identifies and classifies risk by severity, impact, and probability of occurrence;

B. Operational and system implementation risks, including any that may pose a risk to the successful fulfillment of the contract;

C. Process for communicating and updating HHSC; and D. A mitigation methodology, including examples of how the assessed risks will be managed, reported, monitored, and how any new risks will be identified, assessed, and mitigated.

DP 050 Develop a comprehensive risk management and issue resolution plan.

DP 051-D Submit a Risk Management Plan, including an issue resolution and notification process, within thirty (30) calendar days prior to operational start date or by the date specified by HHSC and anytime thereafter when specified by HHSC.

DP 052 Implement and maintain the plan upon receipt of HHSC approval and revise as needed or at HHSC’s direction.

DP 053 Report progress of identified risks and mitigation activities throughout the transition phase within the weekly Transition Phase Status Report (DP 046- D) and Monthly Status Report (DP 074-D) after transition.

DP 054 Develop risk mitigation strategies and contingency plans for any identified risks that may impact business operations in sufficient time to prevent an adverse impact to current operations.

DP 055 Document issue resolution and closures to the satisfaction and approval of HHSC.

DP 056 Report resolution of issues to HHSC, including the length of time from discovery to resolution.

DP 057 Develop and seek implementation approval from HHSC of the steps to prevent recurrence of issues.

DP 058 Provide access for HHSC and its designees to the Contractor’s issues and risks tracking system and/or logs.

3.7 Readiness Assessment Process

To ensure the mitigation of risk to HHSC and Consumers and assure a smooth transition, the Contractor must prepare a comprehensive Readiness Assessment Plan for all components of their proposal. The Readiness Assessment Plan must specify how the Contractor will prepare and test its staff, business practices, systems, and required system interfaces for the performance of business functions prior to the formal readiness review.

The Contractor’s Readiness Assessment Process must detail how the readiness quality assessment will be conducted and how the results of the assessment will be collected, presented, and if problems are identified, how they will be addressed.

As part of the Readiness Assessment Process, it is required that the Contractor plan, prepare, and conduct rigorous system(s) testing in a tightly controlled and fully production-ready environment. Operationally, it is required that the Contractor plan, prepare and determine the readiness of the Contractor’s personnel and business practices, at the onset of the Operational Phase, or at any time the Contractor initiates new business processes, technology, systems, and facilities upon request by HHSC.

Expected outcomes from Readiness Assessment Process include, but not limited to the following:

A. A full end-to-end demonstration of all functions;

B. All contracted functions and contractual requirements (including manual processes if appropriate);

C. All system processes and staff functions, including HHSC staff and other subcontracted Contractors; and D. All physical security, data security, and fire/disaster prevention and recovery procedures.

The Contractor’s final Transition Phase Work Plan must include a draft Readiness Assessment Plan defining:

A. The proposed methodology for testing the operational and system readiness;

B. Recommended approaches to resolve any identified problems;

C. The proposed readiness result tracking, reporting, and communication strategy;

and D. The proposed readiness assessment schedule, activities, and resource allocation requirements.

DP 059-D Submit a Readiness Assessment Plan for the operations and systems within forty-five (45) calendar days after Contract Effective Date or by the date specified by HHSC. The Plan must include but is not limited to the following:

A. How the Contractor will prepare and test its staff, business practices, systems, and required HHSC system interfaces for the performance of business functions prior to the formal readiness review;

B. How the readiness assessment will be conducted;

C. How the results will be collected and presented; and D. How problems will be addressed, if identified.

DP 060 Conduct full end-to-end readiness assessment that covers all components of the Contractor’s proposal.

DP 061 Demonstrate knowledge of the State’s system(s) and downstream flow of scanned documents.

DP 062 Demonstrate that all components of the proposed business process function in accordance with the requirements of the Contract and State and federal laws and policy.

DP 063 Participate in HHSC conducted readiness walkthroughs and assessments as requested by HHSC.

DP 064 Participate in meetings with HHSC and other Contractors to define the details of the Readiness Assessment Process and develop the assessment schedule.

DP 065 Conduct any necessary training sessions for individuals that will participate in the Readiness Assessment Process including those designated by HHSC.

DP 066 Ensure that all staff, business practices and systems are in place and ready for implementation.

DP 067-D Submit the results of the Readiness Assessment in a Readiness

Assessment Report within fifteen (15) business days after the Readiness Assessment Process has been completed. The report must identify problems uncovered and indicate how and when the Contractor will address and resolve the problems identified.

DP 068 Maintain the readiness test outcomes or result files as directed and approved by HHSC.

DP 069 Execute readiness test cycles to include all external data interfaces.

3.7.1 HHSC Responsibilities

A. Provide a project management oversight team to review the performance and progress of the Transition Phase Work Plan and Facility and Business Structure Transition tasks.

B. Review, approve, or require modification to the Transition Phase and Facility and Business Structure Transition Work Plan.

C. Research and respond to the Contractor’s questions or requests for information to promote a smooth transition.

D. Review, approve, or require modification to the Contractor’s proposed Key

Personnel and PMO organizational structure.

E. Review, approve, or require modification to the work products of the PMO.

F. Perform overall monitoring and management overview of the project to ensure timely progress and satisfactory completion of tasks and activities.

G. Review and comment on written status reports and work plan/task schedule updates.

H. Provide notice to the Contractor of inadequate performance; request review and approve plans for corrective action.

I. Monitor progress toward achievement of project milestones and key dates, and request status updates as needed.

J. Review, approve, or require modification to the Contractor’s proposed risk management process including the identified risks, severity ratings, and probability evaluation.

K. Review, approve, or require modification of the Contractor’s proposed Readiness Assessment Process and readiness result report including the schedule of activities and assessment review cycle.

L. Review, approve, or require modification of the Contractor’s readiness review result report and provide approval to begin implementation.

M. Conduct operational readiness tests and require the Contractor to correct all deficiencies in the manner and time specified by HHSC.

3.8 Operational Phase Requirements

During the life of the Contract, the Contractor will be required to carry out daily operational activities related to implementing comprehensive document processing services. As part of these responsibilities, the Contractor will be required to develop, implement and maintain plans, processes, systems, and procedures for the management and reporting practices that support the daily operational activities.

HHSC and the Contractor must work together…