Goverance Model.docx

Exhibit 1.2 (Governance Model) Solicitation No. 5400028075

Managed Cloud Services

Exhibit 1.2 Governance Model

Solicitation No. 5400028075

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Introduction The Managed Cloud Services (MCS) Governance Model is a bifurcated model based on the customer segments. The South Carolina Department of Administration (Admin) Sourcing Management has operational governance responsibilities for MCS delivered to State Agencies. Admin Sourcing Management provides centralized management of MCS while liaising with Admin Governance for state agencies’ services visibility, strategic direction, and escalated issues. Other Government Entities have operational governance responsibilities for Managed Cloud Services delivered to them. The State Fiscal Accountability Authority (SFAA) has contractual governance responsibilities for MCS delivered to all Using Government Units (UGUs). This Exhibit 1.2 (Governance Model) describes the Sourcing Management roles and responsibilities and working relationships.

The purpose of the governance model is to ensure that MCS objectives are continually met through a healthy relationship between the State and 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 keeping a healthy relationship in place, the Service Provider is allowed to innovate as MCS requirements change.

The governance model is a set of defined interactions, expectations, decisions, roles, and processes that guide the governance of MCS. 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, SFAA, Customers, and the Service Provider.

As it relates to State Agencies, they must utilize the contract awarded from this solicitation through Admin's IT Planning and Governance processes to request and use Services as described in Exhibit 2.1.1 (Managed Cloud Services Statement of Work – State Agencies). The Service Provider shall not accept, process, provision, or fulfill an order for Services from any State Agency that is subject to Admin’s IT Planning and Governance oversight unless and until the Service Provider receives written approval from Admin. If the Service Provider provides Services to a covered State Agency without Admin Approval: (i) the State shall have no obligation to pay any fees or Charges attributable to such unauthorized Services; (ii) at Admin’s election, the Service Provider shall promptly (A) cease the unauthorized Services at no charge, (B) refund to the State any amounts paid for such unauthorized Services, and (C) cooperate in transitioning or decommissioning the affected resources at no cost; and (iii) such action shall constitute a material breach, without prejudice to any other remedy.

Managed Cloud Services Governance Structure Operational governance consists of the day-to-day management of Managed Cloud Services, program-level communications, issue resolution, contractual and funding oversight, and customer satisfaction. Figure 1 below depicts the MCS governance structure for State Agencies while Figure 2 illustrates MCS governance for Other Government Entities.

Figure 1 - Managed Cloud Services Governance - State Agencies

Figure 2 - Managed Cloud Services Governance - Other Government 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, SFAA, and the Customers. This close relationship between the Service Provider, Admin, SFAA, and Customers 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 Customers with Admin and SFAA executive leadership participation only for escalated issues as appropriate.

Admin Managed Cloud Services Governance Admin provides overall leadership and coordination for strategic governance of MCS delivered to State Agencies. Admin Sourcing Management will leverage the existing Admin Governance model to provide the following oversight for MCS, specifically for the State Agencies:

1. Define the strategic business direction of services.

2. Resolve business critical issues escalated from Admin 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. Ensure information security and privacy controls are appropriately applied.

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

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

Sourcing Management Responsibilities Performance Management

Responsibilities:

Contract Administration

Responsibilities:

Commercial Management

Financial Management Responsibilities:

Contract Management Responsibilities:

Relationship Management

Service Provider Relationship Responsibilities:

Customer Relationship Responsibilities:

Sourcing Management Governance Meetings

Responsibilities:

1. Establish and coordinate governing meetings (weekly or monthly as needed) with the Service Provider and facilitate meeting agendas, presentations, and notes with topics including the following:

a. Service delivery and service level performance

b. Service improvement initiatives

c. Financial management and planning

d. Contract administration and Deliverables

e. Information Security

f. Customer Satisfaction

g. Issues Management and escalations

h. Service Management Manual currency

i. Solution Request management

j. Project management

Escalations

Responsibilities:

3. Management coordinates with the State team and Service Provider involved in the issue to complete the required documentation for input on the process as follows:

a. Governance team coordinates the distribution of the issue material with the meeting agenda.

b. Meeting agendas and associated material are distributed to participants in advance of the meeting in accordance with the SMM.

c. After the meeting, decisions related to the issue will be documented by the Governance team.

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 State teams to resolve their specific operational issues at the lowest level.

2. Assign empowered subject-matter experts to participate as requested in governance teams 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. Participating in governance as governance team charters require, identifying technical options for solving issues, participating in collaborative solution development, and providing the Service Provider’s technical and business perspective.

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