PWS_Integrated Personnel and Payroll.pdf

PERFORMANCE WORK STATEMENT

Personnel and Payroll Services for Officers of the Commissioned Corps of the

U.S. Public Health Service

1. Background

The U.S. Public Health Service Commissioned Corps (USPHS) is an elite team of more than 6,600 full-time and reservist of well- trained, highly qualified public health professionals dedicated to delivering the Nation's public health promotion and disease prevention programs and advancing public health science. Corps officers serve in a variety of positions throughout the U.S. Department of Health and Human Services (HHS) and certain non-HHS Federal agencies and programs that focus on key areas of disease control and prevention; biomedical research; regulation of food, drugs, and medical devices; mental health and drug abuse; health care delivery; and international health.

As one of America's eight uniformed services, the Commissioned Corps fills essential public health leadership and service roles within the Nation's

Federal Government agencies and programs. The Corps has officers in many professions, including:

- Physician - Dentist

- Nurse - Pharmacist

- Dietitian - Engineer

- Environmental health officer - Health servicesofficer

- Scientist/researcher - Therapist

- Veterinarian

2. Scope of Work

The Department of Health and Human Services (DHHS) is looking to consolidate its personnel, human resources, readiness, deployment and payroll functions comprised of multiple modular capabilities that when implemented in teandem, tend to automate, integrate, and optimize extended operationational processes into a single administrative platform.

Currently, its personnel processing, personnel order management and payroll system supporting the recruitment, Active duty, Ready Reserve and retired Commissioned Officers of the United States Public Health Service

(USPHS) are on multiple systems. The consolidated system must be able to handle the collection of source documents, determination of all pay categories, gross-to-net calculations, and interface with all the various internal and external systems required to ensure the accurate disbursement of personnel resources, funds and administration & maintenance of all related IT systems. Once successfully implemented, the system needs to be kept current: both for policy mandate updates, routine pay table adjustments and for changes to pay calculations as mandated by the Secretary of DHHS or Congress. Additional functionality shall include the adoption and integration of new category, One Promotion Grade, and One Promotion

Seniority Credit Date.. The consolidated One Promotion administrative system to support the following functions: data and database definitions, user experience, system processes, pay and special pay calculations, as well as payroll and personnel actions The system shall support the new directive

(CCD 122.01) governing the permanent and temporary grade promotions of

U.S. Public Health Service (USPHS) Commissioned Corps officers. All officers (except Flag Grade Officers) shall have their permanent grade be equivalent to their current temporary grade.

These functions automate the manual processing currently performed by staff in the Call to Active Duty and Recruitment (CADRe), Personnel

Career Management, Financial Services and the Separations and

Assignment Branches. The scope of work includes: validating the requirements with each Branch, the development of users stories, operations/process support, timeline management and workflow changes necessary to complete deliverables.

The Contractor is expected to draw on their established methods, best business management solutions,practices, and Government/industry experience in applying application.

The consolidated system should provide functionality to meet the following capabilities goals

• Capability Goal 1: Scalable Platform with Business Intelligence

• Capability Goal 2: Accelerate Technology Modernization and Innovation

• Capability Goal 3: Enhance Data Integration and Networking

• Capability Goal 4: Data Management and Interoperability

• Capability Goal 5: Improve IT Management, System Standardization & Governance

These functions will be performed for the Active duty, Ready Reserve and Retiree on the consolidated system:

- Assignments

- Position management

- Credentialing

- Awards - Readiness compliance

- Immunizations tracking - Security clearance tracking

- Leave & Absence Tracking - Active-duty payroll

- Licensure tracking - Retirement

- Officer profiles - Retiree payroll

- Officer self-service - Post payroll processing

- DD214/215 - Adverse Actions

- Promotions - New Hires/Call to Duty

- Retirements & Separations

3. Background

Payroll services are currently provided in-house by the staffs of the Office of the Chief

Information Officer (OCIO) and the Commissioned Corps Headquarters (CCHQ) using a web-based software system, that collects data from source documents through user-accessible transactions, calculates gross compensation as well as gross-to- net disbursements. Personnel orders are processed by the CCHQ who collect records, maintain files, and perform personnel related transactions using the integrated personnel order and payroll system.

The OCIO is responsible for maintaining and overseeing the production of the

Commissioned Corps officer’s payroll using the Commissioned Corps Personnel and

Payroll system (CCP). After each monthly payroll is computed, validated, and certified, Financial Services Branch (FSB) transmits all payroll to the Department of

Treasury for disbursement as part of post payroll transactions.and tasks.

Commissioned Corps Personnel and Payroll System (CCP). CCP is the web-based, real-time, workflow enabled, personnel and payroll management system providing electronic initiation and processing of military personnel actions, computing compensation and maintaining personnel and payroll records for Active duty, Ready

Reserve and retired Officers of the Commissioned Corps. The CCP system provides a full range of services from call to duty through Retirement/resignation.

Office of the Chief Information Officer (OCIO). The OCIO is responsible for maintaining all Corps–specific information technology systems, including the public-facing USPHS website (www.usphs.gov), and the business operations site

(dcp.psc.gov) through which officer records and leave management systems are accessible. Dashboard for Leave Management and tracking per unit or region. Leave management is currently also accessible directly via phsleave.lyceum.com. Regarding payroll, the OCIO collects records, maintains files, audits individual payees, performs payroll transactions using CCP and administers a system of basic pay, allowances, and special or incentive pay for active duty USPHS officers. OCIO also administers a pay system for retired officers and survivor annuitants. The Financial Services Branch http://www.usphs.gov/ provides these services in coordination with the Departments of Defense (DoD), Department of Veterans Affairs (VA), Coast Guard, United States Department of the

Treasury Personnel Support Center, and ocial Security Administration

Commissioned Corps Headquarters (CCHQ). CCHQ collects records, maintains files, and performs personnel related transactions using CCP.

Period of Performance

• Transition-In Option Period*: November 1, 2024 – December 31, 2024

• Base Period: January 1, 2025 – December 31, 2025

• Option Period 1: January 1, 2026 – December 31, 2026

• Option Period 2: January 1, 2027 – December 31, 2027

• Option Period 3: January 1, 2028 – December 31, 2028

• Option Period 4: January 1, 2029 – December 31, 2029

*The Government anticipates exercising the Transition-In Option Period unless the recipient of the subject recompete award is the incumbent.

Current System Overview

The current payroll and leave system is a web-based application running on servers housed in an off-site collocation facility. It provides for data input from personnel and payroll source documents. The transactions are edited at point of origin and then combined with any other input documents for that employee to determine all changes since the last instance. Pay determination is by exception only; the default is to receive the same pay as the previous (monthly) cycle. In addition to proactive changes, the system can detect changes due to longevity milestones. These longevity changes occur for both base pay and several types of specialty pay to which an officer may be entitled.

The system stores large tables provided by DoD to determine the amount of housing allowance to which officers are entitled based on their grade, dependent status, and duty station zip code. Because officers can be called to duty, transferred, or separated at any point during the payroll cycle, the system must be able to determine prorated earnings for all categories of pay. As supporting documentation may arrive after the fact (e.g., change in marital status), the system shall be able to perform retroactive adjustments for, at a minimum, all pay cycles in the current tax year. The replacement system should be web-based using modern tools according to accepted standards. It must allow for different levels of administrative and user roles and responsibilities.

Certain transactions that do not affect an officer’s gross pay (e.g., tax withholding, payroll address, savings allotment) should be available via Self-Service.

Transactions that require review and approval (e.g., dependent certification) should be initiated by the officer and forwarded to a payroll technician before being finalized.

Other transactions (e.g.,bonus pays) are initiated and/or approved by members of the officer’s organization prior to being forwarded to the payroll technician. The system should display an earnings statement on the web that shows each element of pay, both current and year-to-date, indicate whether the element is taxable or non-taxable, and each deduction and allotment to gross pay. Before the end of January each year, the system should display the officer’s W-2 statement. Both the earnings statement and W-

2 should be available for printing. The database engine should be accessible for standard and ad-hoc reports using commercially available packages.

The current system stores all the data necessary to perform gross-to-net calculations and maintain both taxable and non-taxable earnings. It performs federal, state, and local tax calculations using tables provided by a third-party vendor. It creates output files for Electronic Funds Transfer (EFT) transactions to banks, insurance companies, Thrift Savings Plan, charities, U.S. Savings Bonds, tax entities, etc. It provides output data in a format suitable for auditors and historical review. It does not dispense funds but rather provides data to the U.S. Treasury in predefined formats.

The existing systems have interfaces to numerous internal and external data systems.

4. Consolidated System Overview

The Offeror shall propose a consolidated solution for the Commissioned Corps

Personnel, Readiness, Deployment and Payroll (CCP) system to comply with the processing requirements of the United States Public Health Service, also known as the

Commissioned Corps. This consolidation places PHS Commissioned Corps personnel processing, active-duty payroll, Ready Reserve payroll and retiree payroll under one system. A single, standardized system that consolidates USPHS Commissioned Corps personnel processing, Active duty payroll, Ready Reserve and retiree payroll is expected to reduce security risks and cost.

4.0. The Contractor shall provide the necessary skilled staff to perform the following services:

4.0.0. Personnel Processing

The U.S. Public Health Service Commissioned Corps Headquarters (CCHQ) is consolidating pay and certain essential personnel functions to one system. This migration places Commissioned Corps pay and personnel processing under one system. The following personnel processing functions will be migrated:

- Assignments - Position management

- Awards - Readiness compliance

- Immunizations tracking - Security clearance tracking

- Leave & Absence Tracking - Active-duty payroll

- Licensure tracking - Retirement

- Officer profiles - Retiree payroll

- Officer self-service - Post payroll processing

- DD214/215 - Adverse Actions

- Promotions - New Hires/Call to duty

- Retirements & Separations - Credentialing

Upon receipt of source documents, personnel transactions are entered by the

Human Resource Specialists (HR Specialist – Military) in the Assignments Team of the Commissioned Corps Headquarters (CCHQ) into the same software system that is fully integrated with the payroll system. The data from the software system will be system-agnostic.

Because many personnel transactions immediately affect pay, vendors shall describe how the offered solution shall integrate personnel transactions with pay rules. Within a given month, no less than 1500 personnel transactions processed.

Vendor shall meet with Financial Services Branch to identify capabilities and develop a solution for self-service employment verification letter generation.

4.1. The following are mandatory functionality requirements for the base system at time of go-live:

4.1.0. Assignments

The assignments include transactions run as a result of: Transfers (Permanent

Change of Station), Position Updates, Temporary Duty assignments, Amendments to personnel orders, Cancellation of personnel orders, Prior Service

Data Management (both Active Duty and Civil Service), Duty Station Address

Changes, ADMIN Code Changes, Board Certified Pay, Name Changes, Extension/Removal of Limited Tours, Retirements, Separations/Terminations, Promotions, Miscellaneous Orders, Active Duty Deaths, Close Out Personnel

Orders, DD214/215, Board Member Appointments & Extensions, AWOLs, Non-

Duty with Pay, Blanket/Individual Details, Long & Short Term Training, PIR

Correction and maintenance, Licensure Database, Lump Sum Leave calculations and Statement of Services (following Active Duty, Ready Reserve, Retirement or

Separation).

4.1.0.1 System Generated Signature

The system should provide a system generated signature option for the CCHQ

Director in the issuance of Personnel Orders.

4.1.1. Leave & Absence Tracking

Leave and absence tracking shall be fully integrated in the offered system as per the policies and procedures related to annual leave for officers in the Commissioned Corps of the U.S. Public Health

Service dcp.psc.gov/ccmis/ccis/documents/CC362.01.pdf. Additionally, an on-line leave and earnings statement will be available for viewing and printing by the active-duty and ready reserve officers through their self-service accounts. The consolidated administrative system should allow

HR Specialists to enter and manage, store the necessary documentation for, and produce reports on, current Leave and Absence for each active-duty and ready reserve officer. The consolidated administrative system should include a form 1373 automation feature for terminal leave processing by the Personnel Career Management and Separations and Assignment Branches. The design should include the development of users stories, timeline management and workflow changes.. The http://dcp.psc.gov/ccmis/ccis/documents/CC362.01.pdf consolidated administrative system should provide for an extension of the Terminal Leave function. This enhancement should include the automation of the functions used in the

Separation Process in accordance with Policy (CCI 387.01 – Separation of Commissioned officer).

The offered system shall provide an application whereby Active Duty and Reserve Corps officers who are considering separation, can request a current report, showing their unique data. This application must individually determine a retiring officer’s pay rate is through a

Retirement Calculator function.

These functions automate the manual processing currently performed by staff in the Medical Affairs, Personnel Career Management, Financial Services and the

Separations and Assignment Branches. The scope of work includes the development of users stories, operations/process support, timeline management and workflow changes necessary to complete The scope of work should include the development of user stories that eliminate errors and prepare all documents;

timeline management and workflow changes necessary to complete deliverables in addition to a testing environment for stakeholders. In addition, the system shall provide the leave approver/designee with a collective leave calendar of all leave for all officers assigned to the approver.

4.1.2 Divestment Analysis

The consolidated administrative system should provide for an extension of the Terminal

Leave function. This enhancement should include the automation of the functions used in the Separation Process in accordance with Policy (CCI 387.01 – Separation of

Commissioned officer).

The offered system shall provide an application whereby Active Duty, Ready

Reserve officers, who are considering separation, liaisions, and CCHQ

Separation Specialist will be provide a report containing the unique data of the

Separating officer. This application must individually determining the separa ting officer’s pay rate is through a Retirement Calculator function. When encountering a resignation, the application will utilize source data and

Commissioned Corps business rules to compute the creditable service time, any

Officer indebtness based on service or financial obligation contracts (long-term training, special pays, etec). Upon completion, the offered system must produce a report indicating what will occur upon resignation, retirement or termination as well as provide data metrics reporting that is editable and exportable. The scope of work should include the development of user stories that eliminate errors and prepare all documents, timelines management and workflow changes necessary to complete deliverables and provide a sandbox and test platform for users to interface before going live to production.

4.1.3 DD-214 IntegrationThe consolidated administrative system should include an electronic integration whereby officer’s work history and other data are electronically and securely transferred to downstream applications, including the DD214. The DD-214 integration should include access on the self-service portal for retired/separated officers. The scope of work should include the development of users stories that eliminate errors and prepare all documents; timeline management and workflow changes necessary to complete deliverables in addition to providing a test environment for retirees, liaisons,and Separation Specialist.

4.1.4 Dashboard & Metrics

The USPHS Commissioned Corps must ensure that officers with the appropriate training, education, and experience are available at all times to meet mission requirements and continue operations. The USPHS Commissioned Corps must ensure that officers with the appropriate training, education, and experience are available at all times to meet mission requirements and continue operations. The offered solution shall include a curated set of data analytics formatted for easy ingestion to 1) measure progress towards Force Distribution and 2) facilitate resultant actions to drive alignment with Force Management policy mandates.

4.1.5 Officer Self-service

The consolidated administrative system will include a self-service module that will allow Officers secure access to manage a wide range of activities including adding and updating contact information, view payroll data and forms (e.g., monthly payroll information and transactins, federal and state forms). The designed system will include a dashboard for HelpDesk Self and Financial

Services Branch to manage incoming officer requests. The self-service will also allow officers access to view their payroll data (W4, state tax, allotments, net check to bank, etc.), and online access to view, print and manage personal information at any time. Additionally, the self-serve system should include functionality for End of Year (EOY) Social Security Adjustments which will include functionality for moving OASDI to Indebtedness Loan. The range of functions must include:

- Absence/Leave Requests

- Benefits

- Contact Information

- Demographic Data

- Education

- Emergency Contacts

- Active Duty Pay

- Retirement Information

- Retiree Pay

- Tax Set-Up Information

- Thrift Savings Plan (TSP) Change Function

- Peer Review of Results

- IRS and SSA Reporting

- Employment Verification Letter

- Cost Estimation Letter

- DD214 for retirees/separated officers

4.1.1.0. Other Self-service

The consolidated administrative system will include an Other Self-Service module that will allow Officers secure access to manage a wide range of activities. The range of functions must include:

- Personal awards

- Award Eligibility

- Position history

- Readiness compliance

- MobilizationTracking

- Deployment Orders Dashboard

- Security clearance

- Skills and training

- Immunizations

- License & certifications

- Medical examinations

- Upload of Transcripts for degrees acquired after the Call to Duty

4.1.1.1. Position Management

The consolidated administrative system will include a position management function that separates the concept of a position from that of a job and a person in a role. The position management function must provide to the HR Specialist of CCHQ the ability to add, modify, store and report on the organization structure, jobs, and unique attributes and associated number of a position. The system must have an efficient process to create and maintain positions, as well as display all officers in a position across our entire organization.

4.1.1.2. Readiness and Deployment Compliance

The consolidated administrative system will allow the Medical Affairs data entry team to update an officer’s profile with new information on Medical

Evaluation, Immunizations and Licensure and Certification.

Active-Duty and Ready Reserve officers must be given the opportunity to view their present and projected readiness status and maintain the information necessary to achieve a basic-level of readiness. These include Annual Physical

Fitness Test, Basic Life Support, Deployment Role, Five-Year Medical

Evaluation, Immunization, Licensure and Certification, and Waivers (medical and non-medical).

If an officer’s current or projected readiness status is not compliant, the system must clearly show the officer the specific reason for non-compliance to facilitate correction. The HR Specialist of CCHQ must be allowed to view all readiness compliance information in accordance with USPHS standards.

4.1.6 1662 Automation

The consolidated administrative system should automate the 1662 Personnel

Action Form. The outcome is a digitized and streamlined process that modernizes user interactions with standard administrative tasks, such as CAD, Billet Change, Transfers, etc. This automation should remove much of the manual processing done by the Call to Active Duty and Recruitment, Personnel Career Management, Reserve Corps and Separations and

Assignment Branches. The offered solution shall include data analytics enabling transparency, management oversight and visibility. The scope of work includes development of user stories that eliminate errors; preparation of all forms; integration with officer’s electronic folders; timeline management and workflow changes necessary to complete deliverables

5. Active Duty and Ready Reserve Payroll

The Commissioned Corps operate two payrolls on an exception-based nature, determining monthly pay for Active Duty, Ready Reserve and Retired

Officers. The offeror’s system shall produce timely and accurate pay on a monthly basis for all 6,500+ Active Duty and 6,100+ retired Officers, as well as their Former Spouses and Annuitants.

The descriptions below provide a conceptual overview of the key components of the desired payroll solution.

5.0. Payroll Calendars & Pay Statement

For active-duty officers, each pay period begins on the first day of each calendar month with officers being paid on a 30-day month. That is, payday for active-duty officers is typically the first day of the following month, or the previous workday, if the first day of the month is not a workday. In rare cases, Active-duty officers are paid twice in December on the first and last workday of the month. Pay statements will be mailed monthly to be received by officers no later than the first day of the following month.

Retired officers, annuitants and former spouses will be paid monthly on the first day of the month covering entitlements for the prior month. If the first day of the month falls on a weekend or holiday, the pay date will be the last workday of the prior month. The system should be programmed to produce an electronic statement each month, but only mail a pay statement in months that an officer’s pay changes. Electronic pay statement must be available for online viewing and printing via a self-service system.

5.0.1. Calculation Engine

5.0.1.1.Pay Rules

i) The offeror’s payroll engine shall support the Commissioned

Corps pay rules including, its payee classes, wage tables, source to net calculations and post-tax computations. In accordance with Congressional mandates, rules may be added, removed or amended to fit changing criteria within the Corps.

ii) Pay rules shall work in conjunction with the 300+ Nature of

Actions (NOAs) – the payroll and personnel transactions – used by the Payroll Technicians and HR Specialists who process changes to selected Officer’s pay daily.

iii) Pay rules shall support Special Pays as applied to the various categories of Officers, including Medical, Dental and Contract

Special Pays.

5.0.1.2.Retroactive Processing

The offeror’s solution must support retroactive processing such that transactions may be entered with effective dates prior to the current period, even prior periods in earlier tax years. In this event, the offeror’s system shall calculate the adjustments to pay.

The collection of retroactive overpayments shall be negotiated with the

Officer in accordance with Commissioned Corps policies and procedures, while the disbursement of retroactive underpayments shall be taxed in the current period, in accordance with IRS regulations, specifically those documented in IRS Publication 15, Circular E:

Employer’s Tax Guide.

5.0.1.3.Future Dated Processing

The offered solution must support transactions entered with effective dates in future pay periods, even in subsequent tax years. In this event, the offeror’s system shall calculate the adjustments to pay when that future period becomes effective.

5.0.1.4.Annual Calculations

Once successfully implemented, the offered system must be kept current, both for routine pay table adjustments and for changes to pay calculations as mandated by the Secretary of DHHS or Congress. The offered solution must support annual adjustments to the following tables which inspire calculations to all payees: Base Area Housing

(BAH), Base Area Subsistence (BAS), Base Pay, Cost of living adjustment and the Veteran’s Administration benefits. In addition, the solution shall support adjustments to standard amounts for FICA, Thrift Savings Plan, Taxes, etc.

6. Active-Duty Transaction Processing

The modification of pay is by exception only; the default is to receive the same pay as the previous (monthly) pay period. The likely cause of a pay change is modification to the Officer’s data, caused by execution of a transaction – known as a Nature of Action, or NoA. Within a given month, the number of transactions processed range from a minimum of 2,500 to twice that amount, and possibly more. The offered system shall be structured to support this processing capacity.

Transactions are categorized by type and belong to four (4) functional areas: Compensation, Personnel, Retirement and System.

6.1. Active-Duty Compensation

Payroll services are currently managed by the Payroll Technicians within the CCHQ, FSB using a proprietary software system with a web-based graphical user interface. Vendors shall replace this system, which collects data from source documents summarizing changes to pay. These transactions fall within the following categories:

i. Administrative – One-time payment, Payroll Address Change, etc.

ii. Entitlements – Lump Sum Leave, Quarters Allowance, etc.

iii. Deductions – Bonds, Charity Allotment, Federal/State taxes, garnishments, etc.

iv. Benefits– Insurance Allotment, Life Insurance, Thrift Savings

Plan, etc.

v. Retirement – Retire an Active Duty Officer, Start/Stop retirement pay, Annuity setup, former spouse setup, etc.

vi. Special Pays – Accession Bonus, HPSP, Hazard Duty, Imminent Danger, etc.

6.2. Active-Duty and Ready Reserve Personnel

Upon receipt of source documents, personnel transactions are entered by the Human Resource Specialists (HR Specialist) of the CCHQ

Assignments into the same proprietary, software system is fully integrated with the payroll system. As many personnel transaction immediately affect pay, vendors shall describe how the offered solution shall integrate personnel transactions with pay rules. Within a given month, the number of personnel transactions processed range from a minimum of 1,500 to twice that amount, and possibly more.

The number of personnel transactions fall within the following categories:

i. CAD – Call to Active Duty, Assimilation into Regular Corps, etc.

ii. Transfer – from/to Billet, Program and/or Station, etc.

iii. Grade Change – Permanent or Temporary Promotion or

Reversion

iv. Separation – Death, Termination, or Retirement

v. Miscellaneous – Address Change, Permissive Order, etc.

vi. Other – Long-Term Training, Short-Term Training, Statement of Service.

7. Workflow Processing

7.1. Peer Review

Each transaction updates different data elements. The data elements modified in each transaction must be viewed and validated by at least

2 experienced personnel within CB or DCCA. Given the volume of data changes and transactions processed each month, the HR

Specialists and Payroll Technicians have come to rely on an ordered peer review and supervisory approval (workflow) process. Within workflow, data changed in each transaction undergoes peer review, and possibly supervisory approval, before being permanently committed to the database.

7.2. Personnel Orders

For personnel transactions, the offered system shall produce an accompanying legal document

A Personnel Order (PO) document – typically fitting on a single sheet of paper, which shall be electronically stored on each officer’s record within the system. The contents of the PO shall differ from transaction to transaction, reflecting the transaction type, data elements within the transaction and the individual data of that Officer. Each PO shall be finalized and stored only after the transaction has successfully been processed through the peer review and supervisory approval stages.

Secure access to personnel orders by users with differing roles is mandatory requirement of the offered solution.

7.3. Personnel Order Close Process

For personnel transactions, the offered system shall produce an accompanying Personnel Order (PO) document – typically fitting on a single sheet of paper, which shall be electronically stored on each officer’s record within the system. The contents of the PO shall differ from transaction to transaction, reflecting the transaction type, data elements within the transaction and the individual data of that Officer.

Each PO shall be finalized and stored only after the transaction has successfully proceeded through the peer review and supervisory approval stages the PO CLOSE process.

For personal transactions, the offered system shall interconnect the CCP and eOPF systems such that personnel orders and supporting documents are processed and stored electronically, without manual intervention

(printing, scanning, or filing). Specifically, the system must allow

Reviewers of Nature Actions (NoA) to upload files (supporting documents) to the NoA such that the files will be stored along with

Personnel Order (PO).

7.4. Personnel Order Amendment Process

From time-to-time new information is received regarding a CLOSED transaction, forcing that transaction to be significantly modified, invalidated or run on a different effective date. The vendor shall describe how the offered solution shall support this requirement.

7.5. Personnel Data – ORACLE Interface

The data modified by transactions that are in CLOSED status are electronically transmitted to the Commissioned Corps Management

Information System (CCMIS) application on a periodic basis. The offered system should support this real-time transfer of data using a secure interface, preferably the SOAP protocol.

7.6. Retirement from Active Duty

The Commissioned Corps operates two payrolls on an exception-based nature, determining monthly pay for Active Duty and Retired Officers.

Each month approximately 10 to 45 officers retire from Active Duty and shall begin to receive pay in accordance with one of four retirement plans:

Final Pay or High 36, Redux/CSB, Blended Retirement.

In addition, officers may retire on temporary or permanent disability. A retiring officer’s pay rate is individually determined through a Retirement

Calculator function that utilizes source data and Commissioned Corps business rules to compute the creditable service time. This calculator simultaneously functions as a base pay determination for officers newly on active duty, who have creditable service to begin receiving pay at the appropriate level. The offered solution shall support both active duty and retirement functions of the Retirement Calculator, its rules, processes and reports.

The consolidated administrative system should provide for an automation of the Mandatory and Medical retirement as well as Involuntary

Terminations. These functions should automate much of the manual processing done by the Medical Affairs, Personnel Career Management and Separations and Assignment Branches. The scope of work should include the development of user stories that eliminate errors and prepare all documents; timeline management and workflow changes necessary to complete deliverables.

7.7. Blended Retirement System

On January 1, 2018. the modernized retirement system for members of the uniformed services, commonly referred to as the Blended Retirement

System (BRS) was instituted. BRS consists of four components that distinctively combine to deliver a new blended annuity package categorized by the following:

a. Defined Retirement Pay Benefit

b. Thrift Saving Plan (TSP) Automatic and Matching Contributions

c. Continuation Pay

d. Lump Sum Retired Pay Payment

7.8. Requirements Gathering

In the planning (or requirements gathering) phase, the Vendor is to obtain accurate descriptions of the Government’s objectives and obtain an accurate understanding of the relevant technical details to successfully document the desired result(s). The Government will provide its objectives and requirements to the Vendor. Once received, the Vendor will prepare specifications and other documentation based on its understanding of the Government’s requirements and deliverables. In this phase, the Vendor shall develop questions and create functional specifications for development.

Following the Government’s approval of functional specifications, the

Vendor will move to its next phase: Modification and Software

Development.

7.9. Work Plan/Timeline

Work required to support the Blended Retirement system is included as part of the CCPayroll solution. BRS development work shall be subject to the standard terms of our Contract and may include a modification.

8. Retirement Tracking System

In the months preceding retirement, personnel within the CCHQ and

OCIO begin to identify, gather and store specific information regarding retirement candidates. The process of retirement within the offered system is known as the Retirement Tracking System (RTS). The RTS is an integral function of the pay and personnel system of the

Commissioned Corps, and as such a mandatory requirement of the offered solution.

9. Retired Pay Compensation Transactions

Pay for the 6,100+ retired officers, annuitants, and former spouses is also calculated on an exception only basis in accordance with the rules prescribed in Chapters 71 and 73, Title 10, United States Code. The default is to receive the same pay as the previous (monthly) pay period, however, modifications to pay tables, external compensation or tax tables are often changed. The offered solution shall support the computation of retired pay.

Retiree transactions are categorized by type and belong to seven (7) functional areas (see below): Annuitant, Death, Disability, Former

Spouse, Other, Retired Officer and VA/Concurrent Receipt.

10. Monthly Payroll Processing

10.1. Payroll Calendar

Each pay period begins on the first day of each calendar month with officers being paid on a 30- day month. That is, payday for active-duty officers is typically the first day of the following month, or the previous workday, if the first day of the month is not a workday. In some years, Active-duty officers are paid twice in December on the first and last workday of the month.

For retired officers, former spouses, and annuitants, payday is usually the first day of the month. If the first day of the month is not a workday, retired officers, former spouses, and annuitants shall receive their pay on the first workday following the first day of the month.

10.2. Payroll Master Files

Upon completion of payroll, the offered system shall produce several master files containing pay, personnel and benefit data. These master files are known as the XMaster, COMaster and D&L respectively. The offered system shall support the requirements of the Payments and Accounting

Team, who are responsible for payroll reconciliation each month. A package of reports shall also be made available to the team.

10.3. Payroll Data Files

Officers may purchase Series I and Series EE Bonds in available denominations through payroll deduction. The offered system shall create a Bond Payment file that can be used to transmit payment information in accordance with the rules of the United States Treasury department.

10.4. Interface Files/Reporting

The existing systems have interfaces to numerous internal and external data systems, including DEERS, 3rd Party, TSP, VA, etc. In addition, data in the offered solution must accept input from and export data to several existing Oracle applications supported by the CCSB staff. These include the database tables supporting the applicant system, the electronic call to active duty system, the promotion system, the officer evaluation system, etc.

11. Data Structures: Initial Load & Updates

The database used within the offered system shall be structured to store a myriad of actionable information, including Admin Codes, Bank Routing

Nos., Bonus Amounts, Common Accounting Numbers, GEO Codes, Special Pays, State Tax Amounts and the like. Several of these tables are updated monthly, including DEERs, etc. Other records are updated on an annual basis, including Base Pay tables, Base Area for Housing, BAS, Cost of Living Allowance, etc.

12. Audit

Given the magnitude of transactions processed by Payroll Technicians and HR Specialists, the offered solution shall support a system-based audit trail. In addition, the offeror shall provide technical expertise or facilitate technical resources to support the ongoing Government audit programs as prescribed by DHHS.

12.5. Audit Trail

Each data entry, action and event shall be time-stamped, providing a complete access to an historical audit trail and enabling tracking of input errors.

12.6. C&A: Security Certification and Security Accreditation

As mandated by DHHS, OASH officials must undergo an annual

Certification and Accreditation (C&A) program, in accordance with NIST

SP 800-37, Guide for the Security Certification and Accreditation of

Federal Information Systems. The information security program must include periodic testing and evaluation of the effectiveness of information security policies, procedures, practices, and security controls. This testing should be performed with a frequency depending on risk, but no less than annually.

Security certification is a comprehensive assessment of the management, operational, and technical security controls in an information system, made in support of security accreditation, that determines the extent to which the controls are implemented correctly, operating as intended, and producing the desired outcome with respect to meeting the security requirements for the system.

The results of a security certification are used to reassess the risks and update the system security plan, thus providing the factual basis for an authorizing official to render a security accreditation decision. The offeror shall support AOS in its performance of the Certification and

Accreditation of the CCP system.

12.7. SSAE 16 Type II Examination replaces SAS 70

The Government Management Reform Act (GMRA) expanded the CFO

Act of 1990 to require the issuance of audited financial statements by

DHHS and other agencies. Under the DHHS plan to implement GMRA, the OASH is required to complete an annual examination of the CCP system. The auditors have determined that independent examinations of internal controls shall be completed annually under the guidelines of the

American Institute of Certified Public Accountants Statement of Auditing

Standards (SAS) Number 70, Reports on the Processing of Transactions by Service Organizations. The annual examination is a “Type 2” report providing an opinion on the internal controls placed in operation and includes tests of operating effectiveness.

The SAS 70 examination shall result in the issuance of reports on controls placed in operation and tests of operating effectiveness in accordance with AU § 324.41 324.57. The period of examination is October 1st of the current year, through June 30th of the following year. The scope of the engagement shall cover all controls and processes required by FFMIA criteria and relevant governing agencies, such as Treasury or OMB, as applicable to SAS 70 testing procedures, up to and including:

- Elements of Internal Controls

- Systems Development Life Cycle (SDLC)

- General Computer Controls

- Additional General Controls

- ApplicationControls

12.8. Material Controls

SSAE 16 SOC 1 reports, which have effectively replaced SAS 70 reports as of June 15, 2011, will be prepared in accordance with Statement on

Standards for Attestation Engagements (SSAE) No. 16, Reporting on

Controls at a Service Organization. SOC 1 reports retain the original purpose of SAS 70 by providing a means of reporting on the system of internal control for purposes of complying with internal control over financial reporting

As a service provider, OASH must continuously provide documented, reasonable assurance that the CCP system has adequate controls and safeguards in place. Results shall be used in the audit of the HHS-wide financial statements and relied upon by other firms in examining operating division financial statements.

13. Reports

The offered system shall provide reporting tools and utilities that allow the FSB Payroll Technicians and expert users within the internal

Payments and Accounting Team, to validate calculations, outputs, and payments as they process payroll each month. The reporting tools and utilities shall provide unencumbered access to PHS pay and personnel data, system and individual parameters, transactions, workflow events, calculations, and tables, on a 24 by 7 basis throughout the year.

Specifically, the following services are required:

13.1. Ad-hoc Reporting Tool

While each payroll calculation is verified by the originator and a reviewer before the final processing of any transaction, variance reports are desired as a method to identify changes in payroll from period to period and to identify the reasons for the changes. To validate the functionality of the proposed system, the ad hoc reporting utility shall allow expert users to seek and identify errors in payroll processing before the completion of payroll each period. As thousands of calculations occur each month, mistakes shall most certainly be made, but AOS has an obligation to provide accurate results before payroll is released.

The need for ad hoc reporting extends further as well. There are many requests for information from management, auditors, one-time questions, and report requests resulting from problems identified in reconciliation.

13.2. Payroll Processing

Payroll processing is typically conducted in two stages: a preliminary run is performed mid-month and payroll is finalized at the end of the month.

Thus, FSB requires that at any time in the pay period, a System

Administrator or Payroll Supervisor may initiate a process that will lock the payroll of all changes, calculate a draft of final pay, and create a set of payroll reports that are available online for detailed review.

Later in the month, the final pay process shall be initiated, allowing the

System Administrator or Payroll Supervisor to review the status for all payees, including all earnings, deductions, taxes and net payments, before initiating final disbursement through the Department of Treasury.

14. Post Payroll Processing

14.1. Post Payroll Processing (PACT)

The offered solution shall provide a set of reports formatted in accordance with the requirements of the Payments and Accounting Team (PACT) of the Commissioned Corps Systems Branch. PACT provides payroll accounting, certification and reporting services for the Commissioned

Corps Systems Branch. No less than 33 reports are produced post payroll for PACT and downstream clients of the Commissioned Corps.

14.2. Accounting for Pay System (AFPS)

The offered solution shall also provide a set of master reports formatted in accordance with the requirements of the Financial Management Service

(FMS). FMS maintains the Accounting for Pay System (AFPS) interface, which provides Department-wide payroll accounting services for HHS civilian employees and Commissioned Corps Officers. For the Corps, AFPS is also responsible for:

Payroll accounting for disbursements, obligations and accruals for personnel costs.

Collection and disbursement of payroll income taxes and reporting of those items to the Treasury Department, 50 States, the Internal Revenue

Service, and the U.S. Department of Labor

The offered solution shall also provide budgetary/expense reporting such that CCHQ leadership, its branches track and engage with business intelligence as it related to personnel costs. The offered solution shall include budgetary analytics formatted for the budget office as well as each Branch to include the Ready Reserve component of the

Commissioned Corps.

14.3. Continuation of Operations

14.3.1. Congressional Mandates & Mandatory Changes

From time to time, the United States Congress or other branches of the

U.S. Government will issue legal mandates or mandatory changes that must be implemented or applied by the United States Public Health

Service. In these events, the offeror will be required to discuss and modify its software application to implement the required modification(s).

14.3.2. Backup/Replication

The offeror shall detail the process and procedure for the daily replication, incremental and full system backup of employee and payroll data. Consideration shall be given to system availability and security requirements.

14.3.3. Service Redundancy

The offeror shall identify which components of its system are redundant, clustered, and single- point-of-failure. We define these terms as:

i. Redundant – failure of this unit will cause no loss of service or performance

ii. Clustered – these items share the full load. When failure to one item occurs; the system shall continue operating with the remaining units, but at a reduced performance level.

iii. Single-point-of-failure – means discontinuation of service and potential activation if this item fails

14.3.4. Test Site

PHS also desires a Test Site to provide an environment whereby PHS may A) validate new releases before production deployment, and B) test any transaction before execution of that scenario on the new consolidated production system. To perform these functions the PHS Test Site shall be maintained by PHS personnel to be kept in daily synchronization with the executable software on the CCP Production server. PHS personnel shall also ensure that the PHS Test Site is kept in monthly or weekly synchronization with the primary CCP production database. When necessary, the PHS operators shall be required to remove the Test Site from operation to enable the Cold Site.

14.3.5. Cold Site

The offeror will provide an offline, complete hardware and software installation of the consolidated system which will be maintained and operated by PHS personnel (PHS Cold Site). The PHS Cold Site shall be kept in daily synchronization with the primary production system, allowing this system to simultaneously serve as a Test Site. The Cold Site is a safety mechanism to protect PHS from a situation in which the offeror is incapable of supporting the CCP service.

i. The Government shall provide a suitable Government location to house the Operations Facility which provided uninterruptible service. Suitable in this case means security from unauthorized physical access, as well as power, cooling and rack space for the required equipment.

ii. The Government shall procure and provide all replaced COTS hardware and software licenses. Hardware means servers, networking equipment, and storage for the database and software.

iii. The Government will provide a high-speed Internet connection (of an appropriate speed) to the location and a network communications path to the Service Facility.

iv. The Vendor shall provide the proprietary software executables, initially and with software releases. The most current software

(executables) will be made available to the Government as releases are deployed to the production system.

14.3.6. Devolution Planning

The Vendor shall participate in the devolotion planning including identifying systems and the transfer of responsibility for the performance of essential functions to personnel at an alternate location that offers a…