RFI Document.pdf

Request for Information (RFI) for Enterprise Resource Planning (ERP) Solution

RESPONSES ARE DUE NO LATER THAN

March 24, 2023 (5:00PM CT)

RFI NO.: 23RFI8453

VERSION NO.: 1.3

BUYER: Bureau of Finance and Management (BFM)

EMAIL: ERP@state.sd.us

READ CAREFULLY

FIRM NAME: AUTHORIZED SIGNATURE:

ADDRESS: TYPE OR PRINT NAME:

CITY/STATE: TELEPHONE NO:

ZIP (9 DIGITS): FAX NO:

EMAIL:

PRIMARY CONTACT INFORMATION

CONTACT NAME: TELEPHONE NO:

FAX NO: EMAIL:

mailto:ERP@state.sd.us

STATE OF SOUTH DAKOTA Page 2 of 23 RFI # 23RFI8453

Table of Contents 1 General Information

1.1 Issuing Office and Request for Information (RFI) Reference Number

1.2 Letter of Intent

1.3 Schedule of Activities (subject to change at the State’s discretion)

1.4 Submitting Your Response

1.5 Modification or Withdrawal of Responses

1.6 Respondent Inquiries

1.7 Incurring Cost

1.8 Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions

1.9 Non-Discrimination Statement

1.10 Addenda to RFI

1.11 Proprietary Information

1.12 Tax Exempt

1.13 Prohibition on State Contracts with Prohibited Entities

2 ERP Solution Minimum Qualifications

3 ERP Initiative Background and Description

3.1 Introduction

3.2 Goals and Objectives

3.3 Initiative Scope

3.3.1 Organizational Scope

3.3.2 Solution Functional Scope

3.4 Institutional Metrics

4 RFI Submission Requirements

4.1 Submittal Organization & Response Content

4.2 Tab 1: Executive Summary (max. of 3 pages)

4.3 Tab 2: Respondent Qualifications (max. of 4 pages)

4.4 Tab 3: Solution Overview (max. of 15 pages)

4.4.1 3.1 Key Differentiators

4.4.2 3.2 Technical Platform

4.4.3 3.3 Solution Innovations & Modern Technology Adoption

4.4.4 3.4 Reporting & Analytics

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4.4.5 3.5 Module Integration

4.4.6 3.6 Data Integration

4.4.7 3.7 Unique Requirements

4.4.8 3.8 Solution Maintenance and Updates

4.4.9 3.9 Product Roadmaps

4.5 Tab 4: Implementation Partners (max. of 3 pages)

4.6 Tab 5: Standard ERP Solution Contract Terms & Conditions (no page limit)

4.7 Tab 6: Description of how proposed solution meets ERP Solution Minimum Qualifications (max. of 4 pages)

4.8 Tab 7: Response to Cost Schedules (no page limit)

4.8.1 7.1 Payment Terms

4.8.2 7.2 Pricing Model

4.8.3 7.3 Cost Assumptions

4.9 Tab 8: Ideas for Improvement (max. of 2 pages)

5 ERP Solution Capabilities Demonstrations

Attachment 1: Cost Schedules

Attachment 2: Implementation Information

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1 General Information

1.1 Issuing Office and Request for Information (RFI) Reference Number

The Bureau of Finance and Management (BFM) is the issuing office for this document and all subsequent addenda relating to it. The reference number for the request is RFI #23RFI8453. This number must be referred to on all responses, correspondence, and documentation relating to the

RFI.

1.2 Letter of Intent

All interested Respondents must submit a Letter of Intent to respond to this RFI.

The Letter of Intent may be submitted to Jason Lutz via email at ERP@state.sd.us. Please place the following in the subject line of your email: “Letter of Intent for RFI #23RFI8453”.

1.3 Schedule of Activities (subject to change at the State’s discretion) RFI Publication: March 3, 2023 Letter of Intent Due (5:00PM CT): March 10, 2023 Deadline for Submission of Written Inquiries (5:00PM CT): March 15, 2023 Responses to Respondent Questions (5:00PM CT) March 20, 2023 Response Submission (5:00PM CT): March 24, 2023 Solution Demonstration and Oral Presentations (estimated date range): April 12 – May

12, 2023 The purpose of this RFI is to educate the State of South Dakota (State) about functionalities available with modern ERP solutions. Responses and participation in this RFI are not binding and will not include or preclude vendors from future procurement opportunities. It is the intent of BFM to issue a Request for Proposal (RFP) for an ERP system replacement at a forthcoming date.

1.4 Submitting Your Response

All responses must be completed and received by BFM by the date and time indicated in the Schedule of Activities.

The electronic version is to be provided in MS WORD, MS EXCEL, PDF, or a combination of these formats to ERP@state.sd.us. The email, including attachments, must be limited to 20MB in size. If multiple email messages are necessary in order to meet the attachment size limitation, the file name and the subject of the email message must be “(Your Name) – RFI #23RFI8453 Response – x of y”, where “x” represents the number of the component out of a total of “y” total components of the response (e.g., if a total of 3 components submitted as attachments to 3 messages: 1 of 3, 2 of 3, and 3 of 3).

Respondents may also submit a response that exceeds the 20MB limit via a flashdrive. The sealed envelope containing the flashdrive must be marked with the appropriate RFI Number and

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Title. The words “Sealed Response Enclosed” must be prominently denoted on the outside of the shipping container. Responses submitted on flashdrives must be addressed and labeled as follows:

Request for Information Number: 23RFI8453 Response Title: Request for Information (RFI) for Enterprise Resource Planning (ERP) Solution DUE: March 24, 2023 (5:00PM CT)

BUYER: BFM

Attention: Jason Lutz

Address: 500 East Capitol Avenue, Pierre, SD 57501 No response shall be accepted from any person, firm, or corporation that is in arrears upon any obligations to the State, or that otherwise may be deemed irresponsible or unreliable by the State.

1.5 Modification or Withdrawal of Responses

Responses may be modified or withdrawn by the Respondent prior to the established due date and time.

No oral, telephonic, telegraphic, or facsimile responses or modifications will be considered.

1.6 Respondent Inquiries

All written questions are to be sent to: ERP@state.sd.us. Only questions submitted via email will be accepted.

Respondent may submit email questions concerning this RFI to obtain clarification of requirements. No questions will be accepted after the date and time indicated in the above Schedule of Activities. Email questions to the email address listed above with the subject line “RFI #23RFI8453”. The questions and the answers will be provided via the State of South Dakota’s Bureau of Administration Central Bid Exchange website before the response submittal date and will be sent by the date and time indicated in the above Schedule of Activities.

Respondent may not rely on any other statements, either of a written or oral nature, that alter any specification or other term or condition of this RFI that have not originated from the State’s RFI contact. Respondent will be notified in the same manner as indicated above regarding any modifications to this RFI.

1.7 Incurring Cost

The State of South Dakota will not be held responsible for any costs incurred by the Respondent for work performed in the preparation and production of a response or in the participation of any demonstrations/presentation related to this RFI, including all addenda to the RFI.

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1.8 Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions

By signing and submitting its response, the Respondent certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation, by any federal department or agency, from transactions involving the use of federal funds. Where the Respondent is unable to certify to any of the statements in this certification, the Respondent shall attach an explanation to its response.

1.9 Non-Discrimination Statement

The State requires that all contractors, vendors, and suppliers doing business with any state agency, department, or institution provide a statement of non-discrimination. By signing and submitting its response, the Respondent certifies it does not discriminate in its employment practices with regard to race, color, creed, religion, age, sex, ancestry, national origin, or disability.

1.10 Addenda to RFI

Amendments to this RFI may be necessary prior to the closing date and will be furnished to all prospective Respondents. Failure to acknowledge receipt of amendments in accordance with the instructions contained in the amendment may result in the response not being considered.

1.11 Proprietary Information

Proprietary information can be protected under limited circumstances such as client lists and non-public financial statements. Service elements are not considered proprietary. An entire response may not be marked as proprietary. Respondents must clearly identify in the Executive Summary and mark in the body of the response any specific proprietary information they are requesting to be protected. The Executive Summary must contain specific justification explaining why the information is to be protected. Responses may be reviewed and evaluated by any person at the discretion of the State. All materials submitted become the property of the State and may be returned only at the State's option.

1.12 Tax Exempt

The State is exempt from the payment of taxes imposed by the Federal Government and/or the State. Such taxes must not be included in the prices contained in the response.

1.13 Prohibition on State Contracts with Prohibited Entities

For contractors, vendors, suppliers, or subcontractors who enter into a contract with the State by submitting a response to this solicitation or agreeing to contract with the State, the bidder or offeror certifies and agrees that the following information is correct:

The bidder or offeror, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, STATE OF SOUTH DAKOTA Page 7 of 23 RFI # 23RFI8453 or commercial treatment of any vendor, supplier, or subcontractor, is not an entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by South Dakota Executive Order 2023-02. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or offeror on this project and terminate any contract awarded based on the bid or response. The successful bidder or offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

2 ERP Solution Minimum Qualifications The following minimum qualifications are established for the ERP solution. The Respondent should describe how the ERP solution meets these minimum qualifications:

a. Financial Management and Procurement/Logistics components of the Respondent’s proposed ERP solution must be in production or in the process of being implemented entity-wide for either a:

1. U.S. state government (complete table in Attachment 2 and include it under Tab 6 of the response); or a

2. U.S. city or county government of comparable size and complexity to the State. For the purposes of this RFI, “comparable size and complexity” is defined as an annual budget of at least $1 billion and a minimum of 8,000 full-time employees (complete table in Attachment 2 and include it under Tab 6 of the response);

b. Core Financial Management and Procurement/Logistics components are fully integrated and provided by the same ERP solution provider. The State acknowledges that certain specialized functions may require third-party software solutions;

c. Respondent’s proposed ERP solution must have single sign-on (SSO) functionality. Acceptable SSO industry standard protocols include OAuth 2.0 and OpenID Connect. Additionally, the solution must support the use of multi-factor authentication for users as required by the State;

d. Respondent must: (1) have released at least one major update annually over the past two calendar years to the Respondent’s proposed ERP solution, and (2) have a defined roadmap for application updates, maintenance and support for the next five (5) years showing continued investment in innovation, security and maintaining a viable product; and

e. Deliver a complete solution, as described herein, on a Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), or Cloud ERP basis.

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3 ERP Initiative Background and Description

3.1 Introduction

The State is issuing this RFI to gather current market information and vendor qualifications on a fully integrated, comprehensive ERP solution, as well as inform the ERP vendor community on the State’s statewide ERP initiative (see initiative’s goals, objectives, and scope below).

The State is soliciting pricing and other information from ERP solution vendors on a solution that could potentially replace the State’s legacy statewide administrative systems supporting the Financial Management, Budget, and Procurement/Logistics components. The State’s current systems environment consists of several different systems on various internal-hosted platforms, including a legacy mainframe system. A primary goal for this initiative is to create a more flexible, fully integrated systems environment.

The major existing systems that support the above-listed functional areas include the following:

• Central Accounting System (CAS): The State’s accounting system of record that provides functionality to support the State’s financial business functions (i.e., General Ledger, Accounts Payable, Budget Control, Procurement, Inventory). The software is E:Series from Infor. This is a mainframe system the State has used for more than 30 years;

• South Dakota Budget System: A client/server application that supports the statewide Budget Development processes. It was developed by and is supported by the State (not commercial off-the-shelf software);

• E-Procurement System: The State uses EasyPurchase, a commercially available, standalone application from ESM Solutions that provides e-Procurement functionality statewide. The State intends to assess the capabilities of the full Procurement suite of the ERP system but may choose to continue to utilize the State’s EasyPurchase procurement system for formal solicitations; and

• Financial Reporting System: The state uses Oracle Financial Consolidation and Close System (FCCS) to create accrual-based annual financial reports from our cash basis budgetary accounting system.

Also included in the scope of the ERP initiative are the existing agency-specific systems that would likely be retired/avoided if a new ERP system were implemented as those systems provide functionality included in the ERP functionality within scope. It should be noted that a typical statewide ERP system would not replace programmatic systems such as roads/bridge management, tax revenue management, or Medicaid management information systems;

therefore, they were not included in scope.

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3.2 Goals and Objectives

While the State continues to support and maintain its systems, it is an aging platform that lacks many of the features and capabilities of more modern ERP solutions that will help the State meet the following goals and objectives:

1. Reduce the State’s sizable technology risk exposure resulting from software obsolescence, hardware/technical infrastructure obsolescence, and the increasing scarcity of technical resources;

2. Resolve much of the fragmentation of the State’s existing administrative systems environment, which hinders process efficiency due to dual data entry, system reconciliations, and data-synchronization adjustments, reporting from fragmented data sources, etc.;

3. Incorporate functionality that meets or exceeds federal security standards (e.g., NIST), including FEDRAMP Impact Level 4 certification, and provide security functions such as role-based segregation of duties and configurable approval rules that significantly strengthen financial controls;

4. Provide for a single Procurement system that would be fully integrated with the financial management, asset management, and inventory functions, thereby improving process efficiency and control. As stated above, the State intends to assess the capabilities of the full Procurement suite of the ERP system but may choose to continue to utilize the State’s EasyPurchase procurement system for formal solicitations;

5. Provide for better tracking and management of the State’s projects and assets;

6. Achieve process standardization based on best practices across the State through the implementation of a unified technology platform;

7. Provide for the reduction of paper-based processes by leveraging electronic workflow, approval, document management, and retention capabilities where appropriate;

8. Provide for the capturing and production of consistent expandable set of data;

9. Provide a more flexible solution to meet evolving business requirements (e.g., compliance with Governmental Accounting Standards Board [GASB] guidance) that is configurable by business users and does not require software developers to adjust/maintain system rules; and

10. Provide for enhanced compliance with Section 508 of the Americans with Disabilities Act regarding accessibility.

3.3 Initiative Scope

The State is evaluating the replacement of its legacy Budget, Financial Management, Financial Reporting and Procurement/Logistics systems. Additionally, the State seeks to modernize the underlying technical infrastructure supporting the system. The State’s ideal solution is one in which best practices inherent in the solution can be adopted by the State with no customization of the underlying software. This solution will be delivered on a modern, scalable technology platform that will allow the State’s investment in new systems to be functionally and technically viable for the foreseeable future.

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3.3.1 Organizational Scope

It is assumed that a new ERP system would be implemented statewide at all agencies, departments, etc. for which it is business-justified to do so. State colleges and universities are not within the scope of this effort, although they are required to provide general ledger expenditure to the state.

3.3.2 Solution Functional Scope

As indicated above and in the graphic that follows, the functional scope of the ERP initiative includes the functional areas of Financial Management, Budget, and Procurement/Logistics.

Functional Scope

The three (3) major functional components within the scope of this effort include the following:

1) Budget – The Budget component should provide capabilities to support the entire life cycle of the State’s budget development process (including forecasting) for the preparation, review and approval of the State’s operating and capital budget appropriations. Budget capabilities should include the ability to:

• Integrate with selected data from the State’s Human Resources system such as data regarding positions, vacancies, and payroll.

Procurement Inventory Management Asset/Fixed Asset

Management Contract Management

Budget Development Operating Budget Capital Budget

Budget Forecasting

Cash/Treasury Management Cost Accounting Grant Accounting Project Accounting Cost Allocation Financial Reporting

General Ledger Budgetary Control Accounts Payable Travel and Expense

Reimbursement Accounts Receivable

Budget

Financial Management

Procurement/ Logistics

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• Populate budget request/recommendation templates with historical and year-to-date expense and full-time equivalent (FTE) employee and position information.

• Integrate annual and special appropriations with the Financial Management component of the ERP system.

• Provide strict security controls for each budget stage with audit and exception reporting to assure the business owners of each stage that the confidentiality of the budget related to work-in-progress has not been viewed or compromised by unauthorized parties.

• Allow multiple budget stages to be open concurrently with flexible business rules to ensure the integrity of each stage.

• Support cost projections and modeling.

• Support revenue projections and modeling.

• Support dashboards.

• Support the publication of diverse budget documents such as the executive budget, department budget requests, appropriation bills, mark-up sheets and summaries of the budget documents.

• Provide extensive reporting and data analytics capabilities.

2) Financial Management – The Financial Management component (including budgetary control) should provide the full range of financial capabilities to support the State’s current and future needs. It should be fully integrated within the Financial Management component and with the Budget and Procurement/Logistics components to avoid the redundant entry of information.

Financial capabilities should include:

• Accounts Payable functionality including integration with other Financial

Management modules and Procurement to facilitate automated matching and payment generation in accordance with business rules established by the State.

• Accounts Receivable functionality to support the establishment and aging of receivables with the automatic generation of notices based on business rules established by the State.

• Asset Management functionality to support the monitoring, tracking, transferring for attributes for assets such as location and assignment by agency, division and individual, as well as information related to funding and depreciation.

• Budget Control functionality to enable the State to load and manage appropriations utilizing allotments based on business rules established by the State.

• Cash Management functionality to enable the State to manage cash in the State Treasury and in bank accounts in accordance with the Cash

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Management Investment Act (CMIA) and business rules established by the State.

• Chart of Accounts functionality to accommodate all entities within the scope of the RFI to share a common financial chart of accounts to support the independent operations of all departments within the framework established by the State for agency-specific and statewide reporting and accountability.

• Cost Accounting & Cost Allocation functionality to support multiple cost allocation processes including basic percentage allocations and complex multi-basis, multi-pool stepdown cost allocation processes required to support some Public Assistance Cost Allocation Plans and the Statewide Cost Allocation Plan.

• Department of Transportation (DOT) FHWA Billing functionality to support both statewide and DOT processes such as Federal Highway Administration (FHWA) billing.

• Encumbrance Accounting functionality to support requisitions and purchase orders spanning multiple fiscal periods (e.g., State fiscal year, federal fiscal year, grant-specific fiscal year) and multiple allotment periods (e.g., monthly, quarterly).

• Grant Management functionality to support the entire grant management life cycle from application through close-out for grants received by the State (grantee) and support the entire grant management life cycle from application to closeout for grants made by the State (grantor).

• Project Management functionality to support the entire project management life cycle from project initiation through project closeout including supporting the recording of project-related financial events in other financial modules.

• Financial Reporting capability to enable the production of the State’s Annual Comprehensive Financial Report.

• Procurement card functionality enabling review and approval of transactions from procurement cards supplied by major banks.

3) Procurement/Logistics – The Procurement/Logistics component should provide the full range of procurement and logistics capabilities to support the State’s current and future needs. It should be fully integrated within the Financial Management component to avoid the redundant entry of information and provide budgetary control for the procurement process. Procurements/Logistics capabilities should include:

• Formal acquisition process from requisition to solicitation to contract or purchase order (PO) with best and final offer (BAFO) and firm closing date/time functionality to award. Creation of master contracts with process for requisitions and POs under those contracts.

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• Informal acquisition process from requisition to informal solicitation with target date/time functionality.

• Purchase process against catalogs, roundtrip (punchout) catalogs, and off-catalog.

• Purchase process (POs, receipts/receivers, and invoices) for quantity purchases and for amount purchases.

• Modification and cancellation process for requisitions, POs, receipts/receivers, solicitations, contracts and catalogs.

• Vendor management including registration, self-service and vendor holds.

• Process for posting solicitations and contracts on secure public-facing site.

• Inventory management with basic warehousing functionality to support inventory locations, order fulfillment, reorder thresholds, restocking, aging and management reporting.

• Facilities management functionality for a variety of facility types providing capabilities such as planning, scheduling, tracking warranties, work orders, tracking utilities and security cards.

• Contract Management functionality to support the entire contract life cycle, including the abilities to workflow activities and transactions as defined by the State and budget-check contract expenditures against funding availability.

3.4 Institutional Metrics

The State provides the following organizational metrics to assist Respondents in determining software subscription costs. As applicable, these metrics should be used to complete the Cost Schedules provided in Excel format.

1 FY23 Enacted Budget $5.8B

2 Fiscal Year Begins July 1

3 Total Active Users in Central Accounting System (CAS) 300

4 Total Number of General Ledger Accounts Maintained in Central Accounting System (CAS) 150,000

5 Total Number of Active Vendors in Central Accounting System (CAS) 22,000

6 Total Active Users in South Dakota Budget System 200

7 Total Active Users in EasyPurchase System 1,400

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8 Total Number of POs Processed Annually by EasyPurchase System 10,500

9 Total Employees 9,500

10 Total Employees Likely to Use Travel Reimbursement Functionality 7,500

4 RFI Submission Requirements All responses must be completed and received by BFM by the date and time indicated in the Schedule of Activities. Also refer to Submitting Your Response for additional submission information.

The response is to have the following two components:

1. Response Document as described directly below, structured in tabbed sections 1- 8, with the completed cover page of this RFI serving as the cover page of the response, and provided in MS Word, MS Excel, PDF, or a combination of these formats; and

2. Cost Spreadsheet, in MS Excel format, as described in the spreadsheet itself and in Attachment 1: Cost Schedules.

4.1 Submittal Organization & Response Content

Respondents must organize their responses in the following manner:

Tab 1: Executive Summary

Tab 2: Respondent Qualifications

Tab 3: Solution Overview

• 3.1 Key Differentiators

• 3.2 Technical Platform

• 3.3 Solution Innovation and Modern Technology Adoption

• 3.4 Reporting & Analytics

• 3.5 Module Integration

• 3.6 Data Integration

• 3.7 Unique Requirements

• 3.8 Solution Maintenance and Updates

• 3.9 Product Roadmap

Tab 4: Implementation Partners

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Tab 5: Standard ERP Solution Contract Terms & Conditions

Tab 6: Description of how solution meets ERP Solution Minimum Qualifications (see Section 2 ERP Solution Minimum Qualifications above)

Tab 7: Response to Cost Schedules

• 7.1 Payment Terms

• 7.2 Pricing Model

• 7.3 Cost Assumptions

Tab 8: Ideas for Improvement

Each of the aforementioned tabs is described in turn below. Note that, for some tabs, we have provided guidance on maximum page length. These lengths are what the State suspects should be sufficient to address the subject matter adequately and help keep the process manageable for all parties concerned.

4.2 Tab 1: Executive Summary (max. of 3 pages)

The Executive Summary is intended to provide a clear and concise understanding of key aspects of the response as follows:

• Brief narrative summary of the Respondent’s understanding of the RFI and its ability to provide the ERP solution as outlined in this RFI;

• Summary of the ERP solution and services recommended in response to the RFI and why those products would represent a “best value” solution for the State;

• Discussion of why the Respondent is qualified to provide the ERP solution presented, including an overview of prior relevant experiences and product or industry alliances and certifications; and

• Clear delineation of any specific information the Respondent is requesting to be treated as proprietary and protected, as well as justification for why it should be treated and protected as such (refer to Proprietary Information).

The State is seeking information regarding the ERP solution at this time. If the Respondent also provides implementation services and does not separate product costs from implementation service costs, please so state and describe the implementation services.

4.3 Tab 2: Respondent Qualifications (max. of 4 pages)

The state is requesting responses from qualified firms that are in the business of providing an ERP solution as described in this RFI. The Respondent should present information about its organization, highlighting its applicable qualifications and experience, including:

• Brief overview of business operations with an emphasis on ERP and State-related products and services;

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• Respondent's ability to meet the requirements described in this RFI. Summarize the breadth and depth of the Respondent’s state-government ERP experience. Highlight ERP system installations or implementation projects of relevant size and scope in relation to the State; and

• Research and development budget, industry leadership, or other methods that the Respondent uses to stay current with changes in accounting standards (e.g., GASB) and in the state-government ERP market.

4.4 Tab 3: Solution Overview (max. of 15 pages)

Provide an overview of the Respondent’s core ERP solution and the components or modules proposed to meet the State’s requirements. The overview must describe only software for which costs are presented in Attachment 1: Cost Schedules. Highlight any third-party products included in the solution, with an explanation of why these products are the recommended option. This section is intended to be a high-level overview of the solution.

4.4.1 3.1 Key Differentiators

Describe what you believe are the key differentiators of your proposed solution versus your competitors in the state government ERP market. As appropriate, describe key differentiators or capabilities within individual modules that might be beneficial for the State.

4.4.2 3.2 Technical Platform

Describe the technical delivery platform for your product. As appropriate, describe the architecture that supports the solution and critical technical components that may be required.

Describe the origin of the software system, including whether all modules have been built in-house using a unified technology stack and database, or if the solution uses preexisting components acquired through acquisitions. If using preexisting components, please describe how the system has been integrated to ensure a cohesive experience for end-users and if there is a long-term strategy to consolidate to a unified technical system. Please also describe any third-party software dependencies for the solution (e.g., reliance on locally installed components, browser add-ins). Describe key enablers of this platform and how they support the State’s objectives.

Also, please describe your data centers in the continental United States and provide brief information on facility security and data/system continuity procedures.

4.4.3 3.3 Solution Innovations & Modern Technology Adoption

• Describe your approach to incorporating into your core ERP solution innovations and modern capabilities including, but not limited to, artificial intelligence, machine learning, and digital assistants/chatbots.

• Provide a timeline of the functionality enhancements delivered to the product over the past five (5) years.

• Please provide examples of these innovations that are delivered and included as part of the generally available software.

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• Describe any technologies available that allow the customer to develop its own innovations with little to no vendor support.

• Describe self-service capabilities relevant to the State’s initiative, especially in the area of internal analytics and reporting.

• Note any technologies discussed in this section for which the cost is not included in Attachment 1: Cost Schedules.

4.4.4 3.4 Reporting & Analytics

• Describe the reporting and analytics capabilities included as part of the proposed solution.

• Describe the capabilities resident within the solution to provide real-time, self-service analytics, queries, and reporting that are available to business users.

• Are these reporting and analytics capabilities delivered as part of the core ERP solution or are they an add-on product? If these capabilities are in an add-on product, please describe the product and how it is integrated with the core ERP solution, as well as any variations in the support, user experience, or pricing models. Please include all proposed costs in the Cost Schedules spreadsheet.

4.4.5 3.5 Module Integration

• Describe the internal integration of operational modules (e.g., Procurement and Accounts Payable) with the General Ledger.

• Describe interfaces that are delivered and supported by the Respondent to support third-party software included in the proposed solution, if any.

4.4.6 3.6 Data Integration

Describe instances in which the Respondent’s ERP solution’s Financial Management, Budget, and Procurement/Logistics functionality has been successfully integrated or interfaced with existing business applications. Describe how the solution can adapt to business-necessary/critical interfaces using widely adopted open application programming interfaces and standards.

Additionally, BFM expects that the Respondent’s proposed ERP solution will make available/expose software services, and publish documentation for those software services, that would enable third-party developers to interface other business applications.

4.4.7 3.7 Unique Requirements

The State intends to avoid modification of baseline software and adopt the business practices inherent in the solution. However, the State may have business requirements that are unique to the State. With this understanding, describe your approach to addressing client-specific needs within your solution, including the ability to:

• Add and/or activate additional data elements;

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• Configure lists of valid values for existing and custom data elements;

• Create and enforce State-specific business rules statewide, as well as for specific cases; and

• Create, configure, and modify business process models and workflows for business transactions based on business rules.

Additionally, describe the impact of these changes or configurations on the solution maintenance and updates processes.

4.4.8 3.8 Solution Maintenance and Updates

Describe the process for updating or upgrading the system, from routine updates (e.g., patches and fixes) to more significant upgrades (e.g., new functionality and/or technical capabilities).

Describe any flexibility or options available for the customer to manage or influence the timing of software updates.

4.4.9 3.9 Product Roadmaps

Provide an overview of the strategic vision and roadmap for your ERP solution to help the State understand the intended product roadmap in relation to the State’s hypothetical implementation within the next few years. Include any differentiating technological approaches and anticipated developments that would be of particular interest to state government. Also include a listing of historical software releases for the past two (2) calendar years showing consistent release of updates for security, functionality, and compliance with industry regulations.

The State is willing to execute nondisclosure agreements to review these roadmaps if necessary.

4.5 Tab 4: Implementation Partners (max. of 3 pages)

Describe the Respondent’s certification program for implementation partners and provide a list of certified partners with experience implementing the proposed solution for state government or large public sector customers. Respondents shall describe the typical approach their implementation partners employ, including engagement phases, timeline, and resource intensity for the State.

4.6 Tab 5: Standard ERP Solution Contract Terms & Conditions (no page limit)

The State seeks to understand contractual terms and conditions that are likely to be required in future contracts for ERP solution licenses or subscriptions. Respondents shall provide a copy of its standard ERP solution contract terms and conditions.

4.7 Tab 6: Description of how proposed solution meets ERP Solution Minimum Qualifications (max. of 4 pages)

As part of the response under this tab, include a completed version of the example table contained in Attachment 2: Implementation Information.

STATE OF SOUTH DAKOTA Page 19 of 23 RFI # 23RFI8453

4.8 Tab 7: Response to Cost Schedules (no page limit)

Attachment 1: Cost Schedules are a required component of the Respondent’s reply and shall be submitted using the Excel format provided. The State anticipates that estimated costs submitted as part of this RFI will be representative of the costs the State will see in any subsequent Request for Proposal.

The State intends to view these responses as planning estimates to assist in obtaining approval and funding for a potential ERP implementation project, and Respondents’ diligence in providing their best estimates is greatly appreciated. Instructions for completion of the applicable cost schedules are included in the Excel file. Other response items and guidance regarding cost are listed below.

4.8.1 7.1 Payment Terms

Describe the typical payment terms for the solution.

4.8.2 7.2 Pricing Model

The State seeks to understand the pricing model for each Respondent. For each proposed solution component, please describe the following:

• The metrics used to determine the solution price (e.g., types of users).

• Any limitations on users, transactions, storage, or other variables?

• How often are these metrics reevaluated?

• What are your policies and methodologies regarding inflationary price increases (e.g., Consumer Price Index)?

• What are your practices for contract renewals?

4.8.3 7.3 Cost Assumptions

In addition to the organizational metrics provided herein, list any other key assumptions used in the Respondent’s estimated cost response.

4.9 Tab 8: Ideas for Improvement (max. of 2 pages)

In advance of a possible RFP for ERP acquisition and implementation, the State welcomes recommendations from the Respondents regarding how the State might improve the information it could incorporate into an RFP that would better inform the Respondents regarding the ERP solution portion of the RFP. For example, the Respondent may have recommendations for the State to include, in an RFP, additional and/or modified information to that in this RFI regarding the initiative’s functional scope, master data and transaction volumes, etc. Any recommendations pertaining to the format and/or content of the ERP solution portion of an RFP response are welcomed as well. If the Respondent has no recommendations regarding this matter, please respond by indicating it has no recommendations under this tab.

https://bfm.sd.gov/rfi/23RFI8453v1.3.xlsx

STATE OF SOUTH DAKOTA Page 20 of 23 RFI # 23RFI8453

5 ERP Solution Capabilities Demonstrations Respondents are advised that the State will likely invite a set of Respondents to this RFI to conduct demonstration/presentation sessions, each for up to four (4) hours in duration. The State is tentatively planning for the sessions to be held in the April 12 – May 12, 2023, date range. At this time, the State is assuming there will be three (3) main components to the sessions: (1) presentation; (2) system demonstration; and (3) wrap-up Q&A. Which, if any, of these components (or portion[s] thereof) will be conducted on-site in Pierre, SD, will be negotiated with each Respondent. For any on-site portion(s) of a session, the State will provide a room equipped with a projector and screen. The State anticipates that a number of its stakeholders will participate via MS Teams.

The purpose of these contemplated demonstrations is to familiarize the State with modern ERP solution capabilities available in the market to see how and to what extent applying those capabilities might benefit the State. Note that only those Respondents certifying and demonstrating full compliance with the minimum solution requirements documented in ERP Solution Minimum Qualifications will be eligible to participate in the sessions.

The State will provide an overall agenda for the sessions that will include guidance with suggested blocks of time for each agenda item of the session, but it will be the obligation of the Respondent to effectively manage its time.

The sessions may include other information at the Respondent’s discretion, but the items listed in the demonstration script must be demonstrated within the time allotted.

No more than one session time slot will be available for any one ERP solution. However, if a Respondent has more than one solution that the Respondent feels is reasonable for the State to consider, multiple time slots may be offered.

Invited Respondents proposing unique third-party software products must demonstrate those unique aspects of the proposed third-party software and how the software interacts with the ERP system.

STATE OF SOUTH DAKOTA Page 21 of 23 RFI # 23RFI8453

Attachment 1: Cost Schedules The cost schedules must be submitted in the provided Excel format per the instructions in the spreadsheet itself, in Tab 7: Response to Cost Schedules (see above), and the information in this attachment. Note that the response pertaining to the Cost Schedules should be included in the Cost Schedule itself, as well as under Tab 7 of the response document.

The Cost Schedules shall consist of the following:

1. Respondents should document and submit all cost-related assumptions and any other information necessary for State personnel to thoroughly understand each Cost Schedule in the Cost Schedule itself and/or under Tab 7 of the response, as appropriate. If the cost assumption pertains to a particular line item or element on a Cost Schedule, the reference for the assumption should be provided.

2. Respondent is to submit a detailed quotation in the Excel format that was provided by the State for this RFI to include all aspects of providing the scope of products and services associated with this RFI. Include print images of the cost worksheets under Tab 7 of the response document. The Excel file itself is to be provided as a separate item.

In completing the provided Excel spreadsheet, “TBD” (to be determined) or similar responses in the spreadsheet cells for costs are not desired. The State asks the Respondent to price its offerings broken out by any separately priced component of the solution.

Formulas are provided in the workbook for the convenience of the Respondent. The Respondent shall be responsible for the consistency and accuracy of the formulas, sums, and roll-ups contained in the workbook. Any errors are solely the responsibility of the Respondent. Rows and columns may be added as needed.

The remainder of this section contains specific instructions concerning how Respondents are to address and submit the various cost worksheets that are included in the Cost Schedules which are in Excel format. Assume that all costs shown on the schedules are for a full year.

Worksheet 1 – Summary Presentation Schedule

This schedule should reflect all costs required to acquire the proposed ERP solution. The reference in the cost category indicates which supporting Cost Schedules worksheet should provide the additional detail to support the summary cost information presented on this schedule.

Respondents should ensure the accuracy of the cost information provided on each of the Cost Schedules and verify the accuracy of any Excel formulas or references. Additionally, Respondents should document all cost-related assumptions in the Cost Schedules and/or under Tab 7 of the response document.

Worksheet 2 – Software Subscription

Respondents should provide the proposed subscription service cost by year reflecting all SaaS Subscription Costs. These schedules should list the licensed software product(s) being proposed consistent with the rest of the response. Rows may be added as necessary. Assumptions and other information necessary for State personnel to thoroughly understand the proposed pricing https://bfm.sd.gov/rfi/23RFI8453v1.3.xlsx

STATE OF SOUTH DAKOTA Page 22 of 23 RFI # 23RFI8453 should be submitted as cost assumptions in the Cost Schedules (use the organizational metrics provided in Institutional Metrics if cost is dependent on the number and types of users) and/or under Tab 7 of the response document. Additionally, the Respondent must complete the Subscription Cost Components schedule on this worksheet to indicate which components are included in the quoted subscription cost.

Worksheet 3 – Other Cost Components

Respondents should utilize this schedule to describe and reflect any additional costs being proposed that were not reflected elsewhere. Each cost component should include a description of the cost component, the basis for the cost component, and the proposed cost of the component.

Assumptions and other information necessary for State personnel to thoroughly understand the proposed cost components should be included in the Cost Schedules worksheet itself and/or under Tab 7 in the response document. Rows may be added as needed.

Worksheet 4 – Optional Costs

Respondents should utilize this schedule to describe and reflect any optional products or services presented in the quotation. These costs will not be included in the Summary Total Cost. Any products or services presented here are considered nonessential or outside the requested scope and are not required for system operation per the State’s requirements and Solution Functional Scope. Each cost component should include a description, the basis for each of the cost components, and the proposed cost of the component. Assumptions and information necessary for State personnel to thoroughly understand the proposed pricing should be included in the response. Rows may be added as needed.

STATE OF SOUTH DAKOTA Page 23 of 23 RFI # 23RFI8453

Attachment 2: Implementation Information Complete the following example table to describe compliance with solution requirement 2.a. and include the completed table under Tab 6 of your response. Modify the table as needed to communicate the status effectively.

Financial / Procurement Budget

Government Entity

System Implemented or In Process

Planned/Actual Go-Live Date

Integration Services Provider

System Implemented or In Process

Planned/Actual Go-Live Date

Integration Services Provider

Comments

ENTITY NAME PRODUCT NAME IN PROCESS – 2025

ENTITY NAME PRODUCT NAME GO-LIVE 2019

3.4 Institutional Metrics

4.9 Tab 8: Ideas for Improvement (max. of 2 pages)

Attachment 2: Implementation Information