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P R I N C E T O N P L A S M A P H Y S I C S L A B O R A T O R Y 1 0 0 S T E L L A R A T O R R D . • P . O . B O X 4 5 1 • P R I N C E T O N • N J • 0 8 5 4 3

DATE: September 25, 2020

TO: Interested Firms

SUBJECT: Request for Proposal (RFP) 20-073

The Trustees of Princeton University, a U.S. Department of Energy Prime Contractor, represented by Princeton Plasma Physics Laboratory (PPPL), located in the vicinity of Princeton, NJ, has a requirement for ERP Financial & Supply Chain Software Solution and Post-Implementation Support.

PPPL is soliciting proposals from qualified suppliers to replace the current Financial and Supply Chain business systems, and the related underlying IT infrastructure, with a commercial SaaS solution(s) based on a fully integrated Financial and Supply Chain ERP solution capable of supporting PPPL’s current and future business. Specific requirements for these services can be found in the Statement of Work “ERP Financial & Supply Chain Software Solution and Post-Implementation Support”; CAT: A1; Reference Work Planning No.:

N/A; Revision 0; dated 8-14-2020.

Any award issued will be a Firm Fixed Price Subcontract under U.S. Department of Energy Prime Contract DE-AC02009CH11466 with the Trustees of Princeton University. It is strongly recommended that interested firms review the RFP documents thoroughly. If, after reviewing the RFP, you determine the work is within your ability and you have an interest in submitting a proposal in response, please complete and return to the Procurement Specialist by email the attachment, “Acknowledgement of Request for Proposal (RFP) 20- 073” Form.

Proposals shall be developed according to the attached Section III, “Instructions for Proposal Preparation”.

All sections and completed documents are required in order for the proposal to be determined responsive to this RFP.

ALL PROPOSALS MUST BE RECEIVED BY

4:30 PM EST

By NOVEMBER 6, 2020

If there are any questions pertaining to the RFP, please feel free to contact the following:

Cheryl Colan, ccolan@pppl.gov, (609) 243-3486 Kelly Gencarelli, kgencare@pppl.gov, (609) 243-2080

Regards, Cheryl Colan Procurement Specialist

Attachment: Request for Proposal (RFP) 20-073 mailto:ccolan@pppl.gov mailto:kgencare@pppl.gov

P R I N C E T O N P L A S M A P H Y S I C S L A B O R A T O R Y 1 0 0 S T E L L A R A T O R R D . • P . O . B O X 4 5 1 • P R I N C E T O N • N J • 0 8 5 4 3

ACKNOWLEDGMENT OF RECEIPT OF RFP 20-073

Please complete and return this Acknowledgement Form via email to the following person(s):

Cheryl Colan, ccolan@pppl.gov Kelly Gencarelli, kgencare@pppl.gov

We intend to submit a proposal in response to RFP 20-073

__________ We do not intend to submit a Proposal in response to RFP 20-073

The name, e-mail address, and telephone number of the individual who will serve our firm’s as point of contact for this RFP is provided below.

Name of Firm:

Point of Contact:

Phone: Email:

Signature:

Name:

Title:

Date:

mailto:ccolan@pppl.gov mailto:kgencare@pppl.gov

ACKNOWLEDGMENT OF RECEIPT OF RFP 20-073

Princeton Plasma Physics Laboratory Business System Upgrade Project Statement of Work

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STATEMENT OF WORK

for

ERP Financial & Supply Chain Software Solution and Post- Implementation Support

CAT: A1

Reference Work Planning #: N/A

Revision: 0

PREPARED BY: ______________________________________________________

(Yonghong Wu, Project Manager)

REVIEWED BY: ______________________________________________________

(Jaclyn Pursell, Project Director)

(Marc Cohen, CIO)

APPROVED BY: ______________________________________________________

(Kristen Fischer, Executive Sponsor)

PRINCETON UNIVERSITY

PRINCETON PLASMA PHYSICS LABORATORY

P.O. BOX 451

PRINCETON, N.J. 08543

8/31/20

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Statement of Work Revisions

Revision # Date Summary of Changes 0 8/14/2020 Initial Document

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Table of Contents

Contents

1 INTRODUCTION AND SCOPE

1.1 Introduction

1.1.1 Princeton Plasma Physics Laboratory Overview

1.1.2 Project Objectives

1.1.3 Project Background

1.1.4 Current Business System Technical Environment

1.2 Project Approach and Timeline

1.2.1 Project Governing Principles

1.2.2 Project Timeline

1.3 Project Scope

1.3.1 Overview

1.3.2 Modules/Functions in Scope

1.3.3 Scope of Services

2 APPLICABLE DOCUMENTS

3 APPLICABLE DRAWINGS

4 RESPONSIBILITIES

4.1 Princeton Plasma Physics Laboratory (PPPL)

4.2 Supplier

5 REQUIREMENTS

5.1 Functional Requirements

5.1.1 General Accounting

5.1.2 Accounts Receivable

5.1.3 Budget Planning & Control

5.1.4 Labor Distribution & Project Cost Management

5.1.5 Procurement Management

5.1.6 Accounts Payable

5.1.7 Asset Management

5.1.8 Inventory Management

5.1.9 Shipping & Receiving Management

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5.2 Technical & Regulatory Requirements

5.2.1 Access to PPPL Information Systems

5.2.2 Security Controls Compliance Testing

5.2.3 Cybersecurity Training

5.2.4 Service Organizational Control (SOC) Audits

5.2.5 Disaster Recovery and Business Continuity Plans

5.2.6 Information System Security

5.2.7 Continuous Monitoring and Reporting

5.2.8 Sizing & PPPL Technical Environment

5.2.9 Workflow

5.2.10 Reporting / Data Warehouse

5.2.11 Data Conversion

5.2.12 Interface

5.2.13 ERP Application Security

5.3 Ongoing Service requirements

5.4 Project Management Requirements

5.4.1 Project Management

5.4.2 Risk Management

5.4.3 Issue Management

5.4.4 Configuration Management

5.4.5 Resource Management

5.5 Training and Change Management Requirements

5.6 Product Strategy

6 TEST AND INSPECTION REQUIREMENTS

7 MINIMUM QUALIFICATIONS

7.1 Supplier Qualifications

7.2 Key Personnel

7.3 Supplier Training

7.4 Security and Badging Requirements

7.5 Work Location / Potential Access Requirements

7.6 Site Access and Work Hours

8 ENVIRONMENT, SAFETY, AND HEALTH

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9 QUALITY ASSURANCE REQUIREMENTS

10 SHIPPING STORAGE AND HANDLING

11 WARRANTY

12 DOCUMENTATION AND DELIVERABLES

12.1 Deliverables

13 PPPL STAFF RESOURCES

14 PROJECT ASSUMPTIONS

15 REQUIRED LISTING OF ATTACHMENTS

Attachment 1 – PPPL Functional Requirements

Attachment 2 – PPPL Detailed Technical and Support Requirements

Attachment 3 – PPPL Conversion Items

Attachment 4 – PPPL Interface Requirements

Attachment 5 – PPPL Reporting Requirements

Attachment 6 – PPPL Business Process Inventory

Attachment 7 – PPPL Use Cases

Attachment 8 – PPPL Implementation and Support Requirements

Attachment 9 – PPPL Supplier Qualifications and References Workbook

Attachment 10 – PPPL Software Solutions Response Form

Attachment 11 – PPPL Training Response Form

Attachment 12 – PPPL Supplier RFP Pricing Response

16 GLOSSARY OF TERMS

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1 INTRODUCTION AND SCOPE

1.1 Introduction

1.1.1 Princeton Plasma Physics Laboratory Overview

Founded in 1951 by the late Dr. Lyman Spitzer, a Princeton University professor of astrophysics, Princeton Plasma Physics Laboratory, also referred to as “PPPL,” or “Laboratory”, is a Collaborative National Center for plasma and fusion science. PPPL is a Department of Energy (DOE) National Laboratory managed and operated by Princeton University.

PPPL works with collaborators across the globe to develop fusion as an energy source for the world and conducts research along the broad frontier of plasma science and technology. PPPL also nurtures the national research enterprise in these fields and educates the next generation of plasma and fusion scientists. PPPL has two coupled missions to develop:

▪ The scientific understanding of plasmas from nano- to astrophysical-scale; and,

▪ The scientific knowledge to enable fusion to power the United States and the world.

1.1.2 Project Objectives

The primary objective of this project is to replace PPPL’s current Financial and Supply Chain business systems, and the related underlying Information Technology (IT) infrastructure, with a commercial SaaS solution(s) based on a fully integrated Financial and Supply Chain solution (referred to as the Enterprise Resource Planning (ERP) SaaS Solution) capable of supporting PPPL’s current and future business operations. The implemented solution(s) will enable PPPL staff to perform duties associated with business operations, such as financial management, procurement management, and material management. The solution will also accommodate interfaces with PPPL’s existing systems (Attachment 4 - PPPL Interface Requirements), such as Princeton University’s PeopleSoft Human Capital Management/Payroll and Financial Supply Chain Management system, Concur Travel & Expense Management, Maximo and other PPPL systems.

In addition, the solutions(s) will enable PPPL to achieve the following objectives:

▪ Improve operational efficiency;

▪ Streamline the PPPL’s core financial and procurement processes in conjunction with the implementation of practices available in the ERP SaaS Solution;

▪ Eliminate administrative activities and any unnecessary disparate systems that do not add value;

▪ Improve financial information transparency;

▪ A dashboard that provides measurable data to effectively capture, manage, and measure a program’s success;

▪ Provide the necessary capabilities and training to enable data extraction to meet daily business reporting needs;

▪ Assure compliance and mitigate risk;

▪ Standardize business processes and practices to conform to DOE policies, regulations, and procedures to include best practices, compliance and reduce risk;

▪ Enhance adaptability;

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▪ Provide ongoing access to industry improvements and features with moderate or minimal impact to the business operations; and,

▪ Address DOE policy changes as required.

1.1.3 Project Background

For approximately 15 years, PPPL has been operating a highly customized Great Plains (GP) fund accounting system on SQL Server 2005, as the system of record supporting all business operations related functions.

Although the current ERP solution operates effectively, it is highly customized and is no longer supported by the manufacturer. At this juncture, software upgrades within the existing environment could potentially compromise GP’s performance.

The goal of this Statement of Work (SOW) is to identify an ERP SaaS Solution that meets the Lab's requirements set forth within this document.

1.1.4 Current Business System Technical Environment

A high-level view of the current business system landscape at PPPL is provided below. This high-level system landscape includes the business systems at PPPL and those surrounding systems that may be impacted by this project. The current surrounding systems that are not part of this scope will need to integrate with the proposed ERP SaaS Solution.

Exhibit #1 – Current PPPL Enterprise Application Landscape

▪ The system in yellow boxes above will be replaced by the ERP SaaS Solution.

▪ Microsoft Great Plains System core modules currently in-use are:

8|Page o Project Management, Budget Planning, Cost Accounting, Asset Management, Inventory (Stockroom, Spare Parts) Management, Procurement, Labor Cost Distribution, General Ledger, Accounts Payable, Accounts Receivable, and Shipping and Receiving.

1.2 Project Approach and Timeline

1.2.1 Project Governing Principles

PPPL has defined the following governing principles and requires the Supplier to provide support throughout the entire project team. The below principles are to be used when making solution implementation decisions for the proposed ERP SaaS Solution, and to identify and document issues when characteristics of the solution conflict with these principles.

▪ Reengineer business processes, information structure and related business rules. Modify current business processes to enable an efficient implementation and adoption of best practices. The project will pursue changes to policy, procedure, and organization in order to realize the solutions benefits.

▪ Standardize business processes, data and object naming convention and structure to facilitate better communication, and to simplify reporting and solution integration.

▪ Minimize customization. Use an out-of-box solution whenever possible and align business processes to the industry best practices as much as possible. This will minimize on-going maintenance cost, ensure a stable upgrade path, and allow for the integration of other modules in the future.

▪ Increase data accuracy with a single source of data entry and validation. Accounting information must be complete and traceable to tangible business events; maximizing data quality, increasing the transparency of accounting transactions and reducing the effort to control and audit these transactions.

▪ Interoperability over Integration by leveraging the solutions designed for interoperability, which is the ability of different programs to exchange data via a common set of business procedures or technical standards. At a minimum, it is required that the ERP and fit-for-purpose solutions have the ability to integrate with other applications, as required.

▪ Improve information accessibility. Easy access to extract and present information.

▪ Enforce process controls by incorporating best practices that increase accountability and standardizes the processes across the ERP SaaS Solution.

▪ Build a solid platform for future growth and evolution.

1.2.2 Project Timeline

To replace the existing functional ERP solution and any unnecessary disparate systems in one implementation process with a goal to roll-out at the start of a fiscal year (preferred - October 1, 2022). Alternate proposals will be considered only if the proposed solution substantially addresses the objectives of reducing risk, replacing any unnecessary disparate systems, and providing additional benefits to PPPL. The Supplier will propose an implementation approach, along with the reasoning and justifications or the benefits and risks associated with an alternative proposed approach. The soundness and the reasonableness of the proposed

9|Page approach and schedule are critical components of the response. The Supplier shall propose their implementation approach and timeline with the following items taken into consideration:

▪ PPPL’s fiscal year is October through September

▪ The benefits and implications of a Financials Go-Live date that coincides with the beginning of PPPL’s fiscal year (10/1/2022 preferred)

▪ If the proposed approach is phased, each phase should provide fully functioning capabilities (including reporting)

▪ PPPL will require a minimum two months before go-live parallel operations of the current Great Plains system and the new ERP SaaS Solution. Efforts for reducing double entries and data reconciliation between the two systems should be part of the proposed solution

1.3 Project Scope

1.3.1 Overview

The Supplier1 shall provide an ERP SaaS Solution, implementation support, post-production support and training as detailed in this Statement of Work.

The proposed ERP SaaS Solution must be able to meet the requirements identified in Section 5 “Requirements”.

1.3.2 Modules/Functions in Scope

The ERP SaaS Solution shall enable PPPL staff to perform the job functions associated with the following functional/service areas:

Table 1: Financial Management Service Area

Area ID Function Name Comments AM Asset Management Include active assets & excess property AP Payable Management BD Budget Planning & Execution GL General Accounting Include very limited Accounts

Receivable activities LA Labor Distribution CM Project Cost Management RPT Financial Reporting

Table 2: Procurement Management

Area ID Function Name

1 The Supplier is defined as the sole party to the contract with PPPL and the sole point of contact between PPPL and the Supplier, who is accountable and responsible for the successful integration of all Solution components being proposed by the Supplier.

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REQ Requisition Management PM Purchasing/Procurement Management PO Purchase Order Management PC Procurement Card (PCard) Management

Table 3: Material Service Area

Area ID Function Name IM Inventory (Stockroom & Spare Parts

Management)

SR Shipping & Receiving

It will be the Supplier's responsibility to match PPPL’s requirements with their delivered capabilities and propose the modules/functions required to support PPPL’s business requirements provided in Section 5 “Requirements” and in Appendices of this document.

1.3.3 Scope of Services

The supplier will provide an ERP SaaS Solution, support during the implementation process, and training to support the deployment of the new ERP SaaS Solution.

1.3.3.1 Implementation Preparation

Supplier shall support PPPL and the System Implementer to identify subject matter experts in each of the following areas: Finance, Supply Chain and Project Cost Accounting.

To include the following tasks:

▪ Update/finalize the business processes: Assist PPPL’s adoption of best business practices supported by the solutions capabilities.

▪ Simulate project costing/burdening processes: Demonstrate the project cost burdening process ensuring that the new financial data structure can fully support the project cost burdening process.

▪ Estimate PPPL’s effort for data extraction and conversion: Work with PPPL’s project team to create a data migration strategy, which includes, but is not limited to, defining data migration scope, migration methodology and modules, determining roles and responsibilities of PPPL and the Supplier, and estimating PPPL’s efforts for data migration.

▪ PPPL core team training: Submit a training plan as part of the response and provide PPPL core team members with functional and technical training via existing online courses or via instructor led classes (including any manuals) before the implementation project starts officially. Supplier’s training plan should include how the supplier will partner with PPPL and/or system integrator to lead or support end-user training programs, and to provide a value-added User Group Community or collaborative platform that will guide the future direction of the Offeror's offerings and allow PPPL the opportunity to interact with other customers.

▪ Draft Project Management Plan: Work with PPPL’s Senior Project Manager to review and finalize the project management plan.

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1.3.3.2 Implementation Support

The Supplier shall support the System Implementer in the following tasks which include, but are not limited to, project management, gap analysis, Conference Room Pilot (CRP)/Prototyping, design, build, testing, training, data conversion, cutover, and post go-live support.

▪ Design/Build/Configuration: The Supplier shall support the System Implementer performing system design, system configuration, bug fixing, and development of the solution. The Supplier shall support the joint team consisting of their experts, system implementer, and PPPL staff at the Lab in developing a solution that appropriately meets PPPL requirements.

▪ Testing: The Supplier shall support the testing of the solution. Testing shall include, but not be limited to the following tests: unit, system, integration, security, parallel and user acceptance.

▪ Training: The Supplier will develop a comprehensive training plan that will: identify the training needs of the solution’s end-users; organize the application processes into a course structure, including course selections; develop the training materials needed to deliver the course specifications; and, determine the facility requirements necessary to support delivery of the training to all end-users.

▪ System rollout and go-live support: Supplier will support and review the System Implementer’s strategy and plan for the transition of the system from development to the production environment.

The Supplier shall be responsible for executing all cut-over activities, setting up production environment, migration to the production environment, and migration of historical data.

▪ Knowledge transfer to PPPL Project Team: Supplier is to provide the knowledge transfer to PPPL to enable them to properly support the operation and continuous improvement of the ERP SaaS Solution with limited support of external consultants.

1.3.3.3 Ongoing Service

The Supplier shall provide site-wide SaaS software subscriptions for the Solution’s capabilities.

The purchase of the Solution subscriptions shall include the following at a minimum:

Hosted services including

▪ Software and Data Environments o Production, Testing, Development, and any other environments of the Solution required to successfully deploy the capabilities purchased, required systems integrations, routine data refreshment for non-production environments and security requirements

▪ System Access o Administrative access to all of the Solutions functionality for the specific capabilities purchased including access to PPPL databases, business data, system integration processing and system logs. This includes access to the databases for reporting and troubleshooting

▪ Storage o Storage of all data input and managed in the Solution’s software modules. The data storage should include storage of native transactional information associated with

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Finance and Supply Chain solutions and include the ability to store attachments such as PDF, Microsoft Word and Excel documents, and other file formats

▪ Backup and Recovery o RAID redundancy configuration o 24-hours a day, 7-days a week disaster recovery and business continuity, Recovery

Time Objective (RTO) of 12 hours and Recovery Point Objective (RPO) of 1 hour o Automated daily system backup of Production, Testing, and Development and any other PPPL environments. Per PPPL procedures for data archives for production solution must be retained for no less than 8 calendars days, and non-production (Test, Development, etc.) solutions should be kept for no less than 10 calendars days. Once specified periods have expired, the backups must be destroyed

▪ Software Upgrades and Patches o Automated solution upgrades and patching of servers and databases, including advanced notification to the PPPL system administrator regarding all upgrades that will occur with options for opt-out or delay o Identification and correction of system defects as defined in the SLA (Service Level Agreement)

▪ Performance o 99%+ System uptime for Production, Testing, and Development environments o Performance monitoring tool

▪ Scalability o Adapt to a larger user base than originally intended

▪ Security Compliance o System security must comply with FedRAMP Moderate Impact System Authorization or NIST SP800-53 v4 standards at a minimum or as prescribed by PPPL Cyber Security requirements (Attachment 2- PPPL Detailed Technical and Support Requirements)

▪ Mobile Devices ready software o Mobile ready software solutions should include subscriptions that allow the Solutions functions on iOS and Android devices Training

▪ Provide classroom, remote, Learning Management System, and on-demand training for the specific capabilities purchased

▪ Provide online training materials and self-service support

▪ Provide Solution Fundamentals Training

▪ Solution Adoption Training

Support

▪ Premium Support services including 24-hours per day 7-days per week for any needed systems analysis, help-desk support, system upgrades, fixes, data recovery assistance, issue handling, configuration change, and enhancements to the installed items

▪ Escalation Procedures

▪ Dedicated Customer Success Manager

▪ Periodic Solution Reviews and system usage guidance

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▪ Solution-specific Release Update Information

▪ Delivery Assurance

▪ Refresh of non-production environment

▪ Regular reporting

2 APPLICABLE DOCUMENTS

Federal Information Security Management Act (FISMA) http://csrc.nist.gov/drivers/documents/FISMA-final.pdf

National Institute of Standards and Technology Special Publication SP 800-53R4 https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-53r4.pdf

Minimum Security Requirements for Federal Information and Information Systems https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.200.pdf

Security Requirements for Cryptographic Modules https://csrc.nist.gov/publications/detail/fips/140/2/final

PPPL Business Requirements documents, listed in Appendices 1 ~ 10.

3 APPLICABLE DRAWINGS

Not Applicable

4 RESPONSIBILITIES

4.1 Princeton Plasma Physics Laboratory (PPPL)

PPPL will have a dedicated Senior Project Manager to oversee all aspects of the project. The Senior Project Manager will be the main point of contact for all project-related communications and issues. Supporting the Senior Project Manager will be a full time Functional Lead, 2 full time Business Analysts, 1 full time Technical Lead, 2 full time Application Developers, and a team of PPPL Subject Matter Experts (SMEs) and other project support personnel. Please refer to section 13 ‘PPPL Staff Resources’ for details.

PPPL shall be responsible to:

▪ Provide the Supplier business processes within PPPL;

▪ Assist with identification of detailed requirements, as needed, to define configuration and customizations;

▪ Conduct parallel and user acceptance tests and provide results;

▪ Assist with coordinating training (for both staff and system administrators);

http://csrc.nist.gov/drivers/documents/FISMA-final.pdf http://csrc.nist.gov/publications/nistpubs/800-53-Rev3/sp800-53-rev3-%20final_updated-errata_05-01-2010.pdf https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.200.pdf https://csrc.nist.gov/publications/detail/fips/140/2/final

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▪ Assist with managing the project schedule; and,

▪ Provide project materials necessary to complete the requirements identified within the SOW.

4.2 Supplier

The Supplier is responsible for completing all activities associated with the tasks and deliverables outlined in the ‘5. REQUIREMENTS’ section of this SOW.

5 REQUIREMENTS

The Supplier shall propose an integrated ERP SaaS Solution, and provide qualified personnel to meet PPPL’s core requirements grouped in five (5) categories below:

1. Functional Requirements

2. Technical & Regulatory Requirements

3. Ongoing Service Requirements

4. Project Management Requirements

5. Training and Change Management

5.1 Functional Requirements

The section contains a high-level overview of the requirement details found in Attachment 1 - PPPL Functional Requirements. The Supplier will meet all functional requirements as defined in Attachment 1, Attachment 5

– PPPL Reporting Requirements and Attachment 9 – PPPL Supplier Qualifications and Reference Workbook.

*PPPL considers exchange of data and integration across business processes and modules to be an inherent capability of the ERP SaaS Solution and is, therefore, implied throughout this SOW.

5.1.1 General Accounting

General Accounting is the central support to PPPL’s business processes, and the centralized data input and access throughout the Lab.

The proposed solution must provide the framework to streamline business processes and integrate with other PPPL and Princeton University Systems. PPPL requires robust processes that will standardize and control financial transactions. Functionality such as commitment control, on-demand financial reporting and configurable burdening/allocation processes will be required to meet current and future regulatory requirements and growth.

The proposed solution must provide the following:

▪ A Chart of Account (COA) structure to support management of financial information for three (3) different constituents: Lab management, Princeton University, and DOE STARS. STARS is the DOE financial management system that is the foundation for financial accounting, financial reporting, cost accounting, and performance measurements.

▪ The flexibility to accommodate the changing demands for information from DOE or Princeton University, allowing for efficient and accurate extraction of appropriate data.

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▪ A flexible burdening process(es) that will apply cascading burdens in the appropriate order while offering the appropriate level of detail/visibility of costs to allow users to separate the direct cost from the associated burdens, concurrently maintaining a link between the direct cost and burdens.

▪ Budgetary control module that can actively manage budgets and control costs throughout the procure-to-pay and general accounting transaction lifecycle.

▪ A module to manage Accounts Receivable (AR) activities; although AR activities are limited.

Out of Scope: Implementation of multi-currency, translation ledger and consolidation will not be required for the ERP SaaS Solution.

5.1.2 Accounts Receivable

PPPL requires the Solution to support a standard Accounts Receivables processing such as billing, payment application and production of customer statements. The billing for the DOE is done by manual entry into the Federal government’s VIPERS system. Receivables are low in volume and are broken down into the following categories:

General category - Money owed to PPPL by government agencies other than the DOE. An example is money owed by the GSA for maintenance by PPPL of vehicles owned by GSA. In addition, money owed from sales of scrap and excess property; by Princeton University for stockroom withdrawals;

and payroll costs for labor provided by PPPL employees to Princeton University departments.

Pre-financing and reimbursement for Strategic Partnership Project (SPP) projects when the sponsor is not a Federal entity. PPPL requires a Solution that associates a project’s expenses with the project sponsor by setting up the sponsor as a customer.

DOE STARS use separate General Ledger Account values for receivables accounts for Other Federal Agencies, Non-Federal entities, and DOE.

A solution that can vary receivable account assignment by customer type according to the above three categories.

5.1.3 Budget Planning & Control

Budget Planning and Control are the required business processes for planning and pricing resources, recording grants received and/or funds authorizations (both values and terms), tracking and controlling costs within the budgeted amounts. The ERP SaaS Solution must address integration capabilities between budget planning, funding, budget and cost.

PPPL requires the following:

Project budget planning module to establish and maintain project budgets. The budget planning and control process requires the Planning and Control (P&C) officers to enumerate budget at a detail level by resource type, resource subtype, job function, FTE and project account. The costs are consolidated to show planned spending at multiple aggregation levels, including Work Breakdown Structure (WBS) (project and activities), cost categories, Budget and Reporting codes (Fund), and DOE program categories. The module will need to accept input at a detailed level and perform the necessary calculation, including real-time computation of allocated overhead to allow for reporting at both the

16|Page detail and summarized levels. The module will allow the users to create budgets based on actual or estimated costs.

Budgetary Control module that will enable PPPL to manage the budget proactively. This module must be fully integrated with all Financial and Procurement Management modules in the ERP SaaS Solution.

This must allow checks on actual transactions (such as actual expenditures and revenues) against budgets, record imminent future financial obligations (pre-encumbrances and encumbrances), apply recognized revenue to revenue estimate budgets, and issue alerts when the budget is near depletion.

5.1.4 Labor Distribution & Project Cost Management

Labor represents the largest area of PPPL’s costs, and accurate distribution of labor to the correct cost objective is a critical factor. PPPL staff are employees of Princeton University and funded primarily by the Department of Energy (DOE). Payroll processing is done through Princeton University’s PeopleSoft HR and Payroll system capturing information for Human Resources activities and payroll processing.

Princeton University’s Time and Absence system is used to:

Capture employee time and attendance information for non-exempt (biweekly/hourly) staff.

Track leave and absence for Exempt (monthly) staff.

Time entered for all monthly employees is currently captured in a customized module which directly pulls the data into the current ERP Solution. The costs are distributed based on standardized (i.e. average) labor rates such as by employee’s position and home department, or other means for all projects, except Strategic Partnership Projects (SPP) for which costs are distributed based on actual salary. The ERP SaaS Solution must:

Interface with Princeton University (PU) PeopleSoft HR, Time and Absence system and payroll system, and PPPL’s customized monthly timesheet system to obtain timesheet data needed for labor cost calculation and distribution.

Provide the capability to calculate and track both the actual cost and the standard cost and keep track of overall variances between the two costs so that labor rates can be adjusted.

Be capable of posting calculated labor cost (standard and actual) to an appropriate project account within the general ledger.

Allow to reconcile calculated payroll costs with the actual payroll costs from Princeton University each month.

Provide the ability to liquidate all costs (labor and non-labor), by charging them to projects funded by the Department of Energy (DOE) and other project sponsors.

Provide the ability to generate burdens and overhead cost based on user defined rules and rate sets.

Provide the ability to track the effectiveness of the cost liquidation process by comparing the non-project costs to the cost liquidation to determine if rate adjustments are needed.

Provide the ability to generate an invoice for the subcontracted personnel timesheet to the supplier.

The invoice, containing the actual hours that PPPL should be billed for, is reconciled to the paper invoice provided by the agency.

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Provide the ability to configure necessary rules for the ‘Project’ chart string.

5.1.5 Procurement Management

PPPL requires a purchasing module as described in Attachment 1 - PPPL Functional Requirements to manage the purchasing process for purchasing materials and services. To maintain information about the companies from which purchases / services are made. The ERP SaaS Solution will cover business processes, such as requisitions, sourcing, Purchase Orders (PO), change orders, PCard, and supplier management.

The ERP SaaS Solution must:

Provide a configurable requisition approval workflow where approvals are dependent upon items ordered, project account(s) charged, and requisition dollar amount.

Provide a configurable workflow for the Purchase Order Approval process for example, PO dollar amount is above the threshold or a change in the project account.

Provide budget checking to track pre-encumbrance and encumbrance commitments against projects accounts and issue alerts to the budget owners when the fund is below a configurable threshold. A requisition will increase pre-encumbrance and decrease budget, which a purchase order will increase encumbrance and decrease pre-encumbrance or budget.

Integrate with suppliers for purchase of commercial off-the-shelf (COTS) materials and services, so that a requisitioner may choose items for their shopping cart from a supplier’s catalog hosted by PPPL, or via punchout to a PPPL-specific catalog on the supplier’s site.

Allow a requisitioner to create a PCard PO after a requisition has been approved.

Provide a solution that will import supplier information from Princeton University’s PeopleSoft FSCM system and allow supplier updates. Princeton University (PU) processes all supplier payments for PPPL in its’ PeopleSoft FSCM system and PPPL needs to keep the supplier file in sync with PU’s supplier file. The solution will import supplier information from PU’s prime system via a nightly feed and allow users to update.

Provide the ability to import bank statements from PPPL’s procurement card issuer and provide reconciliation by each card holder of procurement card requisitions against the statement.

Provide configurable reporting, to obtain accurate information for different types of reporting requirements. Such as supplier performance reports, and configurable dashboards showing transaction processing summaries and status.

Out of Scope:

PPPL will NOT generate contract content from the ERP SaaS Solution, therefore there is not a need to build a content library of contract. PPPL will create the content of a contract offline and attach a copy of the contract to a PO or Procurement Contract in the solution.

PPPL will utilize PU’s web application that allows suppliers to manage their own business information and bid information and there is not a need to implement a supplier-facing module for supplier’s onboarding and bidding process.

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PPPL will utilize PU’s sourcing module, Jaggaer, to manage the sourcing process.

5.1.6 Accounts Payable

Accounts Payable (AP) is part of the full procure-to-pay process which is composed of the activities to manage the flow of data from requisition through payment to the supplier.

PPPL requires a solution that will interface with Princeton University (PU) PeopleSoft Accounts Payable system. The proposed solution will enable PPPL to import the supplier file from PU, send invoices to PU for payment processing, and receive a detailed payment file from PU by nightly batch processes. The solution will assign check numbers to each invoice based on the payment file, mark the invoice as paid, and generate accounting entries for the payment. The solution will enable PPPL to stop payments, reissue checks and generate accounting entries via the interface.

In addition, the proposed solution will enable automated approvals with configurable workflows, allow for two-way, three-way and four-way invoice matching, and provide the ability to upload 3rd party electronic invoices or produce electronic invoices from receipts matched to purchase orders. The solution will also provide the ability to associate bank accounts with DOE or Non-DOE funds and default the bank account for each invoice based on the project account, and process standard accounts payable transactions, such as credit memos, voids and manual pays.

PPPL does not process 1099 withholding within the AP system. Princeton University withholds tax and issues 1099 form to the supplier via their PeopleSoft AP system. PPPL sends PU a yearly 1099 file which lists suppliers qualified for 1099 form, along with their qualified invoices.

5.1.7 Asset Management

PPPL requires an Asset Management module that will enable PPPL to manage its assets in accordance with DOE requirements and regulations. The proposed solution shall integrate with procurement-to-pay processing, project costing, general ledger, Shipping Orders, Inventory Management, and allow for seamless tracking, monitoring, and reporting of assets whether capitalized or not, from funding to fabrication/purchase through disposition.

The solution shall support tracking the location and status of all property valued over ten thousand dollars, as well as assigning/maintaining a DOE asset type within each property, conducting periodic physical wall-to-wall and statistical sampling inventories for monitored assets, processing fabricated assets, tracking loaned assets and excess property, disposing assets, calculating depreciation and generating financial entries for the fixed assets.

When assets are shipped off-site, PPPL’s Shipping Order solution needs to integrate with Asset Management to provide changes for asset status. Similarly, when assets are received at PPPL, newly purchased assets need to be added to the solution and returned assets need to have their status updated.

Government regulations require that material identified as excess, no longer needed property, be disposed of according to a set procedure that includes formal approvals. Excess items may or may not be assets. PPPL

19|Page needs to track attributes of each excess item such a value, location, type of material, condition and eventual disposition. The solution shall enable PPPL to track these attributes and provide approval process for the disposition of each excess property.

PPPL employees at times wish to loan equipment to other research organizations. When a PPPL employee is located at the other research organization, the arrangement is considered to be property collaboration instead of a property loan. The DOE requires formal approval within PPPL and by the borrowing or collaborating organization before items can be sent off-site. The solution shall enable PPPL to track the details of Loan and Collaboration agreements and record the internal/external reviews.

5.1.8 Inventory Management

PPPL requires a solution that provides storage location and item definitions, inventory management, stock movement, inventory valuation, physical and statistical inventory counts.

PPPL maintains warehouses and a stockroom used to store material that employees may requisition for laboratory work. This material consists of stockroom supplies, equipment spare parts, administrative supplies and records, and equipment/supplies stored for future use in project experiments. Inventory of cylinders used for storage of gases such as helium must be tracked since PPPL is charged rental fees for the cylinders by the gas supplier. PPPL will cost its inventory on a First-In, First-Out (FIFO) costing basis.

Perpetual inventory counts and inventory value is kept for stockroom/spare part inventory. This inventory value is tracked within PPPL’s General Ledger financial record, except for those equipment’s reserved for the future experiments. Perpetual inventory counts and inventory values are maintained but has no effect upon the General Ledger financial records since the material has been already charged to a project account.

The DOE requires that financial reporting be done separately for Stores, Spares, Inventory Allowance, and precious metals. The DOE also requires that inventory expenses be reported per type such as stockroom withdrawals and inventory adjustments. To meet these DOE requirements, the proposed solution must provide flexibility for PPPL to specify accounts by items, item classes, and/or inventory transaction types.

PPPL needs a solution that will schedule continuing periodic physical inventory counts for stockroom inventory. PPPL also needs an alternative statistical sampling method of physical inventory where the solution shall randomly choose items to be counted. This is done for spare parts inventory. Count variances shall automatically generate journal entries to adjust inventory value.

Item catalogs for stockroom, spare parts and future project equipment need to be available for review on PPPL’s intranet. Employees need to review available inventory prior to requesting inventory withdrawals.

Withdrawals may be restricted to authorized employees depending upon the item. Equipment for future experiments may be withdrawn by a restricted list as well. Stockroom and spare part withdrawals are charged to the appropriate project account.

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5.1.9 Shipping & Receiving Management

PPPL requires a solution that allows employees to input requests to ship items into the solution; these requests are called shipping orders. These shipping orders require project accounts for cost distribution and Signature Authority approval as well as full descriptions of what is to be shipped, the destination, and the required date to be returned. PPPL needs to track these shipping orders within the solution. When an item is shipped back, Receiving needs to be able to identify the receipt as PPPL property previously shipped out and flag the shipping order as returned property. The solution needs to allow for identification of shipments that require that an Export Control form be filled out and approved.

The Shipping Orders Solution needs to integrate with other delivered capabilities, such as Asset Management (including excess property management), General Ledger, Procurement and Loans/Collaborations to process excess items, warranty replacements, loaned items, and other types of shipments.

PPPL’s receiving dock handles a wide variety of material ranging from office supplies to heavy equipment and hazardous materials. PPPL requires a solution that allows PPPL to receive goods/services and create receipts automatically from standard purchase orders, subcontracts, and PCard purchase. The solution shall also allow PPPL to create receipts manually for goods/services without any procurement agreements, such as property collaborations, and excess property reutilization. At PPPL, some Blanket Purchase Agreements (BPA) allow for a variable price, in this case the solution shall allow receiving personnel to input or update prices for a receipt.

The solution will notify Quality Assurance automatically when items marked as ‘inspection required’ arrive at the receiving dock. The solution will suspend processing the receipt for these “inspection required” items for a configurable number of days. For those items which failed inspection, the solution will enable PPPL to track and manage goods returned to suppliers for exchange or for credit.

5.2 Technical & Regulatory Requirements

This 'Technical Requirements' section will describe the technical requirements to be met by the Supplier in the fulfillment of this project, background information which is relevant to the topic, preferences of PPPL with regard to the nature of the work to be performed and a description of the information to be provided by the Supplier in their proposal. The section contains a high-level overview of the technical requirement details found in Attachment 2-PPPL Detailed Technical and Support Requirements and Attachment 8-PPPL Implementation and Support Requirements. The Supplier will meet all functional requirements as defined in Attachment 2 and Attachment 8.

The proposed solutions should be in compliance with the regulatory requirements identified below:

FedRAMP Moderate Impact System Authorization or an equivalent level of security for the technical environment that hosts the ERP SaaS Solution

FIPS 140-2

5.2.1 Access to PPPL Information Systems

(a) Definitions

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A “federal information system” is an information system used or operated by an executive agency, by a contractor of an executive agency, or by another organization on behalf of an executive agency.

An “information system” is a discrete set of information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information.

“Security controls” means the management, operational, and technical controls (i.e., safeguards or countermeasures) prescribed for an information system to protect the confidentiality, integrity, and availability of the system and its information.

(b) The Supplier shall comply with FedRAMP Moderate Impact System Authorization or NIST SP800-53 v4 standards at a minimum or as prescribed by PPPL Cyber Security requirements (Attachment 2- PPPL Detailed Technical and Support Requirements) .

5.2.2 Security Controls Compliance Testing

On a periodic basis, PPPL reserves the right to evaluate any or all the security controls and privacy practices implemented by the Supplier under the clauses contained within the contract. Within 10 working-days’ notice, at the request of the PPPL, the Supplier shall fully cooperate and assist in an PPPL-sponsored security controls assessment at each location wherein PPPL information is processed or stored, or information systems are developed, tested, operated, maintained, or used on behalf of PPPL. PPPL may also conduct a security control assessment on shorter notice (to include unannounced assessments) as determined by PPPL in the event of an incident or at any other time.

5.2.3 Cybersecurity Training

(a) All Supplier employees requiring access to PPPL information and PPPL information systems shall complete the following before being granted access to PPPL networks:

(1) Sign and acknowledge understanding of and responsibilities for compliance with the Rules of Behavior relating to access to PPPL information and information systems;

(2) Successfully complete PPPL Cyber Security Awareness training and annual refresher training as required;

(3) Successfully complete any additional cyber security or privacy training, as required for PPPL personnel with equivalent information system access [to be defined by the PPPL program official and provided to the Contracting Officer for inclusion in the solicitation document – e.g., any role-based information security training required in accordance with NIST Special Publication 800-16, Information Technology Security Training Requirements.]

(b) The Supplier shall provide to the COR and Contracting Officer a copy of the training certificates or other proof of training for each applicable employee within one week of the initiation of the contract and annually thereafter, as required. It is the Supplier's responsibility to ensure the Agency is notified of new staff at the lab members who require training. Notification should be made to the COR and Contracting Officer within 24 hours.

(c) Failure to complete any mandatory training within the required timeframes shall be grounds for suspension or termination of all physical and/or electronic access privileges and removal from work on the contract until such time as the training is completed.

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5.2.4 Service Organizational Control (SOC) Audits

Supplier must annually perform a SOC 1 Type 2 or SOC 2 Type 2 audit on itself and its System Implementers/ partners involved in this contract. A registered independent auditing firm in good standing with the Public Company Accounting Oversight Board will perform the audit. The Supplier will provide the:

(1) Auditor’s SOC Report

▪ Auditor’s scope

▪ Description of controls

▪ Testing results and opinion

▪ Any recommendations and any required planned or completed corrective actions;

(2) Supplier Corrective Actions (if applicable)

▪ Corrective action plans with committed delivery dates

▪ Evidence to support successful resolution of audit recommendations

5.2.5 Disaster Recovery and Business Continuity Plans

(a) The Supplier (and any supporting Suppliers) shall have a Business Continuity Management System (BCMS), including Information Technology Disaster Recovery Plans, that meets a business continuity industry professional standard (e.g., ISO 22301, NFPA…