RFP_23_01_UI.pdf

1 RFP-23-01-UI

RELEASE DATE: MARCH 10, 2023

The State of Hawaii Department of Labor and Industrial Relations

Request for Proposals

Solicitation #RFP-23-01-UI

Unemployment Insurance Modernization

OFFERS ARE DUE AT 4:00 PM, HAWAII STANDARD TIME (HST) ON

APRIL 28, 2023

(or such later date as may be established by the State of Hawaii by an Addendum to this RFP)

BY SUBMISSION TO THE STATE OF HAWAII EPROCUREMENT SYSTEM (HIEPRO)

DIRECT ALL QUESTIONS REGARDING THIS RFP, QUESTIONS OR ISSUES RELATING TO

THE ACCESSIBILITY OF THIS RFP (INCLUDING THE ATTACHMENTS AND EXHIBITS AND

ANY OTHER DOCUMENT RELATED TO THIS RFP) AND REQUESTS FOR

ACCOMMODATIONS FOR PERSONS WITH DISABILITIES IN CONNECTION WITH THIS RFP,

TO:

LIZABETH THOMAS

TELEPHONE (808) 586-9051 OR

EMAIL ADDRESS LIZABETH.THOMAS@HAWAII.GOV

Anne Perreira-Eustaquio Unemployment Insurance Administrator Department of Labor & Industrial Relations Unemployment Insurance Division https://stateofhawaii.na1.adobesign.com/verifier?tx=CBJCHBCAABAASr-6wzElmdXyOMAGjH7VSHrly25l2shn

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Table of Contents

Section 1: General Information ------------------------------------------------------------------------------ 6

1.1 Schedule and Significant Dates -------------------------------------------------------------------- 7

1.2 Purpose ------------------------------------------------------------------------------------------------- 7

1.3 Background ------------------------------------------------------------------------------------------- 8

1.4 Project Vision ----------------------------------------------------------------------------------------- 8

1.5 Multi-Party Relationship ---------------------------------------------------------------------------- 9

1.6 Contract Type ----------------------------------------------------------------------------------------- 9

1.7 Period of Performance ------------------------------------------------------------------------------- 9

1.8 Point of Contact ------------------------------------------------------------------------------------- 10

1.9 Definitions -------------------------------------------------------------------------------------------- 10

1.10 Software Development Business Preference ---------------------------------------------------- 10

1.11 Current System -------------------------------------------------------------------------------------- 10

1.12 Offeror Checklist ------------------------------------------------------------------------------------ 14

Section 2: Goals ---------------------------------------------------------------------------------------------- 17

Section 3: Objectives ---------------------------------------------------------------------------------------- 20

3.1 Service Availability --------------------------------------------------------------------------------- 20

3.2 Service Level Agreement -------------------------------------------------------------------------- 20

3.3 Network Performance ------------------------------------------------------------------------------ 21

3.4 Flexibility --------------------------------------------------------------------------------------------- 22

3.5 Security ----------------------------------------------------------------------------------------------- 22

3.6 Regulatory Compliance ---------------------------------------------------------------------------- 22

3.7 Hosting Options ------------------------------------------------------------------------------------- 23

3.8 Knowledge Transfer -------------------------------------------------------------------------------- 24

3.9 Enhanced End-User Training ---------------------------------------------------------------------- 24

3.10 Business Process Reengineering ------------------------------------------------------------------ 24

3.11 Data Cleansing and Conversion ------------------------------------------------------------------- 24

3.12 Continuity of Contractor Personnel --------------------------------------------------------------- 25

Section 4: Solicitation Information ------------------------------------------------------------------------ 26

4.1 Governing Laws and Regulations ----------------------------------------------------------------- 26

4.2 Electronic Procurement ----------------------------------------------------------------------------- 26

4.3 RFP Addenda ---------------------------------------------------------------------------------------- 26

4.4 Pre-Proposal Conference --------------------------------------------------------------------------- 27

4.5 Questions Regarding RFP Contents -------------------------------------------------------------- 27

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4.6 Electronic Submission of Questions -------------------------------------------------------------- 27

4.7 Proposal Due Date ---------------------------------------------------------------------------------- 28

4.8 Cancellation of Procurement and Proposal Rejection ------------------------------------------ 28

4.9 Firm Offers ------------------------------------------------------------------------------------------- 28

4.10 Right to Accept All or Portion of Proposal ------------------------------------------------------ 28

4.11 Ownership or Disposition of Proposals and other Materials Submitted --------------------- 28

4.12 Additional Information ----------------------------------------------------------------------------- 28

Section 5: Requirements ------------------------------------------------------------------------------------- 29

5.1 Compliance with Laws ----------------------------------------------------------------------------- 29

5.2 Minimum Requirements and Qualifications----------------------------------------------------- 29

5.3 Contractor Responsibility for Subcontractors --------------------------------------------------- 29

5.4 Removal of Subcontractors ------------------------------------------------------------------------ 29

5.5 Right to Retain Subcontractors -------------------------------------------------------------------- 30

5.6 Additional Contractor Requirements ------------------------------------------------------------- 30

5.7 DLIR Project Staffing ------------------------------------------------------------------------------ 30

5.8 Payment ----------------------------------------------------------------------------------------------- 31

5.9 Payment to Hawaii Information Consortium, LLC dba NIC Hawaii ------------------------ 31

5.10 Required Review - ETS Governance and Standards ------------------------------------------- 31

5.11 Offeror Teams --------------------------------------------------------------------------------------- 32

Section 6: Instructions to Offerors – Proposal Submission -------------------------------------------- 33

6.1 Proposal Objectives --------------------------------------------------------------------------------- 33

6.2 Proposal Structure and Labeling ------------------------------------------------------------------ 33

6.3 Proposal Submission Instructions ----------------------------------------------------------------- 33

6.4 Electronic Submission of Proposals -------------------------------------------------------------- 33

6.5 Required Format and Content --------------------------------------------------------------------- 34

6.5 Each Offeror to Bear its Own Costs -------------------------------------------------------------- 35

Section 7: Evaluation and Award -------------------------------------------------------------------------- 36

7.1 Evaluation of Proposals ---------------------------------------------------------------------------- 36

7.2 Right to Waive Minor Irregularities -------------------------------------------------------------- 36

7.3 Initial Review and Award without Discussions ------------------------------------------------- 36

7.4 Discussion with Priority Listed Offerors -------------------------------------------------------- 36

7.5 Best and Final Offers ------------------------------------------------------------------------------- 37

7.6 Award of Contract ----------------------------------------------------------------------------------- 37

7.7 Debriefing -------------------------------------------------------------------------------------------- 37

Section 8: Evaluation Criteria and Scoring --------------------------------------------------------------- 38

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8.1 Evaluation Criteria and Scoring ------------------------------------------------------------------- 38

8.2 Notice of Award ------------------------------------------------------------------------------------- 60

8.3 Debriefing -------------------------------------------------------------------------------------------- 60

Section 9: Contract Management -------------------------------------------------------------------------- 61

9.1 Post-Award Communications: Contract Administrator ---------------------------------------- 61

9.2 Contractor/State Meetings ------------------------------------------------------------------------- 61

9.3 Dispute Process and Escalation ------------------------------------------------------------------- 61

9.4 Quality Control -------------------------------------------------------------------------------------- 61

9.5 Post Award Deliverables --------------------------------------------------------------------------- 62

Section 10: Special Provisions ----------------------------------------------------------------------------- 63

10.1 Scope -------------------------------------------------------------------------------------------------- 63

10.2 Intellectual Property Rights ------------------------------------------------------------------------ 64

10.3 Warranty ---------------------------------------------------------------------------------------------- 64

10.4 Termination for Convenience or Unavailability of Funds ------------------------------------- 64

10.5 Preferences ------------------------------------------------------------------------------------------- 64

10.6 Certification of Offeror Concerning Wages, Hours, and Working Condition of Employees Supplying Services ------------------------------------------------------------------------------------------- 67

10.7 Responsibility of Offerors ------------------------------------------------------------------------- 68

10.8 Proposal Preparation -------------------------------------------------------------------------------- 71

10.9 Confidentiality --------------------------------------------------------------------------------------- 72

10.10 Redaction by the State ------------------------------------------------------------------------------ 73

10.11 Protest Procedures ----------------------------------------------------------------------------------- 73

10.12 Notice to Proceed ------------------------------------------------------------------------------------ 73

10.13 Contract Execution ---------------------------------------------------------------------------------- 73

10.14 Liability Insurance ---------------------------------------------------------------------------------- 74

10.15 Contract Invalidation ------------------------------------------------------------------------------- 76

10.16 Mistakes in Proposals ------------------------------------------------------------------------------- 76

10.17 Modification Prior to Submittal Deadline or Withdrawal of Offers ------------------------- 77

10.18 Contract Changes – Unanticipated Amendments ----------------------------------------------- 77

10.19 Re-execution of Work ------------------------------------------------------------------------------ 77

10.20 Constraints ------------------------------------------------------------------------------------------- 77

10.21 Assumptions ----------------------------------------------------------------------------------------- 78

10.22 Risks --------------------------------------------------------------------------------------------------- 78

10.23 Project Management Practices -------------------------------------------------------------------- 79

10.24 Change Control Process ---------------------------------------------------------------------------- 79

10.25 Requirements and Design Finalization ----------------------------------------------------------- 80

10.26 Comprehensive Testing ---------------------------------------------------------------------------- 82

10.27 User Acceptance Testing (UAT) Entry and Exit Criteria ------------------------------------- 84

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10.28 Duration of Contract Services --------------------------------------------------------------------- 87

10.29 End of Contract Services --------------------------------------------------------------------------- 87

10.30 Annual Software Maintenance and Support Subscription ------------------------------------- 89

10.31 Deployment Planning and Execution ------------------------------------------------------------- 92

10.32 Data Conversion and Data Cleanse --------------------------------------------------------------- 93

10.33 Demonstrations, Education & Awareness ------------------------------------------------------- 94

10.34 Software Escrow------------------------------------------------------------------------------------- 95

ATTACHMENTS

Attachment A – Service Level Agreements Attachment B – Proposed Project Organization and Staffing Attachment C – Glossary of Terms and Abbreviations Attachment D – Relationship Management Attachment E – Deliverables Attachment F – Website Language Access Guide 508

EXHIBITS

Exhibit 1 - General Provisions for Goods and Services Exhibit 2 - State Attorney General (AG) General Conditions Exhibit 3 - Supplemental General Conditions

OFFER FORMS (OF)

OF-1 Offer Form OF-2 Offeror Entity Reference Questionnaire OF-3 Proposed Staff Resume OF-4 Requirements Traceability Matrix OF-5 Cost Proposal Form OF-6 Level of Customization OF-7 Service Level Agreement Requirements OF-8 Ongoing Services Requirements OF-9 Implementation Services Requirements OF-10 List of Exception of Terms OF-11 Confidential Information OF-12 Proposed Project Organization and Staffing

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Section 1: General Information

RFP Title: Unemployment Insurance Modernization Project

RFP Project Description:

(See Section 1.2 Purpose)

The State of Hawaii, Department of Labor and Industrial Relations (DLIR) is seeking proposals from qualified contractors to provide Unemployment Insurance (UI) system modernization software and implementation services as described in this RFP, Implementation Services Requirements, Ongoing Services Requirements, and other attachments.

RFP Point of Contact:

(See Section 1.8 Point of Contact)

Contract Administrator – Lizabeth Thomas Agency Name – Department of Labor and Industrial Relations Agency Address – 830 Punchbowl, Room 325 Honolulu, HI 96813 Email – Lizabeth.thomas@hawaii.gov Email is preferred Phone – (808) 586-9051

Submit proposals electronically via Hawaii Electronic Procurement System (HIePRO):

(See Section 4.6 Electronic Submission of Proposals)

Electronic Submission https://hiepro.ehawaii.gov/

Pre-Proposal Conference:

Pre-Proposal Conference Location:

(See Section 4.4 Pre-Proposal Conference)

March 17, 2023; 10:00 A.M. Hawaii Standard Time (HST)

Pre-Proposal conference will be conducted via the Teams application.

Deadline for Submission of Written Questions:

(See Sections 1.1 Schedule and Significant Dates and 4.6 Electronic Submission of Questions)

March 31, 2023; 4:00 P.M. Hawaii Standard Time (HST) via HIEPRO

State’s Response to Written Questions (Sections 1.1 Schedule and Significant Dates and 4.6 Electronic Submission of Questions)

April 14, 2023. All answers will be posted to

HIEPRO.

Deadline for Submission of Proposals electronically via Hawaii Electronic Procurement System

(HIEPRO):

(See Section 4.2 Electronic Procurement)

April 28, 2023; 4:00 P.M. Hawaii Standard Time (HST) Electronic Submission via hiepro.ehawaii.gov

File size limit = 100MB. Submit multiple files, if desired.

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Initial Term of Contract and Renewals:

(See Section 1.7 Period of Performance)

Implementation max three (3) years plus five

(5) years M&O. DLIR may, in its sole discretion, unilaterally extend the M&O portion of contract. Contractor shall not increase its pricing in excess of the percentage increase described in the contract.

NOTE: THERE IS NO FEE TO REGISTER IN HIEPRO OR TO SUBMIT AN OFFER. THE

AWARDED CONTRACTOR SHALL BE SUBJECT TO A ONE-TIME HIEPRO FEE OF .75%

OF THE AWARD AMOUNT OF $5,000.00, WHICHEVER IS LESS, PAYABLE TO HAWAII

INFORMATION CONSORTIUM, LLC (Hie).

1.1 Schedule and Significant Dates

The table below contains the State’s current estimate of the schedule and significant dates. All times are Hawaii Standard Time (HST). If a component of this schedule, such as "Proposals Due Date and Time" is delayed, the rest of the schedule may likely be shifted by the same number of days. Any change to the RFP Schedule and Significant Dates prior to the proposal due date shall be issued by addendum.

Event Date

Solicitation Release March 10, 2023

Pre-Proposal Conference March 17, 2023; 10:00 A.M. HST via Teams

Written Question Submittal Deadline March 31, 2023; 4:00 P.M. HST

State’s Response to Written Questions April 14, 2023

Proposal Due Date and Time April 28; 4:00 P.M. HST

Evaluation Period May 1, 2023 – June 9, 2023

Notification to Offerors Moving Forward to

Round 2 of the Evaluation Process

June 9, 2023

Offeror Demonstrations June 19, 2023 – July 15, 2023

On-Site at the DLIR Offices only.

Estimated Due Date for BAFO, if necessary August 25, 2023; 4:00 P.M. HST

Anticipated Award Date: September 22, 2023

Anticipated Contract Start Date November 1, 2023

1.2 Purpose

The State of Hawaii, Department of Labor and Industrial Relations (DLIR), Unemployment Insurance Division (UID) is seeking proposals from qualified offerors to provide Unemployment Insurance system modernization software and implementation, 8 RFP-23-01-UI and ongoing services as described in this RFP.

DLIR intends to award one (1) contract in conjunction with this Request for Proposals (RFP), as determined in the best interests of the State. The resulting hosting and maintenance support contract is expected to be for an initial five-year contract term, with an option to extend for an additional five-year term, subject to approval. Based on funding and other considerations, it is paramount that, the complete System solution be deployed and operational within three (3) years of the contract date.

Major application-level scope categories include Benefits, Appeals, Tax, Reporting, System, Security, Limited English Proficiency (LEP), Labor Market Information (LMI), Financial-Research and Analysis.

1.3 Background

The DLIR’s Vision & Mission:

Provide economic security by:

“Doing what is right for all of our customers” To Protect … the rights of claimants and employers; and To Preserve … the integrity of the UI Program; and To Provide … quality service to our customers

The DLIR is comprised of business units working together to connect people to jobs, resources, monetary benefits, workplace protections, and labor market information to promote financial independence, workplace justice, and a strong economy.

The Unemployment Insurance Program is a major cornerstone of a states’ economic system and exists to provide an economic safety net in the form of temporary income replacement to workers who have lost their job through no fault of their own.

1.4 Project Vision

The need to modernize the UID systems was brought to the forefront during the recent national health emergency. The Department leadership intends to leverage the atmosphere of change and improvement inspired by the pandemic response and the associated time limited resource expansion to address modernization across the Division.

This will be done using an enterprise approach led by UID.

Complimentary to the requirements gathering, an exercise to identify the DLIR’s vision-wide measurable benefits from the UID systems modernization and business transformation including but not limited to:

Maximize the automation of processes with the option to override.

Advanced processing and integration of all UI processes, workflows and output.

Provide robust analytics/data collection for ease of use.

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Provide streamlined data sharing processes catering to all data sharing agreements.

Ability to go paperless.

Reinvent and transform the front-facing customer experience, emphasizing plain language, and user experience principles.

Fully integrated processes with 2nd and 3rd party systems

UI sections, UI units, ESARO DLIR Divisions Other state Agencies Federal Agencies

Promote the ease of substitution of any 2nd and 3rd party systems.

Easy integration with new programs, systems, etc.

Improvements in processes, staff productivity, and efficiency that yield increases in the handling of all claims.

Improvements for computer system efficiency and scalability.

Decreases in system training time including easily updated training aids.

Decreasing fraudulent and unworkable claims.

Equitable access for all.

Enhanced ability to produce and analyze business information.

Improved Customer service and satisfaction.

Improved Worker satisfaction and accountability.

Streamlined administration of system maintenance and operations.

1.5 Multi-Party Relationship

All Offerors must understand and acknowledge DLIR will engage an Independent Verification and Validation (IV&V) Contractor to assist with oversight of the UI Modernization System.

The IV&V Contractor will help DLIR determine whether the plans, methods, and products delivered fulfill the defined requirements. The IV&V Contractor will also examine project artifacts to determine whether all requirements have been met. The IV&V Contractor will help DLIR determine whether the plans, methods, and products delivered fulfill the defined requirements. The IV&V Contractor will also examine project artifacts to determine whether all requirements have been met.

1.6 Contract Type

The contract type shall be Firm Fixed-Price pursuant to HAR 3-122-136.

1.7 Period of Performance

The period of performance of any contract resulting from this RFP is tentatively scheduled to begin on November 1, 2023, See Schedule and Significant Dates Section 1.1, with an estimated launch of the modernized system into production within three years of the contract start date.

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The system hosting and maintenance will commence once the system is in production for a period of five (5) years. The State reserves the right to annually extend the web hosting and maintenance support services for a period up to five consecutive twelve-month periods subject to the availability of funds, the Contractor’s satisfactory performance, and a mutually agreeable price.

1.8 Point of Contact

The Department of Labor and Industrial Relations is the issuing office for this document and all subsequent addenda relating to it. The reference number for the transaction is Solicitation # RFP-23-01-UI. This number must be referred to on all proposals, correspondence, and documentation relating to the RFP.

The person identified below is the single point of contact (POC) during this procurement process. Offerors and interested persons shall direct to the POC all questions concerning the procurement process, technical requirements of this RFP, contractual requirements, changes, clarifications, and protests, the award process, and any other questions that may arise related to this solicitation and the resulting contract. The POC designated by the State of Hawaii, Department of Labor and Industrial Relations is:

Lizabeth Thomas RFP Contact Person, Contract Administrator, and Project Manager State of Hawaii Department of Labor and Industrial Relations 830 Punchbowl, Honolulu, HI 96813 lizabeth.thomas@hawaii.gov Phone: (808) 586-9051

1.9 Definitions

Refer to Attachment C - Glossary of Terms and Abbreviations.

1.10 Software Development Business Preference

A price preference shall be given to qualifying Hawaii software development businesses.

For purposes of determining price only, offers received from all other Offerors shall be increased by ten per cent. Offerors seeking a preference must be certified in accordance with HAR section 3-124-33.

The contract amount of any contract awarded shall be the original offer price.

1.11 Current System

Integrated Database and other Automated Systems – UID currently operates systems that manage client and employer data to facilitate payment of claims, assure employer compliance with State and Federal labor laws and communications with external organizations and perform other federally mandated activities. These functions will be

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incorporated into the new solution and requires careful coordination and integration during the transition.

When the new solution has been fully implemented, the legacy system(s) will be retired.

The Implementation Contractor is responsible for maintaining the new system.

ETS and third-party Contractors currently provide the network infrastructure, security, and processing services for UID. Implementation of the new solution will change processing and network infrastructure requirements. The magnitude of these changes must be analyzed and fully understood as the project moves forward.

The DLIR UI uses multiple systems to support workflows and processes of managing unemployment claims intake, benefits, claim processing, employer registration and processing, contributions collection and management, claimant and employer financial management, and accounting management. To accomplish its mission of administering the UI program for the state of Hawaii DLIR UI relies on several technical components that support its processes and workflows. Following are technical components of the current UI system:

Adabas database system hosted on the Mainframe that serves as the core of the ecosystem. UI Staff uses CICS transactions screens for data viewing and data entry.

Software libraries (L1P – Benefits, L1Z – Tax, L1Q – Quarterly Wages) mostly written in Adabas Natural language with some code written in COBOL.

A set of batch jobs managed with JCL that run nightly, weekly, monthly, yearly, or on demand to validate, transform data and produce required reports that are stored on FTP servers or as printed documents. Printed report data can be entered into custom Excel workbooks, processed, and submitted online into DOL system.

Data between Mainframe and other systems sent/received through SFTP server (Axway).

Shared disk pack is a Mainframe storage where access is shared by multiple state agencies.

External systems can access Mainframe data:

o using Adabas SQL Gateway – SQL server replica of the Adabas database.

o using User Views exported from Mainframe and imported to the appropriate CONNX Data Dictionary where it converted into a relation DB format.

Several web-based applications provide user interfaces for claimants, employers, and staff. These systems use MS SQL Server databases as data stores. They collect data from claimants and employers, transform this data and prepare for ingest into Mainframe using batch jobs or updating of Mainframe terminal screens directly.

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Figure 1 – Current System

CICS JCL

L1P

L1Z

L1Q

MAINFRAME

Adabas

Adabas SQL Gateway

Shared disk pack

Axway

External Interfaces

Employer Portal Claimant PortalClaimant Portal

DATAHOUSE HOSTED SYSTEMS

publicDLIR Staff

DLIR ETS

Staff Terminals

Current System Inefficiencies

Outdated User Experience: The mainframe User Experience involves memorizing codes, keystroke sequences and patterns. This can be difficult to train and can have errors inherent in the process. A more modern user experience emulates the web sites that staff use on a day-to-day basis, including validation, error checking and pattern matching such as dropdowns and type-ahead fields.

Outdated Customer Experience: Limited self-service capability for claimants. There is currently no functionality to allow for claimants to view Issues and submit information to DLIR staff via online forms.

Increasing difficulties of operating a mainframe system: In the future, costs associated with the mainframe will be increasing for DLIR due to:

o Increased cost from mainframe application hosting. This cost will be a variable cost that will be based upon the volume of processing, which will make it almost impossible to predetermine an expected spend budget

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o Aging of the mainframe application support workforce. Many of the mainframe programmers and support personnel are leaving the job market for retirement, replacing them will be very difficult. Mainframe programming/support is considered legacy work; these skills are not currently taught in schools and have not been for many years. There is not a large pool of skilled technicians to operate on the mainframe anymore. This fact creates an unacceptable risk for the Department.

This also circles back to cost of ownership, being legacy programmers will cost more than basic programmers.

Difficulty handling complex Federal programs (e.g., extensions): Extensions have been a critical pain-point for DLIR. The logic to accommodate Federal rules regarding UI extensions is very complex and not easily implemented in the mainframe system. This has caused a great deal of stress throughout the Department during the last recession and the pandemic. To fulfill DLIR’s mission and serve the citizens and employers of the state efficiently, the Department must ensure that the Department is able to process any new extensions in a timely manner.

Staff inefficiency: Lack of automation means that more staff hours are required to accomplish tasks that would not be required if the software automated the processes.

Lack of accuracy in Federal Reporting: Federal Reporting, including data validation, is more accurate in a modern system with multiple data integrity checks, as well as the ability to snapshot databases at a point in time. These key features provide better, more accurate and reproducible reporting to federal agencies. Delivering reporting that is more comprehensive and accurate creates more confidence in the software and personnel.

USDOL Performance Measures: The current system’s material weaknesses in the areas of scalability, flexibility, extendibility, reporting, workflows, and analytics impact quarterly performance measures in the areas of Benefits, Tax, Appeals, Integrity, BAM, and GPRA.

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1.12 Offeror Checklist

Offeror must address ALL sections and attachments and provide the information and documentation as required in the table below.

No. Description Reference in RFP Completed

1 Offeror Checklist – submittal of checklist with all items checked “completed.”

Offeror Checklist

2 Offer Form OF-1 - Completed and signed.

NOTE: Ensure the company name submitted in HIePRO matches the company name on OF-1.

Section 10.8 Proposal Preparation

AND

Offeror Form OF-1

3 Table of Contents Section 6.5 Required Format and Content

4 Executive Summary Section 8.0 Evaluation Criteria 1

5 Disclosure Section 8.0 Evaluation Criteria 2

6 Financials Section 8.0 Evaluation Criteria 3

7 Staffing Plan Section 8.0 Evaluation Criteria 4

AND

Offeror Form OF-12 – Proposed Project Organization and Staffing

8 Offeror References and Key Personnel Section 8.0 Evaluation Criteria 5

Offeror Form OF-2 Offeror Entity Reference Questionnaire

AND

Offeror Form OF-3 Proposed Staff Resume Template

9 Implementation Plan Section 8.0 Evaluation Criteria 6

10 Project Plan Section 8.0 Evaluation Criteria 7

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11 Preliminary Functional Requirements Section 8.0 Evaluation Criteria 8

AND

Offeror Form OF-4 Requirements Traceability Matrix

12 Preliminary Technical Requirements Section 8.0 Evaluation Criteria 9

Offeror Form OF-4 Requirements Traceability Matrix

Offeror Form OF-6 Level of Customization

13 Testing Plan Section 8.0 Evaluation Criteria 10

14 Training Plan Section 8.0 Evaluation Criteria 11

15 Implementation Costs Section 8.0 Evaluation Criteria 12

Offeror Form OF-5 Cost Proposal Form

16 O&M Costs Section 8.0 Evaluation Criteria 13

Offeror Form OF-5 Cost Proposal Form

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17 Ongoing Services Section 8.0 Evaluation Criteria 14

AND

Offeror Form OF-7 Service Level Agreement Requirements

AND

Offeror Form OF-8 Ongoing Services Requirements

AND

Offeror Form OF-9 Implementation Service Requirements

18 Organizational Change Management Plan (OCM)

Section 8.0 Evaluation Criteria 15

19 Data Conversion Strategy Section 8.0 Evaluation Criteria 21

20 Certification - As Applicable Section 10.5 Preferences

AND

Section 10.6 Certification of Offeror Concerning Wages, Hours and Working Condition of Employees Supplying Services

21 A List of Exceptions to Terms Offeror Form OF-10 List of Exceptions of Terms

22 Identification of Confidential Information, if applicable

Section 10.9

AND

Offeror Form OF-11 Confidential Information

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Section 2: Goals

The project’s goals include, but are not limited to:

Improve System Security and Reduce Fraud Enhance our ability to anticipate and respond to data security threats and manage access.

Objectives:

Enhance capability and resiliency with real-time security monitoring.

Integrate highly effective fraud models to detect and reduce payments to fraudulent claims.

Enhance access control administration.

Implement fulling comprehensive audit logging.

Supporting Performance Metrics:

Reduce security related audit findings and incidents.

Utilize principal of least privilege for access.

Decrease time to process access requests.

Reduce improper payments to fraudulent actors.

Deliver a Better Customer Experience Transform the business and leverage technology to deliver industry leading performance.

Objectives:

Enable ability to measure customer satisfaction with each customer engagement.

Improve customer satisfaction.

Extend access through mobile applications.

Provide timely and accurate data for customers.

Streamline service delivery with our partners.

Supporting Performance Metrics – Tax:

Increase number of employers utilizing online reporting and payment methods.

Decrease time for status and charging determinations and protests.

Decrease time to respond to employer (stakeholder) requests.

Supporting Performance Metrics – Benefits:

Decrease average time for claims, adjudication, and appeals processes while maintaining high quality.

Ensure equitable access and outcomes for all program participants regardless of background, ethnicity, or educational background.

Decrease improper payment rate.

Improve overall program performance in accordance with Federal Performance

Measures.

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Supporting Performance Metrics – Appeals:

Increase customer usage of online appeals process/self-service options.

Decrease time for appeal files to be created and ready for scheduling.

Decrease time for appeal decisions to be implemented (benefits paid or stopped as applicable, per the appeal decision) Improve and maintain overall appeals performance according to appeals-specific federal performance measures.

Improve Employee Experience and Transform Business Processes Leverage best in class business processes and technology to implement improved and more efficient business processes, deliver new capabilities to our employees, and support a more efficient customer experience.

Objectives:

Improve outcomes and performance for state, federal, and internal key performance outcomes.

Eliminate manual processes and excessive screen navigation.

Automating repeatable processes that do not require human judgement.

Meet or exceed business requirements.

Compliance with all current Federal initiatives.

Improve state, federal, and internal performance metrics.

Reduce manual processes as well as internal and external system workarounds.

Reduce paper-based transactions.

Increase the number of automated processes.

Leverage Real-Time Insights

Enable business resources to generate ad-hoc reporting.

Increase visibility to emerging threats and or performance metrics deviating from performance targets.

Automate reporting to reduce dependency on IT resources.

Identify and prevent fraud before payments are released.

Increase the number of automated processes.

Reduce time to respond to operational challenges and transform business processes.

Enhance transparency to the Division’s work, providing claimants and employers real-time access to claim and transaction status.

Enable Capability to Adapt to Changing Economic Conditions – Deliver a system capable of supporting new programs and functionality needs.

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Deliver a flexible and sustainable system to include adding new federal and state programs.

Leverage the cloud to enhance the ability to scale computing resources up and down rapidly and significantly.

Replace and decommission legacy systems.

Automate data exchange with state and federal partners wherever possible.

Fully document system interfaces and data exchanges.

Complimentary to UID requirements, an exercise to identify Department wide benefits from UID’s modernization and business transformation will be developed and will include, but is not limited to the following:

Improvements in processes, staff productivity, and efficiency that yield increases in the handling of all claims.

Improvements in computer system efficiency and scalability.

Decreases in system training time.

Decreases in fraudulent and unworkable claims.

Enhanced ability to produce and analyze business information.

Improvements in customer service and satisfaction.

Improvements in worker satisfaction and accountability.

Streamlined administration of system maintenance and operations.

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Section 3: Objectives

The project goals, as stated above, are consistent with the objectives of the organization in providing a robust, automated support system which is technically aligned with Hawaii’s standards and certified by the federal government. Implementing this user-friendly system will enable support of daily operations with online real-time data updates, improve management and operational analysis capabilities, in addition to other data share partners.

Furthermore, the new solution makes it easier to respond to changing State and Federal requirements.

The implementation of the new solutions will impact several stakeholder agencies. These range in scope from changes in business processes to the establishment of new interfaces to support the UID operations. Working collaboratively to ensure that Subject Matter Experts are available to support requirements definition, joint application development sessions, testing, and conversion efforts will be imperative to the success of the project.

Furthermore, Stakeholder participation in validating deliverables, as appropriate, throughout the lifecycle to ensure the system meets DLIR requirements is required. The UID Project Team will work diligently with the Implementation Vendor to ensure resource time is allocated to the project in the most efficient and effective manner.

The primary stakeholder groups are listed below:

DLIR Staff Claimants and Their Legal Representative (if applicable) Employers and Their Agents (if applicable) Other State Agencies Federal Agencies

3.1 Service Availability

The State requires an UI system using software that will be deployed with as little customization as possible. Techniques to avoid customization should include, among other things:

A highly configurable Unemployment Insurance system using standard configuration parameters.

Reengineering the State's business processes to effectively use the process models inherent in the Unemployment Insurance system.

Using third-party software (that is not part of the UI software suite) only when necessary and cost justified.

3.2 Service Level Agreement

In addition to typical service level agreement requirements used in RFPs such as this one, including system availability, response time, recovery time, incident response time, and

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incident resolution time, service level requirement goals for this RFP also require resources, such as personnel, be deployed in the State of Hawaii to ensure that consistent levels of service are delivered to the State's jurisdictions, departments, and business operations. See Attachment A - Service Level Agreements.

3.3 Network Performance

Access to the UI System from end-users or endpoint systems requires particular consideration be given to latency and bandwidth objectives as follows:

Latency: The UI System may be sensitive to network latency for its proper function. Minimizing latency factors resulting from the distance between end-users and endpoint systems and the primary data center may demand data center proximity to or location(s) in the State. The State's goal is to select a hosting solution that can guarantee a specific network response time to meet the RFP Requirements.

Bandwidth and Usage: The UI System will transfer large amounts of data, which can increase network utilization costs. The State's goal is to have Offerors size the network connectivity to maximize utilization without incurring any unexpected network connectivity expenses for the State.

Resiliency and Recovery Objective: The mission-critical nature of the UI system requires application availability and resiliency. The recovery time objectives require meeting the objectives for the following:

Data Protection: The UI system requires high levels of data protection, ranging from tape backup to synchronously replicated data on mirrored storage sub-systems with regular data snapshots and archiving. The State's goal is to achieve the required level of protection using cost- effective means in order to meet resiliency and recovery needs.

Data Center Reliability: UI System resiliency may require supporting infrastructure resiliency. Data center infrastructure redundancy and design must improve IT system availability and therefore application and data availability. The goal is to ensure that an Offeror's hosting facilities meet the right level of resiliency for the UI system while minimizing expense to the State.

Protection from Extreme Weather and Natural Disasters: The Business Continuity

Plan requires recovery facilities to be geographically distant from the facilities where the production applications operate. The goal is to have the UI system meet required application recovery time and point objectives specified in the RFP Requirements at a low expense to the State.

For example, these goals can be met by implementing anything from reserved space with a disaster recovery provider to the application running in lockstep

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(auto failover for all components) for continuous availability at a geographically distant data center.

3.4 Flexibility

The proposed Unemployment Insurance system requires extensive flexibility of operation. Flexibility of the underlying hosting infrastructure are required to meet the State's peak processing demands and data growth, including the following:

Data Center Infrastructure Capacity: The goal is to determine capacity, ability to add capacity, and alternatives to gain capacity (through outsourcing, data center moves, or added facilities in alternate locations) to meet current and projected future capacity and auto-failover needs.

Provisioning: The goal is to identify and implement technologies, such as internal, private, or public cloud with self-service portals, to meet service-provisioning demands for the State's departments and business operations.

Dynamic: The goal is to identify and implement the ability to rapidly add and remove capacity as dictated by business needs while minimizing idle capital assets.

Data Storage: The State's demand for storage will continue to grow and may require special storage treatment, such as deduplication, thin provisioning, and data tiering.

3.5 Security

Data security, application and system security (including protection from malicious code, intrusions, hackers, and unauthorized access), and physical security are important State objectives. Because the Unemployment Insurance system will contain data that is highly sensitive, special governance procedures and appropriately robust data protection procedures are required. These include but are not limited to the following:

Encryption and Firewalls: The goal is to apply appropriate security zoning, technologies, and monitoring measures at low expense to the State.

Identity: Identity provisioning and management are required to enforce role-based access control for administrators and users of IT applications and infrastructure, as well as provide users single sign-on functionality from the State’s identity management system.

This includes allocating identity provisioning and management systems between enterprise systems and outsourced systems where required.

3.6 Regulatory Compliance

It is critical that the Offeror comply with Federal and State policies, regulations, and Laws, some of which create constraints that may impact Hosting Options and that must

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be considered in meeting the RFP Requirements, including:

Data Retention: Compliance with applicable regulatory requirements, such as Hawaii Revised Statutes, Hawaii Administrative Rules, and State regulations and policies, as well as State retention policies that will impact sourcing choices made to ensure retention and life cycle policies can be met.

Data Security and Protection: Data security is mandated for data that falls under requirements of Law and for data that contains intellectual property and personally identifiable information. Implemented security measures are aligned with recognized frameworks such as National Institute of Standards and Technology (NIST) Cybersecurity Framework, and the Center for Internet Security (CIS) Controls.

Diligence in Ensuring Value to the State: The State reserves the right to secure a third-party Independent Verification and Validation (IV&V) consultant to assist the State in making sure that activities associated with the Unemployment Insurance system brings value and adheres to all contract requirements.

3.7 Hosting Options

Proposals are limited to the two options for hosting the Unemployment Insurance System described below in order of preference:

Option 1: Software as a Service (SaaS) The Offeror hosts the UI System, provides M&O Services, owns the hardware, and provides State access to subscription-based UI software or cloud UI system solution, and use of the resulting services (including data).

Option 2: Hybrid - Offeror-Hosted, Offeror-Managed, State-Owned Hardware The Offeror hosts the UI System, provides M&O Services, the State owns the hardware, and the State is provided access to the UI system software or cloud UI system solution, and use of the resulting services (including data).

Option 3: Offeror-Hosted The Offeror will host the Unemployment Insurance System in primary and secondary data centers. The Offeror will own the hardware, and the State will own the UI software licenses.

Proposals offering Option 1: Software as a Service (SaaS) will be preferred over Proposals offering Option 2: Hybrid - Offeror-Hosted, Offeror-Managed, State-Owned Hardware and Option 3: Offeror-Hosted.

Regardless of the hosting option proposed by the Offeror, if the primary data center is hosted in a facility located outside of the State of Hawaii, possible options for transferring the UI System and data to another data center located within the State of Hawaii should be included as part of the response. The Offeror shall not host the UI System outside of the United States.

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Disaster Recovery - The Offeror's Cloud Services must use, subject to EUTF's approval, multiple geographically distinct regions for disaster recovery and business continuity.

3.8 Knowledge Transfer

Each Offeror shall provide a methodology for an intensive knowledge transfer program tailored to the State's particular needs, considering that knowledge transfer shall be provided to the State's Project Team (including "boot camp" sessions for both functional and technical sub-teams) throughout all phases of the project.

The objective is to successfully provide the State's Operational and IT Teams an in-depth understanding of the various features and components of the system, along with all related third-party software and tools.

3.9 Enhanced End-User Training

Each Offeror in its Proposal shall provide an enhanced training methodology to develop an internal State team able to implement a training program for end users on an ongoing basis.

The enhanced training methodology is required to enable the State to transition to its full support of the training program over a period of time.

The enhanced training program should provide the State with the ability to support a range of training delivery formats (e.g., classroom training, webinar training, online training, online help, knowledge base documents, and frequently asked questions).

The enhanced training program shall provide the ability for the State to train and provide support tools for end users at multiple locations on each of the Islands of Hawaii effectively and efficiently.

3.10 Business Process Reengineering

The State requires standardization along with process automation to align with best practices.

3.11 Data Cleansing and Conversion

Each Offeror shall develop and propose a strategy to cleanse and convert relevant legacy data into the Unemployment Insurance System.

Each Offeror shall either (i) identify the methodology and the approach for the implementation of tools and procedures to perform the State legacy data extraction, transformation and loading into the Unemployment Insurance System, or (ii) to make available requirements regarding the foregoing including those in OF-4 Requirements

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Traceability Matrix.

3.12 Continuity of Contractor Personnel

The Offeror will maintain a consistent, skilled key member Project Team onsite at the DLIR offices at 830 Punchbowl St., Honolulu, HI 96813 that meets the service requirements of the project.

DLIR shall retain the right of approval for replacement of the Contractor provided personnel throughout the implementation project.

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Section 4: Solicitation Information

4.1 Governing Laws and Regulations

This procurement is conducted by the DLIR, in accordance with the State Procurement Code.