J-5 Task Order IT Infrastructure Modernization Strategy SOW - Amendment 2.pdf

Revision 6

STATEMENT OF WORK

FEDERALLY FUNDED RESEARCH & DEVELOPMENT CENTER (FFRDC)

FOR

CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS)

CMS IT INFRASTRUCTURE MODERNIZATION STRATEGY DEVELOPMENT

I. INTRODUCTION AND BACKGROUND

Background The mission of the Centers for Medicaid & Medicare Services (CMS) is to ensure effective, up-to-date health care coverage and to promote quality care for beneficiaries. The Agency works with the healthcare community to improve the quality and efficiency in beneficiaries’ programs, services, and care, and to promote the fiscal soundness of an evolving healthcare system in the United States. CMS administers the Medicare program and works in partnership with the States to administer Medicaid, the Children’s Health Insurance Program (CHIP), and health insurance portability standards mandated by the Health Insurance Portability and Accountability Act (HIPAA) of 1996. CMS is also responsible for the administrative simplification standards prescribed by HIPAA and for quality standards in healthcare facilities through the Agency’s survey and certification activity.

In its stewardship of the Medicare and Medicaid programs, CMS leads the nation’s healthcare system toward improved health for all. The CMS vision for these programs addresses the business needs of the whole enterprise. The vision reflects CMS’ commitment to achieve a transformed and modernized health care system.

Introduction Today, CMS uses significant data center capacity provided by industry to support the processing of Medicare and Medicaid claims. CMS anticipates that the claims processing demands will continue to grow as the beneficiary population increases from about 35 million in 2003 to a projected 50 million by 2013.

CMS is responsible for nearly one-fifth of the entire federal budget, spending $800 billion every year on healthcare for over 100 million Americans. The cost of healthcare is increasing in the United States, along with rising expectations for improved quality of care. In response, Congress passed and the President signed into law the Patient Protection and Affordable Care Act of 2010 (ACA). The intent of this law is to establish comprehensive health insurance reforms that will lower healthcare costs, provide more healthcare choices, improve the quality of care, and hold insurance companies more accountable. The ACA is significant, landmark legislation with the potential to expand access to affordable healthcare to virtually every American and, ultimately, to improve the health of the entire country.

The ACA law contains over 400 provisions. CMS has a leading role in implementing more than 200 of these provisions that focus on maximizing CMS program outcomes to improve the health of CMS beneficiaries. Most of these provisions will also impact CMS’ information technology (IT) systems.

CMS is undertaking the development of a large-scale Information Technology Modernization initiative to improve the quality, responsiveness, and delivery of healthcare services to beneficiaries, providers, and business partners. This initiative spans the CMS enterprise and includes development and implementation of mid-tier and mainframe infrastructure known as the CMS Technical Architecture, a multi-zone architecture that is crucial to the effective operations of all CMS Production Environments. As CMS implements the components of the IT Modernization, it needs new policies, processes, and procedures for managing and controlling the enterprise.

The IT Modernization Program responds to a number of environmental, programmatic, and technological drivers that are changing the way CMS will deliver healthcare services in the future. The environmental drivers stem from changes in the beneficiary population. This population is expected to increase to approximately 50 million by the year 2013. Programmatic drivers derive from existing and new congressional mandates, such as MMA. These mandates will dramatically alter the types of health care services as well as their methods of delivery.

Finally, technology, including the Internet, now can be utilized throughout CMS to dramatically improve CMS IT infrastructure service delivery, cost, and security.

CMS’ Office of Information Services (OIS) is engaged in implementing the Agency’s extensive multi-year IT Modernization Program encompassing the Medicare FFS processing environment, data management and data warehousing, and IT infrastructure and security. The OIS staff oversees the planning and execution of the CMS IT Modernization Program. In addition, OIS has CMS-wide responsibility for all information resource management activities. These responsibilities include management, staff, equipment, and software associated with the development of automated information systems, associated policies and procedures to ensure proper controls and accountability for IT systems, and telecommunication activities and resources throughout CMS.

CMS is poised to transform the current EDC model into the Virtual Data Center (VDC) model, positioning CMS to more efficiently leverage IT to meet its obligations. The transformation of the CMS Production Data Centers will parallel the CMS-led transformation of the national healthcare system through a number of expected outcomes. These outcomes are driven by an increased focus on efficiencies and agility, starting with centralization of security and operations management; reliance on virtualization, open source, and cloud technologies; development of the national data warehouse; and expectation of achieving cost and process efficiencies generated by the streamlined VDC contract model. CMS expects to have a flexible yet cost-efficient foundation to spearhead the healthcare system transformation.

At CMS’ request, the Federally Funded Research and Development Center (FFRDC) will assist OIS and CMS in these efforts and, in particular, the development of the CMS IT Modernization Strategy for the IT Infrastructure.

The unique institutional characteristics of the FFRDC provide CMS with the following essential benefits:

• Safeguarding proprietary information obtained from the private sector in assisting the Sponsor with execution of its responsibilities, which has figured importantly in connection with the healthcare sector and development of large-scale acquisition programs

• Providing the Sponsor with continuing expert technical, analytical, and subject matter support that is free from the conflicts of interest associated with market pressures and profit-related work

• Assuring the timely integration and application of many disciplines and functional specialties that are too broad and complex to acquire through individual, competitive procurements of commercial contractors

• Ensuring the delivery of unparalleled operational knowledge, institutional memory, state-of-the-art expertise, and relevant historical perspective on critical Sponsor issues

• Providing quick response to Sponsor needs because of the FFRDC’s unique understanding and familiarity with Sponsor issues and its possession of the full range of relevant expertise.

II. SCOPE AND OBJECTIVES

Scope To meet the following objectives and outcomes, CMS requires the continued assistance of a FFRDC operator with in-depth knowledge of industry trends, sourcing strategies, federal procurement regulations and guidelines, as well as a comprehensive exposure to CMS’ IT strategies and understanding of the VDC Program and its evolution. CMS will utilize the FFRDC operator’s expertise to support the management, technical oversight, continuing acquisition, and implementation of CMS’ IT Modernization Strategy, which includes the following projects:

• Infrastructure Strategic Planning Support. Advising CMS on the implementation of the enterprise-wide IT Modernization Program to improve quality of services for delivery of healthcare.

• Data Center Consolidation and Transition Strategy. Advising CMS on the implementation of the CMS Production Data Centers consolidation, the creation of the Virtual Data Center transition management and communication plans.

• Technical Reference Architecture (TRA) and Common Enterprise Infrastructure (CEI) Support. Advising CMS on the continuing design, development, and implementation of the TRA and CEI critical initiatives within the CMS enterprise.

• VDC Source Selection Development, Planning, and Evaluation Support. Advising CMS in the evaluation of the task proposals and support for the award of acquisitions for the implementation of the VDC and related activities.

Objectives and Outcomes The primary objective of this Statement of Work (SOW) is to obtain technical, operational, and management support for the continuing implementation and evolution of the EDC Program consistent with CMS IT strategy. During this phase of the EDC Program, CMS places specific emphasis on the development and implementation of the management and oversight of the EDCs, development and promulgation of technical standards across the CMS enterprise, acquisition and implementation of the Common Enterprise Infrastructure and its component parts to ensure the enterprise-level integration of EDC operations, acquisition of the VDCs and management of the CMS Production Data Center migrations to the VDCs to evolve the EDC Program for greater efficiency and effectiveness in supporting the CMS mission and the healthcare transformation. To meet these objectives and outcomes, the FFRDC operator will support the following task areas:

• Task 1: Task Management

• Task 2: Infrastructure Strategic Planning Support

• Task 3: Data Center Consolidation and Transition Strategy

• Task 4: TRA and Common Enterprise Infrastructure Support

• Task 5: VDC Source Selection Development, Planning, and Evaluation Support

III. DESCRIPTION OF TASKS

The FFRDC operator shall provide the resources necessary to perform the following tasks.

Table 1 (see Section IV) presents a summary of all deliverables addressed in this Section.

Task 1: Task Management

The FFRDC operator shall manage its work programs in support of this tasking and provide the Government necessary feedback regarding progress. The FFRDC operator shall complete the following sub-tasks.

Sub-Task 1.1 – Kickoff Meeting Within ten (10) Government business days of the award of this task, the FFRDC operator shall conduct an orientation meeting and briefing for CMS. The completion of this briefing shall result in, but is not limited to, the following:

• Introduction of both FFRDC, Government, and EDC Contractor personnel performing work related to this Task Order

• Brief overview of task order administration and reporting

• Delivery to the FFRDC of any Government-Furnished Equipment, Information, or

Materials (GFE/I/M) unless specifically provided at contract award

• Development of a list of any additional Government-Furnished Information required

• Review by the FFRDC operator of its understanding of the work to be accomplished under this SOW to ensure that all parties have a common understanding of the work to be performed and of the respective responsibilities and obligations of the parties to that end

• Review by both CMS and the FFRDC operator of the agreed-upon method to resolve, track, and report on issues

Deliverable:

• Kickoff Meeting

Sub-Task 1.2 – Project Work Plan and Reporting

The FFRDC operator shall develop a proposed schedule plan. The FFRDC operator shall identify the resources that CMS needs to provide for this effort. CMS will approve the project work plan or provide comments for revision within ten (10) business days of delivery. The project work plan may be revised as needed throughout the period of delivery; however, the project work plan may not be revised more than monthly, as mutually agreeable to CMS and the FFRDC operator.

The FFRDC operator shall provide monthly status reports to ensure that the expenditure of resources is consistent with and will lead toward successful completion of all tasks within projected cost and schedule limitations. Monthly status reports shall detail progress made during the prior month, progress expected during the next month, resources expended, any significant problems or issues encountered, recommended actions to resolve identified problems, and any variances from the proposed schedule and discussed during a monthly briefing. In coordination with CMS and pending the content approval of the Government Task Leader (GTL), the monthly status reports may take the form of a “PowerPoint briefing deck” to expedite the identification and resolution of issues.

Deliverables:

• Monthly Status Report

• Work Plan

Task 2: Infrastructure Strategic Planning Support

This task provides for FFRDC support in creating, establishing, and implementing the CMS IT Modernization Strategy and planning for management and oversight of the Virtual Data Centers Program and VDC-related activities. The FFRDC operator shall assist CMS in the following activities:

• Continuing support for creation of the CMS IT Strategy. The CMS IT Strategy will include a data center strategy that will provide support for CMS lines of business, CMS contracting challenges, and the strategy for rapid response to agency demands.

• Determining the requirements for a Technology Infusion Testing Environment and the oversight needs of that environment.

Deliverables:

• Virtual Data Center Strategic Road Map

• Strategic and Tactical assessment of IT Applications, Infrastructure and Networks

• 4 Infrastructure Modernization Documents and Strategy Papers

Task 3: Data Center Consolidation and Transition Support

The FFRDC shall support CMS in the development of an Information Technology Infrastructure Library (ITIL) Service Level Framework for enterprise data center operations, an inventory of the Baltimore Data Center (BDC), and a transition (migration) strategy for the BDC and other data center workloads identified by the Data Center Consolidation Initiative (DCCI) survey to achieve CMS’ goal to consolidate data center services. This will include assisting CMS in the identification of hardware and software assets in the BDC, allocation of key business applications to the assets, recommended groupings of business applications to support task order development (see Task 4), and input into a CMS road map that supports a viable data center/hosting/cloud strategy.

The FFRDC operator shall assist CMS in the following activities for delivery of data center support services:

• Hardware and software inventory

• Allocation of key business applications to inventory components

Deliverables:

• DCCI/VDC Strategy Paper(s)

• DCCI Communication Plan

• DCCI/VDC Migration Plan

Task 4: VDC Source Selection Development, Planning, and Evaluation

The FFRDC operator shall provide advice, guidance, and support to CMS in the development of at least six (6) Task Orders to achieve CMS’ goal to consolidate data center services. This task will include assisting CMS in the procurement and planning activities necessary to transition the CITIC data center contract to the VDC IDIQ contract. The VDC source selection, development, and planning activities shall include:

• Procurement Strategy Documentation, as appropriate

• Task Order Proposal Development and Source Selection Support

Task 5: TRA and Common Enterprise Infrastructure Support

To support the operations and ensure enterprise-level integration and oversight of the CMS Contractors, CMS plans to implement a set of systems and services that will create a Common Enterprise Infrastructure. These systems and services shall be common across all CMS Production data centers and will communicate to a central CMS Enterprise Security and Network Operations Center (ESNOC) location for coordinated management and/or reporting. The FFRDC operator shall assist CMS in the enterprise planning and engineering of CEI solutions as well as the procurement of the designated CEI systems or system integrators.

The FFRDC operator will provide Independent Verification and Validation ((IV&V) of the CEI systems implementation to enhance the CMS VDC-PO’s oversight of individual CEI subsystems and to validate the satisfaction of technical requirements. The FFRDC operator shall provide technical oversight assistance and independent operational assessments, where necessary, for support of the CMS resolving technical and engineering issues.

The services will include:

• Support for BDC/EDC/VDC Standardization and Collaboration

• Technical Guidance to include TRA Supplements as well as implementation-specific guidance

Sub-Task 5.1 – TRA and CEI System-Level Support The FFRDC operator shall assist CMS in the design, integration, and implementation of CEI systems and CMS TRA to support the VDC vision in the following areas:

• Conducting formal market reviews of current products and/or services that are applicable to each CEI functional need

• Evaluating current hardware, software, and tools used by CMS

• Evaluating current hardware, software, products, and tools used by the CMS Production

Data Center Contractors

• Determining integration alternatives to create a TRA-compliant environment that will support innovation and refinement of the VCC operating environment

• Assist with developing realistic, accurate budget estimates, including software, hardware, labor, and implementation costs, for ongoing maintenance and resource expenditures

• Analysis of CMS Production Data Center disaster recovery configuration and plans, to ensure alignment with Contractor requirements and TRA

• Technical reviews of proposed new transitions into the CMS Production Data Centers, including TRA architectural compliance reviews

• Guidance for Production Data Center Report Management Standardization

• Assisting CMS in creating and maintaining policy and configuration specifications for managing the TRA-compliant development, testing, and production environments throughout the CMS enterprise

• Supporting the CMS Technical Review Board, Chief Technical Officer Technical Advisory Board, and Working Groups

• Supporting CMS architectural review and configuration control boards

• Addressing security related issues in the TRA.

Sub-Task 5.2 – Technical Guidance Support The FFRDC operator shall assist CMS in the design, integration, and implementation of CEI systems to support the VDC vision by providing implementation-specific technical guidance that builds on the TRA by providing the following:

• Solution architecture guidance and practical technical guidance that align TRA Supplements to common technical solution needs

• Infrastructure / Shared Services technical integration guidance

• Product delivery technical guidance

• Methodologies and industry best-practices guidance for adopting such practices as business architecture, service-oriented architecture (SOA), Agile methods (such as SCRUM), and Business Blueprinting

• Technical innovation infusion process guidance to help accelerate the adoption of mission-critical innovations in business processes, models, products, technologies, and standards

Deliverables:

• Twelve (12) architecture documents, in any combination (as requested) of the following:

– New TRA Supplement documents

– TRA Supplement document updates

– Technology assessments

– Product assessments

– Solution architecture supplements

– Concept of Operations (ConOps) documents

IV. TRAVEL

All local travel for meetings and other information exchange will be reimbursed at the rates in effect at the time of the travel. Local travel is defined as travel within sixty (60) miles of an employee’s main office location.

It is anticipated that long-distance travel may be required to CMS production data centers. Long-distance travel, if necessary, will be performed on an as-needed basis. Every effort will be made to obtain economic airfares. Per Diem will be reimbursed at Government-approved rates in effect at the time of the travel.

Based on the requirements for the tasks contained herein, the FFRDC operator shall propose travel to support CMS in the cost proposal.

V. DELIVERABLES/SCHEDULE

Deliverables are specified in Table 1. Deliverables associated with any optional task are not listed in Table 1, and will be addressed in a subsequent, optional task as may be requested by CMS. Electronic and Information Technology (EIT) products produced and/or delivered shall be Section 508 compliant in accordance with accessibility standards, where applicable.

Table 1. Deliverables/Schedule

Deliverable Task / Sub-Task Schedule Type

Kickoff Meeting 1 Ten (10) Government business days after task award Formal

Work Plan 1

Ten (10) Government business days after Kickoff Meeting;

updated throughout the contract year

Formal

Deliverable Task / Sub-Task Schedule Type

Monthly Status Report 1 Monthly by the 15th of the month following performance Formal

IT Strategic Plan, including a Virtual Data Center Strategic Road Map

2 As agreed to in the Work Plan Formal

Strategic and Tactical assessment of IT Applications, Infrastructure and Networks

2 As agreed to in the Work Plan Formal

4 Infrastructure Modernization Documents and Strategy Papers

2 As agreed to in the Work Plan Formal

DCCI/VDC Strategy Paper(s) 3 As agreed to in the Work Plan Formal

DCCI/VDC Migration Plan 3 As agreed to in the Work Plan Formal

DCCI Communication Plan 3 As agreed to in the Work Plan Formal

Procurement Strategy Documentation, as appropriate, including Requests for Task Order Proposal Development

4 As agreed to in the Work Plan Formal

Twelve (12) architecture documents, in any combination (as requested) of the following:

– New TRA Supplement documents

– TRA Supplement document updates

– Technology assessments

– Product assessments

– Solution architecture supplements

– Concept of Operations (ConOps) documents

5 As agreed to in the Work Plan Formal

VI. ACCEPTANCE CRITERIA

The FFRDC operator shall deliver all products concurrently to the GTL (and other technical customers, as appropriate), Project Officer (PO), and Contracting Officer (CO). Electronic transmission will be the primary delivery mechanism; however, hard copies will be provided as requested.

The PO will notify the FFRDC operator of deliverable acceptance or provide comments in writing within ten (10) Government business days of receipt of a deliverable. Within ten (10) Government business days, the FFRDC operator will resubmit the final deliverable to the GTM, PO, and CO, if necessary.

VII. GOVERNMENT-FURNISHED MATERIALS (GFM)

Government-furnished property (materials, equipment, and/or information) is to be provided in conjunction with required performance under this Task Order as determined by mutual agreement between CMS and the FFRDC operator.

At the written request of CMS, the FFRDC operator will immediately return any property provided by CMS for the FFRDC operator’s use to complete the assigned sub-tasks under this Task Order. If not requested, the FFRDC operator will continue to abide by FAR Part 45 until completion of the contract.

A list of GFE/I will be developed and agreed to during the Kickoff Meeting. All materials contained on the agreed to list will be provided to the FFRDC operator within five (5) Government business days.

VIII. SECTION 508 - ACCESSIBILITY OF ELECTRONIC AND

INFORMATION TECHNOLOGY

(a) This task order is subject to Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d) as amended by the workforce Investment Act of 1998 (P.L. 105-220). Specifically, subsection 508(a)(1) requires that when the Federal Government procures Electronic and Information Technology (EIT), the EIT must allow Federal employees and individuals of the public with disabilities comparable access to and use of information and data that is provided to Federal employees and individuals of the public without disabilities.

(b) The EIT accessibility standards at 36 CFR Part 1194 were developed by the Architectural and Transportation Barriers Compliance Board ("Access Board") and apply to contracts and task/delivery orders, awarded under indefinite quantity contracts on or after June 25, 2001.

(c) Each Electronic and Information Technology (EIT) product or service furnished under this contract shall comply with the Electronic and Information Technology Accessibility Standards (36 CFR 1194), as specified in the contract, as a minimum. If the Contracting Officer determines any furnished product or service is not in compliance with the contract, the Contracting Officer will promptly inform the Contractor in writing. The Contractor shall, without charge to the Government, repair or replace the non-compliant products or services within the period of time to be specified by the Government in writing. If such repair or replacement is not completed within the time specified, the Government shall have the following recourses:

1. Cancellation of the contract, delivery or task order, purchase or line item without termination liabilities; or

2. In the case of custom Electronic and Information Technology (EIT) being developed by a contractor for the Government, the Government shall have the right to have any necessary changes made or repairs performed by itself or by another firm for the noncompliant EIT, with the contractor liable for reimbursement to the Government for any expenses incurred thereby.

(d) The contractor must ensure that all EIT products that are less than fully compliant with the accessibility standards are provided pursuant to extensive market research and are the most current compliant products or services available to satisfy the contract requirements.

(e) For every EIT product or service accepted under this contact by the Government that does not comply with 36 CFR 1194, the contractor shall, at the discretion of the Government, make every effort to replace or upgrade it with a compliant equivalent product or service, if commercially available and cost neutral, on either a contract specified refresh cycle for the product or service, or on a contract effective option/renewal date; whichever shall occur first.

Section 508 Compliance for Communications

The Contractor shall comply with the standards, policies, and procedures below. In the event of conflicts between the referenced documents and this task order, this task order shall take precedence.

Rehabilitation Act, Section 508 Accessibility Standards

1. 29 U.S.C. 794d (Rehabilitation Act as amended)

2. 36 CFR 1194 (508 Standards)

3. www.access-board.gov/sec508/508standards.htm (508 standards)

4. FAR 39.2 (Section 508)

5. CMS/HHS Standards, policies and procedures (Section 508)

In addition, all contract deliverables are subject to these 508 standards as applicable.

Regardless of format, all Web content or communications materials produced, including text, audio or video - must conform to applicable Section 508 standards to allow federal employees and members of the public with disabilities to access information that is comparable to information provided to persons without disabilities. All contractors (including subcontractors) or consultants responsible for preparing or posting content must comply with applicable Section 508 accessibility standards, and where applicable, those set forth in the referenced policy or standards documents above. Remediation of any materials that do not comply with the applicable provisions of 36 CFR Part 1194 as set forth in the task order shall be the responsibility of the contractor or consultant.

The following Section 508 provisions apply to the content or communications material identified in this task order:

36 CFR Part 1194.21 a - l 36 CFR Part 1194.22 a - p 36 CFR Part 1194.31 a - f 36 CFR Part 1194.41 a – c

The contractor shall provide a completed Section 508 Product Assessment Template and the contractor shall state exactly how proposed EIT deliverable(s) meet or does not meet the applicable standards.

The following Section 508 provisions apply for software development material identified in this task order:

For software development, the Contractor/Developer/Vendor shall comply with the standards, policies, and procedures below:

Rehabilitation Act, Section 508, Accessibility Standards

(1) 29 U.S.C. 794d (Rehabilitation Act as amended)

(2) 36 CFR 1194 (508 Standards)

36 CFR Part 1194.21 (a – l)

36 CFR Part 1194.31 (a – f)

36 CFR Part 1194.41 (a – c)

(3) www.access-board.gov/sec508/508standards.htm (508 Standards)

(4) FAR 39.2 (Section 508)

(5) CMS/HHS Standards, policies and procedures (Section 508)

a. Information Technology – General Information

(http://www.cms.hhs.gov/InfoTechGenInfo/)

For web-based applications, the Contractor shall comply with the standards, policies, and procedures below:

Rehabilitation Act, Section 508, Accessibility Standards

(1) 29 U.S.C. 794d (Rehabilitation Act as amended)

(2) 36 CFR 1194 (508 Standards)

36 CFR Part 1194.22 (a – p)

36 CFR Part 1194.41 (a – c)

(3) www.access-board.gov/sec508/508standards.htm (508 Standards)

(4) FAR 39.2 (Section 508)

(5) CMS/HHS Standards, policies and procedures (Section 508)

a. Information Technology – General Information

(http://www.cms.hhs.gov/InfoTechGenInfo/)

IX. SKILL MIX

The FFRDC operator shall propose a skill mix in support of the requirements presented in this SOW. CMS anticipates a skill mix similar to the support that is currently being provided which consists of Senior, Principal, and Lead Information Systems Engineers; Communication Specialists; and Cost Analysts.

X. PLACE OF PERFORMANCE

The FFRDC operator shall work primarily in the greater Washington, D.C. metropolitan area to include the FFRDC operator’s facilities, as well as the CMS facilities, near Baltimore. As approved by CMS, the FFRDC operator may participate in conferences and meetings where relevant project issues are discussed. Site visits to EDC locations may be required to meet with EDC Contractors, other vendors, operations personnel, or other CMS staff experts. Site visits will be coordinated with the GTL.

XI. PERIOD OF PERFORMANCE

The Period of Performance shall be a base period of not to exceed one (1) year from date of award with four (4) one (1) year options.

TECHNICAL CONTACTS

Contracting Officer’s Representative (COR): TBD

Government Task Leader (GTL): TBD