S000000321 S4HANA Upgrade & Implementation Services REVISED RFP 3.0.pdf

STATE OF ARKANSAS

DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES

OFFICE OF STATE PROCUREMENT

501 Woodlane St., Ste. 220

Little Rock, Arkansas 72201-1023

REVISED REQUEST FOR PROPOSAL

SOLICITATION DOCUMENT

Note: Updates to this final RFP are designated by red font.

SOLICITATION INFORMATION

Solicitation Number: S000000321 Solicitation Issued: March 22, 2024

Description: S/4HANA Upgrade & Implementation Services

Department: Department of Finance & Administration

SUBMISSION DEADLINE AND DELIVERY OF RESPONSE DOCUMENTS

Proposal Opening Date: April 24th 26th, 2024 Proposal Opening Time: 02:00PM Central

Proposal submissions for this Request for Proposal must be submitted through ARBuy, the State’s eProcurement system. It can be accessed at arbuy.arkansas.gov. Proposals received after the submission deadline may be rejected as untimely.

LIVE PROPOSAL OPENING INFORMATION

Teams Meeting Link: Click here to join the meeting

Meeting ID: 231 231 510 442

Passcode: JVmuU3

Call in (audio only): 501.244.3310 or find a local number

TSS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

TSS OSP Procurement Specialist:

Shane Phillips Procurement Specialist’s Direct Phone Number:

501-324-9322

Email Address: Shane.Phillips@arkansas.gov TSS OSP’s Main Number: 501-324-9316

TSS OSP Website: transform.ar.gov/procurement/ https://arbuy.arkansas.gov/ https://teams.microsoft.com/l/meetup-join/19%3ameeting_NTQ0M2IzYWMtYTkxZi00MzU0LThkOGYtNjA4NzdkNThlYTgx%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%22228b97a9-d833-4482-92cb-0966075cde71%22%7d https://dialin.teams.microsoft.com/6b6513dc-a034-48d2-8d06-7e711c4ecc0b?id=719036839 mailto:Shane.Phillips@arkansas.gov https://www.transform.ar.gov/procurement/

Rev 12/2023

SECTION 1 – GENERAL INFORMATION AND INSTRUCTIONS

1.1 INTRODUCTION

This Request for Proposal (RFP) is issued by the TSS Office of State Procurement (TSS OSP) for the Department of Finance and Administration (“DFA” or “Department”) to obtain pricing and a contract(s) for S/4HANA Upgrade & Implementation Services.

Contract will be awarded to the Prospective Contractor determined to have submitted the proposal that is the most advantageous to the State. Direct all questions, comments, or concerns regarding this solicitation to the TSS OSP, not the Department.

1.2 OBJECTIVE AND GOALS

A. The objectives of the S/4HANA Upgrade Project include:

1. Upgrading functionality from ECC 6.0 (Enhancement Pack 7) to S/4HANA

2. Improving efficiency through reengineering business processes and automation

3. Modernizing Technology

4. Supporting data driven decision making

5. Complying with legal and reporting requirements

6. Institutionalizing Support for State Agencies

B. A detailed discussion regarding the background of the project, current technical environment, and objectives can be found in Sections 2.1, 2.2 and 2.3, respectively.

1.3 TYPE OF CONTRACT

A. As a result of this RFP, TSS OSP intends to award a contract to a single Contractor.

B. The anticipated starting date for any resulting contract is July 1, 2024, except that the actual contract start date may be adjusted unilaterally by the State for up to three (3) calendar months. By submitting a signed proposal in response to the RFP, the Prospective Contractor represents and warrants that it will honor its proposal as being held open as irrevocable for this period.

C. The initial term of a resulting contract will be for three (3) years. Upon mutual agreement by the Contractor and Department, the contract may be renewed by TSS OSP for up to four (4) additional one-year terms or portions thereof, not to exceed a total aggregate contract term of seven (7) consecutive years.

1.4 DEFINITION OF TERMS

A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. “Deployment Approach” describes the way in which the Upgrade to S/4HANA incorporates the information in the Current AASIS ECC system.

C. “Greenfield” approaches the Upgrade more as a new implementation.

D. “Bluefield” approaches the Upgrade combining new configuration and master data with selective data converted from ECC.

E. “Brownfield” approaches the implementation more like a “Lift and Shift” project, with little change from existing AASIS ECC

F. “DFA Information System” means the collective interconnected set of components used to collect, store, process and transmit data and digital information in the providing of DFA technology services to Authorized Users and citizens. This includes hardware, software, data, network access and authentication mechanisms. The DFA Information System is maintained by the Arkansas Department of Finance and Administration (DFA) and third parties.

G. "Hybrid Cloud Environment” combines two or more computing environments to support 1 system, it requires coordination and integration to ensure that these environments stay in sync.

H. “Proprietary Software” is privately owned, maintained software that is licensed to end users. It is also closed-source, so that end-users cannot modify the software.

I. “Prospective Contractor” means a responsible offeror who submits a proposal in response to this Solicitation.

J. The terms “Request for Proposal,” “RFP,” and “Solicitation” are used synonymously in this document.

K. “Requirement” means a term, condition, provision, deliverable, specification, or a combination thereof, that is obligated under the Solicitation, resulting contract, or both.

L. “Responsive Proposal” means a proposal submitted in response to this Solicitation that conforms in all material respects to this RFP.

M. “Security Breach” is any compromise of the security, confidentiality, or integrity of an information system, including but not necessarily limited to any unauthorized access to information, destruction of information, modification of information, acquisition of information, or disclosure of information.

N. “Shall” and “must” mean the imperative and are used to identify Requirements.

O. “Specification” means any technical or functional description of the characteristics to be provided in the S/4HANA deployed system by the Contractor. “Specification” may include, but is not limited to:

1. Documented work-products of the Implementation Services as specified in this RFP, the subsequent Contract and other Scope Defining Documents as recognized through the course of the Implementation Project

2. Documented Software Configuration Requirements

3. Documented Business Process Design or Redesign requirements

4. Documented End User Training Development, Delivery, and on-going Support Requirements, including Organizational Design requirements

5. Documented Organizational Change Management Services

6. Functional and Technical Specifications for customizations in support of closing gaps in the standard system

7. Documented Testing Requirements

8. Master Data Redesign Requirements

9. Documented Conversion Requirements

10. Documented Cutover Requirements

P. “State” means the State of Arkansas. When the term “State” is used herein to reference any obligation of the State under a contract that results from this Solicitation, that obligation is limited to the Department using such a contract

1.5 SOLICITATION SCHEDULE

For informational purposes, TSS OSP is providing a Solicitation Schedule; however, dates listed and noted with an asterisk (*) are anticipated dates only and are subject to change at the discretion of the State. All times are listed in Central Time.

TABLE A: TENTATIVE SOLICITATION SCHEDULE

ACTIVITY DATE

RFP Release to Prospective Contractors March 22nd, 2024

Deadline for Prospective Contractor Questions April 2nd, 2024

Answers to Questions Posted to ARBuy* April 10th, 2024

Proposal Due Date April 24th 26th, 2024, 2pm Central

Initial Proposal Evaluation* April 30th, 2024

Interviews* May 2nd-3rd, 2024

Final Proposal Evaluation* May 3rd, 2024

Discussions Kick Off Meeting* May 8th, 2024

Finalize Discussions* May 24th, 2024

Post Anticipation to Award* May 29th, 2024

Award Contract* July 1st, 2024

1.6 CLARIFICATION OF SOLICITATION

A. Submit questions requesting clarification of information contained in this Solicitation via the

Solicitation posting in ARBuy by the date and time listed in Table A.

1. For each question submitted, Prospective Contractor should reference the specific Solicitation item number to which the question refers, as applicable.

2. Prospective Contractors’ written questions will be consolidated and responded to by the State as deemed appropriate. The State’s consolidated written response is anticipated to be posted to the Solicitation posting in ARBuy by the close of business on the date provided in Table A. If Prospective Contractor questions are unclear or non-substantive in nature, the State may request clarification of a question(s) or decline to answer.

B. The Prospective Contractor should notify the TSS OSP Procurement Specialist of any term, condition, etc., that precludes the Prospective Contractor from submitting a compliant, Responsive Proposal. Prospective Contractors should note that it is the responsibility of the Prospective Contractor to seek resolution of all such issues, including those relating to the terms and conditions of the contract, prior to the submission of a proposal.

C. Prospective Contractors may contact the TSS OSP Procurement Specialist with non-substantive questions at any time prior to the proposal opening.

D. An oral statement by TSS OSP will not be part of any contract resulting from this Solicitation and may not reasonably be relied on by any Prospective Contractor as an aid to interpretation unless it is reduced to writing and expressly adopted by TSS OSP.

E. Only an addendum written and authorized by the State will modify the Solicitation.

1. An addendum posted within three (3) calendar days prior to the proposal opening may extend the proposal opening and may or may not include changes to the Solicitation.

1.7 RESPONSE DOCUMENTS

A. All proposal responses must be submitted through ARBuy, the State’s eProcurement system. The system can be accessed at arbuy.arkansas.gov.

1. Prospective Contractors must be registered in ARBuy to submit proposal responses.

B. Technical Proposal Packet

1. Prospective Contractors shall utilize the Technical Proposal Packet to submit their responses.

2. The following items are proposal Submission Requirements and must be submitted as part of a Prospective Contractor’s proposal response.

a. Signed Proposal Signature Page; signature may be ink or digital.

b. Technical Proposal response to the Information for Evaluation section included in the Technical Proposal Packet, which must be in the English language.

c. Completed Official Solicitation Price Sheet attached to the Solicitation in ARBuy.

i. Pricing must be proposed in U.S. dollars and cents.

ii. If pricing documents do not allow for accurate pricing, Prospective Contractor should notify the OSP Procurement Specialist at least seventy-two (72) hours before the proposal opening time.

iii. Prices must be firm offers and shall not be subject to escalation.

iv. Discount from list pricing is not acceptable unless requested elsewhere in the Solicitation.

v. State or local sales taxes should not be included in the price. Trade discounts should be deducted from the unit price and the net price should be shown in the Pricing Response.

d. Recommended Options Form

i. The Recommended Options form included in the Technical Proposal Packet allows Prospective Contractors to identify any recommended options or optional service ideas that may benefit the State that were not included in the Requirements and the proposed solution.

e. Copy of Prospective Contractor’s Equal Opportunity Policy

i. Pursuant to Arkansas Code Annotated § 19-11-104, OSP requires a Prospective Contractor bidding on a state contract to submit a copy of the Prospective Contractor’s Equal Opportunity (EO) Policy.

ii. Prospective Contractors not required by law to have an EO Policy must submit a written statement to that effect.

f. Proposed Subcontractors Form (see SRV-1, section 14)

3. The following items, which must be submitted prior to a contract award to the Prospective Contractor, may also be included with the Prospective Contractor’s proposal:

a. EO 98-04: Contract and Grant Disclosure Form (see SRV-1, section 11)

b. Voluntary Product Accessibility Template (VPAT), if applicable

4. Prospective Contractors should not include any other documents or ancillary information, such as a cover letter or promotional/marketing information.

C. Redacted copy of the Technical Proposal Packet https://arbuy.arkansas.gov/ https://www.transform.ar.gov/wp-content/uploads/Services-Contract-SRV-1-Fillable-Form-V.3.6.27.22.pdf https://www.transform.ar.gov/wp-content/uploads/Services-Contract-SRV-1-Fillable-Form-V.3.6.27.22.pdf https://www.section508.gov/sell/vpat/

1. One (1) redacted (marked “REDACTED”) copy of the Prospective Contractor’s proposal response (see Proprietary Information), if applicable.

D. Prospective Contractors should not alter language in Solicitation document(s) or Official Proposal Price Sheet provided by the State.

E. Prospective Contractor’s proposals cannot be altered or amended after the proposal opening except as permitted by law or rule.

F. Prospective Contractors may submit multiple proposals.

SECTION 2 – REQUIREMENTS

2.1 BACKGROUND

The State implemented the AASIS system for productive use in July of 2001. The underlying premise for the State was to utilize commercially available off the shelf ERP software. AASIS utilizes many core features of the SAP ERP software solution with an emphasis on public sector functionality. AASIS has been in continuous operation since 2001.

The following SAP components are being used in AASIS (For additional information, see Attachment A:

Product and Software Version Information):

• SAP Human Capital Management o Personnel Administration (PA) o Organization Management (OM) o Benefits (BN) o Time Administration (TA) o Payroll (PR) o Employee Self Service (ESS) o Management Self Service (MSS) o Learning Solution (LSO)

• SAP Accounting o General Ledger, Special Purpose Ledger and Financials (GL, SPL and FI) o Funds Management (FM) o Controlling (CO) o Cash Management (CM) o Accounts Payable (AP) o Accounts Receivables (AR) o Asset Accounting (AA) o Flexible Real Estate Management (RE-FX)

• SAP Logistics o Materials Management (MM) o Plant Maintenance (PM) o Fleet Management for State Police

• SAP Business Intelligence o Business Warehouse (BW) o Business Objects for reporting (BO)

AASIS has been heavily customized over the years to meet specific needs of the State, making it very challenging to maintain, as well as complicated to enhance and modernize. During this same timeframe, there have been very few strategic initiatives to incorporate new features and functions within AASIS that could leverage the State’s long-term investment in the SAP ERP software.

DFA conducted a Planning Project in anticipation of this S/4HANA implementation RFP, which mapped as much scope information as could be identified with the goal of avoiding delays normally required for the gathering of detailed scope data.

Data has been gathered and is assembled and available to be viewed by Prospective Contractors in the variety of attachments included in this RFP.

Necessary adjustments to these artifacts may be made during the implementation project.

2.2 CURRENT TECHNOLOGY ENVRIONMENT

A. Overview of On-Premise Architecture:

Attachment B: Technical Environment contains an overview of the current technology environment that must be considered for the upgrade. Please note that this does not include a comprehensive list of all interfaces or integrations that the SAP environment has from or to 3rd party vendors, other departments within the State, etc.

These are on-premise systems hosted, managed, and maintained by the State of Arkansas. Except for the Web Dispatcher systems, which are in the DMZ, all other systems are behind an internal firewall controlled by the State of Arkansas. Outside of various employee and manager self-service functions, users are required to be on the State of Arkansas network to access these systems. End users with professional roles access the system via the SAP GUI installed on their local PC.

Employee and manager self-service functions are provided via Fiori launchpad that is accessible through the internet. Some deployed Fiori Applications are available outside of the State network.

There is no single sign on in place.

The HANA Databases, Web Dispatchers, and JSCAPE run on RHEL. The SAP application servers run on AIX. The SAP cloud connector and Kronos (aka UKG), run on Windows.

Print queues for SAP Printing are defined on the ECC Secondary Application Servers

Although Business Objects is part of the overall landscape within the State of Arkansas, it is hosted, managed and maintained by the Department of Transformation and Shared Services, Division of Information Systems (DIS).

The landscape systems are listed in Attachment C: Landscape Systems and are as of 1/31/2024.

Also see Attachment A: Product and Software Version Information.

Except for the ECC Sandbox HANA Database, all non-production HANA databases share resources on one ‘physical’ server. The breakdown is as follows:

• Non-Production ECC HANA System Database includes the following database tenants:

o Quality Assurance o Development o Training

• Non-Production BW HANA System Database includes the following database tenants:

o Sandbox

• Non-Production Enterprise Portal System HANA Database includes the following database tenants:

o Quality Assurance

• Non-Production BW Portal HANA System Database includes the following database tenants:

• Non-Production Gateway HANA System Database includes the following database tenants:

o Quality Assurance

B. Overview of On-Premise, Cloud Hosted Architecture:

As stated in the section above, the below is an overview of the current technology environment that must be considered for the upgrade.

The on-premise hosted systems are hosted, managed and maintained by NS2 and are an extension of the State of Arkansas range of IP addresses. These systems are connected to the State infrastructure through a VPN tunnel that is managed and maintained by the Department of Transformation and Shared Services, Division of Information Systems (DIS)

These systems are not presently being used in a production capacity.

Single sign on is not implemented for these systems.

Production

System Type Product Version SP Version

Master Data Governance Primary Application Server

S/4HANA ON PREMISE Release

01 (02/2023)

Master Data Governance HANA Database HANA 2.0

Development

System Type Product Version

SP Version

S/4HANA for Master Data Governance Primary Application Server

S/4HANA ON

PREMISE

Release 2022

01 (02/2023)

Master Data Governance HANA Database HANA 2.0

C. Overview of Cloud Architecture:

As stated in the section above, the below is an overview of the current technology environment that must be considered for the upgrade.

The SAP cloud systems are hosted, managed, and maintained by SAP.

Except for SuccessFactors Recruiting and Onboarding modules, none of the below systems are being used in a production environment.

Single Sign on is not implemented for any of these systems.

Cloud Products / Systems

System Type

SAP Analytics Cloud (SAC)

Datasphere

Business Technology Platform

SAP SuccessFactors

Workforce Software

Business Application Studio

D. See Attachment C: Landscape Systems for additional information.

2.3 OBJECTIVES & GOALS

A. Upgrading functionality from ECC 6.0 (Enhancement Pack 7) to S/4HANA.

B. Improving efficiency through reengineering business processes, automation, and paperless workflow.

Specific areas of focus include:

1. Financial Reporting:

a. Implementing SAP Best Practices for Public Sector Financial Reporting, including redesign of the Chart of Accounts to support simultaneous reporting on both a modified and full accrual basis.

b. Designing and implementing a year-end close process, with supporting reports, that reduces the amount of time and effort required to deliver the State’s Annual Comprehensive Financial Reports and Federal Schedule of Expenditures of Federal Awards

2. Expanding the footprint of AASIS to include:

a. Sales and Distribution for Sales Material-based revenue streams

b. Core Grant Accounting functions for Grantee Management

c. Optional Grantee Management Scope which may be deployed after the core functions are implemented

d. Grant Accounting functions for Grantor Management

e. Real Estate Management

f. Plant Maintenance (for Fleet, Buildings/Equipment, and Grounds)

g. Travel Management using SAP’s Concur Software

C. Modernizing Technology:

1. SAP support schedule for AASIS ECC is reaching end of life in 2027.

2. Transitioning from custom programs to standard functionality for meeting governmental accounting requirements

3. Catching up with state-of-the-art software solutions, security, and integration with other departments and external entities

D. Supporting data driven decision making

1. Eliminating redundant reporting systems

2. Enabling better data driven decision making

E. Complying with legal and reporting requirements:

1. Meeting Financial Reporting requirements that have evolved significantly since 2002.

2. Adjusting quickly to changing audit, federal and legislative standards

F. Please note that software procurement is not included in the scope of this Procurement.

2.4 PROSPECTIVE CONTRACTOR MINIMUM QUALIFICATIONS

A. The Prospective Contractor shall have provided S/4HANA project management and implementation advisory services on at least two (2) engagements for the implementation of entity wide S/4HANA projects for governments of comparable size and complexity as the State. For the purposes of this RFP, “comparable size and complexity” is defined as an annual budget of at least $1 billion and a minimum of 10,000 full time employees. Projects should be public sector focused, such as:

1. U.S. state government

2. U.S. city or county government of comparable size and complexity to the State

3. Public School District

4. Other publicly funded entities

B. The Prospective Contractor’s Key Personnel shall have experience with at least 2 SAP S/4HANA public sector upgrade or implementation projects (for full life cycle of project). DFA has a preference for S/4HANA certified consultants.

C. Upon request by the State, Prospective Contractor shall provide any additional information requested including but not limited to financial information, project details, references, etc.

2.5 GENERAL REQUIREMENTS

A. The Contractor shall be responsible for upgrading AASIS functionality from ECC 6.0 (Enhancement

Pack 7) to S/4HANA to support existing functionality used by the State, as well as implementing other modules to support the business process scope of this project.

B. The Contractor shall provide all services that are inclusive of the requirements, tasks, services, in scope activities, and deliverables outlined in the RFP. This must include, but is not limited to:

1. Project initiation

2. Project Planning and Management

3. Change Management, Communication Management, Training, and Organizational Design

4. Business Process Reengineering and Design with Documented System Requirements

5. Fit-gap Documentation

6. System Design, Configuration, Development, and Testing

7. Deployment

8. Post-Implementation Support

C. The Contractor’s deliverables must comply with:

1. Arkansas Code, Title 19, Public Finance

2. Title 25, State Government as relevant to the administrative functions supported by the Department (for example, Chapter 1 (General Provisions), Subchapter 4 (Arkansas Financial Transparency Act)

3. Internal Control Requirements as described by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework

4. Arkansas Constitution, Article 16

5. Federal Regulatory Requirements, such as the Cash Management Improvement Act https://advance.lexis.com/container?config=00JAA3ZTU0NTIzYy0zZDEyLTRhYmQtYmRmMS1iMWIxNDgxYWMxZTQKAFBvZENhdGFsb2cubRW4ifTiwi5vLw6cI1uX&crid=02522391-4802-474a-8566-ab820e6abdad&prid=2a4f5489-3263-4d7a-a2fe-9ce7f1b6c510 https://advance.lexis.com/container?config=00JAA3ZTU0NTIzYy0zZDEyLTRhYmQtYmRmMS1iMWIxNDgxYWMxZTQKAFBvZENhdGFsb2cubRW4ifTiwi5vLw6cI1uX&crid=02522391-4802-474a-8566-ab820e6abdad&prid=2a4f5489-3263-4d7a-a2fe-9ce7f1b6c510 https://www.coso.org/guidance-on-ic https://advance.lexis.com/container?config=0145JAA3MTdkMDQ2Mi01Yjg3LTQ5YjUtOTM2NS05MzE5ZjhjNGY5N2MKAFBvZENhdGFsb2cWtateMur7cOlHYN8TgmNk&crid=2477250a-80fb-4551-a71c-9833aabe6f76

2.6 BUSINESS PROCESS SCOPE

A. The Business Process Scope must include, but is not limited to the following:

1. Planning and Budgeting, including availability control for appropriation and agency budgets

2. Financial Accounting and Reporting

3. Managing and Accounting for Incoming Grants

4. Managing and Accounting for Outgoing Grants

5. Managing and Accounting for Projects

6. Managing and Accounting for Fixed Assets

7. Managing Bank Accounting

8. Managing Revenues

9. Managing Procurement of Goods and Services

10. Managing Travel

11. Managing Inventories

12. Integration in support of Managing Human Resources

13. Managing Building and Grounds Maintenance

14. Managing Real Estate

B. The following Business Process Scope is considered optional. Prospective Contractors shall provide a cost estimate for these, though submissions for optional scope will not be considered for Evaluation. The cost proposed must be binding should the Department choose to implement these.

1. Managing Fleet

The State is looking at alternatives for managing fleet. It is evaluating outsourcing and insourcing options. Currently Fleet Management is limited to the Department of Public Safety. This is a highly customized solution that involves a custom workbench for importing Fleet Card files for invoicing and updating equipment measuring points.

2. Managing Loans Made

The State has one major program to provide loans for environmental infrastructure. The proposed contractor shall facilitate an effort to evaluate the costs and benefits of supporting this function using SAP’s Treasury Loans Management.

3. Streamlining Invoice Processing

In support of streamlining the Procure to Pay business processes, the Department wants to evaluate the costs and benefits of implementing a solution that supports goods receipt and invoice scanning, optical character recognition and machine learning to match documents to their associated purchasing document. In anticipation of this, the Contractor shall provide pricing for the implementation services required to implement this solution.

C. The Department is looking to standardize many of these processes so they are consistent across the organization, although programmatic requirements may require deviations from “Fit to Standard”. The Department has developed an initial list of Pain Points to help guide some of the Business Process Design Efforts. This list is provided in Attachment D: Pain Points. It will serve as an input to the Discussions Phase to discuss and finalize the Business Process Scope.

D. In addition to the Pain Points discussed above, the Department has identified a list of candidates for

Business Process Redesign, based on whether the anticipated process is new to AASIS, is currently inefficient, or is intensely manual. This list is included in Attachment F: Business Process Scope Mapped to Roles, Modules and Re-Engineering Candidates. It will serve as an input in the Discussions Phase as a starting point for finalized Business Process Scope and to aid in estimating the Business Process Design Activities.

2.7 ORGANIZATIONAL SCOPE

A. The Organizational Scope must include, but is not limited to:

1. 15 Executive Branch Cabinets, including all agencies within these cabinets

2. 5 Legislative Agencies, primarily to pay vendors, and record cash receipts and report financials

3. 4 Judicial Branch Agencies, primarily to record ad report daily and year-end-close activity

4. 3 Constitutional Agencies that are actively using AASIS across the spectrum of its functionality

5. 6 Independent Agencies that are actively using AASIS across the spectrum of its functionality

6. 11 Reporting Agencies that primarily send interface files to record their Treasury Activity, including the Department of Transportation and several technical colleges

7. Several Higher Education Systems that primarily send interface files to post financial transactions

8. 4 Service Bureau Agencies that are supported centrally as requested

B. The Organizational Scope may be subject to change due to, for example, reorganizations and/or an agency opting to shift from a reporting agency to a user agency.

2.8 MODULE AND BUSINESS PROCESS SCOPE

A. Modules for the AASIS S/4HANA Upgrade must include the following:

1. Financial Accounting

a. General Ledger

b. Accounts Receivable

c. Accounts Payable

d. Fixed Assets

e. Bank Accounting

f. Migration of Special Purpose Ledger to the Universal Document Journal

g. Evaluation of SAP’s SAP Master Data Governance application vs S/4HANA FI Master Data Maintenance business processes to determine the costs and benefits of using this tool to manage distributed requests for master data flowing through to a Central Master Data Maintenance section.

2. Controlling

a. Cost Center Accounting

b. Internal Orders

c. Activity-Based Costing

d. Profit Center Accounting

3. Project Systems

4. Flexible Real Estate Management

5. Public Sector Management

a. Funds Management

b. Grants Management (Grantor and Grantee)

6. Logistics

a. Purchasing, including Requisitions, Contracts, RFP, Quotes, Purchase Orders and Logistics Invoice Verification, and Service Entry Sheets

b. Inventory Management, both valuated and unvaluated

7. Sales and Distribution

a. Sales

b. Billing

8. Travel

a. The Department anticipates using Concur as the Travel Management Solution. The Contractor shall propose any alternative solutions during the Discussions Phase.

B. For S/4HANA Modules, incorporated by reference is a list of roles mapped to these modules from SAP’s Fiori App Library located at SAP Fiori App Library. The Department has developed list of Roles mapped to Modules and Business Processes to help guide the definition Module/Fiori App Scope. This list is provided in Attachment F: Business Process Scope Mapped to Roles, Modules and Re-Engineering Candidates. It will serve as an input to the Discussions Phase to discuss and finalize the Business Process and Module Scope

2.9 MASTER DATA REDESIGN SCOPE

A. The Department is interested in significantly redesigning its financial data classification structures, both to solve some financial reporting challenges and to position itself to take advantage of future investments in SAP to enhance Public Sector Best Practices. A summary of a potential Master Data Redesign, as well as a more detailed presentation of SAP Best Practices were two of the work-products for the S/4HANA Upgrade Planning Project. These are included as attachments to this RFP.

See Attachment G: Chart of Accounts and Financial Master Data Redesign Summary Presentation and Attachment H: Chart of Accounts and Financial Master Data Redesign Documentation.

B. The Contractor shall review the work performed during the Planning Project and make recommendations for any adjustments given their experience.

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/ListView

C. The Contractor shall provide the To-Be Business Process Design for maintaining each master data structure, including whether they are centrally maintained statewide or at the agency.

D. The Contractor shall manage the design and development for any Conversion FRICE-W objects.

E. The Contractor shall collaborate with State Team Members to implement the results.

2.10 DEVELOPMENT SCOPE

A. While the State realizes that the approach of “Fit to Standard” is desired, it realizes that this is not always practical, especially when meeting legal, regulatory or internal control requirements. A list of Anticipated Development Items is included in Attachment I: Anticipated Development Efforts. This list must be used during the Discussions to communicate the nature and complexity of proposed Development Scope.

B. The list must be finalized during the Explore Phase (or the corresponding Phase in the Proposed Contractor’s methodology) to determine the list of Forms, Reports, Interfaces, Conversions, Enhancements and Workflows that will comprise the Development Scope for the Project.

C. The Contractor shall include its methodology for developing a final “Fit-Gap” list of Software requirements that will be addressed in the development scope to be delivered during the Discussions phase.

2.11 CONVERSION SCOPE

A. The Conversion Scope for the S/4HANA Upgrade Project must include but is not limited to:

1. In-Scope Master Data for all modules implemented

2. Initial and/or Historical Balances, such as general ledger beginning balances and inception-to-date Grant and Project Balances

3. Open Items, such as Vendor and Customer Invoices

4. Implementation of an Extract, Transform and Load data migration tool to support transitioning from current to new master data structures and other conversions

5. Development of a transition tool that will allow users to input current coding block codes and return the corresponding S/4HANA coding block candidates. The intent of this requirement is to aid in the transition and the Department does not anticipate that it will be maintained for any new values after go-live.

B. An initial list of Conversion Candidates is included in Attachment I: Anticipated Development Efforts in the Conversion Candidates tab. This list is intended to be a starting point for finalizing Conversion Scope during the Discussions Phase. This list will be used during the Discussions to communicate the nature and complexity of proposed Conversion Scope. This list will be finalized during the Explore Phase (or the corresponding Phase in the Proposed Contractor’s methodology) to determine the list of Conversions to be delivered.

C. For the Discussions Phase, the Contractor shall document the approach for migrating data from AASIS ECC to AASIS S/4HANA, including a discussion of what Extract, Transform and Load (ETL) tools they are proposing, if any.

2.12 WORKFLOW SCOPE

A. The State anticipates widely deploying workflow to support master data maintenance and for agency and state-wide approvals across the deployed functionality. An initial list of Workflow Candidates is included in Attachment I: Anticipated Development Efforts in the Workflow Candidates tab. This analysis must be used in the Discussion Phase to finalize the Workflow Scope

2.13 INTERFACE SCOPE

A. The Interface Scope for the AASIS S/4HANA Upgrade Project must include but is not limited to the following:

1. Inbound Financial Transactions from interfacing agencies

2. Outbound Interfaces, as needed to support legacy systems that will not be replaced

B. An initial list of Interface Candidates is included in Attachment I: Anticipated Development Efforts in the Potential Intfc Scope tab, which is based on currently scheduled interfaces that are included in the Potential Intfc Analysis tab. This list is intended to be a starting point for finalizing Scope during the Discussions Phase and to organize the work needed to determine the Replace or Interface status as part of the Explore Phase (or its equivalent phase in the Proposed Contractor’s methodology). This list must be used to communicate the nature and complexity of potential interfaces for delivery during the Realize Phase.

C. In addition to the development efforts of the S/4HANA project team, the Contractor shall work with interfacing Agencies to track and report the Status of Agency In-bound and Outbound Interface development efforts as a project dependency in order to help monitor the risk of Agency interfaces not being delivered in a timely fashion. This status, once final Interface Scope is defined, must be reported as part of the periodic Status Reports and will also be included as an agenda item in the periodic Governance/Steering Committee updates.

2.14 ANTICIPATED DEVELOPMENT SCOPE

A. Other anticipated development efforts include, but are not limited to the following:

1. Enhancements

2. Forms

3. Reports

B. The S/4 Upgrade Planning Project included a review of existing Custom Objects to identify potential Development Candidates. It has grouped these objects into Anticipated Development Efforts. A summary of these efforts is included in Attachment I: Anticipated Development Efforts in the Other Anticipated Dev-Summary tab which links to the last tab Anticipated Custom Dev-Detail, through the common column Anticipated Development Efforts

2.15 ADDITIONAL REPORTING REQUIREMENTS

A. The Department anticipates a heavy reliance on SAP Analytics Cloud (SAC) to address reporting gaps. In addition to the reporting requirements identified in the Anticipated Development Scope, the Prospective Contractor shall address deficiencies in SAP Delivered Core Data Services (CDS) Views. The Planning Project team has evaluated the fit for public sector of standard delivered CDS View Content. While many of the standard structures use the standard Cost Objects, they may not have the public sector specific objects, such as fund and grant. Using ABAP Development Tools, one can define extensions for CDS views if SAP has released it for developer extensibility. As a key user, you can add your own custom fields or SAP standard fields using the Custom Fields app if SAP has released it for field extension.

B. The Contractor shall assess standard CDS Views in conjunction with the State Team to determine whether they already include necessary public sector specific content. If not, determine whether they are extendable. If so, then document the functional and technical design changes needed as part of the finalization of the Development Scope

2.16 LANDSCAPE REQUIREMENTS

A. The Contractor shall provide access to a Demo system from Project Initiation until the Development environment is provisioned.

B. DFA anticipates deploying a necessary number of systems to fully support the upgrade, including development, testing, training, and production. The Contractor shall propose a system landscape that supports this objective, both for the project (given widespread training requirements) and for production configuration promotion of system changes.

2.17 INTEGRATION SCOPE

A. The Integration Scope for the AASIS S/4HANA Upgrade Project must include, but is not limited to the

1. Human Resource Management (both inbound and outbound). The target system for integration is not yet finalized, but the Department has drafted an initial list of integration candidates for use as a starting point in determining Integration Scope. This list is included in Attachment J: Anticipated HR/Payroll, Budget, and Travel Integration Scope. This list will be used during the Discussion Phase to finalize Integration Scope.

2. Budget Preparation (both inbound and outbound). The target system for integration is not yet finalized, but the Department has drafted an initial list of integration candidates for use as a starting point in determining Integration Scope. This list is included in Attachment J: Anticipated HR/Payroll, Budget, and Travel Integration Scope. This list will be used during the Discussion Phase to finalize Integration Scope.

3. Travel Management (both inbound and outbound). To exchange required Master Data from

AASIS S/4HANA and manage availability control and accounting for Travel and other Reimbursable Expenses in Accounts Payable and Funds and Grants Management. This list is included in Attachment J: Anticipated HR/Payroll, Budget, and Travel Integration Scope. This list will be used during the Discussion Phase to finalize Integration Scope

4. Continued Integration with Vertex tax software or a similar alternative. If Vertex, the Department will include an upgrade to Vertex software and integration to latest version. The vendor shall document an installation and testing path for future releases.

2.18 DEPLOYMENT REQUIREMENTS

A. The Contractor shall finalize the deployment approach (Bluefield vs. Greenfield, noting that the state does not want to pursue a Brownfield solution, unless there is a persuasive reason to do so).

B. The Contractor shall finalize the selection of a technical platform, noting that the state does not want to pursue implementing S/4HANA public edition, but will evaluate On-premise vs. Private or Hybrid Cloud.

C. The Contractor shall finalize the redesign and implementation of financial Master Data use.

D. The Contractor shall finalize either a Phased Approach (with a preference with Phased by Function, rather than Phased by Organization) or a “Big Bang” approach for rolling out functionality. The Phased approach should explore focusing on “Core Functions”, such as Grant Accounting and Grant

Billing, while implementing and deploying other "Non-Core Functions” such as Grant Program Reporting, in a later Phase.

E. An initial analysis of the Deployment Approach Options is included as Attachment K: Deployment

Approach Options. This analysis is intended for use in the Discussion Phase to finalize the Deployment Approach Scope.

2.19 SOFTWARE REQUIREMENTS

A. While the Department expresses a preference to “Fit to Standard” for most of the daily activity supported by the deployed functionality, there are situations where legal, regulatory, internal control or federal requirements must be met.

B. To the extent that these are known, the Contractor shall maintain a list of mandatory and optional software requirements. These requirements, during the Explore Phase (or corresponding Phase of the Contractor’s proposed methodology), must serve as the basis for a fit-gap exercise to assist in finalizing Business Process and Development Scope to be delivered in the Realize Phase (or corresponding Phase of the Proposed Contractor’s methodology).

C. An initial list of draft software requirements is provided in Attachment L: Requirements Traceability

Matrix - Software Requirements. This is not an exhaustive list. It does not include software requirements that are currently met within standard ECC v6.0 (assuming that functionality that is standard in ECC 6.0 is also standard in S/4HANA), nor does it exhaustively duplicate the list of Anticipated Development referenced in Sections 2.10-2.15. This list must be used during the Discussions Phase to develop an initial list of software requirements to be used as a starting point for the Software Requirements documentation activities of the Explore Phase (or the corresponding Phase in the Proposed Contractor’s methodology).

2.20 PROPRIETARY SOFTWARE

A. Any proprietary software that is part of the Contractor’s proposed software scope must be licensed and supported by the company that owns the licenses. This support must be available for the duration of the project and through the Production Support phase. Should support be withdrawn for a product, the Contractor shall work with the State to determine alternatives. The Department reserves the right to approve any proprietary software proposed by the Contractor.

2.21 CHANGE MANAGEMENT

A. The Contractor shall provide a proposed Change Management Plan during the Discussions Phase based on their proposed methodology. The plan must include but is not limited to the following:

1. Implementation of a Change Management Strategy and Plan, including organizational redesign in support of transformational business process reengineering and implementation of new functionality

2. Implementation of a Communications Strategy and Plan

3. Implementation of a Project Team Education and Development Strategy and Plan

4. Implementation of an End-User Training Strategy and Plan

5. Implementation of an Organizational Redesign for the ongoing Support Center

6. Implementation of an Ongoing System Configuration and Development Support Strategy and Plan

7. Coordination of Leadership Alignment across the Executive Branch Departments, Legislative, Constitutional and Independent Agencies

2.22 KNOWLEDGE TRANSFER

A. The Contractor shall provide a Knowledge Transfer Strategy and Plan as part of the Project Prepare

Phase (or the corresponding Phase in the Contractor’s proposed methodology). The Contractor shall provide a sample Knowledge Transfer Plan during the Discussions Phase, B. The plan must include measurable progress objectives.

C. The Contractor shall include Project Team Knowledge Transfer progress as part of its Periodic Status Reports.

D. The Contractor shall facilitate a periodic 360 degree review of Knowledge Transfer that provides

State Team members with an opportunity to provide feedback on their confidence that they will be able to support the system after Production Support is finalized.

2.23 TRAINING ENVIRONMENT

A. The State is looking to re-institutionalize an AASIS training program, both for delivery of project training and for ongoing training for new hires or transfers. The Contractor shall provide the following:

1. A Training Needs Assessment.

2. Development of training materials (Catalog, curricula, and training outlines)

3. Sufficient training developers to deliver project team training content

4. Organizational design for the Training Delivery unit

5. implementation of a new Training Delivery unit (which can be either outsourced or insourced).

2.24 TESTING

A. The Contractor shall provide a proposed Testing Strategy and Plan during the Discussions phase.

The Testing Plan must, at minimum, address the following:

1. Development of a Testing Strategy

2. Development and implementation of a Testing and Defect Management Plan, including selection and deployment of potential automated testing tools

3. Unit Testing S/4HANA configuration and development items, including testing handoffs between business process steps in a String Test

4. Integration Testing for all end-to-end processes, including inter-module and inter-system integrations (for example, from Requisition to Contract, Requisition from Contract, Requisition to Purchase Order, Goods Receipt, Invoice Receipt, through the Payment Run in AASIS, to the creation of a Warrant interface file for delivery to Auditor of State, and finally through the outstanding warrant clearing process)

5. Role-based Security Testing

6. Penetration Testing

7. Accessibility Testing

8. Regression Testing during the project when new Releases are installed

9. Volume and Stress Testing, including Network Traffic testing (For example, Treasury Bank Reconciliation for Outgoing warrants (e.g., Payroll and AIRS tax refunds both incoming at peak tax return season)

10. User Acceptance Testing

11. Development of a Production Support Testing Strategy and Plan

2.25 POST GO-LIVE SUPPORT

A. While the Department anticipates that post go-live support requirements will be finalized as part of the Cutover planning effort, the Contractor shall include the following:

1. For new functions (Grants, Plant Maintenance, Real Estate) – up to 6 months

2. For existing functions – 1st 2 months 100% of project level staffing, declining over next 2 months and work-order based for up to an additional 8 months.

3. For financial reporting – 2 consultants for up to 7 months of first Fiscal Year End Close

(ACFR/SEFA)

2.26 PROJECT TIMELINE

A. DFA expects to upgrade at the end of Fiscal Year 2026. Below is a tentative timeline developed by

DFA-OIS. The Contractor should use this timeline in their development of a work plan. Please note that the State requires little to no downtime for the system. Contractor shall implement over the dates of 7/1/2026 to 7/5/2026 with the new system available for use on Monday 7/6/2026.

Milestone Tentative Date

Project Start July 2024 on a timeframe that doesn’t impact Fiscal Year End Close

Project Team Kickoff Beginning of August 2024

Discovery July 2024 to August 2024

Prepare September 2024 to December 2024

Statewide Kickoff Meeting First week of October

Explore January 2025 to June 2025

Realize July 2025 to March 2026

Completion of Testing March 2026

Readiness Check End of March 2026

Go-Live / Deploy July 2026 after Year End Close in AASIS ECC

Post Go-Live Support As per Section 2.24

Support for ACFR/SEFA June 2027 to December 2027

B. The Contractor shall propose a final Project Timeline within sixty (60) days of Contract Award. DFA shall have final approval of the Project Timeline.

2.27 PROJECT MANAGEMENT

A. The Contractor shall propose a suitable project manager/team with diversified expertise to meet the requirements of the Project.

B. The project manager/team shall provide overall project management throughout the life cycle of the project to ensure successful implementation of the solution and overall end user adoption.

C. The State highly prefers that the Contractor PM have the PMP (Project Management Professional) certification.

D. The Contractor shall provide resources to manage and maintain the project plan and any project tracking tools.

E. The Contractor PM shall work with the State PM to define, document, and allocate project roles and responsibilities as per the State and Contractors agreed upon path.

2.28 PROJECT WORKPLAN

A. The Contractor shall provide a proposed Project Work Plan during the Discussions Phase.

B. The Project Workplan must identify Phases, Activities, Tasks, Resource Assignments, planned start and completion dates, actual start and completion dates, estimated task hours, and completion percentage for all in-process tasks. It is envisioned that the task plans will be revised from time to time with mutual participation and agreement.

C. All dates must be arranged so as not to adversely impact normal processing cycles of the Production environment. Special care must be given to payroll cycles, year-end SAP system upgrades, Fiscal Year End processing, and Calendar Year End processing.

D. The Contractor shall organize the Project Workplan to correspond with their proposed

Implementation Methodology.

E. The Contractor shall prepare and deliver a finalized and detailed Project Work Plan for Department approval within fourteen (14) days of Contract Award.