State_of_Arizona_Amendment_25_Exhibit_G_-_CGI_Cost_Proposal_Summary_-_Redacted.pdf

CGI Response to the State of Arizona – Amendment Twenty-Three Cost Proposal Summary Arizona Financial Information System (AFIS) Replacement;

Sollicitation No. : ADSP013-00001953 7 March 31, 2022

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Table 4: Amendment 22 vs. Amendment 23 Pricing with Total Cost Option A

Sollicitation No. : ADSP013-00001953 8 March 31, 2022

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Table 5: Amendment 2 vs. Amendment 1 Pricing with Total Cost Option B

Table 6 (Amendment 2 vs Amendment 1 Pricing with Total Cost Option B) has been deleted based on the State’s decision for CGI to provide the Hosting Services.

CGI has populated the Cost worksheets with information from our proposed work plan. It is fully anticipated during Project Initiation activities the work plan and corresponding cost schedules will be updated. The information provided should give the State information needed to drive the final budget allocation for the project. CGIs response is fully compliant to the State RFP. To be fully compliant, CGI made the following cost assumptions in generating the proposed costs:

CGI fully anticipates final work plan and cost schedule adjustments based upon project start and final contract discussions with the State will be made upon contract negotiations and project start-up activities.

The Vendor responsibility for production operations not only includes the maintenance and support of the application, but of the infrastructure purchased by the Vendor for the operations (hardware, database, operating system, for example).

State staff levels are based upon our experience with other State’s similar in size to Arizona. Actual FTEs needed is dependent upon level of availability/commitment, experience level, functional knowledge, functional skills and technical skills. Staff levels

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Please see reports with functional area of State Transportation Improvement Program (STIP) (2,482 hours)

STIP License $291,600 Schedule 5

Advantage Performance Budgeting & Formulation license

STIP Maintenance for contract term $703,591 Schedule 5

Advantage Performance Budgeting & Formulation maintenance

Total $1,803,051

1.2 Schedule 2 – Services Cost

Schedule 2-Services Cost includes the cost by position and month in delivering ERP services for implementing the CGI Advantage solution for the AFIS replacement project. CGI is proud to present an experienced CGI Advantage ERP team with a specially discounted blended rate of $119.40 per hour to deliver a successful implementation.

1.3 Schedule 3 – Development Cost

Schedule 3-Development Cost includes development costs for the State of Arizona modifications, interfaces, conversion, infoAdvantage data warehouse changes, infoAdvantage reports creation, and development pool of hours. Hours for configuration are not reflected in this Cost Schedule. Configuration would include activities such as business rule setup within the CGI Advantage ERP or business intelligence toolset. The development hours by work stream are shown in the table below.

Sollicitation No. : ADSP013-00001953 16 March 31, 2022

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1.6 Schedule 6 – Hardware Costs

Schedule 6 Hardware Costs inventories hardware for the State supported on premise production operations scheduled July 2015.

The hardware itemized in this schedule will not be required by the State if the Optional Production Hosting services are provided by CGI, as outlined in Schedule 9, are leveraged. This hardware is required for a State hosted on premise solution only.

Based on the State’s decision to secure the Hosting Services to be provided by CGI, the hardware costs included in this Schedule have been deleted.

1.7 Schedule 7 – Labor Rates Schedule

Schedule 7-Labor Rates Schedule provides billing rates (all inclusive of travel and expenses) for a range of different skill areas. This schedule provides multiple tiers of CGI resources for various positions that align to the cost schedule. These rates are intended for use with unforeseen changes in scope that the State requests CGI to support on a time and materials basis. The rates are consistent for the duration of the project.

1.7.1 Schedule 7c – Blended Labor Rates

Schedule 7-Labor Rates Schedule provides a blended billing rate for each State Fiscal Year (exclusive of travel and expenses). These rates are intended for use with unforeseen changes in scope that the State requests CGI to support on a time and materials basis, or for increases in Fixed Capacity for Local Support Services (see Exhibit K – Consulting Services SOW 2).

1.8 Schedule 8 – Project Team Training Costs

Schedule 8-Project Team Training Costs provides an inventory of all training classes targeted for the State project team as part of the AFIS replacement.

Project Team Training is priced at a group rate for 15 staff. We anticipated more than 15 staff would need project team training for select subjects and, as such, included training for two or three groups of 15 staff each (i.e., 30-45 project team members). Project Team Training costs are reduced by reducing the number of State staff being trained from two groups to one group of students for certain sessions. Please see Appendix G – Advantage Learning Program Course Catalog, for an inventory of all classes, including a note for those that are earmarked for delivery two or three times. The project team will work with the State as needed to support additional attendees beyond the noted class size in the course catalog.

CGI has included a third Financial Product Walkthrough session to provide flexibility to the State in delivering training to key department users not part of the defined project team. This 4 day overview of Advantage Financial solution includes lecture, demonstration, and hands on exercises in a live training environment.

CGI will provide access to the CGI Advantage hosted training environment and associated Independent Study Guides (ISG) for the duration of Phase 2 – Implementation. The State may

Sollicitation No. : ADSP013-00001953 17 March 31, 2022

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leverage the ISG curricula for any State user. The environment will be refreshed quarterly to allow reuse of the training data setup for use with the Independent Study Guides.

Sollicitation No. : ADSP013-00001953 19 March 31, 2022

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Item 2 is Microfocus SilkPerformer license leased for use during a 30 day performance testing period prior to go live and is included in this cost schedule.

1.11 Schedule 11 – Budget & Travel Svcs Costs

Schedule 11-Budget Development and Travel Module Services costs inventories the services associated with the optional components of Budget Development and Travel. The State must decide by no later than October 1, 2013 in order to implement the optional travel component and by February 1, 2014 to implement the optional budget development component by the scheduled go live date of July 2015. Schedule 11 includes the Travel Module services cost based on the State’s decision to implement the optional Travel component. Schedule 11 does not include Budget Development services cost based on the State’s decision to not implement the optional Budget Development component.

1.12 Schedule 12 – Deliverable Payment Schedule

Schedule 12 - Deliverable Payment Schedule provides all service deliverables and associated retainage and retainage release payment months.

Based on the State’s request, CGI has tracked the work effort as compared to the invoice amounts by month. This information is displayed in the table below for the project from March 2013 through June 2017. The cumulative gross invoice amount (represented by the orange line) never exceeds the cumulative effort (represented by the blue bars). The exhibit below provides a graphical view of CGI work effort (cumulative cost) as compared to the invoiced amount by CGI (cumulative gross invoice) by month.

Sollicitation No. : ADSP013-00001953 20 March 31, 2022

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Exhibit 1: Cumulative Gross Invoice vs. Cumulative Costs by Month

The exhibit below provides the same information as shown in the previous table but by State Fiscal Year. The orange line represents the cumulative services costs as compared to the cumulative invoice amount by year. The blue represents the cumulative gross invoice amount.

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e. Split the Project Team Training deliverable into a BPR and an Implementation Phase deliverable to accommodate the on-boarding of the State’s staff

f. Revised the delivery date of the Communication Plan to align better with the BPR Phase effort

g. Modified deliverables to identify optional post implementation summary for Budget Preparation and Travel.

6. CGI revised deliverables and/or their estimated payment values to reflect revisions in requirements status.

a. Review and estimation of the Functional Requirement have resulted in revision of level of effort for enhancements

b. Review and estimation of development and implementation work

7. CGI modified the payment retainage terms as discussed with the State to contribute to additional cost savings. The retainage release schedule includes:

a. Adjusted Retainage holdback amount to 15%

b. 50% of retainage released prior to system acceptance

c. Retainage Release Schedule that follows enabled CGI to reduce the State cost by

$75,000:

d. Initiation and Planning Retainage Release

e. Fit Gap Retainage Release

f. To-Be Process Retainage Release

g. Configuration and Development Retainage Release

h. Testing Retainage Release

i. Deployment Retainage Release

j. All Phases I and II Deliverables Retainage Release

1.13 Additional Services Hours

Schedule 13 - Additional Services Hours includes the hours by position and month for delivery of additional support services to implement the Arizona Advantage solution for the BREAZ Project. The scope of services, as requested by the Arizona Department of Security (DES), will include one and one-fifth CGI Full Time Employee (½ time Financial Analyst-Sr, 1/5 time Financial Analyst-Sr, and ½ time Financial Analyst- Jr) who will support the DES project team and department staff in BREAZ implementation activities. An additional one-fifth CGI Full Time Equivalent Financial Analyst Sr (32 hours per month) and 1 Full Time Equivalent Financial Analyst Jr (168 hours per month) added from January 2015 through March 2015. The scope of services, as requested by the Arizona Department of Security (DES) will include an additional one-fifth Full-Time Equivalent Financial Analyst Sr (32 hours per month for 3 months), two-fifth Full-Time Equivalent Financial Analyst Sr (64 hours for 2 months), and one-half Full-Time Equivalent Financial Analyst Jr (84 hours per month for 5 months) added from April 2015 through December 2015. The scope of services, as requested by the Arizona Department of Security (DES) will include an additional three-quarter CGI Full Time Equivalent Financial Team Lead (126-132 hours per month) and 1 half-time equivalent Financial Analyst Sr (84-92 hours per month) added from January 2016 through June 2016. The scope of services, as requested

Sollicitation No. : ADSP013-00001953 23 March 31, 2022

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by the Arizona Department of Security (DES) will include an additional three-quarter CGI Full Time Equivalent Financial Team Lead (126-132 hours per month) added from July 2016 through June 2017 and the reduction of 64 hours for the 1 half-time equivalent Financial Analyst Sr (June 2016).

The scope of services, as requested by the Arizona Department of Security (DES) will include an additional three-quarter CGI Full Time Equivalent Financial Team Lead (120-138 hours per month) added from July 2017 through September 2017.

1.14 Additional Services Cost

Schedule 14 – Additional Services Cost includes the cost by position and month for delivery of additional support services to implement the Arizona Advantage solution for the BREAZ project.

The services cost is based on the rates by Job Classification in Schedule - Labor Rates Schedule.

1.15 DCS Services Cost

Schedule 15 - DCS Services Cost for support provided to DCS by CGI for July, August, September, October, and November 2015.

1.16 Managed Advantage Services Cost

Schedule 16 – Managed Advantage Services Cost is for the Managed Advantage Services and Discretionary Hours for CGI support during the term of the Managed Advantage Statement(s) of Work and Advantage 4 Upgrade Statement of Work. Three thousand (3,000) Discretionary Services hours will be available to the State on an annual basis beginning with the State’s Fiscal Year 2017 through Fiscal Year 2025. If there are unused Discretionary hours at the end of a fiscal year, the unused hours limited to a maximum of 300 hours, may be rolled over to the next fiscal year. The rolled-over hours must be used in the year to which they are rolled unless otherwise mutually agreed upon. Discretionary Support for the State’s Fiscal Year 2017 through 2022 are defined in Exhibit C (Managed Advantage SOW 1) and for the State’s Fiscal Year 2023 through 2025 are defined in Exhibit I (Advantage 4 Upgrade).

See Section 2, which includes Early Termination Fees related to Managed Advantage Services.

1.17 ADOT Data Warehouse Support Services Cost

Schedule 17 – For Data Warehouse Support Services Cost for services requested by the Arizona Department of Transportation (ADOT). The services will be provided by CGI staff for 10 hours per week from January 2016 through June 2016. The scope of services, as requested by the Arizona Department of Transportation (ADOT) will include an additional two hundred and

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thirty-two (232) hours to be provided by CGI Financial Team Lead from July 2016 through December 2016. The scope of additional services, as requested by the Arizona Department of Transportation (ADOT) will include an additional two hundred and sixty (260) hours to be provided by the CGI Financial Team Lead from January 2017 through June 2017.

The scope of additional services, as requested by the Arizona Department of Transportation (ADOT) will include an additional one hundred and twenty six (126) hours to be provided by the CGI Financial Team Lead from July 2017 through September 2017.

1.18 AHCCCS Managed Advantage Services Cost

Schedule 18 – Managed Advantage Services Cost is for the Managed Services requested by the Arizona Health Care Cost Containment System (AHCCCS) for a testing environment during the term of the Managed Advantage Statement of Work.

1.19 ADOT System Deliverable Costs

Schedule 19 – For ADOT System Deliverable Costs for the development of agency specific software requested by the Arizona Department of Transportation (ADOT). The development services will be provided by CGI staff. The scope of development, as requested by the Arizona Department of Transportation (ADOT) will include three (3) new interfaces and one interface update.

1.20 DES System Deliverable Costs

Schedule 20 – For DES System Deliverable Costs for the development of agency specific software requested by the Arizona Department of Economic Security (ADES). The development services will be provided by CGI staff. The scope of development, as requested by the Arizona Department of Economic Security (ADES) will include budget structure creation, validation tables, and new universes.

1.21 Managed Advantage Upgrade - 1

Schedule 21 – For supplemental services to be provided by CGI to support the first Managed Advantage upgrade from 3.10.1 to 3.11. This includes services that are not covered in the standard technical upgrade services included in the Managed Advantage agreement(s).

1.22 Advantage 4 Upgrade Costs

Schedule 22 – For Consulting Services to be provided by CGI to support the Advantage upgrade from 3.11 to 4. The services are detailed in Exhibit I (Advantage 4 Upgrade). Added with Amendment 23.

Sollicitation No. : ADSP013-00001953 26 March 31, 2022

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