Attachment_1__SOO.docx

United States Mint Order Management System Retail Sales End-to-End Solution Statement of Objective (SOO)

UNITED STATES MINT

Version 2.4 Date: 2/8/2013

ATTACHMENT 1 - SOO

DRAFT - Acquisition Sensitive

Table of Contents

Overview The United States Mint (USM) was created by Congress in 1792. The USM is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The USM also produces numismatic (collectible) products including proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum collector and bullion (investment) coins. The USM’s numismatic programs are self-sustaining and operate at no cost to the taxpayer. The USM numismatic program currently operates four sales channels: online, phone, mail ordering and over-the-counter sales. Additionally, it conducts business-to-business transactions for its investment coins and bulk purchase program.

USM's numismatic mission is currently supported by the Integrated Retail Information System (IRIS). IRIS is comprised of systems, applications, and business processes, all in constant communication in order to effectively support the USM numismatic sales function for general public customers and businesses. The IRIS system, implemented in 2001, includes an Order Management System (OMS), an e-commerce website (catalog.usmint.gov), and an order fulfillment/warehouse management system. While the IRIS system was “state-of-the-art” at the time of implementation, minimal upgrades have occurred in subsequent years.

In order to adopt standard retail industry processes for e-commerce, order management and fulfillment functions, USM plans to implement a turnkey solution that, with minimal configurations, can capitalize on best practices of the current retail e-commerce industry.

Some general facts about USM’s numismatic business:

· 38.5 million units sold over the last five years

· $2.6 billion in sales revenue over the last five years

· 600,000 – 800,000 telephone calls per year

· 1.7 to 2.5 million orders per year over the past 5 years

· 1 million active customers over last two years, 6+ million customer database

· Approximately 450 – 500 product SKUs

USM’s retail sales are received through four primary channels:

· Contact center is approximately 14% of orders received and fulfilled

· Online is approximately 78% of orders received (includes subscription orders only available online)

· Direct mail is approximately 7% (through Government “lock-box” services)

· Over-the-counter sales (two locations) is approximately 1% of orders received

Scope USM currently uses IRIS to perform selling, accounting, fulfillment and customer service activities required in numismatic operations. Among all the system components in IRIS, USM uses MICROS-Retail CWDirect®v7 application for order management across all channels including the contact center interface and IBM WebSphere Commerce v5.6 e-commerce solution. The hardware and software is currently hosted in a data center. The USM fulfillment center uses Bastian Solutions Exacta as the application for warehouse management. The USM does not have a separate customer relationship management (CRM) application. Customer service representatives use CWDirect as the CRM tool for managing customer information. The order management system integrates with pay.gov (an application provided by the federal Government free of charge to federal agencies) and Oracle EBusiness Suite Federal financials and manufacturing modules.

This Statement of Objectives (SOO) scope covers the entire USM numismatic program. The numismatic program includes the business processes of direct-to-consumer/business sales operations over all sales channels. The current business processes include contact center and fulfillment operations, an integrated order management system and warehouse fulfillment application, the e-commerce platform and host site. The scope also includes acceptance of mail orders through a data feed and point-of-sales (POS) system that will capture and manage sales from USM retail outlets (POS is currently stand-alone).

Additionally, the scope includes the need for business analytics and a customer relationship management solution, as well as business-to-business solutions (online ordering for bulk).

The successful Contractor shall provide an end-to-end solution that includes all operational components necessary for the USM to conduct the numismatic retail program. End-to-end scope is defined as a turnkey retail service solution that includes:

· Hardware

· Software

· Hosting

· Operations and maintenance

· Staffing for contact center and fulfillment warehouse operations

· All contact center functions and equipment

· Physical fulfillment warehouse and manage the fulfillment function

· Receiving and shipping

· Business and system performance analytics

· Sales fraud detection

· Physical product security

· System cyber security

· Integration with USM internal and external systems

The SOO overview and scope above describe basic business functions and supporting IT systems needed to conduct the USM retail business. The USM is looking for a commercial business provider with extensive retail business expertise to replace and run the USM numismatic systems and processes by providing a comprehensive turnkey solution. The full service provider’s solution must handle the USM business post manufacture of USM numismatic products.

Program Objectives The Contractor’s proposed solution to the USM shall, at a minimum, meet the following program objectives:

· Provide as a service, an end-to-end retail solution that utilizes the Contractor’s currently existing operational infrastructure and includes all operational components necessary for the USM to conduct the numismatic sales business.

· Provide a secure, scalable, flexible, reliable turnkey retail service solution that meets all the functional and business needs identified in Appendix A of the SOO.

· Integrate the end-to-end retail solution with USM’s internal and external systems identified in Section 6 of the SOO to maximize interoperability and compatibility for exchanging data.

Business Objectives The Contractor’s proposed solution to the USM shall, at a minimum, meet the following business objectives:

· Provide the USM numismatic customer a state-of-the-art experience across USM’s existing communication and ordering channels – POS, mail, phone, internet – and new ones – like chat, mobile, and email – from the time an order is placed until received by the customer.

· Evolve business model and supporting business systems and processes to meet industry standards.

· Stay current with all hardware and software to meet industry standards and best practices.

· Keep pace with emerging technologies and capabilities throughout the life of the contract.

· Provide to the numismatic customer a fast, stable, and secure customer experience.

· Maintain system integrity during peak demand.

· Ensure that the turnkey retail solution delivers meaningful business analytic information USM to help it responsibly manage and grow the numismatic business.

· Improve capabilities to the USM to include order processing and fulfillment cycle times.

· Reduce USM cost of operations.

· Deliver a business solution using performance-based contracting techniques with incentives designed to reward superior performance (e.g. customer satisfaction, timely submission of deliverables) and disincentives to penalize poor performance based on commercial quality standards. The Contractor shall propose metrics to measure and manage performance.

Conditions The Contractor’s proposed solution to the USM must adhere to the following conditions:

1. Go-Live shall be no later than October 1, 2014.

1. USM shall be the merchant of record.

1. The Contractor shall deliver a Contractor owned, Contractor operated system. The Government will not own any hardware, software, facilities, or other physical infrastructure.

· The Contractor’s IT systems that are used for the USM solution shall meet federal IT security requirements prior to the Government’s acceptance of any turnkey solution.

· The Contractor shall comply with USM’s physical security requirements.

· The Contractor shall commit to a zero loss standard for all designated gold, silver and platinum.

· The Contractor shall keep all collected data for a minimum of six (6) years, three (3) months from the collection time.

· The Contractor shall manage and control the turnkey retail solution.

· The Contractor shall act as the prime integrator for the turnkey retail solution.

· The Contractor shall be responsible for connectivity and network connection between its environment and the USM’s internal and external systems[footnoteRef:1][1]. [1: [1] Internal and external systems include pay.gov, Citigroup, Oracle ERP, USM Data Mart, etc..]

· All operations, data, systems, and disaster recovery site(s) shall be located within the United States.

· All contractor personnel with access to USM products and data must pass a public trust background check.

· Systems must be compliant with all applicable federal laws and regulations, including Section 508 compliance.

Minimum Performance Work Statement (PWS) Tasks The Contractor shall propose a PWS in response to this SOO. At a minimum, the Contractor PWS shall address the below task requirements. It is the discretion of the Contractor to propose additional tasks or combine tasks if needed. The Contractor will be required to support the USM in Milestone Decision Reviews and will not progress to the next task phase without authorization and approval from the USM.

1.1 Program Management

This task shall identify the work required to manage and perform all the activities in this scope of work up to the point of completing the transition-out. The Contractor shall provide and manage resources to execute tasks and produce deliverables as defined in the PWS. The Contractor shall be responsible for providing, managing, and overseeing its personnel as well as any subcontractor efforts used in performance of this scope of work. The Contractor shall provide a transition out deliverable to include the transition of entire USM data in industry standard formats such as comma separated value format.[footnoteRef:2] [2: USM data includes customers, orders, financial, inventory, etc.]

1.2 Logical Design Phase (Analysis and Design)

This task, as a minimum, shall include a requirements gap analysis, development of design documents (as needed), project management planning (to include project scheduling, quality management, risk management), test planning, and transition-in planning (for contact center, warehouse, data, and inventory). This task shall also include the development of interface control documents with USM’s internal/external systems. At the conclusion of this task, the contractor will be provided authorization to progress to Task 6.3. The exit criteria for this phase are identified in Appendix B.

1.3 Physical Design Phase (Configuration and Implementation)

This task, as a minimum, shall include any necessary updates to the plans identified in the logical design phase, configuration and coding (if necessary), preparation of production environment(s), the execution of testing activities, integration, transition-in (to include data, inventory, contact center and warehouse), Contractor training, USM staff training, and deployment. The contractor shall deliver the functional and business operations needs identified in Appendix A. At a minimum, the Contractor is responsible for the integration of its system to the following seven individual internal/external systems utilized by USM[footnoteRef:3] (identified in Appendix D): [3: It is intended that integrations will utilize standard Applications Programming Interfaces (APIs)]

· Payment Processing – pay.gov[footnoteRef:4] (External System) [4: Reference Manual for pay.gov integration can be requested from the Contracting Officer]

Pay.gov is a credit card payment processing system provided by Department of Treasury at no cost to USM for processing credit card payments. There is a real time interface between OMS, web front-end, and Pay.gov for credit card authorizations, credit card payments, and refunds.

· Mail Order Processing – Citigroup Lockbox (External System) Citigroup provides lockbox functionality and processes all USM mail orders. There is an inbound file transfer batch process from Citigroup Lockbox to USM OMS. OMS then processes the file(s) and create orders in the OMS.

· USM Data Mart (MS SQL Server 2000) (Internal System) Collects information from the OMS and provides reporting capabilities on retail business performance, sales metrics, and marketing campaign management. Various jobs import data from OMS to the data mart.

· Oracle Federal Financials (Oracle EBS v11.5.10 or R12) (External System) The OMS interface to Oracle GL – Oracle Federal Financials module - brings in summarized financial information on order entry, billing, revenue, inventory, expenses, payables and accounts receivable processes for orders in the retail business.

· Oracle Manufacturing WMS (Oracle EBS v11.5.10 or R12) [footnoteRef:5] (External System) [5: Oracle Manufacturing WMS ships manufactured products to the fulfillment center]

Oracle Manufacturing WMS is used to manage movement and storage of raw materials, work in progress inventory, and finished goods.

· Oracle Inventory (Oracle EBS v11.5.10 or R12)[footnoteRef:6] (External System) [6: Fulfillment center warehouse management system is the system-of-records for inventory]

Oracle inventory is currently used to manage the inventory of items, and as well defines the items in the item master. The OMS interface to Oracle Inventory brings in detailed purchase order data to support the inventory control of stock requests of orders in the retail business.

· GovDelivery (External System) USM is capable of sending mass e-mails through GovDelivery. GovDelivery helps USM manage and deploy large e-mail campaigns. Users who have selected the option to receive marketing e-mails make up the distribution list. Currently, the file containing e-mail addresses and body of e-mail is uploaded manually into GovDelivery which then processes the request and sends e-mails out to customers.

As a part of the transition, the Contractor will be required to conduct data migration activities to include data cleansing.[footnoteRef:7] For all customers active in the last three years, the Contractor shall convert all of the customer data along with its entire history. [7: Data migration requirements: Product Data, Customer Data, Item Master, Orders, Open Sales Orders, and Open Purchase Orders from legacy systems.]

The primary objective of this task is to obtain a system that has reached Go-Live as defined in Appendix C without causing any disruption to operations or customer service. Upon achievement of Go-Live, the Contractor will be provided authorization to progress to Task 6.4. The exit criteria for this phase are identified in Appendix B.

1.4 Operations and Maintenance Phase

This task, at a minimum, shall address all requirements to operate and maintain the USM numismatic retail program. The Contractor shall achieve Full Operational Capability (FOC) under this task. The definition of FOC is identified in Appendix C. Appendix A outlines the USM’s minimum functional and business operation’s needs.

The USM’s objective is to provide contact center and fulfillment services that meet high levels of customer satisfaction, peak capacity, federal security requirements, and improved sales performance. The Contractor shall provide capabilities and service levels to sustain high satisfaction levels.

The Contractor shall provide contact center operations to include inbound order calls, inbound information calls, inbound and outbound service calls, correspondence via traditional mail, email, chat, and technical support. The contractor shall provide a Customer Relationship Management (CRM) solution to effectively track and manage inbound and outbound customer contacts and orders across all channels. The Contractor shall provide operational activities including training, quality monitoring, workforce management, and forecasting.

The Contractor shall provide fulfillment center operations for areas such as outbound consumer and business-to-business shipments, returns with and without a returned merchandise authorization (RMA), inventory receipt and shipments, inventory accuracy (cycle counting and audits), packing slip design, quality inspections (gross), carrier/freight management services (including freight forwarders, ground service, overnight, second day air, armored carrier), insurance coverage on 100% of shipments, carton and dunnage solutions, order accuracy solutions (such as weight verification), disassembly/destruction of obsolete inventory (detrash), and warehouse automation.

The Contractor shall provide e-commerce operational support for the web front-end to include services such as web catalog design, hosting and management, comprehensive shopping cart functionality, search engine optimization, analytics, cross sell and upsell, content management support, and consulting and training services to help maximize system benefits for USM.

Deliverables The Contractor shall propose deliverables in accordance with their proposed PWS. The Government will have final approval of all deliverables. The Contractor’s deliverables shall address all of the content objectives identified in Appendix B of the document.

Contractor Guidelines This acquisition effort will result in the award of a contract to acquire services from an independent, responsive, responsible, experienced Contractor. The Contractor shall comply with all applicable local, state, and Federal laws, including the Privacy Act, 5 U.S.C. §552a, and all agency privacy and security requirements. Contractor shall clearly and effectively communicate in a timely fashion with parties, including all strategic and programmatic partners.

Security Requirements The Contractor shall adhere to the following security requirements, as reasonable, to be assessed by the Government, or third-party on behalf of the Government.

Security and Compliance

Point of Contact The Contractor shall designate an individual to serve as a primary point of contact for all Information Security operational and compliance issues and shall serve as a contractor liaison for security. This person shall have sufficient demonstrated knowledge and/or experience in Information Security to effectively communicate and document security requirements and issues between the Contractor and the USM.

Compliance The Contractor shall adhere to laws and regulations that impose security, confidentiality and accessibility requirements, including but not limited to those involving privacy and security controls, electronic discovery and the management, disposition and location data.

System Security Authorization

· Provide documentation to comply with Federal Information Security Management Act of 2002 and applicable National Institute of Standards and Technology standards. Additionally, support development of a security authorization package based on Moderate Impact security standards defined in NIST SP 800-53, Revision 4.

· Provide necessary resources to assist USM or third party audits of Security Authorization both onsite and through documentation as applicable.

· Address and resolve gaps in Security Authorization identified by the USM and/or a third party auditor as applicable.

· Comply with the standards for OMB Memo 06-16: Protection of Sensitive Agency Information Records (June 2006).

Physical Security Compliance

· Provide documentation for a Physical Security Plan that includes but is not limited to how requirements are pushed and managed at data centers, how site surveys are conducted, and how physical compliance is ensured.

· Provide necessary resources to assist USM or third party audits of Physical Security Plan both onsite and through documentation as applicable.

· Address and resolve gaps in Physical Security Plan identified by the USM and/or a third party auditor as applicable.

Maintain PCI DSS Level 1 Compliance

· Provide a complete PCI DSS Level 1 Service Provider Report of Compliance (ROC) and Attestation of Compliance (AOC) for review annually.

· Support USM annual PCI DSS Level 1 on-site audit requirements.

· Support continuous monitoring of all PCI DSS Level 1 requirements by USM personnel and its designees.

Audit Support

· Undergo a SSAE 16 (Level 2) audit assessment on an annual basis by an accredited third party on all systems involving transactions processed by the retail systems.

· Physical and Technical access to systems, facilities and resources to authorized USM personnel, or designated third parties, at any time to conduct security audits, reviews, and data calls.

· Support, comply, and consult on all internal and external security audits, reviews, and data calls including but not limited to: Financial Audits, PCI DSS Level 1 Audits, FISMA Reviews, A-123 Reviews; OMB, Homeland Security, Departmental Inquiries and other continuous monitoring activities. Provide access to all requested data, systems, resources, and facilities.

· Provide recommendations and remediation plans based on the results of audits/reviews.

SOO Appendices Appendix A: Functional and Business Requirements

Appendix B: Deliverables and Content Requirements

Appendix C: Go-Live and Full Operational Capability (FOC) Definitions Appendix D: USM Internal and External Systems Interface Descriptions image1.png