SD Reemployment Assistance Fund Accounting Modernization

The South Dakota Department of Labor and Regulation (DLR) is seeking proposals for a Reemployment Assistance (RA) Fund Accounting Software Modernization project to replace its current mainframe-based system with a modern, cloud-based solution. The primary objective is to migrate the existing system, which currently utilizes ADABAS, Flat Files, and VSAM databases with COBOL and Natural programming languages, to a new environment, with Microsoft Azure being the preferred platform. The procurement requires a comprehensive fund accounting system that includes General Ledger, Accounts Payable, Accounts Receivable, and Bank Reconciliation functionality, with the ability to integrate with various payment processors like Wells Fargo Bank, ASAP, Elavon & Converge, and EFTPS. Proposals must demonstrate compliance with FedRAMP and NIST standards, support single sign-on (SSO), multi-factor authentication, and PCI & NACHA certifications. The RFP (#24RFP11965) was posted on December 11, 2024, with proposals due by December 27, 2024, and an anticipated award decision on February 19, 2025. Evaluation criteria will focus on implementation approach, functionality, user experience, vendor qualifications, and value-to-cost, with potential vendor presentations to be conducted via electronic conferencing in January/February 2025.

The RFP does not explicitly mention set-aside designations or specific restrictions on respondent types. The current system is a standalone environment not integrated with the state's ERP, CRM, payroll, or HR systems, which will remain unchanged with the new solution. The project involves migrating approximately 5-8 GB of data with known quality issues requiring cleansing, and must support six user roles with five levels of access. While no specific budget range is disclosed, the contract will be an annual agreement with a potential 18-month renewal option. The current system is an in-house developed mainframe solution, and the state will provide access to existing Azure resources rather than requiring new provisioning. Vendors may propose both perpetual and subscription-based licensing models, with a preference for a combination of instructor-led and self-paced training for the six system users. The successful vendor must be prepared to maintain records for five years and ensure robust protection of both personally identifiable information (PII) and financial data.