RFP for ERP Software and Services


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  • Introduce anyone who should be introduced Remarks from Commissioner or similar Explain “Edison” – name of solution that will result from this project Talk about RFI done in 2002/2003 – this project is building on those efforts We are talking about the scope of software and services, and the scope of the project, first. We will then discuss the RFP and how you respond. There will be time for questions at the end also. (leads into next slide)
  • If you haven’t signed in, please do. We welcome your questions. Remember that only questions submitted in writing for a response are official. Oral representations given today are not binding. We will be publishing the answers to the questions as an amendment, and there may be others. Business registration with State not required for responding to the proposal but will be required prior to contract.
  • We are doing one proposal for both software and services. We are looking for a complete suite of implementation services – there are not many areas that are excluded Plus a guaranteed amount for ongoing licensure for the term of the contract – i.e., 5 years
  • The participants in this project: State – core administrative agencies very involved, but will affect every agency in some way One Integrator who brings everything together – restricted from appearing in more than proposal in any capacity Primary software vendor – ERP vendor – like all subs, may appear in more than proposal Other subs to the Integrator, either for software or services, if the Integrator so chooses State has hired STA to provide ERP expertise to the State
  • Drawn out a very comprehensive scope, touching almost every administrative and support function at the State Note the modules with an asterisk, will be speaking more about those in a moment
  • We have set a fairly aggressive timeframe for a procurement of this magnitude We have stayed on schedule so far, and intend to continue on schedule Note the deadlines and demo dates – we will talk more about these later
  • Big bang for HR/Payroll – first check in January, 2008 for time worked Dec. 16 – 31, 2007 – so system must be in production and data ready for time entry by Dec. 16 Financials, Procurement, Logistics – will be deployed in waves to mitigate risk – core, central agencies in first wave, live with new fiscal year on July 1, 2008 – this means that all data, should as open purchase orders or new requisitions, must be converted and ready for full production on July 1 – then other agencies will be deployed in no more than 9 months, by March 31, 2009
  • State has specified a set of standards that are required. State is interested in building on current environment rather than embarking on a new totally different direction. All of this specified in Attachment 6.11. Many mandatory items – if you don’t comply, your response is disqualified. Submit any exceptions to State standards as a question prior to Written Comments deadline. Potentially eliminated modules – areas where State was most uncomfortable with results from RFI – criteria for exclusion include Poor fit from requirements response Poor fit from software demo Must be highly customized – State not looking for a custom developed solution Module is not mature – has not been used extensively at other government clients
  • As another incentive to use State standard products, cost proposal does not include software if it is State standard. If not State standard, must submit as a question for approval, and must include in cost proposal. All proposals will have at least one non-standard product – the ERP software.
  • TDOT – has own version of current financial system – do not plan to perpetuate that, expect system to have flexibility to handle TDOT requirements Insurance – State processes claims for other than State employees
  • Now talk for a minute about services All work on site – no off-site or off-shore work State is making a major commitment of staff. Integrator must plan on working side-by-side with State staff, and mentoring and knowledge transfer throughout project . From lessons learned from other states, insufficient resources to support and operate the systems once they are implemented was a problem. The State expects to work side-by-side with consultants and learn all aspects of the software during the project, not at the end. The ERP software vendor must supply at least 3 FTE of consultant time for the project – one in HR/Payroll, one in Fin/Proc/Logistics, one in Technical. Requirements are on Excel spreadsheets. Vendor must complete spreadsheets and return in Excel format, as well as put a printed copy in binders. Four possible answers – Y, N, M and Q. For every requirement listed as M, must estimate hours to make custom modification. For every Q, only include estimated hours if > 8 hours. Otherwise, not in Integrator scope – will be State’s responsibility. Reports – for HR/Payroll, 15 complex and 15 average; for Fin/Proc/Logistics, 10 complex, 10 average, 30 for Budget Administration, plus must do all reports required for CAFR (see Contract Sec A.27.a.9) Workflows – many listed, include in scope 40 workflows - 20 complex and 20 average – State will do others.
  • Key staff Continuity is critical - $50,000 penalty if staff removed from project prior to completion
  • Will be extensive training needs Integrator provides at least 35% of resources, State will provide remainder (development and delivery) State provides facilities and equipment Expect Integrator to deliver 4 CBT classes for some of the larger training efforts, such as employee time entry CBT course may be developed for State or may be acquired and customized – cost either way must be included
  • Vendor will provide 6 months of post-production support following go-live for HR/Payroll on Jan. 1, 2008 Three months of support following final wave of Financials on March 1, 2009 Three months of support at first year-end for both phases Shared services – State is still evaluating Benchmarking – Integrator has no responsibility, benchmarks will be used to judge effectiveness of new system
  • Criteria for Integrator and ERP software vendor Will be graded pass/fail
  • (Hand over to Travis) (At least) Two contracts – one with Integrator, one with ERP software vendor All software license agreements will be signed during contract period, not at some future time All payments, including those to software vendor, will pass through Integrator during contract term After contract terminates, State will pay software vendor directly
  • Sec 1.2 The pro forma contract substantially represents the contract document that the proposer selected by the State MUST agree to and sign. Sec 5.3.4 The Proposer with the apparent best-evaluated proposal must agree to and sign a contract with the State which shall be substantially the same as the RFP Attachment 6.1, Pro Forma Integrator Contract. However, the State reserves the right, at its sole discretion, to add terms and conditions or to revise pro forma contract requirements in the State’s best interests subsequent to this RFP process. The State wants to resolve any questions NOW
  • State has protected itself in at least three ways Deliverables based payments, including a retainage not paid until system acceptance For critical business events that would likely cause financial harm to State, specified liquidated damages assessments Liability at 2 times total contract value
  • Other pass/fail criteria
  • Two parts to response – Technical and Cost RFP Att 6.3 gives structure for Technical Response If there is a page limit, specified in Att 6.3 (example: C.a.1, Executive Summary, limited to 10 pages) In addition to narratives, there are 3 Excel files and a Project file that must be completed and submitted in print and electronic format Very important – no cost data of any kind in Technical Proposal
  • RFP Att 6.5 is format for Cost Response – do not alter Integrator must also complete an Excel file and include in print and electronic submission of cost
  • Fixed fee, all inclusive – one fee for HR/Payroll, one for Fin/Proc/Logistics Will require Integrator to split Training and Technical costs between the two modules, even though may not be not easily separable If Change Order required, process is given in RFP – must quote rates for term of contract All payments are based on completion of specified deliverables
  • References – using forms rather than State making calls Do not alter forms – use as is Must be at least six forms, 3 for Integrator and 3 for ERP software To count, must be submitted with response – no late submissions allowed for any reason Requirements – no separate narrative required, use Excel files for response The software demonstration will come from the requirements, so answer accurately
  • Key points for putting the response together
  • Per instructions, Technical and Cost must be packaged separately so it is easy to separate the two 16 total printed copies of Technical Response Each binder has a CD of total contents of Technical response – do not include any cost! Narrative may be in Word or Acrobat – Excel and Project must be in those formats, do not submit in Acrobat only Only 1 Cost Proposal and CD must be submitted
  • As shown in RFP
  • Only State employees on evaluation team – each area will use employees with expertise in that business area – the Core ERP team will evaluate the more general topics
  • Expect demos to potentially last all week – we said four days in RFP but it may last five days as we draw up the final schedule Travis will assign dates as soon as feasible after receipt of proposals and determination of those vendors who passed Mandatory qualifications Every vendor will have same amount of time to prepare – 2 weeks – be prepared to demonstrate anything in the requirements
  • And finally…
  • RFP for ERP Software and Services

    1. 1. RFP for ERP Software and Services Pre-Proposal Conference November 1, 2005 Nothing in this presentation (visual, verbal or written) shall be construed to alter in any way the contents of RFP 317.03-134. In the event of conflicts, the RFP shall prevail.
    2. 2. Agenda <ul><li>Welcome and Introductions </li></ul><ul><li>Executive Sponsor Opening Remarks </li></ul><ul><li>What is Being Procured? </li></ul><ul><li>Project Timeline and Scope </li></ul><ul><li>Vendor Qualifications </li></ul><ul><li>Comments from Go-DBE </li></ul><ul><li>RFP Structure </li></ul><ul><li>Proposal Response & Evaluation </li></ul><ul><li>Vendor Demonstrations </li></ul><ul><li>Questions </li></ul>
    3. 3. Pre-Proposal Conference <ul><li>Please sign in </li></ul><ul><li>Answers given today are not binding; must be followed up in writing </li></ul><ul><li>Check for RFP amendments: http://state.tn.us/finance/oir/pcm/rfps.html </li></ul><ul><li>Reminder: Vendor must be registered with State prior to contract approval </li></ul>
    4. 4. What is State Procuring? <ul><li>Packaged ERP software </li></ul><ul><li>Possible third-party software for specialized needs </li></ul><ul><li>Comprehensive implementation services </li></ul><ul><ul><li>Project management support </li></ul></ul><ul><ul><li>Business process redesign and implementation </li></ul></ul><ul><ul><li>Software configuration, testing, deployment </li></ul></ul><ul><ul><li>Custom development as needed </li></ul></ul><ul><ul><li>Training services and cultural change management support </li></ul></ul><ul><li>Ongoing annual software licensure fee </li></ul>
    5. 5. Key Participants in Project <ul><li>State of Tennessee </li></ul><ul><li>Integrator (aka Prime Vendor) </li></ul><ul><ul><li>Accountable for all products, services and deliverables </li></ul></ul><ul><ul><li>May only appear in one proposal (no joint ventures) </li></ul></ul><ul><li>Primary software vendor </li></ul><ul><ul><li>Subcontractor to Integrator </li></ul></ul><ul><ul><li>Providing majority of ERP software </li></ul></ul><ul><li>Optionally, other subcontractors to Integrator (providing software and/or services) </li></ul><ul><li>Salvaggio, Teal & Associates – State’s implementation assistance partner </li></ul>
    6. 6. TN Planned Application Scope for ERP <ul><li>Financial Management </li></ul><ul><ul><li>Accounts Payable </li></ul></ul><ul><ul><li>Accounts Receivable </li></ul></ul><ul><ul><li>Cash Management/Bank Reconciliation </li></ul></ul><ul><ul><li>General Ledger and Budgetary Control </li></ul></ul><ul><ul><li>Cost Allocation </li></ul></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><li>Grant Accounting </li></ul></ul><ul><ul><li>Travel * </li></ul></ul><ul><li>Budget Administration * </li></ul><ul><li>Procurement/Logistics </li></ul><ul><ul><li>Purchasing </li></ul></ul><ul><ul><li>Asset Management </li></ul></ul><ul><ul><li>Fleet Management * </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Plant Maintenance </li></ul></ul><ul><li>HR/Payroll </li></ul><ul><ul><li>Applicant Services * </li></ul></ul><ul><ul><li>Benefits Administration </li></ul></ul><ul><ul><li>Classification and Compensation </li></ul></ul><ul><ul><li>Insurance Administration </li></ul></ul><ul><ul><li>Payroll Administration </li></ul></ul><ul><ul><li>Personnel Administration </li></ul></ul><ul><ul><li>Time Reporting and Leave Accounting </li></ul></ul><ul><ul><li>Training and Employee Development </li></ul></ul><ul><ul><li>Employee Self-Service </li></ul></ul><ul><li>Data Warehouse and Business Data Analysis * </li></ul><ul><li>* At State’s option, could be removed </li></ul>
    7. 7. RFP Schedule of Events
    8. 8. Project Timeline
    9. 9. Key Points for Software <ul><li>Fully integrated solution that will interoperate with State standards (mandatory) </li></ul><ul><ul><li>Server hardware, OS </li></ul></ul><ul><ul><li>Software: GroupWise, FileNet, Internet Explorer, MS Office, etc. (all listed in RFP Att. 6.11) </li></ul></ul><ul><li>Modules to be potentially eliminated from scope </li></ul><ul><ul><li>Applicant Services, Travel, Fleet Management, Budget Administration, Data Warehouse </li></ul></ul>
    10. 10. Key Points for Software <ul><li>Do not include cost for State standard software in response </li></ul><ul><li>Must submit any non-State standard products by Written Comments deadline for approval or disapproval (and any approved non-standard products must be included in cost) </li></ul>
    11. 11. Key Points for Software <ul><li>Department of Transportation </li></ul><ul><ul><li>Has own version of current financial system (T-STARS) </li></ul></ul><ul><ul><li>Will integrate into one system with Edison </li></ul></ul><ul><li>Insurance administration </li></ul><ul><ul><li>Handles insurance benefits for State employees, local education, higher education and local government </li></ul></ul><ul><ul><li>Approx. 280,000 participants </li></ul></ul>
    12. 12. Key Points for Services <ul><li>State is planning to commit significant State staff to project </li></ul><ul><li>Integrator must include at least 3 FTE of consultant time from ERP software vendor </li></ul><ul><li>Custom Modifications – include effort and cost for requirements answered as an “M,” and “Q” > 8 hrs </li></ul><ul><li>Reports: State specifying 80 total reports in scope plus CAFR reports from Integrator </li></ul><ul><li>Workflows: State specifying 20 complex workflows and 20 average workflows in scope </li></ul>
    13. 13. Key Points for Services <ul><li>11 vendor roles designated as “key personnel” (special contract terms apply) </li></ul><ul><ul><li>Project Manager; </li></ul></ul><ul><ul><li>Deputy Project Manager; </li></ul></ul><ul><ul><li>Payroll/HR Configuration Manager; </li></ul></ul><ul><ul><li>Financial/Procurement Configuration Manager; </li></ul></ul><ul><ul><li>Technical Manager; </li></ul></ul><ul><ul><li>Two Configuration Leads under the Payroll/HR Manager; </li></ul></ul><ul><ul><li>Two Configuration Leads under the Financial/ Procurement Manager; </li></ul></ul><ul><ul><li>One Lead under the Technical Manager; and, </li></ul></ul><ul><ul><li>One Manager in the Enterprise Readiness area. </li></ul></ul>
    14. 14. Key Points for Services <ul><li>Training </li></ul><ul><ul><li>Include costs for recommended State project team training, including technical training </li></ul></ul><ul><ul><li>Integrator provides at least 35% of end user training development and delivery staff, including leadership of this area </li></ul></ul><ul><ul><li>Includes delivery of 4 CBT classes (development or acquisition) </li></ul></ul>
    15. 15. Key Points for Services <ul><li>Post-production support – up to 6 months following HR/Payroll, 3 months following final wave of Financials </li></ul><ul><li>Includes up to 3 months of services at first year-end for HR/Payroll and for Financials </li></ul>
    16. 16. Vendor Qualifications <ul><li>Integrator was primary service provider for completed project of integrated ERP system (HR/Payroll, Financials, Procurement) for public sector client with: </li></ul><ul><ul><li>$12 billion or more in expenditures, and </li></ul></ul><ul><ul><li>At least 25,000 employees </li></ul></ul><ul><li>Primary ERP software is in production at public sector client </li></ul><ul><li>Mandatory – proposal disqualified if failed </li></ul>
    17. 17. Key RFP Points
    18. 18. Contracts <ul><li>State will sign contract with Integrator (RFP Attachment 6.1) for products, services and deliverables proposed </li></ul><ul><li>At same time, State will sign Software Licensure Agreement with software vendor(s) (Contract Att A) </li></ul><ul><li>Integrator contract will terminate upon completion of contracted services. Until then, all contract payments from State are made to Integrator. </li></ul><ul><li>After Integrator contract terminated, any ongoing fees to Software Vendor will be paid directly. </li></ul>
    19. 19. Contracts <ul><li>Please submit questions as soon as possible </li></ul><ul><li>Must submit any questions related to contract terms and conditions before Written Comments deadline. </li></ul><ul><li>The Pro Forma Contract in RFP Att 6.1 and the Software License Contract in Contract Att A are the agreements that the State intends to sign. </li></ul><ul><li>State does not intend to negotiate; if State makes any changes, they must be in State’s best interest (see RFP Sec 1.2, Sec 5.3.4 and RFP Att 6.2) </li></ul><ul><li>Get your legal counsel involved NOW </li></ul>
    20. 20. Performance Protection <ul><li>Deliverables-based payments (retainage) </li></ul><ul><li>Liquidated damages for critical business events with financial repercussions </li></ul><ul><li>But… </li></ul><ul><li>Limited liability (2X contract value) </li></ul><ul><li>No performance bond </li></ul>
    21. 21. Other Mandatory Criteria <ul><li>No exceptions to Attachment 6.2, Statement of Certifications and Assurances </li></ul><ul><li>Financial stability documentation </li></ul><ul><li>Compliance with State’s Technical and Architectural standards </li></ul><ul><li>See RFP Attachment 6.3, Section A </li></ul>
    22. 22. Structure of Proposal <ul><li>Technical Proposal </li></ul><ul><ul><li>RFP Attachment 6.3, Sections A, B, C and D defines the required responses and their nature – e.g.: </li></ul></ul><ul><ul><ul><li>Att 6.3, Sec C.a.1 requires a narrative response </li></ul></ul></ul><ul><ul><ul><li>Att 6.3, Sec C.a.3.3 requires a workplan in Project format </li></ul></ul></ul><ul><ul><ul><li>Att 6.3, Sec D requires completion of an Excel spreadsheet </li></ul></ul></ul><ul><ul><li>Note that some narrative sections have a page limit </li></ul></ul><ul><ul><li>Technical Proposal Supplement (Excel file), Att. 6.4 </li></ul></ul><ul><ul><li>ERP Functional Requirements (Excel files), Att 6.8 </li></ul></ul><ul><ul><li>ERP General System Requirements (Excel file), Att 6.9 </li></ul></ul><ul><ul><li>Important: No cost data in Technical Proposal </li></ul></ul>
    23. 23. Structure of Proposal <ul><li>Cost Proposal </li></ul><ul><ul><li>RFP Attachment 6.5 (do not change format!) </li></ul></ul><ul><ul><li>Do not leave cells blank </li></ul></ul><ul><ul><li>Cost Proposal Supplement (Excel file), Att 6.6 – must complete all tabbed worksheets </li></ul></ul>
    24. 24. Costing and Payment <ul><li>Fixed price quote </li></ul><ul><ul><li>Total software/services for HR/Payroll (Phase I) </li></ul></ul><ul><ul><li>Total software/services for Financials/ Procurement/ Logistics (Phase II) </li></ul></ul><ul><ul><li>Includes travel/living expenses - “fully loaded” </li></ul></ul><ul><li>Hourly rates for Change Orders </li></ul><ul><li>Payment based on approved deliverables </li></ul><ul><li>Payment methodology and schedule shown in Contract Section C.3 </li></ul>
    25. 25. Key Points for Proposal <ul><li>References </li></ul><ul><ul><li>Integrator solely responsible </li></ul></ul><ul><ul><li>Forms (Att 6.16, 6.17) must be submitted with proposal </li></ul></ul><ul><ul><li>At least 3 for Integrator, 3 for ERP software </li></ul></ul><ul><ul><li>Start ASAP! Late/misplaced forms will not be evaluated </li></ul></ul><ul><li>Functional and General Requirements </li></ul><ul><ul><li>Must use Excel files for response – written and electronic copies both required </li></ul></ul><ul><ul><li>Only 4 responses for each requirement – Y, N, M or Q </li></ul></ul><ul><ul><li>Answer accurately – most functionality will be demonstrated during Vendor Demonstrations </li></ul></ul>
    26. 26. Key Points for Proposal <ul><li>Proposals must arrive on time (RFP Sec 1.7) </li></ul><ul><li>Please include email addresses (Sec. 1.6) </li></ul><ul><li>Transmittal letter must be signed by CEO, or must include evidence of signatory’s ability to bind company </li></ul><ul><li>Use RFP Section 6.3, Secs. A, B, C and D as overall Table of Contents for proposal </li></ul>
    27. 27. Packaging Proposal <ul><li>Please check packaging very carefully (RFP Sec 3.1) </li></ul><ul><li>Technical and Cost Proposal packaged separately </li></ul><ul><li>Label outside of package correctly </li></ul><ul><li>Technical Proposal </li></ul><ul><ul><li>1 original and 15 copies in binders </li></ul></ul><ul><ul><li>Control numbers on outside of binders </li></ul></ul><ul><ul><li>Each copy includes a CD of entire Technical Proposal </li></ul></ul><ul><ul><li>30 additional CDs of entire Technical Proposal </li></ul></ul><ul><li>Cost Proposal </li></ul><ul><ul><li>1 copy with 1 CD of Cost Proposal </li></ul></ul>
    28. 28. Proposal Evaluation 300 Cost Proposal 200 Software Demonstration 400 <ul><li>Technical Proposal </li></ul><ul><li>Technical Approach - Project Approach and Technical Architecture: 150 pts </li></ul><ul><li>System Requirements: 250 pts </li></ul>100 Vendor Qualifications /Experience Max Points Evaluation Criteria
    29. 29. RFP Evaluation <ul><li>Evaluation Team: Core Edison Team plus representatives from Accounts, Benefits, Budget, Procurement, Personnel, Treasury and agency representation </li></ul><ul><li>Core Edison Team evaluates Vendor Qualifications and Experience, Project Approach </li></ul><ul><li>Sub-teams evaluate Technical Architecture and appropriate sub-sections of System Requirements based on subject matter expertise (teams of at least three State evaluators) </li></ul>
    30. 30. Vendor Demonstrations <ul><li>Each will last a week </li></ul><ul><li>Dates will be assigned soon after receipt of proposals </li></ul><ul><li>Script will be distributed two weeks prior to start of demonstration </li></ul><ul><li>More instructions with demonstration script </li></ul>
    31. 31. Final Words <ul><li>Only official RFP contact: Travis Johnson </li></ul><ul><li>Intent to Propose by Nov. 7 </li></ul><ul><li>Submit questions NOW – a flood of questions at the deadline could delay the procurement </li></ul><ul><li>Resolve contract questions NOW </li></ul><ul><li>Get started on reference forms NOW </li></ul><ul><li>Submit best possible offering – no BAFO process </li></ul><ul><li>Submit most comprehensive proposal possible </li></ul>
    32. 32. Questions?