UI Tax System Modernization Project

UIUI TTAX SSYSTEM MMODERNIZATION PPROJECT

PPROJECT CCHARTER FFOR CCERTIFICATION

EXECUTIVE SPONSOR – NEIL MEONI, NMDWS DEPUTY SECRETARY

BUSINESS OWNER – CASANDRA ENCINIAS, UI BUREAU CHIEF

BUSINESS OWNER – ALICE DOMINGUEZ, CHIEF OF TAX UNIT

PROJECT MANAGER – CHRIS NEITZEY

ORIGINAL PLAN DATE: OCTOBER 29, 2009

REVISION DATE: N/A

REVISION: V 0.3 TABLE OF CONTENTS

TABLE OF CONTENTS...... I

1. PROJECT BACKGROUND...... 1

1.1 EXECUTIVE SUMMARY -RATIONALE FOR THE PROJECT...... 1 1.2 SUMMARY OF THE FOUNDATION PLANNING AND DOCUMENTATION FOR THE PROJECT...... 1 1.3 PROJECT CERTIFICATION REQUIREMENTS...... 1 2.0 JUSTIFICATION, OBJECTIVES AND IMPACTS...... 2

2.1 AGENCY JUSTIFICATION...... 2 2.2 BUSINESS OBJECTIVES...... 2 2.3 TECHNICAL OBJECTIVES...... 3 2.4 IMPACT ON ORGANIZATION...... 3 2.5 TRANSITION TO OPERATIONS...... 4 3.0 PROJECT/PRODUCT SCOPE OF WORK...... 5

3.1 DELIVERABLES...... 5 3.1.1 Project Deliverables...... 5 3.1.2 Product Deliverables...... 5 3.2 SUCCESS AND QUALITY METRICS...... 5 4.0 SCHEDULE ESTIMATE...... 5

5.0 BUDGET ESTIMATE...... 6

5.1 FUNDING SOURCE(S)...... 6 5.2. BUDGET BY MAJOR DELIVERABLE OR TYPE OF EXPENSE...... 6 Description...... 7 FY07 & Prior...... 7 Staff - Internal...... 7 5.3 BUDGET BY PROJECT PHASE OR CERTIFICATION PHASE...... 7 6.0 PROJECT AUTHORITY AND ORGANIZATIONAL STRUCTURE...... 7 6.1 STAKEHOLDERS...... 8 6.2 PROJECT GOVERNANCE PLAN...... 8 6.3 PROJECT MANAGER...... 8 6.3.1 PROJECT MANAGER CONTACT INFORMATION...... 8 6.3.2 PROJECT MANAGER BACKGROUND...... 8 6.4 PROJECT TEAM ROLES AND RESPONSIBILITIES...... 9 6.5 PROJECT MANAGEMENT METHODOLOGY...... 9 7.0 CONSTRAINTS...... 9

8.0 DEPENDENCIES...... 10

9.0 ASSUMPTIONS...... 10

10.0 SIGNIFICANT RISKS AND MITIGATION STRATEGY...... 11

11.0 COMMUNICATION PLAN FOR EXECUTIVE REPORTING...... 12

I 12.0 INDEPENDENT VERIFICATION AND VALIDATION - IV&V...... 12

13.0 PROJECT CHARTER AGENCY APPROVAL SIGNATURES...... 13

14.0 PROJECT CHARTER CERTIFICATION APPROVAL SIGNATURE...... 13

Revision History

REVISION NUMBER DATE COMMENT 0.1 October 23, 2009 Original DoIT PMO Document template date 8/14/07; modified to support the UI Tax Project 0.2 October 28, 2009 Updated charts and feedback from internal team; still waiting on feedback for Section 2.5 0.3 October 29, 2009 Corrected Timeline Chart 0.4 December 7, 2009 General edits and updates - RM

III PROJECT CHARTER UI TAX SYSTEM MODERNIZATION 1

1. PROJECT BACKGROUND

1.1 EXECUTIVE SUMMARY -RATIONALE FOR THE PROJECT The Unemployment Insurance (UI) Tax application is a part of the UI System. UI Tax System collects employer and employee unemployment contributions and deposits the contributions into Federal and State trust funds so that benefit payments can be made to qualified applicants.

The new UI Tax System will move the department to an integrated UI system, common technical and business architecture will be web/server based, and will meet federal performance and reporting requirements. NMDWS will use the Rational Unified Process (RUP) methodology and existing toolset (ClearCase, ClearQuest, RequisitePro, Robot, Rose, and TestManager) for system design, acquisition, integration and operation.

1.2 SUMMARY OF THE FOUNDATION PLANNING AND DOCUMENTATION FOR THE PROJECT The UI Tax System Modernization Project was first initialized back in June 2006 and has been through two previous Project Certification Gates for the Initiation Phase and the Planning Phase. Agency is working with the vendor (post-RFP) to customize configurations based on the RFP requirements.

1.3 PROJECT CERTIFICATION REQUIREMENTS Does the project fit into the criteria for certification? Which and how? CRITERIA YES/NO EXPLANATION Project is mission critical to the agency Yes The replacement of the UI Tax system has been a high priority item since 2006. Project cost is equal to or in excess of Yes An original amount of $100,000.00 $1.95M has already been approved from the Reed Act Funds for Initiation and Planning; additional finding will be requested from the Reed Act Funds and ARRA funds. Project impacts customer on-line access Yes Yes, this supports the employer community that needs to access the

PROJECT CHARTER UI TAX SYSTEM MODERNIZATION 2

CRITERIA YES/NO EXPLANATION UI Tax application. Project is one deemed appropriate by the Yes Secretary of the DoIT Will an IT Architecture Review be required? Yes Completed December 9, 2009

2.0 JUSTIFICATION, OBJECTIVES AND IMPACTS

2.1 AGENCY JUSTIFICATION

NUMBER DESCRIPTION AGENCY NMDWS has undertaken the implementation of a new UI Tax Processing System as part of an overall modernization of the NMDWS UI System. This new system will replace UI Tax processes and system that are over 20 years old

2.2 BUSINESS OBJECTIVES

NUMBER DESCRIPTION BUSINESS Reduce operating costs and improve process efficiencies OBJECTIVE 1 BUSINESS Provide improved convenience for customers through electronic OBJECTIVE 2 payment processing and fully functional self-service BUSINESS Improve on-line capabilities for the New Mexico employers OBJECTIVE 3 BUSINESS Eliminate manual data entry and improve timeliness and accuracy by OBJECTIVE 4 providing electronic scanning of paper tax forms BUSINESS Enhance capabilities for the employers to include real-time OBJECTIVE 5 registration and account maintenance

2.3 TECHNICAL OBJECTIVES

NUMBER DESCRIPTION TECHNICAL Replace the legacy UI Tax Processing application to come in line OBJECTIVE 1 with current technology TECHNICAL Enable UI Tax application to migrate off of the mainframe OBJECTIVE 2 environment TECHNICAL Minimize the platforms that the proposed UI Tax application runs on OBJECTIVE 3 to minimize technical support complexities TECHNICAL Ensure there is adequate system documentation that is maintainable OBJECTIVE 4 TECHNICAL Expand the skill-set of technical support personnel in their ability to OBJECTIVE 5 support the system. TECHNICAL Allow for adequate transition to operational support which will OBJECTIVE 6 include instructional and on the job training.

2.4 IMPACT ON ORGANIZATION The impacts on the organization are areas that need to be addressed by the project through its planning process. They may not be internal project risks, but they can impact the success of the project’s implementation. AREA DESCRIPTION END USER To manage impact on DWS users and their business units, Term position will be used to backfill Subject Matter Expert’s position so that units and end users will not adversely be impacted. External Users (stakeholders) will not initially be impacted since the legacy system (current self-service) will be available. However, the external end user community will be kept involved through ongoing communications from the project team.

BUSINESS The way we do business will change for all stakeholders. In PROCESSES preparation for this change, a Communication Plan is being developed to provide ongoing communications to all stakeholders keeping them apprised of progress and changes throughout the life of the project. A Training Plan will be developed at onset of the project for all stakeholders by both DWS and vendor, which will include all

AREA DESCRIPTION phases of the project. The refining of requirements (JAD Session) during the design phase will include all DWS Subject Matter Experts from each unit along with selected external stakeholders which will include selected groups (payroll providers, CPAs, external agencies)

IT OPERATIONS DWS is working on engaging contract staff to manage interim AND STAFFING operations (maintenance and support) of the legacy UI application while agency IT staff trains for and begins taking ownership of IT operations for the new UI Tax system. The timeframe for this initiative will be approximately January 1, 2010 through December 31, 2010. DWS IT staff will work concurrently with the new system’s implementation vendor as the primary mode for transition to operations.

2.5 TRANSITION TO OPERATIONS The transition to operations areas include items that are asked in the certification form to assure that the project has accounted or will account for these matters in its planning and requirements specifications. AREA DESCRIPTION PRELIMINARY DWS OFFICES IN ALBUQUERQUE. VENDOR WILL ALSO OPERATIONS COLLOCATE TO PROJECT OFFICE SPACE NEAR THE DWS LOCATION AND OFFICE. STAFFING PLANS DATA SECURITY, THIS IS ASSIGNED TO THE AGENCY SECURITY SME WHO BUSINESS WILL WORK WITH PROJECT STAFF AND CONTRACTORS CONTINUITY THROUGHOUT THE PROJECT. MAINTENANCE THIS IS TARGETED TO BEGIN DURING PHASE II OF THE STRATEGY PROJECT INTEROPERABILITY INTEGRATION VENDOR WILL DELIVER THIS THROUGH THE RFP DELIVERABLES SPECIFICATIONS. IT WILL INCLUDE INTEROPERABILITY WITH UI CLAIMS AND ANCILLARY APPLICATIONS. E.G. REPORTING RECORD RETENTION NO CHANGE – CONTINUE TO MEET AGENCY AND STATE STANDARDS AS WELL AS USDOL REQUIREMENTS.

AREA DESCRIPTION CONSOLIDATION DWS PROPOSES TO HOST THE SOLUTION THROUGH THE STRATEGY TWO-YEAR IMPLEMENTATION PHASE AND THROUGH THE WARRANTY PERIOD. DURING THE WARRANTY PERIOD, IN ANTICIPATION OF A DOIT REDUNDANCY ALTERNATIVE IN ALBUQUERQUE, DWS WILL MIGRATE TO THE DOIT LOCATION IN COORDINATION WITH DOIT STAFF.

3.0 PROJECT/PRODUCT SCOPE OF WORK

3.1 DELIVERABLES

3.1.1 PROJECT DELIVERABLES Refer to Section 4.1.1 Deliverables in the PMP

3.1.2 PRODUCT DELIVERABLES Refer to Section 4.2.2 Product and Product Development Deliverables in the PMP

3.2 SUCCESS AND QUALITY METRICS Refer to Section 6.7 Quality Objectives and control in the PMP

4.0 SCHEDULE ESTIMATE

Refer to Section 5.1 Work Breakdown Structure (WBS) and Section 5.2 Schedule Allocation – Project Timeline in the PMP

5.0 BUDGET ESTIMATE

5.1 FUNDING SOURCE(S)

SOURCE PHASE AMOUNT ASSOCIATED APPROVERS RESTRICTIONS

Reed Act Funds Initiation and $1.95 M Department of Planning Workforce Solutions

SOURCE PHASE AMOUNT ASSOCIATED APPROVERS RESTRICTIONS

Reed Act Funds Implementation $9.08 M Request for Proposal Department of (RFP) needs to be Finance and issued by 9/1/2009 in Accounting (DFA) order to allow for release of remaining Department of funds. Information Technology (DoIT) Must be spent by 6/30/10. DWS

UI Modernization Implementation To be United States Funds (ARRA) and Closeout determined Department of based on Labor (USDOL) Vendor Selected New Mexico Office or Reinvestment and Recovery (NMORR)

5.2. BUDGET BY MAJOR DELIVERABLE OR TYPE OF EXPENSE

BUDGET Comments: $11,030,200 (allocated for the project to date) - $1,528,476 (spent up through FY 09) = 9,501,724 available to spend from the Reed Act Funds; More will be needed to support the software vendor for the total project. That amount will be determined at the time the vendor is selected.

FY07 & FY08 FY09 FY10 Totals DESCRIPTION PRIO R

STAFF - Internal 43,743 19,000 160,733 596,723 820,199 IN Personal TE Services and RN Benefits AL (200’s) Consulting Professional 150,000 972,600 66,000 8,689,001 9,877,601 Services Services

(300’s)

Hardware HW, supplies, 56,000 31,585 28,815 216,000 332,400 travel, Allocated Costs (400’s) Software n/a

TOTAL 249,742 1,023,185 255,548 9,501,724 11,030,200

5.3 BUDGET BY PROJECT PHASE OR CERTIFICATION PHASE Below is the project timeline showing the Project/Certification Phases. The A-G references a more detailed budget breakout that is identified in Section 5.2 Project Budget in the PMP.

6/7 - 1/2 4/9 - 1/4 1/4 - 5/5 5/5 - 12/5 Initiation Phase Planning Phase Implementation Phase Closeout Phase

$200,000 $1,750,000 Today $9,080,200 Reed Act Reed Act Reed Act TBD - ARRA B

E 4/9 - 11/7 F 1/4 - 5/5 PDS IV&V 9/1 - 1/4 PM and IV&V Provider Selected by RFP RFPs for IV&V, PM

G A C D

6/10 - 1/5 4/9 - 11/7 6/13 - 8/22 11/1 - 1/4 1/4 - 12/31 1/1 - 5/5 RFPs for IV&V, Req Def Req Def (-FMB) Req Def FMB RFP Design & Implement Phase 1 Self Service Phase 2

Jun-06 Mar-13

New Mexico Department of Workforce Solutions

UI Tax System Modernization Project

Project Abstract

The Unemployment Insurance (UI) Tax application is the second part of the Unemployment Insurance System (UI Claims System was the first segment).

The UI Tax System collects unemployment contributions and deposits the contributions into Federal and State trust funds so that benefit payments can be made to qualified applicants. The applications need full integration using a common architecture (business and technical).

The new UI Tax System will move the department to an integrated UI system, common technical and business architecture will be web/server based, and will meet federal performance and reporting requirements.

Executive Governance / Steering Committee:

UI Tax System DoIT Modernization Project Project Oversight and Steering Committee Compliance Division

UI Tax Project IV&V Contractor Manager UI Tax Vendors

John Salazar Jason Lewis Clyde DeMersseman Neil Meoni Casandra Encinias Technical Owner & Lloyd Garley Administrative Legal Counsel Project Sponsor Business Owner Steering Committee Business Owner Oversight Chair

Business SME’s Technical SMEs

External Stakeholders

Project benefits, milestones achieved and/or accomplishments:

Benefits are listed below  Improved on-line services for NM employers  Electronic payment processing provides improved convenience for customers  Real-time registration & account maintenance for employers PAGE 8 PROJECT CHARTER UI TAX SYSTEM MODERNIZATION 9

6.0 PROJECT AUTHORITY AND ORGANIZATIONAL STRUCTURE

6.1 STAKEHOLDERS This information is maintained in the PMP under Section 2.1 Stakeholders.

6.2 PROJECT GOVERNANCE PLAN This information is maintained in Section 2.2 Project Governance Structure of the PMP.

UI Tax System DoIT Modernization Project Project Oversight and Steering Committee Compliance Division

UI Tax Project IV&V Contractor Manager UI Tax Vendors

John Salazar Jason Lewis Clyde DeMersseman Neil Meoni Casandra Encinias Technical Owner & Lloyd Garley Administrative Legal Counsel Project Sponsor Business Owner Steering Committee Business Owner Oversight Chair

Business SME’s Technical SMEs

External Stakeholders

6.3 PROJECT MANAGER 6.3.1 PROJECT MANAGER CONTACT INFORMATION NAME ORGANIZATION PHONE #(S) EMAIL JULIE LOPEZ-CASAUS DWS (505) 841-8398 JULIE.LOPEZ- (INTERIM) CASAUS@STATE. NM.US RFP BEING ISSUED TO TBD TBD TBD PROVIDE MULTI-YEAR PM & IV&V

6.3.2 PROJECT MANAGER BACKGROUND An agency PM will lead the project. She has qualified for certification through PMI and has completed the course curriculum. An RFP is being initiated for a Project Manager for the Implementation Phase of the Project.

6.4 PROJECT TEAM ROLES AND RESPONSIBILITIES

Below is a UI Tax Directory showing all project team members and the stakeholders.

UITax Directory 101909.xls

6.5 PROJECT MANAGEMENT METHODOLOGY Refer to Section 4.1 Project Management Life Cycle of the PMP

7.0 CONSTRAINTS

This information is maintained in Section 1.3 Constraints of the PMP

NUMBER DESCRIPTION

1 A Request for Proposal (RFP) for replacing the legacy Unemployment Insurance (UI) Tax System has been issued and awarded issued and is in final contract negotiations.

NUMBER DESCRIPTION

2 The $9.01M allocation must be spent by June 30, 2010.

3 The new UI Tax System will interface with the UI Claims System.

4 The legacy UI Tax System must remain functional during the transition to the new system. 8.0 DEPENDENCIES

Types include the following and should be associated with each dependency listed.  Mandatory dependencies are dependencies that are inherent to the work being done.  D- Discretionary dependencies are dependencies defined by the project management team. This may also encompass particular approaches because a specific sequence of activities is preferred, but not mandatory in the project life cycle.  E-External dependencies are dependencies that involve a relationship between project activities and non- project activities such as purchasing/procurement

NUMBER DESCRIPTION TYPE M,D,E

1 There is a dependency on NMDWS Purchasing/Procurement in terms of E getting the requested funding approved.

UI Tax System solution needs to preserve the NMWebFile ability to allow 2 customers a central location for submitting online state employer E information.

9.0 ASSUMPTIONS

NUMBER DESCRIPTION The Project will be governed by the following prioritization of the three key interrelated SCH1 constraints of project Scope, Schedule (elapsed time), and Budget. The project constraint prioritization is:

Priority (H,M,L) Constraint Comment

High Schedule A project priority is to maintain the project schedule.

Medium Scope If a scope change is requested, the change will need to be implemented in the current project timeframe (schedule) and within an approved budget.

Low Budget Budget must be preserved, but Schedule and Scope are considered and reviewed first when making project decisions.

NUMBER DESCRIPTION

Prioritization will drive the manner in which the project is managed, the way changes of scope will be handled, and the approach to resolving issues. Project change requests that include the Budget constraint will be decided at the steering committee level. Change requests that do not involve the Budget constraint might be made at the project level where they will be expected to maintain the overall project Schedule and when addressing Schedule/Scope changes. NMDWS staff, their vendors, and contractors involved with this project will be able to meet the SCH2 project schedule and timing. Deliverable content will be written and reviewed continuously (i.e., the team will not wait until SCH3 just before the deliverable is due to write it). Once the project starts, any new changes in NMDWS UI Tax policies and procedures could be SCH4 considered a change of scope where it impacts the work effort and will be approved through the change management process. For each deliverable defined as documentation, an electronic copy will be provided and stored in a ADM1 central project repository that remains in control of the NMDWS Project Office; Hard copies, as defined in the contracts, will be delivered to the NMDWS Project Office where one copy will remain in the library. Each contractor team member who is working on the designated project office site will LOG1 have an office desk with its own high-speed access to the Internet and contractor’s Internet locations.

10.0 SIGNIFICANT RISKS AND MITIGATION STRATEGY

# Risk Prob Impact Mitigation Plan

Any change in direction for the * This should be included as part of the architecture may have significant evaluation for the vendor selection 1 impact on infrastructure support Certain High and technical integration with the * This includes an optional DotNet CLAIMS system. architecture.

*Preparing TARC materials with known data Certification for Implementation *Work with TARC / PCC owners to pre- Phase (3rd gate) will occur prior to 2 Expected Very High identify any challenges/issues full knowledge of architecture *Include in the RFP requirement at requirements by PCC. BAFO's to the vendors to include the architecture Skilled term developers will not be ready to work at project start up. *Start looking for potential candidates as Identification of skills required for soon as the proposals are received 3 Certain High term developers (3) will be *Create Matrix for skill sets that will be delayed to the event of vendor required based on proposals selection (i.e., system).

# Risk Prob Impact Mitigation Plan

*Team will commit resources Unavailability of NMDWS *Identify reviewers and approving internal business resources will authority as part of the planning process 4 impact the project schedule and Expected High *Communicate target review cycles quality of reviews and acceptance ahead of time of project deliverables. *Allow for interim reviews

11.0 COMMUNICATION PLAN FOR EXECUTIVE REPORTING

Refer to Section 6.5 Communication Plan in the PMP

12.0 INDEPENDENT VERIFICATION AND VALIDATION - IV&V

Refer to Section 6.2 Independent Verification and Validation (IV&V) in the PMP

13.0 PROJECT CHARTER AGENCY APPROVAL SIGNATURES

SIGNATURE DATE

PROJECT SPONSOR NEIL MEONI – DEPUTY SECRETARY

BUSINESS OWNER CASANDRA ENCINIAS – BUREAU CHIEF

PROJECT MANAGER JULIE LOPEZ-CASAUS (INTERIM)

14.0 PROJECT CHARTER CERTIFICATION APPROVAL SIGNATURE

SIGNATURE DATE

DOIT / PCC APPROVAL