Request for Certification and Release of Funds Form s11

Project Planning Request for Certification and Release of Funds Form

ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE

PROJECT GOVERNANCE

PROJECT NAME Unemployment Insurance (UI) Tax with addition of UI Claims

DATE 11/2/10

LEAD AGENCY DEPARTMENT OF WORKFORCE SOLUTIONS (DWS)

OTHER AGENCIES N/A

EXECUTIVE SPONSOR Neil Meoni – Deputy Cabinet Secretary

AGENCY HEAD Ken Ortiz – Cabinet Secretary

AGENCY CIO/IT LEAD John Salazar – CIO

PROJECT MANAGER Paul McNally

PROJECT ABSTRACT (PROVIDE A BRIEF DESCRIPTION AND PURPOSE FOR THIS PROJECT) In 2009, the New Mexico Department of Workforce Solutions (DWS) issued an RFP to implement a new unemployment insurance (UI) tax system, with an option to implement an accompanying new UI claims system. To address ongoing technical and system performance issues with the legacy UI Claims system, DWS is recommending the expansion of the uFACTS project to include the UI Claims component with the UI Tax project.

To address this business need, DWS requests approval to change the scope, schedule, and budget of the project and is requesting a release of funds to implement this phase of the project.

The Unemployment Framework for Automated Claim & Tax Services (uFACTS) was implemented completely in Minnesota in 2007 and includes both the Tax and Claims system components. Massachusetts implemented the tax component in 2009 and is currently working on the claims component, scheduled to be implemented by June 2011.

With a market value of approximately $25,000,000, the DWS acquisition cost for the UI claims project component of uFACTS is approximately $9,714,628. It will have projected 18-month implementation timeframe. As proposed, this solution will be built concurrently with the UI tax system project which is already in development. Start Date 11/1/10 Planned End Date 5/31/12

$3,079,906 - UI Claims - Planning

Amount Requested this Certification  PSA $400,000  Source of Funds: $5,044,575 ARRA UI  PM $250,000 modernization funding (One-Third Plan): Chapter 6,  Del $2,429,906 Laws of 2010 (Second Special Session), Section 5-- Special Appropriations, subsection 11; HB 2, page 219, line 22 Amount Previously Certified $ 26,960,000.00 – UI Tax

Remaining Appropriation not Certified $ 9,321,094.00 – UI Claims – Implementation Total Appropriated Amount (include any new funds) $39,361,000.00 – UI Tax & Claims

CERTIFICATION HISTORY - UI TAX COMPONENT (INCLUDE ANY PREVIOUS PROJECT OR PHASE CERTIFICATIONS)

Date Amount Funding Source(s) (use specific citations to laws, grants, etc.) June ‘06 $200,000 Reed Act Laws of 2006, Chapter 109, section 7, subsection 19 (extended)

April ‘07 $1,750,000 Reed Act Laws of 2007, Chapter 28, Section 7, Subsection 23 (extended) December ‘09 $9,010,000 Reed Act Laws of 2009, Chapter 124, Section 7, Subsection 9 (extended) June’10 $16,000,000 UI Mod – Reed Act Laws of 2010, Chapter 6, Section 5, Subsection 9

APPROPRIATION (INCLUDE ALL FUNDING SOURCES, E.G. FEDERAL, STATE, COUNTY, MUNICIPAL LAWS OR GRANTS) Fiscal Year Amount Funding Source and Appropriation language FY03 $10,960,000 FF – Reed Act  Laws of 2003, Chapter 76, Section 7, Subsection 13. 12,500,000 Original  Laws of 2005, Chapter 33, Section 7, subsection 20 (re- appropriated)  Laws of 2006, Chapter 109, section 7, subsection 19 (extended)  Laws of 2007, Chapter 28, Section 7, Subsection 23 (extended)  Laws of 2009, Chapter 124, Section 7, Subsection 9 (extended) FY10 $16,000,000 FF – UI Modernization Funds (Reed Act)

 Laws of 2010, Chapter 6, Section 5, Subsection 9 (Origi- nal) FY 11, 12 $12,401,000  $1,882,430 ARRA UI modernization funding (Two- Thirds Plan): Chapter 6, Laws of 2010 (Second Special Session), Section 5--Special Appropriations, subsection 9; HB 2, page 219, line 9  $5,044,575 ARRA UI modernization funding (One-Third Plan): Chapter 6, Laws of 2010 (Second Special Session), Section 5--Special Appropriations, subsection 11; HB 2, page 219, line 22  $2,792,995 Recovery Act Emergency Compensation Act (EUC) funding. This funding does not require appropriation by the state, and does not have a federal expenditure deadline.  $2,681,000 Two-Thirds Plan: Chapter 6, Laws of 2010 (Second Special Session), Section 5--Special Appropriations, subsection 11; HB 2, page 219, line 22

MAJOR DELIVERABLE SCHEDULE AND PERFORMANCE MEASURES (UI CLAIMS) UI Tax Deliverables and Performance Measure Budget Due Date Project Phase HW/SW Specifications for Agency Approval $97,196 11/19/10 Planning Establish UI Claims Knowledge Repository $388,785 11/19/10 Planning Integrate System Environment Planning Document $194,393 11/29/10 Planning Detailed System Requirements $485,981 11/29/10 Planning Detailed Project Workplan $145,794 12/2/10 Planning Project Management Planning and Administration $388,785 11/26/10 Planning Integrated UI Claims Training Plan $145,794 11/26/10 Planning Architectural Design $291,589 12/3/10 Planning Installing and Configuring Equipment $97,196 12/21/10 Planning Data Conversion Design and Development – Part 1 $194,393 12/24/10 Planning Production Environment Development $145,794 1/28/11 Implementation Establish Development/Conversion Environments $97,196 1/28/11 Implementation Establish Proof-of-Concept Environment $583,178 2/4/11 Implementation Integrated Test Plan, Part 1 $97,196 2/4/11 Implementation System Development and Configuration $194,393 2/8/11 Implementation

Documentation, Part 1 Conceptual and Logical Data Model $291,589 2/11/11 Implementation Data Conversion Design and Development Part 2 $291,589 2/25/11 Implementation Detailed System Design $923,364 3/25/11 Implementation Data Management Design $194,393 4/15/11 Implementation Establish Integration/System Test/UAT/QA $194,393 4/22/11 Implementation Environments UI Test Plan $194,393 5/13/11 Implementation Establish Training Environment $97,196 5/20/11 Implementation Data Conversion Design and Development Part 3 $291,589 11/18/11 Implementation Production System Implementation Plan $194,393 11/25/11 Implementation System Development and Configuration $874,766 12/9/11 Implementation Documentation Baseline Documentation $48,598 2/3/12 Implementation UI Claims Operations Documentation $48,598 2/3/12 Implementation UI Claims Test Results $291,589 2/17/12 Implementation Execute the Training Plan $194,393 3/2/12 Implementation Project Reporting $1,445,000 Monthly Implementation Data Conversion Results $194,393 3/12/12 Implementation Production System Implementation Plan $97,196 3/19/12 Implementation Production System Implementation $291,589 4/23/12 Implementation Final Project/Contract Closeout Letter $7,944.00 9/18/12 Implementation Implementation Vendor cost (UI Claims): $9,714,628

Project Performance Measures:  Convert system processing from batch processing to transaction processing. This will allow agency to provide services beyond the current M-F, 8-5 and allow for both extended hours of service as well as for maintenance windows.  Upgrade solution to in-warranty grade hardware and retire the agency mainframe by April 2012.  Increase normal UI Claims system processing capacity from 10,000 per week to over 60,000 per week.  Automate up to 25-federal reports for a current manual Excel process keyed in from Batch generat-

ed data.  Replace a non-functional “Workflow” system component with an integrated ‘Workflow’ solution to allow the UI Claims Adjudication business unit to increase productivity by 75% and reduce process backlog from 3-months to less than 30-days.  Reduce UI Claims system maintenance overtime hours by 50%.

BUDGET Comments: Acquisition and implementation of the uFACTS UI Claims application shall be funded through the following streams:  $1,882,430 ARRA UI modernization funding (Two-Thirds Plan): Chapter 6, Laws of 2010 (Second Special Session), Section 5--Special Appropriations, subsection 9; HB 2, page 219, line 9  $5,044,575 ARRA UI modernization funding (One-Third Plan): Chapter 6, Laws of 2010 (Second Special Session), Section 5--Special Appropriations, subsection 11; HB 2, page 219, line 22  $2,792,995 Recovery Act Emergency Compensation Act (EUC) funding. This funding does not require appropriation by the state, and does not have a federal expenditure deadline.  $2,681,000 Two-Thirds Plan: Chapter 6, Laws of 2010 (Second Special Session), Section 5-- Special Appropriations, subsection 11; HB 2, page 219, line 22 Description FY09 & Prior FY10 FY11 & 12 FY13&After

IV&V $100,000

Consulting PM $250,000 * Services App Support Prof Services $900,000 Hardware $750,000

Software $9,720,000

GRT $681,000

$12,401,000 TOTAL

IT SYSTEM ANALYSIS (ON THIS DOCUMENT, OR AS AN ATTACHMENT, PROVIDE A SUMMARY DESCRIPTION OF THE TECHNICAL ARCHITECTURE) This project will use the existing architecture established by the UI Tax system (uFACTS). It includes a DotNet/ Oracle platform and a blade server / SAN infrastructure hosted at the

DoIT data center. The design will be expanded to accommodate additional hardware requirements for this component.

INTEROPERABILITY (DESCRIBE IF/HOW THIS PROJECT INTERFACES WITH EXISTING SYSTEMS/APPLICATIONS) The UI Claims and UI Tax components of uFACTS share A common architectural platform which will be expanded/scaled to accommodate the scope change.

INDEPENDENT VERIFICATION & VALIDATION (INCLUDE SUMMARY OF THE LATEST IV & V REPORT) IV&V will be managed in two parts.  Part 1 was an interim IV&V vendor working on the project through October 2010.  Part 2 is provided through NM Abilities / Harris Technologies for UI Tax.  Part 3 to include the addition of UI Claims. Is being addressed with GSD/SPD and the vendor.

SIGNIFICANT RISKS AND MITIGATION STRATEGY

RISK 1: PROJECT SCHEDULE DELAYS Mitigation 1: The agency and vendor project managers and agency project team will work closely with the executive steering committee to manage and mitigate schedule issues that may place risks on project work sc hedule and planned deliverable dates Mitigation 2: The project team is being expanded to meet the needs of the larger project scope

RISK 2: BUDGET AND COST MANAGEMENT Mitigation 2: Project manager and agency project team will work closely with the executive steering co mmittee to manage and mitigate project budget and spending that may place risks on project budget

RISK3: PROJECT SCOPE Mitigation 3: Project manager and agency project team will work closely with the executive steering co mmittee to manage and mitigate project deliverables or requirements changes that may place risks on pr oject scope

TRANSITION TO OPERATIONS: (DESCRIBE AGENCY PLAN TO MIGRATE PROJECT SOLUTION TO PRODUCTION. INCLUDE AGENCY PLANS TO FUND AND MAINTAIN THIS PROJECT AFTER DEPLOYMENT. ) DWS will direct and oversee the project implementation contractor to ensure that necessary equipment, software, network connectivity, interfaces, power, data storage and conversion, and other required components are in place prior to production cut-over and project acceptance.

Through the project team, DWS will monitor related tasks and resources to ensure that all production site and environment preparations are ready and completed in accordance with specifications and cut-over plans.

DWS will continue to involve agency technical and business staff in each deliverable to ensure that agency is ready to take ownership of project solutions as they are delivered.

For project funding, the agency will use the existing budget categories currently used to fund the existing system maintenance. Funds from the legacy system maintenance will be redirected to support the new application. DWS is purchasing the code for the new application and will, where possible, provide maintenance services in-house.