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REQUEST FOR INFORMATION (RFI) #18-1100 OFFICE OF FINANCIAL ONE WASHINGTON PROGRAM

RFI : Fully Integrated Platform and Enterprise Planning Software as a

Response Due Date: All RFI responses must be received by:

3:30 PM Pacific Time on Thursday, August 30, 2018

E-Mail Response to: Rebecca R. Riley Office of [email protected]

Washington Enterprise 920-02 Access Services, Data System (WEBS) 209-11 /Financial: Bookkeeping, Billing Codes: and Invoicing, Budgeting, Payroll, , etc. 920-03 Application Service Provider (ASP) (Web Based Hosted) 209-12 Application Software, Mainframe Computer (Incl. Cobol) 920-04 Applications Software (For Main Frame Systems) 209-37 Data Processing Software, Mini/Mainframe Computer 209-38 Database Software 209-52 Human Software 209-87 Software, Mini/Mainframe Computer (Not Otherwise Classified) 209-59 Logistics and Supply Chain Software 208-10 Accounting/Financial: Bookkeeping, Billing and Invoicing, Budgeting, Payroll, Taxes, etc.

208-53 Integrated Software

Request for Information

1.1 Purpose

With this RFI, OFM is interested in understanding new developments in the for fully hosted platforms or suite of platforms (SaaS/PaaS/IaaS) with integrations between Enterprise Resource Planning (ERP) software and other niche software deployed as a Service. Specifically, we are interested in vendors who provide this service that includes Managed ERP, fully hosted platform with integration to other key software packages as a single complete Service package. For the purposes of this RFI we will reference this constellation of services as “Fully Integrated Platform and Enterprise Resource Planning Software as a Service”.

The purpose of this Request for Information (RFI) is to:

1) Gather information about available vendor managed and hosted, cloud-based ERP software services packaged as a fully integrated, or modular solution inclusive of other key or niche software in one package as a service for government 2) Understand Responder approach to and current capabilities in providing a Fully Integrated Platform and Enterprise Resource Planning Software as a Service to government entities, inclusive of possible add on solutions for non-core ERP business needs 3) Understand Responder’s approach to implementing and future technology through this one integrated solution platform 4) Identify the approximate costs of such solutions over a fifteen year period of time.

OFM is interested in exploring how a Fully Integrated Platform and Enterprise Resource Planning Software as a Service could support efficiencies in its transformation efforts including, but not limited to lowering the cost of IT due to economies of scale, improving scalability, reducing risk in implementation, smoothing the funding requirements to an operational instead of a capital expense, and the ability to quickly test and provision new applications. Traditional implementation methodologies within government, especially related to funding, often limit the ability to take advantage of these efficiencies.

OFM will use the data gathered from this RFI to assess current options available to the state for the most effective approach to implementation of enterprise business systems or an ERP through its One Washington Program. 1.2 Program Description and Business Needs This section gives a high level overview of the Office of Financial Management (OFM) and, within OFM, the One Washington Program. Responders are encouraged to review additional detailed information including the current version of the One Washington Blueprint found on the One Washington website.

Office of Financial Management (OFM) The Office of Financial Management (OFM) is a cabinet-level agency within the Executive Branch of Washington state government that provides vital information, fiscal services and policy support to the Governor, Legislature and state agencies in their efforts to serve the people of Washington State. In this role, OFM centrally develops and maintains state administrative and accounting policies and prepares statewide financial reports. OFM is accountable for providing enterprise financial systems and coordinating improvements in statewide financial processes. OFM has established “Better information. Better decisions. Better government. Better Washington.” as their strategic vision. In 2013, recognizing that modernization of state practices and underlying technologies is of critical importance to providing better data and information, OFM established the One Washington Program in order to provide consistent focus, planning and execution for enterprise business transformation efforts.

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The One Washington Program OFM created the One Washington Program in 2013 to support the need to transform legacy business processes and to modernize Washington’s legacy systems. One Washington is a business transformation program led by OFM to improve the methods and systems that support statewide administrative processes through driving innovation and modernization. One Washington is focused on driving improvement in four key business processes:

• Financials • • Budgeting • One Washington is a comprehensive, business transformation program to modernize and improve aging administrative systems and related business processes that are common across state government.

One Washington’s will come from creating consistency and commonality in the state’s enterprise administrative processes and is envisioned to improve:

• Statewide collection of critical data, information, and in support of operations and decision-making • Integrity and reliability of data collected • Consistency through common business processes and common systems • Transparency of data information • Data conversion for decision making insights • Prevention of system failures • Budget development, planning and management

One Washington Governance The One Washington Program is a business transformation program currently completing the final stages of planning and development. An Executive Steering Committee was established in August of 2017. The Executive Steering Committee articulates a vision for the program across the enterprise. Its role is to ensure that business expectations are clearly understood by all stakeholders and that the program direction aligns with business priorities. The Steering Committee is comprised of leadership from agencies across the enterprise. The State of Washington recognizes that effective governance is key to success for any business transformation effort. OFM owns the responsibility for initiating and managing governance groups and processes. Additional advisory groups are being established to provide more guidance to the One Washington Program.

• One Washington is required to adhere to Office of the Chief Information Officer (OCIO) oversight.

• The Deputy Director at OFM is the Program Sponsor. As champion for the business modernization and transformation effort, the Program Sponsor is responsible for clearing barriers and resolving issues of scope, schedule, budget or quality that the Program Director and team are unable to resolve.

• The One Washington Program Director has executive level oversight of the Program and is accountable for the achievement of Program outcomes. The Program Director is responsible for stakeholder management and budgetary accountability. The Program Director is responsible for escalating key decision points to the Program Sponsor.

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• The One Washington Program has a contracted Professional Project Manager that has oversight for the Program’s day-to-day execution.

• The One Washington Program has recently contracted for Quality Assurance (QA) oversight as well.

• The graphic below illustrates the One Washington governance structure.

Figure 1: One Washington Governance

Legacy Systems and Process Environment Washington currently relies on a number of aging information systems that limit the state’s ability to transform and modernize . Using Lean techniques is minimally effective because the base technology is old, inflexible and limiting. These older systems do not meet modern expectations for access to accurate and timely data, decision support and transparency. Additionally, integration with other systems is costly and difficult. The lack of modern functionality in these legacy systems to data and process duplication across state government as agencies have been required to meet these needs on their own. The One Washington Program seeks to address these issues through transformation supported by the replacement of core legacy systems.

Accounting. There are two primary legacy systems supporting the financial business process. These include the state’s central , AFRS, which was implemented in 1984; and the Department of Transportation’s financial system, TRAINS, which was implemented in 1991.

AFRS is a mainframe accounting system that provides accounting support for all Washington State Agencies including cabinet level agencies, separately elected entities and higher institutions. AFRS is Washington State’s central accounting system for recording revenues, expenditures, receipts, disbursements, staffing, and allotments. AFRS is the official book of record for Washington State. AFRS is a customized version of the KPMG R*STARS software package that was installed more than 35 years ago and has been customized to meet the unique needs of Washington State. Data from AFRS, once processed, is loaded into a structured query language (SQL) data warehouse to support statewide financial reporting and processes.

TRAINS is a mainframe accounting system that provides accounting support for all of WSDOT’s revenues, expenditures, receipts, disbursements, resources, and obligations. It is a highly customized version of an American Management Systems (AMS, now CGI) software package. TRAINS is used as WSDOT’s primary financial system and is unique in the state for that reason. Data from TRAINS, once processed, is sent to AFRS at an aggregate level to support statewide financial processes. The TRAINS application also includes the current WSDOT budgeting

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system known as the Transportation Allotment and allocation Control System (TRACS) that will be included in Budgeting system described below.

Budgeting. Beyond Financials, the state has additional information technology systems supporting other administrative functions. The statewide budget development process is supported by a collection of agency and enterprise systems. Departments or agencies use their own process and systems, such as TRACS within WSDOT, to develop their individual budgets. This year OFM replaced the fragile Budget Development System (BDS) for operating budgets with an Agency Budget System (ABS), which will provide a stable environment until the One Washington solution can be implemented. The OFM budget development applications also contain seven modules upgraded between December 2015 and December 2016, replacing applications implemented in the mid-1990s. However, all of these modules remain separate applications, requiring extensive integrations and reconciliation of data. Significant budget process transformation is anticipated with the implementation of a modern budgeting solution.

Procurement. Washington's enterprise procurement processes are not supported by an end-to-end information technology system. Rather, these processes are currently supported by a number of disparate systems with limited information being shared between the systems. As a result, the state has significant diversity in their procurement processes and significant limitations in reporting on spending and procurement related activities and functions. The lack of system requires state agencies to use manual processes for vendor management, procure-to- pay and management which ultimately limits the productivity of the staff completing these processes.

Human Resources. In the human resources domain, Washington uses an instance of SAP’s Human Capital Management referred to as the Human System (HRMS) to support personnel administration and payroll. Limited functionality beyond payroll and core human resource management has been implemented in the SAP . When HRMS was implemented in 2006, substantial customizations were made to SAP software, making the support and upgrade path more difficult and expensive. From this experience, One Washington has identified the need to limit customizations in future One Washington transformations.

In addition to the systems described above, there are additional state systems that integrate with or replicate the functions of AFRS. Many of these systems were implemented in the 1980s or 1990s and are joined together using a combination of aging technology, out-of-date computer coding and cumbersome manual efforts conducted by state employees. As a result, the State struggles to effectively pull together data on state resources and combine it into meaningful information for decision makers to use to guide and manage activities.

Organizational (OCM) Washington’s systems infrastructure is complex, fragile, and requires the constant monitoring by information technology staff. For the most part, only mandated changes are made to any legacy system in order to maintain system stability. As a result of the inability to easily make system changes, “workarounds” are necessary to keep pace with changing rules and procedures and state staff utilize numerous spreadsheets and desktop databases to verify and track transactions and costs. These offline systems and processes to duplicate sources of data that may contain potentially conflicting information. In addition, there is diminishing expertise within the State in the mainframe computer languages used to build and maintain many of these applications. As a result, there is the potential for system failure if existing resources cannot keep up with the demands for application changes or if they are not available to perform necessary support activities.

Budget and Funding Washington enacts budgets on a two-year cycle, beginning July 1 of each odd-numbered year. The biennial budget enacted by the Legislature can be modified in any legislative session through changes to the original appropriations.

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It is typical for the Legislature to enact annual revisions to the state’s biennial budget. These revisions are referred to as supplemental budgets. One Washington is expected to span multiple biennial budget cycles and it is currently envisioned that the Program projects and initiatives will be funded incrementally through a series of budget cycles.

Due to uncertainties that we cannot anticipate and have no control over, One Washington cannot guarantee funding will be available for all planned activities detailed in the One Washington Blueprint. Therefore, full and effective implementation of an ERP solution is contingent upon such incremental funding.

Future Planned Activities One Washington has a proposed timeline of the business transformation efforts. The following graphic represents the current anticipated timeline and the vision for the program.

Figure 3: One Washington Program Implementation Timeline FY19-26 1.4 Managed ERP

During its planning process, OFM has become aware of the possibility of vendor managed and hosted Fully Integrated Platform and Enterprise Resource Planning Software as a Service that would allow OFM/One Washington to focus on procurement of processes and outcomes rather than technology itself. Relying instead on the vendor to implement, own and manage the technical platform integrations and software updates necessary to support the state’s processes and outcomes.

OFM is therefore interested in Responders who have successfully implemented Fully Integrated Platform and Enterprise Resource Planning Software as a Service in government settings. The Fully Integrated Platform and Enterprise Resource Planning Software as a Service is envisioned by OFM as procurement of business processes with the IT implementation and integration behind the scenes. The contracted vendor would be responsible for the platform, integrations and software powering the business processes procured by the state including but not limited to software, platform, infrastructure, onboarding, operations, and continued innovation and updates. The environment would include core ERP business functions as well as integration of additional solutions of needed or niche software to handle Washington State specific unique business needs (e.g. treasury, , or Management).

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1.5 Technology Standards Washington State has various laws and policies related to technology. Any system must have the ability to conform to the following: 1. Section 508 of the Federal Americans with Disabilities Act. 2. State records retention policies and OFM specific records retention policies 3. OCIO Disaster Recover and Business Resumption Standard 151.10 4. State Security Policy 141 and State Security Standards 141.10

The state of Washington has various data requirements that must be met by any software solution, including: 1. All data must be stored and transmitted in the contiguous United State. Offshore data transmission or storage is prohibited. 2. All data must remain the exclusive of the state of Washington. 3. All data must be returned to the state of Washington in a standard format and wiped from any provider solution in the event of a expiration or termination. 4. All data transfers must be encrypted using 128bit or higher SSL for HTTP traffic and SSH version 2 for any batch or real-time non-http transfers.

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Section 2–Response to this RFI

2.1 Requested Response In response to this Request for Information, the OFM is seeking: 1. A cover letter providing basic product, Responder and contact information as defined in section 2.2 below. 2. A response to the questions listed below in section 2.3 that detail the Fully Integrated Platform and Enterprise Resource Planning Software as a Service that are currently commercially available as a solution for meeting OFM’s business needs as described in this document. 2.2 Cover Letter Instructions Responders are asked to provide a cover letter that includes the following data: • Responder name • Official address • Official contact(s) name, phone number, and email address • Product website • A brief introduction of your firm/product • Responder longevity • Product longevity • Size and type of customer base for Fully Integrated Platform and Enterprise Resource Planning Software as a Service 2.3 Responder Questions OFM is requesting a response to each of the questions set forth below. It is recommended that you respond to these questions in the order presented in the RFI. The suggested format for responses to these questions is a brief but complete narrative. Product brochures or other supplemental materials are also welcome.

1. Briefly summarize the Fully Integrated Platform and Enterprise Resource Planning Software as a Service available to meet OFM needs outlined in this RFI and further detailed in the current version of the One Washington Blueprint can be found on the One Washington website. 2. Explain how the Fully Integrated Platform and Enterprise Resource Planning Software as a Service represents the best available option for government in general and more specifically the state’s business process needs for Accounting, Procurement, Budget and Human Resources as describe in this RFI. Include any unique or innovative features of the service or product stack. 3. Describe how the Fully Integrated Platform and Enterprise Resource Planning Software as a Service meet the business needs outlined in this RFI and further detailed in the current version of the One Washington Blueprint can be found on the One Washington website. 4. Describe in detail your company’s approach to configuring the Fully Integrated Platform and Enterprise Resource Planning Software as a Service and onboarding customer users for productive use of the Service. 5. Provide a sample configuration and onboarding plan that models your standard practice for provisioning Fully Integrated Platform and Enterprise Resource Planning Software as a Service for a customer of a similar size and complexity. The plan should include:

1. A list of tasks that are necessary for a successful project implementation, 2. The approximate timeframes for each task, 3. The Responder resources (including subcontractors) that are necessary to complete these tasks, 4. The state’s resources that are necessary to complete these tasks, 5. How you will analyze, recommend, and transition existing systems/resources, and 6. Other resources that are necessary to support implementation of Fully Integrated Platform and Enterprise Resource Planning Software as a Service.

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6. Describe your company’s experience successfully configuring and providing Fully Integrated Platform and Enterprise Resource Planning Software as a Service in a large government setting similar to the State of Washington. 7. Describe your company’s experience successfully integrating your Fully Integrated Platform and Enterprise Resource Planning Software as a Service with non-proprietary solutions. 8. Describe how your company approaches ongoing support after initial configuration and onboarding activities. 9. Explain the Responder’s training approach for Fully Integrated Platform and Enterprise Resource Planning Software as a Service product roll-out. Consider including sample training materials and user guides. 10. Describe how the Fully Integrated Platform and Enterprise Resource Planning Software as a Service meet the technical standards listed in Section 1.5 Technical Standards above. 11. List other state, county, or large municipal governmental entities where similar Fully Integrated Platform and Enterprise Resource Planning Software as a Service consistent with the content of the RFI have been provided. Provide a summary of the services provided and the results achieved. 12. Describe (or provide) your Fully Integrated Platform and Enterprise Resource Planning Software as a Service roadmap. Describe how your product supports best practices and innovation in the ERP services . 13. OFM understands that Responders may not be able to provide precise costs without having specific additional information, however, it is essential for OFM’s planning and funding efforts that Responders provide a rough order of magnitude on known costs associated with the solutions. Therefore, please answer the following:

1. What Fully Integrated Platform and Enterprise Resource Planning Software as a Service are needed to support the core business processes defined in Section 1.2 of this RFI including the implementation services for configuration and onboarding required for each module? 2. What non-recurring costs should OFM anticipate for the Fully Integrated Platform and Enterprise Resource Planning Software as a Service needed to support the core business processes? What is the basis for these costs? What are the variables that drive these costs? 3. What recurring costs should OFM anticipate for the Fully Integrated Platform and Enterprise Resource Planning Software as a Service needed to support the core business processes? What is the basis for these costs? What are the variables that drive these costs? 4. What is not included in the standard recurring costs? How are additional Fully Integrated Platform and Enterprise Resource Planning Software as a Service costs estimated?

Provide cost justification methods/arguments, including customer examples and/or case studies.

14. Are there any specific additional information, issues or areas of concern, not mentioned in your Response, that your firm would like to see addressed in a subsequent procurement process that may result from this RFI? You may consider, but are not limited to, addressing any known risks to implementing this solution, any additional agreements required, any potential performance impacts, or any unique technology requirements. 2.4 Optional Responder Demonstration and Q&A Following the submission of Responses, OFM may request a demonstration of your service. The purpose of the demonstration would be to better understand Responder Fully Integrated Platform and Enterprise Resource Planning Software as a Service capabilities.

In addition, Responders may be asked to respond to follow up questions from OFM to gather a clearer understanding of the Fully Integrated Platform and Enterprise Resource Planning Software as a Service.

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Follow up inquires may be via email or through follow up discussions by phone or as otherwise deemed appropriate by OFM.

These follow up actions are at the sole discretion of OFM, therefore, to ensure that Responder input is considered in the development of any request for proposal, Responders are encouraged to provide a complete Response as defined above.

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Section 3– Administrative Requirements

3.1 RFI Coordinator Upon release of this RFI, all Responder communications concerning this RFI must be directed only to the RFI Coordinator listed below. Responders should rely only on written statements issued by the RFI Coordinator.

Responses to verbal requests for information or clarification will be considered unofficial until received in writing.

Rebecca R. Riley RFI Coordinator Office of Financial Management [email protected] 360-902-7304 3.2 RFI Questions Questions regarding the RFI must be submitted via e-mail to the RFI Coordinator listed above by Thursday, August 30, 2018. The name/company of the Responder that submitted the questions will not be identified in the OFM response which will be distributed to all Responders via the Washington Solution (WEBS).

3.3 RFI Timeline This RFI is being issued under the following timeline:

Activity Timeline RFI Issued August 1, 2018 August 1, 2018 Questions Due from Responders through August 27, 2018 Answers to Responder Questions Posted On or before August 27, 2018 RFI Responses Due August 30, 2018 3:00 PM Pacific Time September 4, 2018 Optional Responder Demonstrations and through Follow Up Inquires September 21, 2018

3.4 Delivery of Responses OFM asks that all Responses be received by 3:00 PM Pacific Time on August 30, 2018.

RFI Responses must be provided via e-mail and submitted to the RFI Coordinator listed in 3.1 above. 3.5 Cost of Response Preparation OFM will not reimburse Responders for any costs associated with preparing a Response to this RFI.

3.6 Response Property of OFM All materials submitted in response to this RFI become the property of OFM. OFM has the right to use any of the ideas presented in any material offered.

3.7 Amendments OFM reserves the right to change the RFI timeline or other portions of this RFI at any time. All amendments will be posted on WEBS and the OFM procurement web site.

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3.8 Right to Cancel OFM reserves the right to cancel or re-issue this RFI at any time without obligation or liability.

3.9 No Obligation to Buy Participation in this RFI is voluntary. OFM will not award any as a result of this RFI. Any procurement of a solution or services will comply with state procurement requirements.

OFM may utilize the results of this RFI in developing an appropriate procurement process to acquire the subject solution or services however, the release of this RFI document will not obligate OFM to release a subsequent solicitation or make any purchases.

3.10 Disclosure of RFI Response Contents

All Responses will become the property of OFM will be deemed public records as defined in chapter 42.56 of the Revised Code of Washington (RCW).

Any information in the Response that is claimed by Responder as proprietary and exempt from disclosure under the provisions of chapter 42.56 RCW, or other state or federal law that provides for such nondisclosure must be clearly designated. The information must be clearly identified and the particular exemption from disclosure upon which the Responder is making the claim must be cited. Each page containing the information claimed to be exempt from disclosure must be clearly identified by the words “Proprietary Information” printed on the lower right hand corner of the page. Marking the entire Response exempt from disclosure or as Proprietary Information will not be honored.

If a public records request is made for the information that the Responder has marked as "Proprietary Information" OFM will notify the Responder of the request and of the date that the records will be released to the requester unless the Responder obtains a court order enjoining that disclosure. If the Responder fails to obtain the court order enjoining disclosure, OFM will release the requested information on the date specified. If a Responder obtains a court order from a court of competent jurisdiction enjoining disclosure pursuant to chapter 42.56 RCW, or other state or federal law that provides for nondisclosure, OFM shall maintain the confidentiality of the Bidder's information per the court order.

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