Enterprise Technology 150 - PL - KR - BUSINESS AND IT TRANSFORMATION

Agency Submittal: 21-2018 Suppl Agency Req Budget Period: 2017-19

REQUEST

The Department of Social and Health Services (DSHS) Enterprise Technology (ET) requests 2.0 FTEs for the future development and evolution of the Automated Client Eligibility System (ACES). The request for funding for the 2.0 FTE resides in the Economic Services Administration’s (ESA) 2018 Supplemental Budget Request in 060 – PL – KR – Business and IT Transformation.

PROBLEM STATEMENT

ESA must plan for the future viability and operability of business functions currently met by the ACES complex of information technology systems. The ACES complex is used by all the Administrations within DSHS, the Health Care Authority (HCA), the Health Benefit Exchange (HBE), the Department of Children, Youth, and Families (DCYF), and the Department of Health (DOH). These agencies are collectively known as Health and Human Services (HHS) agencies. Technology changes constantly and as it evolved, support for older, legacy systems (such as the ACES complex which is more than 20 years old) becomes harder to find resulting in inability to evolve business functionality as quickly as desired or in some cases, at all. Responding to legislative direction, ESA recognizes that a robust planning process is needed to address the 21st century needs of the agencies and people who rely on this complex. The ACES Complex includes:

Mainframe and web environments that support client intake and screening, scheduling, application processing, benefit calculation and issuance, client notifications, data collection and reporting, and over 70 state and federal interfaces.

Eligibility Service which supports Washington’s Health Benefit Exchange.

Washington Connection which is an online web application for use by Washingtonians in applying for child care, child support, food assistance, medical insurance, and other assistance.

The ACES Complex supports:

Benefit delivery to almost 2.8 million children and adults in Washington every year.

A user base of over 6,000 staff within five different state agencies in 90 locations across the state The delivery of $1.7 billion in cash, and food assistance every year. (HCA utilizes ACES data to make medical

payments of $7.98 billion through a different system.)

PROPOSED SOLUTION ET requests 2.0 FTEs to support ESA in these efforts:

Completion of a document that contains comprehensive business and technical requirements that are aligned with the agency’s Information Technology (IT) architecture. This document will be the foundation for a

150 - PL - KR - Business and IT Transformation

comprehensive RFP to ensure a competitive and effective procurement for a system that will provide eligibility and authorization functionality for HHS agencies.

An actionable recommendation from the IT industry’s leading consultant for an ESA IT organizational structure and governance approach, and a roadmap for optimizing ESA IT capabilities, costs, staffing, and skills.

In-house permanent expertise and a single point-of-contact with HCA to focus on maximizing federal funding through the APD process.

Please see Decision Package 060-PL-KR – Business and IT Transformation for the request for funding for these 2.0 FTEs.

EXPECTED RESULTS

Successful outcomes include:

RFP Team and ET Staffing: Comprehensive business and technical requirements, aligned with agency architecture, as a foundation for a comprehensive RFP to ensure a competitive and effective procurement for the Business & IT Transformation Solution.

Gartner Consulting: A recommended target organizational structure and governance, along with a roadmap for optimizing ESA IT Solutions business and solution capabilities; IT costs, staffing, organization, and skills, resulting in ESA becoming a more effective and efficient organization able to support Business and IT Transformation efforts.

APD Writer: ESA will have in-house expertise and a single point-of-contact with HCA to focus on maximizing federal funding available through the APD processes.

STAKEHOLDER IMPACT

DSHS Administrations and other HHS state agencies rely on functionality provided by the ACES Complex, including the Eligibility Service. The majority of these stakeholders have been involved in creating the business vision document and have a vested interest in making sure the Business and IT Transformation project is successful. These stakeholders are in support of this proposal. Agency Contact: Adam Lewis (360) 902 - 8179 Program Contact: An-Hung Dang (360) 902 – 0857

OTHER CONNECTIONS

Performance Outcomes/Important Connections 1. Does this DP provide essential support to one or more of the Governor’s Results Washington priorities?

Goal 5: Efficient, Effective & Accountable Government - Customer Satisfaction and Confidence - 1.1 Increase

customer services.

150 - PL - KR - Business and IT Transformation

Goal 5: Efficient, Effective & Accountable Government - Resource Stewardship - Ensure that funding is used

responsibly.

2. Identify other important connections or impacts below. (Indicate ‘Yes’ or ‘No’. If ‘Yes’ identify the connections or impacts related to the proposal.)

a) Regional/County impacts? No b) Other local government impacts? No c) Tribal government impacts? No d) Other state agency impacts? Yes e) Responds to specific task force, report, mandate or executive order? No f) Does request contain a compensation change or require changes to a Collective Bargaining Agreement? No

g) Facility/workplace needs or impacts? Yes h) Capital budget impacts? No i) Is change required to existing statutes, rules or contracts? No

j) Is the request related to litigation? No k) Is the request related to Puget Sound recovery? No l) Other important connections? None 3. Please provide a detailed discussion of connections/impacts identified above. d)DSHS administrations and other HHS state agencies rely on the functionality provided by the ACES Complex. The majority of these stakeholders have been involved in creating the business vision document and have a vested interest in ensuring the Business and IT Transformation project is successful. These stakeholders are in support of this proposal. The five HHS agencies in the state rely on the functionality provided by the ACES Complex. Changes to how medical, food and cash programs are managed by ESA will directly impact the services provided by those five organizations. Desire for service flexibility, adaptability, accessibility, response, efficiency, streamline processes, and communications are common visioning expectations across the HHS agencies. g) Short-term impacts include where to place the RFP writing team for the 20 months of engagement. They will need to be isolated from all of the IT vendors in DSHS, HCA, and HBE to avoid compromising vendor competition for the resulting Business and IT Transformation Solution procurement.

150 - PL - KR - Business and IT Transformation

Alternatives/Consequences/Other 4. What alternatives were explored by the agency, and why was this alternative chosen?

The alternative is to continue managing and maintaining 20+ year old systems, and using systems and processes that no longer keep up with business requirements. These solutions will assist ESA in building a stronger, more efficient and effective organization, as well as further down the road towards modernization and eventual transformation.

5. How has or can the agency address the issue or need within its current appropriation level? No, this amount is over and above what is possible to absorb within current appropriations. 6. Does this decision package include funding for any IT-related costs (hardware, software, services, cloud-based

services, contracts or IT staff)?

☐ No

☒ Yes (Include an IT Addendum)

Fiscal Detail 150 - PL - KR - Business and IT Transformation

Operating Expenditures FY 2018 FY 2019 FY 2020 FY 2021

0 0 0 0

Total Cost 0 0 0 0

Staffing FY 2018 FY 2019 FY 2020 FY 2021

FTEs 2.0 2.0 2.0 2.0

Performance Measure Detail

Incremental Changes

Activity: FY 2018 FY 2019 FY 2020 FY 2021

Program: 150

No measures submitted for package

Object Detail FY 2018 FY 2019 FY 2020 FY 2021

0 0 0 0

Total Objects 0 0 0 0

DSHS Source Detail

Overall Funding

Operating Expenditures FY 2018 FY 2019 FY 2020 FY 2021

Fund 001-1, General Fund-State

Sources Title

11 0 0 0 0

Total for Fund 001-1 0 0 0 0

Total Overall Funding 0 0 0 0

1

2018 Supplemental Budget IT Addendum – 110 – PL – KR – DSHS Business and IT Transformation

Part 1: Itemized IT Costs Please itemize any IT-related costs, including hardware, software, services (including cloud-based services), contracts (including professional services, quality assurance, and independent verification and validation), or IT staff. Be as specific as you can. (See chapter 12.1 of the operating budget instructions for guidance on what counts as “IT-related costs”)

Information Technology Items in this DP

(insert rows as required) FY 2018 FY 2019 FY 2020 FY 2021

Two FTE Authority $0 $0 $0 $0

Total Cost $0 $0 $0 $0

Current estimates will not exceed $1,000,000 over the biennium.

*CBO salary schedule does not identify FY2020/21 assume 5% change

Part 2: Identifying IT Projects If the investment proposed in the decision package is the development or acquisition of an IT project/system, or is an enhancement to or modification of an existing IT project/system, it will also be reviewed and ranked by the OCIO as required by RCW 43.88.092. The answers to the three questions below will help OFM and the OCIO determine whether this decision package is, or enhances/modifies, an IT project:

1. Does this decision package fund the development or acquisition of a ☐Yes ☒ No new or enhanced software or hardware system or service?

2. Does this decision package fund the acquisition or enhancements ☐Yes ☒ No of any agency data centers? (See OCIO Policy 184 for definition.)

3. Does this decision package fund the continuation of a project that ☐Yes ☒ No is, or will be, under OCIO oversight? (See OCIO Policy 121.)

If you answered “yes” to any of these questions, you must complete a concept review with the OCIO before submitting your budget request. Refer to chapter 12.2 of the operating budget instructions for more information.