Request for Information - nvdetr.orgnvdetr.org/PDFS/UI_Mod_RFI.pdf · Request for Information...

Request for Information Unemployment Insurance (UI) Modernization Implementation

RFI DETR001-0805 Issued Date: May 13, 2008

NV DETR UI Modernization of 32 DETRUIM001

Table of Contents

1. Introduction .....................................................................................................................4 1.1 Business Background ............................................................................................ 4 1.2 Problem Description............................................................................................... 5 1.3 Opportunity Description ......................................................................................... 8

2. UI Modernization Functionality......................................................................................9 2.1 UI Contributions and Benefits .............................................................................. 10 2.2 UI System Capabilities......................................................................................... 11 2.3 UI Modernization Approach ................................................................................. 11

3. RFI Response Scope ....................................................................................................12 3.1 Product Overviews............................................................................................... 12 3.2 Vendor Experience............................................................................................... 12 3.3 Project Approach.................................................................................................. 12 3.4 Cost Planning Information.................................................................................... 12

4. Vendor Responses........................................................................................................13 4.1 RFI Events and Schedule .................................................................................... 13 4.2 Submittal Instructions........................................................................................... 13 4.3 Submission Requirements ................................................................................... 14

5. Optional Vendor Presentations ...................................................................................14 5.1 RFI Response Review ......................................................................................... 15

EXHIBIT B – VENDOR RESPONSE FORM ..............................................................................16

ATTACHMENT A – UI Modernization Functionality ...............................................................19 AA.1 UI Contributions........................................................................................................ 19 AA.2 UI Benefits................................................................................................................ 26

Nevada DETR – UI Modernization RFI

NV DETR UI Modernization RFI of 32 DETR001-0805

Table of Tables

Exhibit A - DETR UI Legacy and Related Applications.................................................................7 Table 2 - Current System Environment.........................................................................................7 Table EB.1 Vendor Information...................................................................................................16 Table EB.2 Cost Planning Information........................................................................................16 EXHIBIT B – VENDOR RESPONSE FORM (Continued)...........................................................17 Table EB.3 Vendor UI Contributions Functions Compatibility.....................................................17 Table EA.4 Vendor UI Benefits Functions Compatibility.............................................................17 Table AA.1 UI Contributions User Requirements – Employer Status .........................................19 Table AA.2 UI Contributions User Requirements – Experience Rating ......................................20 Table AA.3 UI Contributions User Requirements – Employer Reporting....................................21 Table AA.4 UI Contributions User Requirements – Cashiering / Accounting .............................21 Table AA.5 UI Contributions User Requirements – Account Maintenance.................................22 Table AA.6 UI Contributions User Requirements – Collections..................................................22 Table AA.7 UI Contributions User Requirements – Field Audit / Investigation ...........................22 Table AA.8 UI Contributions User Requirements – Contributions Support.................................23 Table AA.9 UI Contributions User Requirements – UI Wage System ........................................23 Table AA.10 UI Contributions User Requirements – Department of Labor Reporting................23 Table AA.11 UI Contributions Interfaces.....................................................................................25 Table AA.12 UI Benefits Functional Requirements – UI Claims .................................................26 Table AA.13 UI Benefits Functional Requirements – Monetary..................................................27 Table AA.14 UI Benefits Functional Requirements – Continued Claims ....................................27 Table AA.15 UI Benefits Functional Requirements – Benefit Charging......................................28 Table AA.16 UI Benefits Functional Requirements – Nonmonetary Determinations..................28 Table AA.17 UI Benefits Functional Requirements – Appeals....................................................28 Table AA.18 UI Benefits Functional Requirements – Overpayments .........................................29 Table AA.19 UI Benefits Functional Requirements – Adjustments.............................................29 Table AA.20 UI Benefits Functional Requirements – Interstate..................................................30 Table AA.21 UI Benefits Functional Requirements – Special Programs ....................................30 Table AA.22 UI Benefits Functional Requirements – Reporting .................................................31 Table AA.23 UI Benefits Functional Requirements – Interfaces.................................................31 Table AA.24 UI Benefits Functional Requirements – UI Support Functions...............................32 Table AA.25 UI Benefits Functional Requirements – Financial Accounting ...............................32



1. Introduction

The State of Nevada Department of Employment, Training and Rehabilitation (DETR) is seeking cost and approach planning information for its Unemployment Insurance (UI) technology modernization initiative. Using information obtained from this Request for Information (RFI) and other UI sources, DETR will establish general fiscal planning amounts for upcoming budget cycles. Also, DETR will prepare a more formal Request for Proposal (RFP) to be released in the near future soliciting UI vendors to assist the State in implementing a UI modernization solution. UI modernization vendors are encouraged to become familiar with the content presented below and demonstrate their interest in the upcoming RFP by responding to this general planning information request. 1.1 Business Background DETR’s Employment Security Division (ESD) collects and administrates employer contributions and unemployment benefits for all of Nevada. Each year Nevada’s 60,000+ registered employers submit over 250,000 UI tax reports along with their tax contributions. These contributions are used to provide UI claim benefits to eligible unemployed Nevadans. Processing UI tax reports and UI claim benefits results in numerous business transactions and activities per year. Provided below in Table 1, Nevada UI Business Processing Metrics, are several UI business and processing statistics. The statistics represent a general indication of current UI business and operational volumes.

Table 1 – Nevada UI Business Processing Metrics

Business/Process Item 2007

Statewide Metric

Notes

UI Contributions Metrics Number of Contributory Employers 60,041 Annual Number of Active Employer Accounts 61,000 Annual

Annual Contribution Deposits $395,000,000 Equates to an estimated 300,000 payment transactions annually.

Tax Reports Processed Annually 244,000 Annual New Employer Registrations Processed 13,000 Annual Annual Wage Records Processed 6.5 million Annual Employer Corrections/Adjustments Processed Annually 15,000 Annual

Number of Tax Types Currently Collected 2 UI and CEP Employer Audits Processed Annually 1,000 Annual Employer Records on Master File 95,368 Wage Records in Wage File 24,694,040 UI Contributions Document Imaging Metrics Total Number of Imaged Documents 4,521,977 Total Number of Benefit Charge Statements 380,248 Total Number of Rate Statements 308,055 Approximate number of UI Contributions 100



Table 1 – Nevada UI Business Processing Metrics

Business/Process Item 2007

Statewide Metric

Notes

staff FTEs UI Benefit Metrics

Number of Claims Examiners 66 Monthly Average. Not including support or administrative staff.

Number of Adjudicators 43 Monthly Average. Not including support or administrative staff.

Number of Determinations 95,648 Annual Calls to Claim Examiners 366,470 Annual Number of Initial Claims 164,762 Annual Number Continued Claims 1,406,609 Annual Count of Payments (All Weeks Compensated) 1,166,776 Annual Files Electronically Stored via fax 332,,800 Annual (Archived 2,329,600) Total UI Benefit Payments $324,414,633 Annual Benefit Appeals Information Number of Lower Authority Appeals 9,289 Annual Number of Higher Authority Appeals 1,590 Annual Approximate number of UI Benefits staff FTEs 195

These volumes fluctuate depending on Nevada’s unemployment claim rates, new business registrations and other UI demands. Please note that DETR experiences peak performance periods for different UI transactions, which are not represented above. Over the past several years Nevada’s processing volumes and business metrics have grown approximately 5% per year. While this growth rate may slow in the near term it is expected to be used for ongoing planning purposes. 1.2 Problem Description As part of its UI modernization effort, ESD is seeking to replace legacy automated applications with modernized applications capable of processing the UI business volumes and transactions presented above. These business processes and automated applications must adhere to stringent Federal and State UI processing requirements. DETR is currently completing a more comprehensive UI modernization requirements definition that will be used within the upcoming UI Request for Proposal (RFP). Over the past 20 years the current UI legacy systems were modified and patched to accommodate changing business rules. The core UI Tax Legacy system, Wage system and the core UI Benefit system are no longer viable for ongoing maintenance and enhancement. Modifying internal application architectures to accommodate Nevada’s growing UI constituency is becoming more and more complex and more and more costly. In 1999, legacy systems were extended to allow processing across the Y2K barrier, and more recently major add-on components, such as e-commerce and Internet capability, were added



externally to provide better services to employers and claimants. Although these changes offered significant and immediate business benefit, the overall technical architecture has reached maturity and requires updating and/or replacement to adequately and timely support future business needs. A pictorial representation of the various legacy applications supporting DETR UI processing is presented below in Exhibit A, DETR UI Legacy and Related Applications. Core UI applications include:

• Contributions Legacy – an internal application implemented and modified over the past 20 years to process employer UI taxes and Wage information; and,

• GUIDE - the General Unemployment Insurance Development Effort system developed in the mid 1970s and transported to Nevada in 1998 to specifically bridge the Y2K issue; and,

• Ancillary legacy UI applications and interfaces implemented to: • Support federal processing requirements; • Provide Internet data entry and access; • Facilitate telephonic claims; • Manage appeals and hearings; • Provide additional reporting; and, • Capture Contribution documentation.

In addition to the applications depicted in Exhibit A, DETR’s UI environment interfaces with multiple external entities including other State of Nevada agencies and departments and other Federal entities such as the IRS and Social Security Administration. These interfaces must continue and be fully implemented as part of the UI modernization initiative. Within the UI modernization initiative, DETR is expecting to consolidate and improve the UI application architecture and facilitate system interfacing. Rather than “hardwired” COBOL programs completing data interfacing a more robust interface solution is sought: one that improves interface flexibility for accommodating business change; is self-documenting and provides greater flexibility in scheduling, monitoring and operating data exchanges. DETR seeks improved system integration by integrating UI applications and manual business functions that are better served by being an integral part of the core application. Newer technologies that utilize Business Process Execution Language (BPEL), Service Oriented Architecture (SOA) and other improved technologies are of interest.



Exhibit A - DETR UI Legacy and Related Applications

GUIDE(Mainframe,

COBOL,CICS,Natural, VSAM, ADABAS, Batch,

Online)

ContributionsLegacy(Mainframe,ADABAS, COBOL, CICS, Keymaster,

Batch, Online)

RSP(Oracle/UNIXOnline, batch)

REA(Oracle/UNIXOnline, batch)

ONAMS(Oracle/UNIX)

RapidResponse

(Oracle/UNIXOnline, batch)

R&ABatch Applications

(Mainframe,COBOL, Natural, ADABAS, VSAM,

Batch)

CRP(Oracle/UNIXOnline, Batch)

CARS(Oracle/UNIXOnline/Batch)

Wage, Employer, Claimant

Data for Reporting

Data for Reporting

ICON(Mainframe, VSAM, Batch) Florida ACS

Vendor, all state Participate)

InterstateClaims

FM Legacy(Mainframe,

Natural, ADABAS, Online CICS,

Batch)

Employer,Wages

Wages

AppealsData Internet Claims

(Web Server)

Telephone Claims(IVRU)

UIDV(Unemployment Insurance Data Validation)

(Oracle/Unix/Batch)

SUTADumpingDetection

(Windows,SQL Server)

Laptop Audit Program(FoxPro)

Contributions Imaging

(Oracle,Windows, Vendor Product)

Data

Data

Table 2, Current System Environment, provides information regarding DETR’s current technical environment.

Table 2 - Current System Environment

Database Products VSAM, ADABAS, Flat Files, Oracle 9i, Oracle 10g, MS SQL Server

Computing Platform IBM Mainframe, SUN Solaris, MS Windows

Network TCP/IP, WAN, Cisco

Storage Mainframe DASD, SUN disk drives, Network Storage Device, RAID protected

Application infrastructure COBOL, CICIS, Easytrieve, Oracle Forms, 3GL NATURAL, Procedural Code, Oracle Reports, Other



Table 2 - Current System Environment

Typical Desktop

GATEWAY E-2610 D (S) Model, Intel Processor Core2DuoE4400(2.0GHz,800MHz,2MB cache) Non-HT, 2048MB PC5300 DDR2 667MHz SDRAM, 160GB 7200RPM Serial ATA II hard drive w/ 8MB cache, FPD1975W 19-inch Wide LCD Flat Panel Display

Typical Workstation Printer HP Laserjet 4250

1.3 Opportunity Description An upgraded UI system architecture and technology product will allow Nevada to better serve its UI constituents and respond to customer needs. Modernization will facilitate ongoing business change, avoid costly system maintenance, and improve UI services to Nevada’s employees and employers. Using a formal Request for Proposal (RFP) process, DETR will solicit, evaluate, and select a “turn-key” UI modernization solution that best satisfies its UI modernization requirements. DETR’s UI requirements are currently under development for subsequent RFP release. Proposed solutions will provide the necessary hardware, software, business flow adjustment, and consulting services to fully implement UI Contributions and Benefit processing for the State of Nevada as described in the future RFP. The UI modernization initiative, related RFP process and UI proposed solution will include the following steps:

• Finalize Nevada’s UI modernization requirements and solicit potential vendors through the RFP process;

• Evaluate and select an appropriate solution that best satisfies Nevada’s UI needs; • Install a new UI solution including supporting software and hardware; • Configure new components to satisfy Nevada’s UI business and technology

requirements; • Test and validate newly installed and configured UI business and technology

components; • Adjust business processes, revise user desk procedure, and install online helps to

coordinate with new UI frameworks; • Convert legacy UI data into the new solution; • Provide disaster recovery capability; • Provide staff orientation, training, and documentation; and, • Launch the final solution into production.

At the conclusion of the UI initiative, DETR will have implemented the core applications UI Contributions and UI Benefits; interfaced required supporting applications and agencies; converted historical UI data; and, trained end-users in new system operations. Additional UI modernization business and technology objectives include:



• Eliminate reliance on ADABAS and VSAM as the underlying database and file

management systems for processing Nevada’s unemployment insurance business transactions.

• Eliminate application and business errors caused by insufficient database field sizes for storing dollar amounts related to Nevada’s UI collection process.

• Re-architect Nevada’s UI automated applications to be online and real-time versus batch oriented.

• Reduce the UI benefit business transaction batch validation process from 24 or more hour turnaround to within seconds for complete verification; thus eliminating current “transaction thrashing” caused by a lengthy batch data validation process.

• For Nevada’s UI customer facing web applications, provide seamless integration to backend core systems eliminating current application and synchronization conflicts.

• Enhance and improve web based self-service applications to customers thus reducing reliance on lengthy Call Center processes and wait times.

• Provide improved and enhanced self-service features to customers for maintaining and viewing pertinent account information.

• Improve system security by eliminating system dependence on customer personal identification information (such as SSN) as the primary internal application key and through enhanced data encryption capability.

• Reduce dependence on paper case/account documents by more fully implementing electronic document management techniques.

• Introduce mainstream and emerging technologies to facilitate ubiquitous business processing including web based facilities, service oriented architecture, etc.,.

• Reduce by 90% manual processes and data stores for managing UI case and account information external to the core UI applications.

• Redirect legacy system upgrade and maintenance effort required to keep the current systems operating at status quo to support activities that provide greater value added services to customers.

• Provide an automated computing environment that will support Nevada’s current and future mission-critical UI business requirements into the foreseeable future.

2. UI Modernization Functionality

A primary purpose of this Request for Information is to obtain UI modernization planning information. This RFI section communicates the State’s general UI modernization expectations and envisioned project direction. Vendors are asked to provide costing and approach information based on the functionality described below. Where appropriate, vendors are encouraged to include additional functionality or UI solution components that may be of value or interest to the State. Such information should be accompanied with related cost, product and services description information. Since it is not feasible to convey a complete and comprehensive functional scope for Nevada’s UI modernization initiative within this RFI, the State anticipates receiving varied responses. The State acknowledges this constraint and encourages vendors to provide a response based on their



best understanding of the RFI content. For the different vendor products and options provided, the State is seeking an “order of magnitude” approximate cost along with descriptive information for review and knowledge acquisition purposes. 2.1 UI Contributions and Benefits For the UI modernization initiative, DETR is seeking a solution that encompasses the full life-cycle business processing for both UI Contributions and UI Benefits. As well, the initiative includes other functionality such as fraud detection, case and case load management, federal and state reporting, auditing, interfacing to external entities, and other. Attachment A, UI Modernization Functionality, provides descriptive information regarding UI and related functions currently performed. At a minimum, vendors should consider this functionality in the RFI response. UI Contributions, the process of creating employer accounts, determining UI rates, collecting and accounting UI taxes, and processing Wage records includes the following high-level functions:

• Employer Status; • Experience Rating; • Employer Reporting; • Cashiering/Accounting; • Account Maintenance; • Collections; • Field Audit/Investigations; • UI Wage Processing; • Department of Labor Reports; and, • Other UI Contributions support functions.

UI Benefits, the process of accepting unemployment claims, determining eligibility and paying benefits includes the following high-level functions:

• UI Claims, • Monetary Determinations; • Non-monetary Determinations; • Continued Claims; • Benefit Charging; • Appeals; • Overpayments Processing; • Financial Accounting; • Reporting; and, • Other UI Benefits support functions.

A description and additional decomposition for each of the above functions are found in Appendix A. Pertinent functional and product information collected from vendor RFI responses will be considered for UI modernization inclusion.



2.2 UI System Capabilities While a comprehensive list of UI system capabilities is not feasible within the RFI, the following information is provided as general systems direction:

• Online real time data entry edits and validation; • Integrated Business rules repository and management capability; • Real time updating of accounting and account balance information; • A robust form letter generation, management, storage, and recreation capability; • A robust Federal, State, and managerial reporting capability including generation of DOL

ETA reports; • Robust Case management capability; • Ability to collected and process multiple tax types; • Document imaging and routing capability; • Design flexibility that supports new or changing business requirements (e.g., adding new

state tax types or UI program types); • Automated address validation; • Improved fraud detection capability; • Ability to seamlessly access Web and other application services; • Ability to generate, manage and facilitate multiple interfaces to internal and external

systems and entities including other State and Federal agencies; • Features and functions to facilitate system ease of deployment and use; • Ability to provide “home sourcing” capability for UI staffing resources; • Online help and desk procedure support with context sensitive help features; • Robust application and database security including audit trails, roles based security,

Personal Identification Information security features; • A robust interface architecture that provides better means for implementing, changing,

and managing interfaced data; and, • ADA compliance and other State and Federal software standards compliance.

Appendix A, contains additional overview information regarding DETR’s UI business and process functionality. Vendors are encouraged to review and understand the material in Appendix A. Please note that information contained within Appendix A represents preliminary UI functionality, is subject to change and may or may not be part of the State’s UI modernization RFP scope. 2.3 UI Modernization Approach In addition to the above functional and system capability descriptions, DETR will be seeking a turnkey UI solution. The solution should include:

• Necessary hardware to support the proposed UI solution; • Necessary software and related products required to support the proposed UI solution; • Consulting services to fully install, configure, test, and implement the proposed solution; • Consulting services to develop, test and implement required UI interfaces; • Consulting services to help the State convert legacy data into the proposed new UI

environment;



• Consulting services to train and orient end-users and to update necessary desk procedures;

In their RFI responses vendors should consider the above and provide additional suggestions for successfully implementing potential solutions.

3. RFI Response Scope

As presented above, DETR requires automated computer systems to process wage, contribution, and benefit information related to Nevada’s statewide UI programs. DETR is seeking information from industry knowledgeable vendors that will enhance the State’s understanding of available UI solutions. Interested vendors are encouraged to provide insight to different approaches for deploying UI modernization and related products by responding to the Request for Information. RFI responses will provide general product and vendor experience overviews, high-level project approach information, and solution costing information for planning purposes. 3.1 Product Overviews In their RFI response, vendors are encouraged to describe and provide UI product information that would by and large satisfy DETR’s UI modernization initiative as outlined in the RFI. Additional referenced UI products that may be of value and interest to DETR are also encouraged. Product marketing material and/or additional vendor explanation is sufficient with associated cost planning information. 3.2 Vendor Experience In their RFI response, vendors are encouraged to provide information describing their particular UI technology and experience background and other distinguishing factors. Please keep the vendor experience response within three (3) written pages. 3.3 Project Approach In their RFI response, vendors are encouraged to provide information that describes their particular project approach for implementing UI solutions and overall project schedule. Please keep the project approach and schedule response within five (5) written pages. 3.4 Cost Planning Information A primary purpose of this RFI is to obtain initial costing information for UI modernization planning purposes. While the RFI will not result in an award, DETR believes it is in the vendor community’s best interest to assist in providing costing information. After reviewing RFI information, Vendors are requested to:

• Provide costing information for implementing a UI solution as described by the RFI; • Provide costing information for optional and/or alternative items that the vendor may

describe in their RFI response;



• Include in the costing estimates vendor services for installing equipment and software, configuring equipment and software to meet UI requirements, updating business desk procedure and providing application training, converting data into the production environment, and launching the final system; and,

• Include a percentage of total cost required for ongoing product maintenance and general support.

4. Vendor Responses

Vendor RFI responses must be submitted within the timelines specified in Table 3, RFI Events and Schedule, and in accordance with Section 4.1, Submittal Instructions, and Section 4.2, Submission Requirements, found below. 4.1 RFI Events and Schedule The table below illustrates events and schedule for this RFI. All times are stated as Pacific Time (PT).

Table 3 - RFI Events and Schedule RFI Event Date Time

RFI release date Tuesday, May 13, 2008 4:00 pm Deadline for submitting questions Tuesday, May 20, 2008 4:00 pm Answers to questions submitted available on or about Friday, May 23, 2008 4:00 pm

Deadline for submitting RFI responses Friday, May 30, 2008 4:00 pm Invitations for vendor presentations (Optional) Friday, June 20, 2008 4:00 pm

NOTE: These dates represent a tentative schedule of events. The State reserves the right to modify these dates and times at any time, with appropriate notice to prospective vendors. 4.2 Submittal Instructions Written vendor questions and/or comments regarding this RFI will be accepted by the State through e-mail. All communication regarding this RFI must include the following:

• RFI Name and Number: NV DETR UI Modernization RFI #DETR001-0805; • Vendor Name; • Vendor Contact Name; • Address; • Telephone Number; and • Email Address.

Communications regarding the RFI are to be directed to:

Kristen Burke, Nevada Department of Employment, Training and Rehabilitation Information Development and Processing Division 500 E. Third Street, Suite 214 Carson City, NV 89713



Telephone: 775-684-3945 Facsimile: 775-684-3424 Email: [email protected] Attention: UI Mod Team

The deadline for submitting questions is found in Table 3, RFI Events and Schedule. Vendor RFI questions and/or comments received will be grouped together into a single State response and addressed in writing through e-mail to the vendors submitting questions on the date specified in Table 3. 4.3 Submission Requirements The State requires that each Vendor’s EXHIBIT B – VENDOR RESPONSE FORM be submitted via electronic email no later than the submission date and time specified in Table 3, RFI Events and Schedule, to:

Kristen Burke, Nevada Department of Employment, Training and Rehabilitation Information Development and Processing Division 500 E. Third Street, Suite 214 Carson City, NV 89713 Telephone: 775-684-3945 Facsimile: 775-684-3424 Email: [email protected] Attention: UI Mod Team

The State prefers that other submitted product and vendor information such as descriptions, approaches and supporting data be submitted electronically to the above email address; otherwise, the vendor is requested to make three (3) copies of the additional material and deliver it to the street address provided above. Vendors must complete the Exhibit B, Vendor Response Form, and return it as the cover page of their response. DETR does not require a specified formal format for the remainder of the vendor’s response.

5. Optional Vendor Presentations

Optional vendor presentations, should they be requested by the State, will be conducted at the vendor’s own expense at-no-cost to the State of Nevada. Vendor presentations may be conducted following the review of vendor RFI responses. The State reserves the right to invite up to five (5) designated vendors to present an overview of their UI modernization products and capabilities. Vendor presentations may occur if:

• The State determines it necessary to meet with vendors;



• The State determines that potential vendors demonstrated a high-degree of compatibility with the State’s overall UI modernization initiative, overall functionality and requirements;

• The vendor provided within Exhibit B, Table EB.2, Cost Planning Information, line 4, an overall UI modernization cost planning number; and,

• The vendor indicates an interest to present “at-no-cost” to the State and has marked appropriately as such on their Exhibit B, Vendor Response Form.

Vendor presentations, should they occur at the State’s discretion, will be conducted at the vendor’s own expense and at no cost to the State of Nevada. Presentations may be conducted following the review of vendor responses. If invited by the State, a vendor’s presentation should provide an overview of the vendor’s UI products, experience, system and services capabilities, UI implementation approach, and anticipated approach schedule. Invitations, if extended, will be to those vendors that meet the criteria outlined above and within the RFI. 5.1 RFI Response Review Each vendor response will be reviewed by the State for the purpose of collecting additional UI modernization planning information and knowledge. Information provided by vendors will be used to further enhance the State’s UI modernization initiative and subsequent RFP.



EXHIBIT B – VENDOR RESPONSE FORM To be responsive to this RFI, vendors must complete Exhibit B in its entirety and return it as the cover page of their response. DETR does not have a specified format for vendor responses beyond the inclusion of this Exhibit.

Table EB.1 Vendor Information

Vendor Name

Vendor Address, City, Zip

Vendor Point of Contact (POC) Name

Vendor POC Title

Vendor POC e-mail Address

Vendor POC Phone Number

Vendor POC Fax Number

If invited, are you available to provide at-no-cost to the State a capabilities presentation to DETR (Yes/No)?

Table EB.2, Cost Planning Information, below will be used by the State to assist in fiscal planning for the UI Modernization initiative. To be eligible for an invitation to present, the vendor must provide an overall UI modernization cost planning figure in line 4 of Table EB.2, Cost Planning Information, below. Estimated cost information will be used for State fiscal and budget planning purposes only.

Table EB.2 Cost Planning Information

Functional Area Estimated Cost

1 UI Contributions Cost Planning Figure $

2 UI Benefits Cost Planning Figure $

3 Other UI Functionality Cost Planning Figure $

4 Overall UI Modernization Cost Planning Figure $ Vendor responses will be reviewed to determine whether or not the proposed vendor’s solution is compatible with the UI direction and functional requirements described in the RFI and Appendix A. Tables EB.3 and EB.4 below will guide overall UI compatibility during response reviews. Those vendors responding to the RFI with a comprehensive UI solution and marking “Yes” for all or a significant portion of the UI Contributions and Benefits functions in Tables EB.3 and EB.4 may be considered for a subsequent optional presentation to DETR.



EXHIBIT B – VENDOR RESPONSE FORM (Continued)

Table EB.3 Vendor UI Contributions Functions Compatibility

Functionality Included in the Vendor’s RFI Cost Planning

Information? UI Contributions Functions Yes No

Employer Status Function

Experience Rating Function

Employer Reporting Function

Cashiering / Accounting Function

Account Maintenance Function

Collections

Field Audit / Investigations

UI Wage System

Department of Labor Reports

Interfaces

Document Imaging and Routing

Appeals Management

Case Management

Table EA.4 Vendor UI Benefits Functions Compatibility

Functionality Included in the Vendor’s RFI Cost Planning

Information? UI Benefits Functions Yes No

UI Claims

Monetary

Continued Claims

Benefit Charging

Nonmonetary Determinations

Appeals

Overpayments

Adjustments

Interstate

Reporting



Interfaces

Financial Accounting

Fraud Detection



ATTACHMENT A – UI Modernization Functionality Attachment A, UI Modernization Functionality, provides brief descriptions of current UI processing within the State of Nevada. AA.1 UI Contributions UI Contributions section is responsible for operating and maintaining an effective UI tax system that provides revenue for the payment of unemployment benefits in Nevada. The department establishes and maintains employer accounts, obtains employer reports, collects employer taxes, audits employer records, and manages employer experience-rating records. Tables AA.1 to AA.10 below outline each of the ten (10) UI Contributions requirements.

Table AA.1 UI Contributions User Requirements – Employer Status

1. Employer Status To register with the State of Nevada as a new employer, business entities complete and submit State of Nevada Form 910-042, “Nevada Business Registration Form: (NBR). This form is filed with the Nevada Department of Employment, Training and Rehabilitation (DETR), Employment Security Division, Contributions Registration Unit. However, failing the receipt of an NBR, the UI Contributions Registration Unit will initiate the registration process based on information from any source which indicates a business entity may be a liable employer.

1.1 Establish New Employer Accounts 1.2 Identify Account Relationships 1.3 Maintain Employer Status Information 1.4 Perform Employer Account Inquiry 1.5 Maintain Employer Agent Information 1.6 Internet Register Employer



Table AA.2 UI Contributions User Requirements – Experience Rating

2. Experience Rating (Tax Rates) Nevada uses a “Reserve Ratio” experience rating system in the assignment of employer unemployment insurance rates. Employers starting a new business in Nevada must pay unemployment insurance tax at the current standard rate of 2.95% of wages paid to each employee up to the annual taxable wage limit. The employer retains this rate until there have been 12 consecutive calendar quarters (3 years) immediately preceding the computation date (June 30) throughout which he has been subject to this chapter and his account as an employer could have been charged with benefit payments. Once an employer becomes eligible for “experience rating,” he will receive one of 18 unemployment insurance tax rates, ranging from .25% to 5.4% of taxable wages, prescribed in Nevada Revised Statutes. (Note: Employers subject to unemployment insurance in Nevada are also subject to a state surtax of .05%for use in providing employment training to Nevada workers. The CEP surtax is applied to all contributory employers with the exception of those paying at the highest tax rate of 5.4 %.)

2.1 Verify Employer Quarterly Reports (SUTA) 2.2 Assign Annual Rating 2.3 Assign Rate to New Employer 2.4 Assign Experience Rating 2.5 Adjust Surtax and/or Tax Rate 2.6 Issue Rate Statements 2.7 Process Rate Protests 2.8 Adjust Employer UI Benefit Charges 2.9 Notify Employer 2.10 Retrieve and Archive Records 2.11 Process Exceptions



Table AA.3 UI Contributions User Requirements – Employer Reporting

3. Employer Reporting The report delinquency process in Nevada is comprised of an automated program for contributory employers and a manual process for reimbursing employers. Both programs are designed to monitor and track reporting status on a quarterly basis. The automated program for contributory employers is established at the time the account is registered on the unemployment insurance system. All prior quarter delinquencies are entered at the time of registration. The automated system is then updated with subsequent quarters when computer generated quarterly contribution reports are issued to active employers. As quarterly contribution reports are received and entered into the mainframe computer, the delinquent control database is updated and that quarter is removed from delinquent status. If no report has been received fourteen (14) working days after the delinquent date for the quarter, the delinquent control program will trigger a delinquent letter, “Notice of Past Due Report.” Ten (10) calendar days later, if no response is received from employer, the delinquent control program will trigger a second delinquent letter notice to the employer. Ten (10) calendar days after the second delinquent letters are produced, if no response is received from employers, the delinquent control program will generate a “Levy of Assessment” listing indicating all employers who are still delinquent for the quarter and providing an estimated gross payroll amount based on prior reporting. Exception listings are also produced for accounts with no payroll history, accounts with two or more levies already on file, and accounts that have been suspended or are in bankruptcy status.

3.1 Produce Quarterly Report form for Employer Mailings 3.2 Enter Quarterly Report Information 3.3 Contributions Automated Reporting System 3.4 Reconcile Contributions and Wage Systems 3.5 Interactive Tax and Wage Reporting

Table AA.4 UI Contributions User Requirements – Cashiering / Accounting

4. Cashiering/Accounting The Contributions Cashiering Unit is responsible for the prompt deposit of all monies to the Unemployment Insurance Clearing Account and accurate posting of all monies to employers accounts. The Cashiering Unit strives to accomplish a one-day deposit timeliness during peak “mass mail” reporting periods by utilizing a second shift, extended work hours, extended work hours, temporary reassignment of Section personnel, intermittent staff, and a split-processing work flow which focuses first on deposits and then on posting to employer accounts.

4.1 Filming and Data Entry of Remittance Data 4.2 Deposit Remittances 4.3 Process IVRU Transactions 4.4 Process Internet (ACH Debit) Transactions 4.5 Process Internet (ACH Credit) Transactions 4.6 Process Dishonored Remittances 4.7 Process Employer Overpayments 4.8 Process Quarterly Report Adjustments 4.9 Produce Accounting Reconciliation on Contributory Employer Accounts 4.10 Daily, Monthly, Quarterly, and Annual Accounting Reports 4.11 UI Trust Fund Accounting 4.12 Reimbursable Employer Accounting System



Table AA.5 UI Contributions User Requirements – Account Maintenance

5. Account Maintenance The employer account maintenance function includes adjustments to individual accounts and the transfer of reported information and monies between accounts. Also included in the maintenance function is a systematic purging of employer transactions and accounts.

5.1 Produce Individual Employer History 5.2 Process Employer Account Adjustments 5.3 Transfer Employer Accounts 5.4 Purge and Retrieve Employer Accounts 5.5 Online Employer Account Adjustments

Table AA.6 UI Contributions User Requirements – Collections

6. Collections Nevada uses a variety of collections methods to effect collection activity on employers delinquent in paying unemployment insurance taxes: small balance letters, installment payment agreements, liens, summary judgments. The day after documents are received from employers and entered into the computer system, report “Daily Employer Account Transaction Report” is generated. This report indicates employer account numbers, transactions processed the night before and current balances on employers’ accounts. Balances are reviewed by the Collections Unit Examiners and amounts over $1,000.00 are entered into a Microsoft Access data base. These accounts are reviewed after thirty (30) days for any payment. If the balance is the result of a levy of assessment, it must be verified by the Employer Accounts Service Unit before collection action is initiated. A weekly report, “SAO Control of Delinquent Quarters Not Covered by Levy or Judgment” is forwarded to the Collection Unit. This report is reviewed and employers with balances under $1,000 are sent small balance letters. If the balance is $10,000 or greater, the Examiner must immediately begin collection action.

6.1 Identify, Issue and Track Delinquent Quarterly Reports 6.2 Produce Delinquent Balance Reports 6.3 Identify Judicial Proceedings and Legal Actions 6.4 Process Contributory/Reimbursable Employer Billing Statements 6.5 Process Certification of Subcontractor’s Unemployment Insurance Payments 6.6 Identify and Process Uncollectible Employer Accounts 6.7 Certify Subcontractors

Table AA.7 UI Contributions User Requirements – Field Audit / Investigation

7. Field Audit / Investigation Nevada has two regional Field Audit Offices located in Las Vegas and Reno, with Carson City and Elko covered by staff under direction from the Reno office. The Las Vegas and Reno field offices have a Supervising Auditor I who report to the Supervising Auditor II in Carson City. Field auditors are responsible only for the performance of UI compliance audits as each field office also has a staff of Compliance/Audit investigators to perform obstructed (blocked) claims investigations and delinquent control and collections activities. Audits conducted to verify employer compliance with UI tax laws are initiated in two ways; either as a request audit on a specific employer account recommended for audit for particular purposes or a “targeted” or random audit selected by a computer profiling system.

7.1 Select Accounts (profiled and targeted) 7.2 Perform Field Audit



7.3 Process Appeals 7.4 Identify and Process Unregistered Employers 7.5 Investigate and Process Obstructed Claims 7.6 Notify Employer 7.7 Retrieve and Archive Records

Table AA.8 UI Contributions User Requirements – Contributions Support

8. Contributions Support The Contributions Support Function covers the following processes: Data Archiving/Retrieval, Microfilm/Image Document Retrieval, Contributions Appeal Tracking System, Obstructed Claim Tracking System, Application Access/Security, and Update Judgment Interest/Delinquent Dates/Taxable Wage Base. In addition, this Unit handles the IRS Certifications (Individual IRS Certifications, Quarterly IRS Cross Match and Annual Mass IRS Certification). The Service Bureau Request for Rate/Benefit Charge Information automated Tickler System and Contributions Employer Scratch Pad.

8.1 Data Archiving and Retrieval 8.2 Microfilm and Image Document Retrieval 8.3 Contributions Appeal Tracking System 8.4 Obstructed Claim Tracking System 8.5 Application Access and Security 8.6 Maintain Contributions Constants 8.7 Respond to Service Bureau Requests 8.8 Receive Automated Notifications from Tickler 8.9 Create Employer Scratchpad 8.10 IRS Certifications

Table AA.9 UI Contributions User Requirements – UI Wage System

9. UI Wage System UI Wage System Function performs manual entry of employer wage records, processes employer wage corrections/file adjustments and uploads Employer Wage Records (magnetic media, internet)

9.1 Enter and Verify Data in Wage SOR 9.2 Identify Affected Claims 9.3 Retrieve and Archive Records

Table AA.10 UI Contributions User Requirements – Department of Labor Reporting

10. Department of Labor Reporting This function produces a number of reports for the Department of Labor. At a high level, some of these reports include the Tax Performance System Data Collection/Sample Extraction, Unemployment Insurance Required Report ETA 581 and Unemployment Insurance Validation.

10.1 Tax Performance System Data Collection/Sample Extraction 10.2 ETA 581 10.3 UI Data Validation



Table AA.11 below contains a list of the various local, state and federal agencies and systems that interface with Nevada UI Contributions activities.

Table AA.11 UI Contributions Interfaces

UI Contributions Interfaces

Businesses liable for Nevada Unemployment Insurance Third party administrators and vendors Unemployment Insurance Benefits System Career Enhancement Program DETR Wage System DETR Financial Management Division DETR Research & Analysis Bureau DETR One Stop Operating System Nevada Welfare Division

New Hire Program Data Extraction Programs

Screen Inquiry Nevada Department of Taxation Daily send newly registered employers for modified business tax Quarterly send wage data Quarterly send foreign address listing via email Nevada Secretary of State Nevada Department of Industrial Relations Social Security Administration U.S. Department of Labor Internal Revenue Service - quarterly and annual Banks District/Bankruptcy Courts Contributions Oracle/Legacy System Bank of America (ACH processing for CRP) Bank of America (EPS processing - ETEF0020) Imaging system (KoVis) - daily for locator transactions, quarterly for benefit charge statements and annual for ineligible and eligible rate statements State Unemployment Tax Act (SUTA Dumping Detection System) Remote Check Deposit system (Bank, Global 360, and Quality Associates) Gateway Interface for WC (cars legacy file uploads - should be obsolete in 2008 once Contributions gets rid of old legacy formats) Unix sendmail interface Interactive Voice Response Unit (IVRU)



AA.2 UI Benefits UI Benefits determines benefit eligibility and processes benefit payments once a favorable determination is made. Claimants of Nevada’s UI program receive services through a statewide telephone claims system or via the Internet. The program allows claimants, regardless of their geographic location to establish UI benefit claims, file weekly certifications, access information about their claims, and respond to department directives necessary to maintain eligibility. The Benefits Section administers a system for providing a program that promptly and accurately pays unemployment benefits. The functional requirements contained in this section provide a brief overview of the required system components. Tables AA.12 to AA.25 below outline each of the fourteen (14) UI Benefits requirements.

Table AA.12 UI Benefits Functional Requirements – UI Claims

1. UI Claims The system was designed to stabilize purchasing power and employment levels during economic downturns. An eligible UI claim replaces lost income for individual workers who are unemployed through no fault of their own.

1.1 Establish a Nevada liable initial claim 1.2 Establish a UCFE (Federal Civilian Employees) 1.3 Establish a UCX (Ex-Military Employees) 1.4 Establish a Joint UCFE-UCX and or UI claim 1.5 Establish a CWC (Combined Wage Claim) multiple states 1.6 Establish an ABP (Alternate Base Period) 1.7 Establish a Base Period Advance claim. 1.8 Establish an Interstate Claim 1.9 Notification of Nevada employers 1.10 Notification of out of State employers 1.11 Notification of Federal and Military Employers 1.12 File an Additional Claim 1.13 File a reopen claim



Table AA.13 UI Benefits Functional Requirements – Monetary

2. Monetary Monetary eligibility utilizes a base period for measuring employment and wage history. In Nevada, this period is the first four of the last five completed quarters. Eligibility requires that the claimant has total base period wages that are one and one half times the highest quarter; or wages in three of four quarters, with at least $400 in one of the quarters.

2.1 Preliminary Monetary Determinations 2.2 Monetary Determination 2.3 Military monetary Determination 2.4 Federal Civilian monetary Determination 2.5 Combined Wage claim monetary Determination 2.6 Joint UCFE/UCX monetary Determination 2.7 Extended Benefit (EB) monetary Determination 2.8 Federal Extension monetary Determination 2.9 DUA monetary Determination 2.10 TRA monetary Determination 2.13 ATAA monetary Determination 2.14 Alternate Base Period monetary Determination 2.15 Base Period Advance monetary Determination

Table AA.14 UI Benefits Functional Requirements – Continued Claims

3. Continued Claims A continued claim, also known as a weekly claim or weekly certification, is a request by a claimant to be paid for the previous week. Payment is made if there are no current disqualifications or unresolved issues. Requesting payment requires the claimant answer six eligibility questions: FOR THE WEEK ENDING: 040508, 1. Was there any reason that you were NOT able/avail/looking? 2. Did you start school or enter training during the week? 3. Did you refuse any offer of work or job interview? 4. Did you receive vacation/holiday/severance/wages in lieu? Enter pay received during each week: 5. Did you work during the week claimed? Enter gross amount earned during each week: 6. If no longer working, reason for separation: ("L"= Lack of work, "Q"= Quit, "D"= Discharged)

3.1 Weekly certification 3.2 DUA payments 3.3 TRA payments 3.4 EB payments 3.5 Federal Extended payments 3.6 ATAA payments 3.7 Change, add or remove earnings to weekly claims 3.8 Cancel or replace payment



Table AA.15 UI Benefits Functional Requirements – Benefit Charging

4. Benefit Charging These are charges to the experience rating of the employer whenever benefits are paid.

4.1 Charges to Employer 4.1.1 75% Base period 4.1.2 non-75% base period 4.2 Weekly Charges 4.3 Quarterly Charges 4.3.1 Contributory 4.3.2 Reimbursable 4.3.3 CWC 4.3.4 Federal Charges 4.3.5 UCX Charges 4.4 Transfer Monetary 4.5 Transfer Charges

Table AA.16 UI Benefits Functional Requirements – Nonmonetary Determinations

5. Nonmonetary Determinations Nevada State Law incorporates many nonmonetary requirements that affect eligibility. There are two categories of nonmonetary issues: 1) Separation issues (Voluntary Quit, Discharge or a Labor Dispute) and 2) Non-separation issues (work search, ability and availability, attachment to the job market and refusal of work). 5.1 Individual Non-monetary determinations 5.1.1 Separation determinations 5.1.2 Non-Separation determinations 5.1.3 Crimes in Connection with the Work 5.1.4 Between Terms (School) 5.1.5 Alien Wages 5.1.6 Athletic wages 5.2 Multi claimant non-monetary determinations (LD) 5.3 Redeterminations 5.4 Rescinded determinations 5.5 Amended determinations

Table AA.17 UI Benefits Functional Requirements – Appeals

6. Appeals Every claimant or employer that disagrees with an adjudicated eligibility issues must be given the right to appeal the decision with a referee. Further appeal rights include a hearing with the Board of Review and Superior Court.

6.1 File appeal 6.2 File Board of Review 6.3 File for Judicial Review



Table AA.18 UI Benefits Functional Requirements – Overpayments

7. Overpayments When a claimant is paid benefits at a time when the claimant does not meet eligibility requirements, an overpayment is created and the benefits must be repaid to the State of Nevada. Overpayments may or may not be the claimant’s fault.

7.1 Establish Overpayment 7.1.1 Ability to determine type of claim 7.1.2 Identify weeks attached to overpayments 7.1.3 Ability to establish for other states 7.1.4 Ability to manually create/cancel or adjust an overpayment 7.1.5 Identify Fraud and non-fraud 7.2 Offset Overpayment 7.2.1 Flexible % 7.2.2 Bankruptcy 7.3 Collections 7.3.1 Billings 7.3.2 Cash payments 7.3.3 Installment payments 7.4 Charging 7.4.1 Contributory employers 7.4.2 Reimbursable employers 7.5 Interest 7.6 Judgments 7.7 Garnishments 7.8 Fines 7.9 Penalties & Fees 7.10 Prosecutions 7.11 Back pay awards 7. 12 Offset credit balance (reissue payment)

Table AA.19 UI Benefits Functional Requirements – Adjustments

8. Adjustments An adjustment is a change to the earnings reported in a benefit week, a change in wage used to establish eligibility, or cancellation of a claim.

8.2. Monetary redetermination 8.2.1 Change, add or remove wages from reported earning (wage file) 8.2.2 Withdraw/cancel claim 8.2.3 Discontinue claim 8.3 Change SSN



Table AA.20 UI Benefits Functional Requirements – Interstate

9. Interstate (ICON) Interstate claims are filed when the claimant files from one state and has wages in another state including Canada, Puerto Rico and the Virgin Islands.

9.1 Agent file 9.1.1 Ability to file overlapping claims 9.2 Ability to file new/additional/reopen claim (IB1) 9.3 Transfer and receive wages between states (IB4/IB5) 9.3.1 IB6 Billing 9.4 Communicate with states (IB13) 9.5 Handbook 9.6 Interstate Liable Claims 9.7 Interstate Agent Claims

Table AA.21 UI Benefits Functional Requirements – Special Programs

10. Special Programs Special programs are unemployment benefit programs that extend benefits due to economic downturns, trade imbalance or disasters. The programs are special because the current system of record does not handle these claims without adjunct processes.

10.1 Establish a state extended benefit claim 10.2 Establish a federal extended benefit claim 10.3 Establish a DUA (Disaster Unemployment Assistance) 10.4 Establish a TRA (Trade Readjustment Claim) 10.5 Establish an ATAA (Alternative Trade Adjustment Assistance)



Table AA.22 UI Benefits Functional Requirements – Reporting

11. Reporting

11.1 Employment and Training Administration (ETA) Reports 11.2 Call Center Management Software

Table AA.23 UI Benefits Functional Requirements – Interfaces

12. Interfaces

12.1 Interactive Voice Response 12.2 Internet 12.3 Nevada JobConnect One Stop Operation System (OSOS) 12.4 ICON 12.4.1 Interstate Applications 12.4.2 UCFE 12.4.3 UCX 12.4.4 HCTC 12.5 Contributions Wage File 12.6 ONET (Occupational Information Network) 12.7 ONAMS (Appeals Subsystems) 12.8 Department of Welfare 12.9 R & A Data Warehouse 12.10 National New Hire Directory 12.11 DOL (SUN System) 12.12 USCIS (Alien Verification) 12.13 DETR Research & Analysis 12.14 DETR Financial Management 12.15 Department of Motor Vehicles 12.16 IRS



Table AA.24 UI Benefits Functional Requirements – UI Support Functions

13. UI Support Functions These are the functions of the office of Unemployment Insurance Support Services (UISS). UISS is responsible for 1) the ongoing research, maintenance and development of policy and procedure manuals, 2) performance improvement activities, and 3) the coordination of federal, military, interstate and other special programs.

13.1 UI Eligibility Verification System (requests for information from other agencies) 13.2 Prepare court cases 13.3 Prepare subpoenas 13.4 Respond to DETRUI emails 13.5 BTQ Quarterly Review 13.6 SQSP – Annual Report/Quarterly updates 13.7 Performance Indicators 13.8 1099g 13.9 Policy and Procedure Manuals 13.10 Policy Research

Table AA.25 UI Benefits Functional Requirements – Financial Accounting

14. Financial Accounting

14.1 Audit tracking of claim

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