RFP for ERP Software and ServicesRFP for ERP Software and ServicesPre-Proposal ConferencePre-Proposal Conference

November 1, 2005November 1, 2005

Nothing in this presentation (visual, verbal or written) shall be construed to alter in any way Nothing in this presentation (visual, verbal or written) shall be construed to alter in any way the contents of RFP 317.03-134. In the event of conflicts, the RFP shall prevail.the contents of RFP 317.03-134. In the event of conflicts, the RFP shall prevail.

November 1, 2005 2

AgendaAgenda Welcome and Introductions Executive Sponsor Opening Remarks What is Being Procured? Project Timeline and Scope Vendor Qualifications Comments from Go-DBE RFP Structure Proposal Response & Evaluation Vendor Demonstrations Questions

November 1, 2005 3

Pre-Proposal ConferencePre-Proposal Conference

Please sign inPlease sign in Answers given today are not binding; must Answers given today are not binding; must

be followed up in writingbe followed up in writing Check for RFP amendments: Check for RFP amendments:

http://state.tn.us/finance/oir/pcm/rfps.htmlhttp://state.tn.us/finance/oir/pcm/rfps.html Reminder: Vendor must be registered with Reminder: Vendor must be registered with

State prior to contract approvalState prior to contract approval

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What is State Procuring?What is State Procuring?

Packaged ERP softwarePackaged ERP software Possible third-party software for specialized needsPossible third-party software for specialized needs Comprehensive implementation servicesComprehensive implementation services

Project management supportProject management support Business process redesign and implementationBusiness process redesign and implementation Software configuration, testing, deploymentSoftware configuration, testing, deployment Custom development as neededCustom development as needed Training services and cultural change management supportTraining services and cultural change management support

Ongoing annual software licensure feeOngoing annual software licensure fee

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Key Participants in ProjectKey Participants in Project State of TennesseeState of Tennessee Integrator (aka Prime Vendor)Integrator (aka Prime Vendor)

Accountable for all products, services and deliverablesAccountable for all products, services and deliverables May only appear in one proposal (no joint ventures)May only appear in one proposal (no joint ventures)

Primary software vendorPrimary software vendor Subcontractor to IntegratorSubcontractor to Integrator Providing majority of ERP softwareProviding majority of ERP software

Optionally, other subcontractors to Integrator Optionally, other subcontractors to Integrator (providing software and/or services)(providing software and/or services)

Salvaggio, Teal & Associates – State’s Salvaggio, Teal & Associates – State’s implementation assistance partnerimplementation assistance partner

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TN Planned Application Scope for ERPTN Planned Application Scope for ERP Financial ManagementFinancial Management

Accounts PayableAccounts Payable Accounts Receivable Accounts Receivable Cash Management/Bank Cash Management/Bank

ReconciliationReconciliation General Ledger and Budgetary General Ledger and Budgetary

ControlControl Cost AllocationCost Allocation Project ManagementProject Management Grant AccountingGrant Accounting Travel *Travel *

Budget Administration *Budget Administration * Procurement/LogisticsProcurement/Logistics

PurchasingPurchasing Asset ManagementAsset Management Fleet Management *Fleet Management * Inventory Inventory Plant MaintenancePlant Maintenance

HR/PayrollHR/Payroll Applicant Services *Applicant Services * Benefits Administration Benefits Administration Classification and Classification and

CompensationCompensation Insurance AdministrationInsurance Administration Payroll AdministrationPayroll Administration Personnel AdministrationPersonnel Administration Time Reporting and Leave Time Reporting and Leave

Accounting Accounting Training and Employee Training and Employee

DevelopmentDevelopment Employee Self-ServiceEmployee Self-Service

Data Warehouse and Business Data Warehouse and Business Data Analysis *Data Analysis *

* At State’s option, could be removed

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RFP Schedule of EventsRFP Schedule of EventsEVENT TIME DATE

1. Pre-Proposal Conference November 1, 2005 2. Notice of Intent to Propose Deadline November 7, 2005 3. Written Comments Deadline November 14, 2005 4. State Responds to Written Comments December 2, 2005 5. Proposal Deadline 2:00 pm December 16, 2005 6. State Completes Technical Proposal

Evaluations January 20, 2006

7. Software Demonstrations January 23 – February 17, 2006 8. State Opens Cost Proposals and

Calculates Scores 3:00 pm February 22, 2006

9. State Issues Evaluation Notice and Opens RFP Files for Public Inspection

9:00 am February 28, 2006

10. Contract Signing March 10, 2006 11. Contract Signature Deadline March 17, 2006 12. Contract Start Date April 3, 2006

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Project TimelineProject TimelineID Task Name

2006 2007 2008 2009

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Human Resources/Payroll

Plan

Analysis/Design

Construction and Test

Parallel Test and Train

Go Live

Post Go-Live Support

Finance/Procurement/Logistics

Plan

Analysis/Design

Construction and Test

End-To-End Test and Train

Go Live

System Deployment

Post Go-Live Support

November 1, 2005 9

Key Points for SoftwareKey Points for Software

Fully integrated solution that will interoperate Fully integrated solution that will interoperate with State standards (mandatory)with State standards (mandatory) Server hardware, OSServer hardware, OS Software: GroupWise, FileNet, Internet Explorer, Software: GroupWise, FileNet, Internet Explorer,

MS Office, etc. (all listed in RFP Att. 6.11)MS Office, etc. (all listed in RFP Att. 6.11) Modules to be potentially eliminated from Modules to be potentially eliminated from

scopescope Applicant Services, Travel, Fleet Management, Applicant Services, Travel, Fleet Management,

Budget Administration, Data WarehouseBudget Administration, Data Warehouse

November 1, 2005 10

Key Points for SoftwareKey Points for Software

Do Do notnot include cost for State standard include cost for State standard software in responsesoftware in response

Must Must submit any non-State standard products submit any non-State standard products by Written Comments deadline for approval by Written Comments deadline for approval or disapproval (and any approved non-or disapproval (and any approved non-standard products must be included in cost)standard products must be included in cost)

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Key Points for SoftwareKey Points for Software

Department of TransportationDepartment of Transportation Has own version of current financial system Has own version of current financial system

(T-STARS)(T-STARS) Will integrate into one system with EdisonWill integrate into one system with Edison

Insurance administrationInsurance administration Handles insurance benefits for State employees, Handles insurance benefits for State employees,

local education, higher education and local local education, higher education and local governmentgovernment

Approx. 280,000 participantsApprox. 280,000 participants

November 1, 2005 12

Key Points for ServicesKey Points for Services

State is planning to commit significant State staff State is planning to commit significant State staff to projectto project

Integrator must include at least 3 FTE of Integrator must include at least 3 FTE of consultant time from ERP software vendorconsultant time from ERP software vendor

Custom Modifications – include effort and cost for Custom Modifications – include effort and cost for requirements answered as an “M,” and “Q” > 8 hrsrequirements answered as an “M,” and “Q” > 8 hrs

Reports: State specifying 80 total reports in scope Reports: State specifying 80 total reports in scope plus CAFR reports from Integratorplus CAFR reports from Integrator

Workflows: State specifying 20 complex Workflows: State specifying 20 complex workflows and 20 average workflows in scopeworkflows and 20 average workflows in scope

November 1, 2005 13

Key Points for ServicesKey Points for Services 11 vendor roles designated as “key 11 vendor roles designated as “key

personnel” (special contract terms apply)personnel” (special contract terms apply) Project Manager;Project Manager; Deputy Project Manager;Deputy Project Manager; Payroll/HR Configuration Manager;Payroll/HR Configuration Manager; Financial/Procurement Configuration Manager;Financial/Procurement Configuration Manager; Technical Manager; Technical Manager; Two Configuration Leads under the Payroll/HR Manager;Two Configuration Leads under the Payroll/HR Manager; Two Configuration Leads under the Financial/ Procurement Two Configuration Leads under the Financial/ Procurement

Manager;Manager; One Lead under the Technical Manager; and,One Lead under the Technical Manager; and, One Manager in the Enterprise Readiness area.One Manager in the Enterprise Readiness area.

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Key Points for ServicesKey Points for Services

TrainingTraining Include costs for recommended State project Include costs for recommended State project

team training, including technical trainingteam training, including technical training Integrator provides at least 35% of end user Integrator provides at least 35% of end user

training development and delivery staff, training development and delivery staff, including leadership of this areaincluding leadership of this area

Includes delivery of 4 CBT classes Includes delivery of 4 CBT classes (development or acquisition)(development or acquisition)

November 1, 2005 15

Key Points for ServicesKey Points for Services

Post-production support – up to 6 months Post-production support – up to 6 months following HR/Payroll, 3 months following following HR/Payroll, 3 months following final wave of Financialsfinal wave of Financials

Includes up to 3 months of services at first Includes up to 3 months of services at first year-end for HR/Payroll and for Financialsyear-end for HR/Payroll and for Financials

November 1, 2005 16

Vendor QualificationsVendor Qualifications

Integrator was primary service provider for Integrator was primary service provider for completed project of integrated ERP system completed project of integrated ERP system (HR/Payroll, Financials, Procurement) for (HR/Payroll, Financials, Procurement) for public sector client with:public sector client with: $12 billion or more in expenditures, and$12 billion or more in expenditures, and At least 25,000 employeesAt least 25,000 employees

Primary ERP software is in production at Primary ERP software is in production at public sector clientpublic sector client

Mandatory – proposal disqualified if failedMandatory – proposal disqualified if failed

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Key RFP PointsKey RFP Points

November 1, 2005 18

ContractsContracts

State will sign contract with Integrator (RFP State will sign contract with Integrator (RFP Attachment 6.1) for products, services and Attachment 6.1) for products, services and deliverables proposeddeliverables proposed

At same time, State will sign Software Licensure At same time, State will sign Software Licensure Agreement with software vendor(s) (Contract Att A)Agreement with software vendor(s) (Contract Att A)

Integrator contract will terminate upon completion Integrator contract will terminate upon completion of contracted services. Until then, all contract of contracted services. Until then, all contract payments from State are made to Integrator.payments from State are made to Integrator.

After Integrator contract terminated, any ongoing After Integrator contract terminated, any ongoing fees to Software Vendor will be paid directly.fees to Software Vendor will be paid directly.

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ContractsContracts Please submit questions as soon as possiblePlease submit questions as soon as possible Must submit any questions related to contract Must submit any questions related to contract

terms and conditions before Written Comments terms and conditions before Written Comments deadline.deadline.

The Pro Forma Contract in RFP Att 6.1 and the The Pro Forma Contract in RFP Att 6.1 and the Software License Contract in Contract Att A are Software License Contract in Contract Att A are the agreements that the State intends to sign.the agreements that the State intends to sign.

State does not intend to negotiate; if State makes State does not intend to negotiate; if State makes any changes, they must be in State’s best interest any changes, they must be in State’s best interest (see RFP Sec 1.2, Sec 5.3.4 and RFP Att 6.2)(see RFP Sec 1.2, Sec 5.3.4 and RFP Att 6.2)

Get your legal counsel involved Get your legal counsel involved NOWNOW

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Performance ProtectionPerformance Protection

Deliverables-based payments (retainage)Deliverables-based payments (retainage) Liquidated damages for critical business Liquidated damages for critical business

events with financial repercussionsevents with financial repercussions

But…But… Limited liability (2X contract value)Limited liability (2X contract value) No performance bondNo performance bond

November 1, 2005 21

Other Mandatory CriteriaOther Mandatory Criteria

No exceptions to Attachment 6.2, Statement No exceptions to Attachment 6.2, Statement of Certifications and Assurancesof Certifications and Assurances

Financial stability documentationFinancial stability documentation Compliance with State’s Technical and Compliance with State’s Technical and

Architectural standardsArchitectural standards See RFP Attachment 6.3, Section ASee RFP Attachment 6.3, Section A

November 1, 2005 22

Structure of ProposalStructure of Proposal

Technical ProposalTechnical Proposal RFP Attachment 6.3, Sections A, B, C and D defines RFP Attachment 6.3, Sections A, B, C and D defines

the required responses and their nature – e.g.:the required responses and their nature – e.g.: Att 6.3, Sec C.a.1 requires a narrative responseAtt 6.3, Sec C.a.1 requires a narrative response Att 6.3, Sec C.a.3.3 requires a workplan in Project formatAtt 6.3, Sec C.a.3.3 requires a workplan in Project format Att 6.3, Sec D requires completion of an Excel spreadsheetAtt 6.3, Sec D requires completion of an Excel spreadsheet

Note that some narrative sections have a page limitNote that some narrative sections have a page limit Technical Proposal Supplement (Excel file), Att. 6.4Technical Proposal Supplement (Excel file), Att. 6.4 ERP Functional Requirements (Excel files), Att 6.8ERP Functional Requirements (Excel files), Att 6.8 ERP General System Requirements (Excel file), Att 6.9ERP General System Requirements (Excel file), Att 6.9 Important: No cost data in Technical ProposalImportant: No cost data in Technical Proposal

November 1, 2005 23

Structure of ProposalStructure of Proposal

Cost ProposalCost Proposal RFP Attachment 6.5 (do not change format!)RFP Attachment 6.5 (do not change format!) Do not leave cells blankDo not leave cells blank Cost Proposal Supplement (Excel file), Att 6.6 Cost Proposal Supplement (Excel file), Att 6.6

– must complete all tabbed worksheets– must complete all tabbed worksheets

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Costing and PaymentCosting and Payment

Fixed price quoteFixed price quote Total software/services for HR/Payroll (Phase I)Total software/services for HR/Payroll (Phase I) Total software/services for Financials/ Procurement/ Total software/services for Financials/ Procurement/

Logistics (Phase II)Logistics (Phase II) Includes travel/living expenses - “fully loaded”Includes travel/living expenses - “fully loaded”

Hourly rates for Change OrdersHourly rates for Change Orders Payment based on approved deliverablesPayment based on approved deliverables Payment methodology and schedule shown in Payment methodology and schedule shown in

Contract Section C.3Contract Section C.3

November 1, 2005 25

Key Points for ProposalKey Points for Proposal

ReferencesReferences Integrator solely responsibleIntegrator solely responsible Forms (Att 6.16, 6.17) must be submitted with proposalForms (Att 6.16, 6.17) must be submitted with proposal At least 3 for Integrator, 3 for ERP softwareAt least 3 for Integrator, 3 for ERP software Start ASAP! Late/misplaced forms will not be evaluatedStart ASAP! Late/misplaced forms will not be evaluated

Functional and General RequirementsFunctional and General Requirements Must use Excel files for response – written and electronic Must use Excel files for response – written and electronic

copies both requiredcopies both required Only 4 responses for each requirement – Y, N, M or QOnly 4 responses for each requirement – Y, N, M or Q Answer accurately – most functionality will be Answer accurately – most functionality will be

demonstrated during Vendor Demonstrationsdemonstrated during Vendor Demonstrations

November 1, 2005 26

Key Points for ProposalKey Points for Proposal

Proposals must arrive on time (RFP Sec 1.7)Proposals must arrive on time (RFP Sec 1.7) Please include email addresses (Sec. 1.6)Please include email addresses (Sec. 1.6) Transmittal letter must be signed by CEO, or Transmittal letter must be signed by CEO, or

must include evidence of signatory’s ability must include evidence of signatory’s ability to bind companyto bind company

Use RFP Section 6.3, Secs. A, B, C and D as Use RFP Section 6.3, Secs. A, B, C and D as overall Table of Contents for proposaloverall Table of Contents for proposal

November 1, 2005 27

Packaging ProposalPackaging Proposal

Please check packaging very carefully (RFP Sec Please check packaging very carefully (RFP Sec 3.1)3.1)

Technical and Cost Proposal packaged separatelyTechnical and Cost Proposal packaged separately Label outside of package correctlyLabel outside of package correctly Technical ProposalTechnical Proposal

1 original and 15 copies in binders1 original and 15 copies in binders Control numbers on outside of bindersControl numbers on outside of binders Each copy includes a CD of entire Technical ProposalEach copy includes a CD of entire Technical Proposal 30 additional CDs of entire Technical Proposal30 additional CDs of entire Technical Proposal

Cost ProposalCost Proposal 1 copy with 1 CD of Cost Proposal1 copy with 1 CD of Cost Proposal

November 1, 2005 28

Evaluation Criteria Max Points

Vendor Qualifications /Experience 100

Technical Proposal• Technical Approach - Project

Approach and Technical Architecture: 150 pts

• System Requirements: 250 pts

400

Software Demonstration 200

Cost Proposal 300

Proposal EvaluationProposal Evaluation

November 1, 2005 29

RFP EvaluationRFP Evaluation

Evaluation Team: Core Edison Team plus Evaluation Team: Core Edison Team plus representatives from Accounts, Benefits, Budget, representatives from Accounts, Benefits, Budget, Procurement, Personnel, Treasury and agency Procurement, Personnel, Treasury and agency representationrepresentation

Core Edison Team evaluates Vendor Core Edison Team evaluates Vendor Qualifications and Experience, Project ApproachQualifications and Experience, Project Approach

Sub-teams evaluate Technical Architecture and Sub-teams evaluate Technical Architecture and appropriate sub-sections of System Requirements appropriate sub-sections of System Requirements based on subject matter expertise (teams of at least based on subject matter expertise (teams of at least three State evaluators)three State evaluators)

November 1, 2005 30

Vendor DemonstrationsVendor Demonstrations

Each will last a weekEach will last a week Dates will be assigned soon after receipt of Dates will be assigned soon after receipt of

proposalsproposals Script will be distributed two weeks prior to Script will be distributed two weeks prior to

start of demonstrationstart of demonstration More instructions with demonstration scriptMore instructions with demonstration script

November 1, 2005 31

Final WordsFinal Words Only official RFP contact: Travis JohnsonOnly official RFP contact: Travis Johnson Intent to Propose by Nov. 7Intent to Propose by Nov. 7 Submit questions NOW – a flood of questions Submit questions NOW – a flood of questions

at the deadline could delay the procurementat the deadline could delay the procurement Resolve contract questions NOWResolve contract questions NOW Get started on reference forms NOWGet started on reference forms NOW Submit best possible offering – no BAFO Submit best possible offering – no BAFO

processprocess Submit most comprehensive proposal possible Submit most comprehensive proposal possible

November 1, 2005 32

Questions?Questions?