£4 lIDTechndo’, Management&Budget

Report to the Senate and HouseStanding Committees on

Appropriations andGeneral Government

Required by Section 809 of Public Act 268 of 2016

Prepared for theSenate and House Standing Committees on

Appropriations and General Government

Department of Technology, Management and BudgetState Administrative Board

1/1/2017 — 3/31/2017

r...fli-nzo n. Ii2LI4I

Ad B?RQver2)

STATE ADMINISTRATIST BOARDCONTRACT CHANGE RECOMMENDATiON

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND State

PROCUREMENT Mdnunlstratlve Board

AGENCY SUBMITTAL 0 Statutory Authority per MCL______________ (state MCL Section #)o Stanthrd Delegation via Ad Guide

__________

(state Ad Guide #)O Special Delegation letter (submit with bid tab)0 Purchasing Alliance Approval Form (submit with bid Lab)

DTMB PROCURflIENT SUBMITTAL

CONTRACr DESCRIPTION 071 B5500029 Statedc contract for Telecommunication Services for WAN, ISP,and CPE products and scnces.

CHANGE NOTICE NUMBER: 3

coNrJt4aoa: MICHIGAN BUSINESS: LNCREASE:Century Link Monroe, LA 0 $12,000,000.00

9 Check if request is to exercise Contract oplion(s),Requesied time period and length:

O Check if request is to extend Contract (no option in base).Time period olextension and length:

o Check if extension is beyond Contract option year(s).Time period of extension and length:

Check if this is an Extended Purchasing Contract

ORiGINAL CONTRACT: # ii! Base l’can: S Year(s) 0 Month(s) Beginning Value SI ,330,533.54

Stud Date and End Date: 11/1/2013 - 10/31/2019

CURRENT CONTRACT VALUE: $1,330,533.54

NEV TOTAL CONTRACT VALUE; S13.330.533.34

PRE1OUS OPTION ITARSIEflENSIONS: APPROVEDJanuary 10,2017

Michigan StateAdministrative Board

PREVIOUS CHANGES NOT LISTED ABOVE IN THE OPTIONS(EXTENSIONS TAILE:OPTION - TYPE OF CHANCE: SAB APPROVAL - VALUE:

DATE:CN 4 I Change in Product, Terms. Pricing, or Scope N/A 1 50.00CN #2 Change in Product Tenus, Pricing, or Scope N/A $000

Total 50.00

• FUNDING SOURCE: JIERCENTAGE: Indicate RESTRICTED FUND name::or COMMENTS:

rccoIviIut lunds 00.00% see atlacliinent

SHOW THE UREAKDOVN OFTIUS INCREASE BY FISCAL YEAR(S):Fl’: DOLLAR AMOUNT:2017 $4,000,000.00

;..20J8 .:;.;;.:t $4,000,000.002019 $4,000,000.00

APPROVEDDescription of ProduetlSenice Modification Requested and Process Explanation: January 10, 2017Adding funding to support acquisition of \VAN, ISP. and CPE products and serveics for remaining three base contractyears. Michigan State

Administrative BoardPurpose/Business Case of Amendment or Exiension, and Expected Outcomes:To ensure adCQUaLC funding is available to support CenturyLink products and sencies as quircd bytc(ecommuncations and all other nuencics for WAN, ISP, and CPL product types. Communication from agency 10agency and From agency to the citizens fbr the StaLe of Michigan ould not be possible.

Wsk Assessment:

if funding is not provided vim] Teiccommunication services would nol be available For internal and externalcommunications thus impacting State agencies ability to usc these senices iLhin their specific roles supportingaGency Functions and the citizens olthe State oIMichiuan.

PRICE CLAUSE FROM CONTRACT: NACS-138 # PROVIDED FOR SERVICES NonjurisdictionalCOST REDuaION/SAVINGs CONSIDERATIONS NA

FOR IT CONTRACTS Check box if adding more than $500,000.00 for software development.ONLY - cDmputcr hardware acquisition or quality assurance.

IT Division Buyer

AGENCY APPROVALS

DTMB- P1oturement

William PembleIT Division Dirrcwr

Sharon Wakna-ManardSourcing Director

DTMB- Procurement

APPROVEDJanuary 10, 2017

Michigan 5tateAdministrative Board

Anthpdzcd Aencv ReprernIptivc Irrinled)

L.uthñzgcLAgncy Representative SiEpaIuj_

PURCHASING

Return Informtion

Coniact NameP Mail:hurc No.:.NIaU

APPROVALS

Mike Dreen

DTJ\TB- Procurement

FY17 IT Fund Sources - Ad Board APPROVEDApprcpraled Fund Sources January 10, 2017

Agency D23 Fund SturceAgritulture IDG frcrn LARA. Lqcr cJa ly Ies”’g lees Michigan State

cIwa cse&vr ‘ Administrative BoardAttj Lr I :ert3 R Di

Fesv3er ctd-cnGncLe son lnt.n; lrnDairy an3 facd safety funiHnrea.l l!qL Cr feesCF/SF

Micinoy Qnneral

Clvii Rights

EWC r:a te wt SCLT ll :n Sat1

Civil Service Satc Re,trtcd Funds 1%

Stse Spensnred Soup flsu,nceOF’S P

Communfly Health Fete,;! Rca.u!Pnv2 Re e—uc

Sat,SFGP

Corrections Ccnecoit ndusWa ,ciiclving lundParcieIprttaan tvrsiflt fees seL5:deGFICP

Education FedenI reenucs

Fee,J r. rec fusCerIiftatn feesOF,sp

Environmenlal Quality iG. MusPlOG M’chi3r Transpoflaocn Furdizi bosa2flc se-vcfl

Fedoni ts

Ar c,rsscn lsCrnpgrun fund

Cleanup and rdeve;opmcnt fundELectmrii: waste rocycLng unEr,irerm,cntni polrulrcn prvcntjn fundEnv’rcqrrenml prclect:rn’ lundEn-. rera r,tse fc.dFees znd CCcDtcfl

FrraI estrxtsSreBI Ifles pratcI;on fundG’unswaL, d;schare penn;l teasLand anc water perTn;t feesMed;ci wse emc,erv respnse fundI.leta:c rT1nin !ur:edance fte rv,nue

vt I rtja:ry ‘to

Fjnnferrcus met&l;c mineral sureanceNtOS fees

Oil ri gas &gutatry Is%Orphan well lurid

Putc swrnmng pcci hind

221&2O17 Amerdn,ert, c’ec 520000 zn itt4

FY17 IT Fund Sources - Ad Board APPROVEDApprophated Ftn S:urcs January 102017

A,encv 023 Fund Sc;rcesMichigan State

cwat i”pp!t lees Administrative BoardRaEned retrs[urn Ln

Sand atroctDn tee rever

Strap ‘0 rtgualory

Seplage waste progrart fund

5v’agt slud;e Irn app::a:cn fee

Smol tus:F1es pocutcn peef::sfl my

Sal ern:n & sodmcnt&pDn n,:I

S!!d wafe rnana;ern.en fund Elfl

V!asevtae, tnD (ran lets

!ae ar.a fS45 (003

IEer r,rL, n!,I fra

Lie FCPVifl ‘es

cqcp

Human SeMces ‘pG mm dopailment I ethstnt:on

SeaF secury act TAlEThtoE ttMet fedcr& w,,enues

GF(GP

Caning Cantrol Board State Servicos Fee FundA Eou’ne industry dcv,Ic,7lent fmJ

DIPS 6ankreo.f.na,ca fees

Un.Dn CS

rtened re5r-rent sCtfC t,ln, le:s

l,t3rca rnt f,dlfftv Mtur; c1)co’ac1 lets

lnluranco lcensng & rcua:Dry lees

MBLSLA fund

LARA Fedetol levenuesAtoveground swrage tank feesEer inspecticn fundCcnstwctian ccdc findCcrpeta(icn fQnElear feesFlie servcc f,e

th rrc’Ess:cis re LdHa’th sys:arns feestjensn; nd ret,at:cn leesUqubs prc’15e rvcvr. fJ

rnethca mr.hr,ana tunaMtbie h:me code fundPub:Ic ulWty asses,men5Radiclagicar hea:th foes

Safety education and rarning fundSecond injury fundSectñties feesSlflnsute,s security fundSj:ccsis and dust drsea,e fundTt t!bLna jr.2

Unde;r:r.t sts;ge lj4 fe,25CF,GP

23I62i7 Amer,rnEr,s cvc; ECODO x!n 2 ci 4

FY17 IT Fund Sources - Ad Board APPROVEDAppruprLalod Fund Sources January 10, 2017

D23 Fund S,urcesMichigan State

Lotteiy Sa:e Lcttcr, FLCd Administrative Board

DTF,1B Sae Rs:i hareti /3

:G-; Onp Fa’nDG &,, Use FesDeferred Crensat;cn

Halth FundsA4!N UscrCbarcs

Pens’cn TrjsA FundSecaI Rerenue Internal Svt 8 Penson Trust FundsC F.t’

DMVA 033-00k rIGS

HHS Fo careInnme an assessmnntsGFGP

DNR Ccrnrnerc,r fsrettF’s De:ecrner Ft,JFcetI ar. user tt,aresFces rectatc, fundGm ad 1;s, prjn IurGame arid h foect’n und -deer Iiab;Iat lelervo

Game and rab protmcucn Ld - urhcy pe,rn teesGame and 1sF, pzotoctinn lund - watcrlcw! feesGame an rsh — wtdLifc rs:urce pmlectn FundGame and f:sh — yculh buntirl 6 fishngtaLjtanhLxi ecttane lazzto,t LndF.Irre 5ac ftr.

. FIanti Rescu-tes Trj,I FLitL! sta ak3 ec7Aren1 kidMrt:,ri s:,e waIen,s IrdM.hian rahvays FundNngame wjdIfe rundORV sae:y tducasn fundDRy .Tra!

Reaeazr ,trrerSr.cwmct:v rea5Irt’on fee m,enue£t.rtt Ira nwnvrneq!

Spcsmn ali2t tun;er un:

GFflP

Slate Adm:nsra’,,o Order Proce,s:ng FeeAuID Reafr Fac;te, FeteDna, FtcsEjrctj trwvr Lcae L flWai F;3 Fu-idEsndcnI Scr’ce FeesPa-’o I ke Con FretPtDCa,FeesR;nstateren Fees — Opero:r UtTranspvnan Admnstracn Co!ecton FundVe[gtle Thcft P,eventcn FeesGF-GP

2016-1017 Amend’rents cver EODOO 3 c 4

FY17 IT Fund Sources - Ad Board APPROVEDAprcpr:atJ Funu sou,ts January 10 2017

Age-tv D23 Fund SDurcescc Michigan StateP[iGMDOS Administrative BoardSGlIflT saIe trurkLr.e ftjdtD-dUtR. tn,noiD-MDTR Qmerency l;hcne fund cccrtJnaDrIDGMDTR. ernaroncy l&crna lund c€raaslOT tw:k safety fundODJDOTCHSn r:ttnton LTdCit Ierrce nsDjk V2 :veri ,, o-. la-n trFs’ent Scencc Pe-mtnv,ri FeesLt C331r ‘t1

K tt,j Sa’aij Ft,JMfl:gan ment trial ljt

Mi:b;an Justice tra;nnD uniN:iear power planl r&mbuiscrnr,l feesSetnday mad pat,ol and lranin fundState cren&: lab fundSa10 seIvcas ‘o fundRe:rnbursed ervkesSex Offende, Regsy Fund

a revenucisri: uaa re1ern

iatEc au, etrerrt rd 2eIj fr:Lta-A(Sl7esLeo). jUN leesLsa! stDl u2 ,ecr.ues

CF/C P

MDOT DDTFHWA. H’ghty ,ete,rtn.;trnn a nStrut;cn

E:uo Waler Bnde FundCrnpcehenswe Transp Fw’dEnaric Deveoprnt FundLch:gn TrnsporIatron Fund

S:ale Aeronutcs Fund

Sta:e Tnsnl.1no Fund

Trva5ury CO Trrscti.;r FtwcDED-OPSE hsID Lc2ntLocar - Cty inme at FvnsOc:r$un1 To’ Cctttn RiThtv Ta, Re-€n.eReljereni Ft•rs

SF/OP

MSHDA MSHDM fees and chas

TED Total ftderar enu

3L Federal Fundi

CDL. ETA. Vtt

2316 :7 Ame,tments over cCD3D x!sz c 1

tnmt. Fm. C.,w1 D.iib..tc flSWIT

Ad Board Datc Z’7/?017(cer2)STATE ADMINISTRATIVE BOARD APPROVED

COYrR-crCIMNGERECOMMENflATION 7,2017DEPARTMENT OF TECHNOLOGY, MANAGEMENT ANDUUDGET

PROCURflIENT Michigan StateAdministrative Board

AGENCY SUBMITTAL Statutoiy Authority per MCL (state MCL Section #)C Standard Delegation via Ad Guide (state Ad Guide 10C Special Delegation lener (submit with bid tab)C PurchasinG Alliance Approval Form (submit with bid tab)

DTMB PROCUREMENT SUBMITTAL

CONTRACT DESCRIPTION Contract 07iB82000l 8; Add funding for SIGMA integration testing services forMichigan Integrated Tax Processing and Administration System (MIITAS);DTMB on behalf of Department ofTreasury.

CHANGE NOTICE NUMBER:21

CONTRACTOR: MICHIGAN BUSINESS: INCREASE:Deloitte Consulting LLP Detroit, Ml $1,317,542.00

Check if request is to exercise Contract oplion(s).Requested lime period and )ength:

C Check if request is to e,ctend Contmct (no option in base).Time period of extension and length:

o Check if extension is beyond Contract option year(s).Time period of extension and length:

C Check if this is an Extended Purchasing Contract

ORIGINAL CONTRACT: # of Base Years: 03 Year(s) 1 Month(s Beginning ‘alue $14,950,609.00

Start Date and End Date: 9/1512007 - 12131/2010

CURRENT CONTRACT VALUE: $82,508,338.99

NEW TOTAL CONTRACT ‘ALUE: $83,825,880.99

PREVIOUS OPTION YEARS/EXTENSIONS:OPTiON PERIOD SAD APPROVAL

DATE:CN #2 12/31/2010 thrDugh 12/31,2011(01 YerO Month)Option 5/5/2009 EebrL S%;45UU0.OO

and Dollar Increase-

CN#S 12J31/2011 through 12131/2012(01 YcarO Month) 7/1912011 floWM0Change in Product, Terms. Pricinu or Scope and S Auth and Aministrafive oard

It S 12/31/2012 through 12/31/2013 (01 Vearo Month) I N/A $0.00

_____

Extension

_____

. ICN #9 12/31/2013 through 12/3112015 (02 Years 0 Month) J N/A $0.00‘I Extension

____

CN# II 12/31/2015 through 12/31/2018 (03 Years 0 Month) 1/13/2014Extension

_______

Total i 529,485,000.00

PREVIOUS CHANCES NOT LISTED ABOVE IN THE OPTIONSIEXTENSIONSTABLE:OPTION TYPE OF CHANGE: SAB APPROVAL VALUE:

DATE:

ICH # I ‘Charn2e in Product, Terms, Pricing, or Scope I 1115/2008 5200,00000CN #3 Change in Product, Terms, Pricingor Scope and $ Auth 813/2010 $1,255,010.00

CN #4 Change in Product, Terms Pflcinu or Scope and DollarAuth 2/112011 000 00rN #6 Change in Product, Terms, Pricing, or Scope N/A j $0.00

CN #7 Change in PrDduct, Terms, Pricing, or Scope N/A $0.00

ft ID Changc in Product, Tcnns, Pricing or Scope and $Auth 41812014 $I0,000,000.00CN ft 12 Change in Product, Terms, Pricing or Scope and $ Increase N/A $381,839.00.CN #13 Change in Product, Terms, Pricing, or Scope N/A 54, 137,993.00

CN # 14 Change in Product, Terms, Pricing, or Scope N/A $3,152,844.00CN IS Change in Product, Terms, Pricint. or Scope N/A S1,tZL,970.00

£N # 16 Change in Product Terms, Pricing, or Scope N/A $2,015,567.00CN # 17 Clrnnge in Product, Terms, Pricinu, or Scope N/A $574,983.00‘CN # IS Clmnge in Product, Terms, Pricing, or Scope N/A $3,039,803.99

CN # 19 Chanee in Product, Terms, Pricing or Scope and S Increase N/A $443,062.00CN #20 Doflar)ncreusc 6/21/2016 S5,060,267.OD

Total 537,683,338.99

FUNDING SOURCE: PERCENTAGE: Indicate RESTRICTED FUND nameor COMMUNTS

Rcstricwd :100.00% EntcTrisc System Integration worl<— pE9iEif4

SHOW THE BRE4KDOTh OF THIS INCREASE BY FISCAL YEAR(S):FY: DOLLAR AMOUNT:

E

Description of Product/Senice Modification Requested and Process Explanation: vThe purpose of this change is to add SIGMA integration tesling serices for Michhran Inte&rae T!i} rocissing andAdrninistrauon System (MEITAS). Tue integrations were developed under a prior staternent’àidrk.Due to the timeconstraints for the SIGMA go-live, the parties have identified the need lo add these services l4heSIGMA project on schedule. Work began in early November 2016. Due to previouslytechnological complexities, the contractor needed ic provide resources in an expedited manner to achieve theOctober 2017 SIGMA implemeniation deadline, A directors letter identifying the corrective action plan to mitigatethe risk of this occurring in the future has been requested.

Purpose/Business Case of Amendmenl or Extension, and Expected Outcomes:The State is currently implementing the COT Advantage financial and procurement applications to replace ihe Stateslegacy statewide financial system (MAIN). This ne’v solution (SIGMA) is currently being implemented by CGI.Deloitte Consulting has previously deveLoped the MUTAS-SIGMA integrations and will pmcide these lestingSen ices. The testing is needed to ensure the syslem works properly prior to go-live. This amendment is allowed inthe current contract language.

Risk Assessment:tf this change is not approved, the State will not be able to identify and resolve detects on (he integration betweenMIIIAS and SIGMA prior to go-live.

PRICE CLAUSE FROM CONTRACT: Finn fixed.

CS-138 # PROVIDED FOR SERVICES 08453200003

COST REDUCTIONISAVINGS CONSIDERATION: N/A

FOR IT CONTRACTS Check box if adding more than S500,000.OO for software development,ONLY - computer hardware acquisition or quality assurance.

PURCHASING

vjC&c7rlI Jarrod B’4on

/IT Division Buyer/DmIB- Procurement

;—

\ViIliam PenibiDIT Division DirectorDTMB- Procurement

:

Sharon \Vanga_Ma*jrniSourcing Dircclor

DTMB- Procurement

AGENCY APPROVALSAPPROVED

7 fli 7

Michigan StateReturn Infonnation: Administrative BoardContact Name:ID Mail:Phone No.:e-Mail:

Lorri VhiTcIT Division Buyer Manager

DTMB- Procurcmcnl

Cn.nad bjh. sa:

Ad Board Date: 3114’20 17 (ver, I)STATE ADMINISTRATIVE BOARD

CONTRACT CHANGE RECOMMENDATIONDEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

PROCUREMENT AP EDMarch 14, 2017

AGENCY SUBMITTAL Statutory Authority per MCL (state MCL Sectic #)Mc.hgan State

D Standard Delegation via Ad Guide (state Ad Guide ammn1str8t Board

D Special Delegation Letter (submil with bid tab)C Purchasing Alliance Approval Fonu (submil wilh bid tab)

UTMU PROCUREMENT SUBMITTAL

CONTRACT DESCRIPTION Contmcl 07) B55001 10, Enterprise Infomiation Management program; Addfunding for ndditional planned data implementations and system integrations;DTMB Statewide.

CHANGE NOTICE NUMBER: N/A, Funding authorization request only.

CONTRACTOR: MICHIGAN HUSINESS: INCREASE:Pricewaterhouse Coopers. LLP New York, NY C SI 2,600,000.00

fl Check if request is to excrcis Contract option(s).Requested lime period and length:

Check if request is to extend Contract (no option in base).Time period of extension and length:

o Check if extension is beyond ConthieL option vcar(s).Time period of extension and length:

D Check if this is an Extended Purchasin2 ConLrat

ORIGINAL CONTRACT: Vi of Ruse \‘cars: 3 Year(s) U Month(s) fleginning Value S2,000,000.O0

Start flate and End Date: 6/17/2015 - 6/16/2018

CURRENT CONTRACT VALUE: S3,395,360.U0

NEW TOTAL CONTRACT VALUE: SI 5,995,360.00

PREVIOUS OPTION YEARS/EXTENSIONS:

APPROVEDMarch 14, 2017

PREVIOUS CHANGES NOT LISTED AflOVE TN THEOPTION TYPE OF CHAIWGE: SAR APPROVAL VALUE:

DATF;Change in Prcduct,Tvnus, Pricing,crScopc 6/21/2016 $1,000,000.00Chaiwe in Produci, Tcnns, Pricina, or Scope WA $395,360M0

Total 51,395,360.00

FUNDING SOURCE: PERCENTAGEf Indicate RESTRICTED FUND nameor COMMENTS:

Restricted 100,00% Vics by agency I

SHOW TilE BREAKflOVN OF THIS INCREASE BY FISCAL YEAR(S):1W: DOLLARAMOUNT:2017 I

I

2018‘ 56,000,00000

Description of Product/Senice Modification Requested and Process ExplanMion:In November 2013, Governor Rick Snyder issued Esecutive Directive 2013-1 to establish an Enterprise InformationManagement (ErM) program to promote an integrated and coordinated data management environment in the State ofMichigan. In December 2016, the Governor issued ENecutive Order 2016-24. retahüng ElM goalsthe program by establishing a Chief Data Oflicer and incorpornLin privacy functions ‘%ithin the ElM frnrnen:ork.Since then, the ELM program team has worked as an cnieq,risc entity across departments to establish iteI1as thecore senice provider for any strategic Slate program that requires data inlegnlon, The purpose of thiu1&4utuSjteauthorize adding funding lbr future udditional implementations and system integrations of data initE1MqBvard

Purposelbusiness Case olAmcndmcnt or Extension, and Expected Outcomes:The overall program objective for FY 2017-19 is to implement the citizen centric governmcnt vision throughintegration of MiPage, MiLogin. and ElM. Additionally, thc ElM program will continue to ork with depanrnernsto onboard enterprise solutions such as Lhe Business Obssan. Location Master, Data Analytics, and Data Sharingrepository. To this end, several such projects for DrMB, Dl-IHS, Treasury, MDOT, DIES and MSP are currentlybeing planned. Any work perfomied under this contract pursuant to this authorization ‘sill require a contract changenotice. This amendmenl is allowed in the current contract lanuuage.

Risk Assessment:Delivery of Citizen Centric Government solution will not he possible withDut integration of ElM with MiLogin andMiPage. Additionally. othereritical components of the ElM program as identified in Eseculive Order2Olo-24 willnot be delivered.

PRICE CLAUSE FROM CONTRACT: Firm-fixed.CS-13S # PROVIDED FOR SERViCES 08453200003COST REI)UCTION/SAVINGS CONSIDERATION N/A

FOR IT CONTRACTS Check box if adding more than $500,000.00 for software development,ONLY - computer hardware ucqukition or quality assurance,

-

PURCUASING APPROVALS

Loimine Vhitc

IT Division Buyer ManacerDTMB- Procurement

C&ri.

Simian VaIcnd-Xlay,ardSourcing Director

AGENCY APPROVALS

APPROVDiRdum Information: Marcn 14. 201

___________ _____

tact Name: 1TO Mail: Michigan StatePhoneNo.: Administrative Boardc-.TaiI:

Jarrod fla&onIT Division Huver

DTMB- Procurcrnc,,L

tVflhiam I’embc

IT Division Director(-I

DTMB- Procurcmcni DTNIB- Procuromeni

InnWa FnaCn, D.I. flI7

Ad Board Date. 3/13/2017 (ver.I)STATE ADMINTSTWATIVE BOARD

CONTRAcT CHANGE RECOMMENDATIONDEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET APPROVED

PROCUREMENT March 14,2017

Michigan StateAGENCY SUBMITTAL 0 Srntutoy Authority per MCL______________ (stale MCL sedgaTnsIralve BDard

o Standard Delegation via Ad Guide

__________

(stale Ad Guide #)O Special Delegation letter (submit with bid tab)O Purdrnsing Alliance Approval Font (submit with Nd lab)

DTMB PROCUREMENT SUBMITTAL

CONTRACT DESCRIPTION: Contract # 071B1300386This is a contract extension for an additional IS months and an additional$515,629.00 for the following services: SIGMA Interface Treasury/InvestmentAccounting System; License & Maintenance, Pans License & Hosting, PoasLicense & Flosting DR. Training and Q2 GIL Transaction Extract FileMaintenance. Requesting Departmtmt: Treasury

CHANGE NOTICE NUMBER: 4

CONTRACTOR: MICHIGAN BUSINESS: INCREASE:QED INFORMATION SYSTEMS INC S515,629.00Marhon, N)

C Check if request is to exercise Contract option(s).Requested fime period and length:

0 Check if request is to extend Contract (no option in base).Time period of extension and length:

Check if extension’s beyond Contract option year(s).Time period of extension and length: 9/18/2017 - 12/17/2018 (15 Months)

C Check if this is an Extended Purchasing Contract

ORIGINAL CONTR4Cr: # of Base Years: 03 Year(s) I Month(s) Beginning Value 51,287,150.60

Start Dtc and End Date: 9/tW2011 - 911712014

CURRENT CONTRACT VALUE: $2,324,626.94

NEW TOTAL CONERACT VALUE: $2,840,255.94

S343,721.50A nnnfl’,r

lilIsII’Jv1-hi I Ifli]

Indicate REsTifiaLD FUND nameFUNDING SOURCE: PERCENTAGE or COMMENTS:

Restricted 100% lUG

SHOV THE BREA}OWN OF THIS INCREASE BY FISCAL YEAR(S):1W: DOLLAR AMOUN7:

2017-2018 $515,629.00

Description of Product/Sen’ice Modification Requested and Process Explanation:This request is hr a IS month extension and contract increase in accordance with Chapter 5.76 Useful LiIè for thefollowing purpose: License & Mainlenance. Paus License & I1osun. Paas License & Fiosting DR. Training and Q2GIL Transaction Extract File Maintenance.

PurposcfBusincss Case of Amcndment or Extension, and Expected Outcomes:The vendors Q2 system requires an interthce to the StaE&s new accounting system (SIGMA). It is being designed and‘viii be implemented next fiscal year. if a new vendor is selected, they vill require a new interface to be built. TheSIGMA team, at this time, is not aeccpIin requests for new intcrIuces until SIGMA has gone live October 1,2017.This 15-month extension will allow Bureau of Investment (801) and DTMB Agency Senices sufficient time to issuea Request lbr Proposal and gives the Stale adequate time to develop a new intcrthce to the SIGMA system if a newendor is selected, in addition, the sian dale of December 18. 2018 for a new syslem implementation ‘voi.üd betteralign with BOYs schedule, allowing them sufficient resource time to devote to a new vendor if one is selected.

PREVIOUSOPTION

OPTION YEARS/EXTENSIONS:PERIOD SAD APPROVAL

PATE:CN # I Dpt0fl and Increase 6/10/2014

Total

VALUE:

PREVIOUS CHANGES NOT LISTED ABOVE IN THE OPTIONS/EXTENSIONS TABLE:OPTION TYPE OF CHANGE: SAil APPROVAL sfAbn State

DATE: Administrative Board

#2 Dollar increase 9/10/2015 $582,254.83 —

CN #3 Change in Product, Terms, Pricing or Scope and $ Increase 8/t8/2016 $111,500.00

Total $693754.84

Risk Mscssmcnt:The application is essential La the continued functioninu of a legally mandated program with the continued usegreatly nssistin siaff with presn1ng and procuring revenue for the benefit of the SOM. lithe cunent application‘vera not maintained, then Treasury, BC! and SOM ‘could be exposed to various operationni risks, severely’ limitingthe ability of the NO! to pertbmi mandatory fiduciary’ duties. In turn the Stale could lose millions ofARRROVEDsuffer increased employer contributions, In addition, the Slate viIl pay higher costs if the new ASP çy rnicnns 7not procured and implemented.

-

Michigan State- Administrative BoardPRiCE CLAUSE FROM CONTRACT: Per section 2.011; I’rice is Firm Fixed

CS-138 # PROVIDED FOR SERVICES 08453000018

COST REDUCTION/SAVINGS CONSIDERATION NA

FOR IT CONTRACTS Check box if adding more than $500,000.00 for software development, ONLY -

computer hardware acquisition or quality assurance.

___AGENCY

APPROVALS

Return Infonnaüon:Contact Name:ID Mall:PI,oneNo. claiI;

\Villiam PembleIT Division DirectorDTMB- Procurcmcnt

Icait{t;iJ—V

Sharon VaIj(ga-MaynuiSourcing Director

DTMB- Procurtmcnt

kuthoñzed Agency Representative (printed)

Authorized Auency Represenlative Signature IPURCHASING APPROVALS

APPROVEDMarch 14, 2O1

Michigan StaleAdministrative Spard

Kim HanisIT Division Buycr

DTMB- Procurcment

APPROVEDAd Board ?è91vr.l)

STATE ADMINISTRATIVE BOARDCONTRACT CHANGE RECOMMENDATION Michigan Slate

DEPARThIENT OF TECHNOLOGY, MANAGEMENT AND BoardPROCUREMENT

AGENCY SUBMIfl’AL C Statutory Authority per MCL_______________ (state MCL Section #)C Standard Delegation via Ad Guide

__________

(slate Ad Guide 14)C Special Delegation letter (submit with bd tab)C Purchasing Alliance Approval Form (submit ith bid tab)

DTMB PROCUREMENT SUBMInAL

CONTRACT DESCRIPTION 07188200018; Add funding to add medicnl marijuana tax processing functionalityto Michigan integrated Tax Processing and Administration System (MIITAS);Department of Technology, Management & Budget on behalf of Treasury.

CHANGE NOTICE NUMEER: 22

CONTRACTOR: MICHIGAN BUSINESS: INCREASE:Deloitte Consulting LLP Detroit, Mi Si .1 32565.OO

D Check if request is to exercise Contract option(s).Requested time period and length:

C Check if request is to extend Conlmct (no option in base).Time period of extension and length:

C Cheek ilextension is beyond Contract option year(s).Time period of extension and length: I

C Check if this is an Extended Purchasing Contract

ORIGINAL CONTRAcT: # of Base Years: 03 Year(s) 4 Monlh(s Btginning Value S14,950,000.UP

Stnrt Date and End Date: 9/15/2007 - 12/31/2010

CURRENT CONTRACT VALUE: S83825,88 0.99

NEW TOTAL CONTRACT VALUE: S84.95$,445.99

APPROVEDPREVIOUS OPTION VEARS/EflENSIONS:

___

March2&2UtL -

• OPTION PERIOD SAIl APPROVAL VALUE:

DATE:

Michigan StateCS 2 12/31/OlOthrouGh 12!31/2U11 (01 Yëaro Month) OpIon 5’5i2009 Adni*WSoard

• and Dollar In:mase#5 T2/3 1/2011 through 12)31/2012(01 Year 0 Month) 7/19/2011 520,000000.00

Change in Product Terms, Pricing or Scope and S Auth and

-

CX 48 12’31/2012 throuh 1111/2013 Cal Yearo Month) N/A $0.00

ExtermionCNt9 12’Jli2OlJjhrcuch 12!31P20l5(O2YeamO Month) N/A $0.00

ExlansiDn:CN# II 12/31/2015 Ihrouh 12/31/201K (03 Years 0 Month) 1113/2014

-

EXIc!fl

Total ] S29,35,0U0.00

PRE VIOUS CHANGES NOT LISTED ABOVE IN ThE OPTIONSIEflENSIONS TABLE:OPTION TYPE OF CHANGE: SAil APPROVAL VALUE:

DATE:

CN #1 Change in Product, Turns, Pricing, or Scope 1/15/2008 $200,000.00

CN Ii) Change in Product, Terms Pricing or Scope and S Auth 8/3/2010 $4,255,010.00

CN #4 Change in Product, Tents, Pricing or Scope and Dollar Auth : 53,000,000.u0

CN #6 Change in Product, Tents, Pricing, or Scope [ N/A $0.00

•CN 47 Chanc in Product Tents, Pricinu, Dr Scope N/A $0.00

610 change in Product, Terms, Pricing or Scope and S AuIh 4’8!2014 SI0,000,000.00

W 12 Change in Pmduu. Terms, Pricing or Scope and $ Increase N/A S381,839.00

CN #13 Change in Product, Tents, Pricing, or Scope N/A $4,137,993.00

CN 6 13 Chge in Product Tcnns, Pricing. or Scope N/A $3,452,833.00

#15 Change in Product, Tents, Pricinu, orScope N/A $1,121,970.00

CN #16 Change in Product, Terms, Pricing, orSo NM $2,015,567.00

CN # 17 Chang in Product Terms, Pricing, or Scope NM $574,983.00

CN fi IS Change in Product, Terms, Pricing, or Scopc N/A $3,039,803.99

CN # 19 Clrnnge in Product, Terms, Pñcing or Scope and S Increase N/A $443,062.00

CN #20 Dollar Increase 6/21/2016 $5,060,267.00:CN #21 Change in Product, Tents, Pricing, or Scope 2/7/2017 $1,317,532.00

L_ i. -—-fl

PERC fAö€ iil 1C0or COMMENTS:

StMeGencmIFUfld. . -

SflOV THE BREAKVOVN OF THIS INCREASE BY FISCAL YEAR(S):

____

nóLñiöü:1 APPROVED2017 .

- March 28, 2017

Michigan StateAdministrative Board

APPROVEDDescription of ProductfSenice Modification Requested and Process Explanation: March 28, 2017

This amendment is to add fundinu and services to develop and implement medical marijuana tax rcçssinfunctionality on the exisling system patfon. Micnian State

Administrative Board

Purposefflusiness Case of Amendrnen( or Etlension, and Expected Outcomes:The Medical Marijuana tax Ieuislaticn levies a specific tax on the sale of medicully prescribed marijuana begmnnngin 2017. The Medical t.IarijuanaTux prujett will specifically include activities io support the design. configure.develop, and test requiremenis prescribed by Stice le&slation,

Risk Assessment:\Vjthout ibis concraci amendment. Treasui will be unable lo implement and collect this tax as required by 11fl4209.IlB42lOand HB4827.

PRICE CLAUSE FROM CONTRACT: Firm fixed

CS-13 #PROUDED FOR SERVICES 084S30OOOl

COST REDUcrION/sA’INGS CONSIDERATION N/A

FOR IT CONTRACTS Check bo,r if adding more thon $500000.00 for software development,ONLY - compuWr harthare acquisition or quality assurance.

APPROVEDMarch 28, 2017

AGENCY APPROVALS Mirhigan StateAdministrative soara

Return Information:

Contact Name:ID Mail:phone No.:eMall±

____ __________—

APPROVALS

AuIhprized.Agenc.ReDrescnIgIiye(pdnIed)

Authorized A(!encv Renreseniative SiEnalure

/ PURCHASING

0%?/ V JtLafin

IT Division Buyer01MB- Prouiwmenl

111km PembleIT Division OhectorDTMB- Procurement

Sharon WaidnQ-Mn%nard dSourcing Director

DTMB- Procurement