microsoft powerpoint - vendor management and the rfp.ppt

Vendor Management Vendor Management and the RFPand the RFP

China L. Widener, Chief of Staff and China L. Widener, Chief of Staff and Assistant Director, Operations DivisionAssistant Director, Operations Division

Ohio Department of Job and Family ServicesOhio Department of Job and Family Services

What will be covered?What will be covered?

What do you want to know?What do you want to know?What is an RFP?What is an RFP?From Idea to ActionFrom Idea to Action-- before you write one wordbefore you write one word

Business caseBusiness caseBusiness process reBusiness process re--engineeringengineeringSystem Requirements (technical and functional)System Requirements (technical and functional)

Crafting the team and drafting the RFPCrafting the team and drafting the RFPHow should the work be managedHow should the work be managedWho should be on the teamWho should be on the teamComponents Components Where to start…. Where to start….

Managing the vendor relationshipManaging the vendor relationshipContact and communicationContact and communicationChange orders = $$$$$Change orders = $$$$$

Lessons learned from OJI and other Department Lessons learned from OJI and other Department effortsefforts

What is an RFP?What is an RFP?After all this is government!After all this is government!

An unnatural way to shopAn unnatural way to shopIf a picture is worth a thousand words, then an RFP If a picture is worth a thousand words, then an RFP is the thousand words illustrating the pictureis the thousand words illustrating the picture

Tells vendor community who/what the agency isTells vendor community who/what the agency isWhat service or product needs to be purchasedWhat service or product needs to be purchasedWhy its needed and/or how it will be utilizedWhy its needed and/or how it will be utilized

Binding instructions to communicate a business’ Binding instructions to communicate a business’ desire for a new product or servicedesire for a new product or service

Detailed specifications on what is neededDetailed specifications on what is neededWhat you need to see form vendor to be sure they are What you need to see form vendor to be sure they are qualified perform the work and produce specific outcomesqualified perform the work and produce specific outcomesDetails how vendors will be evaluated to select the best Details how vendors will be evaluated to select the best vendorvendor

The heart of the contract and the soul of the The heart of the contract and the soul of the relationshiprelationship

From Idea to ActionFrom Idea to ActionBefore you write one word!Before you write one word!

Business CaseBusiness CaseWhat do you want and why do you want it?What do you want and why do you want it?

The business must know what it wantsThe business must know what it wantsExample:Example:Taken from an actual OJI RFPTaken from an actual OJI RFP3.0 Justification for and Nature of 3.0 Justification for and Nature of

ChangesChanges

From Idea to ActionFrom Idea to ActionBefore you write one word!Before you write one word! (cont.)(cont.)

The Benefits 2000 project was initiated The Benefits 2000 project was initiated .....as a result of two business concerns:.....as a result of two business concerns:

The current UC benefits business processes are The current UC benefits business processes are based on the business needs which were present based on the business needs which were present in the midin the mid--1980s. Since that time the UI business 1980s. Since that time the UI business environment has changed, in some instances environment has changed, in some instances dramatically.dramatically.The existing computer systems which support the The existing computer systems which support the delivery of UC Benefits are difficult to upgrade and delivery of UC Benefits are difficult to upgrade and costly to maintain. costly to maintain. As a result of these concerns OBES identified two As a result of these concerns OBES identified two overarching goals for the Benefits 2000 project:overarching goals for the Benefits 2000 project:

Replace the existing UC computer Replace the existing UC computer applications using a foundation of new applications using a foundation of new technology and improved design methods to technology and improved design methods to improve flexibility and maintainability. improve flexibility and maintainability. Flexibility includes the ability to add new Flexibility includes the ability to add new features and to incorporate system changes features and to incorporate system changes resulting from future law and policy changes.resulting from future law and policy changes.Improve the UC business processes, Improve the UC business processes, radically if necessary, to meet UC business radically if necessary, to meet UC business needs that have changed since the midneeds that have changed since the mid--1980s. The new business processes are 1980s. The new business processes are targeted to be significantly more efficient and targeted to be significantly more efficient and adaptable to wide swings in workload.adaptable to wide swings in workload.

From Idea to ActionFrom Idea to ActionBefore you write one word! Before you write one word! (cont.)(cont.)

Business CaseBusiness CaseComponents of a business case Components of a business case assessment include:assessment include:

Documentation of current technology “as Documentation of current technology “as is” including enhancement capacityis” including enhancement capacityReview and consideration of Review and consideration of provenprovencurrent technology capability options, current technology capability options, this is the “to be” state this is the “to be” state Gap analysis between “as is” and “to be”Gap analysis between “as is” and “to be”Cost analysis not just of what the Cost analysis not just of what the technology costs but the cost of not technology costs but the cost of not getting the technology, of not changing getting the technology, of not changing the business processthe business process

From Idea to ActionFrom Idea to ActionBefore you write one word!Before you write one word! (cont.)(cont.)

Identification and excruciating Identification and excruciating documentation of business process documentation of business process requirementsrequirements

This must be performed by actual This must be performed by actual business usersbusiness users

Must get executive “buy in” Must get executive “buy in” –– develop develop executive steering committeeexecutive steering committee--

Gap analysis of staff skills “as is” v. “as Gap analysis of staff skills “as is” v. “as needed” this will dictate training needed” this will dictate training requirementsrequirements



System RequirementsSystem RequirementsDetermine and document system Determine and document system requirements requirements Identify enterprise requirements re: Identify enterprise requirements re: hardware, software hardware, software Determine whether “to be” requires new Determine whether “to be” requires new system or enhancements to “as is”system or enhancements to “as is”Determination of whether “to be” can be Determination of whether “to be” can be accomplished with previously owned accomplished with previously owned model or whether a special order new model or whether a special order new build is requiredbuild is required

Consideration of overall fitConsideration of overall fitDetermine the overall fit of the project Determine the overall fit of the project with the agency’s and business areas with the agency’s and business areas mission, technical architecture and mission, technical architecture and budgetbudget

Crafting the team and drafting Crafting the team and drafting the RFPthe RFP

How should the RFP work be managed?How should the RFP work be managed?As a project unto itselfAs a project unto itself

Assign a project managerAssign a project manager

Utilize project management software tool Utilize project management software tool

Identify a “Steering Committee” Identify a “Steering Committee”

Crafting the team and drafting Crafting the team and drafting the RFP the RFP (cont.)(cont.)

“Steering Committee” meetings help “Steering Committee” meetings help leadership stay informed on the progress of leadership stay informed on the progress of the project.the project.

Members should include executive staff Members should include executive staff associated with IT, business area, director’s associated with IT, business area, director’s office, external agency leadership, e.g., office, external agency leadership, e.g., budget office, state CIObudget office, state CIOMinutes can accomplish two very important Minutes can accomplish two very important tasks: tasks:

identify when the scheduled workidentify when the scheduled work--plan is plan is on target or in jeopardyon target or in jeopardyidentify who or what is creating the risk . identify who or what is creating the risk .

The earlier that leadership is aware of this, The earlier that leadership is aware of this, the better the chance of correcting the the better the chance of correcting the deficiency prior a negative impact to cost and deficiency prior a negative impact to cost and schedule becomes materialschedule becomes material

Create a Project Team, include:Create a Project Team, include:PMPM-- this person wakes up everyday and is responsible for this person wakes up everyday and is responsible for ensuring project progressensuring project progress

IT leadIT lead--responsible for ensuring technical requirements are met responsible for ensuring technical requirements are met or inor in--house services performedhouse services performed

Business leadBusiness lead-- ensures the business is meeting obligations ensures the business is meeting obligations regarding requirements, testing scenarios etc regarding requirements, testing scenarios etc business usersbusiness users--provide ongoing business input and background provide ongoing business input and background for decisionfor decision

contract point personcontract point person-- ensures compliance with state ensures compliance with state procurement requirements procurement requirements

legal point personlegal point person--to be used as needed to be used as needed

external agency personnel as required by state law or neededexternal agency personnel as required by state law or needed--state CIO or procurement staffstate CIO or procurement staff


Crafting the team and drafting the Crafting the team and drafting the RFP RFP (cont.)(cont.)

Components of a RFPComponents of a RFPSection 1: IntroductionSection 1: Introduction

Purpose for project, background, context, Purpose for project, background, context, logistical information related to RFP process logistical information related to RFP process (submission specifics, clarification avenues), (submission specifics, clarification avenues), where to get supplementary materialwhere to get supplementary material

Section 2: Specifies the workSection 2: Specifies the workDescription of agency’s expectations, descriptions Description of agency’s expectations, descriptions of payable deliverablesof payable deliverables


Section 3: standard requirements responding Section 3: standard requirements responding vendors should be aware ofvendors should be aware of

Who pays for expenses in preparing the response Who pays for expenses in preparing the response to RFP, accountability requirements not directly to RFP, accountability requirements not directly related to service, e.g., necessary insurance, child related to service, e.g., necessary insurance, child support compliance, HIPAA compliance etc.support compliance, HIPAA compliance etc.

Section 4: instructions to vendor on compiling Section 4: instructions to vendor on compiling the responsethe response

Proposal organization, special instructions on Proposal organization, special instructions on developing the cost, how and when and on what developing the cost, how and when and on what structure payment will occurstructure payment will occur

Section 5: Process Agency will use to score Section 5: Process Agency will use to score proposalsproposals

Ranking, consideration of cost in relationship to Ranking, consideration of cost in relationship to technical score, technical proposal score is technical score, technical proposal score is publish with RFP ,score sheet references publish with RFP ,score sheet references particular parts of RFP, identifies separate phases particular parts of RFP, identifies separate phases of score sheet for which vendors might be of score sheet for which vendors might be disqualifieddisqualified

Other RFP document featuresOther RFP document featuresVendor Library, state presence language, Vendor Library, state presence language, prohibition of proprietary information, prohibition prohibition of proprietary information, prohibition of inclusion of cost information in technical of inclusion of cost information in technical proposals, customized cost proposal information, proposals, customized cost proposal information, anonymity of agency staff, publication of RFPanonymity of agency staff, publication of RFP


Crafting and drafting the RFPCrafting and drafting the RFPWhere to start….(plagiarize or Where to start….(plagiarize or research)research)

Review the proposals of other statesReview the proposals of other statesCopy or edit where possibleCopy or edit where possible

Identify the core Identify the core drafter(sdrafter(s))Draft and submit to team section by sectionDraft and submit to team section by sectionIdentify and document key decision points and Identify and document key decision points and solutions solutions Tip: Have one or two people who read the first 2 or Tip: Have one or two people who read the first 2 or 3 iterations but who will not read drafts 43 iterations but who will not read drafts 4--8; then 8; then before you get to the final product have those folks before you get to the final product have those folks read the near final to ensure that “fresh eyes” read the near final to ensure that “fresh eyes” understand the document on the who and that it all understand the document on the who and that it all fits.fits.

Managing the vendor relationshipManaging the vendor relationshipContact and communicationContact and communication

PM and project team should be prepared to meet PM and project team should be prepared to meet with both the local vendor management and with both the local vendor management and senior vendor management on a regular basis. senior vendor management on a regular basis. This allows for more candid information exchange This allows for more candid information exchange that help to manage all resources on the project that help to manage all resources on the project to keep the project on schedule and on budget.to keep the project on schedule and on budget.

Senior vendor management should meet Senior vendor management should meet with the steering committee quarterlywith the steering committee quarterly--general updatesgeneral updatesTip: one to one meetings between agency Tip: one to one meetings between agency executive management and senior vendor executive management and senior vendor can smooth out issues faster that large can smooth out issues faster that large meetingsmeetings

Managing the vendor relationshipManaging the vendor relationshipContact and communicationContact and communication(cont.)(cont.)

Hold firm to articulated business and system Hold firm to articulated business and system requirements, even if it does not fit a requirements, even if it does not fit a vendor’s solution. A State’s unique vendor’s solution. A State’s unique requirements may not always fit nicely with requirements may not always fit nicely with the vendor solution causing the vendor to the vendor solution causing the vendor to spend additional resources to make their spend additional resources to make their solution work. solution work.

Example: if the business dictates that the solution must Example: if the business dictates that the solution must use use WebsphereWebsphere, and the vendor’s solution uses , and the vendor’s solution uses WeblogicWeblogicthen there will be a cost to the vendor to make the then there will be a cost to the vendor to make the adjustment.adjustment.

State Business, IT and vendor staff need same State Business, IT and vendor staff need same goals:goals:

Delivering on all deadlines Delivering on all deadlines Impacts to schedule based on state staff not Impacts to schedule based on state staff not delivering, even if only partially responsible, makes delivering, even if only partially responsible, makes it tough to hold the vendor accountable and likely it tough to hold the vendor accountable and likely increases costs. increases costs. Vendor are responsible for notifying project team Vendor are responsible for notifying project team when state staff are jeopardizing the schedule when state staff are jeopardizing the schedule State staff are also responsible for notifying project State staff are also responsible for notifying project team of deficiencies in vendor performance team of deficiencies in vendor performance

Rely on the IV&V vendor to assist in things like Rely on the IV&V vendor to assist in things like workwork--plan and defect monitoring as well as state plan and defect monitoring as well as state staff. staff.

Managing the vendor relationshipManaging the vendor relationshipContact and communicationContact and communication(cont.)(cont.)

Managing the vendor relationshipManaging the vendor relationshipChange orders = $$$$$Change orders = $$$$$

Change orders throughout the project are a Change orders throughout the project are a reality. reality.

Only agree to pay for changes brought on by Only agree to pay for changes brought on by a change in law or a change in state a change in law or a change in state requirements, or a change brought on by requirements, or a change brought on by deficient state performance. deficient state performance. Changes brought forward as a result of the Changes brought forward as a result of the vendor not understanding requirements on vendor not understanding requirements on needing to alter solutions should not be paid needing to alter solutions should not be paid by the state.by the state.

Managing the vendor relationshipManaging the vendor relationshipChange orders = $$$$$Change orders = $$$$$(cont.)(cont.)

Change order pricing, should be negotiated Change order pricing, should be negotiated based on level of effort and not on a based on level of effort and not on a perceived risk. perceived risk. The vendor should be able to estimate level The vendor should be able to estimate level of effort at the point of change order of effort at the point of change order processing. processing. Use the state MIS and other resources to Use the state MIS and other resources to validate the level of effort estimate so that validate the level of effort estimate so that you ensure that you do not pay too much for you ensure that you do not pay too much for the work.the work.


Anticipate that law changes, as well Anticipate that law changes, as well as other external influences, will as other external influences, will affect the project. affect the project. Keep a list of items included on a Keep a list of items included on a statement of work that can be traded statement of work that can be traded off as a deferral in exchange for the off as a deferral in exchange for the new work brought on by the law new work brought on by the law change. change.

Have your must haves and nice to haves Have your must haves and nice to haves defined in advance. defined in advance. Know that staff will think that all items Know that staff will think that all items are must haves and the leader has to are must haves and the leader has to push staff to filter out the nice to haves.push staff to filter out the nice to haves.

Use all leverage points possible. Use all leverage points possible. Understand that vendors are interested Understand that vendors are interested in a bigger share of your overall state in a bigger share of your overall state business, use your state central business, use your state central procurement office to maximize your procurement office to maximize your position. position. Don’t forget about the power in a Don’t forget about the power in a reference. reference.


Lessons learned from OJI and Lessons learned from OJI and other Department effortsother Department efforts

When looking to leverage time don’t short change When looking to leverage time don’t short change the transfer of knowledge requirements and time the transfer of knowledge requirements and time framesframes

Build integrated fullBuild integrated full--time work teamtime work team

Be extremely specific about system requirementsBe extremely specific about system requirements

Make sure deliverables are specific, measurable, Make sure deliverables are specific, measurable, attainable, results oriented and timeattainable, results oriented and time--specificspecific

Require the use of standards and templates for all Require the use of standards and templates for all deliverablesdeliverables

Build in incentives and penalties for vendor Build in incentives and penalties for vendor achieving or missing activity datesachieving or missing activity dates

Require one integrated work plan for State, vendor Require one integrated work plan for State, vendor and IV & Vand IV & V

Allow vendor to purchase all hardware and softwareAllow vendor to purchase all hardware and software

Training requirements for staff should be specificTraining requirements for staff should be specific

Lessons learned from OJI and Lessons learned from OJI and other Department effortsother Department efforts(cont.)(cont.)

Vendor Management and the Vendor Management and the RFPRFP

QuestionsQuestionsContact InformationContact InformationChina L. Widener, Chief of Staff & China L. Widener, Chief of Staff & Assistant Director, OperationsAssistant Director, OperationsOhio Department of Job and Family Ohio Department of Job and Family ServicesServices30 East Broad Street , 32 Fl30 East Broad Street , 32 FlColumbus, OH 43215Columbus, OH 43215email: email: [email protected]@odjfs.state.oh.usphone: 614phone: 614--466466--65186518

microsoft powerpoint - vendor management and the rfp.ppt

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