october 9, 2003 to all proponents subject: alternative ... · please refer to section 1.2.2.5 to...

October 9, 2003 To All Proponents Subject: Alternative Service Delivery of Payroll Operations & Information Management Project

It is my great pleasure, on behalf of the Ministry of Management Services and the Government of British Columbia, to issue this Joint Solution Procurement Request for Proposal. This is a vital move forward for the ministry and its clients, and an exciting new private-sector opportunity in British Columbia.

In June 2001, government, under the leadership of Premier Gordon Campbell, created the Ministry of Management Services with a mandate to become a centre of excellence. In December 2002 the ministry was expanded to include all major IT functions for government operations. The ministry will conduct its operations in such a way as to ensure that taxpayers get maximum value from the way government runs its internal operations. A major step forward is the involvement of the private sector where their services can best augment those of the ministry.

Through this innovative joint solutions procurement approach, we will select a long-term business partner to work with the Ministry of Management Services to operate, maintain and develop our corporate human resource and payroll systems.

This process is designed to be collaborative in nature, which will allow open and honest dialogue and the chance to best harness the creativity of the private sector to create the best overall value proposition to both partners. We want to arrive at a business solution that delivers the best possible service, privacy of data and management capabilities most efficiently and cost-effectively.

This is an opportunity to take the working relationship between public and private sectors in British Columbia to a new level. I look forward to your proposals and thank you in advance for the time and effort you will contribute to this procurement process. Good luck to all. Cairine MacDonald Deputy Minister Ministry of Management Services

Ministry of Management Services

Joint Solution Procurement

for the Payroll Operations & Information Management Project

Province Contact: All enquiries related to this Joint Solutions Request for Proposal, JSRFP# SATP-033 are to be directed in writing to the person set forth below, who will respond to all enquiries if time permits. Information obtained from any other source is not official and should not be relied upon. Enquiries and any responses will be recorded and may be distributed to all Proponents at the Province’s discretion.

Huan Ngo Manager, Commercial Services

Strategic Acquisitions and Technology Procurement Branch Common Business Services, Solutions B.C.

email: [email protected] Facsimile: (250) 387-1399

Delivery of Proposals: Proposals must not be sent by mail, facsimile or email. Proposals and their envelopes should be clearly marked with the name and address of the Proponent, the JSRFP number, and the program title. Ten (10) complete hard-copies and one electronic copy on diskette or CD must be delivered by hand or courier, and received prior to 2:00 pm, Pacific Standard Time on, November 6, 2003 at:

Procurement Services Ministry of Management Services

102 – 3350 Douglas Street Victoria, B.C., V8Z 7X9

Attention: Huan Ngo Proponents Meeting A Proponents meeting will be held on October 16, 2003. Time, location, and dial-in phone access will only be announced to those submitting a Receipt Confirmation Form. Please note that this meeting is an information session to address questions regarding the alternative service delivery of Payroll Operations & Information Management division. Minutes for this meeting will be taken. A copy of the recorded minutes and a list of attendants may also be posted as an Appendix to this JSRFP on BC Bid. Attendance is optional. Please refer to section 1.2.2.4 for instruction on making enquiries or asking questions on this JSRFP. Please refer to section 1.2.2.5 to 1.2.2.8 for details on Proposal submission and related information.

mailto:[email protected]

TABLE OF CONTENTS 1 JOINT SOLUTION REQUEST FOR PROPOSAL INTRODUCTION ......................... 1

1.1 Purpose of the JSRFP and JSP.......................................................................1 1.2 Definitions and Administrative Requirements ..................................................2 1.3 Ministry Overview.............................................................................................8

1.3.1 Overview...........................................................................................................8 1.3.2 Vision and Mission............................................................................................8 1.3.3 Ministry’s Solutions BC Goals ..........................................................................8 1.3.4 Ministry Organization........................................................................................8 1.3.5 The Project .......................................................................................................9 1.3.6 The Ministry’s Commitment to the Project ......................................................10

2 DEFINING THE OPPORTUNITY ............................................ 11 2.1 Overview, Business Issues And Objectives ...................................................11

2.1.1 Overview.........................................................................................................11 2.1.2 Business Issues..............................................................................................13 2.1.3 POIM and Payroll Services Objectives...........................................................13

2.2 Business Process...........................................................................................14 2.2.1 Background ....................................................................................................14 2.2.2 Organizational Structure.................................................................................16 2.2.3 POIM Project - In-Scope Business Processes ...............................................16 2.2.4 POIM Project - Business Processes Under Consideration.............................16 2.2.5 Payroll Project - Business Processes.............................................................16 2.2.6 Out-of-Scope Business Processes.................................................................16

2.3 Technology.....................................................................................................18 2.3.1 Application Overview ......................................................................................18 2.3.2 Core Application .............................................................................................18 2.3.3 Specific Software............................................................................................18 2.3.4 Software Contracts .........................................................................................19 2.3.5 Custom Developed Applications.....................................................................19 2.3.6 Database Environments .................................................................................20 2.3.7 Hardware ........................................................................................................20 2.3.8 Application Availability ....................................................................................20 2.3.9 Interfaces........................................................................................................21 2.3.10 Security...........................................................................................................21 2.3.11 Business Continuation....................................................................................22 2.3.12 Application Management ................................................................................22 2.3.13 Application Maintenance ................................................................................24 2.3.14 Reporting ........................................................................................................24

2.4 Development ..................................................................................................26 2.4.1 PeopleSoft Development................................................................................26 2.4.2 Specific Software and Custom Developed Application Development ............26 2.4.3 Systems Integration........................................................................................26

2.5 Policy and Compliance...................................................................................28 2.5.1 Privacy Policy .................................................................................................28 2.5.2 Labour Relations ............................................................................................28 2.5.3 Other Policies and Regulations that May Impact the Solution........................28

2.5.4 Software Contracts that May Impact the Solution ..........................................28 2.6 Deal Structure And Economic Model .............................................................29

2.6.1 Deal Structure.................................................................................................29 2.6.2 Economic Model .............................................................................................30

3 OVERVIEW OF THE END-TO-END JSP PROCESS................................ 31 3.1 Definition ........................................................................................................31

3.1.1 Approach and Timeline...................................................................................32 3.1.2 Tentative Work Plan .......................................................................................32

3.2 Key Success Factors .....................................................................................33 3.2.1 Mutual Understanding and JSP Structure ......................................................33 3.2.2 Sharing of Risks and Rewards .......................................................................33 3.2.3 JSP Communications Protocol .......................................................................33

4 THE JSP PROCESS AND EVALUATION CRITERIA ............................... 35 4.1 The JSRFP Process.......................................................................................35

4.1.1 Approach and Timeline Overview...................................................................35 4.1.2 Release JSRFP & Evaluate Proposals...........................................................36 4.1.3 If Only Two Proponents ..................................................................................36 4.1.4 Workshops......................................................................................................36 4.1.5 Proponent Presentations ................................................................................37 4.1.6 Preferred Proponents Selection .....................................................................37 4.1.7 Post Presentations and Debriefings ...............................................................38

4.2 Joint Solution Definition Phase ......................................................................39 4.2.1 Information Control Office...............................................................................39 4.2.2 Discovery Cycle..............................................................................................40 4.2.3 Defining the Solution ......................................................................................40 4.2.4 Comply with Public Sector Service Standards ...............................................40 4.2.5 Framing the Solution ......................................................................................40 4.2.6 Consent to use of Core Application ................................................................41

4.3 Due Diligence & Negotiation Phase ...............................................................42 4.3.1 Validate Commitment .....................................................................................42 4.3.2 Due Diligence Assessment.............................................................................42 4.3.3 Improvement Opportunities ............................................................................43 4.3.4 Finalize Partner Model....................................................................................43 4.3.5 Confirm Business Case ..................................................................................43

4.4 Contract Negotiations Phase .........................................................................44 4.4.1 Deal Structuring..............................................................................................44 4.4.2 Implementation Planning ................................................................................44 4.4.3 Formalize Agreement .....................................................................................44 4.4.4 Finalize and Sign Contract .............................................................................44

4.5 The Payroll Project.........................................................................................46 4.6 Decision Points ..............................................................................................47 4.7 Evaluation Criteria..........................................................................................48

4.7.1 Proposal Format Guidelines ...........................................................................48 4.7.2 JSRFP (Phase 1) Evaluation Criteria .............................................................49

4.8 Proponent Response Guidelines for Stage 1.................................................54 4.8.1 References .....................................................................................................54 4.8.2 Evaluation Criteria ..........................................................................................54

APPENDICES ........................................................... 57 Appendix A - Sample Letter .................................................................................................57 Appendix B - Receipt Confirmation Form ............................................................................58 Appendix C - Joint Solution Definition Agreement ...............................................................59 Appendix D - List of Documents ..........................................................................................61 Appendix E - Business Processes in Detail .........................................................................62 Appendix F - The Payroll Project ........................................................................................74 Appendix G - Stakeholders ..................................................................................................75 Appendix H – Protection of Privacy .....................................................................................79

..........................................................................83 Appendix I - Ministry Organizational Chart

JSRFP# SATP-033

1 JOINT SOLUTION REQUEST FOR PROPOSAL INTRODUCTION

1.1 PURPOSE OF THE JSRFP AND JSP

The purpose of this JSRFP is to identify Proponents with the optimum combination of the capability, capacity, and commitment to be a Partner with the Ministry and jointly create a Solution that will achieve the best business outcomes for the Payroll Operations & Information Management Project. The Project is one of the key alternative service delivery initiatives of the Province.

The Joint Solution Procurement (JSP) process is a multi-stage procurement process that can be illustrated by two major parts. The first part is the JSRFP process, which is designed to qualify and short-list Proponents primarily on their capacity, capability and commitment to be a Partner with the Ministry in the Payroll Operations & Information Management Project. The second part of the JSP involves three distinct phases consisting of a Joint Solution Definition Phase, a Due Diligence & Negotiation Phase and a Contract Negotiation Phase, which will culminate in a long-term commercial arrangement being entered into with the Province.

The Ministry intends to approach the Project without any pre-conceived notions of how the Ministry’s business goals will be met. The Ministry will work closely with the Preferred Proponents, through the Joint Solution Definition Phase, in determining how to best meet the Ministry’s business goals for the Project.

The JSRFP described in this document should result in two Preferred Proponents being identified and invited to enter into the Joint Solution Definition Phase with the Province. Subsequent phases of the JSP will enable the Ministry to negotiate and select a Partner to manage the Province’s Payroll Operations & Information Management Division. POIM’s mandate is to manage all corporate human resource/payroll applications.

In addition, the Successful Proponent may be invited, during the term of any Final Contract, at the Ministry’s discretion, to propose and provide alternative service delivery for Payroll Services.

The mechanism to achieve a desirable business outcome for the Ministry is expected to be innovative and to reflect “best-in-class” corporate solutions. The Joint Solution Definition Phase of the JSP allows for the joint development of a Solution and an evolving approach that will maximize the business outcomes. The form of deal structure to give effect to the Solution (e.g. joint venture, transitional joint venture, outsource, etc.) will depend on the results of the Joint Solution Definition Phase. A commercial arrangement resulting from the JSP process is expected to range between seven and ten years in duration.

The Partner will demonstrate exceptional ability to deliver on both the management of corporate human resource/payroll information systems and (potentially) the services required to meet the Ministry’s service level agreements.

Page 1

JSRFP# SATP-033

1.2 DEFINITIONS AND ADMINISTRATIVE REQUIREMENTS

1.2.1 Definitions l) “JSRFP” means this document relating to the Proponent Qualification Phase of the JSP;

Throughout this JSP, the following definitions will apply: m) “Letter of Intent” means the letter of intent that will

be entered into by the Successful Proponent prior to the Due Diligence & Negotiation Phase; a) “3C’s” means, capacity, capability, and

commitment to jointly achieve the best business outcomes for the POIM Project and the Payroll Project;

n) “Ministry” means the Ministry of Management Services;

o) “must”, or “mandatory” in respect of evaluation criteria means a requirement that must be met in order for a Proposal to receive consideration;

b) “BC Public Service Agency” means the human resource service delivery organization of the Province, as more particularly described in Appendix G; p) “Partner” means the Successful Proponent who

enters into the Final Contract with the Province and works with the Ministry in a strategic relationship, but not necessarily a legal partnership, in achieving the Ministry’s goals for the Project;

c) “Business Alliance” means a mutually beneficial relationship between the Ministry and the Partner;

d) “Concept” means the high level concept relating to the Project presented orally and in writing by a Proponent to the Province during Stage 3 of the Proponent Qualification Phase; q) “Payroll Contract” means the written agreement

executed by the Province and the Partner for Payroll Services; e) “Contract Negotiation Phase” means Phase 4 of

this JSP which commences upon the Province indicating that it is prepared to start negotiation of the Final Contract with the Successful Proponent and ends upon the execution of the Final Contract;

r) “Payroll Operations & Information Management Division” or “POIM” means the Division within the BC Public Service Agency under an informal Memorandum of Understanding with the Ministry, responsible for corporate human resources and payroll applications as defined within this JSRFP;

f) “Core Application” means PeopleSoft human resource, payroll and benefits administration modules, more particularly described in section 2.3.2; s) “Payroll Project” means the alternative service

delivery of Payroll Services; g) “Due Diligence & Negotiation Phase” means Phase

3 of this JSP which commences upon an invitation being extended by the Province to the Successful Proponent to enter into Phase 3 of this JSP and ends upon the Province indicating that it is prepared to start negotiation of the Final Contract with the Successful Proponent;

t) “Payroll Services” means the line of business in Solutions BC which is responsible for payroll and leave data entry, payroll related human resources business processes, and potentially in the future, benefits administration as defined within this JSRFP;

u) “PeopleSoft Application” means the Core Application and the Specific Software licensed from PeopleSoft and described in section 2.3.3 a);

h) “Final Contract” means the written agreement executed by the Province and the Successful Proponent resulting from completion of the Contract Negotiation Phase for the POIM Project; v) “Preferred Proponents” means the Proponents who

are invited by the Province to advance to the Joint Solution Definition Phase and who sign the Joint Solution Definition Agreement;

i) “Joint Solution Definition Agreement” means the agreement that will be entered into by the Province and each Preferred Proponent prior to the Joint Solution Definition Phase which will include the provisions described in Appendix C;

w) “POIM Project” or the “Project” means the Payroll Operations & Information Management Project execution and implementation of alternative service delivery Solution for POIM by the Business Alliance;

j) “Joint Solution Definition Phase” means Phase 2 of this JSP which commences upon invitations being extended to Preferred Proponents to enter into Phase 2 of this JSP and ends upon an invitation being extended by the Province to one of the Preferred Proponents to become the Successful Proponent;

x) "Proponent" means the entity that submits, or intends to submit, a Proposal in response to this JSRFP, and where the Proposal consists of a joint submission or contemplates the use of subcontractors, then the Proponent will be the individual entity that acts as the lead entity

k) “JSP” means the Joint Solution Procurement Process for the Project;

Page 2

JSRFP# SATP-033

responsible for the Proposal, as more particularly described in section 1.2.2.25 of this section 1.2;

mm) “Workshops” means the working sessions between a Proponent and the Ministry during Stage 2, as more particularly described in section 4.1.4; y) “Proponent Qualification Phase” means Phase 1 of

this JSRFP which commences upon the release of this JSRFP and ends upon invitations being extended by the Province to Preferred Proponents to enter into the Joint Solution Definition Phase;

1.2.2. Joint Solution Request for Proposal Process – Proponent Qualification Phase

z) “Proposal” means the written submission required for Stage 1 of the Proponent Qualification Phase;

1.2.2.1 Terms of the Proponent Qualification Phase

This JSP will consist of four phases: the Proponent Qualification Phase, the Joint Solution Definition Phase, the Due Diligence & Negotiation Phase and the Contract Negotiation Phase. The following terms apply to the Proponent Qualification Phase of this JSRFP. In consideration of the Province’s preparation of this JSRFP document, in conducting the JSRFP and the Proponents’ opportunity to submit a Proposal, each Proponent hereby acknowledges and agrees by submitting a Proposal in response to this JSRFP that the Proponent is accepting and agreeing to be bound by the terms of this JSRFP. Provisions in a Proposal that conflict or are inconsistent with any of the terms of this JSRFP shall be of no force or effect.

aa) “Province” means Her Majesty the Queen in Right of the Province of British Columbia as represented by the Ministry;

bb) “should” or “desirable” in respect of evaluation criteria means a requirement having a significant degree of importance to the objectives of the JSRFP;

cc) “Software Contracts” means the software license agreements between the Province and the various Software Licensors in respect to the Specific Software and the Core Application;

dd) “Software Licensors” means the licensors of the Specific Software and the Core Application to the Province under the terms and conditions of the Software Contracts; 1.2.2.2 Proponent Qualification Phase

Process ee) “Solution” means the method and framework that is developed during the Joint Solution Definition Phase in response to the Ministry’s business goals and desired outcomes for the POIM Project;

The Proponent Qualification Phase will consist of three stages:

(a) Stage 1 – During this stage Proponents will submit written Proposals in accordance with the terms of this JSRFP. The Province will evaluate each Proposal. The Province will select up to four Proponents to advance to Stage 2 of the Proponent Qualification Phase based upon the Province's evaluation of the Proposals;

ff) “Solutions BC” means the shared services organization within the Ministry;

gg) “Specific Software” means the applications described in section 2.3.2;

hh) “Stage 1” means the initial stage of the Proponent Qualification Phase during which written Proposals will be created by Proponents and evaluated by the Province; (b) Stage 2 – During this stage Workshops will be

held with up to four Proponents that have advanced from Stage 1. Subject to the terms of this JSRFP, each of the Proponents from Stage 2 will advance to the Stage 3 of the Proponent Qualification Phase; and

ii) “Stage 2” means the second stage of the Proponent Qualification Phase during which up to four Proponents will be asked to participate in separate Workshops with the Province;

jj) “Stage 3” means the final stage of the Proponent Qualification Phase during which the Proponents who participated in the Workshops will present their Concepts to the Province, both orally and in writing;

(c) Stage 3 - During this stage each of the Proponents who have advanced from Stage 2 will present their Concepts to the Province. The Province will initially select up to two Proponents who will become Preferred Proponents and will advance to the Joint Solution Definition Phase. kk) “Subcontractors” mean entities retained by the

Partner to perform certain services in respect of the Final Contract; Neither the acceptance by the Province of any

Proposal, the conducting of any Workshop nor the receipt by the Province of any Concept in any format whatsoever shall under any circumstances cause any express or implied commitment or undertaking on the part of the Province to advance any Proponent to the next Stage or Phase, to receive any presentation from a Proponent, to

ll) “Successful Proponent” means the Preferred Proponent who is invited by the Province to advance to the Due Diligence & Negotiation Phase and who signs a Letter of Intent;

Page 3

JSRFP# SATP-033

acquire services, to undertake any form of transaction or to continue the JSRFP process.

1.2.2.3 Receipt Confirmation Form Proponents are advised to fill out and return the attached Receipt Confirmation Form immediately. Only those Proponents who return a fully completed Receipt Confirmation Form will be notified of any subsequent information relating to this JSRFP, including any changes made to this document. Subsequent information will be distributed by the Province to a Proponent in accordance with the method authorized on the Proponent’s Receipt Confirmation Form.

Notwithstanding the foregoing, Proponents who have returned the Receipt Confirmation Form may be notified that certain additional information, including that listed in Appendix D, will only be made available to Proponents who return to the Province a signed Confidentiality Form (which will be provided by the Province). Where such notification is given to the Proponents, then only those Proponents who return a fully signed Confidentiality Form will be provided with the additional information. It is intended that the documents described in Appendix D will be picked up by the proponent’s courier and additional confidential documents may be made available for viewing in a Restricted Documents Room that may be established by the Province in Victoria. The responses to any enquiries regarding such additional information will be provided by email or facsimile at the Province’s discretion.

1.2.2.4 Enquiries All enquiries related to this JSRFP are to be directed, in writing, to the person set forth below. Information about this JSRFP obtained from any other source is not official and should not be relied upon. Enquiries and responses will be recorded and may be distributed to all Proponents at the Province’s option.

Huan Ngo, Manager, Commercial Services Strategic Acquisitions & Technology Procurement Branch E-Mail: [email protected] Fax: (250) 387-1399

The Province has no obligation to ensure consistency between each of the Workshops or each of the Concept presentations. Accordingly, during Stages 2 and 3, questions and responses exchanged between the Province and one Proponent may differ from questions and responses exchanged between the Province and any other Proponent. The Province does not intend to share the questions or answers that are exchanged with a Proponent during Stages 2 and 3 with any other Proponents; however, if a Proponent makes a request for information during a Workshop that the Province determines to be a

request for basic information that should be made available to all Proponents, then the Province, in its sole discretion, may distribute that basic information to all Proponents participating in the Workshops.

1.2.2.5 Closing Date and Time Ten complete hard copies of the Proposal and one electronic copy on CD must be delivered by hand or courier, and received prior to 2:00 PM, Pacific Time, on November 6, 2003 at:

Procurement Services Ministry of Management Services 102 – 3350 Douglas Street Victoria, B.C., V8Z 7X9

Attention: Huan Ngo

Proposals must not be sent by mail, facsimile or email. Proposals and their envelopes should be clearly marked with the name and address of the Proponent, the JSRFP number, and the project name.

1.2.2.6 Late Proposals Proposals will be marked with their receipt time at the closing location described in section 1.2.2.5. Late Proposals will not be accepted and will be returned to the Proponent. In the event of a dispute, the Proposal receipt time as recorded at the closing location will prevail whether accurate or not.

1.2.2.7 Signed Proposals The Proposal must be signed by a person authorized to sign on behalf of the Proponent and to bind the Proponent to the terms of this JSRFP and any statements made in response to this JSRFP. The Proponent should ensure that its Proposal includes a letter or statement(s) substantially similar in content to the sample Proposal Covering Letter provided in Appendix A.

1.2.2.8 Changes to Proposals By submission of a clear and detailed written notice, the Proponent may amend or withdraw its Proposal prior to the closing date and time. The Proponent cannot change the wording of its Proposal after closing and no words or comments will be added to the Proposal after closing unless requested by the Province for purposes of clarification, or to correct minor defects pursuant to section 1.2.2.16 below.

1.2.2.9 Eligibility A Proposal will not be evaluated if the Proponent’s current or past corporate or other interests may, in the Province’s opinion, give rise to a conflict of interest in connection with the Project. Subcontracting to any firm or individual whose current or past corporate or other interests may, in the Province's opinion, give rise to a conflict of interest in connection with the Project, will not be permitted. The Province may also remove a

Page 4

JSRFP# SATP-033

Proponent from any later stage of the Proponent Qualification Phase where the Province determines, in its opinion, that such Proponent's current or past corporate or other interests may give rise to a conflict of interest in connection with the Project. Any such determination by the Province of a conflict of interest shall be final and shall be based upon such information as the Province in its sole discretion determines to be relevant.

1.2.2.10 Evaluation Committee A committee formed by the Province will undertake the evaluation of Proposals, the committee may include employees and contractors. The evaluation committee may consult with such technical advisors, including financial, legal, operating, marketing and other experts, as the evaluation committee may, in its discretion, determine to be necessary. The Province in its sole discretion may expand the evaluation committee during Stages 2 and 3.

1.2.2.11 Evaluation The evaluation committee will check Proposals against the mandatory criteria. Proposals that do not meet all of the mandatory criteria will be rejected without further consideration. Proposals that do meet all of the mandatory criteria will also be evaluated against the desirable criteria. The Workshops and Concepts will be evaluated against the criteria described in this JSRFP.

1.2.2.12 Debriefing At the conclusion of Stage 1, Proponents who are not invited to advance to Stages 2 and 3 of the Proponent Qualification Phase will be so notified in writing, and may then request a debriefing meeting with the Province, which will be scheduled by the Province after the Preferred Proponents have been announced. Proponents who will not be invited to participate in the Joint Solution Definition Phase will be so notified in writing at the end of the Proponent Qualification Phase, and may then request a debriefing meeting, which will be scheduled by the Province following the conclusion of the Contract Negotiation Phase.

1.2.2.13 Proponent Expenses Proponents are solely responsible for their own expenses in preparing a Proposal and for participating in any or all Stages of the Proponent Qualification Phase including, without limitation, if the Province elects to reject all Proposals or to not ask any Proponents to advance to the Joint Solution Definition Phase. In no event will the Province or any of its employees, representatives or contractors be liable to any Proponent for any claims, whether for costs or damages incurred by the Proponent in preparing the Proposal, or in preparing for or participating in Stages 1, 2 or 3, or any Phase of this JSP or the Payroll Contract, or for any loss of opportunity, loss of anticipated

profit in connection with any Final Contract or Payroll Contract (whether or not the Final Contract or the Payroll Contract is awarded to the Proponent or at all), or for any other loss, damage or claim of any kind whatsoever relating in any way to all or any portion of the JSRFP of the JSP.

1.2.2.14 Limitations of Damage Further to the preceding paragraph, the Proponent, by submitting a Proposal, agrees that it will not claim for any loss, costs or damages, for whatever reason, relating to the Final Contract or the Payroll Contract (whether or not the Final Contract or Payroll Contract is awarded to the Proponent or at all), or in respect of the Proponent’s preparation for or participation in, or failure to be invited to participate in, any one or more Stage or Phase of this JSRFP or JSP or the Payroll Contract. If, contrary to the terms of this JSRFP the Province should be held liable for any reason whatsoever (whether in contract or in tort) for any of the foregoing losses, costs or damages, then such losses, costs or damages shall not, in any circumstances, exceed an amount equivalent to the reasonable costs incurred by the Proponent in preparing its Proposal.

1.2.2.15 Right of the Province to Check References

The Province reserves the right to verify a Proponent’s references at any Stage in the Proponent Qualification Phase.

1.2.2.16 Correction of Minor Defects The Province reserves the right, in its sole discretion, to correct minor defects in the Proposals or Concepts.

1.2.2.17 Acceptance of Proposals This JSRFP should not be construed as an agreement to purchase goods or services. The Province is not bound to enter into any contract with any Proponent including, without limitation, any Proponent who submits the lowest priced Proposal or Concept. Proposals and Concepts will be assessed in light of the evaluation criteria described in this JSRFP. The Province will be under no obligation to receive further information, whether written, oral, or otherwise, from any Proponent at any Stage in the Proponent Qualification Phase.

1.2.2.18 Restriction on Contact/No Lobbying Proponents must not attempt to communicate directly or indirectly with any employee, contractor or representative of the Province, including the evaluation committee or with members of the public or the press, about the project described in this JSRFP, during the Proponent Qualification Phase, other than as expressly directed or permitted by the Province.

Page 5

JSRFP# SATP-033

1.2.2.19 No Contract 1.2.2.24 Working Language of the Province By submission of a Proposal, Proponents agree that no Proponent will acquire any legal or equitable rights or privileges relative to the Project or the Payroll Project described in this JSRFP prior to the full execution of a Final Contract. Further, the Province reserves the right not to enter into a Final Contract or Payroll Contract with any of the Proponents.

The working language of the Province of British Columbia is English and all responses to this JSRFP must be in English.

1.2.2.25 Proposals with Joint Submissions or Subcontractors

A Proponent may submit a Proposal consisting of a joint submission by the Proponent together with one or more other entities, or which proposes the use of Subcontractors in the Final Contract. In either case, the Proponent will be the only party responsible to the Province for the Proposal, will act as the liaison and main contact with the Province in respect of the Proposal, this JSRFP and the JSP, and will take overall responsibility for the successful inter-relationship among the Proponent and the other entities involved in the joint submission, or contemplated as Subcontractors, as the case may be. The Province will have no obligations with respect to those other entities or Subcontractors under this JSRFP, the JSP, the Final Contract or otherwise.

1.2.2.20 Liability for Errors While the Province has used considerable efforts to ensure an accurate representation of information in this JSRFP, and provided pursuant to this JSP, the information is supplied solely as a guideline for Proponents. The information is not guaranteed or warranted to be accurate by the Province, nor is it necessarily comprehensive or exhaustive. Nothing in this JSRFP is intended to relieve Proponents from forming their own opinions and conclusions with respect to the matters addressed in this JSRFP.

1.2.2.21 Modification of Process or Project 1.2.3. JSP Process – Joint Solution The Province reserves the right to modify the JSP,

this JSRFP or the Project at any time in it sole discretion. This includes, but is not limited to, the right to cancel this JSRFP at any time, to extend the closing time, change the number of Proponents asked to advance to any Stage of this JSRFP or any Phase of this JSP, re-commence a Stage or Phase of this JSRFP or JSP, alter the Project requirements or make other changes to the process or to a term set out in this JSRFP. If a modification is communicated to the Proponents prior to closing time, it is the Proponents’ sole responsibility to ensure that they make appropriate use of that information.

Definition Phase Prior to participation in the Joint Solution Definition Phase, the Province will enter into a Joint Solution Definition Agreement with each of the Preferred Proponents, which will include the provisions described in Appendix C as well as such other provisions as may be determined by the Province, in its discretion, to be necessary, desirable or useful.

1.2.4. JSP Process – Due Diligence & Negotiation Phase

The Due Diligence & Negotiation Phase will substantially follow the process described in section 4.3. 1.2.2.22 Ownership of Proposals

All documents, and electronic media, including the Proposals and Concepts, submitted to the Province become the property of the Province. The Province may make such copies as the Province may require for evaluation purposes. All Proposals and Concepts will be received and held in confidence by the Province, subject to the provisions of the Freedom of Information and Protection of Privacy Act and this JSRFP. The Province does not intend to share a Proponent’s Concept with the other Proponents; however, the Province will in no way be liable or responsible if another Proponent subsequently suggests a framework or idea similar to one contained in a Concept that was originally submitted by another Proponent.

1.2.5. JSP Process – Contract Negotiation Phase

The Contract Negotiation Phase will substantially follow the process described in section 4.4 below.

1.2.6. PeopleSoft Participation If a Proponent or any other entity involved in a joint submission with that Proponent or contemplated as a Subcontractor of that Proponent is PeopleSoft, then by submitting a Proposal in response to the JSRFP:

a) the Proponent consents, on its own behalf,

and as agent for and behalf of PeopleSoft, to the Province disclosing, licensing, transferring, assigning or otherwise authorizing the use of the PeopleSoft Application to or by such Proponent or by any of the other Proponents responding to this JSRFP, including any other entities involved in a joint submission with those other Proponents or contemplated as

1.2.2.23 Use of JSRFP Document No portion of this document, nor any information supplied by the Province in relation to this JSRFP, may be used or disclosed by a Proponent in any manner other than for the sole purpose of submitting a Proposal and participating in the JSP.

Page 6

JSRFP# SATP-033

Subcontractors of those other Proponents; and 1.2.7. Contacting PeopleSoft

After the submission of the Proposals, the Proponents must not contact PeopleSoft regarding this Project during any Phase of the JSP without first obtaining the prior written consent of the Province. The Proponents further agree they will not enter into any discussions with PeopleSoft with intent to preclude other Proponents from gaining access to the PeopleSoft Application.

b) the Proponent represents and warrants that prior to the submission of the Proposal it has acquired all necessary written consents, acknowledgements and agreements from PeopleSoft in order to comply with this provision and that this provision shall be deemed to be a full and complete consent to the disclosure, licensing, transfer or assignment of the Core Application notwithstanding any other form of consent or other provision set forth in the applicable Software Contract.

Page 7

JSRFP# SATP-033

1.3 MINISTRY OVERVIEW 1.3.1 Overview

The Ministry oversees and ensures that British Columbians have access to the government of British Columbia when and how they need it. It strives to enhance service delivery by including more convenient citizen centred and integrated services.

The Ministry plays a key role in the implementation of the Province's priorities. Its job is to bring down the costs of the Province's internal operations so that resources can be freed up for direct services to the taxpayers of British Columbia. Its main focus is to implement a shared services delivery model for the Province and expand it to the broader public sector. This initiative will eliminate administrative duplication and reduce costs while providing quality service in the areas of finance, administration, information technology, procurement and other common services.

1.3.2

1.3.3

1.3.4

Vision and Mission

The Ministry’s Solutions BC Vision is to: Excel in the provision of innovative, responsive, cost-effective and integrated services to the public sector.

The Ministry’s Solutions BC Mission is: To provide shared support services for public sector organizations to better serve the people and businesses of British Columbia.

Ministry’s Solutions BC Goals The following list represents the Ministry’s Solutions BC goals: • Reduce unit and overall shared services costs; • Be accountable to our clients; and • Maintain a high level of client satisfaction.

Ministry Organization The Ministry was created primarily to provide key corporate support services to the public sector by implementing a "shared services" model. Shared services refers to the practice of business units within organizations sharing a common set of required support services rather than having a series of support functions duplicated in each business unit. Costs of shared services are reduced over time through a combination of efficiencies from consolidation, business streamlining and related policy change, and technological improvements. The Ministry's Common Business Services Division, Common Information Technology Services Division, and Corporate Services Division comprise the shared services organization, Solutions BC, which was launched in April 2003. The Ministry’s clients and customers include:

• Provincial ministries; • Crown corporations; • Federal and other provincial agencies; • Schools and universities; • Regional Health Authorities; • Municipalities; and • General public.

Page 8

JSRFP# SATP-033

1.3.5 The Project

The Province intends to enter into a Final Contract with a long-term Partner for the POIM Project, whose mandate is the maintenance, production and development of corporate human resource/payroll applications. As further described in section 4.5, in the event the Province, in its sole discretion, decides to proceed with the Payroll Project, the Province may enter into contract negotiations and enter into a Payroll Contract for the delivery of Payroll Services.

Project Milestones

Anticipated Completion Date

Post JSRFP to BC Bid October 9, 2003 Proponents meeting October 16, 2003 JSRFP closes November 6, 2003 Evaluate Proposals November 17, 2003 Workshops December 05, 2003 Proponents’ Concept presentations December 11, 2003 Select Preferred Proponents TBD Joint Solution Definition Phase:

• • • • •

Business Process Workshops Technology & Policy Workshops Economic Model & Deal Structure Workshops Final Solution Workshops Concept presentations

TBD

Joint Solution evaluation & select Successful Proponent TBD Due Diligence & Negotiation TBD Contract Negotiation TBD Enter into Final Contract TBD Transition & stabilization TBD The Payroll Project & Payroll Contract (if approved)

Application Infrastructure

Corporate HR/Payroll Applications

PayrollServices

Human Resources

Out of Scope

POIM Project

Payroll Project Separate Treasury Board approval required

Page 9

JSRFP# SATP-033

1.3.6 The Ministry’s Commitment to the Project

The Ministry has assembled a core team of experts who will be dedicated to the Project and who are supported by three Project sponsors at the highest level in the Ministry’s organization, being the Ministry’s executives and representatives of the Province. These Project sponsors will adopt an increasingly dedicated role in the JSP through subsequent phases as described in this document.

The Ministry has assigned a member of POIM to oversee the Project on a full-time basis. The Deputy Minister is committed to providing the time necessary to actively participate in the selection process and all other phases of this JSP. The core team already assembled is comprised of senior level personnel with extensive experience in the management of major projects and in-depth understanding of POIM’s operations within the Ministry. Further, key resources from the business and services side of the Province will be hand-picked and assigned full-time to the Project. Provision has been made for back-filling and other supplemental activities and resources to ensure business continuity throughout the Project.

Space intentionally left blank

Page 10

JSRFP# SATP-033

2 DEFINING THE OPPORTUNITY

2.1 OVERVIEW, BUSINESS ISSUES AND OBJECTIVES

2.1.1

Overview

The BC Public Service Agency provides direction and consultation for the human resource applications for the Province. POIM, a division within BC Public Service Agency, is responsible for the maintenance, production and development of corporate human resources applications. POIM services are delivered under an informal Memorandum of Understanding between the Ministry and the BC Public Service Agency; thereby, consolidating application and IT services. Solutions BC is responsible for Payroll Services, which includes payroll and leave data entry. Payroll-related human resources business processes will be transitioning to Payroll Services at a future date. POIM and Payroll Services are under a single leadership of the Executive Director of Payroll Services & Corporate Human Resources Applications, who reports to the Assistant Deputy Minister, Common Business Services in Solutions BC.

Ministry of Management Services

Payroll Services

in Solutions BC

Unionized Employees

Executive Director, Payroll Services& Corporate HR Applications

POIM

in BC Public Service Agency

via MOU with Solutions BC

Employees Excluded from Union

Assistant Deputy Minister,Common Business Services

The Province is committed to investigating new ways of conducting business in order to optimize efficiency and effectiveness. The Ministry implemented Solutions BC to provide shared services including Common IT Services, Corporate Services and Common Business Services (see

Page 11

JSRFP# SATP-033

Appendix H). The Common Business Services comprises of POIM, Payroll Services, Procurement & Supply Services, Strategic Acquisition & Intellectual Property, and Corporate Accounting System. Solutions BC would like to provide these services to the broader public sector in the future. To assist with these objectives, the Ministry is presenting this opportunity for Proponents to submit Proposals to assist in the delivery of payroll and human resource application services, which currently are the mandate of POIM. This JSRFP seeks: •

•

1. •

•

• •

2.

3. • •

4. • •

alternative service delivery Solutions for the application maintenance, production operations and development of the Province's corporate human resource & payroll applications as described in this JSRFP, including PeopleSoft, Kronos, Cognos, and smaller custom developed JAVA applications; and Proponents’ capability, capacity, and commitment to deliver the POIM Project and potentially the Payroll Project.

POIM is responsible for all corporate human resource/payroll applications. The Province primarily uses PeopleSoft 8.0 SP1 (human resources, payroll, and base benefits administration). The PeopleSoft Application services over 40 distinct ministries, agencies, crown corporations and other clients. Operationally, the PeopleSoft Application is used to provide payroll services for approximately 30,000 employees, and has approximately 20,000+ online users across the Province. In addition to the PeopleSoft Application, there are smaller custom developed corporate human resources applications, which include: e-Classification, Disability Data Management Application, Workforce Adjustment etc.. A complete list of POIM managed corporate human resources applications (non-PeopleSoft) can be found in Appendix D - List of Documents, Custom Developed Applications. Today, POIM includes four key areas:

Application Management is responsible for: Production activities such as daily and bi-weekly payroll runs, generating nightly interface files etc.; Maintenance activities such as updating application with bundles, fixes, tax changes and new business rules; Management of application infrastructure; and Application security management.

Client Services is responsible for all outward facing application related activities: • Contact Center/Help Desk for payroll (30,000 customers) and corporate documentation of

application and business processes; • Training on payroll and human resources business processes, as they pertain to the

applications; • Communication and change management for division activities (e.g. implementation of

automated time capture & scheduling across the Province); • Reporting support; and • Security administration of corporate human resources applications.

Development Projects

Development projects in progress; and Development projects planned.

Management Operations is responsible for internal related activities such as:

Corporate pay and leave; and Business Operations which manages:

Page 12

JSRFP# SATP-033

o budget management; o payroll administration standards; o payroll accounting activities; o client billings; and o performance measures, activity based costing and balanced scorecard (in progress).

2.1.2

• • •

• •

•

•

2.1.3

•

•

• • • •

Business Issues There are a number of business issues which the Province would like to see addressed by:

Reducing production operations & maintenance costs; Reducing development costs; Enabling the Province to extract value from the unutilized PeopleSoft and Kronos software licenses (approximately 18,000 at time of posting the JSRFP); Allowing the Province to focus on core business; Transferring service delivery and systems implementation projects to the Successful Proponent; Exploring the potential future opportunity of transferring Payroll Services to the Partner who might own the entire process, end-to-end; and Create a better career path for employees offered positions with the Partner.

POIM and Payroll Services Objectives The following lists the current operational goals of POIM and Payroll Services:

In partnership with the clients, develop business plans that deliver effective human resources and payroll solutions; Deliver and maintain human resources and payroll solutions that best meet the needs of the clients; Process payroll for the clients with results that are on time, accurate and consistent; Always make the customers the highest priority; Develop and implement ongoing plans to grow the business; and Provide optimal client support to ensure they can maximize potential benefits from the human resources and payroll solutions.


Page 13

JSRFP# SATP-033

2.2 BUSINESS PROCESS

2.2.1 Background

In 1993 the Province began an assessment for a corporate human resource and payroll system. The PeopleSoft human resources/payroll/benefits administration was purchased in December 1994. In December 1995, the application went into production for basic human resources and payroll functions. This one application, entitled CHIPS (Corporate Human Resource Information & Payroll System) replaced 66 different human resources, leave, full time employee and payroll systems across the Province. The application was heavily customized. The Public Service Employee Relations Commission was responsible for the PeopleSoft Application. In 1996 there was an upgrade to increase the human resource functionality. These functions included training & development, recruitment and labour relations. In 1998, the application was upgraded to PeopleSoft 7.0, without increased functionality. In May 2000, the Public Service Employee Relations Commission assumed the responsibility for the leadership of payroll standards. This change of responsibility allowed the Province to combine the business of payroll and corporate human resource and payroll applications into one division, the Payroll Operations & Information Management Division. At this time, there were approximately 230 employees involved with payroll services in ministries and customers being served by the PeopleSoft Application.

In 2001, the business process flow for payroll data entry activities were standardized and documented. There is ongoing work to ensure compliance. Workflow originating from program areas is managed by individual ministries and has not yet been standardized. On February 13, 2002 the POIM implemented PeopleSoft 8, human resources, Base benefits and payroll, without an increase to functionality. There was an approximate 20% reduction of customizations at this time. However, the application remains heavily customized. The modules in use include: Payroll, Administer Base Benefits, Administer Workforce, Position Management, Recruitment, Training Administration and Labour Relations. After the PeopleSoft 8, SP1 implementation, work began on leveraging the application for employee self-service. The preliminary work consisted of a security review and a technical architecture assessment.

Page 14

JSRFP# SATP-033

In August 2002, a Request for Proposal was issued for a PeopleSoft Development Partner. In December 2002, this contract was awarded to IBM, and the development work started (see section 2.4.1 for more information). In February 2003, Pay Period Realignment project was introduced. This allowed a one-week delay between the pay period end date and the payday. In March 2003, a pilot for employee self service of paycheque, personal information and leave balances was initiated. This pilot was successful and today approximately 20,000+ employees use the employee self-service function. In July 2003, the Multi-Client Positioning project was completed. This project implemented business units and reduced the payrun timeframe. The goal of this project was to enable concurrent processing of payroll for multiple clients and to shorten the payroll production timeframe. Implementation of human resources software for the production of organization charts is scheduled for pilot implementation in October 2003.

There are a number of development projects currently underway or planned. Some examples include (subject to funding availability and client approval): • Time capture and scheduling (a Kronos Workforce Timekeeper implementation in progress); •

•

•

•

Implementation of Cognos as a small reporting warehouse (3 cubes) for limited use within the BC Public Service Agency is scheduled for October 2003; Various smaller enhancements to applications (e.g. Records of Employment, improved reporting) - in progress; PeopleSoft benefits administration (a change from base benefits plus the implementation of employee self service) - planned; and e-recruitment with resume processing and manager functionality – client approval stage.

The next upgrade to PeopleSoft human resources/payroll/benefits has not been confirmed at the time of JSRFP release. The timing of the next PeopleSoft upgrade is under discussion as a result of the new support policy issued by PeopleSoft at the 2003 Connect Conference. POIM delivers high quality services to clients. These services include: payroll operations, application management, client services, business operations, application development and account management. The division is recognized as a leader among its PeopleSoft peers.


Page 15

JSRFP# SATP-033

2.2.2 Organizational Structure

AccountManager

DirectorApplication Management

DirectorClient Services

ApplicationDevelopment

DirectorBusiness Operations

DirectorPayroll Services

Executive Director

POIM consists of the following areas of business: • • • •

Management Operations – Purple; Application Management – Grey; Client Services – Blue; and Application Development – Green.

Note – the Executive Director is also responsible for the Payroll Services (Yellow) area, which is not in scope at this time.

2.2.3

2.2.4

• •

2.2.5

• • •

2.2.6

•

•

POIM Project - In-Scope Business Processes

The POIM business processes described in Appendix E are in-scope. The final determination of in-scope processes will be defined during the Joint Solution Definition Phase of this Project.

POIM Project - Business Processes Under Consideration The following POIM funded areas are under consideration for the POIM Project. They have a direct connection with the Payroll Project. Some functions in these areas may be required to remain with the Province pending the Joint Solution outcome:

Payroll Accounting; and Corporate Payroll and Leave.

Payroll Project - Business Processes

The Payroll Project will potentially include the following business processes as further described in Appendix F:

Payroll Services; Payroll related human resources transactions; and Benefits administration.

Out-of-Scope Business Processes The following business processes will not be included in the POIM Project or the Payroll Project:

Human resources – any administrative or professional human resources services provided by the BC Public Service Agency or client organization; Cash flow from payroll processing. This will remain the responsibility of the Province; and

Page 16

JSRFP# SATP-033

• Liaison with Labour Relations Division – the role informs Labour Relations and BC Public Service Agency on the payroll utilization of collective agreements, policies and practices.


Page 17

JSRFP# SATP-033

2.3 TECHNOLOGY 2.3.1

2.3.2

Application Overview

The Province uses the Core Application (see section 2.3.2). Additionally, the Province uses Specific Software, which is used in conjunction with the Core Application. The combination of the Core Application and the Specific Software which is licensed from PeopleSoft and described in section 2.3.3 a) is defined in this JSRFP as the “PeopleSoft Application”. Finally, the Province also uses custom developed applications.

Core Application The Core Application used by the Province is licensed by POIM and is defined as PeopleSoft human resources, payroll and benefits administration. The Core Application is currently implemented on: Version: PeopleSoft 8 Service Pack 1 Metadata/Tools: PeopleTools 8.18.05 Database: Oracle 9.2.03 Operating System: Sun Solaris 8

2.3.2.1 Core Application Metrics

Page 18

2.3.3

Note: the above metrics are current at time of release of the JSRFP.

Category Quantity Number of online users 20,000+ Number or employee self service users 20,500 Number employees paid bi-weekly 30,000 – 31,000 Percentage of direct deposit 98% Active employees in the application 30,965 Inactive employees in the application 43,761 Concurrent users 1,000 maximum Customized objects 2,258 Annual help desk calls & emails 13,500 Training courses delivered per year 117 Application availability 99.9% of scheduled access

Specific Software POIM has licensed the following Specific Software from the following Software Licensors: a) PeopleSoft collaborative applications: e-payroll, e-profile, e-recruit, e-benefits, resume

processing, e-recruit managers desktop, e-profile managers desktop, web-based learning assistant;

b) PeopleSoft additional licensed: extended enterprise and merant server express; c) Knowledge impact; d) HR Soft: HR Charter; e) Kronos: Workforce Timekeeper, Accruals, Connects;

JSRFP# SATP-033

f) Cognos: provided by Common IT Services, Solutions BC. g) Oracle: Database, provided by Common IT Services, Solutions BC; h) Quest: Benchmark, Foglight and T.O.A.D.; and i) Remedy: provided by Common IT Services, Solutions BC.

2.3.4

2.3.5

Software Contracts The Specific Software and the Core Application are subject to Software Contracts between the Province and the various Software Licensors. The Software Contracts may contain restrictions or prohibitions which interfere with a proposed Concept or Solution, such as restrictions on disclosing, licensing, transferring or otherwise authorizing the use of the Software Applications to or by a third party. Subject to the Province receiving applicable consents from the Software Licensors and subject to the Proponents agreeing to appropriate confidentiality requirements, the Province will make the Software Contracts (or portions thereof) available to the Proponents during the JSP at such times to be determined by the Province. The Proponents will be expected to indicate how they propose to deal with the Software Contracts in the context of their proposed Concept, Solution and any other communications or discussions with the Province during Stage 3 of the Proponent Qualification Phase as described in section 4.1.5 and the Joint Solutions Definition Phase as described in section 4.1.5. In addition, Proponents will be expected to indicate what (if any) commercial arrangement (such as consent of the Software Licensors) may be necessary with respect to the Software Contracts. Subject to 1.2.6 and 1.2.7, the Proponents will be responsible for negotiating and obtaining consent for the aforementioned commercial arrangements prior to delivery of a final Solution during the Joint Solution Definition Phase.

Custom Developed Applications

POIM manages a number of custom developed applications to support the business needs of the BC Public Service Agency.

Application: Various – see Appendix D Metadata/Tools: Java 2 Enterprise Edition, Jackarta Struts Database: Oracle 9.2.03 Operating System: Sun Solaris 8

2.3.5.1 Custom Developed Application Metrics

Category Quantity Number of online users 500 Annual help desk calls & emails 200 Training courses delivered per year 14 Performance availability 99.9%

Note: the above metrics are current at time of release of the JSRFP.

Page 19

JSRFP# SATP-033

2.3.6 Database Environments POIM manages the following database environments:

PeopleSoft Application:

Environment Size Production 70 GB Reporting 50 GB Archived 50 GB Business continuity 50 GB Quality assurance 50 GB Test environments 50 GB full size Test environments 8 GB small Development 8 GB PeopleSoft vanilla 3.5 GB Training 9.3 GB Custom Developed Application:

Environment Size Production: E-class 0.64 GB WFA 0.31 GB DDMA 1.35 GB Web Reporting 0.40 GB Test: Eclass 0.63 GB WFA 0.04 GB DDMA 133 GB Web Reporting 0.26 GB

2.3.7

2.3.8

Hardware The PeopleSoft Application and custom developed applications run in a Unix environment. The server standard is Sun (see document 2_1 entitled Hardware in Appendix D – List of documents).

Application Availability

The PeopleSoft Application is operated on a bi-weekly cycle defined as week 1 and week 2. The operations schedule is specific to each week. See 2_2 of Appendix D entitled production schedule for details of online availability. The payrun is scheduled on the Monday following week 2 starting at 16:30. PeopleSoft has been available 99.97% of the time or higher over the past 2 years as specified in the production schedules. Custom developed applications are available during business hours (8:00 AM – 5:00 PM, Monday – Friday). Availability is defined in service level agreements with business owners.

Page 20

JSRFP# SATP-033

2.3.9

2.3.10

Interfaces POIM manages the exports of PeopleSoft Application data to external systems. These data files may be text files that are electronically transferred to clients or to MVS generation data sets. The general ledger interface to the Province's financial application creates a file in Mercator format that is posted to the corporate chart of accounts. For a complete list of all the interfaces and interface clients see document 2_3 of Appendix D. The Partner will be responsible for successfully running and verifying all interfaces.

Security The information processed by BC Public Service Agency and Solutions BC is confidential as well as proprietary to the Province. All customers expect protection of the integrity of their data, as well as the access to the computing services. A strong commitment to ensuring confidentiality and data integrity of computing services necessitates a highly secure environment, where all users participate in the protection of information. Extensive security precautions are also implemented.

2.3.10.1 Physical Security

Access to buildings where the application servers reside are controlled, and access to the computer rooms are highly restricted. Server rooms are constantly monitored for temperature and humidity. If either threshold is reached support staff are automatically paged. Electrical power delivery is monitored and Unlimited Power Supply (UPS) protection is enabled to power servers down if the power interruption is of a long duration. Intrusion detection devices monitor access to the server rooms with the assistance of a security service.

2.3.10.2 Application Security

Perimeter security is provided by a firewall specific to the PeopleSoft Application, which trusts the range of IP addresses, supported by SpanBC. Access to PeopleSoft Application from outside the SpanBC network is not supported. Agencies using external networks must first access SpanBC via a secure VPN session. Authentication is conducted via the Province’s LDAP directory (IDIR). Authorization for PeopleSoft uses roles and role permission lists internal to the application. Fast security is used and HR Fastviews is run twice a day (noon and 5:00 PM) to implement any security or department changes. The tree audit option of the PeopleSoft system audit is used to monitor the security tree and is run daily. Authorization is done via the vanilla PeopleSoft authorization mechanisms. Encryption: from the end-user web browser to the web-server is handled via Secure Socket Layer (SSL).

Page 21

JSRFP# SATP-033

2.3.11 Business Continuation There is a detailed documented entitled the “Business Continuation Plan” for restoring the operation of all applications. The strategy is based on a nightly copy of the production database to a local alternative host site, which in turn is copied to an offsite location. In addition there is a scheduled cycling of backup tapes to an off-site secure storage area for PeopleSoft and other corporate human resources applications. This plan is given a “walk through” on a regular basis. The alternate business continuation location is in Victoria. This gives comfort in a small-localized disaster, however, should a wide area disaster occur, the facilities could be in jeopardy. Should a Business Continuation Plan require execution, emergency equipment would need to be purchased. There are 5 levels of priority for the business continuation of the human resources and payroll application. They are as follows:

Priority Recovery Objectives Time Frame #1 Processing payroll Within 2 days during the week of

production payrun Within 4 days during the week following a production payrun

#2 Re-establish the PeopleSoft Application to users

4 days

#3 Re-establish the PeopleSoft Application reporting database and Specific Software to users

5 days

#4 Re-establish development activities 6 days #5

Re-establish custom developed applications to users

10 days

2.3.12 Application Management

Application management is based on the standards set by the Information Technology Infrastructure Library – ITIL.

2.3.12.1 Production Control

The Production Operations Team monitors daily, bi-weekly, and monthly operations cycles to ensure that all recurring processes (batch jobs, backups etc.) are executed in an efficient manner with a goal of 100% accuracy. All jobs automatically email a log to the production team distribution list. In addition the facilities management contractors who provide 24/7 support are automatically paged if a process fails. Escalation is determined by the escalation matrix. For more detail on the Production Schedule, see document 2_2 in Appendix D.

Daily: Afternoon calc and evening batch jobs and backups. Bi-weekly: The payrun and 18 interfaces to external systems. Monthly: Data extracts to corporate reporting databases. Production Control Activities can be found in document 2_4 in Appendix D.

Page 22

JSRFP# SATP-033

2.3.12.2 Incident Management

The production operations team uses Remedy, a Customer Relationship Application (leased from the Common Information Technology Services division) to log all incidents. The incidents are monitored by the Operations Co-ordinator and assigned to specific staff who take corrective action(s). The status of all alerts is reviewed weekly. The section resolved over 400 production alerts (incidents, service requests) during 2002.

2.3.12.3 Problem Management

The production team identifies and logs any problems during on-line or batch operations. The problems are logged in Remedy, assigned to production staff and corrected. The operations co-ordinator provides quality control and all problems are reviewed at the weekly status meeting. If a change to any software or programs is required, a change request is created. Over 40 production problems (PeopleSoft Application and Custom Developed Applications) were resolved during 2002. Application bugs are logged with PeopleSoft’s Global Support Centre for resolution.

2.3.12.4 Change Management

A formal change management process is used for efficient and prompt handling of all changes, in order to minimize the impact of change-related incidents upon service quality. All changes to the PeopleSoft environment are processed via the change management process. Over 50 change requests (maintenance and enhancements) are processed each year; many of these are PeopleSoft tax updates, service packs or bundles. All proposed application changes are reviewed weekly at the change advisory board meeting.

2.3.12.5 Database Administration

The Database Administrators (DBAs) define and maintain database standards for the Oracle environment both PeopleSoft and Custom Developed. They test and upgrade to new versions of Oracle software and database related products. They maintain an Oracle software version control system and ensuring that all modifications are controlled and logged. They monitor processes running on the databases using Foglight and Oracle Enterprise Monitor. They work closely with the Facilities Management group who monitor the web and application servers. Database backup and recovery is scheduled as part of batch jobs. Specific refreshes are done via service requests. The PeopleSoft audit reports are run frequently to monitor the health of the PeopleSoft environment. Database optimization and tuning is performed as part of maintenance activities and also in partnership with the facilities management group to map logical file systems to network attached storage systems. SQL query analysis, tuning and optimization are also done to enhance performance, prevent unusual loads on databases and impacts to users. Database re-organizations, special load testing are other activities that are part of on-going optimization.

2.3.12.6 Facilities Management

A contractor provides facility management services under an agreement with Common IT Services. This contract expires March 31, 2004. POIM defines all service deliverables.

Page 23

JSRFP# SATP-033

The facilities management team is located on-site with POIM. The contractor provides support services for the technical infrastructure underlying the PeopleSoft Application and 24/7 support for batch operations including the automated payrun. This includes 12 Sun servers (6 Gold, 3 Silver, and 3 Bronze coverage), network attached storage, and network infrastructure. There are nightly backups and refreshes to reporting and Business Continuity environments. The facility management operations team monitor the computer operations environment including the UNIX environment, networks, and firewalls using ORCA and other monitoring tools. All problems are logged in Remedy and reported to the Manager, Application Management immediately or at the next defined escalation point.

2.3.13

2.3.14

Application Maintenance There are two main types of maintenance requests that are logged as change requests: 1. Mandatory changes:

• PeopleSoft tax updates, fixes, bundles and new PeopleTools releases. Staff monitor the

PeopleSoft website for updates, fixes and review these weekly; and • Changes due to statutory requirements including but not limited to changes to collective

agreements.

2. Discretionary changes (application enhancements):

These changes are business driven and are initially logged as service requests supported by a business case. If these requests are approved by the steering committee they become change requests. These changes may result in modifications to the PeopleSoft Application, selected software, or other custom developed applications. Modifications from the base (vanilla) application are discouraged and require a strong business case to get approval.

Mandatory and discretionary changes are conducted via change requests that are analyzed by POIM’s Business Systems Analysts under direction of the Business Team Lead. The Business Systems Analysts work with the Programmer Analysts to process, test and implement the change request using the system development lifecycle methodology.

Reporting POIM is responsible for the technical environment, training and support of corporate reporting from the human resources and payroll applications. The BC Public Service Agency maintains a section that services and supports the business needs of corporate human resources reporting. These two groups work closely together to ensure that all reporting needs are met, business or technical.

2.3.14.1 PeopleSoft Application Reporting

Reporting in PeopleSoft is accessible by organizations who run reports from the Production database, the general reporting database, and payroll data archived database. Queries are run using the PS/Query Tool. A limited number of users (less than 10) have

Page 24

JSRFP# SATP-033

access to the Reporting database through SQL*PLUS to run data extracts. T.O.A.D. is used by POIM staff to run scripts and trouble-shoot query problems.

2.3.14.2 Running Reports

Standard reports (SQR’s) – approximately 60 – and public queries – approximately 35 are run from the production database. Private queries (16,000+ in total) are run from the reporting database. The reporting database is refreshed nightly from production. All PeopleSoft Application users have the ability to run private queries that have been copied to their USERID in the reporting database and all public queries in the production database. Access to standard reports (SQR’s) is restricted based on their business function (i.e. payroll, benefits/leave or human resources).

2.3.14.3 Reporting Security

Security for standard reports is controlled by the user’s on-line security access. Security for public and private queries is controlled by prompts within the SQL code.

2.3.14.4 Query Developer Training

Organizations have the ability to develop ad-hoc queries. POIM delivers query developer training. A basic query developer course introduces them to the query tool and allows them to develop basic reports. Advanced level training grants them access to all the PS/Query functions. Upon completion of the advance level training, the user submits 5 queries to POIM for quality assurance. Query development is allowed only in the reporting database. Development of public queries is restricted to POIM. There are approximately 75 ministry query developers (60% advanced and 40% basic level).

2.3.14.5 Custom Developed Application Reporting

Within the corporate human resource applications there are standard reports available to the users. Should more complex reports be required, a programmer analyst within the POIM would develop the custom report.


Page 25

JSRFP# SATP-033

2.4 DEVELOPMENT POIM is responsible for the management of development projects. At time of JSRFP release, there is application development occurring in both the PeopleSoft Application and custom developed application environments. Development projects can range from smaller application enhancements to multi-million dollar projects. The approval to proceed on development projects is typically received from the Human Resource/Payroll Assistant Deputy Minister steering committee. All development projects are approved and monitored by the Steering Committee and managed by the POIM management team. Application enhancements require a strong business case; modifications to vanilla PeopleSoft are discouraged.

2.4.1

2.4.2

2.4.3

PeopleSoft Development Major application upgrades are scheduled to ensure the application continues to receive support by PeopleSoft Global Support Centre. Upgrades to new PeopleSoft versions are under formal project management control. In August 2002, a Request for Proposal was issued for a PeopleSoft Development partner and in December 2002, a master contract was entered into with IBM Canada Limited for a term ending October 31, 2005 (and may be renewed for a two-year period). Under this master agreement, any sub-project agreements in place may be terminated by the Province at any time by giving 60 days advance written notice. Additionally, the master agreement states that the Province may terminate the master agreement on giving written notice. POIM employees participate with the contracted resources for development projects, thereby allowing the Province to lower costs.

Specific Software and Custom Developed Application Development

Development work in custom developed applications are conducted via smaller contract arrangements. The scope and size of these development projects are typically much less than those of PeopleSoft development projects. There is no long-term development partner for these projects.

Systems Integration To ensure interoperability, the Partner may be required to follow corporate IM/IT standards and mandated Common IT Services set by the Chief Information Office such as the BroadVision Enterprise Portal, the Netegrity Security Gateway, the WebMethods Integration Broker, the SPAN/BC network, and the IDIR and BCEID corporate directories. The PeopleSoft Application also contains key intersection data that may be required to synchronize with other strategic corporate applications (e.g. Oracle Financials, SAP, Perregrine, etc.) and strategic directories (e.g. Active Directory, Exchange, Telephone, etc.). Today, some of

Page 26

JSRFP# SATP-033

these intersection data elements are either maintained in duplicate or have been synchronized on a one-time basis. The Province’s strategic corporate application vision demands a substantially more automated approach. Our expectation is that when an intersection data element is updated it will automatically be updated in all applicable strategic corporate systems or directories, either immediately or on a reliable asynchronous basis, following a workflow process. The Province has licensed the WebMethods Integration Broker. In the future, this may be the vehicle that will be used to effect this synchronization. Should this occur, the Partner would need to accommodate the automation of the synchronization process for intersection data elements as required by the Province in the future. The Province has licensed Netegrity Site Minder. Netegrity may provide single sign on to corporate applications via the internal portal using the IDIR and BCEID corporate directories for authentication. Should this occur, the Partner would need to accommodate Netegrity as required by the Province in the future. The Chief Information Officer is responsible for setting desktop standards. As the human resources and payroll application is developed, the corporate desktop standards and the application will need to be in synchronization.


Page 27

JSRFP# SATP-033

2.5 POLICY AND COMPLIANCE

2.5.1 Privacy Policy

Protection of privacy of personal information including financial and other personal information must be ensured. Accordingly, compliance with the Freedom of Information and Protection of Privacy Act and guidelines is required. All Proponents should be familiar with the Freedom of Information and Protection of Privacy Act and related policies and guidelines of the Province of British Columbia. Information on these policies is available at: http://www.cio.gov.bc.ca. The contractor’s guide to the Freedom of Information and Protection of Privacy Act is in Appendix H. Issues related to privacy will be assessed during the Joint Solution Definition Phase as described in section 4.2.

2.5.2

2.5.3

2.5.4

Labour Relations POIM employees are excluded from union membership by the Public Service Act. As part of Stage 1, the Ministry will be evaluating the Proponent’s ability to manage the labour relations aspects of business transition. Experience with similar transfer situations, including change management, will add to the capability assessment of the Proponent. Issues related to labour relations would be assessed during the Joint Solution Definition Phase as described in section 4.2.

Other Policies and Regulations that May Impact the Solution

As part of the Joint Solution Definition Phase it is possible that specific legislation, policies and regulations that may interfere with a preferred Solution will be identified. The Ministry may undertake to change or create the legislation, policies and regulations to effectively support the business case for the final Solution and facilitate execution of a Final Contract.

Software Contracts that May Impact the Solution Issues related to Software Contracts will be assessed through the JSP. In particular, the Province’s evaluation of the Proponents in Stage 3 of the Proponent Qualification Phase as described in section 4.1.5 and in the Joint Solution Definition Phase as described in section 4.2 will take into account the Software Contracts and their impact on the proposed Concept or Solution as well as the viability, and financial and other implications to the Province, of any commercial arrangement proposed by the Proponents with respect to the Software Contracts.

Page 28

http://www.cio.gov.bc.ca/

JSRFP# SATP-033

2.6 DEAL STRUCTURE AND ECONOMIC MODEL

2.6.1

Deal Structure

Proponents should understand the business efficiencies and alternative service delivery opportunities that will exist as the Business Alliance evolves. The extent of business efficiencies, the choice of alternative service delivery and the associated deal structure will depend on the Solution arising out of the Joint Solution Definition Phase of the JSP process. The diagram shown below describes some potential commercial arrangements.

Government Deal Drivers

• Service delivery • Cost / effectiveness • Regulatory • Skills / capabilities • Stakeholder interests

(i.e. unions, public) • Legal

Government Deal Drivers

• Service delivery • Cost / effectiveness • Regulatory • Skills / capabilities • Stakeholder interests

(i.e. unions, public) • Legal

VendorDeal Drivers

• Profit & return on Investment

• Commercial risk• Competitive

positioning• Ownership structure• Liability

VendorDeal Drivers

• Profit & return on Investment

• Commercial risk• Competitive

positioning• Ownership structure• Liability

Deal Structure Government

Owned Subsidiary

Pure Outsource

Transitional Joint

Venture

JointVenture

Shared Services

EquityInvestment

Deal Elements :

Economic Model Fixed Price Transaction -BasedFixed Price +

Volumetric Sensitive Drivers

Capital Requirement BC Government

Up - Front Funding Vendor Up-Front Funding

Other – Third Party Financing

Operational Efficiencies Before Deal After DealJoint Solutioning

(I.e. Run/improve Efficiencies/Run)Labour Policy Seconded TransferredMade Redundant

Visibility / Transparency Closed

Book Open BookOther - Benchmarking,Joint Audit, etc.

Shared Funding(JV)

Management Philosophy Day-to-Day ControlOversight

Cost Plus

Business Process and Technology:

Policy and Compliance:

Economic Model and Partner Model:

Figure 4

The resulting relationship from the successful Solution will be a key driving force for the success of the long-term commercial arrangement between the Partner and the Province. The qualification process described in this document will test the Proponent’s 3C’s mix to assess its cultural fit with the Ministry. The Joint Solution Definition Phase of the JSP process will allow both the Ministry and Preferred Proponents to explore prospective business efficiencies within POIM and alternative service delivery opportunities that can be deployed immediately, or during a phased approach, as performance measures are established. The Ministry will be inviting Preferred Proponents to table innovative ideas and to demonstrate their capability to formulate business cases for alternative service delivery components of the POIM business processes as the relationship evolves, as well as to identify any potential quick

Page 29

JSRFP# SATP-033

wins. Examples of past accomplishments in this area and explanations of how they could be applied to the Project will aid the Province in properly assessing the Proponent’s capability. The critical need is to acquire a Partner to provide leading efficient practices capable to help the Province define what is required for the Ministry to realize its goals. The Ministry is interested in ideas, which will support the goal of achieving maximum business results and who is committed to a strategic relationship with the Ministry over the long term.

2.6.2 Economic Model There are a variety of possible economic models that can arise from the Joint Solution Definition Phase of the JSP process. Proponents will be asked to describe past alternative services delivery projects and demonstrate to the Province their in-depth knowledge and experience in conceptualizing, designing, developing and operating economic models that are true to the spirit of the type of deal structures contemplated for the Project. This could range from a cost-plus model to a transaction based model or be a combination of several models depending upon the various business processes under consideration and the type of deal structure contemplated by the Proponent. The allocation of risks and rewards between the Partner and the Province should be balanced for the commercial arrangement to be successful over the long term.


Page 30

JSRFP# SATP-033

3 OVERVIEW OF THE END-TO-END JSP PROCESS

3.1 DEFINITION The JSP process is a multi-phased approach designed to select a Partner to work strategically with the Ministry from identification of Preferred Proponents through to joint development of a Solution and subsequent delivery of services over a long-term relationship. Emphasis will be placed on making sure that the Partner brings an optimum combination of commitment, capacity, and capability to manage an alternative delivery of the Ministry’s business processes and technology. The JSP process is normally used in situations where a complex business problem exists and where no clear ‘off the shelf’ solution can be readily identified. Due to the nature of such projects, the various phases of the JSP process are designed to help leverage the combined capability and creativity of the Ministry project team and the private sector Preferred Proponents to create a Solution that effectively addresses the Project’s goals and desired business outcomes, while optimizing the total value to the Business Alliance over the duration of the commercial arrangement. Unlike conventional procurement processes, a successful JSP process culminates with a long term Business Alliance that is adaptive in that it allows for creativity, flexibility and evolution over an extended period of time typically seven to ten years. The JSP approach is structured to be fair, open and competitive and includes activities in the Proponent Qualification Phase of the selection process that facilitate greater communication between Proponents and the Ministry.


Page 31

JSRFP# SATP-033

3.1.1

3.1.2

Approach and Timeline

Figure below illustrates the overall approach from JSP planning to the identification of a Successful Proponent.

6 - 9 weeks

Qualify JSP

Qualify JSP JSP

Preparation JSP

Preparation

9 - 12 Weeks

Joint Solution Definition


10-15 Weeks

A A B B 1 1

Due Diligence / Negotiation

Due Diligence / Negotiation

22

Depends on Model

Implementation Implementation

Project Management Project Management • Issues and risk management• Cost controls and economic/deal

modelling expertise • Research and rapid response• Meeting/workshop logistics• Business analysis

• Clean rooms and proponent facilities • Legal, HR, and procurement assistance

WHY WHY WHO WHO WHATWHAT HOWHOW WHEN WHEN

Contract Negotiation


33

Phase A – Assess suitability of potential opportunities for Joint Solution Procurement process.

Phase B – Prepare Joint Solution RFP (JSRFP) with evaluation criteria for release to proponents

Phase 1 - Select two preferred proponents based on Capability, Capacity and Commitment (3 C’s) for Joint Solution Definition phase.

Phase 2 – Jointly develop proposed Solution frameworks through iterative design cycles. Select successful proponent fo r negotiation.

Phase 3 – Conduct rigorous due diligence in preparation for contractual agreement.

Phase 4 – Negotiate and sign contract.Decision “Gates”Decision “Gates”

Many 2 4 1+1 1

Proponent Qualification Proponent

Qualification

44

6 - 10 Weeks

Tentative Work Plan

The Project will be conducted following the tentative timelines detailed in section 1.3.5. The Ministry is interested in expediting the selection process to the maximum degree possible, and reserves the right to adjust the schedule wherever practical


.

Page 32

JSRFP# SATP-033

3.2 KEY SUCCESS FACTORS

3.2.1

3.2.2

3.2.3

Mutual Understanding and JSP Structure

The JSP process is an intensive procurement approach that requires patience and commitment by all parties to ensure its success. The process allows Proponents more flexibility than commonly available during a conventional request for proposal. This includes, for Proponents, the ability to ask questions of Ministry staff (e.g., at Workshops) during the selection process and, for the Ministry, more latitude during the subsequent presentations. One key premise of the JSP process is that the selection of a Successful Proponent will focus on the optimum strengths that a Proponent could bring to the Business Alliance. The other key premise is that the Solution itself is jointly developed after the Preferred Proponents have been identified, which allows for some significantly innovative approaches (e.g., during the Joint Solution Definition Phase) to be developed in order to meet the desired business outcomes of the Project. Successful completion of the Joint Solution Definition Phase will be followed by a period of detailed due diligence and negotiations activities in the Due Diligence & Negotiation Phase. The final phase (Contract Negotiation) of the JSP process is marked by activities needed to finalize the commercial arrangement.

Sharing of Risks and Rewards In order for a long-term Business Alliance to exist, both the prospective Partner as well as the Ministry will have to share the risks and rewards associated with the Solution. In order to assess the economic sharing of the risks and rewards, the Ministry is interested in understanding not only the Proponent’s 3C’s, but also any opportunities for sharing risks and rewards that may arise as a result of Business Alliance with the Partner. While the Ministry is looking for innovative economic sharing models, one simple example may be gain sharing; another is a Proponent’s interest in assuming business risk for the Solution as a springboard for other opportunities. Proponents will be asked to demonstrate their ability to engage in this sort of arrangement as part of the Proponent Qualification Phase. Any details related to the economic sharing of risks and rewards in the Business Alliance and Final Contract will be formulated during the Joint Solution Definition Phase and finally negotiated as part of the Due Diligence & Negotiation and the Contract Negotiation Phases of the JSP process.

JSP Communications Protocol Maintaining proper communications protocol throughout the JSP process is important in order to protect the integrity of the JSP procurement and the Project, as well as to protect the interests of the Proponents and Ministry. The following communication protocol will apply during the JSP

Page 33

JSRFP# SATP-033

process. The failure of a Proponent to adhere to the communication protocol may result in the Proponent being disqualified from the JSP process.

3.2.3.1 During the JSRFP

All communication related to the JSRFP should be referred to the Province contact listed on the front page of this document.

3.2.3.2 Workshops

All communication related to the JSRFP should be referred to the Province contact listed on the front page of this document. This excludes face-to-face communications with Proponents as part of the Workshops where communication with Ministry representatives is expected. Please note that the Ministry reserves the right to withhold information at the Workshops that may impact its negotiating position during the subsequent phases of the JSP process.

3.2.3.3 Joint Solution Definition Phase

The Ministry will establish an Information Control Office capable of providing information during the Joint Solution Definition Phase. Preferred Proponents may also request interviews with Ministry staff through the Information Control Office.

3.2.3.4 Due Diligence & Negotiation Phase

The Ministry will establish a list of staff capable of providing information during the Due Diligence & Negotiation Phase of the JSP process. The list may include access to project staff, subject matter experts and senior executives of the Ministry as well as the Deputy Minister. The Ministry is committed to making senior decision makers available during this Phase of the process to ensure that commercial elements are immediately discussed, resolved and agreed upon.

3.2.3.5 Contract Negotiation Phase

The Ministry will establish a list of staff capable of providing information during the Contract Negotiation Phase of the JSP process. This may include access to project staff, subject matter experts and senior executives of the Ministry as well as the Deputy Minister. The Ministry may retain the services of an independent party to act as a negotiating lead working with senior executives during this Phase.


Page 34

JSRFP# SATP-033

4 THE JSP PROCESS AND EVALUATION CRITERIA

4.1 THE JSRFP PROCESS

4.1.1 Approach and Timeline Overview

Figure X 6-9 weeks

Qualify JSP

Qualify JSP

JSP Preparation

JSP Preparation

9-12 Weeks



10-15 Weeks

AA BB 11

Due Diligence/ Negotiation

Due Diligence/ Negotiation

22

Depends on Model

Implementation Implementation

Project ManagementProject Management• Issues and risk management• Cost controls and economic/deal

modelling expertise

• Research and rapid response• Meeting/workshop logistics• Business analysis

• Clean rooms and proponent facilities• Legal, HR, and procurement assistance

WHYWHY WHOWHO WHATWHAT HOWHOW WHENWHEN



33

Phase A – Assess suitability of potential opportunities for Joint Solution Procurement process.

Phase B – Prepare Joint Solution RFP (JSRFP) with evaluation criteria for release to proponents

Phase 1 - Select two preferred proponents based on Capability, Capacity and Commitment (3 C’s) for Joint Solution Definition phase.

Phase 2 – Jointly develop proposed Solution frameworks through iterative design cycles. Select successful proponent for negotiation.

Phase 3 – Conduct rigorous due diligence in preparation for contractual agreement.

Phase 4 – Negotiate and sign contract.Decision “Gates”Decision “Gates”

Many 24 1+1 1

ProponentQualificationProponent

Qualification

44

6-10 Weeks

The JSP process is designed to take a prospective JSP project through an initial series of pre-JSRFP exploratory sessions in order to determine a project’s candidacy as a JSP project, through to a series of phases that culminates in some form of Business Alliance between a Successful Proponent as Partner and the Ministry. Examples of deal structures for the Business Alliance are outlined in section 2.6.1 of this document. Identification of the Preferred Proponents is based on continuous assessment of a Proponent’s 3C’s to work with the Ministry in developing a Solution that meets the goal’s of the Ministry and desired business outcomes for the Project. As a guideline, the Ministry will be looking for a logical trend or progression in the Proponent’s demonstrated skills as the Proponent moves from Stage 1 (being the evaluation of Proposals), gains more knowledge of the Ministry business environment and needs during Stage 2 (the Workshop Stage) and finally delivers a more focused but still conceptual solution (Concept) during Stage 3 (the Concept Stage) of the Proponent Qualification Phase. The Concept provided by the Preferred Proponents will be validated early in the Joint Solution Definition Phase of the JSP process. The Proponents should understand that the Concepts may be subject to significant change as the Joint Solution Definition Phase progresses.

Page 35

JSRFP# SATP-033

A Proponent’s Proposal in response to this JSRFP is the initial step in qualifying to participate in the Joint Solution Definition Phase. Preferred Proponents will be selected on overall performance in a number of areas encompassing the 3C’s and not exclusively on the Concept. Proponents should keep in mind that the Ministry is not only looking for information on how to do the Project, but also on proof that the Proponent has successfully performed, managed and operated a similar sort of business.

4.1.2

4.1.3

4.1.4

Release JSRFP & Evaluate Proposals Upon completion of the evaluation of the Proposals, a short-list of up to four Proponents will be created and those Proponents will be invited to participate in Stage 2 (the Workshop Stage). The remaining Proponents will be advised of their standing in writing and offered debriefing sessions. The Ministry proposes to hold the debriefing sessions soon after the Preferred Proponents are announced.

If Only Two Proponents In the event that only two Proponents are deemed to qualify as a result of the evaluation of the Proposals in Stage 1, then the Ministry reserves the right to consider these Proponents as Preferred Proponents and to proceed directly to the Joint Solution Definition Phase. In this case some aspects of the Workshops may be performed during the early part of the Joint Solutions Definition Phase in order to set the stage for Solution development. The Ministry also reserves the right to invite the two Preferred Proponents to present their 3C’s to the Ministry to ensure that they have the necessary 3C’s required to undertake the Project and deliver the final Solution. These presentations may take place either prior to the commencement of the Solution definition activities, or at any other time during the Joint Solution Definition Phase.

Workshops

The purpose of the Workshops is to allow short-listed Proponents the ability to further explore the Project and to provide an avenue for them to assess whether the Project is of sufficient interest to engage in a significant amount of work at the Joint Solution Definition Phase and, if the Proponent is the Successful Proponent, at the Due Diligence & Negotiation Phase and the Contract Negotiation Phase. The guidelines that will govern the Workshops are outlined below. The Ministry reserves the right to alter these guidelines (and any scheduling) as needed, but will only do so after notifying the short-listed Proponents. a) The Ministry will allot two half-day segments for each of the short-listed Proponents. The first

half-day will begin with an information session delivered by the Ministry to the short-listed Proponent. This information session will be unidirectional in order to ensure that all short-listed Proponents are given the same information. The Ministry will be available for questions for the immediate hour following the session.

b) The second half-day session will be reserved for a short-listed Proponent’s staff to question the Ministry team so as to further explore the material presented in the first half-day session or to ask questions that the short-listed Proponent feels are needed in order for it to deliver a Concept at Stage 3 of the selection process. The second half-day session may take place on the same day or be scheduled in the morning of the following day so as to give short-listed Proponents time to assimilate the first session’s information and to prepare questions for the second session. Please note that there will be no allowance for a follow-up Workshop. The second session is for the benefit of the short-listed Proponents, and accordingly, wide latitude will be afforded to the question period. Short-listed Proponents may manage the meeting in

Page 36

JSRFP# SATP-033

the manner that they deem most useful. Please remember that the Ministry will be evaluating aspects of the 3C’s during the Workshops.

c) While the Ministry will make every effort to ensure that pertinent people are available to answer queries, there may be some questions that cannot be answered during the second session. In this case every effort will be made to communicate the response to the short-listed Proponent within one working day of the Workshop. The Ministry will, however, not be liable whatsoever for any delays in providing a response to any unanswered questions within that period.

d) The Workshops will not be recorded and all questions asked by a short-listed Proponent will be considered proprietary and not released to other short-listed Proponents. In addition, answers to questions asked during the Workshops, which could not be answered by Ministry staff, will be communicated in writing to the respective short-listed Proponent only. All questions asked prior to or after the Workshops should be submitted in writing to the contact person indicated on the front of this document. Responses to these questions may be communicated to all short-listed Proponents. The Ministry reserves the right, however, to disseminate information related to the Province or the Project arising as a result of questioning in any one of the Workshops, to all short-listed Proponents if, in the opinion of the Ministry, the information is related to a matter that all Proponents will need to know in order to prepare for the presentations.

e) The Ministry will not require short-listed Proponents to bring specific staff to the Workshops. Each short-listed Proponent should decide who from their organization is best suited to gather the necessary information. Please remember that the Ministry is still assessing the 3C’s. While a poor showing will result in a poor assessment, it does not automatically follow that bringing a large team will result with a good assessment on the 3C’s.

Proponent Presentations 4.1.5

On completion of the Workshops, short-listed Proponents will be given approximately 1 week to assess the information they have gathered during their Workshops and formulate a Concept for presentation to the evaluation committee in Stage 3. Section 4.7.2.4 describes the evaluation criteria that will be used at Stage 3. While the major portion of the presentation should focus on the short-listed Proponent’s Concept (which should include some possible deal structures and high level solution approaches), the short-listed Proponent’s overall ability to function in a Business Alliance will also be considered. A transcription or minutes may be taken of the Stage 3 proceedings. Presentations will be limited to 3 hours of which some time will be reserved for the evaluation committee to ask questions on any aspect of the short-listed Proponent’s Concept or performance during the various Stages of the Proponent Qualification Stage. The time may also be used to pose situational questions designed to assess the 3C’s of the short-listed Proponent. Please note that the evaluation committee reserves some latitude when asking questions during Stage 3 on the condition that the questions will be based on information provided during the selection process. Each short-listed Proponent is required to supplement its presentation with a paper and electronic copy version of its Concept presentation.

4.1.6 Preferred Proponents Selection On completion of the evaluation process, the Ministry will tabulate the evaluation results and rank the short-listed Proponents. The top two ranked short-listed Proponents will be deemed Preferred Proponents and will be invited to engage in the Joint Solution Definition Phase.

Page 37

JSRFP# SATP-033

4.1.7 Post Presentations and Debriefings Once the top two Preferred Proponents have been declared, a Joint Solution Definition Agreement will have to be executed by the Ministry and each of the two Preferred Proponents prior to commencing the Joint Solution Definition Phase activities. In the event Joint Solution Definition Phase activities or negotiations with one of the Preferred Proponents fail, the Ministry reserves the right to contact the next highest ranked short-listed Proponent and invite them to engage in Joint Solution Definition Phase activities with the Ministry. Proponents who are not invited to the Joint Solution Definition Phase may request a debriefing session which will be scheduled by the Province after the conclusion of the Contract Negotiation Phase.


Page 38

JSRFP# SATP-033

4.2 JOINT SOLUTION DEFINITION PHASE The Joint Solution Definition Phase of the JSP will require significant investment on the part of the Ministry as well as the Preferred Proponents. The Joint Solution Definition Agreement that is signed by the Province with each of the Preferred Proponents will govern the conduct of the remaining Phases of the JSP. Preferred Proponents are cautioned not to delay in signing the Joint Solution Definition Agreement as once one Preferred Proponent has satisfactorily executed the Joint Solution Definition Agreement the discovery cycle of the Joint Solution Definition Phase described in section 4.2.2 may begin immediately with that Proponent.

The core objective of the Joint Solution Definition Phase is to work with both Preferred Proponents to define Solutions, economic models and deal structures for the Project. These activities (and series of meetings) will be performed jointly with the Ministry teams (see section 4.2.3) but independently with each Preferred Proponent. The primary deliverable coming out of the Joint Solution Definition Phase will be a document that describes (a) the deal structure, (b) a model that describes alternative services delivery strategy for the POIM related business processes and technology, and (c) a statement of validation that the Solution framework is compliant with policy and other regulations and agreements. This document is the platform that will be subject to due diligence and negotiations at the subsequent Due Diligence & Negotiation Phase of the JSP process. There are five (5) key tasks, as follows, that describe how the Joint Solution Definition Phase will proceed.

4.2.1

Overall

10 days

PMO Set Up

PMO Set Up

Defining the Solution

Defining the Solution

Week 1

- 2 Economic Model &

Deal Structure

Wee

k 1 -

Bus

ines

s Pr

oces

s

10 days 10 days 4 days

Discovery Discovery

5 days

Each module is one weeks in duration: • Half day workshops on M W&F (Pref erred Proponent 1 AM and Pref erred Proponent 2 – PM)

Framing the

Solution

Framing the

Solution

Week 7

-8

Synthesize Solution

Wee

k 4 -

Synt

hesi

ze S

olut

ion

Week 9

-10

Optional Design

ModuleW

eek

5 -

Fina

l Sol

utio

n

Week 3

-4

Business Processes

& Technology

Wee

k 2 -

Tech

nolo

gy &

Po

licy

Comply with

Policy

Comply with

Policy

Week 5

-6Policy and

ComplianceW

eek

3 -

Econ

omic

Mod

el &

D

eal S

truc

ture

Sliding Decision PointSliding Decision Point

Information Control Office The Ministry plans to establish an information control office that will serve as a central repository of information used to facilitate the exchange of confidential information between the Preferred Proponents and the Ministry. The function of this office is to ensure that confidential information provided by the Preferred Proponents is kept segregated from each other and that Joint Solution Definition Phase activities are facilitated.

Page 39 Details of this office will be provided to the Preferred Proponents as the JSP process progresses.

JSRFP# SATP-033

4.2.2

4.2.3

4.2.4

4.2.5

Discovery Cycle The discovery cycle is a one time period of activity when Preferred Proponents are permitted access to Ministry staff, documents, technology assets and records and service metrics (where applicable) as well as any information that a Preferred Proponent may feel is necessary in order to prepare for the process of creative Solution definition. Please note that this period is not guided by the Ministry.

Defining the Solution This period of activity consists of a series of iterative two-week Solution definition cycles designed to define the business and technical scope of the Project, as well as the potential timing to benefit realization, the nature of the deal structure (e.g., joint venture, outsource etc.) and economic model. The Preferred Proponents will be working independently from each other, with the Ministry Project team, in jointly formulating a Solution to the Project objectives. While the Concept provided at the Preferred Proponent’s presentation will be used as a basis for the Solution, it is possible that information gathered during the discovery cycle or as a result of discussions with the Ministry during this cycle may result with an entirely different approach being considered. It is likely as well that the Solutions developed by the Preferred Proponents may be very different. The iterative series of meetings is envisioned to rotate with one week of data gathering workshops (e.g., 3 days a week with one Preferred Proponent allocated morning workshops and the other Proponent allocated afternoon workshops) with the subsequent week for synthesizing the models. The activities will focus on a proposed economic model for the Solution as well as Ministry business processes and technology. The Ministry expects that the Solutions will be creative. The Ministry will ensure that its decision makers are at the table so that decisions are expedited and the Solution Definition Phase of the JSP process successfully concluded.

Comply with Public Sector Service Standards Once the economic model and business processes/ technology aspects of the final Solution are formulated, the Preferred Proponents and the Ministry will need to assess the Solution framework for compliance with public-sector service delivery standards. This process will include a series of iterative cycles where the Solution parameters are measured against functions such as: labour relations, conformance with privacy laws, the Provincial direction and statutes, and existing agreements.

Framing the Solution At this point in the Joint Solution Definition Phase, the Preferred Proponents will have formulated a Solution approach that incorporates work on a proposed deal structure, associated economic model, and Solution parameters addressing the scope of business (business processes and technology) and will have been tested against policy and standards. A period of Solution synthesis will take place on the overall model after which the Ministry will perform a final evaluation to determine the Successful Proponent. The final evaluation will be based on the Preferred Proponent’s Solution in the areas of: (a) deal structure, (b) economic model and assumptions; and (c) solution business processes and technology.

Page 40

JSRFP# SATP-033

Once a Successful Proponent has been announced, the remaining Preferred Proponent will be designated as the ‘vendor-in-waiting’. In the event negotiations with the Successful Proponent fail, the Ministry reserves the right to contact the remaining Preferred Proponent and invite it to enter into the Due Diligence & Negotiation Phase.

4.2.6 Consent to use of Core Application In the event the Preferred Proponent fails during the Joint Solution Definition Phase to obtain the consent of PeopleSoft to the license, transfer, assignment or otherwise authorization of the Core Application to or by the Preferred Proponent, then the Province may terminate the involvement of the Preferred Proponent in the JSP.


Page 41

JSRFP# SATP-033

4.3 DUE DILIGENCE & NEGOTIATION PHASE

Overall Timeframe

Validate Commitment

Validate Commitment

Asse

ss C

urre

nt

Appl

icat

ions

Asse

ss C

urre

nt

App

licat

ions

Ass

es T

echn

olog

y In

fras

truc

ture

Asse

s Te

chno

logy

In

fras

truc

ture

ImprovementOpportunitiesImprovementOpportunities

Finalize PartnerModel

Finalize PartnerModel

Due Diligence Assessment

Due Diligence Assessment

Ass

ess

Serv

ices

Asse

ss S

ervi

ces

Asse

ss O

rgan

izat

ion

Asse

ss O

rgan

izat

ion

Duration: Dependent on Overall Solution

Confirm Business

Case

Confirm Business

Case

Figure 13 The Due Diligence & Negotiation Phase will begin with a period of due diligence where both the Successful Proponent and the Ministry will engage in activities to ensure that the Solution developed during the previous Joint Solution Definition Phase is validated against detailed information. There are five (5) key tasks that describe how the Due Diligence & Negotiation Phase will proceed.

4.3.1

4.3.2

Validate Commitment An early activity in this Phase is validation of the prospective Business Alliance structure and of the Solution framework presented by the Successful Proponent entering into this Phase. The Ministry expects that a Letter of Intent will be signed by the parties and announced to the public. The Letter of Intent will make reference to the Successful Proponent’s Solution framework as the approach of choice. A series of project management activities will take place to set the stage for detailed due diligence and negotiations. This includes establishment of both the Ministry and Successful Proponent’s negotiating and supporting infrastructure (tools and resources), meeting schedules, subject areas and rules of engagement as applicable. An oversight process will be discussed and participation of decision makers for the duration of the Phase, in Victoria, B.C., agreed to prior to commencing with the due diligence process.

Due Diligence Assessment This period of activity is primarily for the Successful Proponent to detail its understanding of the parameters impacting successful delivery of the Solution formulated in the previous Joint Solution Definition Phase. This includes detailed verification of information used to design the Solution, assumptions reviewed and accepted or referred to negotiations, business processes and human resources data detailed and base-line service and financial levels assessed and verified against

Page 42

JSRFP# SATP-033

the Solution model and inventory of technology completed. The Ministry may in addition, perform further due diligence on the Successful Proponent to verify its current financial and operating capacity to deliver on and/or commit to the statements made in the Solution framework.

4.3.3

4.3.4

4.3.5

Improvement Opportunities As a result of the due diligence process it is expected that opportunities to increase services and decrease costs of delivery will be discussed, negotiated and agreed upon to the maximum extent possible. An approach to establishing subsequent opportunities and the costs/benefits involved will also be defined.

Finalize Partner Model An important activity of this Phase is finalization of the proposed Partner model that will be used as a basis for the Final Contract. A number of joint discussions will need to take place including detailed understanding on the governance structure, strategic and tactical plans and guiding principles that describe how the Partner model will operate. This activity has to be completed prior to commencing the Contract Negotiation Phase of the JSP process.

Confirm Business Case On conclusion of the due diligence work, the business case coming out of the previous Joint Solution Definition Phase will be refined, the deal structure model completed and prepared for incorporation into the Final Contract.


Page 43

JSRFP# SATP-033

4.4 CONTRACT NEGOTIATIONS PHASE The Contract Negotiation Phase marks the final section of the JSP process. Activities include negotiations on the deal structure, governance and operational plans necessary to operate the Solution as well as developing the Final Contract so as to establish a long-term commercial arrangement and Business Alliance with the Partner. The negotiations will also include discussion on opportunities and mechanisms for mutual re-negotiation of the Final Contract, so as to respond to changes in the parties’ respective business environment, as the Business Alliance evolves over the term of the Final Contract.

Overall Timeframe

Duration: Dependent on Overall Solution Framework

Duration: “n” weeks

Implementation Implementation Implementation PlanningImplementation Planning

Formalize AgreementFormalize Agreement

Finalize and Sign Contracts

Finalize and Sign Contracts

Deal Structuring

Deal Structuring

Figure 14

There are four (4) key tasks that describe how the Contract Negotiations Phase will proceed.

4.4.1

4.4.2

4.4.3

4.4.4

Deal Structuring A period of deal structuring will take place once the business case has been finalized and agreed upon. The final term sheet will be produced, contract structure determined and final decision to proceed with the Final Contract will be made.

Implementation Planning In preparation for implementation of the Project, the short term plan will be completed to: • Establish priorities; • Identify quick wins; and • Establish communication requirements.

Formalize Agreement During this period of activity the Final Contract will be negotiated and schedules prepared.

Finalize and Sign Contract Once the Final Contract is ready for execution, both the Ministry and Partner will need to obtain the necessary approvals to sign the Final Contract. On signing, a public announcement may be

Page 44

JSRFP# SATP-033

made and implementation of the services will begin. Any public announcement by the Partner is to be approved by the Ministry before release.


Page 45

JSRFP# SATP-033

4.5 THE PAYROLL PROJECT In the event the Province, in its sole discretion, decides to proceed with the Payroll Project, the Province may enter into contract negotiations and enter into a Payroll Contract with the Partner for the delivery of the Payroll Services. The Payroll Contract may either take the form of an amendment to the Final Contract or be structured as a separate agreement between the parties. Notwithstanding any other provision in this JSRFP, at any time, the Province at its sole discretion, reserves the right to: •

• • •

• • •

enter into contract negotiations with the Partner during the term of the Final Contract, or with the Successful Proponent during a prior Phase if Treasury Board approval has been obtained to proceed with the Payroll Project; terminate contract negotiations before concluding a Payroll Contract; enter into the Payroll Contract with the Partner; issue a competitive process to identify another contractor willing to participate in an alternative service delivery opportunity with the Province for the Payroll Project; enter into a payroll contract with another contractor for the Payroll Project; expand, limit, restrict or otherwise amend the scope of the Payroll Project; or cancel the Payroll Project.


Page 46

JSRFP# SATP-033

4.6 DECISION POINTS The Ministry reserves the right to apply a decision point at any time from the Joint Solution Definition Phase through to the end of the JSP process and either suspend, terminate or re-start discussions or negotiations with either of the Preferred Proponents. Any determination to invoke a decision point will reside with the Ministry. At various stages in the JSP process, the Ministry may request that the Preferred Proponents prepare a presentation for the Ministry’s executive so as to assess the progress of the activities to date. These presentations will be used to assess the state of the respective discussions and to determine whether the JSP approach is sustainable.


Page 47

JSRFP# SATP-033

4.7 EVALUATION CRITERIA

4.7.1 Proposal Format Guidelines

Proponents are asked to assist the evaluation committee by structuring their Proposals in a consistent manner. The required Proposal format is described below:

• JSRFP Cover Page; • Signed letter in substantially similar format to that of Appendix A; • Table of Contents; • Executive Summary; • Checklist of Mandatory Requirements; • Body of the Proposal (see sections 4.7 and 4.8); • Organizational References; and • Appendices.


Page 48

JSRFP# SATP-033

4.7.2 JSRFP (Phase 1) Evaluation Criteria

While the Proponents may submit joint proposals or propose the use of Subcontractors (as described in section 1.2.2.25), the Ministry is primarily interested in the lead Proponent as defined in Section 1.2.1(x). Consequently, for Stage 1, the evaluation criteria (Section 4.7.2.2) will only be applied to the lead Proponent. Subcontractors will be included in the evaluation process for subsequent Stages and Phases as appropriate. Selection is based on continuous evaluation of a Proponent's ability to demonstrate its 3C’s (capacity, capability and commitment) to the evaluation committee. Identification of the Preferred Proponents is based on performance over a three-stage evaluation process. The evaluation will proceed as follows:

4.7.2.1 Mandatory Criteria

All Proposals that have satisfied the mandatory criteria will be evaluated according to the criteria described below. Failure to satisfy any one or more of the mandatory criteria will result in disqualification from the JSP process.

Mandatory Criteria

1 The Proposal must be received at the closing location before the specified closing time or it will not be accepted.

2 The Proposal must be in English and must not be sent by mail, facsimile or e-mail.

3 The Proposal must include a covering letter substantially similar to the Sample Letter in Appendix A, signed by a representative of the Proponent who is duly authorized to bind the Proponent.

4 Proposals must include a statement that the Proponent is not in receivership or insolvent.

5 Proposals must include a statement that the Proponent has achieved annual revenues in excess of $100 million for each of the last three years.

4.7.2.2 Stage 1 Evaluation Criteria

Proposals will be evaluated based on the evaluation criteria listed in the following table. Stage 1 will be used to qualify Proponents to proceed to Stage 2 of the Proponent Qualification Phase. Scores achieved in Stage 1 will not be carried to Stage 2. However, information provided in Proposals may be referenced throughout the JSP process.


Page 49

JSRFP# SATP-033

Evaluation Criteria Minimum

Score Stage 1

Weighting Capability – Proponent* − Company Profile − Demonstrated experience in a working relationship with large

unionized public sector clients or large unionized private sector client − Demonstrated experience in working with public sector legislation,

policies, and regulations. − Demonstrated experience managing employee transitions (union

and non-union) − Demonstrated experience delivering services similar to POIM − Demonstrated experience managing services similar to Payroll

Services

50% 15%

Capability – PeopleSoft version 8.0 or higher − Demonstrated experience of application management services with

PeopleSoft HRMS - release 8.0 or higher, stating modules and e-applications supported

70% 20%

Capability – Privacy Protection − Demonstrated experience ensuring privacy and security in the

management of sensitive personal information

70% 5%

Capability – Formulating a solution − Demonstrated experience in innovative deal structuring − Demonstrated experience in designing and implementing innovative

economic models

N/A 10%

Capability – High-level vision* − Describe at a high-level, a workable vision to be applied to the POIM

Project and potentially the Payroll Project

N/A 15%

Capacity* − Corporate and financial capacity − Demonstrated capacity & ability to manage investment risk − Demonstrated capacity to engage in long term commercial

arrangements − Demonstrated capacity to manage services similar to POIM and

Payroll Services − Demonstrate capacity to engage in the POIM Project and potentially

the Payroll Project

50% 20%

Commitment − Commitment of Proponent’s staff to engage in the JSP process to

conclusion − Commitment of Proponent to create an environment that facilitates

and encourages a mutually successful commercial arrangement − Commitment of Proponent to achieving the business goals of the

Ministry

50% 15%

*NOTE: Score weighting for the Payroll Project will not exceed 20% of the evaluation criteria for these categories where the Payroll Project has been identified.

Page 50

JSRFP# SATP-033

On completion of the Stage 1 evaluation process, the scores will be tallied and Proponents ranked. Up to the four (4) top ranked Proponents will be invited to participate in the Stage 2 Workshops. The remaining Proponents will be advised of their ranking and offered debriefing sessions that will be held after the Preferred Proponents have been announced. Section 4.8 provides further information for Stage 1 of the Proponent Qualification Phase.


All short-listed Proponents will be invited to participate in individual Stage 2 Workshops with the Ministry.

The Workshops provide an opportunity for the short-listed Proponents to explore the Project and to apply their knowledge of application management and alternative services delivery in producing a Concept for delivery at the Stage 3 presentations.

The following criteria will be used to evaluate the Stage 2 Workshops.

Evaluation Criteria Stage 2

Weighting

Commitment to the JSP process To be finalized

Communication skills To be finalized

Subject matter expertise/relevance of questions To be finalized

The scores for Stage 2 account for 15% of the total evaluation for Stages 2 & 3.


On completion of Stage 2 of the Proponent Qualification Phase, short-listed Proponents will be asked to develop a Concept for presentation to the evaluation committee. Section 4.1.5 describes the format of the presentations. The Concept accounts for 85% of the total evaluation score of the JSRFP.

The Province will finalize the evaluation criteria for Stage 3 prior to opening of the Proposals and will distribute the finalized evaluation criteria to the short-listed Proponents.


Page 51

JSRFP# SATP-033

Evaluation Criteria (Concept) To be finalized

Stage 3 Weighting

Deal Structure - Governance model, strategic direction and suitability for the Project - Compatibility (fit of deal structure with the Province) - Challenges and key success factors - Proposed POIM Project deal structure (e.g. pure outsource, joint

venture etc) and supporting reasoning - Understanding of the Province labour relations and human resources

considerations governing choice of deal construct - Impact of existing privacy legislation, statutes, and compliance on

conceptual deal structure

To be finalized

Business Processes - Understanding of the business problem, scope and key success

factors - The Concept for an alternative service delivery of Ministry business

processes (including potential candidates as well as supporting reasons)

- Impact of existing privacy legislation, statutes, and compliance on business processes solution

To be finalized

Technology - Understanding of the technology environment, current problem,

scope and key success factors - The Concept for an alternative service delivery of Ministry technology - Impact of the Software Contracts on the Concept - Impact of Provincial standards on conceptual approach to the

Ministry technology situation

To be finalized

Economic Model - Demonstrated understanding of the Province’s financial and

governance environment and its impact on the Proponent’s conceptual economic model

- Key challenges and success factors impacting a mutually beneficial commercial arrangement for the POIM Project

- Description of conceptual economic model

To be finalized

Performance Measures, Evaluation, and Corrective Actions - Proposed methods to measure and evaluate Proponent’s

performance throughout the Project - Methods for recognizing required corrective actions and

implementation of such actions on a timely basis throughout the Project

To be finalized

Page 52

JSRFP# SATP-033

The Concept to be delivered at the presentations should address the five broad factors described above. Proponents are required to provide a written (and electronic) version of the Concept (slides) presented to the evaluation committee. The Ministry acknowledges that the final Solution may be substantially different from the Concept following the Joint Solution Definition Phase.

On completion of the Stage 3 evaluation process, the scores will be tallied, added to the scores coming out of Stage 2, and the short-listed Proponents will be ranked. The top two short-listed Proponents will be deemed the Preferred Proponents and invited to the Joint Solution Definition Phase of the JSP process.

4.7.2.5 Joint Solution Definition Phase Decision Criteria

Once the Preferred Proponents have been identified, a period of Joint Solution Definition activities will take place that culminates with both Preferred Proponents each completing a Solution and business case that describes their proposed commercial arrangement. As described in section 4.2.5, the Ministry will request that the Preferred Proponents present their Solution to the sponsor team where their Solution will be assessed against the business goals and objectives of the Ministry.

The decision criteria and governing process will be communicated to the Preferred Proponents upon the signing of the Joint Solution Definition Agreement, which must be signed prior to the commencement of the Joint Solution Definition Phase. One of the criteria will include taking into account the impact of the Software Contracts on the proposed Solution.

The Ministry’s executive (sponsor team) who was engaged with the Preferred Proponents during the iterative cycles of the Joint Solution Definition Phase will convene and determine which Preferred Proponent will be deemed the Successful Proponent and thereby invited to sign a Letter of Intent with the Ministry.

The Ministry will announce the Successful Proponent and the Due Diligence & Negotiation Phase will commence as described in section 4.3.


Page 53

JSRFP# SATP-033

4.8 PROPONENT RESPONSE GUIDELINES FOR STAGE 1 Proponents should provide as much detail as necessary in order to demonstrate (e.g., not how to do, but with proven specific examples) expertise in the pertinent criteria. This includes providing real examples with contact references that can validate a Proponent’s information as part of the reference checks. Proponents should carefully review the JSRFP definitions prior to proposal preparation.

4.8.1

4.8.2

References

Proponents should provide references, where requested in section 4.7.2 that support the information provided in the written proposal. Note - the same reference may be used in different sections of 4.7.2. The Ministry reserves the right to seek other references as part of its due diligence process.

Evaluation Criteria This section describes the evaluation criteria for Stage 1.

4.8.2.1 Capability - Proponent

a) Company Profile: Provide a company profile detailing background information, including the year established; parent company, if applicable; corporate strategic direction; area of recognized expertise in the marketplace; an overview of the company(s) corporate structure, including information of size, revenues, market and geographic coverage. Each Proponent should ensure that sufficient information is provided in its Proposal to support its compliance to the mandatory requirements. For proposals that include sub-contractors, similar information on each sub-contractor should be included as well as a clear description of the legal and operating relationship between all participants including two examples of joint project work between the parties. The sub-contractor information will not be evaluated.

b) Demonstrated experience in a working relationship with large unionized public sector clients:

Provide 2 examples with references, of long term (3 years and greater) working relationships with large (10,000 employees or greater) unionized public sector clients. Provide 1 additional example with references, of a long term (3 years and greater) working relationship with a public sector or a large (25,000 employees or greater) unionized private sector client. Describe the role and responsibility of the Proponent throughout these 3 working relationships.

c) Demonstrated experience in working with public sector legislation, policies, and regulations:

Provide 3 examples with references of challenges faced in previous projects relating to public sector legislation, policies, and regulations. Describe the method, approach, and solution for the issues described.

d) Demonstrated experience managing employee transitions (union and non-union): Provide 3

examples with references of the experience managing an employee transition project. Describe: the high level approach taken to transition employees, challenges faced, including number and type of proponent resources, the number of employees transitioned, union status of transitioned employees, geographic implications, services provided to employees, and retention metrics after 2 years. Proponents should also describe the critical success

Page 54

JSRFP# SATP-033

factors associated with their project examples and explain how their approach resulted with a mutually beneficial result for both organizations.

e) Demonstrated successful experience delivering services similar to POIM: Provide 3

examples with references of services similar to POIM being delivered by the Proponent. The examples should include: size, type and complexity of business for whom services are being delivered, length of time delivering these services, high level metrics (e.g. % availability of application, number of pay-cheques produced, client satisfaction ratings).

f) Demonstrated successful experience managing services similar to Payroll Services: Provide

3 examples with references of the Proponent managing services similar to Payroll Services. The examples should include: size, type and complexity of business for whom services are being delivered, length of time delivering these services, number of employees being managed, evidence of business process standardization and training curriculum.

4.8.2.2 Capability – PeopleSoft version 8.0 or higher

Demonstrated experience of application management services with PeopleSoft HRMS - release 8.0 or higher, stating modules, e-applications supported and integration with third party applications/products. Provide 2 examples with references for this demonstrated experience with PeopleSoft HRMS – Release 8.0 or higher. The examples must include payroll being processed for a unionized workforce. Include information that confirms the size and complexity of the engagement(s). Also include scope of application management services provided including any experience connecting PeopleSoft to other applications or systems.

4.8.2.3 Capability – Privacy Protection

Demonstrated experience ensuring privacy and security in the management of sensitive personal information. Each Proponent should describe its experience working with and providing protection over sensitive, confidential and personal information on behalf of their client. The Proponent should describe the prevailing law, policy or contractual obligations in relation to the information and what practices including quality assurance they had in place to provide protection and compliance.

4.8.2.4 Capability – Formulating a solution

a) Demonstrated experience in innovative deal structuring. Provide 2 examples with references where the implemented solution was innovative for the client. Describe why the deal would be considered innovative and the benefits derived by the client.

b) Demonstrated experience in designing and implementing innovative economic models.

Provide 2 examples with references where the implemented solution was economically innovative for the client. Describe why the deal would be considered an innovative economic model and the benefits derived by the client.

4.8.2.5 Capability – High-level vision

Describe at a high-level a workable vision to be applied to the POIM alternative service delivery and the potential Payroll Services alternative service delivery opportunity. This description

Page 55

JSRFP# SATP-033

should include (but not limited to): organizational structure, location of service delivery (include all services) staff, location of IT infrastructure, and approach to liaison with the Province. Proponents should briefly explain their vision and the principles they will use to ensure success.

4.8.2.6 Capacity

a) Corporate and financial capacity. Describe the Proponent’s corporate capacity including: number and type of employees in the application management services and business process service providing divisions, IT infrastructure magnitude and capacity, and financial capacity of the Proponent.

b) Demonstrated capacity & ability to manage investment risk. Describe 2 current examples

with references of the Proponent having the capacity and ability to manage investment risk in a similar project.

c) Demonstrated capacity to engage in long-term commercial arrangements. Describe the

capacity within the Proponent’s organization to manage a long-term (5-10 year) commercial arrangement similar to this alternative service delivery POIM opportunity and potential future Payroll Services opportunity. Capacity should include (but not limited to): proposed team structure and qualifications.

d) Demonstrated capacity to manage services similar to POIM and Payroll Services. The

Proponent should describe the qualifications of the key team members who would be dedicated to this opportunity. Describe the roles and responsibilities that they would be expected to perform.

e) Demonstrate capacity to engage in the POIM Project and potentially the Payroll Project.

Describe the Proponent’s capacity to participate in both opportunities. This should include the names, qualifications and experience relevant to the opportunities of all key team members.

4.8.2.7 Commitment

a) Commitment of Proponent’s staff to engage in the JSP process to conclusion. Describe the time allocated of the Proponent’s dedicated key team members (see Capacity (e)) to each phase of this JSRFP process: Proponent Qualification, Joint Solution Definition, Due Diligence, Contract Negotiations and Transition.

b) The Business Alliance is a principled and holistic driven relationship between the Ministry

and Partner designed to create and environment that facilitates and encourages a mutually successful commercial arrangement. Proponents should provide 2 examples where this sort of commercial relationship has been successfully implemented and should describe any problems that needed to be addressed in order to maintain relationship. Proponents should also state their commitment to the Business Alliance and explain what they would do to ensure success for all parties.

c) Commitment of Proponent to achieving the business goals of the Ministry and the business

issues of POIM. The Ministry’s business goals are described in section 1.3.3 and POIM’s business issues are described in 2.1.2. The Proponent should describe how they plan to align the Ministry’s goals throughout the Joint Solution Procurement process.

Page 56

JSRFP# SATP-033

APPENDICES

APPENDIX A - SAMPLE LETTER Letterhead or Proponent’s name and address Date

Ministry name and address

Dear Sir/Madam

Subject: Joint Solutions Request for Proposal – Payroll Operations & Information Management JSRFP# SATP-033 List any amendment nos. and dates

The enclosed proposal is submitted in response to the above-referenced JSRFP. Through submission of this proposal we agree to be bound by all of the terms and conditions of the JSRFP.

We have carefully read and examined the JSRFP and have conducted such other investigations as were prudent and reasonable in preparing the proposal. We agree that subject to the terms and conditions of the JSRFP we shall also be bound by statements and representations made in this proposal.

Yours truly

_____________________________ Signature

Name: _______________________

Title: _________________________

Legal name of Proponent: __________________________________ Date: ________________________

Page 57

JSRFP# SATP-033

APPENDIX B - RECEIPT CONFIRMATION FORM Payroll Operations & Information Management Project

Closing Date: November 6, 2003 Joint Solutions Request for Proposal No. SATP-033

Ministry of Management Services To receive any further information about this JSRFP please return this form to:

Attention: Huan Ngo Mail: Fax #: (250) 387-1399 Or: Email: [email protected]

Company:

Street address:

City/Province: Postal Code:

Mailing address, if different:

Phone number: Fax number:

Contact person:

E-mail:

We will be sending ________ representatives to the Proponents Meeting. (number) Representative 1:

Representative 2:

Others:

We will not be attending the Proponent’s meeting but plan to submit a proposal.

Unless it can be sent by fax or email, the Proponent should arrange for courier pickup of further correspondence about this JSRFP upon email notice by the Project’s designated contact. Signature:

Title:

Page 58

JSRFP# SATP-033

APPENDIX C - JOINT SOLUTION DEFINITION AGREEMENT The Preferred Proponents must enter into a Joint Solution Definition Agreement with the Province that will govern the actions of the Province and the Preferred Proponents during the Joint Solution Definition Phase, the Due Diligence & Negotiation Phase and the Contract Negotiation Phase. The Joint Solution Definition Agreement will include, but not be limited to, the provisions summarized below: 1. General representations, warranties and covenants; 2. Conflict of interest provisions including representations and warranties in respect of conflicts and

a requirement to implement a conflicts plan; 3. Evaluation process including formation of the evaluation committee; certain evaluation criteria

used to evaluate the Preferred Proponents; and the debriefing process; 4. The right of the Province to amend, modify or suspend the JSP process or suspend or cancel

negotiations with a Preferred Proponent; 5. Right of the Province to designate an alternate Preferred Proponent; 6. Obligation of Preferred Proponents to bear all of their own expenses; 7. Restriction on lobbying and on any contact with Ministry or Provincial personnel except as

authorized by the Province; 8. Due diligence covenants including certain rights of the Preferred Proponent to seek information

from the Province and the right of the Province to consult outside references and obtain third party information regarding the Preferred Proponent;

9. The Province being under no obligation to enter into a Final Contract; 10. No obligation for the Final Contract to be based upon the JSRFP and the ability of the Province

and the Preferred Proponent to enter into arrangements that exceed or only include part of the scope contemplated by the JSRFP;

11. Duty of the Preferred Proponent to act in good faith throughout the JSP process; 12. Information control room management provisions; 13. Confidentiality provisions including (a) the Province agreeing to keep detailed Solutions of the

Preferred Proponent confidential subject to reasonable exceptions in order to facilitate the JSP process and subject to the Freedom of Information and Protection of Privacy Act; and (b) the parties agreeing on processes for information to be released in certain circumstances to other stakeholders;

15. Privacy provisions; 16. Intellectual property provisions including ownership rights, representations, warranties,

indemnities, and cross licensing provisions; 17. The term of the JSP process, default provisions, termination rights and consequences of

termination or breach; 18. A summary of certain terms that would be required to be included in the Final Contract; 19. No representations or warranties from the Province; no liability of the Province for indirect or

similar types of damages; and a limit of liability of the Province equal to the reasonable direct expenses incurred by the Preferred Proponent;

20. No liability for errors or inaccuracies of the Province; 21. No assignment right for the Preferred Proponent; 22. Manner in which consortiums and their members are obligated to the Province; and

Page 59

JSRFP# SATP-033

23. General provisions including notice, governing law, entire agreement, nature of relationship, survival and execution.


Page 60

JSRFP# SATP-033

APPENDIX D - LIST OF DOCUMENTS These documents will be provided upon receipt of signed Confidentiality Form (see section 1.2.2.3).

*** 7_1 Custom Developed Applications

Important information: This list may include more information than required for the Proponents’ Proposals. The intent is to provide Proponents with a greater amount of information early in the JSRFP process to facilitate an understanding of POIM.

Page 61

JSRFP# SATP-033

APPENDIX E - BUSINESS PROCESSES IN DETAIL

AccountManager

DirectorApplication Management


CorporatePay & Leave

PayrollAccounting

Other

DirectorPayroll Services


ApplicationDevelopment

ExecutiveDirector

1. Executive Director

This position provides leadership for the Payroll Services and POIM/corporate human resources applications organization; leads the delivery of payroll services across the Province; directs the planning, operations and development of all corporate human resource information technology, including the transition to web-based technology; the implementation of employee self-service and management self-service. Provides advice and direction to a variety of stakeholders, both within the Shared Services Agency and within broader public sector, regarding the affect of technology on human resource and payroll activities.

The Executive Director is the business owner of the payroll and leave business functions and processes, and manages the design and delivery of computer technology to support both the human resource and payroll operations. The Executive Director leads the development and implementation of service and business plans related to payroll service delivery and is accountable for effective service delivery to clients. The Executive Director ensures legislative, contractual and client business requirements are reflected in the technology solution(s) through close linkages with central agencies.

The Executive Director maintains relationships with a number of key stakeholders:

• Ministries, to ensure service agreements are delivered for Payroll Services and POIM; • Payroll customers – to direct the delivery of quality payroll services, address issues and

increase customer base. • Office of the Comptroller General – to ensure governance and policy issues are addressed; • BC Public Service Agency – to provide advice and direction regarding human resources

business practices related to human resources applications; to ensure governance and policy issues are addressed through the directors that report to the position

• Shared Services Project Common Links – to manage the Payroll Shared Services business line;

• Treasury Board Staff – to ensure operational activities meet the expectations of Treasury Board;

Page 62

JSRFP# SATP-033

• External agencies (CCRA, WCB, BC Pension Corporation) – to ensure information is provided and/or received as required;

• Broader public sector – Chair of the BC PeopleSoft Public Sector User Group, represent BC Human Resource Information Systems at the Canadian national level; and

• Vendor community - serve as a Premier Reference Account for PeopleSoft.

2. Account Manager

Manager, Application Management

Database Administration Security Analyst Business Analysts Programmer Analysts

Director Application Management

With the inception of Solutions BC, the shared services agency, the position of Account Manager was established. This position is responsible for: client account management (service level agreements, problem resolution, identification of new/improved services, ongoing communication and client satisfaction), development and implementation of the marketing plan and securing new customers.

3. Application Management Section This section is responsible for providing quality IT services to satisfy the client's corporate human resources/Payroll business needs. This section provides application maintenance and operational support to ensure that the PeopleSoft and non-PeopleSoft environments are stable and available as specified in posted production schedules. The section consists of a Director of Application Management, Manager of Application Management, Security Administrator, Database Administrators, Systems Administrator, Programmer Analysts, Facilities Management Contractors, and Business System Analysts.

Facility Management Systems Administrator

a) Director, Application Management

The Director, Application Management is responsible for application management and production operations for PeopleSoft and non-PeopleSoft human resource and payroll applications. As the most senior IT position in POIM, the director manages an environment for the ongoing applications support and batch operations for PeopleSoft 8. The director plans, manages, and provide resources for assignments. The director manages 17 staff and 5 contractors. Five other contractors provide facilities management services which are outsourced to one company. The director is a key member of the: Payroll Services & POIM management team, Development Project Steering Committee, Directors of IT, and is the Acting Executive Director when required.

Page 63

JSRFP# SATP-033

The director is responsible for:

• Application Maintenance:

I. Delivering IT and production services to a level of quality defined in the service level agreements;

II. Implementing tax updates and service packs; and III. Planning for capacity.

• Production Operations:

IV. Completing 26 payruns each year; V. Completing nightly batch activities;

VI. Providing tier 2 client support; VII. Calendar and fiscal year end processing;

VIII. Business continuity planning; and IX. Responding to production operation problems that may arise.

• Development Projects:

X. Being a key member of the management team which provides daily senior management direction to development assignments; and

XI. Ensuring the provision of support including staff, database, and environments to development assignments.

• Corporate IT:

XII. Representing POIM in various corporate IT initiatives and committees.

b) Manager, Application Management This employee manages incident, problem and change management activities. The manager chairs the POIM Change Management meetings attended by the Business Operations Manager, Facilities Management Coordinator, Database Administrator and Lead Programmer. This position is also responsible for scheduling software implementations and ensures that standards are followed and ensures quality control. Approved changes and their implementation dates are communicated to POIM staff via email, the intranet and the operations calendar. The manager maintains the Operations documentation web site.

c) Database Administrators The database administration group includes 2 employees and 1-2 contractors. This group is responsible for managing the databases within the PeopleSoft and Oracle environments. They have a very good understanding of the PeopleSoft architecture, security set up, impact of system customizations, upgrades and database maintenance activities. There are 12 full volume and 2 smaller PeopleSoft environments with related backup areas. Specific activities include: • Process monitoring; • Database optimization and tuning; • SQL query analysis, tuning and optimization; • Defining and maintaining database standards for the Oracle environment;

Page 64

JSRFP# SATP-033

• Testing and upgrading to new versions of Oracle software and database related products;

• Database reorganizations, special load testing; • Capacity planning; • Supporting development projects; • Maintaining and ensuring adherence to the availability and use of all database

environments; • Maintaining an Oracle software version control system and ensuring that all

modifications are controlled and logged through this system; and • 24/7 support.

d) Security Administrator The Security Administrator, currently a contractor, is responsible for • Managing security policies and procedures; • Managing and maintaining the department security trees; • Defining and maintaining roles and permission lists; and • Managing linkages to corporate LDAP directories.

e) System Administrator The system administrator, currently one of the programmer analysts, takes a lead role in administering and monitoring the web and application server settings for PeopleSoft 8 and J2EE applications. This position requires a very good understanding of the technology associated with PeopleSoft 8 and J2EE and is responsible for: • Monitoring and managing the process scheduler, application server, web server; • Maintaining the security tree and Fast Views; • Applying Peopletools upgrades with the assistance of the facilities management group;

and • Evaluating emerging technologies in the systems development environment for

PeopleSoft. For example, evaluating PeopleSoft’s integration with other systems.

f) Programmer Analysts The programmer analysts (4 employees and 2 contractors) provide application, production and reporting support for batch and on-line environments. Extra development resources are pre-approved via a Request for Service Offering and can be contracted for specific tasks.

g) Business Systems Analysts There are 11 Business Systems Analyst supporting various applications and their responsibilities are as follows: • One BSA is the team leader; • Three BSA’s are responsible for PeopleSoft payroll; • Two are responsible for PeopleSoft human resources; • One is responsible for PeopleSoft benefits and leave; • Three are responsible for development assignments; and • Two are responsible for custom developed applications.

Page 65

JSRFP# SATP-033

The Business Systems Analysts provide: • Operations support; • Tier 2 support as required by the contact centre; • PeopleSoft maintenance (ensuring currency of the application); and • Participate in development projects as subject matter experts.

h) Facilities Management Contractors There is one contract for this service – the contract expires March 31, 2004. The number of contractors varies according to workload. The contracted company provides support services for the technical nTier infrastructure underlying all applications including Unix /Intel operations and web/application server management. They provide 24/7 support for batch operations including the automated payrun, nightly batch runs and nightly backups and refreshes to reporting and business continuity environments. Environments in use are: • Peoplesoft: 21 Sun servers Network attached Storage and Network infrastructure; and • Non Peoplesoft: 9 Sun Servers.

Primary Responsibilities include: • Unix server management; • Monitor computer operations environment and provide monthly metrics • Network connectivity / communications; • System backup and recovery management; • Implement network security and maintain approved firewall rules; • 24/7 emergency on-call service; • Problem management and resolution; • Participate in implementation planning; • Participate in capacity planning; and • Maintain system documentation.

4. Client Services Section

Client Services provides a full range of services to support 20,000+ end-users by providing training, documentation, helpdesk/client support, security administration, change management, communication and reporting support.

Training

Documentation

Contact Center

Security Administration

Communication ChangeManagement

Reporting Support


Page 66

JSRFP# SATP-033

a) Director, Client Services The Director, Client Services is responsible for all outward-facing services. The director manages a staff of 14, which includes 2- 5 external consultants. Primary services include planning and delivery of application training, planning and delivery of payroll business process training, documentation, helpdesk/client support, security administration, reporting support, communication services and change management. The Director is a key member of the: Payroll Services & POIM management team, Development Project Steering Committee, and is the A/Executive Director when required.

b) Training This section includes 2 employees and contractors and is responsible for:

Training delivery - The training section consists of two full-time trainers who provide payroll end-to-end training (business training through to PeopleSoft data entry training) and PeopleSoft Application training in the following subject areas: human resources, training administration and reporting. This end-to-end training ensures that payroll services employees receive the training required to do their job. This training is augmented by using the PeopleSoft context sensitive web-based learning assistant (WLA) and web-based training (WBT). The majority of training is instructor-led in-house courses that vary in length from a half day to two days (See document 3_2 in Appendix D). In total there are 12 courses that were developed and are being delivered on a regular basis. The department provides on-line training with 5 web-based courses, 8 web-based task simulations, and 3 online training guides. Audio-conferencing is also being used to bring training to our long distance clients. The CHIPS customized web-based learning assistant supplies context-sensitive help and access to training simulations directly from the CHIPS application. In 2002, CHIPS training consisted of 150 classroom days training for a total of 1101 participants. In addition, the training section provided group and one-on-one training for an additional 50 learners. Planning - The training section is responsible for the development of a training strategy for all training initiatives on applications developed and/or maintained by POIM. It is also responsible for planning, implementing and managing an annual training plan, managing the design, development and implementation of all training initiatives on applications developed and/or maintained by POIM. Employee Training - In addition the training section plans and manages all training and development requirements for POIM staff. Development Assignment Training – This section is responsible for planning, developing and delivering all training required for development assignments. The scope of this can range from small job aids (e.g. used on the 20,000+ project) to large province-wide classroom-delivered training sessions (e.g. for PeopleSoft 8 upgrade).

c) Documentation With 2 employees, the documentation team is responsible for:

Page 67

JSRFP# SATP-033

Information - The documentation team is responsible for the quality control and circulation of information internally within POIM and externally throughout the PeopleSoft/CHIPS user community consisting of approximately 20,000+ users. The documentation team focuses on developing and maintaining seven main web sites/applications: • The CHIPS home site (218 documents); • The CHIPS procedures manual (355 documents); • The CHIPS query developers' manual (22 documents); • The Web-based learning assistant (419 documents); • The Payroll administration manual (219 documents); • The ESS home site (21 documents); • The corporate human resources and payroll home site (under construction); • The benefits/leave administration manual on the horizon; and • Other assignment specific web sites – e.g.: multi-client and payroll realignment. Development projects - Internally, members of the documentation team are often assigned to projects, (i.e. ESS, Payroll Realignment, Multi-Client Positioning), to act as communication analysts and web design consultants. Co-ordination - Routine duties also include managing CHIPS table maintenance documentation and liaising with contact centre - payroll & human resources systems to identify and respond to user needs and systems issues. Liaising with CHIPS Client Support to identify and respond to user needs and systems issues also fall within the documentation team's scope. In many ways, the role of the documentation team can be summarized as a CHIPS information portal.

d) Contact Centre for Payroll and Corporate Human Resource/Payroll Applications With 7 employees, the Contact Centre has two distinct customer groups: • All employees who are paid via the PeopleSoft Application; and • All users of corporate human resources/payroll applications. The contact centre began as the CHIPS Help Desk in 1995. Since that time it has evolved to support all corporate human resources applications. Most recently, with the implementation of Payroll Services (October 28, 2002) and the implementation of PeopleSoft employee self-service functionality (April 2003), the contact centre is now responsible for Tier 1 employee assistance (approximately 31,000). Marketing for the payroll contact centre is work in progress. The contact center responds to an average of 2593 e-mails and 1296 phone calls each month. These issues are received by various means; telephone, e-mail, on-site, voice-mail and pager. The contact centre maintains an escalation routine for determining the severity level of alert tickets and monitors the progress of alerts up to closure. The RemedyAR® help desk tool (hosting provided by Common IT Services) is used to record, categorize, assign and report on all CHIPS alerts. The contact centre analysts successfully resolve 85% of all alerts and assign Tier 2 alerts as required. The Contact Centre is also responsible for broadcasting information to the employee/user community and compiling statistical information on the numbers and types of alerts to determine immediate or future training requirements. By referring clients to the documentation site(s), the contact centre also provides a quality assurance role for documentation.

Page 68

JSRFP# SATP-033

e) Reporting This section has 1 employee who provides the POIM call centre with Tier 1 & Tier 2 support including report generation from PeopleSoft databases. This position also provides reports for POIM and Payroll Services. The BC Public Service Agency has a Corporate Reporting section, this position does not duplicate the services mentioned above.

f) Security Administration The security administrator is an employee who is responsible for the day-to-day security for the users of the PeopleSoft Application. Day-to-day security encompasses setting up new users, terminating users, changing current security status and changing permissions. The security administrator also liaises with Ministry security administrators and POIM security analyst and database administrators to assist with troubleshooting issues. The security administrator ensures, through a review process, that user access levels are approved by an appropriate client authority and comply with job functions. The security administrator also monitors the usage of user ID’s and tracks trends to determine future security requirements. PeopleSoft security is authorized via central security in CITS (Common IT Services division) via LDAP. Security is authorized against an employee’s workstation account, which is centrally maintained at CITS. There are currently 20,000+ Operator ID’s in the system and 30 security profiles. A list of security profiles can be found in document 5_2 in Appendix D. The Kronos security requirements will be determined during the Kronos implementation project, which is currently underway.

g) Communication & Change Management Services Change management services are provided by 2 – 3 contractors as required. More intensive communication services are typically linked with initiatives requiring significant change management. An example of this would be the implementation of employee self service for time capture of payroll data. Generally, change management and communication are deliverables under a development assignment; however, the Client Services section of POIM manages the supply of these services to all development projects in a coordinated and consistent manner.

5. Application Development Section The POIM project management team formalizes all development projects. Currently there are 3 employees in this team on a regular basis. More employees and contractors are brought in to coincide with the number and size of development assignments. Contractors have managed a Project Management Office on a part-time basis. The role included scheduling projects, providing input to project documentation (charters, statements of work) and ensuring resources are assigned to projects. The management team is available daily 8:30 – 9:00 AM to provide direction for any project requiring management direction. Additionally, all project managers submit project status reports at a bi-weekly POIM project review meeting that is attended by client sponsors.

Page 69

JSRFP# SATP-033

POIM employees engage in supporting roles in application development projects. These roles include: Business Systems Analyst and Programmer. Contractors are hired as project managers.

• POIM issued an RFP last year for a PeopleSoft development partner; IBM Canada was the successful vendor. This PeopleSoft development contract expires October 31, 2005 and may be renewed for a two-year period. If there are any project agreements in place, these may be terminated by the Province at any time by giving 60 days advance written notice. Additionally, The Master Agreement states that the Province may terminate the M.A. “on giving written notice”. Employees will join the contracted resources for development projects, thereby allowing the Province to lower costs.

• POIM selected a project management contractor from a Request for Service Offering for the non-PeopleSoft development contracts. The Request for Service Offering list expires March 31, 2004.

6. Business Operations Section The business operations area comprises of five main areas: budget management, performance measurement & activity based management, customer billing & contract management, payroll accounting and general office management. This department provides support to POIM as well as Payroll Services.

Budget Management Performance Measures Customer Billing Office Management


a) Director, Business Operations

The director is the chief financial officer for the division who is responsible for directing the administration of payroll and corporate human resources applications financial functions. These responsibilities include: • The compilation, monitor, and control of annual capital, operating, and recovery budgets; • The management of contract planning and administration functions; • The management of all divisional administrative services; • The evaluation and negotiation of service agreements/contracts with public sector

associations, multiple employers, individual agencies, and organizations; and • The development and monitoring of activity based costing, activity based management,

performance measures, and balanced scorecard.

The director provides advice to the Executive Director, Assistant Deputy Minister, and senior executives on human resources information system and payroll requirements. The director ensures that shared payroll and human resources information systems services for the Province are prudently administered.

Page 70

JSRFP# SATP-033

The director is a key member of the: Payroll Services & POIM management team, Development Project Steering Committee, Senior Financial Officer Council and is Acting Executive Director if required.

b) Budget Management The budget manager with the help of a financial officer (1.5 employees) is responsible for the management and co-ordination of all budgets, including capital, operational, recoveries, and full-time equivalents (FTE). The manager is the critical link in ensuring that the organization meets all financial reporting requirements and stays within allocated budget targets. They provide advice, expertise, and guidance on all aspects of financial planning and budget development. The manager identifies potential issues or problem areas and recommends pro-active solutions. The position is responsible and accountable for:

• Financial forecasts and budget analysis; • Developing and analyzing corporate reporting requirements to determine approaches and

tools; • Developing regular, standard, and ad hoc reports to meet client and Treasury Board

requirements; • Developing consolidated reports combining data from multiple sources; • Assisting in the preparation, co-ordination, and presentation of annual budgets to Treasury

Board; • The management of budgets at the vote, sub-vote, and sub-sub-vote level; • The preparation of Treasury Board Submissions, briefing notes, contract pre-approvals,

etc.; and • Budgeting and financial reporting on special projects and new initiatives.

c) Performance Measures and Activity Based Management This area with one dedicated employee has just begun to develop performance measures and activity based costing. The responsibilities include:

• On-going monitoring, assessment and in-depth analysis of Payroll Services and corporate human resources applications performance including the identification of significant issues and recommendation of solutions;

• Develop the costing and pricing strategy for services; and • Provide operational business performance reporting which includes the development of

the Balance Scorecard.

d) Customer Billings and Contract Administration This area involve partial time of an employee who is responsible for:

• Preparing service contracts and amendments; • Monitoring service contracts including the development contract; and • Preparing client billings for Payroll Services & receivable clients.

Page 71

JSRFP# SATP-033

e) Office Management & Administration The office management area consists of 3 employees: a receptionist, an administrative assistant, and an office manager. The area is responsible for maintaining the reception area and supports management and staff.

The office manager is responsible for:

• Supervising; • Processing purchase orders and invoices; • Administering accounts payable and accounts receivable; • Responding to vendor inquiries; • Reconciling accounts; • Making travel arrangements for the division; and • Overseeing facility changes as required including telephones, furniture needs, and

equipment. The receptionist is responsible for reception duties, in and out-going mail, boardroom bookings, ordering supplies, prepares meeting rooms, and files correspondence using Administrative Records Classification System and Operational Records Classification System.

The administrative assistant supports the POIM management team. The position manages the Executive Director’s calendar, travel arrangements, personal correspondence and provides administrative support for Directors of Client Service, Application Management, and Business Operations. Additionally the position will assist with office management duties as required.

7. Payroll Accounting

This section is under consideration for inclusion/exclusion from the POIM Project.

Currently reporting to Payroll Services, Payroll Accounting has 3 employees and is responsible for ensuring proper control and accurate accounting of the payroll for the Province. Controls include reconciliation of liability accounts, reconciliation of the bank account, final check on all large pay cheques before final confirmation, balancing the General Ledger Interface with PeopleSoft, and running the PeopleSoft tax audit reports. This office defines the business requirements for the PeopleSoft General Ledger Interface with the province’s Oracle Financials.

Bi-weekly, the office processes payroll deduction remittances for 20 suppliers. These include unions / associations, federal government agencies, bus pass programs, Canada Payroll Savings program, deferred salary payment and community service fund.

Prepare monthly accounts receivable billings for PeopleSoft payroll clients external to the Province. The transactions are posted to individual accounts receivable accounts in the Corporate Accounting System. These clients download their payroll data for importing to their financial systems using either Query or Crystal.

Payroll Accounting Analysts are responsible for all adjustments to the payroll and general ledger records for the province. The majority of these adjustments are for salary overpayments for terminated employees. The office is responsible for identifying the debit, notifying the employee, and arranging the repayment. There are over 1,000 overpayments processed each calendar year.

Page 72

JSRFP# SATP-033

The manager is the business expert for the PeopleSoft general ledger interface to the province’s Oracle Financials and is responsible for payroll at fiscal year end. This position provides expert advice to clients and central agencies on all payroll accounting issues. It is the primary contact for the Canada Customs and Revenue Agency payroll accounts.

8. Corporate Pay & Leave

This section is under consideration for inclusion/exclusion from the POIM Project.

Currently reporting to Payroll Services, this section has 4 employees and is responsible for ensuring corporate consistency in pay, leave, and human resources related payroll transactions for the Province. The payroll administration manual was written and is maintained by this group. The manual sets the standards for payroll procedures for Payroll Services.

The group provides expertise and direction on payroll business requirements for the corporate human resource information and payroll system (PeopleSoft).

The senior analyst works with Labour Relations and Directors of Human Resources to assess the impact of collective agreements and human resource policy on payroll. This position must have the knowledge and skills to articulate the needs of payroll during contract negotiations.


Page 73

JSRFP# SATP-033

APPENDIX F - THE PAYROLL PROJECT As of October 28, 2002, payroll transaction processing is performed by over 165 employees in Payroll Shared Services - Solutions BC. Public Service Agency is responsible for human resource transactions. It is important to recognize the close transactional linkages performed by human resource and payroll staff (e.g. employee hire, employee transfer, position reclassification, maternity leave, workers compensation claims, etc.) The majority of work in processing payroll transactions occurs before the information is entered into the PeopleSoft system. The work consists of the application of complex collective agreement rules. To add complexity, rules for similar instances are not the same across employee groups (BCGEU, Professional Employees Association, Nurses, Queens Printers, Excluded Managers). This section is responsible for the data entry of payroll and leave information. There are approximately 700,000 forms data entered each year. This area is undergoing its second year of major transformation as a result of the Payroll Vision. The transformation approach addresses three areas: standard business processes, organizational structure, and technology. The current focus is primarily on technology. The Payroll Vision is in its second year. Major changes continue to evolve within Payroll Services. 1. Payroll Related Human Resource Transactions

Human Resource Technicians enter employee related data into PeopleSoft. Some of the data entered impacts payroll. For example; employee hire, transfers, promotion, maternity leave etc.. Currently, payroll checks the work that human resource technicians have entered and both parties file the same copies of information. An assignment is underway at this time to move payroll related human resource transactions from the BC Public Service Agency into Payroll Services, thereby creating an end-to-end process.

2. Benefits Administration

This section is responsible for ensuring employees are registered in the appropriate benefit plans at the appropriate level. This work is very closely tied to payroll because of related payroll deductions and taxation implications.

Page 74

JSRFP# SATP-033

APPENDIX G - STAKEHOLDERS The following section describes the various stakeholders involved with this opportunity.

H R & P a y r o l l in G o v e r n m e n t T o d a y

M in is t r y o f M a n a g e m e n t S e r v ic e sM in is t e r

B . C . P u b l ic S e rv ic e A g e n c y1 . C lie n t S e rv ic e s f o r H R

2 . C o rp o ra te H R S t ra te g y a n d P la n n i n g

3 . E m p lo y e e R e la t io n s

4 . P a y ro ll O p e r a t io n s & I n f o rm a t io n M a n a g e m e n t D iv is io n * P O I M P ro je c t

S o lu t io n s B C - S h a r e d S e rv ic e s1 . C o m m o n I T S e rv ic e s

2 . C o rp o ra te A c c o u n t in g S e r v ic e s

3 . S tra te g ic A c q u is it io n s & I n te lle c tu a l P ro p e r ty M a n a g e m e n t

4 . P ro c u re m e n t & S u p p ly S e rv ic e s

5 . P a y ro ll S e r v ic e s * P a y ro l l P ro je c t

* M a n a g e d b y t h e E x e c u t iv e D ire c to r , P a y ro ll S e rv ic e s & C o rp o ra te H R A p p lic a t io n s

1. Solutions BC – A Shared Provider, Ministry of Management Services

The Ministry is responsible for Solutions BC - Shared Services within the Province. Solutions BC manages the budget and administers the payments for goods and services. Solutions BC is responsible for vendor contract management and has the right to audit at any time though out the contract. Solutions BC performs the monitoring of service levels provided to the province by private sector supplier(s) in accordance with their service contract(s).

The shared services provided by Solutions BC include:

• • • • • •

POIM (described in detail in a later section); Payroll Services (described in a later section); Common IT Services; Strategic Acquisition & Intellectual Property Management; Procurement & Supply Services; and Corporate Accounting Services.

a) Common Information Technology Services

Common Information Technology Services (CITS), a division of Solutions BC within the Ministry, provides information technology and telecommunications services to the Province. CITS is responsible for the management of the Province's common information technology infrastructure services, including:

• data centre services; • telecommunication network services; • IT infrastructure security and anti-virus protection services; • electronic mail and directory services; • common IT help desk; electronic service delivery, and; • Province-wide application support.

Page 75

JSRFP# SATP-033

The functions of the division include the aggregation of the Province's demand for common IT services, planning & engineering for those services, service implementation and operations, and service management with IT vendors and customers. For more information see: http://cits.gov.bc.ca/

b) Strategic Acquisitions & Intellectual Property Management Strategic Acquisitions and Intellectual Property Management division include two branches: the Strategic Acquisition and Technology Procurement Branch and the Intellectual Property Program.

The Strategic Acquisition and Technology Procurement Branch provides a number of services to the Province and the public including:

• Provide clients with advice on business and procurement planning. • Provide advisory Services and end-to-end solutions on acquisition of complex

services, contract negotiations and ongoing supplier management. • Provide advisory services and end-to-end solutions on alternate services delivery,

public private partnerships and project financing • Research, develop and implement alternative procurement methods such as the

Province’s Joint Solutions Procurement (JSP) • Provide independent, professional review of procurement or contracting projects

including acting as “Fairness Monitor” on procurements managed by client organizations

• Develop and deliver procurement-related training seminars for program and contract administrators and managers

• Provide strategic acquisition and technology procurement services using in-house exclude staff and contracted procurement consultants

The Intellectual Property Program manages the licensing and sale of the Province-owned intellectual property. This extends from the identification of properties with commercial potential, through the selection of a private sector licensee, through the negotiation of the license agreement, and the administration of the license agreement throughout its term. The Intellectual Property Program also serves as the point of contact for publishers, universities, libraries and other interested parties who seek permission to reproduce and distribute material in which the Province owns the copyright.

c) Procurement & Supply Services Procurement Supply & Services provides a number of business services to Provincial ministries and other public sector organizations. The organization acquires goods and services and provides purchasing advice to public institutions. The organization ensures its procurement is fair, ethical and prudent. The organization may provide advice in service contract negotiations and service contract reviews with private sector supplier(s).

d) Corporate Accounting Services Corporate Accounting Services provides application maintenance, production operations and development for ministries using the Province’s Oracle financial system. POIM sends payroll information to the Oracle Financial System via interface on a bi-weekly pay period basis.

Page 76

http://cits.gov.bc.ca/

JSRFP# SATP-033

2. BC Public Service Agency, Ministry of Management Services

The BC Public Service Agency (Agency) provides corporate Human Resource leadership to the Province. On April 1, 2003 the BC Public Service Agency consolidated all human resources (transactional and advisory) services from ministries/organizations into one organization. The Agency is responsible for Human Resources Client Services, Corporate HR Strategy & Planning and Employee Relations. Benefits, a part of Employee Relations, includes POIM. POIM services are delivered under an informal Memorandum of Understanding with Solutions BC and Ministry of Finance; thereby, consolidating application and IT services.

The BC Public Service Agency, in partnership with ministry human resources clients, is responsible for identifying and specifying ongoing human resources information systems requirements. The BC Public Service Agency is responsible for the human resources systems development plan as it relates to corporate human resources applications. The BC Public Service Agency will work in co-operation with Solutions BC and the private sector supplier(s) in implementing new products and services.

Until such time as a successful vendor has been selected, POIM will continue to operate, maintain and develop corporate human resources and payroll applications for the province. There will be one transition of these functions directly to the successful proponent(s) or Solutions BC, if a successful proponent is not found.

The current roles and responsibilities between Solutions BC and the BC Public Service Agency is defined as follows:

Role Solutions BC - POIM

BC Public Service Agency

Human resource PeopleSoft transactions training services Payroll communications

Set payroll practices/standards

Payroll training

Vendor/client liaison/contract management

Budget management

PeopleSoft operations & maintenance payroll plan

PeopleSoft payroll systems development plan/management PeopleSoft & corporate human resources applications operations & maintenance human resources plan PeopleSoft & corporate human resources applications human resources systems development plan Systems development priority setting

Human resource application implementation

The BC Public Service Agency is the single largest client for POIM.

Page 77

JSRFP# SATP-033

3. Ministries Ministries are the main customers of POIM and Payroll Services via Solutions BC. They utilize the Employee Self Service features of the PeopleSoft Application. Ministries have also retained strategic human resources functions specific to their unique ministry needs. Strategic Human Resource services within the Ministries utilize some the of the smaller corporate human resources/payroll application services developed by POIM for the BC Public Service Agency. There is a capacity for Ministries to generate standard and/or ad hoc reports from PeopleSoft and to a lesser degree from the other corporate human resources applications. Ministries have established liaison (typically via committee structures) with Solutions BC and the Public Service Agency.

4. Non-Ministry Customers There are a number of organizations that purchase human resources/payroll application services while others purchase both human resources/payroll application services and payroll transactional services. These organizations are invoiced separately for each service.

5. Chief Information Office, Ministry of Management Services The Chief Information Office sets corporate IM/IT standards for the Province. The Chief Information Office recognizes the PeopleSoft Application as a strategic corporate application and data warehouse of the Province’s human resource and payroll information.

To ensure interoperability, the PeopleSoft implementation must utilize the corporate IM/IT standards, services such as the Enterprise Portal, the Integration Broker and other corporate facilities defined by the Chief Information Office.

6. Office of the Comptroller General, Ministry of Finance

The Office of the Comptroller General, under the direction of the Comptroller General has overall responsibility, under the Financial Administration Act, for the financial system within the Province. This includes the establishment and maintenance of appropriate financial policies and controls across the Province, processed by the PeopleSoft Application is required to comply with these policies and control requirements. The Office of the Comptroller General also has the right to undertake financial control and other performance audits as required. This includes following the flow of public monies disbursed through other organizations and contractors.

7. Information & Privacy, Ministry of Management Services

All records of the Province are defined in the Freedom of Information and Protection of Privacy Act (FOIPP) and subject to the provisions of the Act. The Act authorizes access to records except in specific circumstances and governs the collection, use and disclosure of records held by the Province. This includes personal information contained in the human resource and payroll PeopleSoft Application. As required by FOIPP, the Information, Privacy, Security and Records Services Section of the Ministry of Finance will conduct a Privacy Impact Assessment (PIA) prior to contract negotiations and will update the PIA as the contract progresses.

Page 78

JSRFP# SATP-033

APPENDIX H – PROTECTION OF PRIVACY

Contractors’ Guide to the Freedom of Information and Protection of Privacy Act What is the Freedom of Information and Protection of Privacy Act? The principles underlying the Freedom of Information and Protection of Privacy Act are accountability and protection of privacy. The Act provides the public the right to access government records and prohibits the unauthorized collection, use or disclosure of personal information. How does the Act affect contractors or potential contractors? The Act applies to all records in the custody or control of local and provincial bodies in British Columbia. As a contractor or a potential contractor, you produce records that will be in the custody or control of the ministry. These records are subject to the access and privacy provisions of the Act.

Information you create or submit to the ministry, even though you may have intended it to be confidential, may be disclosed under the Act if it is requested by a member of the public. This may include information about bids or proposals, as well as information concerning contracts with the ministry, unless the information meets the requirement for one of the exceptions to disclosure discussed later in this brochure. How are custody and control defined? Having custody of a record generally refers to having physical possession of it. But having custody does not necessarily mean having control of the record. However, the person or organization with custody of a record is usually considered to have control. Control refers to having the power or authority to manage, restrict, regulate or administer the use or disclosure of the record. If the ministry has custody of a record, we must respond to requests for access to the record by producing those parts of the record that are not excluded from disclosure.

Although a contractor may have custody of a record, the ministry could have control over it if such control is stipulated in a contract or is granted to the ministry by a specific statutory right of access. In this case, the ministry is responsible for handling access requests, and the contractor is required to produce the record for review by the ministry. The ministry will then disclose those parts of the record that are not excluded from disclosure. What is a record? A record is any information recorded or stored by graphic, electronic, mechanical or other means. A record could be a book, paper or electronic document, map, letter, or voucher. The ministry tries to specify which records will be under our control by identifying them in the contract. However, records do not have to be specifically identified to be subject to the Act if they are requested.

Page 79

JSRFP# SATP-033

What records are subject to the Act? There are three types of records that involve contractors: 1. Records in the custody and control of the contractor (e.g., payroll and personnel records of the

contractor’s employees). 2. Records in the custody of the ministry (e.g., proposals or bids from contractors). 3. Records under the control of the ministry, which may be in the ministry’s or in the contractor’s custody

(e.g., records created by the contractor while performing the services identified in the contract).

All records in the custody or control of provincial or local governments are subject to the access and privacy provisions of the Act. Records that are not in the custody or control of the province are not subject to the Act. What are contractors’ responsibilities regarding records in their custody? A contract may require you to collect personal information, such as a person’s name, address or opinions. If that information is used to make a decision directly affecting the individual, records must be made accessible to that individual for at least one year.

As a contractor in custody of personal information which is covered by the Act, you have an obligation to protect it against risks, such as unauthorized access, collection, use, disclosure or disposal, by taking reasonable security precautions.

If records are under the control of the ministry, you must make them available according to the terms of the contract. The ministry may specify in your contract any requirements to make records available for a longer time period. When records are requested under the Act, you must forward them to the ministry FOI staff. Ministry staff will review the records to determine which parts are excluded from disclosure. What happens when the ministry receives a request for information? Although the Act gives the public access to information, exceptions to disclosure exist that may apply specifically to you. The Act protects third parties, such as contractors, by prohibiting disclosures that would harm the business interests of a third party or invade a third party’s personal privacy.

The ministry reviews each record requested under the Act to consider whether its release will harm a third party. If there is a risk of harm, the ministry does not release the information. If the ministry does not consider a risk of harm to exist, we may advise the contractor of our decision to release the information.

If it is unclear whether the records should be released, the ministry will give you an opportunity to show that disclosure could harm your interests. You will be provided with a copy of the requested records and asked for your views about whether they should be disclosed. The Act gives you 20 days to respond, in writing, to the ministry.


Page 80

JSRFP# SATP-033

Contractors’ Guide to the Freedom of Information and Protection of Privacy Act (Continued) It is your responsibility to demonstrate that disclosing the requested information could harm your business interests. You should undertake a line-by-line review of the documents in question and provide a detailed explanation to prove that releasing all or part of these documents could be harmful to you.

After receiving your views on disclosure, the ministry has 10 days, under the Act, to reach a final decision and advise you of it. If you are not satisfied with the ministry’s decision, the Act gives you 20 days to request a review by the Information and Privacy Commissioner. What is considered harmful to business interests? To qualify for an exception under the Act, contractors must demonstrate that there is a real and significant expectation of harm to their business interests. To be withheld from disclosure, a record must meet each of the three conditions outlined in Section 21 of the Act. Briefly, these are:

1. The record, if disclosed, would reveal contractors’ trade secrets or their commercial, financial, labour relations, scientific or technical information.

2. The record is supplied in confidence. (See explanation following these conditions.)

3. The record, if disclosed, could reasonably be expected to cause one of the following:

• result in significantly harming a contractor’s competitive position or significantly interfering with a contractor’s negotiating position

• result in certain information no longer being supplied if similar information is requested for disclosure

• result in undue financial loss or gain to any person or organization

• result in revealing certain information related to a labour relations dispute

Stamping a record “confidential” or explicitly stating that information is being submitted in confidence is helpful. However, evidence must also exist to demonstrate that the information needs to be treated as confidential and/or has been treated as such in the past. What is considered harmful to personal privacy? The privacy of companies under contract is not protected under the Act. There may be instances, though, in which you may submit personal information about your employees that is subject to the privacy provisions of the Act. Or you may collect personal information about certain individuals on behalf of the ministry.

Here are some examples when disclosure of personal information is presumed to be an unreasonable invasion of a third party’s privacy:

1. The personal information relates to a third party’s employment, occupational or educational history (e.g., resumes of individuals attached to a proposal).

2. The personal information describes a third party’s finances, income, assets, liabilities, net worth, bank balances, financial history or activities, or credit worthiness.

3. The personal information consists of personal recommendations or evaluations, character references or personnel evaluations of a third party (e.g., a psychological assessment of a ministry employee prepared by a consultant).

Page 81

JSRFP# SATP-033

4. The personal information consists of a third party’s name, address or telephone number and is to be used for mailing lists or solicitations by telephone or other means (e.g., the names of individuals who attended a public information meeting).

If you are a contractor who operates out of your home, you should be aware that if your business address is also your residential address, the ministry would not generally consider this to be personal information.

You should also be aware that the names of your employees may sometimes be subject to disclosure. Before you bid or submit a proposal to the ministry, ask yourself these questions: • Are you prepared to have information you create or submit to the ministry disclosed to the public if it is

requested under the Act and is not covered by an exception?

• Do you understand which records will be under the control of the ministry?

• Do you know which records you will be expected to keep and for how long?

• Will you be collecting personal information?

• Are you familiar with the security standards for storing personal information?

If you are thinking about doing work for the ministry, consider the implications of the Freedom of Information and Protection of Privacy Act. Discuss your concerns with the Office that issued the tender or request for proposal. Or call the FOI Branch at (250) 356-9769 or write to:

Information, Privacy, Security and Records Management Ministry of Finance

617 Government Street Victoria, British Columbia

V8W 9V1

Page 82

APPENDIX I - MINISTRY ORGANIZATIONAL CHART

JSRFP# SATP-033

Page 83