August 29, 2012 Submitted by: ROBERT KINSEY Major Account Manager Public Sector, Southeast Region Pitney Bowes Management Services 2540 West Executive Center Circle Tallahassee, FL 32301-5015 USA M: 850.408.5434 | F: 203.617.2776 www.pb.com Robert.Kinsey@pb.com

Interim Revised Reply ITN # 01F12GC1

Florida Department of Children and Families

August 29, 2012 Ms. Leah McCarthy Procurement Manager Florida Department of Children and Families Economic Self Sufficiency Services Program Office 1317 Winewood Blvd., BL. 3, RM.473 Tallahassee, FL 32399-0700

Reference: ITN # 01F12GC1: Interim Revised Reply (IRR)

Dear Ms. McCarthy:

Pitney Bowes Management Services (PBMS) is pleased to submit this Interim Revised Reply (IRR) to the Florida Department of Children and Families.

Sincerely, Glen McDonald Director of Contracts Pitney Bowes Management Services, Inc.

Florida Department of Children and Families Table of Contents Interim Revised Reply ITN #01F12GC1

Table of Contents

FOCUS AREA A – REVISED PROJECT PLAN ............................................................. 1

FOCUS AREA B – REVISED PRICING ......................................................................... 3

FOCUS AREA C – REPORTING CAPABILITIES .......................................................... 5

FOCUS AREA D – IMPACT TO FACILITY LOCATION ................................................. 6

FOCUS AREA E – COST DRIVERS (CONFIDENTIAL) ................................................ 8

FOCUS AREA F – INNOVATIONS ............................................................................... 10

FOCUS AREA G – EXCHANGE OF INDEXED DATA ................................................. 13

APPENDIX A – REVISED PROJECT SCHEDULE ...................................................... 15

APPENDIX B – SAMPLE DASHBOARDS AND REPORTS ........................................ 16

Florida Department of Children and Families Focus Area A – Revised Project Plan Interim Revised Reply ITN #01F12GC1

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Focus Area A – Revised Project Plan

Item Vendor Instructions A Provide an updated project plan using Microsoft Project (.MPP) that details those

activities needed to meet the Mail Scan transition and conversion date of 12/31/2012. Please clarify those areas that could be problematic and create risk for meeting the project timelines. In addition, please identify any assumptions being made that the DCF should validate. Vendor Response: Included with this response as Appendix A is a project plan in MS Project format that addresses the transition of mail scan services with a service conversion date of 12/31/2012. All transitions include risks. An important aspect of our commitment is our proposed approach to risk management and risk mitigation—both in transition activities and in ongoing mail processing and imaging operations. Our comprehensive and consistent approach will ensure that all aspects of the project are evaluated for risk.

PBMS will develop and maintain a formal Risk Management Plan covering DCF mail, scanning, and indexing services. The plan will define the roles, responsibilities, processes, procedures, tools, and documentation that comprise our ongoing program of risk identification, assessment, mitigation planning, mitigation execution, and tracking.

Risk Mitigation Strategy Staffing/recruiting is not completed in accordance with staff model and project timeline

PBMS will “over-hire” to ensure adequate staffing is in place and trained

Transfer of institutional knowledge not completed on time

PBMS will work with DCF to accomplish knowledge transfer and will identify concerns as soon in the timeline as possible so that corrective action can be taken

Florida Department of Children and Families Focus Area A – Revised Project Plan Interim Revised Reply ITN #01F12GC1

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Facility not ready for processing in accordance with project timeline

Utilize PBMS national processing center

DCF validation data set and connectivity/data transfer are not ready and tested per the project schedule

PBMS will work with DCF to complete the design and testing of the data set and connectivity/data transfer methods

Fax server deployment matching to current DCF numbers is not completed on time

As an alternative, PBMS could utilize the DCF fax server on an interim basis, and accomplish the transition of the fax server over a separate timeframe

Requirement and scope changes cause project delay

Change management process will be utilized to manage changes and project timeline impact

Assumption: • Contract award by Oct 1st, providing for a 90-day transition period • During the transition period, DCF will make resources available to work with

PBMS for the purposes of: o Transfer of institutional knowledge and technical policies and

requirements o Review and approval of project deliverables in accordance with the

agreed upon project timeline o Data transfer testing o Training personnel to support “train the trainer” o Overall process confirmation and user acceptance testing

• DCF will assign a project manager

Exhibit 1 - Revised Project Plan

Florida Department of Children and Families Focus Area B – Revised Pricing Interim Revised Reply ITN #01F12GC1

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Focus Area B – Revised Pricing

Item Vendor Instructions B Provide tiered pricing using the standardized definition of a Document, as defined

by the DCF in its clarification documentation (see attached), is applied and utilize the tables below considering two scenarios. Scenario 1 has an SLA of within 4 hours. Scenario 2 has an SLA of within the same day. (This will exclude emergency requests which are nominal). In addition, please identify any assumptions being made that the DCF should validate. Vendor Response: The pricing is included in the table below. Assumptions:

• DCF will make a consolidated data file available to PBMS. • Approximately 5% of incoming electronic pages will include multiple

documents and will require splitting or cropping/cloning. • The documents received by facsimile and PDF will be 60% typed and 40%

handwritten. • The documents received via mail will be 10% typed and 90% handwritten. • DCF will be responsible maintaining the current facsimile numbers and the

associated costs for these numbers. The PBMS facsimile server solution will receive facsimiles via these numbers.

• The PBMS solution will not be resident on the Florida DCF network. • During the implementation and transition period, DCF will provide

appropriate project management and subject matter expert (technical, procedure and rules, training) resources as defined in the project plan that will be developed and agreed upon.

• Post processing, PBMS will retain images for an interim period of time to ensure successful ingestion into the DCF applications; within the “per document” price this will not exceed 30 days.

• Postage associated with any shipping or mailing of any processed documents is not included within the “per document” price.

• A 4 hour SLA is defined as 4 business hours from the time of receipt M-F 8am to 5pm

• Same day SLA is defined as 9 business hours from the time of receipt M-F 8am to 5pm

Exhibit 2 – Revised Pricing

Florida Department of Children and Families Focus Area B – Revised Pricing Interim Revised Reply ITN #01F12GC1

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SCENARIO 1: 4 HOUR SLA

Mail / Fax / Scan / Image Optimization / Index

Service Year 1** Year 2** Year 3** Optional

Year 4 ** Optional Year 5 **

Optional Year 6 **

Volume Cost per Document*

Cost per Document*

Cost per Document*

Cost per Document*

Cost per Document*

Cost per Document*

0 to 2 Million $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 2 to 4 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 4 to 6 $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 6 to 8 $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 8 to 10 $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 10 to 12 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 12 to 14 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 15+ $0.235 $0.235 $0.235 $0.235 $0.235 $0.235

* Pricing is to be based on the definition of a document as defined in the clarification document ** Year is defined as any twelve month period

Exhibit 3 – Scenario 1 - Revised Pricing – 4 hour SLA

SCENARIO 2: SAME DAY SLA

Mail / Fax / Scan / Image Optimization / Index

Service Year 1** Year 2** Year 3** Optional

Year 4 ** Optional Year 5 **

Optional Year 6 **

Volume Cost per Document*

Cost per Document*

Cost per Document*

Cost per Document*

Cost per Document*

Cost per Document*

0 to 2 Million $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 2 to 4 $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 4 to 6 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 6 to 8 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 8 to 10 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 10 to 12 $0.235 $0.235 $0.235 $0.235 $0.235 $0.235 12 to 14 $0.235 $0.235 $0.235 $0.235 $0.235 $0.235 15+ $0.23 $0.23 $0.23 $0.23 $0.23 $0.23

* Pricing is to be based on the definition of a document as defined in the clarification document ** Year is defined as any twelve month period

Exhibit 4 – Scenario 2 - Revised Pricing – Same Day SLA

Florida Department of Children and Families Focus Area C – Reporting Capabilities Interim Revised Reply ITN #01F12GC1

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Focus Area C – Reporting Capabilities

Item Vendor Instructions C Describe the reporting capabilities of the solution proposed in your initial response

and further elaborated during initial negotiations. Please focus on how the DCF would access reports or data based on your proposed solution and clarify whether additional hardware and software would be required to access the data. In addition, specificity should be provided regarding frequency of reporting, including any real-time reporting capabilities. In addition, please identify any assumptions being made that the DCF should validate. Vendor Response: Through our web-based reporting portal, pbMetrix, DCF will have instant, online access to metrics and performance data through any standard internet connectivity. DCF will get a summary-level “dashboard” view of key metrics and performance, detailed reports below the dashboard view, and a performance scorecard of SLAs. Key features include:

• Standard customer dashboard and tabular reports • Ability to “drill-down” into detailed report data • Reporting data for services is refreshed almost real-time • Secure user name and password access • Reports can be exported to Excel, saved, or e-mailed to others • Ability to set automatic performance e-mail alerts for our site managers

No specialized hardware or software required. DCF staff will be able to access the portal through any web brower.

Sample pbMetrix dashboards, a performance scorecard, and reports from past mail-processing and imaging projects are presented in Appendix B.

Assumptions:

• DCF has standard brower and internet connection

Exhibit 5 – Reporting Capabilities

Florida Department of Children and Families Focus Area D – Impact to Facility Location Interim Revised Reply ITN #01F12GC1

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Focus Area D – Impact to Facility Location

Item Vendor Instructions D Describe vendor plans to facilitate a smooth transition from Wildwood to their

proposed location. Vendor must include detailed discussion on assumptions as it relates to staff relocation or assumption of existing staff retention. Vendor should also emphasize the need for a physical transition plan, if any is required. Vendor should also validate that their facility will be dedicated to DCF Mail / Scan and that the staff assigned will be project specific. In addition, please identify any assumptions being made that the DCF should validate. Vendor Response:

We have designed the Project Management Plan for the DCF transition to achieve the following objectives:

• To provide a structured framework for the trasition of DCF mailing, scanning, and indexing services at the required performance levels from the current Wildwood and Tampa facility to the PBMS service center

• To retain and develop an efficient team of professionals who take pride in supporting DCF and its mission

• To ensure the continuing availability of trained personnel to cover all contingencies

• To design, implement, and execute an effective quality assurance/quality control plan that accurately measures our performance, identifies deficiencies before they affect service delivery, and mandates timely and effective corrective action when needed

• To generate timely and accurate reports that capture all relevant project statistics, identify trends in service performance, and collectively provide a comprehensive overview of project activities

All existing DCF employees will have the option of interviewing at PBMS. It is assumed by PBMS that with relocation to Tallahassee, current employee interest in the transition may be low, however all interested parties will be interviewed.

Florida Department of Children and Families Focus Area D – Impact to Facility Location Interim Revised Reply ITN #01F12GC1

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The project plan also addresses the physical diversion and relocation of mail to Tallahassee. We will work with DCF to develop a mail relocation and communication strategy. Based upon our experience for similar mail relocations and consolidations, the plan will include:

• To generate timely and accurate reports that capture all relevant project statistics, identify trends in service performance, and collectively provide a comprehensive overview of project activities

• Establishment of DCF dedicated USPS PO box at the main USPS facility in Tallahassee (South Adams street location)

• Execution of a Change of Address order with the USPS, which will allow the USPS to intercept mail and forward to the new PO box without delays in transit time

• Execution of an address change and communication campaign At this time PBMS is not in a position to state whether or not this facility will be dedicated only to DCF. Implementation related assumptions are provided in the response to Focus Area A.

Exhibit 6 – Impact to Facility .

Florida Department of Children and Families Focus Area E – Cost Drivers Interim Revised Reply ITN #01F12GC1

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Focus Area E – Cost Drivers (CONFIDENTIAL)

Item Vendor Instructions E Provide a breakdown of those elements that drive the largest components to your

cost structure. In addition, describe what DCF can do to assist the vendor to reduce the cost per unit. In addition, please identify any assumptions being made that the DCF should validate.

Vendor Response: Pitney Bowes Management Services, Inc., hereby provides notice that the information contained in Exhibit 7 – Cost Drivers contains proprietary and confidential trade secret information as defined in sections 688.002 and 812.081, Florida Statutes. This information is exempt from disclosure as a public record pursuant to section 815.45. Florida Statutes. See Sepro v. Florida Dept. of Envtl. Protection, 839 So. 2d 781, 785-87 (Fla. 1st DCA 2003).

There are two primary cost drivers as a result of the updated information provided in both the first negotiation session and the IRR clarification document. With each cost driver, PBMS believes there are ways to work with DCF to reduce the cost.

The first cost driver is the increase in mail volume from 15% of total volume as stated in the original ITN to 38% of total volume in the revised IRR. An increase in mail means an increase in manual intervention. As indicated by DCF, 90% of the mail volume is hand written.

Overall, the increase in mail as a percentage of the total volume results in:

• Increased labor and source document processing technology to support mail opening, document preparation, scanning, retention and destruction

• Increased labor for manual data entry for handwritten documents.

In order to reduce this cost, Pitney Bowes will work with DCF to drive towards a more electronic process through web forms, kiosks and tablet technologies. This strategy was included in the original response to the ITN.

Florida Department of Children and Families Focus Area E – Cost Drivers Interim Revised Reply ITN #01F12GC1

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The second cost driver is the process of parsing out multiple documents that appear on the same page that is receieved electronically. This requirement results in:

• A manual touchpoint that has to be completed for all images received electronically before the documents can enter the automated indexing and validation process. This manual touchpoint is required because Pitney Bowes will have to review 100% of the electronic documents received to find the estimated 5% that contain muliple documents on a page and require cropping.

• Execution of the manual cropping, copying and cloning process to parse the images that include multiple documents on a single page into individual documents

This cost driver will potentially be a greater challenge to reduce because it will take a change in the current business process by DCF. PBMS would suggest:

• DCF re-evaluate the business rules that drive this requirement

• DCF consider allowing alternatives such as not parsing the images, but rather assigning multiple document types and sub-types to a single image, and including these data values in the image meta-data.

Another suggestion to reduce overall DCF spend would be to consider pricing as a cost per image rather than a cost per document. While PBMS understands that the cost per document model protects against documents with large image counts, the current volume analysis show that only a small percentage of current documents have have greater than 4 images per document.

Finally, PBMS believes that utilizing a unit price (whether cost per document or cost per image) based upon receipt method (mail or electronic) will allow DCF to save approximately 20% over the term of the contract as mail volumes decrease and electronic volumes increase.

Assumption:

• For documents received electronically, it is required to crop multiple documents that appear on the same page.

Exhibit 7 – Cost Drivers (CONFIDENTIAL)

Florida Department of Children and Families Focus Area F – Innovations Interim Revised Reply ITN #01F12GC1

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Focus Area F – Innovations

Item Vendor Instructions F Describe those innovations which have been proposed to the Department which the

vendor feels are critical to the successful implementation of their solution. The vendor should take into consideration that the current processes existing in the Wildwood facility today work utilizing a combination of home-grown technology and off-the-shelf image and scanning devices. In addition, please identify any assumptions being made that the DCF should validate. Vendor Response: A key innovation of our solution is that it provides flexibility for multi-channel input while utilizing automated data capture technology to maximize efficiency and accuracy. These input channels include:

• Mail and documents consolidated, received, and processed at PBMS service center utilizing production class Kodak scanners

• Documents received at DCF service centers via local mail and walk-up customers

• Document self-captured by DCF staff utilizing existing MFPs • Electonic documents completed at DCF service centers, to be consolidated

utilizing PBMS-provided facsimile server application without the need for printing and faxing

• Documents received via facsimile from internal and external clients, to be consolidated utilizing PBMS-provided facsimile server application

• Documents received via email from internal and external sources

All document types and receipt channels will be directed to our Captiva document and data capture application; this is another key innovation of the solution. Through this application we will:

• Ingest documents from all channels • Perform image enhancement and “clean-up” • Recognize data values and document format to automatically classify

document types • Capture data values utilizing OCR and ICR technologies • Complete manual data correction and entry • Perform automated data validation utilizing DCF applicant and participant

data available through DCF sources and data PBMS curently processes for print and mailing services

Florida Department of Children and Families Focus Area F – Innovations Interim Revised Reply ITN #01F12GC1

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• Capture metics and frequency related to “return mail” • Execute quality control review and corrections • Generate data for return mail, production, and performace reporting • Release ouput image files, meta-data, and control files to DCF for ingestion into

your document management and line of business applications

To maximize data capture efficiency and accuracy, our solution approach includes the application of barcodes to documents PBMS already prints and mails for DCF. This will enable us to:

• Embed key data values, such as document type, and a unique identifier that can be married back to an applicant/participant data record to facilitate efficient and accurate data capture and validation

• Match return mail to print/mail transaction records, providing tracking and reporting of repeat returns

• Generate other metrics related to the mail cycle, including response rates and elapsed response times

To enable DCF to continue to drive a greater percentage of documents to an electronic format, and improve overall service levels, PBMS will introduce technical innovations that will change the customer experience and provide further improvements in efficiency, accuracy and timeliness. These innovations include use of fillable e-forms that support real-time data validation and ingestion and the deployment of mobile and tablet-based tools for use by DCF staff and customers.

Fillable E-forms The use of fillable e-forms will transform how data is captured and processed. Our solution includes the use of true e-forms that incorporate:

• Customized design for maximum efficiency of use by staff and customers • Real-time data validation • Drop-down menus • Secure, rapid data transfer

Mobile and Tablet-Based Tools The utilization of mobile tools will provide DCF and its customers with a very friendly and efficient experience. This solution also provides an effective, secure data capture platform for DCF field representatives visiting homes, schools, physician’s offices or DCF Service Partner locations.

Florida Department of Children and Families Focus Area F – Innovations Interim Revised Reply ITN #01F12GC1

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This platform will enable the capture of information at the point of transaction, eliminating paper and moving information in real-time. All of the features described in the fillable forms solution are available, plus:

• Real-time handwriting recognition, converting each character to recognized text as the user writes, enabling the user to easily revise text by simply overwriting it

• Ability to obtain and save signature • Form synchronization ensuring all forms are updated to the current version • The ease of use, flexibility and speed afforded by a mobile device.

Assumptions: • DCF strategic direction is to move from physical to electronic document

processing

Exhibit 8 – Innovations

Florida Department of Children and Families Focus Area G – Exchange of Indexed Data Interim Revised Reply ITN #01F12GC1

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Focus Area G – Exchange of Indexed Data

Item Vendor Instructions G Describe how the Vendor intends to lookup case numbers and workgroup

information which is required as part of the metadata embedded within an indexed document. The vendor should also describe their understanding of how final indexed documents will be transmitted (“Pushed”) to the DCF. In addition, please identify any assumptions being made that the DCF should validate. Vendor Response:

It is the intention of PBMS to work with the State of Florida during the Statement of Work creation to create a combined ODBC Compliant “View” table that contains the appropriate customer data from all 3 systems that the DCF currently utilizes in their process. They include the ACCESS system, the Florida system, and current imaging repository.

It is from this table that PBMS will connect our capture and index solution to provide look-up ability and data validation against this view. Access to this table can be accomplished via VPN (or comparable approach). Assuming the table is updated real-time by DCF, utilizing this approach will allow PBMS to perform look-ups and validations utilizing “live” data.

For the limited instances that a match cannot be made, the process will allow for an exception queue that the DCF would have access to assist in matching these documents to the appropriate claimant.

In regards to the final export process of the documents and data, once again PBMS will work with DCF during the Statement of Work creation on final delivery format and method. The PBMS capture and index solution allows for a completely configurable transfer and delivery format to required specifications of the DCF repository. It is the intention of PBMS to provide a single multi-page PDF file for each document received. There will also then be a corresponding XML file that will contain the header fields (Claim number, Social Security Number, Medicaid Number, First Name, Last Name) as required by the state, and also the document types and pages numbers embedded into the PDF document.

The transfer process will include automated reconciliation of file counts and package size to provide checks and balances that ensure 100% transfer reliability of images and date from PBMS to DCF. The transmission itself will occur thru a secure FTP transmission line between the state and PBMS.

Florida Department of Children and Families Focus Area G – Exchange of Indexed Data Interim Revised Reply ITN #01F12GC1

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Assumptions: • DCF will create a consolidated data table • Table will be available in a network directory accessible by PBMS • PBMS and DCF will set up a VPN to allow PB access to directory to allow

for real time data lookup and validation • Secure-FTP communication protocol between PBMS and the DCF will be

utilized for transfer of images and associated met-data • Image format will be multi-page PDF • Meta-data will be in XML format

Exhibit 9 – Exchange of Indexed Data

Florida Department of Children and Families Focus Area G – Exchange of Indexed Data Interim Revised Reply ITN #01F12GC1

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Appendix A – Revised Project Schedule

See accompanying PDF and MPP.

Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Appendix B – Sample Dashboards and Reports

Sample pbMetrix Dashboards

Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Sample Performance Scorecard

Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Sample Reports

Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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Florida Department of Children and Families Appendix B Interim Revised Reply ITN #01F12GC1

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