Request for Information 17-082 - Indiana 17-082/082rfi.pdf · Request for Information 17-082 . INDIANA DEPARTMENT OF ADMINISTRATION . On Behalf Of . INDIANA DEPARTMENT OF REVENUE

STATE OF INDIANA

Request for Information 17-082

INDIANA DEPARTMENT OF ADMINISTRATION

On Behalf Of INDIANA DEPARTMENT OF REVENUE

Solicitation For: REVENUE MODERNIZATION

INTEGRATED TAX SYSTEMS AND SERVICES

Response Due Date: May 1, 2017

Lottie Hooyer, Senior Account Manager

Indiana Department of Administration Procurement Division

402 W. Washington St., Room W468 Indianapolis, Indiana 46204

State of Indiana RFI 17-082 Revenue Modernization – Integrated Tax Systems and Services

2 Proprietary & Confidential Information of the Indiana Department of Administration

and Indiana Department of Revenue

Table of Contents

1.0 Introduction

2.0 RFI General Information 2.1 RFI Description

2.2 RFI Purpose 2.3 Vendor Qualifications 2.4 Outline 2.5 Process and Milestones Summary

3.0 Indiana Department of Revenue Overview 3.1 Mission Statement 3.2 Organization Chart 3.3 Statistics and Locations

3.4 Modernization Background

4.0 Current Business Functions and Technology Footprints 4.1 Business Functions 4.2 Technology Solutions

4.3 Technology Infrastructure

5.0 Future Requirements 5.1 Process Driven Functional Requirements 5.2 Technical Standards and Requirements 5.3 Service Level Requirements 5.4 Project Related Requirements

6.0 Implementation Alternatives 6.1 Capability Bundles 6.2 Approach, Timeline and Cost Options

7.0 Submission Requirements 7.1 Intent to Respond 7.2 Written Response Format 7.3 Vendor Presentations 7.4 Bidder’s Library 7.5 Proposal Documents Submission

8.0 Future RFP Information 8.1 Overview 8.2 Planned Content 8.3 Planned Timeline

Appendix A1: Technical and Service Level Requirements Workbook (Bidders Library) Appendix A2: Process Driven Functional Requirements Workbook (Bidders Library) Appendix B: Question Submission Template Appendix C: DOR Confidentiality Agreement Appendix D: Preliminary Contract Terms and Conditions (Bidders Library) Appendix E: Business Function Detail (Bidders Library) Appendix F: Technology Solutions Detail (Bidders Library) Appendix G: Technology Infrastructure Detail (Bidders Library) Appendix H-(TR, MC, PS): Business Process Detail (Bidders Library) Appendix I: Intent to Respond Template




1.0 Introduction The Indiana Department of Revenue (IDOR) has launched an initiative to modernize revenue business processes and technology solutions. This modernization project will include the rapid and complete implementation of an integrated tax system (ITS) that automates major state revenue tax functions including Compliance, Operations, Finance/Internal Audit, Information Technology and Customer Service.

The IDOR Modernization Mission is to modernize business processes and technologies in order to deliver industry leading, customer-centric services that provide transparent and accurate controls to enhance compliance and protect Indiana revenue, while facilitating sustainable process efficiencies within a culture of continuous improvement.

2.0 RFI General Information

2.1 RFI Description This Request for Information (RFI) 17-082 is issued by the Indiana Department of Administration (IDOA) in conjunction with the Indiana Department of Revenue (IDOR). This RFI is issued solely for information and planning purposes only, and does not constitute a solicitation. Responses to the RFI will not be returned. Responses to this RFI are not an offer and cannot be accepted by the State to form a binding contract. There will not be a contract resulting from this RFI. The State of Indiana and IDOR are not liable for any cost incurred by the vendor in response to this RFI.

2.2 RFI Purpose The purpose of this RFI is to request responses and onsite demonstrations/presentations from qualified vendors for the purpose of reviewing solution functionality, collecting additional information, and/or receiving clarification on RFI response details. IDOR is interested in evaluating creative strategies, approaches, timelines and costs for implementing a modernization roadmap and ITS that provide the earliest benefit to taxpayers and reflects the realization that time is the enemy of major transformation projects.

The information gained from this RFI may be used in the development of a competitive solicitation process, leading to the selection of a solution/integrator best suited to provide the integrated tax system and implementation service(s) that meet IDOR modernization requirements.

2.3 Vendor Qualifications Qualified vendors must have the ability to deliver an ITS in alignment with one or more of the capability bundles outlined in Section 6.0 of this RFI.

Qualified vendors should have experience completing multiple ITS implementations for comparable states.

Qualified vendors can be individual companies or consortiums.

Please provide a summary of qualifications with the Intent to Respond.




2.4 Outline The following table outlines this RFI by section:

Section Description Section 1.0 - Introduction This section provides an introduction to the RFI and the

mission statement for the modernization project. Section 2.0 – RFI General Information This section provides a description of the RFI including the

purpose, time table, vendor qualifications and milestones. Section 3.0 – Indiana Department of Revenue Overview

This section provides an IDOR overview including the department’s mission statement, organization charts, locations, processing statistics and modernization background.

Section 4.0 – Current Business Functions and Technology Footprint

This section describes IDOR current business and technology footprints including business functions, solutions and infrastructure components.

Section 5.0 – Future Requirements This section provides an overview of the business, technology and project related requirements.

Section 6.0 – Implementation Alternatives

This section describes the implementation options IDOR is requesting. Those options will include several capability bundles as well as implementation approach, timeline and cost alternatives.

Section 7.0 – Submission Requirements

This section describes the submission requirements for this RFI including an Intent to Respond form, the written RFI response instructions, and vendor presentations. This section also provides the details for accessing the Bidder’s Library.

Section 8.0 – Future RFP Information This section provides information on the planned RFP process including the expected contents and timeline.

Appendix A1: Technical and Service Level Requirements Workbook

This spreadsheet will provide the preliminary technical and service level standards and requirements that can be expected in the RFP.

Appendix A2: Process Driven Functional Requirements Workbook

This spreadsheet will provide the preliminary process driven requirements that can be expected in the RFP.

Appendix B: Question Submission Template

This spreadsheet provides the template for vendor’s to utilize when submitting questions.

Appendix C: DOR Confidentiality Agreement

This is the DOR Confidentiality Agreement that must be signed by submitting vendors.

Appendix D: Preliminary Contract Terms and Conditions

This is the preliminary Indiana contract terms and conditions that can be expected in the RFP.

Appendix E: Business Function Detail This provides more detailed business function descriptions to build on the summary provided in Section 4.1.

Appendix F: Technology Solutions Detail

This provides more detailed technology solutions information to build on the summary provided in Sections 4.2 and 5.2.

Appendix G: Technology Infrastructure Detail

This provides more detailed technology infrastructure information to build on the summary provided in Sections 4.3 and 5.2.

Appendices H-(TR, MC, PS): Business Process Detail

These appendices provide more detailed business process information for each major process, building on the summary provided in Section 5.1.

Appendix I: Intent To Respond Template

This provides the form vendors must fill out in order to get access to the Bidders Library.




2.5 Summary of Milestones The following table outlines the timeline for all RFI related activities:

Activity Date(s) Issuance of RFI March 15, 2017 Pre-response Meeting Held on March 20, 2017 Deadline to Submit Written Questions using Question Log in Appendix B

March 24, 2017 3:00 PM EST

Response to Written Questions March 31, 2017 Deadline to Submit Intent to Respond Form for Priority Vendor Presentation Scheduling

April 17, 2017 3:00 PM EST

Final Deadline to Submit Intent to Respond Form

April 24, 2017 3:00 PM EST

Submission of Written RFI Responses May 1, 2017 3:00 PM EST Vendor Presentations May 10, 2017 – May 26, 2017

3.0 Indiana Department of Revenue Overview 3.1 Mission Statement IDOR’s mission is to “Collect tax revenues and administer tax laws in a fair, secure, and efficient manner and provide accurate and timely funding and services to Indiana citizens and other constituents”. The department’s vision is to continuously innovate to increase accuracy, efficiency, and productivity in all areas of tax administration.

3.2 Organization Chart




3.3 Statistics and Locations During FY 2016, the department served more than 4.3 million individual taxpayers and more than 225,000 business taxpayers, collecting more than $18 billion in revenue for the state of Indiana. These taxes included individual and corporate income taxes, sales taxes, state and county payroll withholding taxes, and more than 40 specialized taxes.

The Indiana Department of Revenue is responsible for the administration of the tax types listed below.

INDIVIDUAL BUSINESS SPECIALAnnual Revenue $900,000,000 $15,950,000,000 $1,100,000,000Transactions 11,284,450 13,164,313 41,336

Tax TypesIndividual Income Alternative Fuel User Aeronautics Excise, BusinessFiduciary Aviation Fuel Tax Aeronautics Excise, Individual

Consumer Use Aeronautics RegistrationControlled Substance Alcohol TaxCorporate Income CigaretteCounty Admissions Gaming Excise TaxCounty Innkeeper Other Tobacco ProductsEmployment Agency Pari-mutuel AdmissionsFinancial Institutions Pari-mutuel WageringFirework Public Safety Fee Racino FeesFood & Beverage Racino WageringGasoline Use Tax Riverboat AdmissionsIndianapolis motor speedway Riverboat WageringInheritance Repealed '13 Type II Gaming TaxMotor FuelMotor Vehicle Rental ExciseOut Of State UseOversize/overweight MHPetroleum SeverancePPD Sales On Gas. Repealed '14Rail; Commuter or ElectricSalesSpecial FuelTerminal OperatorTire FeeTransporterUtility Receipt TaxUtility Services Use TaxWireless Prepaid CardsWithholding




Customer Interaction Statistics

FY 2014 FY 2015 FY 2016 Telephone Calls 823,387 753,148 980,035 Email 49,404 53,015 55,639 Walk-In 11,716 22,789 15,334 Correspondence 41,073 50,574 63,608

Locations

IDOR maintains its primary offices at the Indiana Government Center in downtown Indianapolis. The main office contains the following functions:

1. Commissioner's Office 2. Staff Functions (HR, IT, Legal, PR, Finance) 3. Taxpayer Services /Call Center/Taxpayer Advocate/Correspondence Processing 4. Audit and Compliance(Audit, Collections)

Returns Processing Operations are housed in the Reagan Building at Ameriplex Park in southwest Indianapolis. The Motor Carrier Services Division is also located in the Reagan Building. Returns Processing Operations include:

1. Returns Processing (Mail Opening, Imaging, Remittance Processing) 2. Taxpayer Services 3. Special Tax Operations [Special Processing, Taxpayer Risk Investigations Unit (Fraud Protection)]

IDOR operates eleven District Offices located throughout the state. These facilities offer taxpayer assistance and call center overflow capacity. They also house a large portion of the in-state remote audit staff. While other states have focused on centralizing their operations, IDOR has found that taxpayers and tax practitioners appreciate the local access to the department and utilize these offices frequently. The Commissioner regularly visits these offices to receive input and exchange ideas with tax practitioners around the state. These offices are located in:

1. Merrillville 2. South Bend 3. Fort Wayne 4. Lafayette 5. Kokomo 6. Muncie 7. Terre Haute 8. Columbus 9. Bloomington 10. Clarksville 11. Evansville




3.4 Modernization Background In 2015, the Indiana Legislature (House Enrolled Act 1472, Section 25) required and funded IDOR to conduct a study and develop a plan to modernize its current operational environment including processes and technology.

IDOR collaborated with Deloitte to complete the requested study near mid-year 2016. As part of that study, Deloitte and the IDOR team developed vision statements for each department function, analyzed current and future states, and defined a large number of gaps. Those gaps exposed many flaws in the 40+ legacy solutions, integration and infrastructure which could only be efficiently resolved by replacing the current systems. Utilizing the current and future state information, the department and Deloitte assessed ITS implementation options and developed both an implementation approach and future state roadmap near the end of 2016.

As a result of study and planning, the Governor’s office, Office of Management and Budget and IDOR have prioritized an initiative to modernize IDOR business processes, tools and technology including the implementation of an ITS.

4.0 Current Business Functions and Technology Footprint

4.1 Business Functions This section presents a consolidated summary of IDOR business functions and common themes identified across the department where opportunities exist in realizing the future vision of IDOR.

IDOR’s modernization project mission is to modernize business processes and technologies in order to deliver industry leading, customer-centric services that provide transparent and accurate controls to enhance compliance and protect Indiana revenue, while facilitating sustainable process efficiencies within a culture of continuous improvement.

The following information provides an introduction and overview of those business functions which are further defined in Appendix E.

Functions/ Business Areas in-scope

1. Audit and Compliance

• Audit selection and management • Compliance (self-compliance, non-filer) • Case management

2. Operations

• Returns processing • Correspondence Processing • Tax Administration • Collections, Billing • Check Processing • Fraud / identity protection • Education / outreach / correspondence




Functions/ Business Areas in-scope

3. Finance & Internal Audit

• Financial integrity (accountability / controls) • Billing • Accounting processes (cash collections, refunds,

receivables management, payment channels) • Internal auditing • Risk management/Controls

4. Information Technology • Architecture (SOA/COTS/custom,

central/distributed) • Security

5. Information Management • Internal / External interfaces • Internal / External decision support • Other data analytics

6. Customer Service

• Service intake channels and feedback loop to assure resolution(e.g. Taxpayer Advocacy, Appeals)

• Customer self-service opportunities (and security/risk analysis of the same)

• Measuring quality of service rather than quantity; customer satisfaction, etc.

• Customer relationship management

The table of opportunities below includes a summary of common themes identified across IDOR functions. Opportunities are actions, activities or changes IDOR can pursue with the potential to improve the performance of the agency. 1. Increase operational efficiencies through automation and process re-engineering.

• Business users indicated there is an opportunity for IDOR to increase operational efficiencies through reducing manual processes across functions

• Adding automation to the collections/audit process results in increased efficiency and potential increases in revenue generation

2. Utilize data analytics to drive decision-making and process improvements.

• Data obtained through shared agreements with other agencies can be leveraged to increase the efficiency of outreach and service delivery to taxpayers

• Increased analysis can allow IDOR to better understand behaviors and trends of taxpayers and resulting work flow, enabling IDOR to then align policies and system-based processes efficiently with taxpayer preferences

• A robust data analytics strategy can potentially support IDOR in driving towards outcome-oriented decision making

• Adopting enhanced pattern analysis and incorporating additional data sources to enable advanced risk profiles




3. Enhance reporting by offering more user-friendly reporting capabilities

• Enhancing system-reporting access, capabilities, and usability could enable business users to conduct the analysis needed to drive continuous processes improvement

• A potential reduction in requests related to data access/system tools could free IT resources to focus on other priorities

4. Offer a “bank-like” customer experience with self-service, compliance, and operational benefits, balanced with IDOR’s risk profile

• Commercial banks have become leaders in the self-service space by providing customers with multiple ways to schedule payments, track account and transactional information, and receive notices (i.e. upcoming payments, fraud detection, data requests)

• Compliance, collections activities, and customer service can all benefit from IDOR providing taxpayers with a simple and direct method of handling their interactions with the agency via self-service

5. Develop a comprehensive taxpayer view to enhance customer service.

• Developing a holistic view of the taxpayer across tax types and potential issues could allow staff to be more efficient, effective, and proactive in resolving taxpayer inquiries

• Implementing a comprehensive view would require IDOR to expand its focus and view taxpayer service as all-encompassing interactions that cut across agency functions

6. Leverage consistencies across tax types to support the development of enterprise-level systems/tools.

• There is consistency among the tax types across a number of functional areas

• Only two specified functional areas revealed an overall high level of variation across tax types

• Established process consistencies provide a foundation and can serve as a roadmap as IDOR considers enterprise-level technology solutions

7. Provide configuration driven traceability across all processes.

• Traceability from statute to a process rule • Traceability from statute to a correspondence or bills

4.2 Technology Solutions IDOR is a large and complex organization that employs numerous business processes for tax administration, supported by a variety of applications and technology products. Over the last two decades, the technology landscape at IDOR has evolved to support additional tax types, implement legislative changes, automate manual business processes, and provide enhanced reporting capabilities. This has resulted in numerous dependencies between subsystems. Additionally, the core systems now present a mix of technologies and in many cases separate business rules and workflows.

The technology solutions landscape is managed by the Information Technology Division (ITD) within IDOR. This IT division is staffed by more than 75 internal and contract staff members. The core applications at IDOR can be classified into the following eight broad functions; Data Capture, Decision Support, Imaging, Returns Filing, Returns and Payment Processing, Customer Service, Audit and Compliance. Additional solution detail can be found in Appendix F.




4.3 Technology Infrastructure IDOR has significant infrastructure to support the above solutions and additional support, monitoring and productivity tools. The infrastructure landscape is managed by the Indiana Office of Technology (IOT) which reports independently to the Office of Management and Budget.

The following is a summary of the major IDOR technology infrastructure services and components managed by IOT:

• IDOR Help desk serves 700 IDOR employees. • Field Services supports more than 1000 devices, including laptops, personal computers (PCs),

office printers, specialized printers, scanners, faxes, and other hardware. All laptops and PCs are DELL or HP and use Windows 7 Professional operating system. IDOR will likely migrate to Windows 10 during the next workstation refresh cycle in 2018.

• There are 181 servers in the production environment (44 physical and 137 virtualized) and 122 (28 physical and 94 virtualized) servers on non-production environments. Most servers are Microsoft Windows Server (250) or Linux (44), except for 9 running AIX. Server virtualization is done with VMWare.

• IOT has a storage capacity of approximately 2 Petabytes. • There are 246 databases in the production environment with sizes that range between <1 GB

and 6.8TB. There are 197 Microsoft SQL Server and 49 Oracle12g databases. The very large databases are all run on Oracle 12g.

• IOT has 2 datacenters. The primary data center is located in the Indiana Government Center (IGC) and runs all PROD instances of agency applications. The secondary data center is located at Indiana University in Bloomington. It is the disaster recovery site and runs all non-PROD instances of agency applications until there is a need to recover the primary data center. Critical applications will be recovered in the first 24 hours of a disaster.

• There are approximately 35,000 employees / contractors, 50,000 network end-points, 800 remote WAN locations, and 3,500 network devices (predominately Cisco) on the State network.

• Almost all WAN and LAN equipment is owned, patched and refreshed by IOT • Internet access is provided by local Internet Service Providers (ISPs) or global communication

providers.

IOT is currently using Microsoft System Center Configuration Manager (SCCM) 2007 and Microsoft System Center Operations Manager (SCOM) 2012 for server monitoring, patches, and image installation in workstations. For database management and monitoring, IOT uses Red Gate solutions for SQL Server and GRID for Oracle. All employee authentications are managed through Microsoft’s Active Directory, including those from Virtual Private Networks (VPNs).

IOT hosts IDOR’s Integrated Tax System in its Protected Zone (PZ). The PZ is a secure area of the network with high utilization of firewalls to maintain separation of agencies, system instances (e.g. PROD, Pre-PROD, Test), and system tiers (e.g. Presentation, Application, Data). Each agency instance tier is on its own isolated network segment and visibility to or from another instance tier must be explicitly granted in the firewalls at the endpoint IPA, protocol, and port levels. Multiple applications belonging to the agency and multiple non-PROD instances may be running on the same network segment. Basic PZ rules are:

1. No other instance is allowed access to the PROD instance. 2. The PROD instance is not allowed to access non-PROD instances




3. All applications are expected to conform to a 3 tier architecture consisting of Presentation, Application, and Data tiers.

4. The Presentation tier can only access the Application tier 5. The Application tier can only access the Data Tier and respond to the Presentation tier

IOT implements the IDOR security requirements for CAT-1 and CAT-2 STIGs for the operating systems and database systems. (See Section 5.2).

The IOT PZ implements virtual servers with up to four single core vCPUs and 16GB RAM. These can be clustered and load balanced. IOT can provide disk storage for file systems in multi-TB quantities. The virtual servers may operate Windows Server 2012 or Red Hat Enterprise Linux 6.8. Databases may run on Windows SQL Server 2014 or Oracle 12g. There is an Oracle Exadata database appliance running Oracle 12g in the PZ and that is IDOR's preferred database platform. IDOR can purchase physical servers to operate in the PZ but that is not our desired option for a long term enterprise systems as physical hardware must be replaced every 3 years.

IOT does not grant system administrator rights for any machine in the PZ to non-IOT employees or contractors. The ITS Vendor is an IDOR contractor and so will have to work with IOT resources for all server and database work.

For a more detailed description of IDOR’s technology infrastructure, refer to Appendix G.

5.0 Future Requirements

5.1 Process Driven Functional Requirements IDOR is following a process driven approach toward defining requirements. The agency is documenting enterprise processes based on known leading practices, industry standards, and Indiana specific legislative and policy mandates. This documentation includes future state process descriptions, sub process business models, task level descriptions, and detailed functional requirements. The intent of this effort is to define the requirements needed to realize IDOR’s Vision and deliver our Mission. Along with the requirements, this effort will provide a list of known Forms (correspondence), Reports, Interfaces, and Conversions that may be required to support the implementation of an ITS.

The baseline process and sub process mapping descriptions are provided in the sections below. Each sub process will include a process flow that highlights the expected tasks necessary to deliver the sub-process. For each task provided in a process flow, there is an accompanying description that provides additional context to the task as well as any IDOR specific needs. The tasks are then further decomposed in to specific requirements. The sub process models, task descriptions, and requirements are provided within the bidder’s library.

Note that project related requirements (Testing, Training, Project Management, etc.) will be provided separately. The development of the project related and functional requirements remain in progress as of the release of this RFI. The information provided in this section is subject to ongoing development and refinement.




The chart below provides a view of the current baseline processes and sub-processes included within the scope of this RFI.

For a more detailed description of IDOR’s business processes, refer to Appendices H – (TR, AM, …, PP). There will be a separate Appendix H for each major process grouping.

5.2 Technical Standards and Requirements IDOR is open to most application and system architectures. However, any implementation will have to conform and comply with all IDOR and IOT Security Standards. In addition, any implementation in the IOT data centers will have to conform to IOT’s Implementation Standards for the Protected Zone (PZ). Should the vendor opt to implement with hosted infrastructure outside of IOT, this infrastructure must comply with the Federal Risk and Assessment Management Program (FedRAMP) requirements and with IDOR’s Security Requirements.

IDOR's security implementation is based on a strict adherence to the Federal Information Security Management Act (FISMA) of 2002. FISMA requires that information systems be rated along the dimensions of Confidentiality, Availability, and Integrity to generate a system impact category. The ITS will be categorized as a moderate-impact system under Federal Information Processing Standards Publication 200 (FIPS 200). FISMA's security requirements are defined by the National Institute of Science and Technology (NIST) in their Special Publication 800-53 (currently Revision 4). Generally, IDOR will insist that all controls suggested for a moderate-impact system be implemented.




IDOR receives data from the IRS and is thus subject to the requirements of IRS Publication 1075 (currently issued September 2016) which uses NIST 800-53 to define its security requirements. IDOR and IOT are subject to a triennial IRS Safeguard audit. The ITS is a primary focus of the audit.

IDOR utilizes the US Defense Information Security Agency (DISA) Specific Technical Implementation Guides (STIGs) as a practical way to evaluate compliance with the NIST security controls. STIGs are defined for specific technologies used in an application and for the design, development, operation, and maintenance of the application itself.

DISA also defines Severity Categorization Codes for identifying the risks associated with various security situations. A vulnerability in a specific situation is called a finding and is classified by category. These categories (CAT) are:

CAT I – Any vulnerability, the exploitation of which will directly and immediately result in loss of Confidentiality, Availability, or Integrity

CAT II – Any vulnerability, the exploitation of which has a potential to result in loss of Confidentiality, Availability, or Integrity

CAT III – Any vulnerability, the existence of which degrades measures to protect against loss of Confidentiality, Availability, or Integrity

IDOR reserves all rights as to the interpretation of any security control described in NIST 800-53 and will not negotiate on the meaning of any control. IDOR will negotiate the assumption of risk and the time required to remediate any adverse finding revealed in our assessments of a vendor's system.

The requirements for implementation in the PZ are described above. Other IOT standards are posted here: http://iot.in.gov/architecture/.

Vendors who propose to host the application in their own data center or use a partner infrastructure provider should understand that IDOR has very specific cloud requirements driven by IRS Publication 1075. The data center must be certified under the FedRAMP. The application implementation must likewise be certified. The ITS and the infrastructure will be primary focuses of our triennial IRS Safeguard audits and the vendor and any infrastructure partner will be required to support the audits under our agreement.

Please refer to Appendix A1 for more information on our technology infrastructure standards and requirements.

5.3 Service Level Requirements Service levels for solution and infrastructure services are extremely important. IDOR expects strong, clear industry leading service levels in order to transition to much higher levels of service than are currently being achieved. Service levels will be a key evaluation criteria during the RFP process. We will be seeking to clearly understand any trade off of cost versus performance. Vendors should include a complete range of service levels they provide whether they are below or above those listed in Appendix A1.

http://iot.in.gov/architecture/




5.4 Project Related Requirements IDOR has requirements for certain project related methodologies including testing, training and project management. For each of the service categories below, IDOR requests that the vendor provide a maximum one page overview on the approach to providing the services. While the areas are broad, IDOR believes that each is a critical area to meeting the end state objectives of the implementation.

Project Management – The IDOR ITS replacement and Modernization project is the largest system related project on the Governor’s agenda and represents a significant investment for the State of Indiana. As with any complex, long term, transformational project, Indiana will require the vendor to follow a structured delivery methodology that includes status reporting, risk management, issue management, and budget and scope management. Please include your strategy to control additional change related costs throughout implementation.

While Indiana does not intend to dictate a methodology, we do expect that the vendor will specify a methodology and align to that methodology during the execution of the project. Please specify your approach to project management, how your methodology incorporates the items listed above, and how your approach impacts the cost, risk, and timeliness of the solution delivery.

Change Management – The primary cause of failure for large transformation projects can be traced to a lack of active change management. Change management includes communication and messaging, change assessment, organization or operational redesign, and organizational go-live support.

Please provide your approach to change management as part of the ITS implementation and include any particular tools or techniques. Is change management delivered through the vendor organization or do you typically leverage partners or sub-contractors?

IV&V – The State of Indiana mandates and IDOR strongly supports the need for IV&V services for projects of this size and complexity. Please provide your approach to partnering with IV&V vendors and describe and issues or concerns.

Training – Training refers to the broader needs around preparing the organization to fully leverage the new capabilities of the ITS. This includes performing skills assessment, identifying gaps, and developing targeted training. The actual execution of training may include presentations and demonstrations, hands on simulations, virtual training, and/or instructor led training (either vendor delivered or “train the trainer”).

Please describe your approach to confirming that the IDOR organization is properly trained to leverage the capabilities of the ITS including specific tools or techniques.

Testing – IDOR will need to confirm that the solution is functioning as designed ahead of a production release. The expectation is that the vendor will perform multiple rounds of testing and system confirmation throughout the project. This includes unit testing, system testing, integration testing, conversion testing, regression testing and user acceptance testing. The concept of testing would extend to training and dry runs of conversion and go-live activities.

Please describe your approach to testing and any tools or techniques that you leverage. Include an overview of the state responsibilities around testing and any additional activities leveraged to assist in increasing end user confidence in preparation for deployment.

Data Conversion – The agency understands data conversion will be a major challenge for this project. Please describe your approach for this critically important initiative including your view of best practices




concerning data cleansing, the amount of historical data to be converted and data archiving. Please also describe any tools, techniques or processes you will utilize to streamline data conversion activities.

Analytics – The agency has a desire to shift toward risk based processing, scoring, data driven decision making and management, agency dashboards, interactive reports, behavior modelling, and predictive modelling. The intent is to leverage analytics across audit, collections, customer service, returns processing and all operational areas within the agency. We expect that proposed solutions would include integration to standardize federal data sources and include discovery capability for non-filers and under reporters.

Please provide an overview of how your solution leverages analytics across operational areas. Include any tools or technique that are included within your solution and how IDOR will maintain these solutions post implementation.

Project Team Experience – The experience of the project team is required to appropriately identify and resolve project risks and issues, actively monitor the ongoing implementation, and confirm that IDOR is able to appropriately leverage the capabilities of the COTS solution. IDOR intends to specify specific requirements pertaining to the experience of key staff in the delivery of integrated tax systems at the state level. It is our intent to require key named staff and experience qualifications for, at a minimum, the following positions:

• Project Manager • Functional Lead • Technical Lead • Testing Lead

Please provide the expected experience and qualification that you would propose for each of the roles above. The qualifications should highlight years of experience, number of previous similar states projects, professional certifications, and other areas the vendor deems relevant to demonstrating that the appropriate team is in place for a successful implementation. This may include highlighting additional roles or qualifications that IDOR should consider for inclusion in the final RFP.

Maintenance & Support – IDOR intends that the selected ITS will be a multi-generational solution. Ongoing maintenance and support are key areas of focus both internally within the agency and externally amongst stakeholders. IDOR intends to specify standards related to software support, resolution of defects, onsite support, ongoing annual and legislative changes, and upgrades. The RFP will require maintenance and support costs for a specified period and will include caps on percentage increases allowable on a bi-annual basis (to align with Indiana’s budgeting process).

Please provide an overview of the support models available to your customer base. IDOR is also interested in understanding the approach and cost related to ongoing enhancements to your core product and future release strategy. IDOR would be interested in understanding alternative support models available (hosting, cloud, Software as a Service) including potential impact to cost, timing, and risk.

Internal Controls – IDOR expects that the ITS solution will include an established and proven internal control approach that includes automated reconciliation, business process monitoring, user access and control, and segregation of duties. This will include full audit logging, review, and monitoring capabilities.




Please provide an overview of your approach to internal controls and specific examples of how that approach is implemented within your solution for each of the items list above. Vendors should provide any additional items they deem relevant to internal controls that IDOR should consider for inclusion in their RFP.

Common Implementation Issues and obstacles – Please provide a description of the most common ITS implementation issues you have encountered and an explanation of how they were resolved or eliminated.

Other – Please provide any additional non-functional areas that you believe IDOR should consider as part of a vendor and solution evaluation.

6.0 Implementation Alternatives

6.1 Capability Bundles IDOR requests sufficient information to understand the vendor’s ability to implement all or substantially all components of their ITS. While it is our strong desire to transition to a complete ITS, it may be in our best interest to retain one or more current components, integrate components from other vendors or develop and integrate components that have unique or strategic requirements.

The capability bundles are referenced below. For a more detailed description of IDOR’s business processes, refer to Appendices H – (TR, AM, …, PP). There will be a separate Appendix H for each major process grouping.

Bundle 1: Vendor delivers everything




Bundle 1 Description:

This option includes the full functionality requested for the Integrated Tax System and is represented with the functional and non-functional requirements.

Bundle 2: Vendor delivers everything, except for case management activities for audit and special taxes


The State of Indiana has recently implemented an Audit solution and core tax processing solution for special taxes. The Bundle 2 option would retain Audit and Special Taxes existing functionality, but would require integration with the other ITS functions in order to deliver the full functionality detailed in the requirements. The existing audit solution includes audit related workflow and case management, audit work paper capability, non-filer, under reporter, and case scoring delivered through a data warehouse.




Bundle 3: Vendor delivers everything, but tax payer self service remains with the state


The State of Indiana is in the process of delivering a “one stop” business portal. IDOR provides additional filing and payment capability through existing online capability. Under this option, additional online capabilities would be provided by the state through expansion of the existing portal functions and deployment of similar services to individual tax payers. The vendor would provide all ITS related requirements with the exclusion of taxpayer self service requirements. The vendor would retain responsibility for developing integration between the ITS and the self-service application. Your response should describe your ability to satisfy the functionality requested in each bundle, explain any issues or concerns you may have and outline the various implementation approaches, timelines and cost structure listed in Section 6.2.




6.2 Approach, Timeline and Cost Options IDOR requests that vendors provide options and recommendations for implementation approaches for each capability bundle. While we understand that there are several options available, we would welcome recommendations and impact to timing, cost, risk, and delivery of value from the vendor community. If there are any particular approaches that vendors would recommend the agency not adopt, please include an explanation based on cost, timeline, or risk. A subset of the available options are listed below as examples of potential approaches.

Functional – A functional approach would provide specific functions or capabilities that cut across all tax types. For example, a vendor could implement the registration and master data process across tax types and add transactional posting and revenue accounting in a later phase.

Customer Type – Customer based release would focus on alignment to customer segments. For example, a business release may include trust taxes, corporate income tax, and potentially a sub set of special taxes (at the discretion of the vendor).

Tax Type – A tax type approach would cluster similar tax types for implementation. For example, the clusters could include trust taxes, income taxes, and special taxes.

It is IDOR’s intent to understand a vendor’s ability to shorten the implementation timeline and/or reduce the costs while maintaining an acceptable risk level. The options and recommendations for each implementation approach should include the following:

Description: A one-page summary explaining the approach including the pros and cons.

Timeline: A one-page graphic timeline (by calendar quarter) showing the major implementation phases throughout the project life.

Resourcing: A one-page graphic timeline (by calendar quarter and timeline phase) showing the projected vendor and IDOR resources required for each implementation phase shown on the timeline.

Cost Summary: A two-page, graphic cost summary (by calendar year and timeline phase) showing the expected vendor related one-time implementation and recurring support/maintenance cost ranges (Low & high based on current understanding) and any assumptions or considerations. These cost items should include, but not be limited to, software license, integration/implementation services, project management, data transition, third party products & services, training, facilities & supplies, hardware, recurring license fees, upgrade/patches, and recurring vendor support/staffing.

Definition: This definition should include the drivers for each cost (i.e. driver for software license cost could be number of users or citizens.)

IDOR recognizes this will be difficult given partial requirements and therefore will accept tight ranges for resources and costs.




7.0 Submission Requirements IDOR requests responses for this RFI from qualified vendors. All vendor communication in regards to RFI 17-082 must be directed to [email protected]. Qualified vendors are those who have implemented one or more of the capability bundles describe in Section 6 for multiple U.S. states. The responses for this RFI will include a written response described in Section 7.2. The response may also include a qualified vendor presentation described in Section 7.3.

7.1 Intent to Respond Vendors that wish to reply to this RFI must submit an “Intent to Respond” form presented in Appendix I. The “Intent to Respond” form must be submitted in writing via email to [email protected] no later than 3:00 p.m. EST on April 17, 2017 in order to receive priority vendor presentation scheduling. The final due date to submit an “Intent to Respond” to participate in vendor presentations will be 3:00 p.m. EST on April 24, 2017. To receive access to the Bidders’ Library, the “Intent to Respond” must be submitted with a signed DOR Confidentiality Agreement, provided in Appendix C. Any vendors who submit an “Intent to Respond” shall include the following phrase in the email subject line: “Intent to Respond to RFI 17-082, Revenue Modernization - Integrated Tax Systems and Services”.

Vendors should indicate the capability bundles they are qualified to provide on the “Intent to Respond” form. Vendors may select one or more capability bundles. The IDOA will use the information in the “Intent to Respond” form to coordinate and schedule presentations for qualified vendors.

7.2 Written Response Format In the interest of time, the State has a strong desire to receive and review condensed, open format, content rich responses. In order to maintain objectivity and brevity, the State has established a structured format for vendor written responses to the RFI requirements. All narrative responses must be provided to the State in a PDF or Microsoft Word format and should be single-spaced pages written with a font size no smaller than eleven (11) point. Supplemental materials can be submitted in the response as exhibits, and will not count against the page number limits outlined below for the narrative response; however, the State may choose not to review these items so every attempt should be made to include a full and complete response in the allocated page limits.

Vendors must submit a structured response document with the separate sections outlined below. Supplemental exhibits should be clearly referenced in the response document and included following the structured document.

Section Required Information Page Limit Corporate Contact Information Vendor’s contact information for this RFI opportunity:

Contact Person Corporate Address Contact Person’s email address Contact Person’s phone number

1 page

Company Structure Vendor’s Company Structure to include: Description of the types of business ventures in which

the organization is involved Chart of the organization

2 pages

Company Financial Information Vendor’s financial statement including an income N/A

mailto:[email protected]





Section Required Information Page Limit statement and balance sheets for each of the two (2) most recently completed fiscal years If the financial statements being provided by the vendor are those of a parent or holding company, additional financial information should be provided for the entity/organization responding to this RFP

Corporate Capabilities Summary of corporate capabilities as they relate to this RFI

1 page

State Government Experience Provide a description of experience serving state governments in the capacity requested in this RFI including clients of comparable size and complexity.

3 pages

Response To Current Business Function Definitions

Provide a description of any issues or concerns you have with the business function definitions and describe additional information you would like to be included in the RFP.

2 pages

Response to Current Technology Solutions and Infrastructure Definitions

Provide a description of any issues or concerns you have with the technology solutions and infrastructure definitions and describe additional information you would like to be included in the RFP.

2 pages

Response to Service Level Requirements

Provide a summary description of your ability to satisfy the provided service level requirements and adhere to provided technical standards in Appendix A1. Fully explain any issues or concerns.

2 pages

Response to Technology Requirements

Provide a summary description of your ability to satisfy the provided technical requirements and adhere to provided technical standards in Appendix A1. Fully explain any issues or concerns.

3 pages

Response to Process Driven Functional Requirements

Provide a summary description of your ability to satisfy the stated and implied functional requirements in Appendix A2, Appendix E and Appendices H-(TR…PP). Fully explain any issues or concerns.

3 pages

Response to Project Related Requirements

Provide a summary description of your ability to satisfy the provided project related services and requirements as requested in Section 5.4.

5 pages

Response to Implementation Alternatives

Provide a description of your alternative implementation approaches, timelines and associated costs for each capability bundle described in Section 6.0.

4 pages per capability bundle

Response to Preliminary Contract Terms and Conditions

Provide any issues or concerns you have with the preliminary terms and conditions outlined in Appendix D.

1 page

Comments on RFP Process Provide any issues or concerns you have with the proposed RFP process in Section 8.0.

1 page

7.3 Vendor Presentations IDOA and IDOR may hold vendor presentations from May 10 through May 26, 2017 at the Indiana Government Center in Indianapolis, Indiana. IDOA will contact each qualified vendor to identify a date and time that is mutually acceptable to both parties, upon receipt of the Intent to Respond form. At this




time, IDOA will also work with the vendors to agree upon the length of each presentation. In general, the length of presentations will range from four (4) to seven (7) hours, depending on the complexity of the content presented. The vendors are required to adhere to the presentation structure and agenda defined below. Additional questions may be added to a vendor’s agenda, depending on the subject area. Additional information related to the vendor presentations will be provided to each individual vendor during the scheduling process.

Topic Allowed Time Facilitator Expected Content Introductions Ten (10) minutes IDOA Introductions of key State staff

Vendor introductions Project Overview Fifteen (10)

minutes IDOR Modernization project background

High-level discussion of current state Vendor Corporate Overview

Ten (10) minutes Vendor Corporate qualifications and experience Vendor capabilities and solution overview

Executive Summary Thirty (30) minutes

Vendor High-level executive summary of proposal including a summary of major issues and concerns

Vendor Presentation – Functional Capabilities

Ninety (90) minutes

Vendor Demonstrate the functional capabilities of your solution(s) as they align to our processes

Present your ability to satisfy stated and perceived functional requirements and future state process definitions

Vendor Presentation – Solutions, Infrastructure & Service Level Capabilities

Sixty (60) minutes

Vendor Present your ability to satisfy stated and perceived solutions, infrastructure and service level requirements

Present your solutions, infrastructure and service level best practices and lessons learned.

Vendor Presentation – Project Related Capabilities

Sixty (60) minutes

Vendor Present your ability to satisfy stated and perceived project related requirements

Present your project related best practices and lessons learned.

Vendor Presentation – Comparable Project Results

Thirty (30) minutes

Vendor Present project results and 2 U.S. states considered to be comparable in size and complexity to Indiana.

Vendor Presentation – RFP Process

Fifteen (10) minutes

Vendor Present and issues or concerns with the RFP process including where you will need more detail than currently provided in the RFI.

Follow-up Questions from IDOR

Twenty (20) minutes

IDOR/ Vendor

Follow-up questions and discussion relating to vendor presentation

Vendor Presentation – Capability Bundles

Ninety (90) minutes

Vendor For each capability bundle represented in Section 6, briefly present each alternative implementation approach including the estimated timeline, cost, complexity and risk of the various phases as well as the impact on implementation activities including conversion, testing and training. Please remember IDOR is looking for various implementation approaches that would reduce the overall length and/or cost of the project. An example might be the ability to reduce the




Topic Allowed Time Facilitator Expected Content number of project phases or increase in the overlap of phases.

Follow-up Questions from IDOR

Twenty (20) minutes

IDOR/ Vendor

Follow-up questions and discussion relating to vendor presentation

7.4 Bidder’s Library IDOR has assembled several supporting documents in their Bidder’s Library. Access to the Bidder’s Library will be limited to vendors who express an Intent to Respond. Interested vendors are required to submit an “Intent to Respond” form provided in Appendix I and signed DOR Confidentiality Agreement provided in Appendix C with a request to access this secured Bidder’s Library. To obtain a username and password to the library, contact [email protected], no later than 3:00 p.m. EST on May 1, 2017. Please see Section 7.1 of this RFI.

7.5 Proposal Documents Submission All questions in regards to RFI 17-082 must be submitted in writing to [email protected] no later than 3:00 PM EST on March 23, 2017. The email subject line should contain the following phrase:

“Questions for RFI 17-082, Revenue Modernization – Integrated Tax Systems and Services”.

All proposals must be received at the address below by the Procurement Division no later than 3:00 p.m. EST on May 1, 2017. Each Vendor must submit one original CD-ROM (marked "Original") and five (5) complete copies on CD-ROM of the proposal, including other related documentation.

Indiana Department of Administration Procurement Division 402 West Washington Street, Room W468 Indianapolis, IN 46204

It is important to note that all information submitted in vendors’ proposals to this RFI 17-082 will be kept confidential and will not be made available to the public unless this RFI results in the release and award of an RFP at a later date. If an RFP results from this RFI 17-082, then the information contained in the proposal submissions for this RFI 17-082 must be available to the public once the resulting RFP has been awarded and the protest period has ended. However, any proprietary information can be kept confidential as long as it is marked clearly in your proposal submission as “CONFIDENTIAL MATERIAL”. It is the responsibility of the vendor to ensure that all confidential information is easily identifiable to ensure it is not released as non-confidential material. It is recommended that vendors submit two responses; one public and one confidential for accurate archiving.






8.0 Future RFP Information

8.1 Overview

IDOR has launched a very aggressive plan targeting the selection of an ITS solution(s) and implementation services by the end of 2017. This RFI process is running concurrently with the definition of detailed requirements by major business processes. Even with aggressive efforts to accelerate the requirements definition efforts, they will not be completed until the middle of July, 2017.

In order to ensure we receive the best possible proposals from all qualified vendors and meet our goal to make solution and service decisions this year, IDOR is executing a multi-step process which includes this RFI, an RFP in June and an RFP Amendment in July. IDOR’s goal is to maintain an end of August vendor RFP response target by providing as much information as possible early in the process to remove the impact of having final requirements later in the process.

8.2 Planned Content

The current planned content for the RFP will be very similar to the RFI. IDOR expects to provide information explaining the evaluation process and more detailed contract preferences, technical standards and functional requirements. The initial RFP scheduled to be released in late June will include approximately 80% of the process related requirements and the RFP Amendment scheduled to be released in mid-July will include all requirements and business process information.

8.3 Planned Timeline

The following is the planned RFP timeline from the release of the initial RFP to the selection:

Initial RFP Published: By June 30th Due: September 5th Q&A With Vendors Begins: July 7th Ends: July 20th RFP Amendment Published: July 20th Due: Same as Initial RFP Initial Evaluation Begins: September 6th Completes: September 30th Vendor Workshops & Clarifications Begins: October 1st Completes: November 15th Proposal Revisions Due (possible) Completes: November 15th Final Evaluation, Scoring and Decision Begins: November 15th Completes: December 15th Approval and Vendor Notification Begins: December 15th Completes: December 22nd

• While IDOR is committed to these dates, they are subject to change.