Microsoft Word Viewer - 104118_1-1.docxTeacher Retirement System of Texas Pension Administration Line of Business
System Replacement
2:00 p.m., C.T., February 21, 2013
Deadline to Pre-Register for Mandatory Pre-Offer Conference Attendance via Audio Conference:
2:00 p.m., C.T., February 21, 2013
Mandatory Pre-Offer Conference: 2:00 p.m., C.T., February 28, 2013
Technical Offer Response Deadline: 2:00 p.m., C.T., April 12, 2013
Detailed Pricing Response Deadline:
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1.  Introduction ................................................................................................................................................6  2.  Definitions and Acronyms ..........................................................................................................................6  3.  Background................................................................................................................................................6 
13.1.  Receipt by TRS .............................................................................................................................23  13.2.  Offer Submission and Formatting .................................................................................................23  13.3.  Offer Content and Organization ....................................................................................................25 
1.  Contract Specific Terms and Conditions................................................................................................133  1.1.  Contract Term.................................................................................................................................133  1.2.  Renewal..........................................................................................................................................133  1.3.  Termination.....................................................................................................................................133  1.4.  Amendments to Contract ................................................................................................................134  1.5.  Additional Work...............................................................................................................................135  1.6.  Pricing.............................................................................................................................................135  1.7.  Warranty .........................................................................................................................................135  1.8.  Electronic and Information Resources Accessibility Standards......................................................137  1.9.  Contractor Requirements................................................................................................................137  1.10.  Acceptance, Invoicing, and Payment ..........................................................................................138  1.11.  Performance Payment ................................................................................................................139  1.12.  Contractor Limitation of Liability ..................................................................................................139  1.13.  Liquidated Damages ...................................................................................................................139 
SECTION VII. – APPENDICES ........................................................................................................................242  APPENDIX 1 – Additional TRS Information..................................................................................................243  APPENDIX 2 – TRS Enterprise Risk Management Policy ...........................................................................257  APPENDIX 3 – TRS Laws and Rules .............................................................................................................261  APPENDIX 4 – TRS CAFR ..............................................................................................................................262  APPENDIX 5 – TRS Handbooks and General Information ..........................................................................263  APPENDIX 6 – TRS Records Retention Schedule .......................................................................................264  APPENDIX 7 – TRS Business Processes .....................................................................................................268  APPENDIX 8 – TRS Web Self-Service Business Processes .......................................................................272  APPENDIX 9 – TRS Website Accessibility Standards.................................................................................273  APPENDIX 10 – Keyboard Navigation ..........................................................................................................275  APPENDIX 11 – Current Employer Reporting (Reporting Entity) Format .................................................276  APPENDIX 12 – TRS Signature Data.............................................................................................................302  APPENDIX 13 – Future Employer Reporting Needs – GAP Analysis ........................................................312  APPENDIX 14 – Employer Reporting Functionality Preferred Implementation Timeframe.....................315  APPENDIX 15 – Actuarial Extract File Layout..............................................................................................316  APPENDIX 16 – TRS Chart of Accounts .......................................................................................................318  APPENDIX 17 – Deposit Type Codes............................................................................................................351  APPENDIX 18 – Composite Framework Architecture .................................................................................353  APPENDIX 19– TRS FileNet P8 Imaging Process Flow...............................................................................354  APPENDIX 20 – Correspondence, Document and Forms Management Services ....................................356  APPENDIX 21 – TRS Segregation of Duty Rules .........................................................................................357  SECTION VIII. – APPENDICES - CONFIDENTIAL .........................................................................................375  PLEASE NOTE: This RFO consists of separately provided Appendices (Appendices 22 through 37), that contain information pertaining to TRS computer systems that is sensitive and confidential. These Appendices are referenced throughout the RFO. To obtain these additional Appendices, interested parties must (1) indicate they meet the minimum requirements stated in Section II, 13.3 TAB 2; (2) indicate an intent to submit an Offer in response to this RFO; and (3) execute a Non-Disclosure Agreement (See Attachment L) for this information. To comply, interested parties must submit the completed Non-Disclosure Agreement (Attachment L) via email to John Dobrich at john.dobrich@trs.state.tx.us and the additional Appendices will be made available. Additionally, if Respondent reveals or uses any information that is derived from TRS’ sensitive or confidential Appendices in an Offer, Respondent shall conspicuously mark all such information as “Confidential” wherever such information is revealed or used in the Offer.
The following documents are included as separate files on the Electronic State Business Daily. Attachment N - Detailed Pricing Matrix – Excel spreadsheet Attachment O - HUB Subcontracting Vendor Listing – Excel spreadsheet
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SECTION I – DESCRIPTION OF PROCUREMENT 1. Introduction The Teacher Retirement System of Texas (TRS) seeks an experienced pension administration line of business solution contractor for the development and implementation of a pension administration system and integration to related systems in accordance with the specifications contained in this Request for Offer (“RFO”).
2. Definitions and Acronyms Please see Attachment M for the definitions and acronyms used in this RFO. 3. Background
3.1. TEAM Program Overview
TRS is undertaking a modernization effort of its core processes and technologies used to administer a range of TRS benefits. The effort, known as the TRS Enterprise Application Modernization (“TEAM”) Program, will modernize non-investment TRS applications. This will be accomplished by several initiatives that will utilize new technologies to improve the quality of service delivered to its customers through a new Pension Administration Line of Business (LOB) system and automated interfaces. The active member, retiree and beneficiary pension benefits, non-investment, that TRS administers include:
3.1.1. A defined benefit retirement plan that is a qualified pension trust under Section 401(a) of the Internal Revenue Code. The pension trust fund provides service and disability retirement, as well as death and survivor benefits, to eligible Texas public education employees and their beneficiaries.
3.1.2. TRS-ActiveCare is a statewide health benefit program for eligible public education
employees of participating entities. It is financed by plan participant premium payments and investment income. Participation in that program has grown to over 445,969 employees and dependents. Of the 1,246 districts/entities eligible to participate in TRS- ActiveCare, over 88.9 percent, or 1,108 now do so.
Along with the four Preferred Provider Organization (PPO) plan options administered by Blue Cross and Blue Shield of Texas and Medco, there are three health maintenance organization (HMO) options offered under TRS-ActiveCare for the 2012-2013 plan year: FirstCare Health Plans, Scott & White Health Plan, and Valley Baptist Health Plans. These HMO options will provide additional plan choices to the employees of participating entities in areas served by these HMOs. These employees will be able to select TRS-ActiveCare coverage under one of the PPO plans or through the authorized HMO serving their part of the state.
3.1.3. TRS-Care is the group retiree health benefits program for TRS retirees and eligible
dependents. This program is financed by contributions from the state, active public school employees, reporting entities, premium payments from plan participants, and investment income. TRS-Care is the group retiree health benefits program administered by TRS. TRS retirees who are not eligible for ERS, UT, or Texas A&M system health benefit
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coverage may be eligible for TRS-Care. More than 212,742 retirees and their dependents participate in this plan. Aetna administers the medical benefits; Express Scripts administers the pharmacy benefits. Beginning in calendar year 2013, TRS-Care will begin offering a Medicare Advantage Plan and a Medicare Part D prescription drug plan in addition to the standard TRS-Care coverage.
3.1.4. An optional long-term care insurance program for eligible retirees and public school
employees. Certain family members are also eligible. The plan is available on an enrollee- pay-all basis. The group long term care insurer is always selected by the TRS Trustees following a competitive bidding process. The current group long term care insurer is Genworth Life Ins. Co. (Genworth), a part of Genworth Financial.
3.2. TEAM Program Description
This section provides an overview of the TEAM Program organization. Note that this is the ‘Program’ organization and not the agency organization.
3.2.1. TEAM Program Organization
3.2.1.1. The TRS Board of Trustees (Board) is responsible for the administration of the
system under provisions of the state constitution and laws. The Board will receive routine and ad hoc status reports, and serve as the final decision- making authority for the TEAM Program. The board is composed of nine appointed trustees with staggered terms of six years.
3.2.1.2. Independent Program Assessment (IPA) will provide an independent assessment of the TEAM Program, interface with other project contractors, and provide analyses and status reports to the Board and the Executive Director, or the Executive Director’s designee.
3.2.1.3. The Executive Sponsor will provide ongoing, day-to-day oversight of the TEAM Program and leads the Executive Steering Committee.
3.2.1.4. The Executive Steering Committee (ESC) provides ongoing oversight of the TEAM Program and reports to TRS’ Executive Director. ESC Members include the Executive Sponsor, Chief Benefit Officer; Chief Financial Officer; Director of Healthcare Policy and Administration; Chief Information Officer, Human Resources Executive (non-voting, advisory) and Chief Audit Executive (non- voting, advisory).
3.2.1.5. The State of Texas Quality Assurance Team’s (QAT) primary purpose is to review the status of major information resources projects, based on a framework of templates, reports and processes, and to make recommendations to the legislature to reduce risk of project overruns and failures. TRS is reporting under the Department of Information Resources (DIR) Texas Project Delivery Framework for the TEAM Program.
3.2.1.6. TRS Enterprise Risk Management (ERM) is responsible for providing risk assessment facilitation and identification for TRS. ERM interfaces with TEAM Program Management, the Executive Steering Committee, Core Management Team and the Project Management Office (PMO).
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3.2.1.7. Core Management Team (CMT) is responsible for the daily operation of the TEAM Program. This team reports to the TEAM Executive Steering Committee and is comprised of managers and team leads including, but not necessarily limited to: Benefit Accounting; Benefit Counseling; Benefit Processing; General Accounting; and Information Technology.
3.2.1.8. TEAM Program Manager acts as a liaison between the TEAM projects and selected contractors under the direction of TEAM CMT and TEAM ESC. The TEAM Program Manager is responsible for overall Program management and review of the various Program elements (e.g., data management, reporting entity outreach, new Pension Administration Line of Business (LOB) system solution, and other associated Program elements) and will provide independent objective advice, recommendations, and solutions to achieve Program success, transparency, and delivery.
3.2.1.9. TRS Project Management Office (PMO) and the TEAM Program Manager will provide project management of the projects that comprise the TEAM Program. Daily project management includes: risk identification and mitigation; issue tracking and resolution; project scheduling and resource loading; project status reporting; deliverable review; and requirements traceability.
3.2.1.10. Core Program Team (CPT) supports the entire TEAM Program and consists of
Business Process Managers, Business Process Analysts, and the Solutions Architect, all of whom are one hundred percent (100%) dedicated to the TEAM Program and each project within the TEAM Program.
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3.2.3. TEAM Program: Project Descriptions
The TEAM Program is a cohesive collection of projects that, upon completion, will enable TRS to meet business and technology objectives over the next ten to twenty (10-20) years. The following projects make up the TEAM Program and will be conducted at various stages throughout the new LOB development cycle. Additionally, these projects may be scheduled to run concurrently or individually and the individual projects may be conducted by TRS staff or by contractors.
3.2.3.1. Pension Administration Line of Business (LOB) System Replacement
Project
The Pension Administration Line of Business (LOB) System Replacement project is at the core of the TEAM Program. The LOB project is singularly larger and more complex than all of the other projects combined, for it is the vehicle that delivers the administration of benefits. The LOB project will provide all of the necessary functionality to support every transaction that can occur during the life of the relationship between a member and an employer with TRS. This includes replacing functionality found in TRS’ current internally developed and maintained pension administration systems containing member contribution, benefit, demographic, financial, and health care related data (including but not limited to the following applications):
1. DCLM – Death claim application used to track the status of death claims for active and retired TRS members.
2. HEIN – Health insurance application used to track information about health insurance for retirees.
3. LGRS – The ledger application displays demographic and financial information
(including financial history) for members past and present.
4. MEMR – The member records application used to maintain and display demographic, service, and salary information for TRS members including historical information.
5. REFM - The refunds application that tracks refund information when people
terminate TRS membership and request the return of their contributions and any posted interest.
6. RETP – The retirement setup application used to transition members to a retiree
status.
7. TRAQS – The TRS Reporting and Query system is used by the reporting entities (e.g., school districts, higher education institutions, service centers, and charter schools) to provide contract, contribution, and salary information for TRS members and it is used internally for the management of the reporting and financial functions.
8. SSBB – The special service buy back application is used to track the status and
payments for service purchases. It includes functionality for the monthly installment payment option and tracking incoming rollover payments.
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3.2.3.2. Data Management Project
The Data Management Project will prepare TRS’ data for migration to the new LOB. To ensure that the data contained in the new LOB is accurate, complete and consistent, TRS needs to analyze existing data on all platforms to determine the scope of potential data issues and identify redundant data that can be eliminated with the modernization effort. TRS can then address the issues and eliminate redundancies by correcting the data through a conditioning process. Appropriate data will then be ready to migrate to the new LOB.
3.2.3.3. Financial System Replacement Project
The Financial System Replacement Project (FSR) will replace the current General Ledger Accounting System (GLAS) and the Budget, Expense and Vouchering System (BEVO). In addition to financial management functionality, purchasing and contract management, budget planning, and human resources and payroll management functionality is included within the FSR scope.
3.2.3.4. Organizational Change Management Project
The Organizational Change Management (OCM) Project addresses the unique challenges that arise when implementing a large initiative such as TEAM. It involves strategies to help TRS employees transition to the new business processes, roles and responsibilities resulting from TEAM with the least amount of confusion, resistance, and anxiety possible. The OCM efforts are distinct from technical project change management activities.
3.2.3.5. Business Rules Project
The Business Rules Project is chartered with creating a single source for recording and maintaining business rules. The business rules need to be maintained as frequently as changes occur and be readily available to both internal and external parties who may need the rules, including TRS staff and potential or current contractors.
The Business Rules Project will capture all TRS business rules related to the LOB in a template to be developed for this purpose. The project consists of two teams: a writing team that will prepare the templates and draft initial business rules, and a review/approval team that will review and approve all business rules as they are prepared for accuracy and completeness of information.
3.2.3.6. Reporting Entity Outreach Project
The Reporting Entity Outreach Project will prepare Reporting Entities, Education Service Centers, and Software Providers (collectively referenced here as “REs”) to use the new LOB, including a new web interface, reporting format, queries, reports, enrollment and payroll reporting screens. To ensure that REs are fully prepared, the project includes frequent communication with REs, and comprehensive training for all REs on the new screens, queries, report submission process, and other features of the new web interface.
This project will also help to ensure that all REs have as much time as possible to change their current reports. New reporting formats will be provided to the REs as soon as they’re available and all REs will be provided with access to a testing environment. Each RE will
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submit report(s) to a certification environment for final validation and approval which will help to ensure a successful transition to the new LOB.
3.2.3.7. Business Procedures and Training Project
The Business Procedures and Training Project will ensure that TRS staff is trained on new business processes and are well-prepared to use the new LOB. This will be accomplished by developing desk-side procedures and conducting a comprehensive training program for all staff which covers all features and functionality of the new LOB.
3.2.3.8. Legacy System Decommissioning Project
TRS has determined that the new LOB will be implemented in stages. As functionality becomes available in the new LOB following each staged implementation, there will be components of the current TRS legacy system(s) that need to be turned off (decommissioned, disabled, or removed.) Examples of items included in the decommissioning effort are disabling or removing full and partial screens, reports, batch jobs, etc.
The decommissioning effort requires changes to the TRS Legacy system(s). When TRS decommissions components of the legacy system(s), TRS has to test to be certain those changes do not affect other associated TRS legacy system components or programs that are still needed. This testing also ensures that the remaining components in the TRS legacy systems(s) continue to work properly with the new functionality provided by the new LOB. The Legacy System Decommissioning Project is responsible for managing the updates, testing, and deployment of the remaining portions of the TRS legacy system(s) at each stage of deployment of the LOB.
3.2.3.9. Maintenance & Enhancements (M&E) of the New LOB
After functionality in the new LOB is deployed into production there will be a need to maintain (fix) and possibly enhance the new LOB functionality. The M&E of the new LOB will be responsible for managing the development, testing and deployment of the maintenance and enhancements in the new LOB.
3.2.3.10. TRS Website Enhancements
Maintaining and improving the external TRS website are ongoing responsibilities that are included in the TEAM Program. The website was last updated in December, 2006. The project to enhance the TRS Website will ensure consistency with the look and feel with the LOB, enhance the website with new functionality, and provide additional security. Usability changes that will make it easier and faster to find information on the TRS website are also required. These enhancements will allow TRS to provide enhanced services to participants.
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4. Objective The goal of the Pension Administration Line of Business System Replacement RFO and the resulting project is for the Teacher Retirement System of Texas to select an experienced, successful public pension solution contractor that will develop and implement a cost effective, efficient, and sustainable program of business and technological functionality and processes that will enable TRS to serve the expanding and ever-changing needs of its customers. The Pension Administration Line of Business System Replacement project will be part of the TEAM Program that TRS has undertaken. The LOB project shall include the following business and technical functionality and processes:
a. General LOB b. 1099R c. Annuity Payroll d. Audit e. Benefit Adjustments f. Benefit Calculation g. Benefit Estimates h. Cash Receipts i. Check Payment j. Contact Management k. Conversion and Bridging l. Death Benefits m. Disability Benefits n. Employer Reporting o. Employer Setup p. Enrollment q. Health Insurance r. Legal Orders s. Member Account Maintenance t. Member Statements u. Refunds v. Retirement Application Process w. Retirement System Transfer x. Service Credit Calculation y. Service Credit Purchase z. Statistical Reporting aa. Sub ledger bb. Training and Agency Support cc. Web Self-Service dd. Workflow ee. General Technical ff. Hardware gg. Software hh. Disaster Recovery ii. Post Implementation Support jj. Security
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SECTION II – GENERAL OFFER INFORMATION Respondents must read this Section II carefully. TRS may disqualify a Respondent’s Offer if the criteria listed in this Section II are not met, demonstrated or provided. 1. Respondent Minimum Qualifications This RFO contains minimum qualifications a Respondent must meet to be considered for a contract award. See Section II, 13.3, TAB 2 below for a detailed description of minimum qualifications.
2. Point-of-Contact for this Procurement
John Dobrich, CPPB, CTPM, CTCM Purchasing and Contracts Manager Teacher Retirement System of Texas 1000 Red River St. Austin, TX 78701-2698 Telephone: (512) 542-6569 Email: john.dobrich@trs.state.tx.us Respondents shall make no contact concerning this RFO with TRS Board members, TRS management, or other TRS personnel, except to the Point-Of-Contact listed above. Failure to comply with this requirement may result in disqualification of Offer.
3. Deadline for Submission of Offer
The deadline for submitting a response to this Request for Offer is Friday, April 12, 2013 at 2:00 p.m. Central Time (CT).
4. Calendar of Events
This information is provided for planning purposes only and is subject to change as TRS deems necessary. Any changes affecting the schedule up to and including the point of the RFO Response Due Dates will be effected via the issuance of an addendum (see Section II, 7.)
DATE EVENT
January 23, 2013 Posted to the Electronic State Business Daily
February 21, 2013 at 2:00 p.m. C.T. Deadline for Submission of Written Questions
February 21, 2013 at 2:00 p.m. C.T. Pre-registration deadline for Mandatory Pre-Offer Conference Attendance via Audio Conference
February 28, 2013 at 2:00 p.m. C.T. Mandatory Pre-Offer Conference
March 18, 2013 Final Question and Answer Document Posted to the Electronic State Business Daily
April 12, 2013 at 2:00 p.m. C.T. Technical Offer and Preliminary Budget Estimate Due
May 6, 2013 to May 17, 2013 Respondents Site Visits to TRS – Current Functionality Assessment
June 6, 2013 at 2:00 p.m. C.T. Detailed Price Responses to RFO Due
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June 11, 2013 Finalists Notified
June 24,2013 to June 27, 2013 Finalists’ Interviews and Product Demonstrations
July 10, 2013 Notification of Intent to Award Proof of Concept
July 15, 2013 Start Contract Negotiations / Best and Final Offer for Proof of Concept
July 31, 2013 to September 27, 2013 Proof of Concept
September 30, 2013 Notification of Intent to Award Pension Administration Line of Business System Replacement
November 1, 2013 Start Contract Negotiations / Best and Final Offer for Pension Administration Line of Business System Replacement
October 21, 2013 Start Date of Contract for Pension Administration Line of Business System Replacement
5. Events
5.1. Submission of Non-Disclosure Agreement Form
5.1.1. This RFO consists of separately provided Appendices (Appendices 22 through 37), that contain information pertaining to TRS computer systems that is sensitive and confidential. These Appendices are referenced throughout the RFO. To obtain these additional Appendices, interested parties must (1) indicate they meet the minimum requirements stated in Section II, 13.3 TAB 2; (2) indicate an intent to submit an Offer in response to this RFO; and (3) execute a Non-Disclosure Agreement (See Attachment L) for this information. To comply, interested parties must submit the completed Non-Disclosure Agreement (Attachment L) via email to John Dobrich at john.dobrich@trs.state.tx.us and the additional Appendices will be made available. Additionally, if Respondent reveals or uses any information that is derived from TRS’ sensitive or confidential Appendices in an Offer, Respondent shall conspicuously mark all such information as “Confidential” wherever such information is revealed or used in the Offer.
5.2. Submission of Written Questions Requirements
5.2.1. Respondents may submit questions in writing regarding this RFO prior to the Pre-Offer
Conference. Written questions must be submitted no later than 2:00 p.m. C.T. on Thursday, February 21, 2013. All questions shall, to the highest degree possible, cite the specific RFO section and paragraph number(s) to which the question refers. Selected questions received by TRS prior to the date and time above will be answered at the Pre- Offer Conference and all questions received will be answered in a question and answer written document issued by TRS. Only questions provided in writing and answered in writing by TRS are official or binding.
5.2.2. All query submissions must include the identity of the sender, the sender's title, as well as Respondent’s name, mailing address, telephone number, and email address as applicable.
5.2.3. Questions must be submitted to the Point-Of-Contact via email, postal mail, or hand delivery using the Point-Of-Contact information found in Section II., 2. TRS is not responsible for answering questions received after the submittal deadlines.
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5.2.4. Only information in the materials constituting this RFO, including its appendices,
attachments, exhibits, and forms, the question and answer document(s), and any RFO addenda issued shall be binding on TRS.
5.3. Pre-Registration for Audio Conference Participation in the Pre-Offer Conference
5.3.1. TRS requests that any Respondent who intends to participate in the Pre-Offer
Conference via audio conference pre-register by sending an email to the Point of Contact listed in Section II, 2 no later than 2:00 p.m., C.T. on Thursday, February 21, 2013. The contents of the email shall include the following:
5.3.1.1. Subject Line: Pre-registration for Pre-Offer Conference for Pension
Administration Line of Business System Replacement Services 5.3.1.2. Name of person attending the audio conference; 5.3.1.3. Respondent’s company name and complete address; and 5.3.1.4. Telephone number and email address of person attending the audio conference. 5.3.1.5. Please ensure accuracy of this information as it will be used to contact
Respondents in the event an addendum is issued.
5.4. Pre-Offer Conference
5.4.1. Mandatory Pre-Offer Conference
5.4.1.1. A mandatory Pre-Offer conference will be held at 2:00 p.m., C.T. on Thursday, February 28, 2013 in the cafeteria at TRS’ facility located at 1000 Red River Street in Austin, Texas. This Pre-Offer Conference is mandatory. All Respondents are required to attend either in person or via audio conference. Offers will only be accepted from those Respondents who had a representative attending the conference.
5.4.1.2. The purpose of this conference will be to highlight specific RFO information, and
review questions received as well as TRS’ intended responses. Any prospective Respondent attending this conference is encouraged to raise additional questions or seek additional clarification. All questions received as well as all additional questions and clarifications will be addressed in the question and answer document posted to the ESBD as specified in Section II., 5.5.
5.4.1.3. The Pre-Offer conference will be recorded.
5.4.1.4. TRS will conduct the Pre-Offer conference both in-person and by audio
conference.
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5.4.1.4.1.1. TRS recommends in-person attendance at the Pre-Offer conference. Respondents shall make arrangements to be at the meeting at the listed starting time. Respondents attending in-person will be required to provide information on a sign-in sheet to verify attendance.
5.4.1.4.2. Audio Conference
5.4.1.4.2.1. TRS will make a reasonable effort to ensure the availability
of audio conferencing.
5.4.1.4.2.2. TRS requests that any Respondent who intends to participate via audio conference pre-register as stated in Section II, 5.3.
5.4.1.4.2.3. Audio conference attendees are requested to call in no later than ten (10) minutes prior to the meeting start time. A roll call of pre-registered attendees will be conducted to verify attendance.
5.4.1.4.2.4. TRS will not be responsible for technical difficulties.
5.4.1.4.2.5. If more than one person is attending via audio conference, please participate as a group and dial in from a single number.
5.4.1.4.2.6. Dial-In Instructions:
To access the Pre-Offer conference specified dial toll free 877-820-7831. When prompted, use the passcode 674040 followed by the pound sign (#) and you should be connected.
5.5. Answers Posted
5.5.1. Questions properly submitted and Answers to all questions (See Section II, 5.2 above) will
be made available in writing on the Electronic State Business Daily (ESBD) website (See Section II., 5.5.2 below) no later than the date and time indicated in the Calendar of Events (See Section II., 4).
5.5.2. The ESBD web address for this solicitation is:
http://esbd.cpa.state.tx.us/bid_show.cfm?bidid=104118
5.6. Submission of Technical Offer and Preliminary Budget Estimate
5.6.1. Offers are due no later than 2:00 p.m., C.T. on Friday, April 12, 2013. Offers submitted at this time shall include both technical components (all of the requirements listed in Section II., 13.3 below and the mandatory commitments as listed in Section III. Scope of Work), as well as the estimated total price of the Offer. All Respondents shall provide estimated pricing in the format included as a separate file on the Electronic State Business Daily (Attachment N). Please note this estimated pricing will not be evaluated at the time of initial Offer submission, but will be used
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for budgeting purposes. TRS will begin evaluating required components, minimum qualifications, and performing an evaluation of the Technical components of the Offer.
Submission of detailed pricing is required as described in Section II., 5.8 below.
5.7. Respondents Site Visits to TRS – Current Functionality Assessment
5.7.1. Upon completion of the initial evaluation of required components and demonstration of minimum qualifications, TRS will invite those Respondents TRS deems initially qualified for an on-premises visit to TRS’ facility at 1000 Red River Street in Austin, Texas to review and assess TRS’ current pension administration system functionality. The Respondent will have the opportunity to review existing hardware, software, processes, and ask questions of staff. Each Current Functionality Assessment (CFA) session shall last no longer than 8 hours over a single day and TRS will work to schedule an appropriate time with qualified Respondents; however, it is the Respondent’s sole responsibility to be available for a CFA during the overall time period TRS has allocated for this activity. TRS intends to complete the CFA sessions quickly, thus the Respondent staff attending the CFA will only be able to split into a maximum of two separate teams. The Respondent attending the last CFA shall have a minimum of 13 days to prepare detailed pricing.
5.7.2. This assessment is the opportunity for the Respondent to appropriately price out the
following commitment as defined in the General LOB commitment section:
5.7.2.1. ”Shall implement a system to allow for all of the current core system functionality for the retirement plan and the active member and retiree health care programs in order to perform day-to-day business as defined in Revised Statutes of Texas applicable to TRS and TRS Board rules in the Texas Administrative Code. These provisions will be described in detail during the requirement gathering sessions and documented. (See TRS Statutes in Appendix 3)”
5.8. Submission of Detailed Price Responses
5.8.1. Detailed Price Responses are due no later than the date and time indicated in the
Calendar of Events in Section II., 4. All Respondents shall provide detailed pricing in the format included as Attachment N (a separate file on the Electronic State Business Daily). Pricing must be received in this format to allow accurate price comparison. FAILURE TO SUBMIT TIMELY DETAILED PRICING MAY RESULT IN THE REMOVAL OF THE OFFER FROM FURTHER CONSIDERATION FOR AWARD.
5.8.2. Offers submitted in response to this solicitation shall be irrevocable for one hundred eighty (180) calendar days following the closing date. This period may only be extended at the TRS Purchasing Manager’s request, or the Purchasing Manager’s designated agent, and with Respondent’s written agreement.
5.9. Finalists Notified
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5.9.1. While the exact number of finalists cannot be determined until the evaluation committee has concluded their evaluation of both Technical Offers and Detailed Price Responses received, TRS intends to invite all qualified Respondents to the next phase of the procurement process. TRS will notify a group of finalists no later than the date and time indicated in the Calendar of Events in Section II., 4. and allow sufficient time to prepare for Finalist Interviews and Product Demonstrations.
5.10. Finalist Interviews and Product Demonstrations
5.10.1. Finalist Interviews serve the purpose of providing an additional opportunity for both TRS
and the Respondent to clarify the requested services and the Respondent’s Offer. Following the Finalist Interview process, Finalists will have the opportunity to provide Product Demonstrations to convey the features and capabilities of the offered solution. Upon completion of the Product Demonstrations, TRS’ evaluation committee will select the solutions that in TRS’ evaluation committee’s sole judgment would best meet TRS’ needs. Representations made during Interviews or Demonstrations may be documented and agreed upon. Once documented and agreed upon, these representations may be incorporated into the Finalist’s offer.
5.10.2. The Finalist Interviews and Product Demonstrations will be held at:
Teacher Retirement System of Texas 1000 Red River St. Austin, TX 78701-2698
5.10.3. Respondent shall be available for a Finalist Interview in accordance with the Calendar of
Events in Section II., 4. Respondents that are not available within this timeframe may not be considered for a contract award.
5.10.4. Attendance of the key staff Respondent intends to assign to the Pension Administration
Line of Business System Replacement Services Project is mandatory at both the Finalist Interview and Product Demonstration.
5.10.5. Respondent’s key staff offered to perform work for TRS must present all information during
the Finalist Interview. However, Respondent may have anyone present information during the initial (30) minutes of the Interview.
5.10.6. Respondent is hereby notified that TRS’ evaluation committee will rely on the accuracy
and content of information conveyed to TRS during Finalist Interviews in forming opinions of the Respondent’s offered solution. As such, TRS considers all information provided during Finalist Interviews to be binding on Respondent and TRS intends to record the Finalist Interview sessions. Representations made during Interviews or Demonstrations may be documented and agreed upon. Once documented and agreed upon, these representations may be incorporated into the Finalist’s offer.
5.10.7. TRS will not be responsible for payment of any amounts associated with the Finalist
Interview or Product Demonstration, either prior to, or after contract award.
5.11. Review and Discussion
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5.11.1. When Offers are reviewed and evaluated, a contract may be awarded. However, TRS may request Best and Final Offer (BAFO) phases for both a Proof of Concept and the Pension Administration Line of Business System award. If TRS elects to request a BAFO, TRS may conduct discussions with Respondents who submitted Offers. In this context, “discussions” means clarifying, modifying, or negotiating. Additionally, after the initial evaluation TRS may determine it is necessary to discuss acceptable or potentially acceptable Offers with Respondents in order to determine a Respondent’s ability to meet the RFO requirements. If discussions are conducted for this purpose, Respondents whose Offers are found to be acceptable or potentially acceptable may be given equal opportunity to discuss their Offer with TRS and resubmit them accordingly. In this context “potentially acceptable” means reasonably susceptible to being made acceptable. No changes to responses or prices shall be allowed after BAFOs are received unless TRS, in its sole discretion, determines that resubmission is in TRS’ best interest.
5.12. Best and Final Offer for Proof of Concept
5.12.1. TRS intends to invite a limited number of Finalists to submit a Best and Final Offer (BAFO) to conduct a Proof of Concept (POC). As the specific POC scope is anticipated to vary based on the solutions Offered, TRS will further define the POC scope and requirements when a BAFO is requested. With a BAFO response, the Respondent may choose to modify the original Offer to (a) lower the overall price of the offered solution, (b) increase the level of features of the offered solution, (c) increase the level of associated services provided for the offered solution, (d) provide additional options not listed in this section, or (e) provide a combination of these options, for the purposes of making the original POC offered more attractive to TRS. Upon review and evaluation of the POC BAFO response, TRS intends to contract with a selected Finalist for preparation and implementation of a POC.
5.13. Proof of Concept
5.13.1. TRS intends to contract with the selected Respondent to prepare and implement a POC
for the offered solution, methods, or functionalities to demonstrate the solution’s feasibility on a limited scale and in a controlled environment. This POC is intended to provide TRS with a broad understanding and a level of appropriate, demonstrated success. The POC must establish a useable solution for TRS, the ease of TRS configuration through hands- on experience for a select group of subject matter experts, information technology personnel, and users.
5.13.2. In the event the POC is not acceptable or unsuccessful, TRS reserves the right to
terminate the POC and request a POC BAFO from another Respondent.
5.14. Best and Final Offer for Pension Administration Line of Business System
5.14.1. TRS intends to then invite the successful POC Respondent to submit a Best and Final Offer (BAFO) for the Pension Administration Line of Business System. As with the POC BAFO response, the Respondent may choose to modify the original Offer to (a) lower the overall price of the offered solution, (b) increase the level of features of the offered solution, (c) increase the level of associated services provided for the offered solution, (d) provide additional options not listed in this section, or (e) provide a combination of these options, for the purposes of making the original Offer more attractive to TRS. Upon review and evaluation of the BAFO response, TRS intends to enter into contract negotiations.
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5.15. Selection and Contract Negotiations
5.15.1. Upon successful contract negotiations, TRS will award a contract and both parties must execute the final contract documents. At this time, the Respondent will be the Pension Line of Business Contractor for the TEAM Program.
6. TRS Options Throughout Solicitation Process
6.1.1. TRS’ rights include, but are not limited to:
1. Cancellation of the RFO at TRS’ sole discretion; 2. Suspension of the procurement process and/or issuance of RFO addenda; 3. Rejection of any and/or all Offers received in response to the RFO; 4. Waiver of administrative deficiencies in Offers received; 5. Requesting any Respondent to submit Offer modifications addressing a subsequent
RFO amendment; and 6. Requesting any Respondent to clarify their Offer and/or submit additional information
pertaining to their Offer.
7. Addenda
7.1. If specifications are revised, TRS will issue an addendum addressing the specific change(s). Any addenda to this RFO will be made available on the Electronic State Business Daily (ESBD) website (See Section II., 5.5.2 above.) Respondents are advised that they are solely responsible for checking the ESBD website for any addenda prior to submitting a response to this RFO. Respondents shall indicate receipt of all addenda issued by TRS on Attachment A - Execution of Offer.
8. Offer Requirements
8.1. Responsibilities of the Respondent
Respondent shall adhere to the following requirements when submitting an Offer:
8.1.1. Any assumptions made in the Offer must be specifically identified in a highly conspicuous
manner and presented in written format;
8.1.2. Any exceptions to the RFO provisions must be specifically identified in a highly conspicuous manner and presented in writing identifying the specific RFO section and the exception taken (see Section II., 13.3.3, Tab 10) along with a proposal for modification. The quantity and substance of exceptions will be used in evaluation of the quality of an Offer. Only noted exceptions will be the subject of any contract award negotiations; and
8.1.3. TRS will not return any Offer submission.
9. Procurement and Contract Documents
9.1. TRS operating expenses are paid by a portion of the trust assets that it administers. Consequently, TRS may be exempt from some state law requirements applicable to legislatively-appropriated
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general revenue funds. Nevertheless, TRS may conduct this procurement in accordance with the rules of the Texas Comptroller of Public Accounts (CPA), including, but not limited to, the procedures prescribed by the CPA for the RFO process. TRS reserves the right to vary from CPA rules and procedures when TRS determines it has a legal responsibility to do so or it is in TRS’ best interest. The contract terms for this procurement consist of the provisions in this RFO (including its attachments, exhibits, and forms), the Respondent’s Offer, and TRS’ Contract or Purchase Order. The provisions of this RFO and those of any Contract and/or Purchase Order resulting from this RFO shall control, in the case of any conflict with any of the provisions in the Respondent’s Offer, except as otherwise noted on the Contract and/or Purchase Order.
10. Respondent Forms
10.1. TRS will neither sign nor agree to be bound by any of the Respondent’s form documents or agreements. Should the Respondent desire to expound on how the Respondent will satisfy the specifications, terms and conditions of this solicitation, the Respondent shall do so without reference to any form documents or agreements.
11. Waiver of Claims
11.1. By submitting an Offer, Respondent agrees to waive any claim it has or may have against TRS, TRS board members, and/or TRS employees, arising out of or in connection with the administration, evaluation, or recommendation of any Offer, the waiver of any requirements under the RFO, the acceptance or rejection of any Offer, and/or the award of a contract.
12. Disclosure of Offers Under the Public Information Act
12.1. Respondents are advised that information included in their Offer is subject to the Texas Public Information Act, Chapter 552 of the Texas Government Code (the Act). Information a third party submits to or prepares on behalf of TRS is subject to the Act and must qualify for an exception provided by the Act to be withheld from public disclosure. Information is not confidential under the Act simply because the party submitting the information anticipates or requests that it be kept confidential.
12.2. TRS cannot bring information within an exception to disclosure under the Act merely through a
contract or agreement to keep the information confidential. Accordingly, a Respondent whose Offer may include information that Respondent believes in good faith to be proprietary or commercial information and that Respondent otherwise keeps confidential for competitive reasons, is responsible for identifying and proving that such information qualifies for an exception to public disclosure under the Act. Each item of such information must be separately and conspicuously labeled “Confidential Proprietary Information” and the Respondent must state in its Offer that the labeled information would not have been provided to TRS, if Respondent knew the information would be disclosed publicly.
12.3. When Respondent marks or identifies any confidential, proprietary, or commercial information within
its Offer, Respondent shall list in a separate attachment to its Offer a listing of section reference, and page number of all such confidential information.
12.4. TRS, its trustees, officers, employees, agents, attorneys, and any trust fund managed by TRS shall
not be liable for any disclosure of any information submitted in a response to this RFO. By submitting an Offer, Respondent waives any claim against, and releases from liability, TRS, its trustees, officers, employees, agents, attorneys and/or any trust fund managed by TRS with respect to disclosure of any information included in the Offer, including information labeled as “Confidential
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Proprietary Information.” Respondent also authorizes TRS, at its sole option, to submit any information contained in the Offer, including information Respondent has labeled as being confidential and proprietary, to the Office of the Attorney General for a determination as to whether any such information submitted by Respondent may be excepted from public disclosure under the Act, either by its provisions alone or in conjunction with other law. For the purpose of asking the Office of the Attorney General to determine whether an exception to disclosure exists for information Respondent deems to be confidential and proprietary, TRS will submit to the Office of the Attorney General for its consideration only that information Respondent has specifically labeled “Confidential Proprietary Information” to the Office of the Attorney General for consideration. If TRS does not have a good faith belief that information may be subject to an exception to disclosure, TRS is not obligated to submit the information to the Office of the Attorney General. Consequently, Respondent should not expect TRS to submit to the Office of the Attorney General an entire Offer that Respondent has labeled “Confidential Proprietary Information.”
13. Offer Instructions
13.1. Receipt by TRS Respondent’s Offer shall be physically received by TRS no later than the date and time listed in the Calendar of Events (Section II., 4). Facsimiles and emails of the Offer will not be accepted.
Responses shall be mailed or delivered to: Teacher Retirement System of Texas 1000 Red River Street, Room 416E Austin, Texas 78701-2698 Attn: John Dobrich
When submitting an Offer by regular mail, certified mail, or express mail, or delivery service, it is incumbent upon Respondent to allow for sufficient time to permit delivery by the U.S. Postal Service or any other delivery service or agent and by mail services internal to TRS. THE OFFER SHALL BE RECEIVED BY TRS LOCATED AT 1000 RED RIVER STREET, AUSTIN, TEXAS BY THE REQUIRED DEADLINE. TRS’ MAILROOM TIME AND DATE STAMP WILL BE THE FINAL DETERMINANT OF WHETHER AN OFFER HAS BEEN TIMELY RECEIVED BY TRS’ PURCHASING AND CONTRACTS DEPARTMENT. OFFERS RECEIVED BY TRS AFTER THE DUE DATE AND TIME SHALL BE REJECTED. 13.2. Offer Submission and Formatting The Respondent shall format the Offer using the following rules. Replace the text between the <> symbols with the corresponding requested information:
13.2.1. Delivery and Labeling
13.2.1.1. All documents associated with Respondent’s Offer (minimum qualifications, technical, pricing, and others), and copies thereof, shall be received at TRS prior to the response deadlines listed in Section II., 4.
13.2.1.2. The Respondent shall deliver all response documents and copies in a sealed
container labeled with:
13.2.1.2.1. <Respondent’s legal name and address> - in the upper left corner of the top side of the container;
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13.2.1.2.2. <TRS Name and Address> - in the center of the top side of the
container; and
13.2.1.2.3. <RFO No. 0123136A-JD for Pension Administration Line of Business System Replacement Services, Due Date: April 12, 2013 at 2:00 p.m. CT> - in the lower left corner of the top side of the container for the Submission of Technical Offer and Preliminary Budget Estimate.
13.2.1.2.4. <RFO No. 0123136A-JD for Pension Administration Line of
Business System Replacement Services, Due Date: June 6, 2013 at 2:00 p.m. CT> - in the lower left corner of the top side of the container for the Submission of Detailed Price Responses.
13.2.2. Offer Formatting
13.2.2.1. The Respondent shall submit seven (7) printed copies of the Offer. Each copy
shall be stored in a 3-ring binder.
13.2.2.2. If supplemental materials are included with the Offer, each copy of the Offer must include such supplemental materials. All Offers and accompanying documentation become the property of TRS and will not be returned.
13.2.2.3. In addition to the seven (7) copies, the Respondent shall submit one (1) printed
copy of the Offer with the words “Master Copy” marked on the title page and on every page header. The “Master Copy” shall (1) be unbound; (2) contain no divider sheets or tabs; (3) be printed on one side only of 8-1/2 in. x 11 in. white paper to enable copying if needed; and (4) be a complete copy of all information submitted with Respondent’s Offer. Colors must reproduce in a legible manner on a black-and-white copier.
13.2.2.4. One (1) complete copy of the “Master Copy” of the Offer shall also be submitted
on electronic media (e.g., USB Drive [TRS’ preference], CD-ROM, or DVD- ROM) in a Microsoft Office (Word, Excel, Project and PowerPoint files) version 2003 or later format, or searchable Adobe .PDF files. Pertaining to the electronic version, Respondent shall submit separate electronic files containing (1) Attachment A – Execution of Offer, and (2) Confidential Information. In the event Respondent submits information with the Offer that Respondent wishes to assert a claim of protection from disclosure (e.g., Confidential, Proprietary, or any other form), Respondent shall ensure such information is included in a separate electronic file with the words “Confidential Information” included within the filename.
13.2.2.5. Every page shall contain the Respondent’s legal name in the header.
13.2.2.6. Every page footer shall contain “Page <page number> of <total pages>” and
<submission date>
13.2.2.7. A legally authorized representative of the Respondent’s company shall manually sign the printed “Master Copy” of the Offer.
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13.3. Offer Content and Organization
13.3.1. The submitted Offers shall be titled “Pension Administration Line of Business System Replacement Services” and shall clearly show the due date and time.
13.3.2. Respondent’s submitted Offer shall include all information and be organized as
required below. Offers will be evaluated based on the responses to the information below. Respondents shall provide their best response to the specifications, terms and conditions contained in this RFO. Each Respondent shall be solely responsible for its thorough understanding of the RFO, including its attachments, exhibits, and forms. In addition, each Respondent shall be solely responsible for its Offer and all documentation submitted. Respondents are cautioned to pay particular attention to the clarity and completeness of their Offer. It is TRS’ intent to receive offers that provide substantive information to address the specific areas listed below and not pre-prepared marketing materials. Respondent shall provide detailed descriptions of how they will fulfill each requirement. The clarity and completeness of the Offer may be considered by TRS’ evaluators. TRS has no responsibility to point out weaknesses in an Offer that result from a lack of diligence, competence, effectiveness, or creative solutions.
13.3.3. Respondent shall provide written responses to each of the following areas
identified in the tab sections below reproducing the original information request or question with each answer. TRS shall view responses to the following Tabs and questions as current capabilities of the Respondent’s solution. Further, TRS will assume that all features and functionality described therein will be delivered for the quoted not-to-exceed price presented in the Respondents’ pricing offered. If Respondents wish to provide information on Optional functionality that is not included in the price offered, Respondent shall explicitly state as much in every applicable case and include not-to-exceed pricing for such Optional functionality with the Offer.
TAB 1. EXECUTIVE SUMMARY Respondent shall provide a concise description of its approach to meeting TRS’ requirements for Pension Administration Line of Business System Replacement Services. This description shall not exceed ten (10) pages. Respondent shall include the highlights of Respondent’s Offer, including an overview of its plan and/or schedule. Unique characteristics of Respondent’s Offer shall be emphasized. TAB 2. MINIMUM QUALIFICATIONS In this section, Respondent shall state how Respondent and/or specified personnel meet the minimum qualifications reproducing the qualification with each answer. Failure to fully address each qualification and to document Respondent’s specific experience in meeting each qualification may be cause to disqualify the Offer. TRS has no obligation to seek any clarification or additional information. A statement that Respondent “meets the requirement” is not a sufficient response. Offers not meeting the minimum qualifications will not be reviewed or evaluated. 1. Company Qualifications
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a. Respondent’s company shall have a minimum of five (5) years of experience implementing public pension systems. Provide the names of the organizations and a contact for each including the contact’s information.
b. Respondent’s company shall have a minimum of three (3) successfully completed public pension system implementations; one (1) of which must be an entity in the United States. State the names and locations of the organizations.
c. Respondent’s company shall have a minimum of two (2) successfully completed
public pension system implementations with a membership size of two hundred thousand (200,000) or greater.
d. Respondent’s company shall have successfully implemented web-based pension
functionality, for a public pension plan in the United States, within the last three (3) years.
2. Key Personnel Qualifications
a. Respondent’s Account/Project Manager, Solutions Architect, and key Business Analysts must have 3 years of experience working on a public pension system replacement project in the proposed role. Key Business Analysts include at a minimum the lead analyst for active membership, benefits, and financials.
b. Respondent’s Development Manager and Quality Assurance Test Manager must
have 1 year of experience working on a public pension system replacement project and 3 years in the proposed role.
TAB 3. ORGANIZATIONAL BACKGROUND Respondents shall review and answer this section carefully. Omissions or non-responsive information may result in disqualification of Offer. 1. State Respondent’s full name and home office address. Describe Respondent’s
operational structure and legal form of business (e.g., corporation, partnership, sole proprietor, etc.) and where it is legally organized (e.g., Texas, Delaware, etc.). Identify the locations of the headquarters and/or branch offices that would be providing services under the contract. State how many employees are at the location(s) where contract-related services will be performed. If the office providing services is not in Texas, describe how the organization would service TRS if awarded a contract. If the Respondent is providing an offer on behalf of one or more individual entities, Respondent shall provide this information for each individual entity as well as state the relationship of the individual entities. Please limit the information requested in this section to five (5) pages.
2. Respondent shall provide a discussion of the Respondent’s unique qualifications which set them apart from other pension line of business solution companies. The Respondent shall limit the discussion to two (2) pages.
3. Respondent shall provide financial statements: income statements, balance sheets, and cash flow statements for the most recent three (3) years, if available. If not specifically stated in the previously requested documents, the Respondent shall state
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the percentage of their revenue and profits attributed only to pension system implementations where the Respondent was the prime contractor, if available.
4. The Respondent shall provide a copy of their current Comprehensive Insight Plus Report from Dunn and Bradstreet. If not available, Respondent shall explain the unavailability.
5. Describe Respondent's processes and procedures to protect both hard copy data and
electronic information from intrusion or unauthorized dissemination. 6. Describe Respondent’s implementation and documentation of a comprehensive
information-security program. Respondent shall use, implement, and document reasonable and appropriate security practices to make all data and information secure.
7. Describe Respondent’s business continuity plan for the recovery of Respondent’s
electronic data and data processing equipment and how the Respondent assures that the data processing system will be operational within ten (10) days of a natural disaster, or any other business interruption, whether natural or otherwise.
8. State whether during the last ten (10) years Respondent has been involved in or is currently in a lawsuit involving a regulatory action.
9. State whether Respondent has ever been involved in or is currently involved in a lawsuit involving any services similar to the services requested by this RFO. If so, provide details, including dates and outcomes.
10. State whether during the past five (5) years Respondent, related entities (affiliates under common ownership), principals, or officers have been a party in any civil or criminal litigation, whether or not directly related to services similar to those requested by this RFO. If so, provide details, including the name (style) of the case, the jurisdiction (court in which it was filed), dates the litigation was started and ended, and outcome.
11. State whether Respondent, its principals, officers, or directors has ever been involved in any regulatory proceeding, judicial proceeding or litigation, of any kind, with TRS. If yes, please describe.
12. State whether Respondent, its principals, officers, or directors has ever been (1) required to return public funds for failure to perform on a contract; (2) in breach of a public contract; or (3) disbarred from contracting with any (i) State of Texas agency, (ii) federal agency, (iii) political subdivision, (iv) any public pension plan, or (v) of any state or territory. If yes, please describe.
13. Provide a copy of Respondent’s Certificate of Insurance showing coverage limits. TRS’ insurance requirements are stated in Section V., 1.24. State whether Respondent will comply with the requirements as stated in the referenced section.
14. TRS is interested in insurance or other financial instruments for Security & Privacy
(Cyber) and Media Liability to cover cyber risk, data breach, and improper personal information disclosures. Describe how insurance coverage would be made available to TRS to cover these risks.
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15. Respondent shall acknowledge that all individuals assigned to provide services to TRS are subject to background checks in accordance with Section V., 1.13.
TAB 4. QUESTIONNAIRE Business Solution The following section has specific questions concerning the Respondent’s business solution.
1. Cash Receipts
As part of the TEAM Program, TRS is replacing both its financial systems and its pension LOB system. It is expected that the new Financial System will be in production before the first phase of the Pension LOB solution is implemented. Today, TRS uses functionality in its in-house financial system (GLAS) for managing and recording all cash receipts, whether they are financial related or pension related. The existing TRS process is described in detail in the Cash Receipts Additional Functionality section below. In the future, TRS will look at the Cash Receipts functionality in both the proposed LOB Solution and the Financial system to determine which is best suited to handle processing and management of cash receipts. The LOB Solution shall have, at a minimum, the functionality outlined in the Cash Receipts Commitments described in this RFO. In addition to those commitments, TRS requests Respondent to provide answers to the following questions.
1.1. In previous implementations of the Respondent’s solution, describe how the LOB
solution has integrated with financial solutions as it relates to Cash Receipts.
1.2. How did the financial system process all cash receipts and flow necessary data back to the LOB solution?
1.3. How did the LOB solution handle all cash receipts and forward the non-pension-
related receipts to the financial system for processing?
1.4. Were there multiple cash receipt processes for different types of cash receipts?
1.5. What is the Respondent’s recommendation?
1.6. If TRS wanted to use the LOB Solution for all incoming cash receipts, both LOB related and non-LOB related, describe how Respondent would implement the additional cash-receipts control functionality described in the Cash Receipts Additional Functionality section below.
2. Cash Receipts Options Pricing
1.1. Respondent shall include Optional pricing for Pension LOB integration with an
external financial system for all incoming cash receipts. Respondent shall use the format included as a separate file on the Electronic State Business Daily (Attachment N).
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1.2. Respondent shall include Optional pricing for the LOB Solution to provide the
additional functionality outlined in the Cash Receipts Additional Functionality section below. Respondent shall use the format included as a separate file on the Electronic State Business Daily (Attachment N).
Cash Receipts Additional Functionality
1 Shall provide functionality to view, add, update, delete, search, cash
receipts  2 Shall assign a unique sequential register number for each incoming cash
receipt as mail is opened in the mailroom 
3 Shall provide functionality to collect multiple cash receipts in a batch or group for delivery by the mailroom to the cashier 
4 Shall provide total number of cash receipts in each batch processed by the mailroom 
5 Shall not limit the number of cash receipts in each batch processed by the mailroom 
6 Shall provide total dollar amount of cash receipts in each batch 
7 Shall capture and track various deposit types as defined by TRS and/ or reason codes for certain actions.  
8 Shall provide the ability to create a deposit slip (based on CPA requirements) and interface transactions to USAS 
9 Shall provide the ability to create a deposit transaction with workflow and approval 
10 Shall be able to track multiple incoming checks for one (lockbox) transaction. Note: Lock box records do not contain check numbers.  
11 Shall provide the ability to require different steps of the cash receipt process to be completed by different staff members for purposes of verifying cash receipt totals and amounts (both individually and by batch). 
Technical Solution
The following section has specific questions concerning the Respondent’s technical solution.
TRS seeks an infrastructure solution that will allow TRS to meet its business and technology objectives over the next 10 to 20 years. The core of this will be the modernization solution architecture for the TEAM Program. The modernization solution is comprised of functionality components that are utilized by TRS to perform its day-to-day business. These components, when integrated, form the underlying architecture that supports all pension administration activities. This includes components such as imaging, workflow, customer contact/relationship management, pension administration,
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communications, financial/HR application, security, reporting, business rules management, etc.
The primary functional needs that must be addressed by a modernization solution adopted by TRS are:
1. The solution must support and provide efficient daily operations to process and respond to member and annuitant requests.
2. The solution must provide dynamic and functional self-service interfaces for external constituents to conduct business with TRS through the most common communications channels available and be able to incorporate new channels as needed.
3. TRS staff must have a dynamic set of role-based interfaces that allow consistent and efficient interaction with any application needed to provide service to constituents.
4. The solution shall contain well-defined data management and governance services.
5. The solution must be built to accommodate change through extensibility and loosely coupled integration.
Just as TRS is focused on providing service to its stakeholders, so must the modernization solution be service-oriented. To accomplish this, the foundational technologies used to build the modernization solution must be service-oriented and employ common methods for invoking services. These technologies must allow for technical, process or application change without significant impact to other components of the solution through loosely coupled integration and flexible extensibility processes. This is most readily accomplished by implementing a solution based on the Service Oriented Architecture (SOA) principals of software development. SOA is a set of principles and methodologies for designing and developing software in the form of interoperable modular services. These services are well-defined business functionalities that are built as stand-alone software components which can be reused for different purposes. The premise of a SOA is that modular services can be assembled into new applications, therefore leveraging application and infrastructure investments. SOA reduces complexity and rigidity of applications, promotes the integration of diverse systems, and allows applications to be dynamic, so they can be built to readily accommodate change. After a thorough review of the approaches taken by other public pension systems, pension administration framework vendors, and modern software design and development methodologies, the architectural approach shall be to build a composite application framework (See Appendix 18). This solution architecture has the least associated risk and can be delivered in the shortest timeframe. It also best meets the stated primary functionality needs by:
1. Employing pre-built and pre-tested application modules 2. Allowing for the integration of new technologies in the future 3. Allowing TRS’ resources to customize the solution as needed 4. Using experienced vendor resources to assist with customization 5. Minimizing the impact of future change
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6. Establishing a methodology for developing and integrating new applications in the future
An additional benefit of this approach is that it gives TRS the ability to deploy the new solution in phases rather than an “all at once” implementation. A phased implementation approach refers to structuring the implementation into two or more well-defined stages and selecting different implementation dates for each stage. Each implementation is limited to a controlled number of organizational units or business functional areas, so it allows for a more focused goal during each phase. This approach has the following benefits:
1. Reduces disruption to the production environment 2. Performance issues that occur can be quickly isolated and rectified 3. Allows for staggered training 4. Allows for a more iterative approach so reviews can be conducted after each
phase and lessons learned can be incorporated into subsequent phases. This further reduces risk and helps ensure the success of the TEAM Program. The Respondent that is selected to provide a Proof of Concept (POC) will be required to demonstrate its proposed technical solution by developing a working Proof of Concept that will meet TRS’ needs as defined in this RFO. 1. Deployment Options and Topology
1.1. In what operating environment and hardware platform is the Respondent’s
system most commonly deployed?
1.2. In what operating systems (Windows, Linux etc.) and run-time environments (application servers) has the Respondent’s solution been validated or certified?
1.3. What other environments does the Respondent expect to support in the next 2 –
5 years?
1.4. Describe the overall deployment topology (and options) in terms of server and server software requirements including their role or purpose in the architecture (i.e. web servers, app servers, report servers and database systems).
1.5. Include 3rd party software options and currently supported versions of each.
2. Hardware Architecture Diagrams
The Respondent should refer to the Composite Framework Architecture (See Appendix 18), which represents a recommended SOA.
1.1. Provide architecture diagrams that depict the two deployment scenarios below
including Internet facing and internal/Intranet system components. The diagram shall also include any external dependencies (other than basic network components) that are critical to the system’s operation such as load balancers, user authentication or shared file systems.
For these configurations please consider:
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1. Fault tolerance throughout each tier 2. Load balancing at the web and application tiers 3. Database sizing and deployment recommendations
a. TRS-Compatible Configuration: Using performance goals stated in Section II.,
Technical Solution, 16. Warranty, below and given TRS’ referenced infrastructure architecture (see Appendix 23), please provide a configuration (e.g., server types, server quantities, load balancing configurations etc.) that leverages TRS’ existing infrastructure to the extent possible.
TRS will estimate infrastructure costs based on the information provided above. Please provide detail sufficient for TRS to determine needed infrastructure investments.
b. Respondent Designed Configuration: Using performance goals stated in the
Section II., Technical Solution, 16. Warranty, below and Section IV., 1.7 - Warranty, provide a recommended configuration (e.g., server types, server quantities, load balancing configurations etc.), which can be deployed in TRS’ data center with no explicit requirement to adhere to TRS referenced infrastructure architecture (Appendix 23).
For the Respondent Designed Configuration, provide the initial hardware and software pricing as well as ongoing maintenance and support pricing (spanning 3 years) for the infrastructure. The Respondent shall also provide the timing of when the hardware and software will be needed. The ongoing maintenance and support pricing as well as timing shall be in the format included as a separate file on the Electronic State Business Daily (Attachment N)
1.2. What is the Respondent’s strategy (roadmap) for upgrading their product (end-of-
life strategy) and how will Respondent manage these upgrades during the course of the LOB system replacement project?
1.3. Provide Respondent’s historical perspective, based on previous clients, as to
what percentage of the hardware and software will need to be refreshed and when (during the course of the Project and on-going maintenance as well).
1.4. How do clients customize and extend the system and how are those
customizations preserved across system upgrades?
1.5. Given TRS’ performance expectations stated in the Section II., Technical Solution, 16. Warranty, below and Section IV., 1.7 - Warranty provide the recommended processor, memory and storage requirements for each of the system’s components.
1.6. Describe the disk and storage infrastructure requirements (e.g., disk speeds,
storage fabric), overall I/O architecture requirements, and any I/O performance characteristics that are critical to the system’s performance. This shall include current and projected capacity and known limitations of different storage solutions.
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1.7. What solutions has the Respondent used and what lessons have they learned from their storage decisions?
1.8. Describe any special network considerations such as non-standard protocols or
bandwidth requirements.
3. Scalability and Redundancy
1.1. Describe in detail how the system scales at each layer of the architecture. 1.2. What methods are commonly used to provide fault tolerance across web,
application, database and integration tiers?
4. Virtualization
1.1. Is the solution validated on vSphere 5?
1.2. Identify any components that would not be suitable for server virtualization and the rationale behind that recommendation.
1.3. What known limitations, if any, exist when the Respondent’s solution is running
on virtualized servers in a VMware vSphere environment?
1.4. What other environments has the Respondent used with the Respondent’s solution (e.g., z/VM)?
5. Non-Production Environments
1.1. Describe what non-production environments (e.g., Development, Test, QA) the
Respondent recommends having deployed for:
• The Project development cycles (pre-production Project activities) • The post-production lifecycles and management
1.2. What are the recommended server configurations (number and types of servers)
for those environments?
1.3. Provide pricing estimates for these environments including hardware and software pricing in the format included as a separate file on the Electronic State Business Daily (Attachment N). This shall include an itemized list of any 3rd party software or tools used in non-production environments to develop, test, monitor or support the Respondent’s solution.
6. Software Architecture
1.1. Describe the software architecture for the Respondent’s solution and include an
architecture diagram, listing the individual software components that make up the Respondent’s architecture.
1.2. Describe the logical and physical architectures, Provide architecture diagrams.
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1.3. Describe the client-side software requirements and how any client-side requirements are deployed and updated.
1.4. Which components of the Respondent’s framework are tightly coupled?
1.5. How does the Respondent’s solution implement a Service Oriented Architecture?
1.6. Describe the Respondent’s experience in using an Enterprise Service Bus (ESB)
for communications between applications. If the Respondent does not have experience implementing an ESB, how would the Respondent envision an ESB could work with the Respondent’s solution for integration?
1.7. What application development frameworks are used in the Respondent’s
solution?
1.8. What services of the Respondent’s solution are published or exposed for use by other applications? And how are these services exposed?
1.9. When Respondent integrates with third-party applications does the Respondent
write directly to their API(s)?
1.10. Please provide a list of the Respondent’s documented API(s). 1.11. Please describe how information about the Respondent’s Web services would be
exported to an external service registry.
1.12. Describe how the Respondent’s solution supports the messaging style of integration as described in the publication Enterprise Integration Patterns: Designing, Building, and Deploying Messaging Solutions (Messaging – p. 53).
7. Software Updates and Support
1.1. How frequently are updates to the Respondent’s solution available?
1.2. What is the Respondent’s current software upgrade strategy?
1.3. On previous engagements how did the Respondent handle major scope changes
(e.g., Legislative changes)?
1.4. Historically how often does the Respondent roll out patches and maintenance releases during the entire length of a project?
1.5. What type of remote support is provided for Respondent’s solution? 1.6. Describe the Respondent’s process by which TRS would access support?
1.7. What is the estimated response time to a service call?
1.8. Who is responsible for a problem whose cause is unknown?
8. Data Management and Reporting
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1.1. What databases does the Respondent recommend and what databases are supported by the Respondent’s solution?
1.2. What reporting package(s) does the Respondent use? Which is the
Respondent’s preference?
1.3. TRS is using another contractor to manage the data cleansing process. Describe how the Respondent has worked with data management contractors in the past and how the Respondent would interface with TRS’ data management contractor on this Project.
9. Usability and Interface
1.1. What type of usability design and testing has been performed for the
Respondent’s solution? Please provide an example of the results of these tests.
1.2. Provide a copy of the Respondent’s user interface guidelines.
1.3. Does the Respondent perform their own internal Web accessibility testing? If yes, describe the process and the results. If no, describe how the Respondent ensures their application is Web accessible. Does the Respondent use WCAG 2.0 or Section 508 standards for testing?
10. Integration
1.1. Describe how the Respondent’s software integrates with existing enterprise
applications. Is it service-oriented?
1.2. How does the Respondent’s solution support and interface with FileNet P8 for imaging?
1.3. Does the Respondent’s solution support Content Manager on Demand?
1.4. Has the Respondent implemented integrations with Adobe LiveCycle for
correspondence and forms management? Describe briefly how that integration works.
1.5. Describe how the Respondent’s solution interfaces with third-party financial
applications? Which applications has the Respondent integrated with?
1.6. Describe how the Respondent’s solution integrates with Microsoft Exchange for sending and receiving email?
1.7. How does the Respondent’s solution handle attachments to email?
1.8. How does the Respondent’s solution ensure that mass emails are handled
appropriately and do not become blacklisted?
1.9. How does the Respondent’s solution handle creation and sending of SMS text messages?
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1.10. TRS requires address validation. How does the Respondent’s solution handle address validation? TRS currently uses FINALIST for address validation. How would the Respondent envision integrating with FINALIST?
1.11. How does the Respondent’s solution handle attachments that are sent out and
stored when generated out of the LOB system?
11. Disaster Recovery/Business Continuity
1.1. What recommendations and considerations does the Respondent have for disaster recovery and business continuity efforts for the Respondent’s solution?
12. Telephony
1.1. Describe how the Respondent’s system integrates with telephony systems
including telephone switches (TDM and VoIP), IVR, Contact Management System, and Fax Servers.
1.2. Describe how the Respondent’s system provides screen pop and other
capabilities for inbound and outbound member interactions including telephone, callback, chat, fax, and email. Provide a listing of available API’s, web services and technologies the system uses to interface with telephony systems,
1.3. Has the Respondent’s system been integrated with the following telephony
products: Siemens Hipath 4000 telephone system, OpenScape Voice Portal IVR, OpenScape Contact Center, and Faxination Fax Server?
13. Software Development Information
1.1. Describe the components or modules in the Respondent’s software and their
dependencies. What modules are required? Which are optional?
1.2. What programming languages is the system written in? Do clients have access to its source code?
1.3. Describe the Respondent’s approach to licensing non-production environments
(e.g., Dev, Test, QA, and DR).
1.4. Describe the solution’s ability to react to, participate in and trigger external workflows.
1.5. Describe the solution’s ad hoc and batch reporting capabilities and any facilities
to extract data to various formats. How does the system integrate or interact with external reporting tools?
1.6. Describe how the Respondent’s software conforms to the open industry
standards.
1.7. Describe how the solution handles business rules, how they are expressed and how they are stored.
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1.8. Describe the error logging and error codes for the Respondent’s solution including the types of errors that are logged and how those logs are stored. Include specific error log utilities that the Respondent’s solution uses for interactive and batch use. How do developers use these error codes and utilities to troubleshoot and maintain the actual program code?
1.9. Describe how extensive the user, administration and de