Stage 4 Project Readiness and Approval

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ID. Stage 4 Project Readiness and Approval '

California Department of Technology, SIMM 19D, Revision 6/28/2017

4.4 General Information

Agency or State Entity Name: Department of Health Care Services (DHCS) Organization Code: 4260

Proposal Name: Federal Draw and Reporting (FDR)

Department of Technology Project Number: 4260-241

4.5 Submittal Information Contact Information:

Contact First Name:

Melody Contact Email:

[email protected]

Submission Date: 5/13/2019

Submission Type:

D New Submission

~ Updated Submission (Pre-Approval)

Contact Last Name:

Hayes Contact Phone Number:

(916) 373-7719

D Updated Submission (Post-Approval) D Withdraw Submission

Reason: Select ... If "Other," specify:

Sections UP-dated For U dated Submissions only, check all that a RIY) ~ 4.4 General Informat ion

~ 4.5 Submittal Information

~ 4.6 Primary Solicitation Results

~ 4.6.1 Solicitation Key Act ion Dates Variance

□ 4.6.2 Addenda

~ 4.6.3 Final Bid Respondents

~ 4.6.4 Subcontractor Informat ion

~ 4.7 Ancillary Solicitation Status

~ 4.8 Cont ract Management

~ 4.9 Organizational Readiness

~ .9.1 Project Organization Chart ~ 4.10 Project Readiness

□ 4.11 Requirements Baseline

D .11.1 Final Requirements Count

~ 4.12 Schedule

~ 4.12.1 Schedule Summary

□ 4.12.2 Reason(s) for Difference ~ 4.12.3 High Level Master Schedule and Key

Milestones

□ 4.13 Cost Baseline

□ 4.13.1 Cost Summary

□ 4.13.2 Reason(s) for Difference

□ .13.3 Budget Change Proposal (BCP) Summary

D 4.13.4 Financial Analysis Worksheets (Baseline)

D 4.14 Project Management Planning

~ 4.15 Risk Register

Summa~ of Changes:

Addressed quest ions, correct ions, and requests for clarification from CDT. Revised ancillary cont ract dates and strategy to reflect changes in approach. Pro'ect Ae_P.roval Executive Transmittal

Attachment: Include t he Project Approval Executive Transmittal as an attachment to your email subm ission.

Condition s) from Previous Stage s):

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mailto:[email protected]

Condition# 1

Condition Category Ancillary solicitations

Condition Sub-Category

Condition Within 30 days of the date of this letter (April 16, 2019), the DHCS will provide a list of all FDR procurements t hat includes the scope, planned start date and planned fi nish date fo r each.

Assessment

Agency/State Entity Response

Status

Add additional conditions as needed.

4.6 Primary Solicitation Results 4.6.1 Solicitation Key Action Dates Activity: Release of Solicitation

If "Other," specify:

Actual Start Date: 10/05/2018

Actual End Date: 10/05/2018

Actual Duration (Number of

Business Days):

1

Activity: Last day to submit written questions for clarification of solicitation for Bidder's Conference




Actual Duration (Number of Business Days):

10 business days between RFO release and last day to submit written questions for Bidder's conference

Activity: Bidder's Conference




Actual Duration (Number of

Business Days):

1

Activity: Last day to submit questions for clarification of solicitation and/or request a change to the requirements in the solicitation prior to Final Proposals



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Actual End Date: 11/01/ 2018

Actual Duration (Number of 1 Business Days):

Activity: Last day to submit Final Proposals


Actual Start Date: 11/21/ 2018

Actual End Date: 11/21/ 2018


Activity: Evaluation Period





Activity: Other

If "Other," specify: Submit intended awardee and proposed cont ract to Centers for Medicare and Medicaid Services




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Activity: Contract Execution

If "Other," specify: Includes time for fina l proposed staffing confirmation and cont ract execut ion steps.

Actual Start Date: 5/01/2019* Estimated

Actual End Date:


6/10/2019* Estimated

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Add additional key action date activities as needed.

4.6.2 Addenda Addenda Number: 1

Addenda Category: Modifications to administrative requirements

If "Other," specify: Clarified instructions in response to bidder questions

Add additional addenda as needed.

4.6.3 Final Bid Respondents Respondent Name: Deloitte Consulting

Compliant: Yes

Non-compliance Category: Select...


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Add additional non-compliance categories as needed.

Negotiations Conducted: No

Intent to Award: Yes

Protest : No

Protest Disposition: Select...

Contract Number: 18-95142

Contract Start Date: 6/17/2019

Contract End Date: 6/17/2021

Total Contract Cost (without Optional Years):

$20,000,000

Optional Years:

Option Years (Number of Months):

12

Total Cost of Optional Years:

$10,000,000

Total Contract Cost (with Optional Years):

$30,000,000

Respondent Name: DXC Technology

Compliant: No

Non-compliance Category: Bidder or key staff did not meet the minimum qualification

Non-compliance Category: Reference score did not meet t he minimum threshold or reference scored the bidder as "non-satisfactory"

Add additional non-compliance catego ries as needed.


Intent to Award: No

Protest : No

Protest Disposition:

Contract Number: none

Contract Start Date:

Contract End Date:


Optional Years:



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Respondent Name: FEI Systems

Compliant: No




Intent to Award: No

Protest : No




Contract End Date:


Optional Years:




Respondent Name: OnCore Consulting

Compliant: Yes

Non-compliance Category: Other




Intent to Award: No

Protest : No




Contract End Date:

Total Contract Cost (without

Optional Years):

Optional Years:

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Respondent Name: HHS Technology

Compliant: No


Non-compliance Category: Reference score did not meet t he minimum threshold or reference scored t he bidder as "non-satisfactory"



Intent to Award: No

Protest: No




Contract End Date:


Optional Years:




Respondent Name: CivicActions

Compliant: No




Intent to Award: No

Protest: No


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Contract End Date:


Optional Years:




Respondent Name: VIP Consulting

Compliant: No


Non-compliance Category: Non-compliant to administrative requirement(s)



Intent to Award: No

Protest : No




Contract End Date:


Optional Years:




Respondent Name: Cambria Solutions

Compliant: No


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Intent to Award: No

Protest: No




Contract End Date:


Optional Years:


Total Cost of Optional

Years:


Add additional respondents as needed.

4.6.4 Subcontractor Information Complete the subcontractor information o nly for the subcontractors of t he intended awardee. Subcontractor Name SB DVBE N/ A xFusion Technologies ~ □ □ FullStack Labs ~ □ □ Add additional subcontractor as needed.

4.7 Ancillary Solicitation Status Please refer to the attached "Federal Draw and Reporting Product Development Team Staffing Plan" for additional information related to the general service categories anticipated for each ancillary solicitation, and the mitigation approaches planned in the event of delays to respective contractor onboarding. Solicitation Title: Digital Support Services (DSS)

Status: In Progress

Awardee Name: TBD





$7,300,000

Optional Years:

Optional Years (Number of Months):

12


$3,650,000

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Total Contract Cost (with $10,950,000. Optional Years):

Solicitation Title: Project Approval Lifecycle support and Independent Project Oversight

Status: Completed

Awardee Name: Ca li fornia Department of Technology (CDT) via lnteragency Agreement

Contract Number: n/a




$882,000

Optional Years: N/A


N/A


N/A


$882,000

Solicitation Title: Independent Validation & Verification (IV&V)

Status: In Progress

Awardee Name: TBD


Contract Start Date: 6/10/2019 Al igning with planned start of engineering/ development contract.

Contract End Date: 6/09/2021 Aligning with planned end of engineering/ development contract.

Total Contract Cost (without $495,000 Optional Years):

Optional Years: 1


12


$247,000


$742,000

Solicitation Title: Certification Lifecycle IV&V

Status: Completed

Awardee Name: Public Consulting Group, Inc.

Contract Number: 75332504




$1,500,000 for 5 DHCS projects; $300,000 expected share for FDR

Optional Years: 1

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Optional Years (Number of 12 Months):


$1,500,000 for 5 DHCS projects; $300,000 expected share for FDR


$3,000,000 for 5 DHCS projects

Certification Support Services (CMSS) -This solicitation is no longer specifically Solicitation Title: needed for the FDR initiative. It is listed here for consistency with the prior PAL

document only.

Status: Wit hdrawn

Awardee Name: n/a

Contract Number:


Contract End Date:


Cl ick here to enter text.

Optional Years:




Project Management Support Services (PMSS) - This solicitation is no longer Solicitation Title: specifically needed for the FDR initiative. It is listed here for consistency with the prior

PAL document only.

Status: Select ...

Awardee Name:

Contract Number:


Contract End Date:


Optional Years:



Total Contract Cost (with ODtional Years)~: _______.

Add additional ancillary solicitation statuses as needed.

4.8 Contract Management Contract management processes for the CA-MMIS Division's technology initiatives are coordinated among the duly authorized business units. The answers below

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reflect the combined efforts of the parties involved. Details about the FDR project's intended practices are provided in the Digital Services Management Plan for FDR. Com(!lete the guestions below in reference to the (!rima solicitation. Yes No l. Has the role of Contract Manager been assigned and has the Contract Manager reviewed and

gained an understanding of the scope, activities, tasks and deliverables of the contract? If "No," briefly explain below why this has not been accomplished:

□

2. Does the assigned Contract Manager understand the processes for post award contract activities, including contract amendments, contract work authorizations, terms and conditions, and contract escalation/resolution? If "No," briefly explain below why this has not been accomplished :

□

3. Has a post-award or kickoff meeting between the Contract Manager and state project team members been scheduled to align state and contractor expectations related to contract, budget, invoicing, requirements review, and contractor incentives? If "No," briefly explain below why this has not been accomplished :

□

Pending contract approval. Expect post-award contract management meeting to be scheduled within 10 days of contract signing and prior to vendor onboarding.

4. Does the Contract Manager understand the Agency/state entity and federal processes, policy, and applicable procedures? If "No," briefly explain below why this has not been accomplished :

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5. Does the Contract Manager have a plan to collect and assess contractor and project performance information on a regular basis (e.g., establish meetings with Project Managers, communication techniques)? If "No," briefly explain below why this has not been accomplished :

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Refer to Digital Services Management Plan for approaches and roles related to contractor and project performance management. The Product Manager and CVMB Contract Administration Manager have complementary roles related to contractor performance.

4.9 Organizational Readiness

l. Does the Agency/state entity currently have a mature release management process with a repeatable and scalable testing methodology that supports all stages of testing (system, integration, security, performance, interfaces, regression, user acceptance, and accessibility)? If "No," briefly describe below the release management process that will be used to manage, plan, schedule, and control a software build through the different phases and environments, includ ing testing and deploying software releases: Please refer to the Digital Services Management Plan for FDR and the CA-MM IS Division Technology Modernization Plan for complete details on processes related to FDR Release

Management.

Yes No

□

2. Does the project team have a clear understanding of the lines of business that will be impacted by the project? If "No," briefly explain below how the Agency/state entity plans to educate the project team to ensure all members have a clear understanding of the goals that the project intends to achieve:

□

Refer to the Digital Services Management Plan for general approaches to readiness, and the separate Organizational Change Management Toolkit for additional information about organizational readiness for the impacted lines of

business. 3. Does the Agency/state entity have processes and methodologies in place to support

organizational change management (DCM) activities identified in Stage 1, Section 1.12.4 Training and Organizational Change Management? If "No," briefly describe below how the Agency/state entity will perform OCM activities for this proposal:

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Refer to Implementation Toolkit, CA-MMIS Organizational Change Management template, and standard OCM user stories for clarification and details.

4. Does t he Agency/state e nt ity have dedicated resources assigned to business process improvement or business process reengineering activities? If "Yes," specify t he a reas of business process improvement needed below:

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Dedicated business analysts and financial subject matter experts have been working on designing to-be business processes and workflows in advance of developing FDR functionality. Planning and workflow design efforts also included

DHCS Enterprise Architecture Office and the Office of HIPAA Compliance MITA State Self-Assessment plans. If "No," briefly explain below how t he Agency/stat e entity will perform business process improvement o r business process reengineering activities fo r t his proposal:

4.9.1 Project Organization Chart

@ FDR Team org chart

v10.0.pdf Attachment:

4.10 Project Readiness 1. Select t he system development met hodology you plan to use to design and develop t he new system:

~ Agile/Iterat ive D Wat erfall D Other

If "Other," specify t he methodology a nd provide a brief description below:

Describe below t he Agency/state entity's past project experience using the system development methodology identified. If t his methodology has never been used before, describe t he training and staff development t hat wi ll be provided to pre pare staff to leverage t his met hodology.

For the past five years, DHCS and its CA-MM IS Division have been learn ing and advancing their experience about the benefits iterative development and delivery approaches offer. DHCS gained valuable insights from previous waterfall project efforts that included lengthy requirements analysis and documentation without delivering system functional ity to end users. In seeking better alternatives, DHCS sought expert counsel from the United States Digital Service, the U.S. Genera l Services Administration 18F section, California Department of Technology, and other digital services project leaders. Based on the leading practices and lessons learned by predecessors, DHCS chose to adopt an iterative and incremental development approach for modernizing its systems.

Project leaders and teams within the CA-MM IS Division took formalized agile training, attained professiona l certificat ions, hired certified agile coaches, and executed agile practices for two years in preparation to undertake modernization init iatives using agile methods. In support of these efforts, the CA-MMIS Division actively sought projects that were candidates for an iterative approach (e.g., Healthcare Common Procedure Coding System (HCPCS) Annua l Updates , CA-MM IS Project management Framework development, Service Management Framework development, FDR Project Approva l Lifecycle planning). These projects, coupled with formal training and orientation sessions, have prepared the CA-MMIS Division to leverage an iterative approach.

Key staff members of the FDR Product Development Team have participated in training classes to prepare them for their roles, including the Certified Scrum Master (CSM) and Certified Scrum Product Owner (CSPO) courses. In addit ion, as documented in the DSMP for FDR, a Scrum Coach has been designated to:

o Develop and deliver training courses for all participant levels from senior leadership to team members and coach them on values, principles, roles, processes, and practices

o Provide support during Scrum adoption to understand fears, cha llenges, and resistance, and provide the appropriate support to help the organ ization succeed

o Provide Product Manager, Product Owner, and Scrum Master Orientation. A mult i-hour Scrum workshop primarily focused on FDR's specific appl ication of Scrum tailored for the Product Manager, Product Owner, and Scrum Master

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o Provide Delivery Team Member Orientation. A multi-hour Scrum workshop primarily focused on FDR's specific application of Scrum tai lored for the Del ivery Team

2. Has the Agency/state ent ity received approval of t he Evaluation and Selection Report?

Yes No N/A

D D

3. Has the Agency/state ent ity engaged t he Office of Technology Services (OTech) for capacity planning a nd t he development of the so lution delivery timeline? If "No" and data center capacity planning a nd a lignment services a re needed a nd the Agency/state ent ity has not e ngaged OTech, explain below:

D D

4. Have resource commitments been obtained fo r all staff resources identified in Stage 3, Section 3.19 Staffing Allocation? If "No," explain below why commitments have not been obtained and t he plan to mitigate t his risk:

□

Stage 3, Section 3.19 Staffing Allocation referred to Stage 2, Section 2.11.3 Procurement and Staffing Strategy. The referenced section included state staff needs and several ancillary contracts that DHCS anticipated would be involved in the initiative. As described in Section 4.7 above, not all of the ancillary contractors have been procured. DHCS has prepared mitigation and contingency plans to offset the delays in bringing on supporting contractors.

5. Does t he project staffing plan ensure sufficient staff resources are available to perform project activit ies while a lso supporting maintenance and ongoing operations for other Agency/state entity initiatives? If "No," explain below how sufficient resource levels will be maintained for all project activities:

□

The DHCS Financial Management Branch has assigned dedicated staff members to the FDR project for its planned

duration. The project team does not anticipate needing a material amount of time from resources who are supporting existing CA-MMIS maintenance and operations activities. If coordination with managers and staff members in other business units is necessary, the time commitments should not exceed expectations for typical support through the normal course of business.

6. Have all ident ified project leads received forma l project management t raining? If "No," explain below how the Agency/state entity will educate t he project team leads on project management basics:

□

7. If California Department of Technology oversight services are required, has a Service Request (SR) for oversight services been submitted? If "Yes," provide the SR number below; if "No," provide a brief explanation below:

#2295498 initiated August 2018

D D

8. Has the project begun procurement activit ies for Independent Verification and Validation (IV&V) services per t he State Administrative Manual Section 4940.3? If "Yes," indicate the planned start date fo r IV&V services below: 6/ 17/ 2019 If "No" or "N/A," provide a brief explanation below: Target start date to align with planned start of engineering / development contract.

□ D

4.11 Requirements Baseline

1. Has the Agency/state ent ity modified any mid-level or detailed solution requirements since obtaining approval of the Stage 3 Solution Development?

Yes No N/A

□If "Yes" : Percentage of Change

• Enter the percentage of change in the space provided. 0%

• Describe below the modification(s), impact(s) to the recommended a lternative, and how t he requirements align with t he business objectives established in t he Stage 1 Business Analysis:

The State's Executive Sponsor, Product Owner, and business Subject Matter Experts have continued to develop

and refine feature user stories to describe the required system functions. Although the user stories have evolved over time, the mid-level solution requirements (i.e., themes and epics) have not changed from the time the Stage 3 document was submitted and reviewed.

2. Has the requirements t raceability been updated to accurately reflect any modification(s)? D D

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4.11.1 Final Re uirements Count Total Functional Requirements: 387 user stories Total Non-Functional Requirements: 0 Total Project/Transit ion Requirements: 36 OCM user stories Requirements Grand Total 423 user stories

4.12 Schedule 4.12.1 Schedule Summary

Estimated Date

Final Baseline

Date Difference

Project Pla nning Start Date 9/01/2017 9/01/2017 0

Project Pla nning End Date 2/28/2019 5/31/2019 92 days

Project Sta rt Date 3/01/2019 6/10/2019 101 days

Project End Date 2/28/2021 6/09/2021 101 days

4.12.2 Reason(s) for Difference Planning a nd approval efforts lasted longer than DHCS anticipated when developing t he Stage 2 milestone schedule.

4.12.3 High Level Master Schedule and Key Milestones Attachment: Include the high level master schedule and key milestones as an attachment to your email submission.

@ FDR Milestones

052019.pdf

4.13 Cost Baseline 4.13.1 Cost Summary

Total Planning Cost (One-Time)

Estimated ProP,gsed Cost

$389,363 Final Baseline Cost

$ 2,659,653 Difference

- $2,270,290

Total Project Cost (One-Time) $34,615,588 $32,954,837 $1,660,751

Total Future Operations IT Staff and OE&E Cost (Continuing)

$4,861,476 $4,762,005 $99,471

TOTAL: $39,866,427 $40,376,495 - $510,068

Annual Future Operations IT Costs (M&O)

$4,861,476 $4,762,005

$99,471

4.13.2 Reason(s) for Difference The Final Baseline Cost remains unchanged from the Estimated Proposed Cost submitted during Stage 2. The primary cont ract was structured with a Not-to-Exceed amount equal to t hat DHCS originally planned for sohware engineering services. The a ncillary contract amounts a nd proposed staffing levels remain unchanged at this time.

Project planning a nd justification efforts became substant ially more involved t han a nt icipated. The time spent, staff hours committed, a nd costs incurred to complete project planning a nd approval activities resulted in higher fi nal Planning Costs. The project team reduced its budget for development a nd project delivery to offset the increased planning expenses incurred.

The funds approved subsequent to t he 2018-19 Budget Change Proposal (BCP) were less than the total proposed project cost, largely due to t hree contributing factors:

1. Existing staff positions that were redirected to support the FDR init iative a re listed in the FAWs but not the BCP 2. Two new positions needed for FDR are reflected in t he FAWs but were not originally approved in the 2018-19 BCP 3. The pro rata shares of overarching ancillary contracts is accounted for in the FDR FAWs but are not listed in the BCP as

specific FDR cost items

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4.13.3 Budget Change Proposal (BCP) Summary Budget Request ID

Budget Request Year

Requested Amount

Status

-Budget Request ID

-Budget Request Year

-Requested Amount

Status

-Budget Request ID

-Budget Request Year

-Requested Amount

Status

Add additional BCP summaries as needed.

4.13.4 Financial Analysis Worksheets Baseline) Attachment: Include the FAWs as a n attachment to your email submission. Financial Analysis Worksheets (dated 5/13/2019, reflecting 2/9/2019 figu res) provided in submittal package.

14.14 Project Management Planning Recognizing that the FDR init iative will use an agile/iterative approach for the system design, deve lopment and ongoing support, DHCS has documented a Digital Services Management Plan (DSMP) for FDR. This will serve as an overarching management plan that describes the approach the FDR team will use to organize and deliver business and system changes in an iterative/ adaptive environment. The DSMP for FDR is intended to educate the Department, the Vendor, and interested stakeholders on the FDR project 's application of Scrum and to leve l set expectations regarding their roles and responsibilities.

The DSMP is not intended to be a standalone or procedural document; in some instances, the DSMP points to other strategic, business, funct ional, or technical plans and/ or artifacts for additional information, such as the Project Management Plans, the Technology Modernization Plan, the Service Management Framework, and other supporting documents. These are explicitly referenced throughout the DSMP. DHCS supports the FDR Project from an enterprise-leve l (program and technology). The Department recognizes that there are some enterprise-leve l artifact s that require updates that are outside of the FDR Project and these updates are intended to occur over the next severa l months.

The DSMP is a living document that is intended to evo lve beyond the FDR project . DHCS expects the DSMP will be the basis of a standardized set of digital service delivery methods that continue to mature as DHCS undertakes addit ional modernization init iatives .

Are t he followi ng project management plans o r project artifacts complete, approved by t he designated Agency/state ent ity authority, a nd available for California Department of Technology review?

Risk Register

If "No," provide t he status below; if "N/A," provide an explanation below:

Yes No NLA

□ □

Contract Management Plan

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Cost Management Plan


D □

Please see t he DSMP "Cost Management" section and t he CA-MMIS Division's Project Cost Management Plan

Implementation Management Plan


Please see t he DSMP "Implementation Management" and "Delivery into Production" sections

□ □

Requirements Management Plan


Please see the DSMP "Requirements Management" section

□ □

Deliverable Expectation Document (OED)


Please see the DSMP "Deliverables Management Plan" section

□ □

4.15 Risk Register

@ FDR Risk Register

05102019.pdfAttachment: Include t he risk register as an attachment to your email submission.

Stage 4 Project Readiness and Approval - Department of Technology Use Only

Original "New Submission" Date 3/29/2019

Form Received Date 7/02/2019

Form Accepted Date 7/02/2019

Form Status Completed

Form Status Date 7/02/2019

Form Disposition Approved


Form Disposition Date 6/18/2019

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Stage 4 Project Readiness and Approval

Documents

Transcript of Stage 4 Project Readiness and Approval