Iowa Unemployment Claim - DOC by zzi18679

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                                         RFP Concept Paper # 118

                             Presented to Technology Governance Board (TGB)
                                    Date Prepared: November 10, 2009

Name of document to be reviewed:
Automation of integrity related systems – automation to combat identity theft and organized UI fraud

(Please check one item listed in the following two sections)

Document for review and approval:

       __ Request for Proposal (RFP)                          __ Sole Source Procurement
       __ Request for Service (RFS)                           __ Statement of Work
       __ Request for Quote (RFQ)                             X Staff Augmentation
       __ Invitation to Qualify                               __ Master Agreement Purchase

Document for review only:

       __ Master Agreement                                    __ Request for Information (RFI)

Agency:
Iowa Workforce Development

Projected cost over $50,000?           Yes X _                   No ___
Projected agency staff hours over 750? Yes ___                   No _X_

Project Cost, Funds and Funding Source:

       Cost is dependent on ITQ responses – IWD has been awarded up to $200,000 by the Department of
       Labor to provide resources for this project

       This request is for 2 application developers and systems analyst

   Please list the internal and external resources/costs for the purchase:

       Internal Resources/Costs:

       External Resources/Costs:

       Implementation would begin as soon as possible after a Letter of Award is received by Iowa from
       the DOL which was received in October of 2009. Automation will be involved so funds will be
       obligated by September 30, 2011 and liquidated within 90 days of that date.

Timelines:
       Estimated timeline for staff augmentation contract December, 2009 – December, 2011


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Goal:
        Acquire / develop / implement software to combat identity theft and organized UI fraud. Incoming
        communication tracking software is needed to enhance Iowa’s proactive stance on preventing
        improper benefit payments. Early detection prevents unnecessary overpayments. Historically,
        overpayments that are the result of identity theft and/or organized fraud are the most difficult to
        collect once the OP’s are discovered. Call tracking software would be utilized to identify multiple
        calls coming from the same phone number into our IVR system to file claims or to file weekly
        certifications on existing, established claims. Internet Protocol (IP) address tracking would be
        utilized to identify multiple unemployment claim filings, accessing or submitting weekly
        certifications over our internet applications.

        There will be no state staff utilized for this project. All staffing needs would be contract staff.

This position requires:

        Ability to work with business and project representatives to determine report requirements and
        formats
        Ability to respond to business questions
        Excellent communication skills to communicate with business and project representatives
        Ability to publish to web pages,
        Generate reports using multiple tables,
        Implement pull down functions and generate charts
        JAVA/J2EE development experience
        Oracle DB experience
        Experience mentoring an application development team
        Excellent communication skills to communicate to developers and business unit questions

Background:
        Iowa runs a weekly match against the records contained in the NDNH. Once each week (last
        working day of the week) the last seven weeks of paid claims are sent for matching with the
        NDNH records. BAM cases are also included each week for the match. All “hits” are
        independently verified prior to notification and request for information being sent to the individual
        claimant.

Expected Results:
        Iowa’s interactive voice response (IVR) system for unemployment claims has the potential to
        “capture” the phone number of all incoming calls to the IVR. Programming needs to be
        completed that would capture all incoming numbers and link the phone number to the
        unemployment claim file that was accessed during that call. Our IVR system allows claimants to
        file an additional claim if a current benefit year claim is in effect, or a re-open to an existing claim,
        or to file the weekly certification for payment. A repository would need to be built to store this
        information for querying and alert generation as well as some basic ad-hoc reporting. Alerts
        would be generated whenever more than one unemployment claim was accessed from the same
        incoming phone line. The ability to “flag” a phone number to keep it off the Alert or exception
        report would be programmed in once the number has been “cleared” (example: 3 family members
        all work for John Deere who has several planned plant shut downs during the year, and all call
        from the same phone number).
        Our web based claim filing and weekly certification filing system is in much the same situation as
        the IVR. The web based application recognizes the incoming IP address but does not capture it,

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      or link it to the claim being accessed. The web application allows for filing of a new benefit year
      claim as well as additionals, re-opens and weekly certifications. Programming needs to be
      completed that would link the incoming IP address to the claim file that is being accessed, and a
      repository built to accommodate storage of this information for alert generation and some basic
      ad-hoc reporting. The ability to “flag” an IP address to keep it off the exception report only would
      be one capability of the system once that IP address has been cleared of any improper activity.
      Iowa currently does not have the ability to monitor this activity and has no way to identify or
      question why more than one unemployment claim would be accessed from a single computer or
      phone. Detection of fraudulent claim filings at the earliest possible stage in the process is the key
      to keeping these types of uncollectible overpayments from occurring. There is no way to know for
      sure how many of these types of claims are actually filed and paid since there has been no
      acceptable method of detection in place since we went away from in-person claim filing.

   What are the tangible and intangible benefits of this purchase for this agency and/or state
   government?

      There will be an obvious deterrent factor inherent in this type of tracking software. Individuals
      and groups who practice this type of fraudulent activity quickly learn which states and which
      agencies are easy targets for theft. Quantification of the expected results is difficult. It would be
      irresponsible to assume that there is no organized UI fraud occurring in Iowa just because we
      have been unable to detect it in the past. Employers, citizens and state government leaders all
      expect Iowa Workforce Development to be as diligent as possible in maintaining the integrity of
      the unemployment insurance system. Iowa establishes approximately 4 million dollars in
      fraudulent overpayments per year. Going “live” for the first time with this type of detection
      mechanism we could potentially increase the fraudulent overpayments detected by 4-5% or
      $160,000 to $200,000. Once this mechanism has been in place for a period of time we would
      hopefully catch all types of these schemes at or near their inception keeping the dollar amounts of
      any subsequent OP low, further protecting the pool fund.

   Can these benefits be quantified in financial terms? If yes, please explain. Yes

   How will you be more effective as a result of this purchase? See above

   How will service to your customers be enhanced as a result of this purchase? See above

Project Funds:
      100% Federal Funding

Some of the Interested Parties:
      The interested parties include all Divisions within Iowa Workforce Development, other State Agencies. .

Some of the Recipients of this Service:
      All Divisions within Iowa Workforce Development and other State Agencies that have or do business with
      Iowa’s 70,000+ employers

Standards:
      Compliant with Applicable State and Federal Standards



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Architecture:
      Java
      Web Development and PHP
      Oracle Forms and Reports with Oracle database
      Business Objects and Crystal Reports

Recommendations from DAS staff and CIO Council members:

   From 6 of 11 JCIO members:

      a) Is there duplication within Government? No.
      b) Can an existing program be modified to address a new need? No.
      c) Do you have any similar program in existence? No.
      d) Have you sought RFP’s for similar programs in the past? No.
      e) Do you have RFP’s for similar programs? No.
      f) Do you have an RFP that could be used as a starting point for this program? No.
      g) Is there anything you could provide that could assist the agency with this RFP? No.
      h) Are there alternatives available to the agencies? No.
   Recommendation of the JCIO to the TGB:
      Authorize this RFP (or Sole Source Procurement) to be released for bid Yes _X_ No ___
      Alternatives suggested by the JCIO (see additional comments below)     Yes ___ No _X_

      Additional comments: None.


   Recommendation of the IT RFP Advisory Group to the TGB:
      Authorize this RFP (or Sole Source Procurement) to be released for bid Yes _X_ No ___
      Alternatives suggested by the advisory group (see comments below)      Yes ___ No _X_

      Additional comments from advisory group members: None.




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