Docstoc

Proposal for Peoplesoft Project - PDF

Document Sample
Proposal for Peoplesoft Project - PDF Powered By Docstoc
					Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




                           State of Delaware
                           Department of Finance




             PeopleSoft Financials Implementation Project

                       Request for Proposal




Issue date: February 13, 2006


Response due: April 7, 2006




                                                                                I
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

Table of Contents:

     1. Executive Summary                                                       1
          1.1 Introduction                                                      1
          1.2 Document Structure                                                1
          1.3 Project Overview                                                  2
          1.4 Technical and Management Requirements                             3
          1.5 Pricing                                                           5
          1.6 RFP Schedule                                                      6

     2. Project Overview                                                         7
         2.1 Project Vision                                                      7
         2.2 Project Objective                                                   7
         2.3 Background                                                          9
             2.3.1 Enterprise Resource Planning (ERP) in Delaware                9
             2.3.2 Financial Reengineering Project Overview                     10
             2.3.3 PeopleSoft Financials – July 2004 to December 2005           10
             2.3.4 Reengineering Phase Products                                 13
             2.3.5 PeopleSoft Financials – January 2006 to July 2006            14
             2.3.6 DFMS Transaction Crosswalk                                   15
         2.4 State Organization                                                 16
             2.4.1 State Government: Basic Characteristics                      16
             2.4.2 State Financial Management                                   16
             2.4.3 State Organizational Characteristics                         18
         2.5 Technical Environment                                              19

     3. Technical Requirements                                                  22
         3.1 Design Principles                                                  22
         3.2 Customizations and Modifications                                   23
             3.2.1 Module Requirements                                          25
                   3.2.1.1 Accounts Payable                                     28
                   3.2.1.2 Asset Management                                     31
                   3.2.1.3 Billing and Accounts Receivable                      34
                   3.2.1.4 Cash Management                                      37
                   3.2.1.5 Commitment Control                                   42
                   3.2.1.6 Contracts                                            46
                   3.2.1.7 Expenses                                             48
                   3.2.1.8 General Ledger                                       49
                   3.2.1.9 Grants                                               52
                   3.2.1.10 Project Costing                                     56
                   3.2.1.11 Purchasing                                          60
                   3.2.1.12 Vendors                                             65
             3.2.2 PHRST Integration                                            67
             3.2.3 Interfaces                                                   72
             3.2.4 Data Conversion                                              74
             3.2.5 Reporting                                                    80

     4. Management Requirements                                                 82
         4.1 Management Topics                                                  82
             4.1.1 Project Approach                                             82
             4.1.2 Project Staffing and Qualifications                          84
             4.1.3 Business Process Reengineering and Workflow Design           86
             4.1.4 Issues and Risk Management                                   89



                                                                                     II
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

             4.1.5 Change Management                                             91
             4.1.6 Communications Plan                                           93
             4.1.7 Training                                                      95
             4.1.8 Knowledge Transfer                                            98
             4.1.9 Quality Assurance                                            100
             4.1.10 System, Database and Security Administration                101
             4.1.11 Help Desk                                                   102
             4.1.12 Collaboration and Productivity Tools                        104
         4.2 Technical Topics                                                   106
             4.2.1 Technical Environment (Hosting Issues)                       106
             4.2.2 PeopleSoft Financials Configuration                          108
             4.2.3 Design Specification (Modifications/Customizations)          110
             4.2.4 PHRST Integration                                            111
             4.2.5 Data Conversion                                              113
             4.2.6 Interface Development                                        115
             4.2.7 Reporting                                                    117
             4.2.8 Security                                                     119
             4.2.9 System Build, Unit and Integration Testing                   121
             4.2.10 Change Control (Scope & Schedule)                           122
             4.2.11 Testing                                                     124
             4.2.12 System Rollout                                              126
             4.2.13 Post Implementation Support                                 127
         4.3 Project Phases                                                     128

     5. RFP Administrative Information                                          129
         5.1 RFP Issuance                                                       129
         5.2 RFP Submissions                                                    131
         5.3 RFP Evaluation Process                                             137
         5.4 RFP Contract Terms and Conditions                                  142
         5.5 RFP Miscellaneous Information                                      152

     6. Vendor Technical Response                                               153
         6.1 Pre-Proposal Requirements                                          153
             6.1.1 Registration                                                 153
             6.1.2 Vendor Conference                                            153
             6.1.3 Intent to Bid                                                154
         6.2 Proposal Contents Requirements                                     155
             6.2.1 Technical Proposal Vendor Response Section                   155
         6.3 Post-Proposal Requirements                                         174
             6.3.1 Vendor Oral Presentations                                    174

     7. Vendor Cost Response                                                    175
         7.1 Introduction                                                       175
             7.1.1 Cost Proposal – Core Not to Exceed Cost                      176
             7.1.2 Security Costs                                               178
             7.1.3 Costs of Alternatives                                        179
             7.1.4 Future Vendor Rates                                          181
             7.1.5 Staff Loading                                                181
             7.1.6 Payment Schedule by Deliverable                              182
             7.1.7 Other (As Needed)                                            183
             7.1.8 Attachments and Assumptions                                  183




                                                                                      III
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



1. Executive Summary

   1.1. Introduction
       The State of Delaware (State) is seeking proposals from qualified Vendors to supply the
       professional services necessary to configure and implement a fully functional PeopleSoft
       Financials application, version 8.9 or later. Potential respondents will provide software
       implementation services to the State of Delaware PeopleSoft Financials Implementation
       Project. This document provides potential respondents with the information and
       guidelines necessary for developing their proposals.

   1.2. Document Structure
       This Request for Proposal (RFP) describes the overall scope of services desired,
       procurement terms and conditions, and the format for proposal submission by an
       implementation Vendor. “Vendor” means the organization which submits a proposal in
       response to this RFP.

       The RFP is organized into the following sections:

       Section 1 – Executive Summary: This section provides a high-level overview of the RFP
                   and the expectations of the State.

       Section 2 – Project Overview: This section provides background information about the
                   Delaware PeopleSoft Financials Implementation Project, the State of
                   Delaware as an organization and the technical environment in which this
                   system will be developed and deployed. This section further provides details
                   on the work completed to date by the State in preparation for system
                   implementation.

       Section 3 – Technical Requirements: This section describes the State’s expectations for
                   the scope of services to be provided by the implementation Vendor. It
                   describes the project goals, objectives and specifications for the implemented
                   system.

       Section 4 – Management Requirements: This section provides the framework for the
                   management services to be provided by the Vendor to address the technical
                   requirements and describes what is to be included in the Vendor’s response.

       Section 5 – Administrative Information: This section provides procurement guidelines
                   and contractual information related to the execution of this project.

       Section 6 – Vendor Technical Response: This section provides information on the form
                   and format of the Vendor response, information on the procurement schedule
                   and logistical information related to proposal submission.

       Section 7 – Vendor Cost Response: This section provides the framework for the Vendor
                   response for proposed cost information.

       Appendix – Contains the relevant attachments.
                     •      Appendix 1 – Reengineering Phase Products Summaries



Executive Summary                                                                                1
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                        •     Appendix 2 – PHRST Integration Analysis
                        •     Appendix 2a – EIP Scorecard
                        •     Appendix 3 – Communication Plan
                        •     Appendix 4 – DFMS and BACIS Transaction Crosswalks
                        •     Appendix 5 – Project Charter
                        •     Appendix 6 – Functional Scope Matrix
                        •     Appendix 7 – Interfaces
                        •     Appendix 8 – Current Reporting Types
                        •     Appendix 9 – Ad Hoc Reporting Requirements
                        •     Appendix 10 – Training Plan
                        •     Appendix 11 – Instructional Design Methodology
                        •     Appendix 12 – Configuration Documentation Sample
                        •     Appendix 12a – State Departments
                        •     Appendix 13 – Directions to the Vendor Conference
                        •     Appendix 14 – Vendor Technical Proposal Response Tables
                        •     Appendix 15 – Cost Proposal Cost Tables
                        •     Appendix 16 – Glossary of Terms

    1.3. Project Overview
        The State of Delaware is replacing its financial management and reporting systems with
        the PeopleSoft Financials application. Today, there is a collection of systems utilized
        throughout the State’s agencies and organization to conduct the State’s financial business.
        All of these systems are old, error prone, fragmented and based on out-dated business
        practices.

        Through the PeopleSoft Financials Reengineering Project (July 2004 – Present), the State
        has identified the requirements to move forward with the replacement of these systems.
        Reengineering will continue throughout the life of the project. The reengineering will
        affect multiple governmental organizations and some major restructuring of the State’s
        business practices will need to occur.

        In July 2004, the State took the first steps toward implementing PeopleSoft Financials.
        Several case studies pointed out that success in implementing an Enterprise Resource
        Planning (ERP) system can be related to how much an organization optimizes its
        business processes to take advantage of the full capabilities found in an ERP system.
        Recognizing this crucial first step, the State committed to taking the time necessary to
        evaluate its business processes and re-engineer those areas which were inconsistent with
        PeopleSoft Financials delivered functionality.

        Since July 2004, the State has evaluated and redesigned its business processes,
        documented and resolved numerous module and policy issues, spent nearly 16 months
        actively working in a “sandbox” environment prototyping different configuration options
        and financial transactions in various PeopleSoft Financials modules, and examining the
        delivered Enterprise Integration Points between PeopleSoft Financials and Human
        Capital Management. These efforts were focused on reducing the effort of the
        implementation and they have produced a substantial amount of information that will be
        available during the implementation phase of this project. In addition, work to prepare
        for implementation will continue until an implementation Vendor is selected and arrives
        on site in July, 2006.



2                                                                              Executive Summary
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       The products of the “reengineering” phase of the project are described in Section 2 of this
       RFP and referenced throughout the document. Key products are included with this RFP
       as attachments. All major products are described in Appendix 1.

       The State of Delaware PeopleSoft Financials Reengineering Project is still in the process
       of reengineering the current business processes to make the PeopleSoft implementation
       as “vanilla” as possible. It must be noted that the reengineering products represent the
       thinking of the Project Team at a point in time and that development of the final
       requirements and design documents will be the responsibility of the winning Vendor.

 1.4. Technical and Management Requirements
       The Technical and Management requirements for this project are detailed in Sections 3
       and 4 of this RFP. Building on the products of the Reengineering Phase of this project,
       the Vendor shall provide the implementation and implementation management services
       necessary to deploy PeopleSoft Financials for the State of Delaware.

       While the technical requirements describe what the State believes is needed for
       implementation of the system, it does not, in general, describe how the requirements will
       be met. The “how” of the project will be provided by the Vendor, using a proven
       methodology, approach and work plan that the Vendor has used successfully in other
       PeopleSoft implementations and described in the Vendor response to this RFP.

       Here is a highlight of the services that the State of Delaware is requesting:

       1. Coordinated project management with the State of Delaware Project Manager.

           Working in concert with the State’s project management team, the Vendor will be
           responsible for developing a management and reporting structure for the project and
           for implementing those practices necessary to the efficient and effective
           implementation of the system. The project will be governed by a work plan and
           schedule proposed by the Vendor that is based on a proven methodology used
           successfully by the Vendor in previous engagements. All of the expected
           management deliverables are described in Section 4 – Management Requirements.

       2. Business process reengineering and workflow design.

           Contemporaneous with development of design documentation, the Vendor will work
           with the State to continue the work of process reengineering to align State business
           practices with the design for the new system. The process documents produced as a
           result of this activity will be used to develop or modify policies and operating
           procedures for State user organizations. In addition, the Vendor will work with the
           State to design organization and operating procedures to be used for the on-going
           operations and management of the system.

       3. Review, refinement and expansion of existing design documentation to produce a
          final design for the new system.

           Developed though workshops with the Project Team and the user community, this
           design will document installation, configuration, set-up and customization of twelve
           (12) PeopleSoft modules; modification of the State’s Payroll, Human Resource
           Statewide Technology system (PHRST) to enable integration of this system with


Executive Summary                                                                                 3
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

           PeopleSoft Financials; development of interfaces with existing State systems; data
           conversion from existing financial systems; and interfaces with external systems.

       4. Change Management

           The approach used during the Reengineering Phase focused less on how PeopleSoft
           Financials must be modified to fit the business practices of the State and more on
           how the State business practices must change to take advantage of the delivered
           functionality of PeopleSoft. As a result, very few customizations and modifications
           have been identified to date. However, this also means that there will be major
           changes to the way the State conducts its business and that effective Change
           Management will be extremely critical to the success of the State’s project.

           It will be the responsibility of the Vendor to work with the State to define and
           execute a plan for Change Management that meets Delaware’s requirements. The
           approach and plan will be developed in consultation with the State, in accordance
           with the State’s Change Management practices, but will be executed by the Vendor.
           The plan will identify all analysis, definition, communication, documentation and
           training activities necessary to facilitate the organizational and procedural transitions
           from current business processes to new workflow methodologies and software
           applications.

       5. End user training (Train the Trainer).

           To prepare for implementation of the PeopleSoft Financials for the State of
           Delaware, training must be provided for all PeopleSoft Financial modules, financial
           processes, financial policies, organization changes required for the implementation,
           accounting skills and knowledge, and some basic PC skills. Additionally, there will
           be some train-the-trainers education to prepare for standardized quality training. All
           personnel who are identified as end users for the new system in all State
           organizations will be required to attend training.

           To reach this goal, the Vendor will be responsible for developing a comprehensive
           training plan. The plan will identify the training needs of system end-users; will
           organize the application processes into a course structure, including course
           selections; will develop the training materials needed to deliver the course
           specifications; and will determine the facility requirements necessary to support
           delivery of the training to all end-users. It will be the responsibility of the Vendor to
           work with the State to develop an approach and plan that uses the State’s
           Instructional Design Methodology.

       6. Knowledge transfer to State of Delaware Project Team.

           Knowledge transfer is a continuous process designed to enable the State to properly
           support the operation and continuous improvement of the financial processes and
           PeopleSoft application without the support of external consultants. Through training,
           workshops and mentoring relationships, the Vendor will be responsible for educating
           the Project Team in the methodology and task plan to be used on the project as well
           as the skills and techniques needed for ongoing maintenance of the system.




4                                                                               Executive Summary
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       7. System “build,” unit and integration testing.

           The Vendor will be responsible for configuration, setup and modification of the
           PeopleSoft Financials and PHRST systems in accordance with the system design. In
           preparation for this activity, the Vendor will recommend a development environment
           and define the instances of the system required to support development, testing,
           training, reporting and operations.

       8. Customization, interfaces, data conversion and reporting and application updates in
          conjunction with State of Delaware resources.

           The Vendor will be responsible for leading a joint team of Vendor and State staff
           who will complete development of all system customizations, interfaces, conversion
           programs and reports.

       9. Final acceptance testing.

           During and after end user training, the State will, with oversight and support from the
           Vendor, conduct final user acceptance testing, and system stress testing. The Vendor
           will be responsible for development of the acceptance test plan and for development
           of the acceptance test scripts.

       10. System rollout and go-live support.

           In preparation for roll-out, the Vendor will develop a strategy and plan for the
           transition of the system from development to the production environment and support
           the State throughout the rollout process. The State has a preference for a “big-bang”
           implementation at the start of a fiscal year, but will consider other alternatives if they
           can be documented to be successful and beneficial to the State.

       11. Post implementation support.

           The State expects that it will require 60 days of post implementation support for the
           system and one year of post implementation support for our central financial
           management processes. The support for the system will address post-implementation
           fixes and technical support to the application. The support for the financial
           management processes will focus on closing processes, generation of data need for
           the Comprehensive Annual Financial Report (CAFR), support for 1099 processing
           and training related to these processes.

 1.5. Pricing
       Price is a criterion to be used to evaluate the proposals submitted in response to this RFP.
       Delaware intends to award a fixed price contract for the implementation services
       requested in this RFP. Vendors are asked to prepare a cost proposal in compliance with
       the instructions in Section 7 of this RFP. This cost proposal will present 1) the Core Not
       to Exceed Cost; 2) security costs; 3) costs of alternatives; 4) future Vendor rates; 5) staff
       loading; 6) a payment schedule by deliverable; 7) other costs as needed; and 8) any
       attachments or assumptions use to calculate costs. Please note that the State will provide
       all of the necessary hardware and software components for the development and
       production environments.



Executive Summary                                                                                  5
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




    1.6. RFP Schedule
       The schedule of events for this RFP is outlined below. The State of Delaware recognizes
       this is a very demanding timeline, however, please note that there will be no extensions to
       the proposal due date. The overall proposal schedule may change based on the outcome
       of milestone 5, the intent-to-bid response.

       Twenty hard copies of the technical and cost proposals along with one electronic copy of
       each proposal must be received by 2:00 PM EST April 7, 2006.

             ID                       Milestone                          Date
              1   Publish Request for Proposal                        2/13/2006
              2   Deadline for Vendor Conference Questions            2/23/2006
              3   Vendor Conference                                    3/2/2006
              4   Response to Vendor Questions from Conference         3/8/2006
              5   Intent-to-Bid Response Due                          3/16/2006
              6   Deadline for Vendor Questions                       3/24/2006
              7   Response to Vendor Questions                        3/31/2006
              8   RFP Response Due                                     4/7/2006
              9   Oral Presentations                                  5/22/2006
             10   Vendor Selection                                    5/26/2006
             11   Contract Signed                                       7/17/06
             12   Project Start                                       7/24/2006

       The State of Delaware will advise potential Vendors of changes to any dates as may be
       necessary. The State of Delaware also reserves the right to modify and/or cancel this
       solicitation at any time during the RFP process.




6                                                                             Executive Summary
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



2. Project Overview

   2.1. Project Vision
       The State seeks to establish a working relationship with a qualified professional services
       Vendor that has been the prime Vendor for other states in the successful configuration
       and implementation of Enterprise Resources Planning (ERP) systems. The State
       envisions a business partnership with a Vendor that can ensure the State success in its
       enterprise resource planning initiative, within the constraints of available funding.

       The State envisions the configuration and implementation of an ERP system that provides
       for centralized business rules processing with de-centralized accountability. The vision
       includes a system with clearly defined accounting and procurement business rules (best
       practices) and common templates for point of origin data collection, analysis and use.
       Other key elements of this initiative:

           1. Implementing a single, integrated accounting and procurement system, that
              provides for centralized shared financial and human resource information.

           2. Implementing a consolidated, single, chart of accounts with real-time,
              standardized general ledger transactions.

           3. Conforming to generally accepted accounting principles (GAAP).

           4. Implementing a procurement system that supports centralized and decentralized
              purchasing requests and sourcing, with a single Vendor and item master.

   2.2. Project Objective
       The State plans to achieve its vision through the PeopleSoft Financials Implementation
       Project; the foundation of which will be the integration and implementation of the
       PeopleSoft Financials ERP system and the implementation of best business practices.

       The following are the major objectives of the PeopleSoft Financials Implementation
       Project:

             1. Streamline the State’s core financial and procurement processes through
                business process re-engineering in conjunction with the implementation of best
                practices included in the PeopleSoft ERP package. This objective includes
                replacing existing systems to improve business operations through enhanced
                ERP functionality and new technologies.

             2. Standardize business processes and practices across State organizations to
                conform to State statutes, statewide policies, regulations or procedures, and
                collective bargaining agreements.

             3. Eliminate administrative activities that do not add value, such as redundant
                keying and reconciliation of disparate systems.

             4. Address the business requirements of the operating agencies, both large and
                small, as well as those of the central administrative agencies/offices.



Project Overview                                                                                    7
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

             5. Capture and make available to agency heads, fiscal officers, personnel
                administrators, and program managers the information needed to effectively
                manage programs and measure their success.

             6. Provide agencies, and specifically system users and business managers, with
                the necessary technology, tools, and training to enable them to extract the data
                they require to meet their daily business needs.

             7. Greatly enhance the ability to report statewide expenditures by fund, service
                area, program, grant, Vendor, item, and contract through implementation of
                statewide account coding standards (chart of accounts) for classifying agency
                programs, revenues, expenditures, and projects.

             8. Make information more readily available, as appropriate, to all State agencies,
                local governments, the general public, and the business community.

             9. Provide employees, and fiduciaries direct access, as appropriate, to personnel,
                payroll, time and attendance, and benefit information.

             10. Enable the State to more efficiently conduct business with its vendors and
                 service providers through expansion of electronic commerce.

             11. Improve the State’s ability to budget and measure program success based on
                 performance metrics.

             12. Improve the State’s ability to conduct business, human resources (HR), and
                 technology planning based on reliable, timely financial and human resources
                 data.

             13. Facilitate State compliance with the Governmental Accounting Standards
                 Board’s financial reporting requirements for state and local governments.




8                                                                                Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

   2.3. Background
       The purpose of this section is to provide a history of the PeopleSoft Financials
       reengineering and planning activities completed to date and to describe the preparedness
       of the State to begin implementation of PeopleSoft’s Financials application.

       2.3.1. Enterprise Resource Planning (ERP) in Delaware
               There are currently a number of systems in place that comprise Delaware’s
               financial network. The following is a brief synopsis of each.

               The Delaware Financial Management System (DFMS)
               The State of Delaware implemented its current accounting book of record,
               DFMS, in the mid-1980’s utilizing version 2.0 of the American Management
               System (AMS) Government Financial System software. The system is
               mainframe based and has been heavily customized to continue to meet the ever
               changing financial standards within the public sector environment and laws
               passed by the federal and State government. The system has served the State
               well, but has become outdated and lacks a number of features that would
               dramatically improve the way the State operates. The PeopleSoft Financial suite
               of products will replace DFMS.

               Operations Management System (OMS)
               OMS is a graphical front-end or feeder system to DFMS that allows for the
               creation of most DFMS transactions in a client-server environment. OMS
               transactions are routinely synchronized with DFMS through an upload and
               download process so that DFMS remains the system of record for OMS users.
               OMS is deployed in approximately 20 State organizations. The PeopleSoft
               Financial suite of products will replace OMS.

               Budget Accounting Information Subsystem (BACIS)
               The Delaware Department of Transportation (DelDOT) utilizes a forty year old,
               home grown, mainframe, legacy system, BACIS. Like DFMS, BACIS has also
               served the State well. The system that replaces BACIS should be in place by
               July 2008, in order to avoid extensive modifications to BACIS. A component
               unit of DelDOT, the Delaware Transit Corporation (DTC) is currently utilizing
               PeopleSoft Financials in its day-to-day operations. The PeopleSoft Financials
               suite will also replace BACIS.

               Budget Development and Information System (BDIS)
               BDIS was implemented in 1996 and included a mechanism for organizations to
               input and send budget data electronically as well as a reporting tool (Cizer). It
               was one of the few client server systems in the State at the time. Over the years
               it has evolved to its current form which is a web-based product. After evaluating
               the PeopleSoft Budgeting product, the State of Delaware has chosen not to
               include it in its initial implementation. The new system must, therefore, interface
               with BDIS.

               Payroll Human Resources Statewide Technology (PHRST)
               The Human Resource (HR) Module of PeopleSoft Human Capital Management,
               version 6.02, was implemented in 1999. In July 2001, the HR module was
               upgraded and the Benefits Administration and Payroll modules were added


Project Overview                                                                                9
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               utilizing the 7.51 version. Depending upon the module, an estimated twenty-five
               to forty percent of the HCM was customized to meet the State’s needs, including
               several bolt-on components which were completely written specifically for the
               State. Most recently, in April 2004, the State upgraded HCM, Global Payroll,
               and Benefits to version 8.8 SP1 which took approximately 1 year to complete. In
               addition, the Time and Labor module (T&L) was implemented with pilot
               organizations in April 2005 and the Department of Transportation in November
               2005. The T&L module is in a roll-out phase at the present time. PHRST must
               be modified or reengineered to enable integration with PeopleSoft Financials.

       2.3.2. Financial Reengineering Project Overview
               The State of Delaware is preparing to implement PeopleSoft’s Financials
               application, the ERP software it purchased. This ERP software is not simply a
               replacement for Delaware’s current accounting systems, the Delaware Financial
               Management System (DFMS) and the Department of Transportation’s BACIS.
               By consolidating financial management (e.g., accounting, budgeting, and payroll)
               and non-financial management (e.g., human resources and purchasing) functions,
               the Financial Reengineering Project and this ERP software seek to fundamentally
               restructure the way the State conducts business.

               PeopleSoft’s Financials application is an integrated suite of software modules
               (General Ledger, Accounts Payables, Asset Management, Accounts Receivables,
               Billing, Expenses, Grants Management, Contracts, eProcurement, Purchasing,
               Cash Management, Project Costing and the Portals) that when implemented will
               consolidate data from Delaware’s financial management (e.g., DFMS, OMS and
               BACIS) and non-financial management (e.g., PHRST and PRISM) processes into
               a central, common database that is accessible in “real time.” By eliminating
               these and other independent, stand alone applications and databases used by
               different State agencies, the PeopleSoft application replaces functional
               orientations with standardized financial processes across the State’s agencies. It
               is through this elimination of the need to reconcile fragmented information,
               navigate multi-layered approval processes, and operate and maintain multiple
               applications that the PeopleSoft Financials application enhances financial
               control, operational management, analysis and reporting, decision support and
               empowers all levels of Delaware’s organizational hierarchy.

               The Reengineering Phase products that were produced will be useful but the
               products represent the State’s Project Team understanding and intentions at a
               particular point in time and are subject to modifications throughout the activities
               of the implementation team.

       2.3.3. PeopleSoft Financials – July 2004 to December 2005
               In July 2004, the State took the first steps toward implementing PeopleSoft
               Financials 8.8. However, several case studies pointed out that success in
               implementing an ERP system can be related to how much an organization
               optimizes its business processes to take advantage of the full capabilities found in
               an ERP system. Recognizing this crucial first step, the State committed to taking
               the time necessary to evaluate its business processes and re-engineer those areas
               which were inconsistent with PeopleSoft Financials delivered functionality.



10                                                                                Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               Since July 2004, the PeopleSoft Financials Project Team has gathered and
               produced a substantial amount of information which will be available during the
               implementation phase of this project. Specifically, the State has developed the
               following:
                   •   High-Level Global Process Flows: An illustration of the high-level end-to-
                       end financial processes currently used by the State within the current
                       accounting systems. A list of best practices for consideration is included
                       with each module.
                   •   Global Design Assessment Report: An interim report establishing the
                       foundation for future implementation design and transition management
                       development. This interim report included: 1) current common data
                       elements; 2) issues, assumptions and principles compiled through
                       workshops; 3) reports and other observations; 4) identified high level
                       processes for reengineering; 5) analysis of current business operations in
                       terms of strengths, weaknesses and opportunities for improvement; and 6)
                       an initial analysis of organizational design opportunities.
                   •   Business Process Improvement Workshop Documentation: A compilation
                       of all workshop documentation developed and presented during the module
                       workshops. The documentation includes: 1) presentations used at each
                       module workshop; 2) module process flows based on PeopleSoft best
                       practices; 3) cash vs. accrual presentations, activities, and assumptions; 4)
                       chart of accounts presentation, activities, and decisions; 5) agency
                       assignment templates and completed assignments used to identify issues
                       and risks; 6) workshop session evaluation forms; and 7) opportunities and
                       organization impacts.
                   •   Detailed End-To-End “To Be” Process Flows: The document consists of
                       the following, as appropriate, for each business process: (1) detailed
                       process decomposition; (2) inputs and outputs to the processes and process
                       steps; and (3) data model considerations.
                   •   State of Delaware Control Book: The document associates potential
                       benefits with the State’s new financial processes. It provides a tracking
                       mechanism that will assist the State with analyzing potential benefits that
                       may be achieved once the ERP solution is implemented. The control book
                       documents the quantified short and long-term benefits, which the State can
                       leverage to measure the ultimate success of the implementation of the
                       processes. The control book includes process details, best practices,
                       benefits and metrics.
                   •   The Future Business Process Design: The Future Business Process Design
                       is used to list the capabilities that the State’s future financial business
                       processes, organization and technology must have in order to implement a
                       “near vanilla” PeopleSoft Financials application in the future. Included in
                       the documentation are interface requirements identifying each interface and
                       conversion requirements identifying data conversion activities. Also
                       included are issues, principles, assumptions and constraints used to develop
                       the final process design.
                   •   The Recommended Changes to Organizational Structure: The document
                       defines recommendations for the desired State financial organizational


Project Overview                                                                                 11
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                       structure. The structure supports the recommended changes resulting from
                       the future financial processes and PeopleSoft solution. This document
                       allows the Project Team to visualize the “To-Be” organizational structure
                       and is required to support the overall working environment of the State of
                       Delaware.
                 •     Project Communication Plan: This plan provides an organized framework
                       for managing and coordinating the wide variety of communications that
                       will directly or indirectly take place as part of this initiative. Such a
                       framework will ensure that the PeopleSoft Financials Reengineering
                       Project Team provides relevant, accurate, consistent and timely
                       information to the appropriate stakeholders.
                 •     Draft Templates supporting the following Change Management processes:
                       1) End User Inventory and Skills Assessment captures information on
                       employees within each organization who perform financial processes and
                       an assessment of their skill levels; 2) Position Definition/Description
                       defines each PeopleSoft Role identified by the Project Team; and 3)
                       Knowledge Transfer Program which outlines the knowledge transfer and
                       staff development activities to enable the State to properly support the
                       operation and continuous improvement of the financial processes and
                       PeopleSoft application without the support of external consultants.
                 •     Draft Readiness Assessment Questionnaire: The document is used to assess
                       the State’s readiness and ability to absorb the changes designed for the
                       financial process and organization transition.
                 •     Skills Gap Analysis Summary: This document provides an assessment of
                       current skill level of staff in their financial positions and identification of
                       the additional knowledge, skills and abilities required to perform well in a
                       PeopleSoft environment.
                 •     Training Strategy: This document defines a training strategy that will
                       enable staff to operate effectively in the new environment by providing for
                       appropriate training and development while addressing the needs identified
                       in the Financial Employee Skills Gap Analysis.
                 •     Training Plan: This document identifies activities and responsibilities
                       related to the development, delivery and evaluation of client education and
                       training for the planned implementation. These activities include training
                       identified for financial end users within the organization - including
                       process, organization and IT.
                 •     PHRST Integration Analysis: This document provides detail about the
                       changes required to PHRST, or changes required to the “To-Be” design of
                       the PeopleSoft Financials, to enable the two systems to be integrated. The
                       Integration Specifications are provided in sufficient detail to allow an
                       implementation Vendor to accurately size and price the integration effort.
                       In addition, this document identifies the decisions to be made by PHRST
                       management related to changes in current business process and practice.




12                                                                                    Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

             2.3.4. Reengineering Phase Products
                        These products listed below are a subset of the work done on the PeopleSoft
                        Financials Reengineering Project since July 2004. This RFP contains a summary
                        of each of these products:

                           •       PeopleSoft Roles Description Documents
                           •       Future Business Process Designs
                           •       Skill Gap Analysis Summary
                           •       Training Strategy and Plan & Knowledge Transfer Plan
                           •       Communication Plan
                           •       Functional Scope Matrix
                           •       PHRST Integration Analysis
                           •       DFMS and BACIS Transaction Crosswalks
                           •       Change Awareness and Readiness Survey
                           •       Configuration Documentation Sample

                        Some of the products listed above are included with the RFP as a full appendix.
                        However, many of these products will only be available during this RFP process
                        via the summaries contained within this document. The full versions will be
                        available during the implementation phase.

                        As of the writing of this RFP, the State of Delaware PeopleSoft Financials
                        Project Team will have had nearly 16 months of active, hands-on access to a
                        sandbox environment with its own data populating many of the core tables within
                        PeopleSoft v8.8 SP1. In addition, it has configured Commitment Control which
                        the State will also implement. The current sandbox has the following products
                        installed:

                                  •     Asset Management*                           •     General Ledger*
                                  •     Billing*                                    •     Grants*
                                  •     Budgeting                                   •     Human Capital Management 3
                                  •     Cash Management*                            •     Inventory
                                  •     Contracts*                                  •     Payables*
                                  •     Deal Management                             •     Program Management
                                  •     EPM                                         •     Project Costing*
                                  •     Expenses* 1                                 •     Purchasing*
                                  •     eProcurement* 2                             •     Receivables*
                                  •     eVendor Connection                          •     Strategic Sourcing
                                  •     Financials Portal Pack*                     •     Supply Chain Portal Pack*

                        While there are twenty-two products installed, the State of Delaware has chosen
                        to initially implement a sub-set of these modules (identified above with an *)
                        along with the Portal Packs (Financials Portal and Supply Chain Portal). In

1
  The State will implement Expenses for processing expense reports only, and will send payment data to PeopleSoft Payroll. It is the
desire of the State to pay employee expenses through payroll and to not have employee data in the Vendor table.
2
    The State will be implementing the use of the eProcurement module as a ‘requisition front end’ for Purchasing module end users.
3
 The State of Delaware currently has in production PeopleSoft Benefits Administration, Human Resources Administration, and
Payroll version 8.8 SP1. This system however is heavily modified with some aspects of the HCM application totally customized to
meet Delaware’s business objectives.



Project Overview                                                                                                                  13
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               addition, the State has selected module leads for each of the products that are
               expected to be included. Each of these module leads has taken the requisite
               courses suggested by PeopleSoft and in many instances has cross trained in some
               of the core modules such as General Ledger and Commitment Control.

               The sandbox has been maintained by limited technical support provided to the
               project by the State’s Department of Technology and Information (DTI) as well
               as proactive team member management using PeopleSoft’s Customer Connect to
               monitor the issuance of the latest bundles. It currently shares space on a server
               located at DTI. In addition, the Project Team has obtained access to a copy of
               the State’s PeopleSoft HCM (Human Capital Management) v8.8 SP1 for the
               purposes of creating an HCM sandbox environment.

               The reason for the HCM Sandbox environment is so that the State of Delaware
               Financial Reengineering Project Team can test the delivered Enterprise
               Integration Points (EIPs) between Financials and Human Capital Management.
               For the past several months, in a concurrent effort, the State Financial
               Reengineering Project Team has been collaborating with several members of the
               State HCM team to discuss the benefits and risks of turning on several EIPs that
               exist. The PeopleSoft Financials Reengineering Project Team has produced a list
               of recommended EIPS for implementation consideration. The full report of
               PHRST recommendations is attached as Appendix 2.

       2.3.5. PeopleSoft Financials – January 2006 to July 2006
               It is expected that by the time the State’s chosen implementation Vendor arrives
               on site at the project location, the State team will be nearing completion or have
               completed several significant sources of information allowing for immediate
               movement toward specific implementation activities. The Project Team expects
               the following to occur prior to July 2006:
                 •     PeopleSoft Configuration Documents Underway: The State team, through
                       the use of Setup Manager, will have completed a significant portion of the
                       configuration documents for each module. The configuration documents
                       will include navigation, a screen capture, a copy of the table referred by the
                       page, and a discussion of major configuration decisions made. A sample
                       copy of the configuration document can be found in Appendix 12.
                 •     PeopleSoft v8.9 Installed: The State team will install, in an environment
                       suitable for development, several instances of the most current version of
                       PeopleSoft Financials. At a minimum the following will be available on
                       July 1, 2006 with others added as necessary FNSY (System), FNDM
                       (Demo), FNTP2 (Prototype), FNDV (Development). Policy and
                       procedures will be developed to move information from each of the
                       instances to ensure data integrity. In addition, each of the module leads
                       will be restricted, by security definitions, to limit access to only those core
                       areas necessary to accomplish a successful development.
                 •     Chart of Accounts Review Nearing Completion: The State team will have
                       reviewed and agreed to a common chart of accounts and numbering
                       schemes that will be used in conjunction with the implementation. All
                       values for the chart string may not be completely determined. However, it
                       is anticipated that major fields such as Fund, Account, and Class will be


14                                                                                   Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                       determined. In addition, documentation includes where separate
                       SETID/Business Units will be needed to support the business functions of
                       an organization that has requirements which are not easily met by using the
                       agreed to standard.
                   •   Business Process Documents Halfway Completed: The State team will
                       review, identify, define and create process documents for completing
                       certain actions within PeopleSoft using the defined-role concept. While it
                       is unlikely the “who” will be identified, the “what” will be entirely
                       identified and documented.
                   •   Major Module and Policy Issues Being Reviewed: The State has a number
                       of policy and module specific issues in queue to be decided by the
                       Financial Advisory Committee and/or the Statewide Executive Sponsors.
                       Issues which have the most significant impact on process and policy will
                       be before the Executive Sponsors.
                   •   Communications Plan Ongoing: The State Project Team has completed a
                       communication plan using a campaign based strategy. The plan will be
                       ready to go in effect in July 2006 with a variety of information delivery
                       vehicles ready for its use (e.g. project website). For more information
                       please see Appendix 3 on the communications strategy. The plan will
                       ensure communication is complete and available to everyone identified in
                       previous phases of the project.
                   •   Training Completed: All Project Team members will be trained
                       appropriately or will have required skills prior to the start of the
                       implementation contract.

       2.3.6. DFMS Transaction Crosswalk
               The State has reviewed and analyzed the transaction types in the current
               accounting system (DFMS) and mapped each one to the replacement transaction
               in PeopleSoft Financials. Of the approximately two dozen transactions
               identified, a direct replacement was found in PeopleSoft for all but four. Each of
               those four transactions have been identified as an open issue and a solution for
               those situations will be determined prior to or at the start of the implementation.
               The DFMS to PeopleSoft Crosswalk Table is found in Appendix 4 of this RFP.

               The State also analyzed the transactions in BACIS. BACIS has been used for
               many years by the DelDOT to record accounting information associated with
               transportation projects at a more detailed level than DFMS. There are system
               generated transactions within BACIS that are interfaced with DFMS and are
               incorporated into the DFMS to PeopleSoft Transaction Crosswalk. However,
               there are also manual transactions that are keyed into BACIS via journal entries.
               The BACIS to PeopleSoft Transaction Crosswalk Table identifies these
               transactions and is also found in Appendix 4 of the RFP.

   2.4. State Organization

       2.4.1. State Government: Basic Characteristics
               The structure of the State of Delaware’s government, which is similar to those of
               other states, consists of three branches that operate through a system of checks


Project Overview                                                                               15
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               and balances. The chief executive officer of the State is the Governor. The
               executive branch is comprised of 16 cabinet level departments, of which the
               Office of Management and Budget and the Department of Finance are
               responsible for the fiscal operations of the State. The legislative branch consists
               of the General Assembly, which is bicameral, with its House of Representatives
               and Senate. The most significant legislative committees addressing the State’s
               fiscal issues are the Joint Finance Committee (operating budget and Grant-In-Aid
               budget) and the Joint Committee on Capital Improvements (capital budget).
               These joint committees are composed of equal numbers of representatives and
               senators and are staffed by the Controller General. The judicial branch includes
               the Supreme Court (appeals court), the Court of Chancery (an equity court with
               jurisdiction over corporate and other matters involving equitable distribution),
               and four other courts of law handling both criminal and civil matters. There are
               several other elected officials, of whom the State Treasurer signs all of the State
               checks and oversees the management of the State’s bank accounts and the
               Auditor of Accounts audits all State organizations’ financial transactions. The
               State has 30,554 full-time equivalent positions budgeted for Fiscal Year 2006:
               16,714 in the executive branch, 12,867 in the public schools and 973 in
               institutions of higher learning (excluding the University of Delaware). Delaware
               is unusual in that the State government (not county or municipal governments)
               provides the funding and administers substantially all correctional, public health,
               welfare and transportation services for its residents.

               For budgeting, accounting and reporting purposes the State government is broken
               out by department, division (also called appropriation unit) and budget unit (also
               called internal program unit). The biggest unit is the department and is usually
               specified in the Delaware Code. Currently, there are 22 “departments” (this
               includes the legislative and judicial branches and groupings of similar agencies,
               offices or other entities). Also at this department level are the State’s 19 school
               districts and 19 charter schools (13 active and 6 in queue). Departments consist
               of one or more divisions, which are aggregations of one or more budget units.
               The budget unit is the smallest organizational unit receiving budget
               appropriations. There are 51 divisions that aggregate 338 budget units.

               For implementation of PeopleSoft, the 338 budget units will be identified with
               the Department ChartField and assigned a unique DeptID. In the remainder of
               this document, the term Department will be used to refer to the 338 budget units.
               All of these organizations are within the scope of the PeopleSoft Financials
               project. Within these organizations there will be approximately 600 core and
               3000 total system users.

       2.4.2. State Financial Management
               Delaware’s long tradition of tightly managed finances and a premier credit
               standing has been recognized since Fiscal Year 2000 with AAA bond ratings
               from the three principal rating organizations (Moody’s Investors Service, Fitch
               Ratings and Standard & Poor’s). Four principles form the core of this approach:
               1) controlling base budget growth; 2) developing sound and responsible tax
               policy; 3) financial flexibility; and 4) maintaining sizable cash balances in
               reserve.




16                                                                               Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               Currently, the State budgets and controls its financial activities on the cash basis
               of accounting for its fiscal year (July 1 to June 30). In compliance with State
               law, the State records its financial transactions in either the budgetary General
               Fund or budgetary Special Funds. The budgetary General Fund provides for the
               cost of the State’s general operations and is credited with all tax and other
               revenue not dedicated to budgetary Special Funds. All disbursements from the
               budgetary General Fund and certain budgetary Special Funds must be authorized
               by appropriations from the General Assembly. Budgetary Special Funds are
               designed for specific purposes and are credited with the tax or other revenue
               allocated to such fund and is charged with the related disbursements. There are
               also non-appropriated budgetary Special Funds (e.g., federal payments). Some
               organizations use both appropriated funds for operations and non-appropriated
               funds for special programs.

               Capital assets are defined as assets which have a cost of $25,000 or more at the
               date of acquisition and have an expected useful life of one or more years. All
               land and buildings are capitalized regardless of cost. Purchased or constructed
               capital assets are valued at historical cost or estimated historical cost.

               The State has established and maintains an internal control structure designed to
               ensure that the assets of the State are protected from loss, theft or misuse, and to
               ensure that adequate accounting data are compiled to allow for the preparation of
               financial statements in conformity with GAAP.

               The amount of budgetary General Fund cash disbursements plus unliquidated
               encumbrances cannot exceed the amount appropriated for any budget line.
               Disbursements from State funds are controlled by an encumbrance accounting
               system within DFMS that is designed to provide information on the actual extent
               of the State’s obligations (as determined by purchase orders issued) and to guard
               against over-committing available funds. The State restricts commitments for
               budgetary General Fund expenditures by State organizations. Commitments to
               incur expenditures in excess of an appropriation (to be funded from unused funds
               appropriated from other agencies) must be approved by the Director of the Office
               of Management and Budget and the Controller General. “Available” funds may
               be set aside through properly issued and approved purchase orders.
               Disbursements based on these purchase orders cause a reduction in available
               appropriations. The availability of funds for the budgetary General Fund
               depends on funds being appropriated, however, in general, for budgetary Special
               Funds the cash must be on hand. The exceptions are for federal grants, the
               Transportation Trust Fund and bond authorizations. For administrative reasons,
               transactions such as salary and fringe benefit expenses, debt service, certain
               budgetary Special Fund expenses and purchases under $2,500 do not require a
               formal encumbrance of funds.

               At the end of the fiscal year, cash is reserved to pay outstanding encumbrances
               (purchase orders for goods and services not yet received or for which payment
               has not yet been made). Budgetary General Fund encumbrances are carried over
               as encumbered appropriations and paid out and recorded as disbursements in the
               succeeding fiscal year. All obligations created by purchase orders are liquidated
               upon satisfactory receipt of goods and services. Budgetary General Fund
               appropriations which have not been disbursed, continued or encumbered at fiscal


Project Overview                                                                                17
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               year end, lapse. These lapsed appropriations are referred to as “reversions” in the
               State’s finance reports.

               Although the majority of the State’s financial transactions are processed through
               DFMS, certain budgetary Special Funds have financial activity, such as
               investments, outside the system. For example, the Transportation Trust Fund, the
               Delaware State Housing Authority, the deferred compensation programs and
               Delaware State University all maintain certain financial activity outside DFMS.

       2.4.3. State Organizational Characteristics
               The State organization is structured around functional areas that support the
               mission and goals of the government as determined through the political process
               and codified through legislation such as the budget acts. This structure is also
               hierarchical, with multiple levels of management. Reporting relationships are
               formal: however, given the relatively small size of the government, political
               relationships among cabinet secretaries, managers, legislators, and employees
               often are more important in determining the actual influence of these managers
               and department (cabinet) secretaries and what gets accomplished. Though the
               organizational culture professes to be rules-based, when managers or workers do
               not readily support what is to be done, variances and unique “work arounds” are
               developed. Some State functions are provided by centralized (e.g., payroll),
               partially centralized (e.g., personnel functions), or shared services organizations
               (e.g., Fleet Services or Printing and Graphics). Even so, many departments
               maintain resources for these functions themselves. Within this structure,
               departments tend to operate in closed “silos” and have developed independently
               from each other. This has impacted the way departments communicate, address
               fiscal responsibilities and organizational change.

               Communication varies significantly across departments. Though the
               infrastructure supporting basic communication functions (primarily information
               technologies involving e-mail and web-based applications) has been extensively
               upgraded, the sharing of information about business and financial operations
               between departments continues to be limited and often guarded beyond the
               mandated protection of private personal information. The reach of financial
               communications affecting all departments is often fragmented and difficult to get
               to all personnel performing financial functions. There is a great reliance on a
               trickle-down form of communications. Indeed, managers often are not provided
               with sufficient tools or information to analyze the processes and personnel
               performance they are managing. Existing business metrics are few and typically
               focus on financial results or current situations rather than focusing on process and
               future performance. The result is that managers tend to spend more time
               performing business processes rather than managing them.

               While the Secretary of the Department of Finance is responsible for many
               financial management functions, the State does not recognize a singular financial
               process owner—there is no one executive or manager with cross department
               authority to enforce adherence to the broad array of standardized financial
               processes within the scope of an ERP system. There are multiple sets of financial
               process directives such as the Budget and Accounting Manual, Division of
               Accounting Policy and Procedures, and other departmental procedures



18                                                                                Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               (undocumented or documented in departmental manuals, directives or memos).
               The State’s financial personnel are disbursed through all departments and are
               often organized differently between the departments, depending upon the number
               of resources and primary goals and objectives of those departments. These
               financial personnel are usually responsible to their individual departments. This
               fragmentation and lack of a coordinated process reinforces the variances in the
               ways financial work is accomplished among the different departments. One
               result is that the applications (e.g., DFMS and BACIS) supporting the same
               processes have evolved. DFMS has been significantly modified from the original
               version in order to add increased functionality, increase ease of use, and
               incorporate federal and state mandates. BACIS is used exclusively by the
               Department of Transportation and has differences (accounting based on projects,
               not appropriations) that provide this department with unique functionality.

   2.5. Technical Environment
         Department of Technology and Information
         Oversight of the PeopleSoft Financials Implementation project will be the
         responsibility of the Delaware Department of Technology and Information (DTI). DTI
         is established under Title 29, Delaware Code, §9004C. The General powers, duties and
         functions of Department of Technology and Information (DTI) include a responsibility
         to:

               “2) Implement statewide and interagency technology solutions, policies,
               standards and guidelines as recommended by the Technology Investment Council
               on an ongoing basis and the CIO, including, but not limited to, statewide
               technology and information architectures, statewide information technology
               plans, development life cycle methodologies, transport facilities, communications
               protocols, data and information sharing considerations, the technique of
               obtaining grants involving the State's informational resources and the overall
               coordination of information technology efforts undertaken by and between the
               various State agencies;”

         DTI is responsible for providing core computer, telecommunications, and networking
         services to State agencies, for procurement of IT-related goods and services, for
         statewide strategic technology planning, and for development of IT standards and
         policies.

         DTI hosts the State payroll system, PHRST, and the new PeopleSoft Financials system
         will be integrated with PHRST. The ERP Financials infrastructure will be hosted at the
         DTI data center and must meet all DTI standards.

         The current ERP infrastructure is a 4-tier PeopleSoft system. Current ERP systems are
         supported by DTI’s Major Projects Division, which uses a set of standard tools (shown
         below) that will be used by the PeopleSoft Financials ERP for implementation and
         operations. DTI will provide the necessary hardware infrastructure for the
         implementation.




Project Overview                                                                             19
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



               Relational Database                Oracle 10g
               Server Operating systems           Windows 2000, Unix,
               Version Control                    STAT by Quest
               Process Scheduler                  Cybermation
               QA –Testing                        Mercury Test Director
               File Transfer                      SFTP (Secure FTP), Web services
               Network protocol                   TCP/IP
               Email                              Microsoft Outlook
               Office Applications                Microsoft Office 2000, XP
               Report Distribution                Mobius Document Direct
               Web server Middleware              IBM Websphere
               Web Browser                        Microsoft Internet Explorer

         Any other tools the Vendor may want to utilize must meet DTI’s Architectural and
         Security Standards. If Vendor’s tools do not meet DTI’s network or security standards
         the Vendor shall make alternate solutions available.

         The Vendor will be required to go through the background security check and finger
         printing at Delaware State Police Headquarters prior to granting access to the State
         infrastructure, and the Vendor must sign DTI’s Acceptable User Policy and other
         related State polices and a Non-Disclosure Agreement.

         Remote access: The State Email, when provided, can be accessed through the Internet.
         To access any other services, including the PeopleSoft development environment, users
         must be present at State sites and have the appropriate permissions to have access to
         State ERP infrastructures.

         State Network Infrastructure
         DTI provides multiple core network infrastructures including a K-12 network, a State
         network and extranet type services. Services include circuits (ranging from T1 Frame
         Relay to 100M TLS to fiber), Firewalls, DMZs, and remote access are managed by
         DTI.




20                                                                              Project Overview
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




                                                              ERP Development Network
                                 Development Servers


         HTTPS
                                                                                      Data
                                                                                      base
                     DMZ                Reverse             Web DMZ           Apps
                                                DMZ
                    Firewall             Proxy             Server Firewall   Server
                                               Firewall
                                 System test servers


         HTTPS                                                                        Data
                                                                                      base
     State users
                    DMZ                Reverse             Web DMZ           Apps
                                               DMZ
                   Firewall             Proxy             Server Firewall    Server
                                              Firewall

                                                                   ERP DMZ

                                          QA Servers

       HTTPS
                                                                                      Data
                                                                                      base
                    DMZ               Reverse              Web DMZ           Apps
                                              DMZ
                   Firewall            Proxy              Server Firewall    Server
                                             Firewall




Project Overview                                                                             21
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



3     Technical Requirements Section
      This section provides an overview of the modules and major functional requirements that
      are within the scope of work of Delaware’s implementation effort. The information
      presented in this section is based on the work completed by the Project Team to date. This
      work is planned to continue until the arrival of the implementation Vendor.

     3.1 Design Principles
          The philosophy of reengineering that has guided the project to date will continue
          through the implementation effort. The charter for the work of the implementation
          Project Team has been provided by project and executive sponsors through
          management meetings, background materials and the project scope of work. This
          charter includes five major design principles that are to be used by the team to make
          design decisions for the new system, and to identify and document issues when
          characteristics of the system conflict with these principles.

          1. Vanilla Implementation – Deploy PeopleSoft Financials with minimal
             customization or modification.

              This will minimize on-going maintenance cost, ensure a stable upgrade path and
              allow for the integration of other modules in the future.

          2. Best Practices – Adopt PeopleSoft Financial modules, features and functions that
             add value to current practices.

              The project is an opportunity to improve the way the State conducts its business
              through adoption of best practices embedded in PeopleSoft Financials or in use by
              other public organizations.

          3. Reengineering – Modify current business processes to enable an efficient
             implementation and adoption of best practices.

              The project will pursue changes to policy, procedure, organization and legislation
              in order to realize system benefits.

          4. Simplification – Minimize complexity by adopting only those modules, features
             and functions that provide tangible benefits to the State. Simplify current business
             practices wherever possible.

              With a complex ERP system, less is more. The project adopts the minimal set of
              features and functions that add value while reducing complexity of work processes.

          5. Accounting Precision – Ensure that accounting information is complete and
             traceable to tangible business events.

              This approach maximizes data quality, increases the transparency of accounting
              transactions and reduces the effort to control and audit these transactions.




22                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

         Additional information on the background of these principles and the assumptions
         guiding this project may be found in the PeopleSoft Financials Implementation Project
         Charter (Appendix 5).

   3.2 Customizations and Modifications
         The PeopleSoft Financials Reengineering Project operated under the principle that the
         system would be implemented as delivered – that the system would be installed with
         few if any modifications and that operating policies and procedures of the State would
         be changed to accommodate this “vanilla” system. The intent of this principle is to
         reduce the burden of system upgrades and to minimize ongoing maintenance costs. To
         help the Project Team apply this, the following definitions were developed:

         A customization is any new product developed with PeopleTools or installed into the
         environment that provides functionality that was not provided with the original
         application product. The key characteristic of a customization is that it has a very low
         probability of being affected by patches or fixes. An example of a customization would
         be using PeopleTools to create an application inside the PeopleSoft Financials system
         to associate a payment ID with a deposit unit to facilitate a bank file interface. In
         addition, new reports and custom interfaces would be considered customizations. As
         such, customizations are permitted under the principle, if there is a compelling business
         case for their inclusion in the system.

         A modification is any change to a part of the application product or functionality that
         was originally delivered by PeopleSoft, and can be characterized as having a high
         probability of being affected by patches or fixes. When a patch or fix is applied, it
         wipes out the modification, which then has to be "reapplied" to the product in
         development, "retested" in test, "reaccepted" in Quality Assurance (QA), and then
         moved back into production.

         An example of a minor modification is changing a field from not required to required,
         adding items to a list of values, or changing a display label on a field. In general, minor
         modifications are changes made to component and record definitions using Application
         Designer. Minor modifications are permitted under the principle and are assumed to be
         an extension of the configuration and table setup completed for these modules and
         included within the scope of the configuration task.

         An example of a major modification would be one that added or changed business
         logic by adding PeopleCode to the Journal Load components or one that modified
         PeopleSoft table structures. Major modifications are the ones directly addressed by this
         principle. When the term “modification” is used within this RFP it is intended to refer
         to such major modifications.

         The State expects minimal change to the delivered PeopleSoft functionality and, to
         date, has identified few major modifications. Those that have been identified are
         discussed in the Module Requirements and summarized below. However, the State
         realizes that the Project Team has not reached the detail in some areas that is necessary
         to identify all potential modifications.




Technical Requirements Section                                                                   23
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


             Module                 Description of Change                           Modification or
                                                                                    Customization
             Accounts Payable       Modify check delivered with PeopleSoft          Modification
             Billing and Accounts   An intergovernmental voucher solution           Modification
             Receivable             which has yet to be determined may
                                    require a modification.
             Cash Management        Automated bank reconciliation must be           Modification
                                    changed to allow for duplicate deposits by
                                    date, amount and reference number.
             Cash Management        Technically an AR modification, we need         Modification
                                    to change the selection criteria for
                                    directly journalled AR entries for
                                    processing and posting to the General
                                    Ledger. Details can be found in the Cash
                                    Management module Summary.
             Cash Management        Customization to create miscellaneous           Customization
                                    receipt transactions from the daily BAI file
                                    of deposit transactions.
             General Ledger         Row-Level security to enable security at        Modification
                                    the department level
             PHRST Integration      Multiple business units will require            Modification
                                    modifications to all reports and programs
                                    using business unit.
             PHRST Integration      The change of department from a 9-              Modification
                                    character field to a 6-character field will
                                    require a modification in PHRST to all on-
                                    line pages, reports and other programs
                                    using department ID and an alternative to
                                    Pay Section must be included in the
                                    modification.

             PHRST Integration      The alternative to Pay Section which is         Modification
                                    ultimately decided may also require
                                    additional modifications regarding
                                    reporting and retrieving historical data.
             PHRST Integration      If the Projects field is to be used in an “as   Modification
                                    delivered” environment, PHRST will have
                                    to redesign the existing Time and Labor
                                    customization to use the delivered Project
                                    field instead of the User Defined fields
             PHRST Integration      Using the delivered HR Account Code             Modification
                                    table will require modifications on pages,
                                    records and custom programs related to
                                    HR Account Code.

             PHRST Integration      Modifications may be eliminated or              Modification
                                    reduced in size if the Payroll Accounting
                                    Transaction is used.




24                                                                    Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       3.2.1 Module Requirements
               As one way of documenting and tracking the scope of the system, the Project
               Team has examined each “leaf-level” function within the menu structure (lowest
               level in the menu hierarchy) of the PeopleSoft Financials modules and has
               identified those that will be used in the implementation. The module
               implementation listing includes:

                   Accounts Payables             Enterprise Portal Packs
                   Accounts Receivable           Expenses
                   Asset Management              General Ledger
                   Billing                       Grants Management
                   Cash Management               Project Costing
                   Contracts                     Purchasing
                   eProcurement

               Note that while the Portals are within the scope of the implementation effort, the
               Project Team has not yet identified specific requirements for the portal. These
               requirements will be developed with the Vendor during the implementation
               phase.

               Based on the module implementation listing, the Project Team identified “In
               Scope” and “Out of Scope” functions within each PeopleSoft module. While in
               the process of conducting this evaluation, focus areas within each module began
               to emerge. The table below is an overview of the scope evaluations for the
               modules and any focus areas within the modules. (For the complete evaluation,
               see the Functional Scope Matrix Appendix 6.)




Technical Requirements Section                                                                 25
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                                              In Scope             Out of Scope
                                                                                       Total
                 Component                Count          %      Count           %      Count
                 Asset Management
                 (AM)                         112        69%         51         31%        163
                 Accounts Payable (AP)        141        78%         39         22%        180
                 Accounts Receivable
                 (AR)                         296        100%         0          0%        296
                 Banking                       62         50%        62         50%        124
                 Billing                       94         97%         3          3%         97
                 Cash Management
                 (CM)                          36        63%         21         37%            57
                 Commitment Control
                 (CC)                          89        100%         0          0%         89
                 Contracts                     76        100%         0          0%         76
                 Customers                     27        100%         0          0%         27
                 Expenses                      96         57%        72         43%        168
                 eProcurement                  17         68%         8         32%         25
                 General Ledger (GL)           97         54%        83         46%        180
                 Grants (GM)                   53         93%         4          7%         57
                 Projects (PC)                115         95%         6          5%        121
                 Purchasing (P)               172         79%        45         21%        217
                 Reporting                      7        100%         0          0%          7
                 Supply Chain                 683         78%       192         22%        875
                 Tree Manager                   9        100%         0          0%          9
                 Vendors                       14         38%        23         62%         37
                                Totals:      2196         78%       609         22%       2805

               The following series provide a summary of each module that further describes
               the information from the above table. The priority level areas have been rolled
               back up into their respective module for the summaries. Each summary includes
               a discussion of the reasons the module has been included within the scope of the
               project. This summary has been broken into the following categories.

               Functional Scope
               This section of the summary provides a description of the portions of the module
               that are in or out of scope as seen in the above chart.

               Process (Specifically Named) in Delaware
               This section of the summary provides an explanation of the way that the State
               organizations currently perform the processes that are related to the specific
               module.

               Existing System and Data Conversion
               This section of the summary provides an explanation of any existing systems
               utilized by the State organizations in order to perform the processes and any
               necessary data conversion that may be necessary within the specific module.




26                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               Organizational Scope and Responsibilities
               This section of the summary provides the number of State organizations that will
               be utilizing the specific module processes. This section also will include an
               estimate of the number of end users that will have access to the functionality.

               Change Impact
               This section of the summary provides a discussion of the change impact that the
               specific module will have on State organizations. An impact scale was utilized to
               rate the impact. A rating of one (1) to five (5) was assigned to each impact. The
               impact rating scale is below:

                   Change Impact Rating Scale
                    Scale Description
                       1     Very Low Impact – A functional impact that meets this design
                             principle would require a minor and cosmetic change; would be easily
                             absorbed by the business; and will encounter little or minimal
                             resistance to this change.
                       2     Low Impact – A functional impact that meets this design principle
                             would involve limited change in a small portion of the State
                             organizations and encounter minimal resistance by a limited number of
                             specific groups.
                       3     Average Impact – A functional impact that meets this design principle
                             would involve significant change in most of the
                             departments/organizations across the State organizations and encounter
                             a manageable resistance by a limited number of specific groups.
                       4     High Impact – A functional impact that meets this design principle
                             would require far-reaching change significantly affecting the jobs and
                             environment for a large portion of staff across most of the State
                             organizations. Changes driven by this principle could take a significant
                             amount of time and effort to manage the implementation and would
                             take significant time to realize the benefits.
                       5     Very High Impact – A functional impact that meets this design
                             principle would be a steep difference from the current process. It
                             would require a change in culture and would significantly affect almost
                             all financial staff. Adhering to this principle could require a great deal
                             of time and effort to manage a successful change and would produce
                             benefits only very gradually after a period of impaired performance.

               Open Issues
               This section of the summary provides a listing of any outstanding open issues
               with the specific module processes. The issues listed in this section are
               considered the most significant issues for each module, not a complete listing of
               all the issues. The State is expecting assistance from the implementation Vendor
               with the resolution of open issues prior to Go-live.

               Modifications
               This section of the summary provides an explanation of any expected
               customization or major modifications for the specific module.

               Minor modifications have not been identified. In addition, the Project Team has
               not examined specific needs for workflow or specific requirements for such
               things as combo edits, speed types and speed charts. It is expected that these



Technical Requirements Section                                                                            27
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               requirements will be identified during the implementation phase as an extension
               of the module configuration activities planned for each module.

               Transaction Crosswalk
               This section of the summary provides an explanation of how existing processes
               performed in legacy systems will be accomplished within the specific module.

               3.2.1.1 Accounts Payable
                         The current accounts payable process is cumbersome and labor
                         intensive. Many users manually type multipart payment voucher forms
                         and then key the data from the form into DFMS. Some organizations
                         use OMS to enable the data to be keyed first and then printed on a
                         financial document form. Navigation in DFMS is cumbersome. The
                         user must know the four character acronym of the table to be accessed
                         in order to get to it. The State has wanted and needed an accounting
                         system that will improve accounts payable productivity. The structure
                         of PeopleSoft’s Accounts Payable module will accomplish this
                         objective.

                         Functional Scope
                         Approximately 78% of the Payables Management menu structure in
                         PeopleSoft Financials version 8.8 will be used in Delaware.
                         Functionality not used relates primarily to tax reporting not required
                         for state government.

                         Payables in Delaware
                         Organizations use DFMS for processing payments – either for direct
                         data entry or through an upload of data. In most instances there is one
                         check for every payment voucher entered into the accounting system.
                         Check consolidation occurs for a limited number of Vendors. On
                         average, 1,400 payments are processed daily. The payables function is
                         currently decentralized. About 31% of the State’s purchases (total
                         dollars spent) reference purchase orders. The remaining 69% of
                         purchases are made without purchase orders. The State calls payments
                         without purchase orders “direct claims.”

                         Existing System and Data Conversion
                         Implementation is planned for the start of the State’s Fiscal Year.
                         Since 1099 issuance and reporting is based on the calendar year,
                         Vendor and payment data from DFMS for the first half of the calendar
                         year must be combined with PeopleSoft data for the remainder of the
                         year to enable 1099 processing.

                         The State processed about 400,000 payment vouchers in Fiscal Year
                         2005. These vouchers represent over 700,000 transaction lines and
                         close to $4 billion. The State does not plan to convert any payment
                         vouchers from the current system to PeopleSoft Financials when
                         implemented.

                         Organizational Scope and Responsibilities


28                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         It is expected that all 338 departments will use the Accounts Payable
                         module. Interfaces will be developed to enable data retrieval from
                         internal systems. For example, a service organization will extract
                         required payment data from their internal client-based system and
                         interface with PeopleSoft’s Accounts Payable module for payment.

                         The State’s original plan for the State’s Accounts Payable module was
                         to implement centrally approved payables with data entry staff
                         geographically disbursed. However, the final decision on centralized
                         or decentralized payables will be made following review of this issue
                         by the implementation Vendor.

                         If the payables function is centralized, there will be approximately 40
                         end users fully trained in the Accounts Payable process, including
                         processing vouchers. Approximately 700 other Accounts Payable end
                         users will be trained to create Vendors, process journal vouchers, and
                         utilize inquiry and reporting. If the Accounts Payable function is
                         decentralized, those 700 end users will be trained to create Vendors,
                         and process journal vouchers, utilize inquiry and reporting, and process
                         vouchers.

                         Change Impacts
                         The PeopleSoft Accounts Payable module will have process changes in
                         the following areas. A rating of one (1) to five (5) has been assigned to
                         each, with five (5) indicating an extremely significant impact and one
                         (1) indicating little or no impact.
                           • Unique Invoice Numbers (4): Delaware’s accounting system
                                issues a warning when an invoice number is duplicated on a
                                payment voucher, but will allow the payment voucher to process.
                                A unique invoice number and date combination is required on
                                PeopleSoft vouchers.
                           • Vendors on Journal Vouchers (4): The current expenditure
                                correction process does not require a Vendor on every
                                transaction. The PeopleSoft Accounts Payable Journal Voucher
                                requires a Vendor on every transaction.

                         Open Issues
                           •     The final decision of whether to have centralized or
                                 decentralized payables has not been made: Based on feedback
                                 received during the Request for Information (RFI) process, it
                                 now appears that maintenance of the State’s currently
                                 decentralized structure will be the most advantageous. This
                                 decision will be made with the advice of the implementation
                                 Vendor.




Technical Requirements Section                                                                 29
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                           •   Delaware’s current accounting system requires the Vendor on a
                               payment voucher to match the Vendor on the PO when
                               referenced: In PeopleSoft, a voucher can reference a PO, and the
                               Vendor on the voucher does not have to match the Vendor on the
                               PO. While this flexibility in PeopleSoft would resolve the open-
                               order PO issue, it could create other problems. The State would
                               prefer to require the Vendor to match in most cases, and have the
                               flexibility to make exceptions for open-order PO’s.

                         Modifications
                           •   If the decision is made to print checks from PeopleSoft, the
                               PeopleSoft check will have to be modified to meet the State’s
                               requirements. The State’s current check with advice includes the
                               following: State seal, State name and address, issuing bank and
                               bank address, check date, check number, total dollar amount of
                               check, Vendor invoice number(s), payment voucher number(s),
                               paying organization name(s), organization phone number(s), and
                               dollar amount detail for each voucher paid.
                           •   A potential customization or possible interface may be required
                               to process the State’s 1099’s. A mechanism is required to
                               include additional 1099 reportable data in with the Payables
                               process to produce a single 1099 per vendor from the State. The
                               additional data comes from accounts outside of the State’s
                               accounting system, such as petty cash, school activity accounts,
                               and correctional inmate accounts.

                         Transaction Crosswalk
                         The following table shows document process data for Fiscal Year 2005
                         and the crosswalk to PeopleSoft. The data shows the number of
                         documents processed, the document name and definition, and the
                         PeopleSoft module and transaction that will be used in the future.




30                                                              Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                   Docs      Status          DFMS                                       PeopleSoft
                   408,041   Recommended     PV - Payment Voucher
                                             Initiates the Vendor payment process.      Accounts
                                             A PV will not be processed if it would     Payable –
                                             cause total expenditures to exceed the     Payment
                                             encumbrance. The PV is also used to        Voucher
                                             pay direct claims.
                             Recommended     EX - Expenditure Correction
                                             Used to adjust expenditure information,    Accounts
                                             such as object code or appropriation but   Payable –
                                             not the amount, after it has been          Journal
                                             entered into DFMS. The original            Voucher
                                             information may have been generated
                                             by a Payment Voucher (PV), Manual
                                             Warrant (MW) or the Buyer portion of
                                             an Intergovernmental Voucher (IV). If
                                             the amount is to be adjusted, this must
                                             be done as a direct claim though a PV,
                                             if there was an underpayment, or as a
                                             Cash Receipt (CR) if there was an
                                             overpayment.
                       146   Recommended     CX - Check Cancellation
                                             Used by the Division of Accounting.        AP –
                                             To cancel or void state Vendor checks.     Payment
                                             This form can be used to either rewrite    Cancellation
                                             a new check with no entry shown in the     .
                                             organization appropriation account or
                                             to reduce the organization
                                             appropriation account expenditures by
                                             the amount of the canceled check.

               3.2.1.2 Asset Management
                         The State of Delaware has a significant investment in fixed assets such
                         as land, land improvements, buildings, machinery, equipment and
                         infrastructure. The State will use the PeopleSoft Asset Management
                         module to improve financial reporting, accountability and operational
                         efficiencies for managing these assets. In addition, establishment of a
                         centralized asset management unit will address past problems of
                         timeliness, accuracy and completeness of asset information.

                         Functional Scope
                         Approximately 69% of the Asset Management menu structure in
                         PeopleSoft Financials version 8.8 will be used by the State.
                         Functionality not used relates primarily to transactions associated with
                         asset management in non-US countries, tax reporting not required for
                         state government, electronic loading or import of assets (following
                         conversion), and capital acquisition planning.

                         Assets in Delaware
                         All Delaware organizations are required to use the fixed asset
                         capitalization thresholds established by asset classification as follows:



Technical Requirements Section                                                                      31
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                             Asset Classification        Minimum Fixed Asset Capitalization
                                                         Threshold
                             Buildings                   No minimum—all buildings will be
                                                         reported
                             Building Improvements       > $100,000
                             Construction Work in        > $100,000
                             Progress
                             Easements                   No minimum—all agriculture easements
                                                         will be capitalized.
                             Infrastructure              > $1,000,000
                             Land                        No minimum—all land is reported
                             Land Improvements           > $100,000
                             Leased Assets               Applies only to lease purchase if the State
                                                         takes ownership.
                             Leasehold Improvement       > $100,000
                             Software                    > $1,000,000 after July 1, 2005 (Not
                                                         capitalized prior to July 1, 2005)
                             Vehicles, Furniture and     > $15,000, prior to July 1, 2004, >
                             Equipment                   $25,000, effective July 1, 2004

                         In addition to fixed assets, organizations are encouraged to maintain
                         property listings of “Public Appeal” and other non-fixed asset items for
                         the purpose of safeguarding these items against loss or misuse. The
                         federal threshold for fixed asset capitalization is $5,000.

                         Existing System and Data Conversion
                         The State’s existing asset management database is used by 191
                         departments, excluding the Delaware Department of Transportation
                         and Delaware State University, which maintain independent asset
                         management systems. The State’s database contains approximately
                         6,000 items that meet the fixed asset definition and approximately
                         14,000 non-fixed assets (inventory items). During Fiscal Year 2005,
                         approximately 785 items were added to the State’s asset management
                         system representing over $86 million dollars.

                         The Delaware Department of Transportation’s database contains
                         approximately 9,500 items representing $3.5 billion in assets. All
                         items in the fixed asset systems of the State and the Delaware
                         Department of Transportation on the date of implementation will be
                         converted to the new system. The Delaware State University will
                         continue to maintain their own independent asset management system.

                         Organizational Scope and Responsibilities
                         It is expected that the 191 Departments using the existing system will
                         form the user base for the Asset Management module. In conjunction
                         with the implementation of PeopleSoft Financials, a Fixed Asset Unit
                         will be established and charged with the maintenance and operation of
                         the Asset Management module. This unit will work with organizations
                         across the State to record and maintain the State’s fixed assets.

                         It is expected that approximately 100 end users within the State will
                         utilize the Asset Management module for the tracking of the


32                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         approximately 14,000 non-fixed assets (inventory items) and to assist
                         the centralized Fixed Asset Unit which will consist of three end users.

                         Change Impact
                         The PeopleSoft Asset Management module will have a process change
                         in the following area that affects asset management. A rating of one (1)
                         to five (5) has been assigned to each, with five (5) indicating an
                         extremely significant impact and one (1) indicating little or no impact.

                           •     Centralized Asset Management (3): State organizations are
                                 primarily responsible for maintaining fixed assets acquired by
                                 their organization; however, due to past problems of timeliness,
                                 accuracy and completeness of asset information being reported,
                                 the State of Delaware has approved the establishment of a
                                 centralized asset management unit. This unit will be responsible
                                 for the day to day maintenance of fixed assets acquired by State
                                 organizations which meets the State’s financial reporting
                                 threshold. Lines of communication will need to be established
                                 with the various organizations in order to obtain the necessary
                                 information needed to track the State’s assets.

                         Open Issues
                          • It has not yet been determined how assets purchased with the
                             State’s purchasing card will be identified as an item that should
                             be capitalized based on the State’s reporting threshold:
                             Currently, the Division of Accounting pays the State’s
                             purchasing card Vendor for all charges made by the State
                             organizations. The organizations then reimburse the Division of
                             Accounting via an Intergovernmental Voucher (IV) document.
                             One IV document may represent multiple purchases of which
                             some items should be capitalized. There is no way of
                             determining from the IV which transactions represent costs that
                             should be added to the State’s fixed asset system. It has not yet
                             been determined how this information will be captured in
                             PeopleSoft by the centralized asset management unit.

                         Modifications
                         At this point, there have been no modifications identified for the Asset
                         Management module.




Technical Requirements Section                                                                 33
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         Transaction Crosswalk
                         The following table shows functional document process data for Fiscal
                         Year 2005 and the crosswalk to PeopleSoft. The data shows the
                         amount of documents processed, the document name and definition,
                         and what module will perform the function in the future.

                       Docs           Status        DFMS                             PeopleSoft
                              1,250   Recommended   FA – Fixed Asset                 Asset
                                                    Used to establish a new fixed    Management –
                                                    asset in the system.             Basic or
                                                                                     Express Add
                                      Recommended   FB – Asset Betterment            Asset
                                                    Adds betterment (such as a       Management
                                                    building addition) to an
                                                    existing asset.

                                      Recommended   FT – Asset Transfer              Asset
                                                    Used to transfer an asset from   Management
                                                    one budget unit to another.

                                      Recommended   FD – Asset Disposal              Asset
                                                    Used to record the disposal of   Management
                                                    an asset (sold, destroyed,
                                                    stolen, etc.)


               3.2.1.3 Billing and Accounts Receivable
                         Accounts receivable in the State is decentralized and largely supported
                         by systems meeting the specific accounts receivable needs of
                         specialized programs. The State will use the PeopleSoft Billing and
                         Accounts Receivable modules to improve financial reporting,
                         accountability and operational efficiencies for those organizations that
                         want to take full advantage of a stand alone financial system for their
                         billing and accounts receivables. If organizations do not want to
                         replace their existing systems, the data will have to be manually
                         entered or interfaced into PeopleSoft Financials.

                         Functional Scope
                         Approximately 98% of the functionality of the Billing and Accounts
                         Receivable menu structure in PeopleSoft Financials version 8.8 will be
                         used by those organizations that take advantage of these modules.
                         Functionality not used relates primarily to transactions associated with
                         billing and tax reporting not required for state government.

                         Billing and Accounts Receivable in Delaware
                         Accounts receivable reported for CAFR purposes totaled
                         approximately $1.6 billion in Fiscal Year 2004. This number includes
                         Governmental Activities, Business-type Activities, Component Units,
                         Deferred Revenues, and Intergovernmental Due From/Due to Other
                         Funds.




34                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         In addition to systematic billing and receivables there are a number of
                         organizations that generate billing and receivables as a result of
                         spontaneous purchases of goods or services. In either case, the
                         receivables generated are either deposited to the General Fund or are
                         recorded as an increase to specific revenue accounts.

                         Currently, daily cash deposits made by organizations are manually
                         entered into the legacy system and then matched to the bank files for
                         reconciliation. It is the intention of the state to utilize the Billing and
                         Accounts Receivable modules for verification and reconciliation of
                         daily deposits.

                         Existing System and Data Conversion
                         The State’s current cash basis reporting requires summary-level
                         receivables information for GAAP reporting and CAFR preparation.
                         Therefore, projections of current systems and data conversions are not
                         available. However, organizations that take full advantage of Billing
                         and Accounts Receivables modules may have data conversion needs if
                         they are replacing legacy systems.

                         Organizational Scope and Responsibilities
                         It is expected that the 87 departments reporting receivables for CAFR
                         purposes will form the user base for Billing and Accounts Receivable.
                         However, this number does not capture organizations that collect less
                         than $100,000.

                         Organizational use of the Billing and Accounts Receivable modules
                         can be classified in five ways:

                           A. The organization does not invoice or receive any type of revenue
                              including intrastate revenue (recorded on intergovernmental
                              vouchers, IV’s). They do not process cash receipts (CR’s).
                           B. The organization processes CR documents and IV’s only.
                           C. The organization processes invoices and accounts receivables
                              and will take advantage of the full functionality of the Billing
                              and Accounts Receivables modules.
                           D. The organization has a legacy system that will interface with
                              PeopleSoft Accounts Receivable for CAFR reporting. In other
                              words, the organization will submit accounts receivable
                              information when needed during the CAFR process.
                           E. The organization has a legacy billing system that will interface
                              with PeopleSoft Accounts Receivable at the transaction level.
                              Each bill and bill payment will be recorded in PeopleSoft
                              through an interface.

                         An effort is currently underway to survey State organizations and
                         identify which ones fall into each usage category. So far, 248
                         PeopleSoft Departments have reported, classifying 458 programs for
                         Billing and Accounts Receivable purposes. Of this 458, only 12 will
                         not be using functionality of Billing and Accounts Receivable
                         (Category A). Additionally, 227 (50%) will use the system only to


Technical Requirements Section                                                                     35
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         record revenues (B); 174 (38%) expect to use the full Billing and
                         Accounts Receivable functionality of PeopleSoft Financials (C) and 42
                         (9%) expect to interface at a summary level for CAFR purposes (D).
                         There are 3 programs planned to interface at the transaction level.

                         Based on projected Training Plan number it is expected that there will
                         be approximately 500 end users within all 338 Departments that will
                         utilize the Billing and Accounts Receivable modules. These numbers
                         take into account miscellaneous cash receipts (refer to Cash
                         Management section) and actual receivables resulting from the billing
                         processes.

                         Change Impacts
                         The PeopleSoft Billing and Accounts Receivable modules will have
                         process changes in the following areas. A rating of one (1) to five (5)
                         has been assigned to each, with five (5) indicating an extremely
                         significant impact and one (1) indicating little or no impact.
                           • Cash Deposits (3): Recording cash deposits in the Accounts
                                Receivable module will eliminate the current paper process and
                                various silo systems that are maintained today within
                                organizations for audit tracking purposes.
                           • Customer Table (3): Customer information will be maintained
                                in the Customer Table. New customers and updated information
                                will need to be managed by the organizations and their specific
                                programs.
                           • Employee Table (2): Employee data for billing and receivables
                                purposes will need to be entered and maintained in the Employee
                                Table. The management of this table will rely mainly on the
                                number of General Ledger Business Units.
                           • Billing (2): Billing information that includes item information,
                                billing cycles and any penalties will be setup during
                                configuration. This information, in most cases, is maintained in
                                manual files for organizations that have large volume systems.

                         Open Issues
                          • Intergovernmental Voucher (IV) State Solution: Internal
                             payments within the State range from one organization paying
                             another for room rental, to another organization generating
                             several hundred IV’s for telephone services. The IV document is
                             used to process the internal payments and contain buyer and
                             seller information. This document is utilized to reference a PO
                             and can be used to post revenue or reduce expenditures between
                             the organizations. The solution should not require excessive
                             Business Units and the journal entry may be the only place to
                             process this document within PeopleSoft Financials.
                          • Zero Balance Cash Receipts (CR): PeopleSoft does not appear
                             to have a replacement transaction for zero balance CR’s. In
                             DFMS, zero balance CR’s are used to reallocate income from
                             one or more appropriations to another. It is used much like an
                             Expenditure Adjustment (EX) document in the Accounts



36                                                              Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                 Payable module to make corrections for revenue that was
                                 credited to the wrong appropriation. We have not yet
                                 determined how PeopleSoft will record these corrections and
                                 reallocations.

                           Modifications
                            • The IV solution may require a modification (as yet unspecified).

                           Transaction Crosswalk
                           The following table shows document process data for Fiscal Year 2005
                           and the crosswalk to PeopleSoft. The data shows the number of
                           documents processed, the document name and definition, and the
                           PeopleSoft module and transaction that will be used in the future.

                          Docs   Status         DFMS                                  PeopleSoft
                       47,921*   Recommended    CR - Report of Cash Receipts
                                                Used to report and record the         Accounts
                                                receipt of revenues and other funds   Receivable –
                                                by authorized representatives of      Payment
                                                the State.                            Accounts
                                                                                      Receivable –
                                                                                      Direct Journal
                                                                                      Entry

                                 Recommended    Negative CR
                                                Used for bank adjustments (minus      Accounts
                                                bad check charges), such as for       Receivable –
                                                deposited items returned.             Payment
                                                                                      Accounts
                                                                                      Receivable –
                                                                                      Direct Journal
                                                                                      Entry

                                 Unknown        Zero Balance CR
                                                Used for a variety of purposes        Open Issue
                                                similar to the EX. Uses include
                                                correcting previously entered
                                                deposits applied to wrong
                                                distribution, reallocation of
                                                receipts, and correcting expense
                                                entries.

                           *CR’s today usually represent multiple deposits. In PeopleSoft, each
                           deposit will be recorded as one transaction. It is projected that the
                           number of transactions to record Accounts Receivable and deposits
                           will increase significantly.

               3.2.1.4 Cash Management
                           Cash management functions are currently completed with a
                           combination of banking products and third party software solutions
                           with no reliance on DFMS to manage the daily cash position. With the
                           implementation of PeopleSoft the State is expecting to utilize many of



Technical Requirements Section                                                                     37
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         the delivered features and processes to improve cash flow forecasting,
                         receipt and disbursement processing, and to research transactions.

                         Functional Scope
                         Approximately 63% of the Cash Management menu structure in
                         PeopleSoft Financials version 8.8 will be used by the State.
                         Functionality not used relates primarily to Deal Management and Bi-
                         Lateral Netting.

                         Cash Management in Delaware
                         The Office of the State Treasurer (OST) is primarily responsible for the
                         daily management of the State’s cash. As a result, most of the Cash
                         Management module users will be housed within the Office of the
                         State Treasurer (currently 25 employees).

                         The majority of the State’s receipts and disbursements are handled
                         with three banking relationships. Separate relationships exist for the
                         management of the investment portfolios. The State uses just one of
                         the investment relationships to handle the short term portfolio which is
                         used to fund its daily cash flow needs.

                         The Department of Transportation is expected to include
                         approximately $441 Million in 70 accounts related to the
                         Transportation Trust Fund in PeopleSoft Financials. The Department
                         of Transportation expects to use PeopleSoft to load the electronic bank
                         statement and complete an automated bank reconciliation for the 70
                         accounts.

                         Existing System and Data Conversion
                         Much of the State’s cash management function is accomplished
                         through the use of products and services offered by its banks. The
                         State uses online and web-based reporting from each of its three major
                         banking partners as well as other banking products such as Positive
                         Pay Verifications, Zero Balance Controlled Disbursement Accounts,
                         Automated Clearing House (ACH) – Electronic Funds Transfer (EFT)
                         payments, Web-based Wire Transfer initiation and authorization, ACH
                         deposit reporting services, and Cash Concentration services. The State
                         expects to continue its use of many of these banking products and
                         services after the implementation. The State also uses third party
                         software to assist in the reconciliation of bank accounts and in the
                         production of check and ACH disbursements. At this time it is unclear
                         what role, if any, these two software programs will play after the
                         implementation.

                         Listed below are the annual transaction volumes for State of Delaware
                         disbursement and collection activities in Fiscal Year 2005. The
                         transaction volumes are expressed in thousands of transactions and
                         millions of dollars.




38                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                             Disbursement                   Transactions        Total Amount
                             Transaction Types              (Thousands)            (Millions)
                              Checks Issued                      719.7            $3,200.0
                              Direct Deposit                   1,500.0            $1,400.0
                              PCard Transactions                 105.0               $65.3
                              ACH Payments                        21.0            $1,700.0

                             Collection                     Transactions        Total Amount
                             Transaction Types              (Thousands)            (Millions)
                              Deposits                           61.0            $ 1,600.0
                              ACH Receipts                        4.4            $ 1,800.0
                              Credit Card Sales                 259.0                $80.3

                         Organizational Scope and Responsibilities
                         The State expects that the Office of State Treasurer will continue to
                         provide the majority of the cash management for the State and that a
                         few other organizations will use some portions of the Cash
                         Management module to manage funds under their control. These
                         additional organizations may only use the statement loading and
                         automated reconciliation features or may also use the cash forecasting
                         and wire transfer initiation features of the Cash Management module.

                         In addition, several organizations currently maintain various minor and
                         petty cash checking accounts (there are approximately 300 of these
                         accounts). While the State intends to eliminate as many of these minor
                         checking accounts as possible, it is likely that many of these accounts
                         will still be used by various State organizations. It is also likely that
                         the transaction activity associated with most of these accounts will not
                         be recorded in PeopleSoft. Many organizations will use PC based
                         software to maintain these accounts and record summary entries in
                         PeopleSoft periodically or during the 13th month for statement
                         purposes.

                         Change Impacts
                         The implementation of PeopleSoft will bring many changes to the
                         Cash Management operations of the State. Some of the most
                         significant changes are as follows. A rating of one (1) to five (5) has
                         been assigned to each, with five (5) indicating an extremely significant
                         impact and one (1) indicating little or no impact.
                           • More Complex Tool for Setting Cash Position (2): It is
                                anticipated that once PeopleSoft Financials is fully implemented,
                                the State will determine the Daily Cash Position using Cash
                                Position Worksheets within PeopleSoft. These worksheets will
                                draw on information in the accounting system from the Accounts
                                Receivable and Accounts Payable modules as well as from
                                current day banking files (Bank Administration Institute (BAI))
                                files that are loaded into PeopleSoft and manual entries to
                                determine the projected collected balances at the end of each day
                                in each account.



Technical Requirements Section                                                                  39
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                           •   Daily Upload of Banking Files (1): The State will be uploading a
                               detail file of previous day bank transactions (BAI file) for each
                               major account on a daily basis. This file will be processed in the
                               PeopleSoft system and will automatically reconcile the bank and
                               system transactions. Currently files are typically uploaded on a
                               regular basis but not necessarily daily. It will be more important
                               that files are uploaded each day in PeopleSoft.
                           •   Daily Update of Paid Checks (1): The daily loading and
                               processing of the banking files will result in daily updates to
                               checks paid so that from PeopleSoft Financials, users in
                               organizations can determine if the check issued for a payment
                               has been cashed simply by looking it up in the system rather than
                               by calling the Office of State Treasurer who would look it up on
                               the bank website. This change has virtually no negative impact
                               but can result in many fewer calls to the Office of State
                               Treasurer and better information for State organizations that can
                               check on payment status directly in the system.
                           •   Increased Number of Deposit Transaction to Record (3): The
                               organizations that make deposits to the State’s general accounts
                               will be responsible for recording the deposit detail in the
                               accounting system. In DFMS the depositing organizations often
                               summarize groups of deposits together in their accounting entries
                               and the Office of State Treasurer enters the deposit detail into a
                               separate database used in the reconciliation process. Even
                               though the number of transactions will increase, the overall
                               effort required to record each transaction is less than with
                               DFMS. Furthermore, an identified customization could
                               eliminate or substantially reduce the need to manually enter
                               miscellaneous receipts in PeopleSoft.

                         Open Issues
                         There are a number of open issues involving the Cash Management
                         module and the Office of State Treasurer which remain unresolved.
                         The most significant issues are:
                          • Printing of State Checks: Currently many of the checks issued
                              by the State and by State organizations are printed in the Office
                              of State Treasurer. The Office of the State Treasurer uses third
                              party software from BottomLine Technologies to print checks. It
                              has not yet been determined what, if any, role this third party
                              software will play in producing State checks in the future.
                              Furthermore it is not certain that the printing of State checks will
                              continue in the Office of State Treasurer. It is possible that the
                              printing function will be conducted by another State organization
                              or outsourced to a third party.
                          • Reconciliation Software: The State currently uses a third party
                              software product to reconcile the major bank accounts. It has not
                              yet been determined if all the bank accounts used by the state
                              will be reconciled with the bank reconciliation features of
                              PeopleSoft. It is likely those features will be used for any




40                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                 account where the transaction detail is maintained in PeopleSoft
                                 Financials.
                           •     Zero Balance Cash Receipts (CR): PeopleSoft does not appear
                                 to have a replacement transaction for zero balance CR’s. In
                                 DFMS, zero balance CR’s are used to reallocate income from
                                 one or more appropriations to another. It is used much like an
                                 Expenditure Adjustment (EX) document in the Accounts
                                 Payable module to make corrections for revenue that was
                                 credited to the wrong appropriation. We have not yet
                                 determined how PeopleSoft will record these corrections and
                                 reallocations.
                           •     A Number of Accounts Maintained Outside of the Existing
                                 Accounting System (DFMS) will be included in the
                                 Implementation of PeopleSoft Financials: Of the 300 accounts
                                 outside of DFMS, more than 100 accounts from approximately
                                 12 State organizations need to be reviewed for possible inclusion
                                 in the implementation. The State will determine which accounts
                                 can remain outside of PeopleSoft Financials. The accounts to be
                                 included in PeopleSoft will likely need varying degrees of Cash
                                 Management module functionality ranging from periodic
                                 summary entries and manual reconciliation to daily bank file
                                 loads and automated bank reconciliation.

                         Modifications
                         Currently two modifications have been identified as required for the
                         Cash Management module. The first one concerns the automatic bank
                         reconciliation feature. The State has been told that as delivered the
                         bank reconciliation process cannot automatically reconcile items that
                         are not unique in date, amount and reference number. Since the Office
                         of State Treasurer reconciles all the Statewide miscellaneous deposit
                         activity for all the organizations, it is likely the exact dollar amount for
                         the same reference number (for most miscellaneous deposits the State’s
                         reference numbers identify the depositing organization) will have the
                         same date. To semi-manually reconcile all these transactions is not
                         acceptable. The bank reconciliation process must be modified to
                         automatically reconcile items based on date, amount and reference
                         even if they are not unique.

                         The second modification is technically in the Accounts Receivable
                         (AR) module. It involves the selection of directly journalled AR
                         entries for processing and posting to the General Ledger. The selection
                         criteria must be changed so that only miscellaneous receipts that have
                         been reconciled with a bank deposit can be posted. This will insure
                         that no deposit transaction can be posted until it has been processed by
                         the bank. The Office of State Treasurer is responsible for validating
                         that the deposit is recorded at the bank before approving the General
                         Ledger entry that records it. Since the Office of State Treasurer will
                         load the file from the bank and validates that the State was credited for
                         all the deposits in the file, every miscellaneous receipt transaction
                         recorded that matches an entry on the file is approved for posting to the



Technical Requirements Section                                                                   41
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                           General Ledger and every transaction that does not match a bank
                           deposit is not approved.

                           A customization has also been identified which could significantly
                           reduce the data entry effort associated with miscellaneous receipts in
                           PeopleSoft. This customization would include a separate table in
                           PeopleSoft to relate Deposit Business Units to State Issued Payment ID
                           numbers. The Daily BAI file could be used with this Payment ID table
                           to create the miscellaneous receipt transactions, in the appropriate
                           transaction interface format, to be loaded into PeopleSoft Financials.

                           Transactions Crosswalk
                           The following table shows functional document process data for Fiscal
                           Year 2005 and the crosswalk to PeopleSoft. The data shows the
                           amount of documents processed, the document name and definition
                           and what module will perform the function in the future.

                           It is important to note that in DFMS, deposit transactions are often
                           grouped together so that one transaction may represent multiple bank
                           deposits. The approximately 50,000 CR transactions in DFMS could
                           easily equate to as many as 150,000 to 200,000 miscellaneous receipts
                           in PeopleSoft.

                       Docs     Status        DFMS                               PeopleSoft
                       47,921   Recommended   CR - Report of Cash Receipts
                                              Used to report and record the      Accounts
                                              receipt of revenues and other      Receivable –
                                              funds by authorized                Payment
                                              representatives of the State.      Accounts
                                                                                 Receivable –
                                                                                 Direct Journal
                                                                                 Entry

                                Recommended   Negative CR
                                              Used for bank adjustments          Accounts
                                              (minus bad check charges), such    Receivable –
                                              as for deposited items returned.   Payment
                                                                                 Accounts
                                                                                 Receivable –
                                                                                 Direct Journal
                                                                                 Entry

                                Unknown       Zero Balance CR
                                              Used for a variety of purposes     Open Issue
                                              similar to the EX. Uses to
                                              include correcting previously
                                              entered deposits applied to
                                              wrong distribution, reallocation
                                              of receipts, and correcting
                                              expense entries.




42                                                                  Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               3.2.1.5 Commitment Control
                         The State of Delaware will be using PeopleSoft's Commitment Control
                         function to continue controlling disbursements from its General and
                         Appropriated Special Funds so they do not exceed appropriation limits
                         set in law. Commitment Control will also be configured in the Project
                         Costing and Grants modules to control the spending of non-
                         appropriated special funds (e.g., bond proceeds and federal grant
                         awards, respectively). Although part of the General Ledger,
                         Commitment Control has been analyzed separately because of its
                         importance to the State.

                         Functional Scope
                         One hundred percent of the functionality of the Commitment Control
                         menu structure in PeopleSoft Financials version 8.8 will be used by the
                         State. This functionality enables the State to define operating budget
                         parameters, upload operating budget data, track and check budget
                         expenditures from requisition through payment, manage budget
                         exceptions, conduct year-end closing of budgets and download data on
                         actual expenditures.

                         Disbursements Control in Delaware
                         All organizations are required to use the Commitment Control function
                         to budget check expenditures. All disbursements from the General
                         Fund and Appropriated Special Funds must be authorized by
                         appropriations from the General Assembly. These disbursements are
                         currently controlled by the DFMS encumbrance system that provides
                         actual information on the extent of the State’s obligations and guards
                         against over-committing available funds. The State will use
                         PeopleSoft’s General Ledger Commitment Control function to
                         continue controlling disbursements from these funds so they do not
                         exceed appropriation limits. In addition, Commitment Control will
                         house the State’s final operating budget information which will be
                         uploaded from BDIS and actual expenditure data will be downloaded
                         from PeopleSoft.

                         Existing System and Data Conversion
                         The State’s existing Commitment Control functions are through
                         DFMS, and are used by all State government entities (338 departments
                         including the Delaware Department of Transportation, Delaware State
                         University, and 19 local school districts and 13 active charter schools).

                         In addition to disbursements control and the initial budget uploads and
                         downloads, Commitment Control will be used by organizations to
                         manage their budgets. The primary processes/documents used by
                         organizations to manage budgets during the Fiscal Year are the
                         Transfer of Appropriations (TA) for General Funds and the
                         Appropriation Adjustment (AA) for [Appropriated] Special Funds.
                         During Fiscal Year 2005, there were 803 TAs processed, this
                         represents 7,042 transactions (lines of coding). Because debits equal
                         credits the total net dollars in these transactions is zero. In Fiscal Year



Technical Requirements Section                                                                   43
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         2005, 8,638 AAs were processed, representing 53,002 transactions
                         (lines of coding) and $3,396,922,865 net dollars.

                         Organizational Scope and Responsibilities
                         It is expected that all organizations using DFMS will form the user
                         base for the Commitment Control function. In conjunction with the
                         implementation of PeopleSoft Financials, it is anticipated that the
                         Office of Management and Budget will define the budget parameters,
                         configure Commitment Control and handle the uploads and downloads
                         of data into BDIS. All organizations are expected to “budget check”
                         their transactions relating to the payment of expenses and collection of
                         revenues.

                         Preliminary estimates indicate there will be approximately 400 end-
                         users managing budgets through Commitment Control. Of this
                         number, approximately 40 will be addressing the creation and
                         modification (supplemental loads) of budgets; approving transfers and
                         appropriation adjustments; and other specialized functions in
                         Commitment Control.

                         Change Impact
                         PeopleSoft’s Commitment Control function will create process
                         changes in the following areas. A rating of one (1) to five (5) has been
                         assigned to each, with five (5) indicating an extremely significant
                         impact and one (1) indicating little or no impact.

                           •   Budget Checking Transactions (3): Currently, DFMS
                               automatically checks encumbrances and disbursements to
                               determine if funds are available to complete them; if insufficient
                               funds are available transactions are stopped. With the
                               implementation of Commitment Control, fiscal staff will be
                               manually budget checking requisitions (pre-encumbrance),
                               purchase orders (encumbrance), and payment vouchers
                               (expenditure). Similar checks would be made in Commitment
                               Control for the collection of revenues (for budgeted, collected
                               and recognized revenues).
                           •   Set Up and Use of Appropriated and Non-Appropriated Special
                               Funds Budgets and Transactions (3): In DFMS the association
                               of specific revenue sources to specific expenditures, whether
                               one-to-one or pooled, is largely a manual process (employees
                               select the object/revenue codes that associate specific revenues
                               with specific encumbrances or expenditures). In Commitment
                               Control, these associations are structurally created within parent
                               and child budget definitions for specific business units when the
                               budget is established during the configuration process.
                               Essentially, these associations become “automatic” and are not
                               subject to change during the Fiscal Year.
                           •   Fiscal Year End Closing (3): Currently, DFMS allows the
                               continuation of current Fiscal Year funds into future Fiscal Years
                               (mainly a matter of changing end dates). PeopleSoft is not set up



44                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                 to roll funds into subsequent Fiscal Years—it can be done, but it
                                 can be very complicated (between close and withdrawal
                                 processes). The State will need to learn the new closing process
                                 using Commitment Control.

                         Open Issues
                          • Configuration: How can Commitment Control be configured to
                             maximize the inclusion of the varying requirements of different
                             organizations, fund types, budgets, budgetary control and
                             transaction types? This includes configuration for General
                             Funds (for most departments) and special funds (the “revenue
                             increasing” budgets that associate specific revenues with specific
                             expenditures). Commitment Control is also to be set up for
                             projects and grants (in these respective modules). RFI responses
                             have also identified the configuration of Commitment Control to
                             be crucial in assuring the proper set up for the cash budget and
                             modified accrual accounting.
                          • Accommodating Different Levels of Budgetary Control: What
                             level of budgetary control should be accommodated within the
                             PeopleSoft Financials application, the current Appropriation
                             Unit (APU) / Internal Program Unit (IPU) level used by most
                             organizations or the lower Internal Budget Unit (IBU) / Micro
                             Budget Unit (MBU) level used by a few organizations?
                             Commitment Control budgetary control rules are applied to all
                             entities within a business unit—different levels of control cannot
                             be applied within a given business unit.

                         Modifications
                         No modifications have been identified for Commitment Control at this
                         time.




Technical Requirements Section                                                                 45
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         Transaction Crosswalk
                         The following table shows functional document process data for Fiscal
                         Year 2005 and the crosswalk to PeopleSoft. The data shows the
                         amount of documents processed, the document name and definition
                         and what module will perform the function in the future.

                       Docs    Status         DFMS                                   PeopleSoft
                       8,638   Recommended    AA – Appropriation Adjustment
                                              Initiated by the Budget Office, it     General Ledger
                                              establishes, for the State's General   – Budget
                                              Fund and Appropriated Special          Journal Entry
                                              Funds, the appropriated amounts        General Ledger
                                              by department code, upon signing       – Commitment
                                              into law of the Budget Act or          Control
                                              Supplemental Appropriations by
                                              the Governor. It is also used to
                                              modify and deactivate an
                                              appropriation. However, an AA
                                              form need not be completed for the
                                              initial entries which are taken from
                                              the Budget Act.
                        803    Recommended    TA - Request for Transfer
                                              Submitted by an organization to        General Ledger
                                              the Budget Office and the              – Budget
                                              Controller General, it requests a      Journal
                                              transfer of an appropriation or a      Voucher
                                              Special Fund balance from one
                                              organization to another
                                              organization or from one unit to
                                              another within an organization and
                                              from one line to another.




46                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



               3.2.1.6 Contracts
                         The State of Delaware will be using both the Grants Management and
                         Project Costing modules, which are designed to easily interface with
                         and leverage selected functionality of the Contracts module. At its
                         core, Contracts serves as the basis for Grants Management in
                         PeopleSoft. In fact, to establish a PeopleSoft Grants Management
                         business unit, a PeopleSoft Contracts business unit must be set up first.

                         PeopleSoft Contracts was created to facilitate the efficient and
                         effective execution of long-term revenue-generating contracts for
                         products and services. It will allow the State to capture contractual
                         terms and conditions related to grants and projects, choose when and
                         how much to bill, recognize revenue in a manner that makes sense for
                         particular business needs, track milestones, and manage changes to
                         contracts through amendment processing. It plays a critical role in
                         acting as the conduit for developing and creating through Billing and
                         Accounts Receivable module the amounts organizations will be
                         eligible to recover for federal indirect cost recovery.

                         Functional Scope
                         The Contracts module will be limited to what is required to support the
                         Grants and Project Costing modules. One hundred percent of the
                         functionality of the Contracts menu structure in PeopleSoft Financials
                         version 8.8 is proposed to be used by the State. Use of the
                         functionality will be initiated in either the Grants Management or
                         Project Costing modules.

                         Contracts in Delaware
                         The system automatically generates a contract in the Grants
                         Management module when the award generation process is run in
                         PeopleSoft Grants. This contract represents the funded award and is
                         required for processing any transaction against the award through
                         PeopleSoft Billing and General Ledger modules. Incurred revenue
                         recognition will be used for cost-reimbursable grants. In addition,
                         Blue Bird award functionality (an award granted without a proposal to
                         initiate it) may be utilized.

                         The Contracts module can be used in conjunction with the Project
                         Costing module to tie a project and grant together for tracking costs
                         associated with a grant-funded project. The State-funded component
                         will utilize amount-based billing and the grant component will utilize
                         rate-based billing.

                         Existing System and Data Conversion
                         The State does not currently have an equivalent of the PeopleSoft
                         Contracts module. Any potential data conversion will have to be
                         analyzed when looking at the requirements for the Grants Management
                         and Project Costing modules.




Technical Requirements Section                                                                 47
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         At this time, there are currently no statistics regarding the number of
                         contracts and amounts that would be impacted by implementing
                         PeopleSoft in Delaware. However, it is expected that every project and
                         grant will use the Contracts module in some way.

                         Organizational Scope and Responsibilities
                         All organizations that will utilize the Grants Management and Project
                         Costing modules will have access to the functionality of the Contracts
                         module.

                         An estimated 250 end-users (a subset of the Project Costing and Grants
                         module users) will be using the PeopleSoft Contracts module once it is
                         in production. This total includes all individuals who would need to
                         access Contracts to change the status of a contract from “Pending” to
                         “Active” and from “Active” to “Closed”. It would also include those
                         individuals who would amend or renew the contract. Because
                         PeopleSoft automated the activation of the billing and revenue plans,
                         there is no immediately identified need for end users to dig deep into
                         the billing and revenue functionality of Contracts.

                         Change Impact
                         The change impact as a result of implementing PeopleSoft Grants will
                         be considerable, but not overwhelming. Specifically, the following
                         types of functional changes will occur. A rating of one (1) to five (5)
                         has been assigned to each, with five (5) indicating an extremely
                         significant impact and one (1) indicating little or no impact.
                           • Activate Contract (4): The State currently has no equivalent to
                                this business process step. Therefore, thorough training will be
                                required in order to activate the contract prior to billing against
                                it. This step is critical in working toward the development of an
                                invoice and completing the process to perform a federal draw.
                         Open Issues
                          • There are no anticipated issues expected for Contracts at this.
                             Since the State is not implementing the full-functionality of
                             Contracts as intended, but rather as the conduit for receiving
                             federal reimbursement; issues that may arise would originate
                             from a lack of functionality identified within PeopleSoft Grants
                             and/or Project Costing, Billing, and Accounts Receivable
                             modules.

                         Modifications
                         There are no anticipated modifications for PeopleSoft Contracts.

                         Transaction Crosswalk
                         There are no DFMS transactions currently performed which would be
                         required within the Contracts module.




48                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               3.2.1.7 Expenses
                         It is the desire of the State to pay employee expenses through payroll
                         eliminating the need to have employee data in the Accounts Payable
                         Vendor table. The Expenses module will enable employee expense
                         reimbursements to be paid through payroll and eliminate the
                         requirement for employees to be set up as Vendors.

                         Functional Scope
                         Approximately 58% of the functionality of the Expenses menu
                         structure in PeopleSoft Financials version 8.8, will be used by the
                         State. Functionality not used relates primarily to the State’s decision to
                         only use one of the four transactions in the Expenses module, the
                         Expense Report. The State will integrate Expense Report payment
                         data with PeopleSoft Payroll.

                         Expenses in Delaware
                         Currently, the State processes close to 28,000 employee expense
                         reimbursements annually. The State has mandated employees to use
                         the State’s credit card for travel and miscellaneous expenses.
                         However, because the credit card cannot be used 100% of the time for
                         various reasons, there is a need to reimburse employees. Employee
                         reimbursements are currently paid through DFMS. This process
                         requires employees to be loaded in the Vendor table. As a result,
                         nearly 25% of the State’s 60,000 active Vendors are State employees.

                         Existing System and Data Conversion
                         No conversion of existing data will be required. The intent is to
                         populate employee table data from the State’s PeopleSoft HCM.

                         Organizational Scope and Responsibilities
                         Personal reimbursements are processed for nearly all the State’s 338
                         Departments; all will use the Expenses module. Organizations, such as
                         the State’s school districts that process many employee
                         reimbursements, may designate expense managers to enter data for
                         teachers and other employees.

                         All employees are advised to use the State’s credit card for State
                         business whenever possible. Reimbursements are made to employees
                         for items such as approved tuition expense and mileage. In Fiscal Year
                         2005, nearly 28,000 personal expense reimbursements were processed.

                         Change Impacts
                         The change impact as a result of implementing PeopleSoft Expenses
                         will be as follows. A rating of one (1) to five (5) has been assigned to
                         each, with five (5) indicating an extremely significant impact and one
                         (1) indicating little or no impact.
                                Paycheck Payments (4): Employees will receive expense
                                reimbursements in their paychecks instead of receiving a
                                separate Vendor check. Reimbursements therefore, may not be




Technical Requirements Section                                                                 49
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                               as timely depending upon when the request is submitted during
                               the pay cycle.

                         Open Issues
                             Can the State utilize the Functionality of the Expenses Module to
                             Manage its Credit Card without a Modification? The State is
                             looking into alternatives for managing its current credit card
                             process. Use of the Expenses module is one option being
                             discussed.

                         Modifications
                         At this point, there have been no modifications identified for the
                         Expenses module.

                         Transaction Crosswalk
                         The following table shows document process data for Fiscal Year 2005
                         and the crosswalk to PeopleSoft. The data shows the number of
                         documents processed, the document name and definition, and the
                         PeopleSoft module and transaction that will be used in the future.

                           Docs        Status          DFMS                          PeopleSoft
                           27,987      Recommended     Personal Expense              Expenses –
                                                       Reimbursement                 Expense
                                                       Used in lieu of a PV by       Report
                                                       State employees seeking
                                                       reimbursement for expenses
                                                       incurred while performing
                                                       their duties for the State.

               3.2.1.8 General Ledger
                         The General Ledger (GL) module is a collection of processes and
                         guidelines in which financial information is captured. The GL contains
                         a permanent record of all transactions (revenue, cash receipts,
                         purchases, vouchers, cash disbursements). Resulting financial
                         statements summarize the data contained in the GL.

                         Functional Scope
                         Approximately 54% of the functionality of the General Ledger menu
                         structure in PeopleSoft Financials version 8.8 will be used by the State.
                         Functionality not used relates primarily to summary ledgers, multi-
                         currency, daily balances, open items, consolidate financial data (mostly
                         eliminations), and federal reports.

                         Existing System and Data Conversion
                         The State’s existing General Ledger database is used by all 338
                         departments. The DelDOT and Delaware State University, maintain
                         financial systems that interface with the current statewide mainframe
                         accounting system. The State processes approximately 3 million
                         documents containing approximately 8 million transactions each year.
                         These numbers are expected to increase since the State does not
                         currently use requisitions or receiver documents. This includes all


50                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         transactions from all modules, budget loads, purchase order, payment
                         voucher, checks, revenue and all appropriation adjustments. General
                         and special funds account for approximately $7 billion in revenues and
                         $7 billion in expenditures which are processed in DFMS each year.
                         Included in the transaction volumes above are approximately 1466
                         journal vouchers. All GL accounts, funds, departments and
                         appropriations will be converted to PeopleSoft Financials at
                         implementation.

                         Organizational Scope and Responsibilities
                         It is expected that a central organization will form the user base for the
                         General Ledger module throughout the year. However, during the 13th
                         month, 338 departments will need to input their accrual adjustments.
                         These adjustments will be for any financial information not entered
                         into the PeopleSoft system related to such things as external petty cash
                         accounts, outside bank accounts, investment accounts, supplies and
                         materials inventory, external accounts receivable, and so forth.

                         It is anticipated that the State will need 12 to 20 employees at the
                         central office to do daily journals and at least 338 employees at the
                         department level to do journal vouchers for the GAAP/CAFR process.

                         Change Impacts
                         The PeopleSoft General Ledger module will have process changes in
                         the following areas. A rating of one (1) to five (5) has been assigned to
                         each, with five (5) indicating an extremely significant impact and one
                         (1) indicating little or no impact.
                           • GAAP (3): Currently organization personnel input data,
                                maintained externally, into DFMS tables. The information is
                                analyzed for preparation of input to the CAFR, centrally. In
                                PeopleSoft end users will produce journal entries in the 13th
                                month.
                           • Skill Gap (4): Many of the future users of the system have little
                                or no formal accounting education. This is not required for data
                                entry of DFMS, which hides accounting complexity from the
                                user. However, PeopleSoft assumes that the software is a tool in
                                the hands of well trained users who will execute policy and
                                procedure without automated assistance. In addition,
                                organization personnel will need to have training to clearly
                                understand debits and credits in the PeopleSoft applications and
                                concepts of cash and modified accrual accounting.

                         Open Issues
                          • Business Unit: It appears to the State that the definition of
                             business units (BUs) in PeopleSoft should be based primarily on
                             the legal status of a sub-organization and the need to produce
                             financial statements. This would lead the State to define a
                             relatively small number of business units. However, other states
                             have chosen to implement business units based on their
                             department structure, to take advantage of the built in BU



Technical Requirements Section                                                                 51
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                               security and have the flexibility to control tables at the BU
                               levels. With a smaller number of business units, departmental
                               security must be accomplished through a modification. The
                               State is still open to a solution.
                           •   Intergovernmental Voucher (IV) State Solution: Internal
                               payments within the State range from one organization paying
                               another for room rental, to another organization generating
                               several hundred IV’s for telephone services. The IV document is
                               used to process the internal payments and contain buyer and
                               seller information. This document is utilized to reference a PO
                               and can be used to post revenue or reduce expenditures between
                               the organizations. The solution should not require excessive
                               Business Units and the journal entry may be the only place to
                               process this document within PeopleSoft Financials.
                           •   Appropriation Type: There is no budget attribute to identify the
                               appropriation type. Currently the state uses appropriation type to
                               report, for edits in the State’s current system, and to segregate
                               the State’s appropriations.

                         Modifications
                          • Departmental Security: This is both a modification and an issue
                             for the General Ledger. DFMS can restrict users in one Budget
                             Unit (PeopleSoft Department) from access to data belonging to
                             another. In other words, each organization can be limited to
                             entering and seeing only their system information. PeopleSoft
                             Financials is designed to be an open-ended, integrated
                             application with various levels of security within modules and
                             across the system. PeopleSoft Financials is delivered with the
                             ability to limit access using certain key fields. Among these
                             fields are Business Unit, Project, and a few others. However,
                             Department is not among them. Without any change, the
                             PeopleSoft system will allow users in one Department (Budget
                             Unit) to view the data of another, which is a significant issue for
                             the State. For this reason, the State has made a tentative decision
                             to modify the system to allow “row-level” security to be defined
                             for the Department chart field and modify search screens to use
                             Department as a search parameter. However, the State would
                             like to review this issue and decision in greater detail with the
                             implementation Vendor before deciding on a final course of
                             action.




52                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                           Transaction Crosswalk
                           The following table shows functional document process data for Fiscal
                           Year 2005 and the crosswalk to PeopleSoft. The data shows the
                           amount of documents processed, status, name and definition and what
                           module will perform the function in the future.

                           Docs    Status          DFMS                                  PeopleSoft
                                                   PR – Payroll                          General
                       1,982,800   Recommended     Used to initiate and document a       Ledger –
                                                   payment for payroll from PHRST        Journal
                                                                                         Entry from
                                                                                         PHRST
                                                                                         integration
                                                   IV - Intergovernmental Voucher
                         35,691    Unknown         Used when the buyer and seller are    Open Issue
                                                   State organizations. The IV
                                                   permits transactions between
                                                   organizations without the issuance
                                                   of a check, via a PV, and the
                                                   subsequent execution of a CR and
                                                   bank deposit.
                                                   JV - Journal Voucher                  General
                          1,644    Recommended     Used by the Division of               Ledger –
                                                   Accounting to record and              Journal
                                                   document accounting events not        Entry
                                                   covered by any other DFMS
                                                   transaction. The offsetting entries
                                                   are not generated by DFMS and
                                                   therefore must be included on the
                                                   Journal Voucher (JV).

               3.2.1.9 Grants
                           The State of Delaware receives more than $1 billion annually in federal
                           aid. These funds are used for a variety of purposes from Medicaid and
                           Medicare to supporting habitats for migratory birds. Delaware will use
                           the Grants Management module to initiate and expense federal grant
                           funds in support of the particular grant programs. The use of the
                           Grants Management module will be decentralized data entry with
                           centralized (State level) approval at various key points within the
                           process.

                           Functional Scope
                           An estimated 77% of the delivered functionality within the Grants
                           Management module will be used by the State. Specific areas that will
                           not be utilized are related to those elements which have a research
                           intended purpose, such as professional investigator’s work experience,
                           education, publications, and similar functions. However, an
                           organization should have the ability to utilize the functionality if it so
                           chooses. In addition, the delivered functionality of Enterprise
                           Integration Points between Human Capital Management and
                           PeopleSoft Grants Management will be utilized.




Technical Requirements Section                                                                      53
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         Grants in Delaware
                         All organizations who apply for federal awards are required to follow
                         the same process; this includes public and higher education. To submit
                         a federal grant request, organizations must complete a manual, paper-
                         based process for reporting to the State Federal Aid Coordinator. The
                         document is reviewed by the organization analyst and brought before
                         the Delaware State Clearinghouse Committee where it is approved or
                         disapproved. Upon approval and receipt of a federal award notice, the
                         organization will complete another manual, paper-based process
                         resulting in the ability to expense funds for the intended purpose. Ad-
                         hoc reports are utilized and enhanced through an organization’s own
                         reporting capacity.

                         Existing System and Data Conversion
                         Delaware does not currently have an electronic medium to manage the
                         grant proposal process. All grants and supporting documentation are a
                         collection of Word, Excel, and Access information. The Office of
                         Management and Budget retains the only known database for federal
                         grants. All federal grants are tracked in DFMS through a unique grant
                         ID and an assigned reporting category. Data conversion will need to
                         include conversion of prior year transactions and available balances.
                         Since the State manually collects grant proposals today, a “going-
                         forward” approach will be used to enter grants which started prior to
                         implementation. Reporting categories will need to be assigned project
                         identification numbers and those grants with multiple reporting
                         categories will need to be mapped to budget items.

                         The State of Delaware reviewed an estimated 600 federal proposals for
                         Fiscal Year 2004, which total more than $1 billion in federal
                         assistance. The number of transactions for federal grants is currently
                         tracked within the General Ledger and a sub-ledger for federal grants
                         through the use of a SAI number which is a State assigned number.
                         Transactions such as payment vouchers and purchase orders are not
                         separated out as a result of being a federal grant, so information
                         provided regarding those module transactions would be inclusive of
                         federal grants.

                         Organizational Scope and Responsibilities
                         All organizations that receive federal funds will use the PeopleSoft
                         Grants Management system, although how much it is used will be
                         driven by their current use of DFMS to fulfill the intent of the grant
                         award. In 2004, 111 departments received federal grants. Since the
                         number of federal grants received by Delaware varies from year to
                         year, system designed must be scalable to accommodate new
                         organizations being added and others being removed. The State
                         already supports Grants Management to a certain extent, from a
                         centralized perspective, but some of those responsibilities may change.

                         An estimated 600 end-users will be using the PeopleSoft Grants
                         Management system once it is in production. This total includes



54                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         approximately 150 users who enter the initial required data to establish
                         a grant within PeopleSoft, approximately 350 end-users who would be
                         classified as grant managers, and approximately 100 end-users who are
                         managers needing only reporting capabilities.

                         Change Impact
                         The change impact as a result of implementing PeopleSoft Grants will
                         be considerable, but not overwhelming. Specifically, the following
                         types of functional changes will occur. A rating of one (1) to five (5)
                         has been assigned to each, with five (5) indicating an extremely
                         significant impact and one (1) indicating little or no impact.
                           • Create a Federal Grant Application On-line (3): Currently, not
                                all State organizations apply for federal assistance electronically.
                                Instead, many complete a paper-based application which they
                                send to the Office of Management and Budget as well as the
                                federal award grantor. There are some organizations which do
                                apply for federal assistance electronically and this number is
                                expected to increase given the federal government’s mandate
                                that all federal assistance be distributed and managed through
                                www.grants.gov .
                           • Manage a Federal Grant Application On-line (4): Currently, very
                                few State organizations manage their federal grants
                                electronically beyond Microsoft Excel spreadsheets and
                                Microsoft Word documents. PeopleSoft Grants Management
                                expects the end-user to manage all aspects of a federal grant
                                through its system to ensure the maximum value to be derived
                                through its related reporting capabilities.
                           • Finalizing a Federal Award (5): Federal awards are created in
                                the State’s current financial management system by completing a
                                series of documents. There is no consistent, standard approach
                                to who completes these documents and how they are completed.
                                PeopleSoft will require a standard approach to both of these
                                manual approaches.
                           • Billing and Accounts Receivable (3): In Delaware’s current
                                system, there are no methods available to provide this type of
                                information for federal grant recipients. The method by which
                                grant managers draw down their federal funds is based on reports
                                that are generated by the current system and then manually
                                extracting that information based on what they have drawn down
                                year to date. The role of Billing and Accounts Receivable is
                                expected to be a concept difficult for many federal grant
                                managers to understand.
                           • Grants is Project Costing (5): Similar to the relationship of
                                Grants to Billing and Accounts Receivable discussed above, this
                                notion that grants managers have the ability to fully utilize as
                                much or as little as they would like in Project Costing will be
                                difficult for many of the managers to understand. Furthermore,
                                the idea that cost tracking and available balances are found
                                within Project Costing and not in the “Grants” module will be a
                                difficult concept to comprehend.



Technical Requirements Section                                                                  55
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                           Open Issues
                            • Single Point of Contact Form: The State Office of Management
                               and Budget (OMB) uses a form that provides a high-level
                               summary of the grant's purpose and includes information such as
                               the budget, objectives, timeframe, etc. This form is used
                               extensively by the Statewide Delaware State Clearinghouse
                               Committee which reviews all grants. The issue is whether
                               PeopleSoft delivered capabilities can meet these needs or if an
                               alternative solution is necessary.
                            • Grants Method of Accounting: This issue is related to how
                               federal grants need to report their financial expenses. Earlier in
                               the project, it was identified that some organizations need to
                               provide their financial information on an accrual basis. The
                               issue within the context of PeopleSoft is how will the system
                               handle this requirement, given the State has chosen to implement
                               a modified-accrual basis of accounting?

                           Modifications
                           There are no anticipated modifications for the Grants Management
                           module at this time.

                           Transaction Crosswalk
                           The following table shows functional document process data for Fiscal
                           Year 2005 and the crosswalk to PeopleSoft. The data shows the
                           amount of documents processed, the document name and definition
                           and what module will perform the function in the future:

                   Docs       Status          DFMS                             PeopleSoft

                                              FM - Federal Aid Master
                                              Used to enter and modify grant
                   2,602      Recommended                                      Grants – Finalize
                                              information, both descriptive
                                                                               Award
                                              and budgetary.




56                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



               3.2.1.10 Project Costing
                         The State annually launches a capital improvement program to
                         authorize and fund construction of major capital projects. The Project
                         Costing module will be utilized to create project numbers and
                         associated information, create budgets for these state-wide projects,
                         and allow expenses associated with them to be tracked. This module is
                         not a complete project management tool but can enhance project
                         scheduling and management applications that work with the same
                         projects defined in the Project Costing module.

                         Functional Scope
                         Approximately 95% of the functionality of the Project Costing menu
                         structure in PeopleSoft Financials version 8.8, currently may be
                         utilized by the State. Functionality not used relates primarily to
                         inventory, order management, and program management. Asset
                         capitalization may or may not be utilized. Most third party integration
                         features are not currently within the scope of the project with the
                         exception of the delivered third party interface utility. The interface
                         utility will be leveraged as a standard format for importing limited
                         project data into the module interface tables from a limited number of
                         outside computer applications.

                         Time and Labor information will be interfaced directly through the
                         General Ledger to the Project Costing module.

                         At the present time, the DelDOT feeds alpha-numeric project numbers
                         into the system, while other organizations will mostly likely use the
                         numeric system assigned project number.

                         Project Costing in Delaware
                         All Delaware departments seeking capital improvements through
                         issued bonds receive their funding through the capital bond bill
                         approved by the General Assembly and authorized by the Governor.
                         Many smaller organizations and commissions are less project-centric
                         as opposed to others such as the Division of Facilities Management and
                         DelDOT which are project-driven. DelDOT utilizes BACIS and DFMS
                         to capture financial data at the detailed project level.

                         Existing System and Data Conversion
                         The State has multiple means of tracking project costing, such as Excel
                         spreadsheets, DFMS, and BACIS. In addition, DelDOT will soon be
                         using a custom in-house application, the Funds Allocation for Capital
                         Transportation System (FACTS).

                         Conversion requirements for Project Costing data will be defined prior
                         to the start of implementation. At present, we anticipate that some
                         project information from DelDOT will require conversion. This would
                         come primarily from its BACIS application and would be automated in
                         nature due to the volume of active projects and the nature of how the



Technical Requirements Section                                                                57
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         data is stored. Data quality, integrity, and needs for cleansing and
                         transformation are not fully known at this point.

                         The Division of Parks and Recreation of the Department of Natural
                         Resources and Environmental Control may require a manual
                         conversion from Excel spreadsheets. A plan is in place for all
                         organizations that initiate projects through the capital budget process to
                         use the Project Costing module. These organizations will follow the
                         same conversion approach.

                         The State authorizes, on average, 150 projects per Fiscal Year totaling
                         an average of 700 million dollars. These are generally high level
                         projects that can be broken down into smaller projects depending upon
                         the organization. The State has not fully identified the extent of the
                         project break down throughout the State. An example of the project
                         decomposition can be found with DelDOT. The State authorizes four
                         large projects. DelDOT breaks these down into approximately 43
                         project families. On average, there are about 300 individual or detail
                         projects set up per Fiscal Year. Each of these can have anywhere from
                         1 – 10 associated activities.

                         Organizational Scope and Responsibilities
                         It is expected that approximately 400 end users in all 22 existing
                         departments (338 PeopleSoft departments) will utilize the Project
                         Costing module. This represents 400 staff members that will require
                         training for creating projects, defining activities, making approvals,
                         doing inquiries, and reporting. A subset of this number will require
                         training for creating project budgets and for executing processes that
                         bring information into the Project Costing module.

                         It is expected that all organizations will use the Project Costing
                         module. In conjunction with the implementation of PeopleSoft
                         Financials, the Office of Management and Budget (OMB) will oversee
                         the development of project budgets that will be input into the Project
                         Costing module.

                         Change Impact
                         The Project Costing module will have process changes in the following
                         functional areas. A rating of one (1) to five (5) has been assigned to
                         each, with five (5) indicating an extremely significant impact and one
                         (1) indicating little or no impact.
                           • Capital Budgeting (3): Currently, Delaware does not have a
                                single solution for managing capital budgets. The Office of
                                Management and Budget works with various State organizations
                                in developing budgets for approval by the Governor and General
                                Assembly. After approval of the budgets, the various
                                organizations manage their own budgets. The Project Costing
                                module along with Commitment Control will allow for
                                establishing and managing capital budgets in a like manner




58                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                 across organizations. How budgets are finalized and who does it
                                 will requires coordination between OMB and the organizations.
                           •     Project Number Nomenclature (3): Currently, organizations
                                 utilize various project numbering schemes. Utilizing the Project
                                 Costing module assigned numbering will remove the ability to
                                 have smart coding embedded in project numbers that some
                                 organizations may currently use.
                           •     Standard Activities (2): Various organizations currently utilize
                                 terminology that describes activities or phases in many different
                                 ways. Should defining standard activities be employed, it will
                                 introduce standardization and efficiency throughout the State and
                                 will require gathering input from the organizations on the
                                 common nomenclature.

                         Open Issues
                          • Standard Verses Business Unit Specific Activities: Should
                             standard activities be established across module business units or
                             should business unit specific activities be established or some
                             combination of both?
                          • Project Number Nomenclature: Development of the FACTS
                             application by DelDOT includes generation of their own seven-
                             digit project numbers. A recommendation to consider is having
                             DelDOT pass an alpha number in a proposed interface to the
                             Project Costing module while the rest of the State utilizes
                             numeric system generated numbers. This project data is an
                             anticipated interface into the Project Costing module from
                             FACTS using the third party interface tables. Since the data will
                             enter the Project Costing module via an interface, this approach
                             would also prevent potential duplicate project numbers from
                             being generated and thus rejected.
                          • Assets Generation: Currently, the plan for asset generation is that
                             assets will generate from the Accounts Payable module into the
                             Asset Management module. Another way that assets can be
                             generated is via the Project Costing module and sent to the Asset
                             Management module. The State has not fully determined
                             whether or not this feature will be employed.
                          • Budget Period: Mechanisms and processes to be utilized in the
                             future when setting up project budgeting have yet to be
                             developed along with who will be responsible for finalizing
                             project budgets.
                          • Module Functionality: There is functionality within the Project
                             Costing module that could be utilized but a decision for inclusion
                             or exclusion has not been reached. An example of this is the
                             Project Delete Utility that can be used to delete erroneous project
                             data. Another example is the use of the Project Costing chart
                             fields that have not yet been shown to be necessary for use by
                             the State at the present time.
                          • Other Module Data: What other module cost and revenue
                             collection data will be imported into the Project Costing module
                             has not been fully established. Among the options are Expenses,



Technical Requirements Section                                                                 59
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                               Accounts Payable, Purchasing, General Ledger, Commitment
                               Control and others. Will the manner to pull the data into the
                               Project Costing module be automated or manual or a
                               combination of both?

                         Modifications
                         At this point, there have been no modifications identified for the
                         Project Costing module.

                         Transaction Crosswalk
                         There is a DFMS to PeopleSoft Transaction Crosswalk and a BACIS to
                         PeopleSoft Transaction Crosswalk compiled by the State and included
                         in Appendix 4 of this document. None of these transactions are tied
                         directly to the Project Costing module but rather, indirectly through
                         various other module transactions that may be tied to a project. For
                         example, a purchase order can be associated with a project, a payment
                         voucher may be associated with a project, or a journal voucher or
                         Commitment Control entry may be associated with a project.

               3.2.1.11 Purchasing
                         Efficient, cost-effective procurement of materials, goods and services
                         is key to the success of any organization. This fundamental objective
                         is central to the design of the PeopleSoft Purchasing module. This
                         module will allow the State to streamline the procurement process
                         while managing purchasing activities online. It also provides a flexible
                         yet comprehensive online procurement process including requisitions,
                         purchase orders and receipts.

                         Functional Scope
                         Approximately 79% of the functionality of the Purchasing menu
                         structure in PeopleSoft Financials version 8.8 will be used by the State.
                         Functionality not used relates primarily to transactions associated with
                         procurement cards. The State currently utilizes the Works Inc.
                         program through PNC Bank for procurement card transaction
                         processing. Although the contract for transaction process will be re-
                         bid in the near future, an interface to whatever transaction process
                         service the State chooses is part of the implementation project.

                         In addition, based on the responses and recommendations in the State’s
                         RFI, the eProcurement module will be implemented as a ‘requisition
                         front end’ for Purchasing module end users. The eProcurement
                         module allows for a flexible system setup depending on the unique
                         requirements of our organization. The State will determine how much
                         centralized or decentralized control is appropriate.

                         Included within the setup of the Purchasing and potentially
                         eProcurement modules is Items Management which includes loading
                         of items, categories and/or catalogs. At the very least the State intends
                         to populate catalogs by either Vendor or category for items purchased
                         from the State’s mandatory use contracts. Several State organizations



60                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         negotiate their own contracts that other organizations may or may not
                         be able to purchase from. Delaware is currently reviewing the
                         applicable use of the National Institute of Governmental Purchasing
                         (NIGP) Code for use in categorizing goods and services. Population of
                         Items tables may be done manually or through the use of an upload
                         interface. Where feasible, the State intends to require vendors to
                         submit their items list electronically for newly negotiated contracts.

                         Purchasing in Delaware
                         The Purchasing and Contracting Advisory Council established
                         thresholds that trigger formal bidding procedures in the areas of
                         materiel and non-professional services, public works, and professional
                         services. State organizations are required to use the formal bidding
                         procedures when a purchase is made in an amount that exceeds the
                         threshold.

                                 Purchasing Classification/Threshold       Procedure
                                 Materiel and Non-Professional Services*
                                          < $10,000                        Open Market Purchase
                                          $10,000 - $24,999                3 Written Quotes
                                          $25,000 and over                 Formal Bid
                                 Public Works
                                          < $25,000                        Open Market Purchase
                                          $25,000 - $49,999                3 Letter Bids
                                          $50,000 and over                 Formal Bid
                                 Professional Services
                                          <$50,000                         Open Market
                                          $50,000 and over                 Formal RFP Process

                         * All contracts issued by Government Support Services are mandatory
                         for organizations as defined in Delaware Code, Title 29, Section
                         6902(6). Thus, open market purchases are only permitted for those
                         items not already under contract. Organizations may institute policies
                         which are more restrictive than those established by Delaware Code or
                         by the Council.

                         Existing System and Data Conversion
                         The State’s existing procurement policies and procedures may vary by
                         organization except as noted in the above guidelines. The procurement
                         process may begin with a verbal or written acknowledgement of a need
                         for goods and/or services that ultimately culminates in a hard copy
                         purchase order (PO) document entered into DFMS. Any purchase in
                         an amount greater than or equal to $2,500 requires the use of a PO and
                         third level approval by the Division of Accounting and/or Office of
                         Management and Budget. Organizations may or may not require
                         receiving documentation before the invoice can be paid.

                         There are currently 105 state-wide mandatory use contracts and 53
                         unique organization contracts which provide for goods and services
                         purchased throughout the State. These goods and services will need to
                         be categorized in the items tables to be available for purchasing. There
                         will be some level of effort to produce this documentation, although



Technical Requirements Section                                                                    61
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                         many vendors will be required to provide purchasing item data in
                         electronic formats.

                         The State processes approximately 65,730 purchase orders in a Fiscal
                         Year. In Fiscal Year 2005, there were 81,437 PO lines totaling
                         $981,500,000 dollars. Purchase orders that were rolled over from the
                         close of Fiscal Year 2005 to the start of Fiscal Year 2006 totaled in
                         excess of $381,500,000 dollars. The roll over process will impact the
                         purchase order conversion from the current purchase order data in
                         DFMS.

                         Organizational Scope and Responsibilities
                         All organizations will utilize the receiver functionality and optionally
                         the Requisition and Purchase Order functionality, dependent on each
                         organization’s purchasing requirements. The State will have a
                         decentralized purchasing environment. All end users will purchase
                         items using either a requisition or a purchase order within PeopleSoft
                         Financials. However, it should be noted that direct claims (payment
                         vouchers) may be made for items received without a requisition or
                         purchase order. In any event, the receiver document within PeopleSoft
                         Financials, will be required before any invoice can be paid. If an
                         organization processes a direct claim payment voucher, (no PO or
                         Requisition (REQ)) a receiver document will be required for matching
                         of the invoice.

                         It is expected that approximately 2,800 end users in all 338
                         departments within the State will utilize the Purchasing module. This
                         represents 800 initial requestors and/or receivers (prior to Go-Live),
                         1,000 purchase order end users and 1,000 management end users who
                         will require approvals, inquiry and reporting training. Post Go Live,
                         the state anticipates another 1,000 – 1,500 end users to attend training
                         in these areas, as well as, in specific functionality such as reporting and
                         reconciliation training for managers and supervisors.

                         Change Impact
                         The PeopleSoft Purchasing module will have process changes in the
                         following functional areas. A rating of one (1) to five (5) has been
                         assigned to each, with five (5) indicating an extremely significant
                         impact and one (1) indicating little or no impact.
                           • Online Requisitions (3): Currently Delaware does not require
                               online requisitions. They are made verbally or manually using
                               external, organization specific systems. Therefore end
                               users/requestors will spend more time processing online
                               requisitions than in the current environment.
                           • Online Items tables and/or Catalogs (3): Currently purchasers
                               place orders with approved Vendors, and then issue a purchase
                               order for the expense. In PeopleSoft, users must select items
                               from the items table or catalogs in order to create the requisition
                               or purchase order.
                           • Requisition/Purchase Order Reconciliation (4): This will be a
                               totally new process to end users. They will have to become


62                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                 knowledgeable about the purchasing/payables process to know
                                 and learn the requisition/purchase order reconciliation process,
                                 even if it is run through Process Scheduler. Also, there is no
                                 functionality available in PeopleSoft for an end user to view the
                                 history of expenditures against a PO; end users must learn the
                                 process of drilling down on the documents processed against a
                                 PO.
                           •     Receiving (3): This will be a totally new process to users who
                                 receive ordered items. Currently there is no online data
                                 management of the receiving process. The State plans to use the
                                 receiver document as an ‘okay to pay’ for invoices received.
                                 Therefore, accurate receiving data entry will be crucial to the
                                 payables process and may have impacts to asset management as
                                 well.

                         Open Issues
                          • Open-Order Purchase Order: All General and Special Fund
                             purchase orders must be issued to specific vendors unless
                             exceptions are granted. Under extraordinary circumstances,
                             organizations may request the use of non-specific vendor open-
                             order purchase orders. These requests must be directed to the
                             OMB Director and must receive the concurrent approval of the
                             OMB Director and the Secretary of Finance. Concerns are that
                             although the State will need the capacity to issue an open vendor
                             PO, it will give users the capability to change the vendor on a
                             vendor specific PO.
                          • Encumbrance Adjustment: The Encumbrance Adjustment (EA)
                             form in DFMS is used to increase or decrease line amounts on
                             existing encumbrances. If any other coding changes are
                             required, this form cannot be used. The use of this form is
                             optional and can be used in addition to, the modified PO
                             document. More than one PO can be adjusted on an EA
                             document. In PeopleSoft, there is no similar function. Changes
                             to the line amounts on the PO are done as change orders directly
                             on the PO itself, however there are limitations to what can be
                             changed on the PO line amount if the PO is not designated as an
                             “amount only” PO, and/or if any receiver documents have been
                             processed against the PO to date. If the EA is used to close POs
                             with open balances, that function can be accomplished with the
                             PO reconciliation workbench.
                          • NIGP code: The State is currently reviewing the NIGP coding
                             system for use in categorizing goods and services or utilizing the
                             code for the Account Chart field in PeopleSoft Financials. The
                             State has over 1,800 object codes used in the
                             purchasing/accounting string. Using the NIGP code could easily
                             streamline the coding process and eliminate the
                             capability/necessity of organizations requesting new codes for
                             their specific use. However, there are currently over 400 object
                             codes used for payroll processing and NIGP does not




Technical Requirements Section                                                                 63
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                       accommodate earnings codes; although, they do deliver user
                                       definable series codes.

                              Modifications
                              At this point, there have been no modifications identified for the
                              Purchasing module.

                              Transaction Crosswalk
                              The following table shows functional document process data for Fiscal
                              Year 2005 and the crosswalk to PeopleSoft. The data shows the
                              amount of documents processed, the document name and definition
                              and what module will perform the function in the future.

     Docs         Status                 DFMS                                                       PeopleSoft
        65,730    Recommended            PO - Purchase Order
                                         Establishes an encumbrance against an                      Purchasing –
                                         appropriation. This form is used for both                  Requisition
                                         regular and open-order encumbrances. A                     Purchasing –
                                         PO is required for all General and                         Purchase Order
                                         Appropriated Special Funds.
                                         Regular PO - establishes an encumbrance
                                         using one specific vendor.
                  Recommended            OMS Requisition
                                         An internal OMS transaction, which isn’t                   eProcurement
                                         submitted to DFMS, used to create a pre-                   /Purchasing –
                                         encumbrance.                                               Requisition

                  Tentative              Open-Vendor PO - establishes an                            Purchasing –
                                         encumbrance that is used for multiple                      Purchase Order1
                                         vendors.
                  Recommended            Next Fiscal Year PO - The PO may be                        Purchasing –
                                         processed after March 1 for supplies for the               Purchase Order
                                         following school year. Items cannot be paid
                                         until after July 1.
                  Recommended            PO Mod - Adjustments to existing PO's to                   Purchasing –
                                         increase or decrease the encumbrance can                   Purchase Order
                                         be accomplished using a PO modification.                   Update
                                         Only one PO can be adjusted using this
                                         document.
         6,523    Recommended            EA - Encumbrance Adjustment
                                         The EA form may be used to increase or                     Purchasing –
                                         decrease line amounts on existing                          Purchase Order
                                         encumbrances. If any other coding changes                  Update2
                                         are required, this form cannot be used. The
                                         use of this form is optional and is in
                                         addition to rather than in place of the
                                         modified PO document.
                                         Multiple PO's can be adjusted on an EA
                                         document.
           1
             There is a related issue surrounding the ability to change a vendor on any PO, not just ones intended for open-
           orders.
           2
             This doesn’t provide the functionality to adjust multiple POs in one transaction.




64                                                                                    Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               3.2.1.12 Vendors
                         The State has approximately 60,000 active vendor codes in its DFMS
                         vendor table. This number includes duplicate vendors since each
                         vendor address or location has its own vendor code. The number also
                         includes over 15,000 employees that have received expense
                         reimbursements through accounts payable.

                         Functional Scope
                         Approximately 38% of the functionality of the Vendor menu structure
                         in PeopleSoft Financials version 8.8 will be used by the State.
                         Functionality not used relates primarily to tax withholding. The State
                         currently performs 1099 reporting but does not provide tax withholding
                         from vendor payments.

                         Vendors in Delaware
                         All new vendors and changes to existing ones are data entered into
                         DFMS by end users. The Division of Accounting must approve
                         vendors and changes to the system before the information is available
                         for transaction processing.

                         Existing System and Data Conversion
                         Vendor information is maintained in four separate databases. The
                         “official” vendor file is maintained in DFMS and is used in the
                         majority of transaction processing. In addition, 2500 Automated
                         Clearing House (ACH) vendors are maintained by the Office of the
                         State Treasurer. This file contains the DFMS vendor ID for
                         association with data maintained in DFMS along with banking
                         information needed for the ACH transaction. A third file is maintained
                         by the Division of Accounting and identifies approximately 10 vendors
                         who have elected to be paid via Active Card Integration (ACI) via the
                         procurement card. A fourth file is maintained within the PHRST
                         payroll system for payroll vendors only. New vendors or payroll
                         vendor changes, are manually entered into DFMS prior to vendor
                         payment.

                         Vendor payment is generated by DFMS on a daily basis. The process
                         produces a “check file”, which forwarded to ‘PayBase’, which is
                         maintained by the Office of the State Treasurer. PayBase uses the
                         check file in conjunction with the ACH and ACI vendor files to
                         produce either an ACH transaction, an ACI transaction or a paper
                         check.

                         For conversion, vendor information in all three files must be combined.
                         The existing vendor data must be cleansed, including the removal of
                         employee data (thus reducing the initial file by approximately 25%)
                         and duplicated entries. Valid duplicate vendors in DFMS will become
                         a single vendor with multiple locations in PeopleSoft Financials. Each
                         existing vendor status for 1099 processing must be mapped to an
                         appropriate PeopleSoft status. Additional data required in PeopleSoft
                         that does not exist in DFMS will need to be gathered.



Technical Requirements Section                                                               65
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                         Organizational Scope and Responsibilities
                         The ability to create vendors will be granted to an estimated 700 users
                         in all 338 departments. It is expected that these users will enter vendor
                         information – new vendors, additional locations, and changes to
                         existing vendors. Approval and management of vendors will be done
                         by a central organization of an estimated 10 users.

                         Change Impacts
                         The PeopleSoft Vendor module will have process changes in the
                         following functional areas. A rating of one (1) to five (5) has been
                         assigned to each, with five (5) indicating an extremely significant
                         impact and one (1) indicating little or no impact.
                               Vendor Responsibility (3): Responsibility for vendor
                               maintenance will be reduced from four organizations and
                               systems to one organization (Division of Accounting) using only
                               PeopleSoft Financials to create, retrieve and maintain vendor
                               information. Polices, process and procedures must be put into
                               place that ensures the requirements of all four organizations are
                               identified and addressed.
                               Vendor Approval (2): In the current system, vendors are entered
                               into a suspense table, which is periodically reviewed for
                               approval. Vendors are not added to the production system until
                               this approval takes place. The PeopleSoft approach to vendor
                               approval does not use a suspense file, relying instead on
                               workflow or notification to indicate that there are new vendors
                               requiring review and approval.

                         Open Issues
                             There are no open issues for vendors at this time.

                         Modifications
                         No modifications have been identified for vendors at this time.




66                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


       3.2.2   PHRST Integration
               The State of Delaware has made a significant investment in PHRST (Payroll
               Human Resource Statewide Technology), a PeopleSoft implementation of the
               Human Capital Management (HCM) system currently on Release 8.8 SP1. To
               realize the benefits of a truly integrated ERP, PHRST must be integrated with
               PeopleSoft Financials, and all accounting entries must integrate, synchronize or
               flow between PHRST and PeopleSoft Financials. A document titled “State of
               Delaware High Level Financials and PHRST Integration Recommendations” has
               been published and can be found in Appendix 2. This document was developed
               to review the functionality provided by the Enterprise Integration Points (EIPs)
               between PHRST PeopleSoft modules and PeopleSoft Financials modules,
               identify those EIPs that would be necessary for integration or useful to the State,
               document barriers to the use of the selected EIPs and recommend the EIPs to be
               implemented during the PeopleSoft Financials implementation project.

               Functional Scope
               The scope of this effort includes implementation of all changes identified by the
               State for integration of PHRST and PeopleSoft Financials, working through the
               operational changes needed to support the system changes, and conversion of
               PHRST data needed for consistency with PeopleSoft Financials or to support the
               system changes. Also, within the scope of this project, is the reengineering of the
               processes within all modules of PHRST that will need to change as a result of the
               implementation of PeopleSoft Financials. The Project Team has identified and
               analyzed 75 enterprise integration points (EIP) between PeopleSoft Financials
               and PHRST (Time and Labor, Payroll and HR). As of this writing, the plan is to
               enable 34 of these integration points. In order for this to occur, 16 integration
               points will require changes to the configuration of and/or modification of
               PHRST. Furthermore, 15 will require some change in the operating policy and
               procedures for PHRST organizations.

               A PHRST Payroll Accounting “bolt-on” (customization) includes 11 major
               processes that calculate, distribute costs and export transaction data to the current
               financial management system (DFMS). Where possible, the State will make
               configuration changes and implement delivered solutions to replace portions of
               this “bolt on” customization in the PHRST application. It is anticipated that
               some portion of the functionality represented by these processes not covered by
               an EIP will be continued in new, but smaller, modifications because of
               legislative, regulatory, policy or contractual circumstances that cannot be
               changed.

               Existing System and Data Conversion
               PHRST is used by every State organization to record human resource events, pay
               employees and provide data via interfaces or file outputs with many third parties
               including a PeopleSoft Pension application used by the State Pension Office.

               The State using the PHRST installation pays approximately 37,000 employees on
               a biweekly basis. In April 2005, the State implemented the Time and Labor
               module (Release 8.8 SP1) in three state organizations. In November 2005,




Technical Requirements Section                                                                   67
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               DelDOT joined the three pilot organizations. A roll out plan is currently under
               development to implement Time and Labor in all remaining State organizations.
               In addition, the Payroll Accounting “bolt-on” is a custom solution designed to
               meet the requirements for the purpose of expensing costs incurred by the State
               during the biweekly payroll process. Costs incurred consist of earnings, benefit
               costs and other employment costs (OEC’s). The module’s accounting functions
               consist of an expense component, a posting/interface component and a reporting
               component. The most complex is the expense component. Its purpose is to
               prorate a cost and control the related funding information in order to address
               budgetary requirements, if needed, at the organizational level.

               The “State of Delaware High Level Financials and PHRST Integration
               Recommendations” identifies the changes that need to be implemented and some,
               but not all, of the data that will require conversion. Examples of data conversion
               efforts are Human Resource Business Unit, Department ID, Vendor File and
               Account Code.

               Organizational Scope and Responsibilities
               It is expected that all State organizations, will form the user base for PHRST and
               PeopleSoft Financials. The OMB and the Division of Accounting will continue
               to be charged with following the Budget and Accounting Policy Manual
               established by the OMB. Approximately 1,136 PHRST end users in all 338
               departments within the State currently utilize the PHRST system that will
               integrate with PeopleSoft Financials.

               Change Impact
               Enterprise Integration Points (EIPs) that, if used, may result in either a change in
               business procedure (B) and/or change in configuration and or modification to
               PHRST (C). A detailed discussion on the EIPs can be found in Appendix 2 –
               PHRST Integration Analysis.




68                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                        Recommended EIP’s                    Recommended EIP’s
                   Action/Reason                     -    Budget Period Calendar          B C
                   Business Unit Table FS            -    Business Unit Table GL           C
                   Business Unit Table HR           BC    Business Unit Table PC           C
                   Commitment Control Budget        BC    Country Table                    -
                   Update
                   Currency Code Table               -    Department                      B C
                   Detail Calendar Data              C    Direct Deposit                   -
                   Earnings Table                    -    Fund Chartfield                  -
                   GL Account Table                  -    HR Account Code Table           B C
                   Job Code Table                    -    Journal Generator Appl ID        C
                   Journal Generator Template       C     Location Table                  B C
                   Name Prefix/Suffix Tables         -    National ID Type                 -
                   Payroll Accounting Transaction   BC    Payroll Paysheet Payment         B
                                                          Request
                   Payroll Payment Request           B    Payroll Paysheet Payment         B
                   Acknowledgement                        Issued
                   Person Data                       -    Position Data                    -
                   Project                          BC    School Table                     -
                   Setid                            BC    State Table                      -
                   Table Set Control                BC    Unit of Measure                  B
                   Vendors                          BC    Workforce Data                   -

               Examples of process changes between PHRST and PeopleSoft Financials are as
               follows. A rating of one (1) to five (5) has been assigned to each, with five (5)
               indicating an extremely significant impact and one (1) indicating little or no
               impact.
                   • Business Unit (3): PHRST will need to establish at least one HR
                        Business Unit for each of the GL Business Units that are established by
                        PeopleSoft Financials. PHRST is free to establish more than the
                        proposed business units, however, any additional HR Business Units
                        must map back to a GL Business Unit. Functional specifications of
                        existing reports must be reviewed and amended as necessary.
                   • Department (4): The current PHRST Department is a nine-character
                        value; the first six characters correspond to the future PeopleSoft
                        Financials Department; the last three characters refer to Pay Section. The
                        proposed definition of a Department is a six-character organizational unit
                        that has a budget associated with it (as per the Budget Act). Once the
                        proposed Department values are accepted, functional conversion maps
                        need to be created to assist in migrating employee data. Existing reports
                        will need to be reviewed and either their functional specifications
                        updated or a decision made to discontinue the report in the new
                        environment. Specifications may have to be created for new reports as
                        necessary. In addition, those State organizations who rely on Pay
                        Section will need to be provided alternatives to meet their business
                        needs.
                   • HR Account Code Table (4): Users will be prevented from entering
                        invalid HR account codes. Users will have to be trained on basic
                        PeopleSoft Financials concepts to understand the structure of the chart
                        fields and how to select the appropriate HR account code based on the
                        delivered lookup prompt provided.


Technical Requirements Section                                                                  69
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                   •   Payroll Accounting Transaction (4): Currently the existing
                       customization is more than just an interface from PHRST to DFMS; it is
                       a collection of programs that have been written to perform expensing
                       calculations, DFMS account strip manipulation, and various
                       modifications to the output of the payroll before transmission to DFMS.
                       Any requirements, which are not met through configuration or business
                       process changes, will have to be continued as new customizations that
                       are engineered for the new integrated environment.

               Open Issues
                     Department – Pay Section Issue: The current Department is a nine-
                     character value; the first six characters correspond to the future
                     PeopleSoft Financials Department; the last three characters refer to Pay
                     Section. A definition of the new Department structure will need to be
                     completed.
                     Tax Shelter Annuity Solution: Develop solution that is within the
                     existing PeopleSoft functionality thus providing the ability to remove a
                     customization.
                     Business Unit: PHRST and PeopleSoft Financials will need to agree
                     upon the Business Unit structure and develop the mapping from PHRST
                     to PeopleSoft Financials.
                     Department Management: Develop a process to coordinate the
                     establishment and maintenance of Department values between OMB,
                     PHRST and PeopleSoft Financials.
                     PHRST Vendors: Perform Vendor cleanup of the PHRST Vendor list in
                     coordination with PeopleSoft Financials Accounts Payable module
                     Vendor list.
                     Vouchers: Validate the delivered voucher PHRST to PeopleSoft
                     Financials process will meet the needs of PHRST.
                     Unit of Measure: Determine if the unit of measure codes VUW (Vehicle
                     Usage Ways) and VUM (Vehicle Usage Miles) are still required.
                     Location table reconciliation: Reconcile the Department of
                     Administrative Services (now OMB), PHRST and Department of
                     Education Location Table lists.
                     Replace the Payroll Accounting “bolt-on” customization: Examine,
                     comprehend, disassemble customizations, design the setup and test the
                     new Payroll Accounting transaction.

               Modifications
                 • The conversion from one Business Unit to multiple Business Units in
                      PHRST will result in modifications to all reports and programs using
                      Business Unit.
                 • The change of Department from a 9-character field to a 6-character field
                      will require a modification in PHRST to all on-line pages, reports and
                      other programs using Department ID and an alternative to Pay Section
                      must be included in the modification.
                 • If the Projects field is to be used in an “as delivered” environment,
                      PHRST will have to redesign the existing Time and Labor customization
                      to use the delivered Project field instead of the User Defined Fields.




70                                                              Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                   •   Using the delivered HR Account Code table will require modifications
                       on pages, records and custom programs related to HR Account Code.
                   •   Customizations may be eliminated or reduced in size if the Payroll
                       Accounting transaction is used.

               Transaction Crosswalk
               The following table shows functional document process data for Fiscal Year
               2005 and the crosswalk to PeopleSoft. The data shows the amount of documents
               processed, the document name and definition and what module will perform the
               function in the future.
                   Docs          Status        DFMS                              PeopleSoft
                   1,982,800     Recommended   PR – Payroll
                                               Used to initiate and document a   General Ledger –
                                               payment for payroll from          Journal Entry
                                               PHRST                             PHRST – EIP


       3.2.3 Interfaces
               The State expects that most of the modules to be implemented will require
               interfaces. Some of those interfaces may be as simple as standard format data
               feeds accommodated by a delivered PeopleSoft interface. Others will be
               customized and more complex interfaces to deliver information to the PeopleSoft
               application from existing legacy systems.

               The State is using a variety of decentralized and legacy systems to support and
               complement the financial activities of the State. Many of these applications were
               created for a specific segment of the State’s business activity and are highly
               customized. Some were purchased from third party vendors while others were
               developed internally. Some of these systems may be replaced by functionality
               which is delivered with PeopleSoft, however, the State expects that most of the
               customized legacy systems will continue to operate and the financial transactions
               recorded in those systems will be interfaced to PeopleSoft Financials.

               The State expects to apply a policy of creating one “standard” interface
               (transaction interface) for each transaction type to be interfaced. Each legacy
               system that interfaces with Delaware’s PeopleSoft Financials system must adhere
               to the transaction interface. Application of this policy should significantly reduce
               the number of interfaces to be supported. In addition, the State understands that
               PeopleSoft Financials version 8.9 includes additional delivered interfaces which
               it expects to utilize.

               The State has identified 24 interfaces with PeopleSoft Financials that will be
               required. Sixteen of the identified interfaces are inbound and eight are outbound.
               This list identifies specific types of interfaces (e.g., Payment Request). There
               may be 10 or 15 legacy systems that will be using a single transaction interface.
               The State will be identifying the specific legacy systems and organizations with
               interface requirements in the first half of Fiscal Year 2006 but it is expected that
               most, if not all, of the requirements will be met by the 24 interfaces listed in
               Appendix 7. Additional outbound interface requirements may be discovered
               prior to or just after the implementation begins.


Technical Requirements Section                                                                  71
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



               The State anticipates that interfaces for the following transactions will be
               required:
                       • Cash Receipts
                                o As many as 20 to 30 of the 338 departments will need to use
                                    an interface to record cash received into the Accounts
                                    Receivable module.
                       • Projects
                                o One large organization is expected to interface a separate
                                    (third party) projects costing system into PeopleSoft
                                    Financials. Projects will be established in the third party
                                    system and the Project ID and setup information will be
                                    interfaced into PeopleSoft.
                                o All other organizations will utilize the PeopleSoft Project
                                    Costing module. If any organization needs to send Project
                                    Costing information into PeopleSoft the delivered third party
                                    interface will be used.
                       • Payments
                                o It is estimated that 12 organizations will require an interface
                                    to request payments in the Accounts Payable module.
                                o An additional interface will be required to send the payment
                                    details (payment number and date cleared for example) back
                                    to the legacy systems.
                       • Journal Voucher (Payables Journal Entries)
                                o It is expected that at least one organization will require an
                                    interface to process a large volume of adjustment
                                    transactions on a regular basis.
                       • Purchase Card transactions
                                o Most organizations will utilize a State Purchasing Card for
                                    various purchases and the State will interface those detailed
                                    transactions into the Accounts Payable module.
                                    Organizations will use a third party software solution to
                                    monitor card usage and apply appropriate accounting
                                    distribution to each transaction prior to the interface with
                                    PeopleSoft Financials.
                       • Budget
                                o The State’s budget is developed in BDIS and once approved
                                    by the State Legislature and signed by the Governor; it will
                                    be interfaced to PeopleSoft Financials.
                                o The expenditure information will be interfaced back to
                                    BDIS.
                       • Journal Entry
                                o The State intends to establish a policy requiring that most
                                    entries or corrections be made in the associated modules.
                                    However, it is expected that a spreadsheet interface will be
                                    utilized to provide a mechanism for various entries into the
                                    General Ledger module as necessary.
                       • Intergovernmental Vouchers (IV)




72                                                               Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                 o   The final IV solution has not yet been determined. There
                                     appears to be no simple solution in PeopleSoft Financials for
                                     this transaction.
                                 o   For the most part IV transactions represent payments from
                                     one organization (buyer) to another (seller). These payments
                                     could be for goods, services, or as a reimbursement of an
                                     amount paid to a third party by the seller on behalf of the
                                     buyer. Many of these transactions result from one
                                     organization paying for a service to a State vendor
                                     (telephone bill for example) on behalf of all the other State
                                     organizations. These situations involve multiple lines of
                                     funding detail and will require an interface to more than one
                                     module.
                                 o   It is likely that only four organizations acting as sellers will
                                     use the interface to charge buyer organizations for services
                                     or reimbursements.

               Change Impacts
               Examples of process changes are as follows. A rating of one (1) to five (5) has
               been assigned to each, with five (5) indicating an extremely significant impact
               and one (1) indicating little or no impact.
                 • Existing System Modifications (4): For the legacy systems that remain in
                     operation after the implementation of PeopleSoft Financials, there is a
                     significant change impact to consider. Many of these existing systems
                     support interface programs to provide information to DFMS as well as
                     receive updates from DFMS. Since the State intends to develop “standard”
                     transaction interfaces for the various transaction types, it will be incumbent
                     upon the owners of the legacy systems to provide the necessary
                     programming to utilize the transaction interface with their system. For
                     many State organizations that will require specific budget requests for
                     programmers or vendors.

               Open Issues
                  •    The State has not yet identified all the specific interface files that will be
                       used once PeopleSoft Financials is implemented: Twenty-four interface
                       “types” have been identified to handle our interface needs. However, the
                       State recognizes the need for additional interfaces types may be realized,
                       after further review. The State will continue analysis of required interfaces
                       until the arrival of the implementation Vendor and will complete the
                       analysis with the assistance of the Vendor.

       3.2.4   Data Conversion
               The State is currently in the process of identifying data conversion requirements.
               The State has not yet determined how much data will be converted into the new
               system upon implementation. Although, the State’s philosophy is to convert the
               minimal data possible to maintain data quality and reduce the conversion effort
               while meeting the financial reporting needs of the State. It is expected that
               historical data will largely remain in existing systems or in read-only systems for
               inquiry purposes.



Technical Requirements Section                                                                    73
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 The following table and supporting narrative provides an inventory of the
                 conversion data sets identified by the Project Team to date. The table identifies
                 the record type, the organization owning the record, the source system containing
                 the record, an estimate of the number of records to be considered for conversion,
                 a subjective evaluation of the quality of the data and a preliminary indication of
                 whether the approach to conversion will be manual (M), automated (A) or a
                 combination of the two. The narrative provides a description of each record set
                 and an overview of its contents.

                 Each of these data sets will be analyzed during the implementation project to:

                         Validate the inclusion of the data set in the conversion.
                         Identify selection criteria and field level detail for data to be converted.
                         Map the data to PeopleSoft Financials tables.
                         Cleanse the data to the maximum extent possible before conversion.
                         Document required translations and transformations of the data.
                         Load the data to the appropriate tables.
                         Validate the conversion results.

        Record Type        Owner              Source       Destination    Record     Quality   Approach
                                                                          Count
       Vendor           Accounting      DFMS               AP - Vendor     60,000      L         M, A
       Vendor - ACH     Treasurer       ACH Data Base      AP - Vendor      2,500      H         M, A
       Requisition      Multiple        OMS/BASIS             PO -          2,000      M          M
                        Organizations                      Requisition
       Open PO          Multiple        DFMS/BASIS/OMS         PO           62,000     H          A
                        Organizations
       Open             Accounting      DFMS                   GL           14,300     H          A
       Appropriations
       Fixed Asset      Accounting      DFMS                  AM           14,000      M          A
       General          Accounting      DFMS                  GL         Unknown       H         M,A
       Ledger
       PHRST            PHRST           HR, Payroll,           GL           10,000     H          A
                                        Benefits
       IRS Form         Accounting      DFMS               AP Module         7,000     M          A
       1099
       BACIS            DEDOT           BACIS             GL, PO, PV,    Unknown       M         M, A
       Appropriation                                       Projects
       File
       Account          DEDOT           BACIS                  GL            6,500     M         M, A
       Definition
       Table
       Open Item File   DEDOT           BACIS               GL, PO,      Unknown       M         M, A
                                                            Projects
       MAS 90           DEDOT           MAS 91              GL, AR       Unknown       M         M, A
       Grants           Multiple        DFMS                 Grants          900       M         M, A
                        Organizations


                 Vendor
                 This is the “official” vendor file maintained in DFMS and used in the majority of
                 transaction processing. This file primarily contains vendor name, address, tax ID
                 number and various vendor flags. The tax ID also serves as the unique vendor ID
                 when combined with an address code. This data structure produces a significant
                 number of duplicate vendor records. In addition, variants of vendor name



74                                                                     Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               produce additional duplicates. A stringent data clean up effort be required prior
               to the conversion to PeopleSoft Financials.

               Vendor – Automated Clearing House (ACH)
               This contains information about vendors who have elected to be paid via ACH.
               This file includes the DFMS vendor ID for association with data maintained in
               DFMS along with banking information needed for the ACH transaction.

               Requisitions
               There is currently no standard system for requisition processing. Requisition
               processing is manual and entered in DFMS as a purchase order except for a
               couple of organizations using OMS. The Department of Health and Social
               Services and Delaware Technical & Community College are currently using
               OMS for their requisition processing. This file primarily contains vendor name,
               address, description of items, accounting line, dollar amounts, etc.

               Open PO
               Outstanding balances on a Purchase Order at year end are automatically carried
               over into the next Fiscal Year in DFMS. Information to be converted includes
               the vendor ID, purchase order number, account codes, dollars amounts, etc. Due
               to the large volume of open purchase orders, conversion discussions will take
               place to include how organizations will be required to closeout all open Purchase
               Orders prior to implementation and establish new ones. This file includes the
               vendor name, address, accounting line, description and dollar amount.

               Open Appropriations
               Various appropriations within DFMS contain transactions that may span several
               years. Transactions include the budget, expenditures and revenues. This
               information is essential to the organization for financial and program reporting.
               A decision has not yet been made to determine how many years of data will be
               converted to PeopleSoft Financials.

               Fixed Asset
               The Fixed Asset Subsystem is maintained in DFMS and used to track items that
               are capitalized and included in the State’s financial reports. Assets are also
               maintained in the system that fall below the financial reporting threshold and are
               tracked for inventory purposes. The file contains descriptive information such as
               asset number, location, acquisition date, useful life, cost, etc. Data cleansing is
               recommended before the conversion takes place.

               General Ledger
               The State’s existing General Ledger database is used by all 338 departments.
               DelDOT maintains financial systems that interface with the current statewide
               mainframe accounting system. The State processes approximately 3 million
               documents and 8 million records each year. All General Ledger accounts will be
               converted to the new system at the time of implementation.

               Balance sheet of General Ledger accounts for assets and liabilities may be
               converted directly. It will be necessary to review the State revenue and object
               codes to determine whether they will be converted.


Technical Requirements Section                                                                   75
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



               PHRST
               PHRST is used by 338 departments to record human resources events, pay
               employees and provide data via interfaces of file outputs with many third parties,
               including a PeopleSoft Pension application used by the State Pension Office.

               The PHRST installation includes the Human Resources, Payroll and Benefits
               Administration modules. The State has just recently implemented the Time and
               Labor module with selected organizations and a roll out plan has been developed
               for implementation in all remaining organizations.

               In addition, the Payroll Accounting “bolt-on” is a custom solution designed to
               meet the requirements for the purpose of expensing costs incurred by the State
               during the biweekly payroll process. Costs incurred consist of earnings, benefit
               costs and other employment costs. The module’s accounting functions consist of
               an expense component, a posting/interface component and a reporting
               component. The most complex is the expense component. Its purpose is to
               prorate a cost and control the related funding information in order to address
               budgetary requirements, if needed at the organizational level. Therefore, data
               required to be converted will primarily relate to the accounting data (i.e. funding
               code, location code, object code, etc.)

               IRS Form 1099
               Implementation of PeopleSoft Financials is planned for the start of the State’s
               Fiscal Year. Since 1099 issuance and reporting is based on a calendar year,
               vendor and payment data from DFMS for the first half of the calendar year must
               be combined with PeopleSoft data for the remainder of the year to enable 1099
               processing.

               The data files for the printing of 1099s reside in DFMS; however, much of the
               data is entered from outside sources for day care providers, prison inmates, the
               payroll system and those organizations that pay vendors from an internal bank
               account. Data elements include name, address, tax identification number, dollar
               amount and type of income.

               BASCIS Appropriation File
               The BACIS Appropriations File (Balance Forward Accounts), is comprised of
               five levels of accounting records as follows:
                      • Level 1: contains authorized, allotted, and un-allotted information by
                          each major capital funding category. This information is supplemented
                          by manual/Excel spreadsheets which will be the source of detail data
                          for conversion. Level 1 information may not need to be converted.
                      • Level 2: contains project/phase information by funding participation
                          source and by organizational codes that are allowable to charge the
                          project/phase. This expenditure information should probably be
                          converted.
                      • Level 3: contains project/phase information by a more detailed funding
                          source and budget limits for the “S”, State Share, and “J”, Other Share.
                          Budget and expenditure data should probably be converted.




76                                                                Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                       •   Level 4: contains project/phase information by federal funding source,
                           and provides for the federal highway billing process. Project phase
                           billing values of Federal Highway Administration (FHWA)
                           apportionments agreement amounts, project adjustments, previous
                           payments (received amounts), and some project attribute information
                           may be considered for conversion.
                       •   Level 5: within BACIS contains State appropriation funding balances.
                           Accounts in Level 5 are operating budget category accounts,
                           Appropriated Special Funds, non-appropriated special funds, and
                           capital project funds. Budget and expenditure information should
                           probably be converted.

               ADT (Account Definition Table)
               The Account Definition Table acts as a “chart of accounts for BACIS for projects
               only. This table Shows project and phase (activity), appropriation, funding line,
               fiscal year, and whether a fully State project or if it participates with the federal
               government.

               Open Item File
               The BACIS Open Item File contains 3 different types of encumbrances as
               follows:
                     • Contract Encumbrances: Used currently in BACIS to record all
                        construction and consultant contracts/agreements. These are not
                        recorded in DFMS but could perhaps be recorded in PeopleSoft
                        Financials as purchase orders.
                     • Purchase Orders: These POs exist currently in BACIS and DFMS but
                        with more detailed account information in BACIS. Therefore,
                        DelDOT POs will be converted from BACIS.
                     • Project Adjustments Related to FHWA Billings: The conversion will
                        be manual.

               MAS 90
               MAS 90 is a Windows-based application that is modular. DelDOT uses its
               general ledger and bank reconciliation functionality to mirror the activity in
               approximately 60 bank accounts for the Transportation Trust Fund.

               Almost every account has seven core general gedger accounts: cash,
               investments, master notes, fund balance, income, transfers in, and transfers out.
               Other general ledger accounts include principal, interest, commissions, revenues,
               and various liabilities and expenditures. The following represents how many
               general ledger accounts are associated with each section:
                     • Assets – 364
                     • Liabilities – 40
                     • Fund Balance – 99
                     • Revenue – 146
                     • Expenditures – 135
                     • Transfer In – 239
                     • Transfer Out - 237




Technical Requirements Section                                                                   77
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               These accounts are then rolled up into a trial balance and custom financial
               statements used to populate excel spreadsheets to produce quarterly financial
               statements.

               The verbiage “section” above refers to different parts or sections of the Balance
               Sheet produced and managed by the Trust Fund Administrator. For example,
               there are 364 general ledger accounts that are considered assets and are listed
               under the Asset section of the Balance Sheet.

               An assessment on which MAS 90 tables would require conversion has not been
               undertaken. However, data from MAS 90 will be converted at least to the Cash
               Management, General Ledger, and Accounts Receivable modules.

               Grants
               The State does not currently have an electronic medium to manage the grant
               proposal process. All grants and supporting documentation (federal and private)
               are a collection of Word, Excel, and Access information. The Office of
               Management and Budget retains the only known database for federal grants. All
               federal grants are tracked in DFMS through a unique grant ID and assigned a
               reporting category. Data conversion will need to include conversion of prior year
               transactions and available balances. Since the State manually collects grant
               proposals today, a “going forward” approach will be used to enter grants which
               started prior to implementation. Reporting categories will need to be assigned
               project identification numbers and those grants with multiple reporting categories
               will need to be mapped to budget items.

               Change Impact
               The change impact to data conversion is as follows. A rating of one (1) to five
               (5) has been assigned to each, with five (5) indicating an extremely significant
               impact and one (1) indicating little or no impact.
                     History Fragmentation (2): Organizations will be faced with the task of
                     gathering both current (from PeopleSoft Financials) and historical (from
                     legacy systems) data to prepare various reports and perform analysis of
                     their data. This is a challenge to implementing the whole system.

               Open Issues
                       As noted, the State has adopted a philosophy of converting the minimal
                       data possible to maintain data quality and reduce the conversion effort
                       while meeting the financial reporting needs of the State. While the State
                       believes the above inventory of conversion data sets, as identified by the
                       Project Team to date, represents the State’s major data conversion
                       requirements, additional analysis of the State’s application data may
                       identify other conversions that will be needed. Additional work will be
                       required to address data quality, data integrity and what data needs to be
                       cleansed and transformed. Furthermore, a determination of how much
                       historical data needs to be captured and the mechanism for accessing the
                       historical data is also unresolved at this time.




78                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


       3.2.5   Reporting
               Through the implementation of PeopleSoft Financials, the State seeks to achieve
               more accurate, timely and more accessible financial information with measurable
               improvements in efficiency and effectiveness through the implementation of best
               practice functions contained in the application. It is the State’s vision to deliver
               the Right information, to the Right people, in the Right format, at the Right time.
               As a result of the implementation of PeopleSoft Financials an appropriate
               reporting strategy will be developed.

               With PeopleSoft Financials, the State will move away from a batch-oriented
               reporting system toward a system where the majority of management information
               is retrieved through direct access to real-time transactions, online reports, and
               stored queries. Batch paper-centric reports will be the last choice for retrieving
               financial information.

               Functional Scope
               The State has assembled a listing of the various report types produced in the
               current system. This information is summarized below but more detailed
               information can be found in Appendix 8.

                   Report Category                                                              Estimated
                                                                                                Count
                   GAAP Reports                                                                         37
                   To convert State financial data from cash basis to modified accrual and
                   full accrual in compliance with governmental accounting standards to
                   produce the Comprehensive Annual Financial Report.
                   Fixed Asset Reports                                                                 31
                   To document and extract information on purchased items designated
                   by cost amount and DFMS object code using a statewide standard and
                   an optional organization standard using more stringent parameters.
                   Operational Reports                                                                173
                   To provide annual, quarterly, monthly, weekly and daily transactions,
                   summary of transactions, and system maintenance information.
                   1099 Reports                                                                        14
                   To create and verify IRS Form 1099s for payments made for services
                   with data filtered by object code and vendor type.
                   Grant Reports                                                                       11
                   To report information relating to federal grants. Data is filtered by
                   State Application Identifier (SAI) and Catalog of Federal Domestic
                   Assistance (CFDA) numbers.
                   Bond and Debt Reports                                                               12
                   To manage debt service obligations, distribute debt service to
                   organizations, provide outstanding indebtedness information for bond
                   sales and financial statements and document movement of debt
                   obligations.
                   Other Management Reports                                                            50
                   To provide miscellaneous reports. Typically existing reports with
                   additionally criteria such as a date range or end date.
                                                                                       Total:         328




Technical Requirements Section                                                                         79
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               Reports in Delaware
               All financial reports produced through DFMS are batch reports produced using
               procedural languages like COBOL and ADABAS-Natural. A sub-set of these
               reports (all end-user reports) are distributed through Mobius Document Direct,
               which offers limited ad-hoc analysis and reporting capabilities to users who have
               been trained in these products. OMS users are able to access additional reports
               written in Crystal Reports and to create their own reports using a variety of query
               and reporting tools. Traditional reporting is supplemented by numerous home-
               grown databases and Excel spreadsheets.

               Organizational Scope and Responsibilities
               The ability to retrieve and view reports will be granted to users in all 338
               departments.

               Change Impacts
               The change impact to reporting is as follows. A rating of one (1) to five (5) has
               been assigned to each, with five (5) indicating an extremely significant impact
               and one (1) indicating little or no impact.
                       New reporting tools (3): Many of the State’s reporting needs are met in
                       the current environment through the use of a data extract from the DFMS
                       and the use of spreadsheets and database tools. After PeopleSoft
                       Financials is implemented, other more robust tools will be available but
                       the users will need training in their efficient use. Some organizations
                       may elect to continue with their previous reporting solutions but that too
                       will require an expenditure of resources to make the required changes in
                       interfaces to access the data from the new data extracts.

               Open Issues
                       The State has not undertaken a thorough review of the organization’s
                       reporting requirements. An initial listing of current reports and report
                       types has been assembled, however, a full review of the reporting needs
                       must be conducted to design the most effective reporting strategy. The
                       State will begin the review prior to implementation and complete it with
                       the assistance of the successful Vendor.
                       Whether the reporting strategy will include a reporting instance of the
                       current PeopleSoft version or the use of PeopleSoft EPM version 8.9 has
                       not yet been determined. It is expected that EPM version 8.9 can meet
                       the ad-hoc requirements that have been identified in Appendix 9. The
                       State expects to begin the analysis prior to implementation and complete
                       it with the assistance of the successful Vendor.




80                                                                 Technical Requirements Section
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



4. Management Requirements

   4.1. Management Topics
          This section addresses a number of management and technical topics of importance to
          this project. Within “4.1 Management Topics” the structure of each topic is the same,
          describing:
                    The requirements to be met by the Vendor in the fulfillment of this project
                    (including a list of expected deliverables and work products);
                    Background information on work completed to date by the State, which is
                    relevant to the topic;
                    Preferences of the State with regard to the nature of the work to be performed
                    and the relative responsibilities of State and Vendor staff; and
                    A description of the information to be provided by the Vendor in their
                    proposal.
         The responsibility matrix under each topic (State Preferences) describes the working
         relationship expected by the State for each topic. The State is willing to entertain
         alternate working relationships. In the response to each topic, the Vendor must address
         any changes to or expansion of these relationships and provide the rationale for any
         change.

       4.1.1.    Project Approach and Plan
                 The Vendor will be responsible for development and maintenance of the
                 project task plan and schedule, based on the approach, methodology and tools
                 used successfully by the Vendor in previous engagements. The Vendor will
                 be responsible for regular reporting of progress against the plan, recommending
                 corrective actions to be taken in the event of unanticipated changes to the plan
                 or schedule, and regular updates to the plan and schedule to accommodate any
                 changes.

                       Expected Deliverables and Work Products:
                              Final Project Work Plan (D)
                              Project Status Reports (W)
                              Workshop Summaries (W)

                 Background
                 In July 2005, the State completed development of a draft project task plan and
                 schedule. Although this was a detailed plan, it was developed primarily for
                 State resource planning and budgeting purposes only and is therefore not
                 provided with this RFP. The State recognizes that the final plan must be
                 developed by the implementation Vendor. Key characteristics of this plan
                 include a “big bang” approach to implementation and implementation at the
                 start of a fiscal year.

                 State Preferences
                 Through our Request for Information (RFI) process, the State found that the
                 majority of potential implementation Vendors have developed methodologies



Management Requirements                                                                           81
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 that are customized to PeopleSoft Implementations. To minimize cost and
                 reduce risk, the State believes it is important for the successful Vendor to use
                 their methodology, applying it to the particular needs of the State of Delaware.
                 The “how” of the project should, therefore, be provided by the Vendor, using a
                 proven methodology, approach and work plan that the Vendor has used
                 successfully in other PeopleSoft implementations and described in the Vendor
                 response to this RFP.

                 The State believes it is in the best interest to implement an ERP system
                 following an aggressive schedule, but not so aggressive as to significantly
                 increase risk or sacrifice quality. A primary purpose of the new system is to
                 replace the existing functionality of the DFMS, OMS and BACIS systems (see
                 Section 2). The replacement of BACIS places a constraint on the project
                 schedule, since the BACIS replacement should be in place by July 1, 2008, in
                 order to avoid extensive modifications to BACIS. However, modifications can
                 be made to BACIS to extend its life if the project plan proposed by the Vendor
                 extends beyond July 1, 2008.

                 The State prefers a “big bang” approach (all organizations, all modules), and
                 roll-out at the start of a fiscal year. The State will consider alternative
                 proposals (phased, different time frame, different roll-out date) if they can be
                 shown to substantially address the objectives of reducing risk, replacing
                 existing systems and providing additional benefits to the State.

                 Responsibility Matrix (Vendor Primary)
                                              Vendor                            State
                                     Develop the project plan (MS    Support plan development
                       Development




                                     Project)                        Assign State Staff
                                     Develop the plan narrative      Approve the plan
                                     Assign Vendor Staff



                                     Evaluate and report on          Manage execution of the plan
                                     progress                        Assist in progress reporting
                       Execution




                                     Update the plan                 Approve updates,
                                     Identify problems, issues and   recommendations and
                                     successes                       corrective actions
                                     Recommend corrective
                                     actions

                 Vendor Response
                 The technical proposal must describe the Vendor’s philosophy, methodology,
                 and approach to this implementation project and to project management;
                 describe the methods, tools, and techniques the Vendor intends to use in
                 providing project management services; provide a description of key methods
                 or technique; provide a high-level project plan and schedule identifying major
                 milestones and deliverables; describe the Vendor’s approach to managing the
                 schedule, controlling costs, mitigating risk, and limiting "scope expansion" to
                 the project. The State expects both the project plan and the schedule to undergo
                 significant refinement during the planning phase of the project. For each major
                 milestone and deliverable, the Vendor shall identify the roles and


82                                                                           Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 responsibilities of the Vendor and State staffs in the completion of each
                 deliverable.

                 The work plan and schedule must assume the big bang, and start-of-fiscal year
                 roll-out (baseline plan). However, the technical proposal may also present one
                 alternative approach. If an alternative is presented, it must include a high-level
                 comparison to the baseline, and discuss the non-financial costs and benefits to
                 the State of adopting this alternative compared to the State’s preferred
                 approach.

                 The cost proposal must include the costs of any software licenses for tools
                 proposed by the Vendor. If an alternative is presented, the cost proposal must
                 include a comparison of the PeopleSoft Financials costs for the alternative and
                 the baseline.

       4.1.2.    Project Staffing and Qualifications
                 The Vendor is responsible to provide and maintain sufficient numbers of
                 qualified management, technical and functional staff to meet the needs of this
                 project and provide the services outlined in the Vendor’s response to this RFP.
                 The Vendor is also responsible for development of a detailed resource plan for
                 both Vendor and State staff, which defines the staffing and staff organization,
                 identifies all team participants and their roles and responsibilities. The Vendor
                 must identify key staff and will be required to commit these staff for the life of
                 the project except for legitimate personal reasons, employment termination,
                 acts of God or mutual agreement between the State and the Vendor. Any
                 replacement of key staff should have skills and qualifications equal to or
                 greater than the individual that departed. In any case, the State reserves the
                 right to interview and agree or not agree on the replacement.

                       Expected Deliverables and Work Products:
                              Detailed Resource Plan (D)

                 Background
                 Based on past experience with ERP implementation projects, discussions with
                 other PeopleSoft states, and estimates developed during the reengineering
                 phase of the project, the State has developed a staffing plan for State staff to
                 support the implementation effort. The State is planning to provide a full-time
                 staff of 43 individuals to this project, as shown in the Figure 1. Of this
                 number, 13 make up the current Project Team and an additional 19 will be on
                 board by June 30, 2006. The final 11 will be hired during the first year of
                 implementation. In addition to the full-time staff, other staff will be added to
                 the project to support testing, training and roll-out. The numbers of these
                 additional staff will be determined during the implementation project.




Management Requirements                                                                         83
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




Figure 1 - Project Organization

                 The State has selected top managers from the Department of Finance, the
                 Department of Technology and Information, and the Office of Management
                 and Budget to serve as project sponsors who will provide regular oversight of
                 project activities and who will coordinate activities with managers in
                 departments across the State. A PeopleSoft Financials Advisory Committee
                 has been established and staffed with key business managers from across the
                 State and charged with bringing an operating perspective to project
                 management. The Change Management Team Lead from DTI will provide
                 oversight and quality assurance for the Change Management activities of the
                 project. In addition to the direct project staff, the State has recruited
                 approximately 80 individuals from the user organizations to serve as
                 organization coordinators to participate in project activities, provide subject
                 matter experts as needed, coordinate data collection efforts and be the focal
                 point for Change Management and communications activities.

                 State Preferences
                 The State has a strong preference for consultants with previous experience with
                 the implementation of PeopleSoft Financials in a state government
                 environment as well as an excellent understanding of their particular area(s) of
                 responsibility. To obtain the best consulting team possible, the State is willing
                 to be flexible in the staging of consulting assignments and will work to
                 minimize the time between submission of proposals and start of the contract in
                 order to ensure that the most qualified team available is assigned to the project.




84                                                                     Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (Shared)
                                                Vendor                               State
                                     Provide and maintain               Provide and maintain sufficient
                                     sufficient numbers of qualified    numbers of qualified
                                     management, technical and          management, technical and
                                     functional staff                   functional staff
                                     Provide the services outlined      Support plan development


                       Development
                                     in Vendor’s response to RFP        Identify all team participants
                                     Develop detailed resource plan     (roles and responsibilities) and
                                     for Vendor and State               commit them for life of project
                                     Identify all team participants     Select top manager from DOF,
                                     (roles and responsibilities) and   DTI and OMB to serve as
                                     commit them for life of project    project sponsors (oversight)
                                                                        Staff PeopleSoft Financials
                                                                        Advisory Committee
                                                                        Provide Change Management
                                                                        Team
                                     Assign staff                       Assign staff
                                     Review and update plan             Interview and
                                     Present replacement                approve/disapprove
                       Execution




                                     candidates and credentials         replacement staff
                                                                        Work with project sponsors,
                                                                        PeopleSoft Financials Advisory
                                                                        Committee and Change
                                                                        Management Team
                                                                        Approve resource plan

                 Vendor Response
                 Vendors and their subcontractors shall describe the proposed management
                 structure and identify key personnel who will be assigned to this project.
                 Resumes for all key personnel shall be included along with three personal
                 references. At a minimum key staff will include the Vendor Project Manager,
                 all Technical Leads and all Functional Leads, and the training, testing and
                 Change Management leaders.

                 Because project methodologies may differ, the proposal must outline State
                 staffing needs based on the Vendor’s methodology within the parameters
                 outlined in this RFP and describe the recommended working and reporting
                 relationships between State and Vendor staff.

       4.1.3.    Business Process Reengineering and Workflow Design
                 The Business Process Reengineering phase was used to develop and list the
                 capabilities that the State’s future financial business processes, organization
                 and technology must have in order to implement a “near vanilla” PeopleSoft
                 Financials application. Using the products developed during the reengineering
                 phase of the project as a starting point, the Vendor is responsible for producing
                 the final business process documents, which describe the processing steps and
                 process flow for each business process included in the functional scope of the
                 system. These documents will be used to support unit, system and acceptance
                 testing; development of training materials; and development of end-user
                 documentation.




Management Requirements                                                                                    85
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                       Expected Deliverables and Work Products:
                              Final Business Process Documents (D)
                              Final Workflow Requirements (D)
                              Workshop Summaries (W)

                 Background
                 The State has reviewed current business operations, identified reengineering
                 opportunities, and developed high level global business processes for the
                 financial processes as they relate to the implementation of a PeopleSoft
                 environment. This provides a foundation for future implementation design and
                 transition management approaches—this effort was not intended to be the final
                 version of future design, but a framework for implementation discussions.

                 The Financial Reengineering Project Vendor has assisted the State in
                 reengineering its financial processes to achieve a common end-to-end
                 integrated set of processes. These processes are the first step to minimize
                 customizations and implement a “near vanilla” PeopleSoft solution. The goal
                 of this effort was to develop a plan for the PeopleSoft implementation project
                 that would:
                   • Define future cross-functional processes critical to business direction,
                        goals, and benefit realization.
                   • Align the State with standard PeopleSoft functionality to optimize
                        inherent best practices.
                   • Identify touch points between the new processes and PeopleSoft
                        Financials.
                   • Define future cross-functional processes critical to business direction and
                        goals.
                   • Confirm Fit/Gap between processes and software.
                   • Identify and communicate process areas that will require Change
                        Management.
                   • Identify business process areas that will have an impact on the
                        organization.
                   • Identify and document problems, issues and opportunities, and assign the
                        State with responsibility for action items resulting from discovery.
                   • Leverage the State goals and identify the appropriate key performance
                        indicators (KPIs).
                   • Identify and document risks to the State and risks to the project.
                   • Identify the organizational changes necessary to align with the new
                        processes.

                 The plan Future Business Process Design documents reengineered business
                 processes and consists of 44 activity level 3 process flows, 160 detailed end to
                 end business process diagrams and 47 sample use cases. Selected process
                 flows, business process diagrams and use cases are provided, for reference, in
                 Appendix 1 of this RFP.

                 State Preferences
                 As previously mentioned the State recently completed a business process
                 reengineering exercise. This work documented current and future business


86                                                                     Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 processes. An important element of this project will be the implementation of
                 reengineered business processes utilizing PeopleSoft Financials application and
                 best practices. Business process reengineering and workflow design activities
                 will be executed by the selected Vendor with the aim of training State
                 resources in the execution of the tasks. It will be expected that the selected
                 Vendor will develop the design specifications during this business process
                 reengineering and workflow design step in conjunction with the assigned
                 application and module specialists from the State. It is also expected that the
                 Vendor would fully utilize existing documentation and provide the approach
                 methodology.

                 It is expected that this business process reengineering work will occur
                 contemporaneous with the development of design and configuration
                 documentation (discussed in topics 4.6.2 and 4.6.3) and that the Vendor will
                 work with the State to continue the work of process reengineering to align State
                 business practices with the design for the new system. The process documents
                 produced as a result of this activity will be used to develop or modify policies
                 and operating procedures for State user organizations. In addition, the Vendor
                 will work with the State to design organization and operating procedures to be
                 used for the on-going operations and management of the system.

                 Responsibility Matrix (Shared)
                                               Vendor                            State
                                     Produce the final business      Develop high level global
                                     process document (process       business processes for the
                                     steps and flow)                 financial processes relating to
                                     Document supports unit,         implementation of PeopleSoft
                                     system and acceptance testing   environment
                                     Train State resources to        Develop plan for PeopleSoft
                       Development




                                     execute tasks                   implementation project with
                                     Develop design and              preliminarily reengineered
                                     configuration documents to      business processes
                                     continue process                Develop or modify policies and
                                     reengineering (align State      operating procedures for State
                                     practices with design for new   user organizations
                                     system)                         Design organization and
                                     Design organization and         operating procedures for on-
                                     operating procedures for on-    going operations and
                                     going operations and            management of the system
                                     management of the system

                 Vendor Response
                 The State requests that the Vendor include in its response an approach to
                 review the business process documentation and recommended methodology for
                 implementation and documentation of the configured business processes and
                 workflows for the PeopleSoft Financials application. Key topics that should be
                 covered include:
                   • Analyzing existing documentation including reengineered business
                       processes and develop a process fit/gap analysis.
                   • Conducting process workshops to complete reengineered business
                       processes for “gapped” processes.



Management Requirements                                                                                87
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                   •    Conducting business process workshops to design workflow
                        specifications.
                   •    Converting current reengineered business process documentation into
                        configured business processes and documented workflows for the
                        PeopleSoft Financials application.
                   •    Ensuring that users are trained and capable of executing workflows.

                 The Vendor must address how the State will participate in this process, how
                 many State staff will be needed and for what timeframe, and if process
                 modifications require changes to State policy or laws, how much time is
                 recommended for the State to consider these changes without delaying the
                 project.

       4.1.4.    Issues and Risk Management
                 The Vendor is responsible for reviewing and recommending changes to the
                 State’s issue and risk management processes and assisting the State Project
                 Manager in the management and maintenance of these processes.

                 Every large project that is undertaken has associated risks. A focus in every
                 ERP implementation project is management of cost, schedule and performance
                 risk. Project risks are uncertainties, liabilities or vulnerabilities that may cause
                 a system implementation project to deviate from the defined plan. The State
                 seeks a clear means to compare planned versus actual status, including
                 percentages, at a sufficiently detailed level to ensure the State can adequately
                 monitor the progress of the project.

                       Expected Deliverables and Work Products:
                              Issue and Risk Management Recommendations (W)

                 Background
                 During the Reengineering phase of the project, the State developed a number of
                 processes and tools for managing project issues and risks. An issue was
                 defined as any problem that will impact the PeopleSoft configuration,
                 implementation or impede the progress of the project and requires a decision
                 for resolution; if the issue cannot be resolved by the Project Manager and
                 Project Team, escalation to project sponsors is required. Issues were
                 categorized (e.g., technical, functional) and tracked within a SharePoint
                 database. Key issues were brought to project status meetings for discussion
                 with the State’s leadership where they were resolved or escalated to the
                 executive sponsors.

                 Risk is not a problem in the present tense. It is a potential future problem or
                 threat. There are fundamentally only three types of risks: schedule risks
                 threaten to delay the project; cost risks threaten to increase use of money and
                 resources; and performance risks threaten to degrade the quality or
                 functionality of the deliverables or product. There are four things that can be
                 done about a risk: 1) avoid it by removing the root cause to eliminate either the
                 probability or impact; 2) mitigate it to reduce the probability or the impact (in
                 effect, reducing the grade of the risk); 3) transfer it by making it someone
                 else’s problem (e.g., transferring a risk of budget overrun by entering into a


88                                                                       Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 fixed price contract for implementation with clearly defined and observable
                 performance measures for the Vendor.); and 4) accept it and do nothing, if the
                 probability of an impact is low enough to ignore. The Project Team worked to
                 identify, prioritize and find ways to, avoid, mitigate, transfer and control risks
                 according to their probability of impact and occurrence.

                 State Preferences
                 Through our Request for Information (RFI) process, the State found that
                 potential implementation Vendors reporting the following as the top factors
                 (broadly defined) for managing risks: 1) project leadership (sponsors and
                 project management support and timely decision making); 2) control over
                 scope creep; 3) creation of management plans to address risk and other items;
                 4) stable technical infrastructure ; 5) communication ; 6) availability and
                 sufficiency of resources (human and financial); and 7) use of particular
                 methodologies. These potential implementation Vendors also preliminarily
                 and generically identified the top risks that may face implementation projects:
                 1) lack of scope control; 2) implementation of poor performance; 3) lack of
                 proper data conversion; 4) schedule slippage; and 5) lack of dedicated client
                 resources.

                 The State believes that it is essential to proactively manage those issues and
                 risks that face this implementation project so that it can be completed on
                 schedule, within the project budget, and with high quality. Potential
                 implementation Vendors should be prepared to identify how they would
                 address various issues and risks that may threaten the cost, schedule or quality
                 of the implementation effort. Risk management plans and processes need to
                 identify, describe and classify the issues and risks, identify potential responses
                 and lay out the action steps for the responses. In addition, the plans and
                 processes should identify contingency steps that would be pursued if the initial
                 response is unsuccessful.

                 Responsibility Matrix (State Primary)
                                                Vendor                           State
                                     Review and recommend            Communicate current issue and
                                     changes to the State’s issue    risk management procedures
                                     and risk management             and status.
                       Development




                                     processes                       Develop issue and risk
                                     Assist in the implementation    management processes
                                     of any recommended changes      Approve issue and risk
                                     Train the Project Team in the   management plans and systems
                                     issue and risk management
                                     procedures for these changes
                                     Accept responsibility for
                                     assigned risk




Management Requirements                                                                              89
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                             Vendor                              State
                                   Assist State Project Manager     Manage and maintain issue and
                                   in the management and            risk management processes
                                   maintenance of these             Identify and document issues
                                   processes                        and risks




                       Execution
                                   Identify and document issues     Participate in issue analysis and
                                   and risks                        resolution
                                   Participate in issue analysis    Participate in risk avoidance,
                                   and resolution                   mitigation, transfer or
                                   Participate in risk avoidance,   acceptance
                                   mitigation, transfer or
                                   acceptance


                 Vendor Response
                 The Vendor shall describe in its response its issue and risk management
                 strategy, including a detailed description of its methodology, plan or process,
                 and the respective responsibilities of the State and the Vendor. This response
                 shall also contain a description of any templates, flows, functions, and
                 communications that are available to project managers to use in risk
                 identification, risk analysis, risk mitigation, risk reporting and risk tracking and
                 how these elements are used to address issues and risks associated with cost
                 management, schedule management and performance (quality) management.
                 The Vendor shall also provide examples of how its methodology, plan or
                 process is applied to no less than three, nor more than five, actual
                 implementation risks and identify the project risk event, probability, impact,
                 mitigating mechanisms, strategies and plans and responsibility (State or
                 Vendor).

       4.1.5.    Change Management
                 The State of Delaware has accepted the importance of Change Management as
                 an integral part of Project Management. The PeopleSoft Financials Project has
                 supported this concept through the placement of a dedicated PeopleSoft
                 Financials Change Management Specialist assigned to the Project Team. The
                 Vendor will be working under the direction of this PeopleSoft Financials
                 Change Management Lead and will be using the Change Management
                 methodology already in place. The Vendor will be responsible for
                 documenting the changes in structure, roles, and responsibilities needed for
                 implementation and operation of the new system; for assisting the State in the
                 readiness activities to engage this change; and for preparing the transition plan
                 required to bring about these changes.

                 The Vendor will be responsible for facilitating the development of audience
                 appropriate materials along with the Project Manager and Project Team
                 members in order to communicate these changes described above to the State
                 financial users and stakeholders.

                        Expected Deliverables and Work Products:
                               Change Management Process Recommendations (W)




90                                                                           Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Background
                 In order to prepare for the successful implementation phase of the project,
                 several key documents were completed in line with the State’s Change
                 Management methodology.

                 In August 2005, the State completed a draft Knowledge Transfer Plan that was
                 used to guide staff training in PeopleSoft from Oracle University and to
                 identify desired work experience for project staff during the reengineering
                 phase of the project. This plan is discussed in more detail in Section 2 of this
                 RFP and in Appendix 1.

                 The work continued in the fall with an inventory of State employees that
                 currently execute financial processes. Simultaneously, a financial skills
                 assessment was conducted for those employees. As a result of this End User
                 Inventory and Skills Assessment task, the Skills Gap Analysis Summary
                 Report was compiled to provide an assessment of current skill level of staff in
                 their financial positions and identification of the additional knowledge, skills
                 and abilities required to perform well in a PeopleSoft environment.

                 Another aspect of the Change Management work focused on understanding
                 potential issues and concerns of all stakeholders impacted by this
                 implementation. To gather this information, a Change Awareness and
                 Readiness Assessment Survey was conducted for a sample of the users
                 identified as a result of the earlier inventory process. The questions assessed
                 the State employee’s readiness and ability to absorb the changes designed for
                 the financial processes and organization transition. The data from the survey
                 has been analyzed and documented in a report and the results have been
                 incorporated into the PeopleSoft Financials Project Communication Plan (see
                 Appendix 3).

                 Another task accomplished was the development of a document that organizes
                 the PeopleSoft Financial Role descriptions and position definitions. During the
                 implementation phase, it is expected that these roles will again be examined
                 and used as a security building block to link permission lists to State
                 employees.

                 These initial activities, along with previous phase documentation and financial
                 organization decisions, served as the foundation for the development of the
                 Education and Training Strategy and Plan documents. The strategy, developed
                 through a series of workshops and meetings where all aspects of training
                 alternatives were discussed and decisions made, provided a blueprint for the
                 direction of the training plan. The training plan links back to both the Financial
                 End User Inventory and Skills Gap Analysis Summary to define who needs to
                 receive what training. The training requirements are outlined in Appendix 10
                 of this document.

                 Accomplishing this work prior to the implementation phase better enables the
                 Change Management team to focus on development and delivery of training,
                 organization transition, and the critical communications activities that will
                 support a successful implementation of PeopleSoft Financials processes.



Management Requirements                                                                        91
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                 State Preferences
                 Just as important as the project methodology is the approach to Change
                 Management. It is expected that the Vendor will use the State’s documentation
                 described above as a guide in the steps initiated for PeopleSoft Financials’
                 move towards implementation. These documents are detailed in Section 2 of
                 this RFP and in Appendix 1.

                 Responsibility Matrix (State Primary)
                                                Vendor                            State
                                     Document the changes in          Work with Vendor using the
                                     structure, roles, and            Change Management
                       Development



                                     responsibilities needed for      methodology
                                     implementation and operation     Undertake readiness activities
                                     of new system                    to engage in change
                                     Prepare transition plan to
                                     bring about changes
                                     Address change impacts by
                                     module
                                     Use existing Change              Facilitate the development of
                                     Management methodology           audience-appropriate materials
                                     Assist State in readiness        along with Vendor
                       Execution




                                     activities to engage in change
                                     Facilitate the development of
                                     audience-appropriate materials
                                     along with Project Manager
                                     and Project Team members


                 Vendor Response
                 The proposal must describe Vendor’s Change Management methodology, the
                 approach that will be used in the project and a discussion of how this approach
                 will ensure confidence in the ability of the affected State employees to realize
                 success throughout the PeopleSoft Financials implementation.

                 This description must identify State and Vendor responsibilities for the Change
                 Management objectives. The work plan must identify key milestones in this
                 process, define a mechanism for tracking progress, and identify major
                 deliverables of this process. The response must include a comprehensive
                 strategy of how audience-appropriate materials for the delivery of messages
                 identified in the Communication Plan will be developed. In addition, the
                 response needs to provide a plan of action to address the Change Impacts
                 identified within the context of each PeopleSoft Financials module.

       4.1.6.    Communication Plan
                 The Vendor will be responsible for facilitating and reviewing audience-
                 appropriate materials along with the Project Manager and Project Team
                 members for the delivery of messages identified in the Communication Plan.
                 In addition to the change impacts acknowledged for each module within the
                 contents of this RFP, it is expected that other functional impacts will be
                 identified during the implementation phase as a result of process and



92                                                                            Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 procedural changes. The Vendor will be responsible for developing the
                 materials for all these impacts as they become a part of the evolving
                 Communication Plan. The Vendor will be responsible for assisting the State in
                 executing all message deliveries.

                       Expected Deliverables and Work Products:
                              Communication Plan Review Recommendations (W)
                              Communication Plan Updates (W)
                              Communications Materials (W)

                 Background
                 In preparation for PeopleSoft Financials, the State realizes that communication,
                 early and often, is key to a successful implementation. Communications focus
                 on building awareness of the business reasons for the change and move toward
                 focusing on the “how” to change. Functional impacts (differences between an
                 ‘as is’ and ‘to be’ state) are identified and documented then communicated to
                 end users. As part of this essential task, the State has produced the PeopleSoft
                 Financials Project Communication Plan. This plan represents a starting point
                 only; as a living document in a dynamic environment, it will evolve.

                 The Communication Plan provides an organized framework for managing and
                 coordinating the wide variety of communications that will directly or indirectly
                 take place during the course of implementation. Such a framework will ensure
                 that the PeopleSoft Financials Reengineering Project Team provides relevant,
                 accurate, consistent and timely information to the appropriate stakeholders.
                 Throughout the project lifecycle, specific communication messages will be
                 delivered to the appropriate audiences in order to build awareness of the
                 project, gain understanding of the need for the project, help prepare for the
                 project, and eventually become accustomed to the changes brought about by
                 the project.

                 Organizing the messages for the Communication Plan at this early stage better
                 enables the Change Management team to focus on the critical communications
                 activities that will support a successful implementation of PeopleSoft Financial
                 processes.

                 State Preferences
                 Just as important as documenting the functional impacts within each module
                 and tracking announcements of project news, timing and the appropriate mode
                 for delivery of messages is critical to managing risk and realizing success of
                 the project. The State has already begun this process and believes it is a vital
                 component that must continue throughout the life of the project.

                 It is expected that the Vendor will use the Communication Plan described
                 above as a guide in the steps initiated for the delivery of messages about the
                 PeopleSoft Financials implementation. This document is attached in Appendix
                 3.




Management Requirements                                                                        93
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (State Primary)
                                               Vendor                            State
                                     Develop audience-               Develop audience-appropriate
                                     appropriate materials along     materials along with Vendor
                                     with the Project Manager and    Produce the PeopleSoft




                       Development
                                     Project Team members            Financials Project
                                     Identify functional impacts     Communication Plan
                                     and develop materials           Identify the timing and
                                     covering these impacts          appropriate mode for the
                                     Recommend plan                  delivery of messages
                                     enhancements and
                                     improvements
                                     Update communications plan      Provide relevant, accurate,
                                     Assist the State in executing   consistent and timely
                       Execution




                                     all message deliveries          information to appropriate
                                                                     stakeholders
                                                                     Execute all message deliveries



                 Vendor Response
                 The proposal must describe Vendor’s communications delivery methods, the
                 approach that will be used in this project and a discussion of how this approach
                 will ensure confidence in the ability of the affected State employees to realize
                 success throughout the PeopleSoft Financials implementation. The response
                 must include a comprehensive description of how audience appropriate
                 materials for the delivery of messages in the Communication Plan will be
                 developed.

       4.1.7.    Training
                 To prepare for the implementation of the PeopleSoft Financials application, the
                 State must provide training for all financial processes, PeopleSoft Financial
                 modules, financial policies, organization changes required for the
                 implementation, accounting skills and knowledge, and some basic PeopleSoft
                 navigation skills. Additionally, there will be some train-the-trainers (TTT)
                 education to prepare for standardized quality training. All personnel who are
                 identified as end users for the new system in all State organizations will be
                 required to attend all or some of the training. The training covered within the
                 scope of this RFP includes provision of training products as described below
                 for all PeopleSoft Financial modules scheduled for implementation.

                 The Vendor will be required to provide curriculum and course design for each
                 of the modules to be implemented. The contents of the training materials will
                 be role-based to align with user responsibilities initially defined in the Roles
                 Description document described in Appendix 1. During the implementation
                 phase, these user roles will be further refined. The Vendor will also be
                 responsible for developing audience-appropriate training materials along with
                 the Project Manager and Project Team members for the delivery of training
                 identified in the Financial Employee Education and Training Plan (Appendix
                 1). All curriculum, course design, training support material, and instructors
                 will be reviewed and approved by the State. The Vendor will be responsible
                 for designing a formal process for reviewing and accepting all training



94                                                                             Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 materials and for instructor certification as specified in the plan. This design
                 will be delivered as one of the first pieces of the training work stream. The
                 Vendor is expected to use Instructional Design Methodology (Appendix 11) in
                 the development of training products.

                 In addition to the training deliverables described above, the Vendor will also be
                 responsible for developing a training strategy, delivery system and materials to
                 prepare for the Post-Implementation phase. These materials will accommodate
                 ongoing training and refresher courses as needed.

                       Expected Deliverables and Work Products:
                              Final Training Strategy (D)
                              Final Training Plan (D)
                              Course Curriculum (D)
                              Course Design (D)
                              Class Materials (D)

                 Background
                 During the reengineering phase of the project, an intense effort was made to
                 determine the magnitude of the upcoming training needs for State
                 organizations. To achieve this significant training objective, several work
                 products were completed.

                 The End User Inventory and Skills Assessment task was assigned to
                 organizations to collect information that would enable the Project Team to
                 understand the current skills, knowledge, abilities and formal financial
                 education acquired by the potential end users of the future system. This
                 understanding of strengths and weaknesses assisted the Project Team in the
                 development of a more effective training strategy and training plan to ensure
                 that State personnel can realize success during the implementation of the new
                 PeopleSoft Financial modules. The results of this inventory were analyzed and
                 compiled into the Financial Employee Skills Gap Analysis Summary.

                 As noted above, the user inventories were utilized in the development of both
                 the training strategy and the training plan. The Financial Employee Education
                 and Training Strategy provides a strategic framework and a systematic
                 approach to the development and delivery of training to support the successful
                 implementation of PeopleSoft Financials for the State. To support the
                 approach outlined in the Training Strategy, the Financial Employee Education
                 and Training Plan was developed. This plan covers design, development and
                 delivery of all training required to support the implementation of the
                 PeopleSoft Financial modules for the State. All State organizations and their
                 employees who perform financial transactions supported by these modules will
                 be considered in scope for training purposes unless specifically identified and
                 approved for exclusion.

                 Training of the infrastructure, application maintenance and IT support for
                 PeopleSoft Financials is out of the scope of this plan. It will be addressed
                 separately by the Delaware Department of Technology and Information.
                 Additionally, any Microsoft business application training not directly required



Management Requirements                                                                         95
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 for the PeopleSoft Financials implementation, such as MS Access database
                 software, is out of scope for this plan.

                 To help ensure training meets the stated goals, appropriate metrics will be
                 defined to track training attendance, student feedback, and user confidence.
                 These metrics will be defined as part of the Implementation Phase.

                 State Preferences
                 As part of the generation of the training documentation to date, several key
                 decisions have been reached.

                 Training will be both procedural (example and practice) and declarative
                 (analogies and discovery) through classroom, web-based, and practice
                 scenarios to be accomplished in an appropriate sandbox for use after formal
                 training.

                 All reasonable methods of training were acknowledged and considered. It was
                 quickly recognized that the sheer number of personnel that require training will
                 force a mixed set of training methods such that basic and prerequisite material
                 should be delivered as some form of distance learning and self-paced
                 instruction while complex financial processes and system transactions should
                 be delivered via classroom instructor-led training.

                 The formal classroom instructor-led training will cover the “how to” for all
                 financial processes using PeopleSoft. This includes all modules for all
                 organizations that will use PeopleSoft Financials and for all centralized
                 financial organizations. An estimate of the size of the training audiences was
                 developed by the Project Team module leads using inputs from the End User
                 Inventory and Skills Assessment, and the module leads’ knowledge of the
                 current process prototypes combined with their knowledge of State
                 organizations.

                 The Project Training Team will explore the possibility and feasibility of using
                 an off-the-shelf scheduling software package to schedule and track the
                 development and delivery of training, as well as the scheduling and attendance
                 tracking of end users.

                 Training material development will be managed by the Project Team under the
                 direction of a training lead who is responsible to the State Project Manager.
                 The Project Team will follow the State’s Instructional Design Methodology.
                 The State expects the Vendor to provide development software to support
                 training material development. User Productivity Kit (UPK) has been used by
                 the State and is the support package of choice; however, other packages will be
                 considered if the Vendor can show that there is better support for the cost.




96                                                                    Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (Vendor Primary)
                                                Vendor                             State
                                     Provide a curriculum and          Support training material
                                     course design for each of the     development
                                     modules to be implemented         Provide review and feedback as
                                     Develop audience-appropriate      required
                                     training materials for delivery   Approve final training materials
                                     of training identified in
                                     Financial Employee Education
                       Development   and Training Plan
                                     Design a formal process for
                                     reviewing and accepting all
                                     training materials and for
                                     instructor certification
                                     Develop a training strategy,
                                     delivery system and materials
                                     to prepare for post-
                                     implementation phase
                                     Utilize the development
                                     software to support training
                                     material development
                                     (PeopleSoft User Productivity
                                     Kit or similar)

                 Vendor Response
                 The proposal must describe the Vendor’s approach to the delivery of the
                 training products described above. This description must identify State and
                 Vendor responsibilities for each of the training objectives. The Vendor is
                 expected to use Instructional Design Methodology in the development of
                 training products. The work plan must identify key milestones in this process,
                 define a mechanism for tracking progress, and identify major deliverables of
                 this process.

                 Optional Response
                 At this time, the delivery of training is not included in this RFP. However, if
                 the Vendor feels that it can provide a solution for the training delivery needs
                 for the implementation of PeopleSoft Financials to all State organizations and
                 end users, this information may be included as a separate item in both the
                 technical and cost responses to this RFP. This optional training proposal must
                 be based on the information provided in the preliminary training plan included
                 as Appendix 10.

       4.1.8.    Knowledge Transfer
                 Knowledge transfer is a continuous process designed to enable the State to
                 properly support the operation and continuous improvement of the financial
                 processes and PeopleSoft application without the support of external
                 consultants. The Vendor will be responsible for development of a knowledge
                 transfer plan for the Project Team. Through training, workshops and
                 mentoring relationships, the Vendor will be responsible for educating the
                 Project Team in the methodology and task plan to be used on the project as
                 well as the skills and techniques needed for ongoing maintenance of the
                 system.


Management Requirements                                                                                   97
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                        Expected Deliverables and Work Products:
                               Final Knowledge Transfer Plan (D)

                 Background
                 In August 2005, the State completed a draft knowledge transfer plan that was
                 used to guide staff training in PeopleSoft from Oracle University and to
                 identify desired work experience for project staff during the reengineering
                 phase of the project. This plan is discussed in more detail in Section 2 of this
                 RFP and in Appendix 1. The State expects that the Vendor will leverage this
                 work in the development of the knowledge transfer plan for the project.

                 State Preferences
                 The State believes that knowledge transfer should be an integral part of the
                 overall project plan that incorporates classroom training, one-on-one coaching
                 and directed work experience. The plan should identify the knowledge and
                 skills team members need to acquire, the methods to be used to obtain these
                 skills, and a mechanism for tracking progress.

                 Responsibility Matrix (Vendor Primary)
                                                Vendor                          State
                                     Develop the knowledge transfer   Support plan development
                       Development




                                     plan                             Make State staff assignments
                                     Make Vendor mentoring            Approve the plan
                                     assignments


                                     Mentor state staff               Monitor plan progress
                                     Monitor plan progress            Conduct performance
                                     Evaluate outcomes                appraisals of State Staff
                       Execution




                                     Recommend corrective actions     Provide educational
                                                                      opportunities
                                                                      Provide appropriate work
                                                                      assignments



                 Vendor Response
                 The technical proposal must describe the Vendor’s knowledge transfer
                 philosophy, the approach that will be used in the project and a discussion of
                 how this approach will ensure a competent State workforce that will be able to
                 take ownership and run the completed system. The project work plan must
                 identify key milestones in the knowledge transfer process and identify major
                 deliverables of this process.

       4.1.9.    Quality Assurance
                 The Vendor is responsible for participating with the state in ensuring the
                 overall quality of the final product of this project. The Vendor is required to
                 utilize the State’s quality assurance process and recommend ways to improve
                 this process on an on-going basis. The quality assurance plan is the foundation
                 on which the project deliverables, particularly those addressing changes to
                 aspects of the project or its elements, will be built to meet expectations and



98                                                                          Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 needs in accordance with specifications and standards. The State and Vendor
                 will work through the quality assurance team to ensure quality control.

                 Quality assurance involves: a) ensuring that the achievement of quality
                 objectives is not left to chance; b) ensuring project methodologies, standards,
                 and controls are appropriate and reasonable for the project environment; c)
                 reviewing the adequacy of and adherence to project standards and controls,
                 issue tracking, risk management and change control procedures; d) ensuring
                 quality control provides a basis for improving the project deliverables and
                 knowledge transfer; e) ensuring that quality is monitored and defects identified,
                 along with corrective actions; and f) ensuring that identified faults are rectified
                 and that the chance of recurrence is minimized.

                       Expected Deliverables and Work Products:
                              QA Recommendations (W)
                              QA Process Documentation (W)

                 Background
                 The State’s Department of Technology and Information has a process in place
                 to address change control and quality assurance so that they meet industry
                 standards and all involved parties are held accountable. This process uses
                 Stat® ACM for PeopleSoft as an integral tool. The State’s approach to quality
                 assurance involves a series of validation and verification steps in the system
                 development lifecycle to ensure each step is logically related and traceable to
                 business requirements.

                 This process relies on the use of technical and functional positions to review
                 the work done in moving from request for a change to implementation of that
                 change. In this process, the business requirements are laid out and approved
                 before any technical activities are undertaken and requirement documents are
                 matched against a pre-approved document outline and abstract,. The technical
                 activities take place following various reviews and approvals. At varying
                 stages throughout the process checks are made to see that the design matches
                 the documentation of the requirement, the development matches the design,
                 and test results (user acceptance testing) match the initial request.

                 State Preferences
                 The State proposes to establish a joint State-Vendor quality assurance team to
                 be composed of at least one functional and one technical person from each
                 entity plus a quality assurance manager. This team would use DTI’s quality
                 control methodology and process. The State would manage this quality
                 assurance process and be responsible for the development, testing and approval
                 of requests.




Management Requirements                                                                         99
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (State Primary)
                                              Vendor                              State
                                   Supply qualified staff to support   Manage quality assurance
                                   quality assurance                   process
                                   Propose solutions                   Approve requirements and
                                   Develop requirement and design      designs




                       Design
                                   documentation                       Support requirement
                                   Recommend process                   development
                                   improvements                        Submit the customer service
                                                                       request (CSR)
                                                                       Track CSR progress
                                   Develop solutions in accordance     Approve designs
                       Execution


                                   with design                         Develop solutions
                                   Support quality assurance           Manage development
                                                                       Perform and document quality
                                                                       assurance

                 Vendor Response
                 The Vendor’s response must describe its preferred approach to quality
                 assurance, describing how this approach will be employed to assure that each
                 type of deliverable (written, software or non-software) is of high quality before
                 it is submitted to the State for review and approval. The Vendor will also
                 identify the resources to be assigned to quality assurance and describe the
                 Vendor’s approach to requirements traceability and quality assurance
                 management (metrics tracking the who and what of quality assurance and
                 change control).

       4.1.10. System, Database and Security Administration
                 The Vendor will be responsible for assisting in the initial system, database and
                 security set up. During the project, the Vendor will be responsible for
                 supporting State staff and administration during the implementation project.
                 This support will include analysis and recommendation for installation of all
                 interim and final configurations of the PeopleSoft Financials application and
                 associated databases consistent with the project strategy and the
                 implementation of an application security methodology that conforms to the
                 State’s security standards. The implementation of PeopleSoft semi-annual
                 service packs, updates and fixes during the term of this contract will also be the
                 responsibility of the State, supported by Vendor analysis, recommendation,
                 input and mentoring.

                        Expected Deliverables and Work Products:
                               Installation and Configuration Recommendations (W)
                               Analysis of Issues and Problems (W)
                               Mentoring for System, Database and Security Administration (W)

                 Background
                 It is anticipated that multiple environments of applications and databases for
                 development, testing, training and production will be created to support the
                 implementation of the PeopleSoft Financials application. As of the writing of
                 this RFP, the State has had nearly 18 months of active, hands-on access to a
                 sandbox environment with its own data populating many of the core tables


100                                                                          Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 within PeopleSoft v8.8 SP1. The sandbox has been maintained by limited
                 technical support provided to the by the State’s Department of Technology and
                 Information as well as proactive team member management using PeopleSoft’s
                 Customer Connect to monitor the issuance of the latest bundles. It currently
                 shares space on a server located at DTI. In addition, the Project Team has
                 obtained access to a copy of the State’s PeopleSoft HCM (Human Capital
                 Management) v8.8 SP1 for the purposes of creating an HCM sandbox
                 environment. The reason for the HCM sandbox environment is so that the
                 State financial reengineering team can test the delivered Enterprise Integration
                 Points (EIPs) between PeopleSoft Financials and Human Capital Management
                 applications.

                 State Preference
                 It is the State’s intent to perform the system, database and security
                 administration activities after suitable classroom and on-the-job training and
                 knowledge transfer from the Vendor has been completed. The State will assign
                 four full time employees (two data base administrators, one system
                 administrator and one security administrator) to undertake these
                 responsibilities. The State’s Department of Technology and Information will
                 oversee the installation of the hardware. The State will use PeopleSoft to
                 install the application software and certify the installation.

                 Responsibilities Matrix (State Primary)
                                               Vendor                           State
                                   Initiate system, database, and   Assign employees
                                   security set up and              Learn administration
                                   administration                   responsibilities and activities
                       Design




                                   Develop and implement
                                   configurations
                                   Implement application security

                                   Implement service packs,         Manage administration
                       Execution




                                   updates and fixes                Maintain system, database and
                                   Support transition of            security
                                   responsibilities to State
                                   Analyze problems
                                   Recommend corrective actions

                 Vendor Response
                 In its response, the Vendor will describe how the application environments will
                 be configured and managed during implementation and its approach(s) for
                 managing configurations, test data, patches, performance tuning and security.
                 The Vendor will also need to indicate the numbers and types of positions it will
                 assign to support this activity and the methodology it will use to transfer this
                 activity to the State.

       4.1.11. Help Desk
                 The implementation of PeopleSoft Financials is anticipated to have a
                 significant impact on the demand for and delivery of help desk services. The
                 Vendor will be responsible for evaluating current help desk operations and
                 making recommendations for improving or enhancing these operations to


Management Requirements                                                                               101
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 accommodate the implementation and operation of the PeopleSoft Financials
                 application. These recommendations will address organization of the help
                 desk, roles and responsibilities for help desk staff, staffing levels required for
                 each role, operating procedures and support tools.

                       Expected Deliverables and Work Products:
                              Help Desk Recommendations (D)

                 Background
                 The State currently has two help desk operations, one run by the Department of
                 Technology and Information (the single point of contact for all DTI supported
                 products and services) and the other run by PHRST (Payroll Human Resource
                 Statewide Technology) (operated by the Office of Management and Budget to
                 handle technical questions relating to the PHRST system). Demands on the
                 current system are likely to evolve significantly with the implementation of the
                 PeopleSoft Financials application. For example, demand for support is likely
                 to peak shortly after the Go-Live date. The State has estimated the level of
                 help desk support needed during and after the implementation of PeopleSoft
                 Financials application. This estimate is based on the State’s prior experience
                 with its PHRST system. Based on PHRST help desk call data from January
                 2002 to April 2005, there were 1,011 users who made 11,139 calls, averaging a
                 need for seven help desk staff. The ratio of PHRST users to help desk staff is
                 144 to 1. Based on the same assumption of call volume for PeopleSoft
                 Financials, 3,500 decentralized users could generate over 38,000 calls,
                 indicating a need for 24 help desk staff.

                 State Preferences
                 The State believes that a well functioning help desk will be crucial to the
                 successful implementation of the PeopleSoft Financials application. To be
                 well functioning, it must be appropriately staffed with competent employees
                 who are using the proper tools and who are included in the Change
                 Management, training and knowledge transfer aspects of this implementation
                 project. Vendors need to identify how help desk staff will be involved in the
                 end user support and how they will be prepared to handle user calls before,
                 during and after deployment rollout.

                 Responsibility Matrix (Shared)
                                             Vendor                               State
                                   Evaluate current help desk        Communicate current Help Desk
                       Developme




                                   operations and make               organization, processes and plans
                                   recommendations for               Approve Recommendations
                           nt




                                   integrating the Financials help
                                   desk into existing structure.


                 Vendor Response
                 Vendors are to incorporate support for the help desk function into their
                 proposal. The proposal should include a description of the following: a)
                 coordination of the State help desk with Change Management and training
                 activities; b) recommended help desk software tools; c) training to be provided
                 to the State help desk agents; d) suggested escalation procedures; e) interim


102                                                                          Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 staffing for peak help desk demand periods and transition to a permanent
                 arrangement; and f) development of a help desk knowledge base.

       4.1.12. Collaboration and Productivity Tools
                 The Vendor is responsible for providing the structure, tools and techniques to
                 document and maintain the deliverables, work products and other artifacts of
                 the implementation project. The Vendor is responsible for documenting the
                 information management process to be used in this project and train all Project
                 Team members in this process.

                       Expected Deliverables and Work Products:
                              Information Management Documentation (D)
                              Information Management Training (W)

                 Background
                 Delaware IT projects have a long history of using automated tools to support
                 the work of Project Teams. During the reengineering phase of the project, the
                 State developed and maintained a number of Microsoft SharePoint portals to
                 facilitate Project Team communications and serve as a repository of project
                 documentation. The PeopleSoft Financials SharePoint implementation
                 includes facilities for document management, meeting management, issue and
                 risk management, and action item tracking. Other ERP projects have
                 accomplished the same result using Lotus Notes databases.

                 State Preferences
                 The State believes that an ERP implementation project is simply too complex
                 to be managed without the use of electronic tools to capture and relate the
                 hundreds or thousands of items that will be produced during the effort. While
                 the State has experience with SharePoint and Lotus Notes, it is believed that it
                 may be beneficial to adopt a different approach and different tools if they have
                 been used successfully by the Vendor on similar projects or if they are an
                 integral part of the Vendor’s methodology. However, the State must have the
                 license and right to continue to use any such tools and access all project
                 documentation after project completion.

                 The State understands that many implementation Vendors have developed or
                 licensed databases and automated tools designed to provide proven reference
                 documents and templates to increase productivity; assistance in managing the
                 project and tracking progress; means to communicate and collaborate
                 effectively; and serve as a repository of project documentation. The Vendor
                 may propose to employ such tools for this project or to use the existing tools.




Management Requirements                                                                      103
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (Shared)
                                                Vendor                               State
                                     Recommend tools and their         Review and approval of tools,
                                     usage                             polices and procedures




                       Development
                                     Installation, setup and           Support the installation effort
                                     configuration of tools            Participate in training
                                     Documentation of policies and
                                     procedures
                                     Train all Project Team staff in
                                     the tools and the methods and
                                     procedures for tool usage.
                                     Oversee appropriate usage of      Support management of the tools
                       Execution


                                     the tools and adherence to        and their usage
                                     policies and procedure            Use the tools in accordance with
                                     Use the tools in accordance       adopted policy and procedure
                                     with adopted policy and
                                     procedure

                 Vendor Response
                 The technical proposal must describe the process that will be used to manage
                 all project artifacts and describe any tools proposed for use by the Project Team
                 during the implementation, listing the feature and functions along with an
                 overview of the benefits that may be realized through the use of these tools.
                 This description must also provide an understanding of how the tools fit with
                 the proposed work plan and methodology.

                 The cost proposal must present all costs associated with initial and ongoing
                 costs for use of the proposed tools and describe how the State will be given the
                 perpetual right to use these tools and the tool content developed or developed
                 during the project.




104                                                                             Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



   4.2. Technical Topics
         Within “4.6 Technical Topics” the structure of each topic is the same, describing:
                 The requirements to be met by the Vendor in the fulfillment of this project
                 (including a list of expected deliverables and work products);
                 Background information on work completed to date by the State, which is
                 relevant to the topic;
                 Preferences of the State with regard to the nature of the work to be performed
                 and the relative responsibilities of State and Vendor staff; and
                 A description of the information to be provided by the Vendor in their
                 proposal.
         The responsibility matrix under each topic (State Preferences) describes the working
         relationship expected by the State for each topic. The State is willing to entertain
         alternate working relationships. In the response to each topic, the Vendor must address
         any changes to or expansion of these relationships and provide the rationale for any
         change.

       4.2.1.    Technical Environment (Hosting Issues)
                 PeopleSoft Financials 8.9 will be installed by the State and certified by
                 PeopleSoft prior to the arrival of the implementation Vendor. In addition, staff
                 from the Delaware Department of Technology and Information will have
                 established the development environment, including all of the database
                 instances anticipated to be required for development. During the initiation
                 phase of the project, it will be the Vendor’s responsibility to review the
                 development software installation and make recommendations for
                 enhancement or improvement based on the Vendor’s previous implementation
                 experience. Prior to roll-out, it will be the Vendor’s responsibility to work
                 with the State to design the configuration for the production environment.
                 Throughout the project, it will be the Vendor’s responsibility to assist in the
                 analysis and resolution of problems and issues related to the environments as
                 they are identified.

                       Expected Deliverables and Work Products:
                                Development Environment Assessment Report (D)
                                Production environment recommendations (W)
                                Documentation of issue analysis and resolutions (W)

                 Background
                 The State is planning to host the development and production environments,
                 and has been hosting and maintaining the sandbox environment during the
                 reengineering phase of the project. In addition, DTI hosts and maintains
                 development and production environments for PHRST and has designed a
                 development environment for PeopleSoft Financials based on this experience.

                 State Preferences
                 The State recognizes that there are some significant differences between the
                 PeopleSoft HCM and FMS products, and believes that the design of the



Management Requirements                                                                        105
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 PeopleSoft Financials configurations can benefit from a critical review by
                 individuals who have implemented PeopleSoft Financials previously. As with
                 most States, there is a significant demand on a limited number of IT staff as
                 well as hardware and software resources. For this reason, the State is
                 considering the option of having the implementation Vendor provide
                 application hosting services during the implementation project.

                 Responsibility Matrix (State Primary)
                                                 Vendor                                State
                                     Review and evaluate the State’s     Document and communicate the
                                     technical configuration for         existing State technical
                                     development.                        environment affecting PeopleSoft
                       Development


                                     Recommend improvements and          Financials
                                     enhancements to this                Document and communicate the
                                     configuration                       configuration of the development
                                     Work with the State to design the   environment.
                                     configuration for the production    Participate in configuration
                                     environment.                        planning sessions
                                                                         Approve configuration plans
                                     Assist in establishment an          Establish and maintain the
                       Execution




                                     maintenance of the development      development and configuration
                                     and production environments         environments
                                     Assist in analysis and resolution
                                     of configuration issues and
                                     problems.

                 Vendor Response
                 The technical proposal must demonstrate the Vendor’s knowledge, expertise
                 and experience in the configuration of development and environments for
                 PeopleSoft Financials, and must describe the approach that will be taken to
                 address the requirements of this topic.

                 Optional Application Hosting
                 Optionally, the Vendor may propose to host the development environment for
                 the State. If this option is proposed, the Vendor must describe the relative roles
                 and responsibilities of the Vendor and the State, based on previous hosting
                 experience, describe how the State’s requirement for knowledge transfer will
                 be addressed, how bundles and patches will be applied during the
                 implementation project, the provisions the Vendor will make for disaster
                 recovery, and how the system will be transitioned from development to
                 production for system-wide roll out and how the use of the hosting option will
                 impact the overall project schedule.

                 For estimating purposes, the Vendor should assume a core user community of
                 up to 200 users during the implementation and up to 2500 users during system
                 training. The Vendor should assume but describe application availability and
                 response time requirements based on previous hosting engagements.




106                                                                            Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




       4.2.2.    PeopleSoft Financials Configuration
                 The Vendor is responsible for developing final documentation for
                 configuration options, table set up, and special requirements for the PeopleSoft
                 Financials Enterprise Portal and the twelve PeopleSoft modules within the
                 scope of the State’s PeopleSoft Financials implementation. This
                 documentation will identify any minor modifications (special requirements) to
                 be made as part of the configuration process using Application Designer. The
                 product of this activity will contribute to the final design of the new system.

                       Expected Deliverables and Work Products:
                                Configuration Documents (D)
                                Workshop Summaries (W)
                                Documentation of issue analysis and resolutions (W)

                 Background
                 The blueprint for the PeopleSoft Financials implementation will be established
                 through the PeopleSoft Financials configuration documentation and the design
                 documentation addressed in the next few topics. Configuration is concerned
                 with all of the items outlined in the PeopleSoft Setup Manager. The design
                 documentation is concerned with customizations, major modifications, and
                 custom workflow. Design for PHRST integration conversion, interfaces and
                 reports are addressed in their individual topics.

                 The State has completed a configuration document format it will use in
                 conjunction with PeopleSoft Setup Manager to document the setup and
                 configuration settings necessary to implement the application. The major
                 components of the document include the setup task name, navigation,
                 background about the setup, and configuration decisions made with respect to
                 values and options and a reference to the setup task manager step. It is
                 expected that configuration documentation will be approximately 80%
                 complete by the time the implementation Vendor arrives. This 80% will focus
                 primarily on module specific setup and configuration. Included in the 20% to
                 be finalized during implementation will be such steps as combo editing,
                 workflow setup, speed types and speed charts, and security. A sample copy of
                 a configuration document may be found in Appendix 12 of this RFP.

                 State Preferences
                 It is the State’s sentiment that the design documentation is essential in
                 maintaining and managing a complex technical environment, especially one
                 that will change in the future. By providing thorough and complete
                 documentation, future upgrades and on-going maintenance will be made easier.
                 It is the State’s desire to utilize the configuration document it will have nearly
                 completed once the Vendor arrives on-site.

                 The State anticipates the Vendor using the Setup Manager feature delivered
                 with PeopleSoft Financials Version 8.9. In order to facilitate the establishment
                 of a foundation for the Project Team to begin its configuration documentation,
                 the Project Team created configuration set using its PeopleSoft Financials 8.8


Management Requirements                                                                       107
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Sandbox environment (Enterprise Components > Manage Implementations >
                 Manage Configuration Set). The State identified the products and options
                 selected for implementation. This process identified an estimated 780 steps to
                 complete prior to the aforementioned date. The team realizes that some of
                 these steps need to be completed for each module, while others are not truly a
                 “step”. From that point forward, the design document was developed and the
                 team was tasked with completing as much of the design document for their
                 module as possible before the formal start of the implementation phase in July
                 2006.

                 Responsibility Matrix (Vendor Primary)
                                                Vendor                                 State
                                     Facilitate workshops to review     Complete an initial draft of the
                                     and refine the State’s             configuration and setup
                                     configuration documentation.       documentation.
                                     Recommend changes to the           Participate in configuration and
                                     State developed documentation      setup workshops
                                     to improve the final product       Conduct research and analysis as
                                     Work with the State to analyze     required to support configuration
                       Development




                                     additional configuration           and setup decisions
                                     requirements                       Support development of
                                     Analyze and recommend minor        configuration and setup
                                     modifications to address State     documentation.
                                     requirements                       Approve final documentation.
                                     Work with the State to analyze
                                     and document workflow,
                                     security, combo edit, speed type
                                     and speed chart specifications
                                     Produce the final
                                     documentation

                 Vendor Response
                 The Vendor’s response must describe the approach and steps recommended for
                 the final documentation of configuration and setup of the State’s PeopleSoft
                 Financials implementation. The technical proposal must provide an evaluation
                 of the design documentation being used by the State prior to the Vendor’s
                 arrival and identify any significant deficiencies in the style, structure, and
                 information captured. The responses should clearly state what is missing from
                 the documentation, why it would be of benefit now and in the future, and
                 recommendations for incorporating the new suggestions into the existing
                 document. The responding Vendor may propose an entirely new configuration
                 document design, but must clearly state the benefits to adopting their approach
                 to configuration documentation (e.g. a tool that directly interfaces with
                 PeopleSoft capturing traditionally relevant information for design
                 documentation).

                 The Vendor should detail their experience with using Setup Manager
                 functionality in a previous implementation. Specifically, a quality response
                 will indicate the benefits and risks of choosing to consider this tool as a
                 possible supplement to other project management utilities made available by
                 the Vendor or for use by the State Project Manager.



108                                                                             Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       4.2.3.    Design Specification (Modifications/Customizations)
                 The Vendor is responsible for finalizing requirements and developing the
                 design specifications for all major modifications and customizations identified
                 by the State, along with design for any workflow modifications identified
                 through the PeopleSoft Financials configuration activity.

                       Expected Deliverables and Work Products:
                                Workshop Summaries (W)
                                Requirement Specifications (D)
                                Design Documentation (D)
                                Documentation of issue analysis and resolutions (W)

                 Background
                 The State, in the development of its project charter and vision, has committed
                 to implementing a “vanilla” version of PeopleSoft Financials v8.9. During the
                 reengineering phase of the project, it has evaluated its business practices,
                 identified areas where gaps existed between current processes and PeopleSoft
                 functionality, and made appropriate changes to the State’s business processes
                 where practical and possible.

                 As indicated in Section 3 in this RFP, the State of Delaware has classified
                 changes to the system in three varieties. Customizations, according to the
                 State, is any new product developed with PeopleTools or installed into the
                 environment that provides functionality that was not provided with the original
                 application product.

                 A modification is any change to a part of the application product or
                 functionality that was originally delivered by PeopleSoft, and can be
                 characterized as having a high probability of being affected by patches or fixes.
                 Within the definition of modification, there are two degrees of modifying the
                 system: minor and major. The customizations and major modifications
                 identified in Section 3 of the RFP are the subject of this topic.

                 For the purposes of implementation planning and estimating, the State
                 considers the following four levels and their associated hours: Small (40 hour
                 or less), Medium (41-80 hours); Large (81-120 hours); and Significant (120+
                 hours).

                 State Preferences
                 It is the State’s preference that the major modifications and customizations to
                 the core system applications be very limited. In addition, it is the State’s
                 preference that only those customizations and modifications that are business
                 critical and either can not be remedied through delivered PeopleSoft
                 functionality or through business process change within the State be considered
                 above and beyond those identified in this RFP.

                 However, the State recognizes that additional changes outside the scope
                 presented in this RFP may be identified during the course of the project. Any
                 modifications or customizations that are approved should be subject to the
                 change control and quality assurance activities adopted for the project.



Management Requirements                                                                      109
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                 Responsibility Matrix (Vendor Primary)
                                                 Vendor                               State
                                     Work with the State to document    Identify modifications and
                                     requirements for all               customizations and document the
                                     modifications, customizations      business necessity for any changes



                       Development
                                     Develop design documentation for   Work with the Vendor to document
                                     solutions to satisfy the           change requirements
                                     requirement                        Review and validate design
                                     Develop work estimates for any     documents against the change
                                     new customizations or              requirements
                                     modifications approved by the      Approve requirement and design
                                     State                              documentation

                 Vendor Response
                 The Vendor’s proposal must outline their approach to development of
                 customizations and modifications and how the identified customizations and
                 modifications will be incorporated into the overall work plan. The proposal
                 should demonstrate that the Vendor understands the identified modifications
                 and customization as well as the definition of customization and modification
                 developed for this project.

                 The Vendor’s response must propose a process for the identification,
                 documentation review and approval of any new customizations or
                 modifications and discuss how the changes to the project scope can be
                 controlled.

                 The Vendor’s cost proposal must identify labor categories and rates that will be
                 used to cost any customizations or major modifications identified during the
                 project, and guarantee those rates for the life of the project, and identify labor
                 categories, rates, hours and total cost for the small, medium, large and
                 significant changes (See section 7.1.14).




110                                                                           Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       4.2.4.    PHRST Integration
                  The State has made a significant investment in PHRST (Payroll Human
                  Resource Statewide Technology), a PeopleSoft implementation of the Human
                  Capital Management (HCM) system currently on Release 8.8.SP1. The
                  Vendor will be responsible for definition, design and development of changes
                  to the PHRST system to ensure that the PHRST HR, Payroll, and Time and
                  Labor modules are integrated with PeopleSoft Financials and that all
                  accounting entries integrate, synchronize or flow between PHRST and
                  PeopleSoft Financials.

                       Expected Deliverables and Work Products:
                              Workshop Summaries (W)
                              Requirement Specifications (D)
                              Design Documentation (D)
                              Unit Test Results (W)
                              Modified Software and Related Source Code (D)
                              Documentation of issue analysis and resolutions (W)

                 Background
                 Every State organization, all school districts, existing charter schools and two
                 higher education organizations, use the State’s human resource system –
                 PHRST. There are approximately 37,000 employees paid on a biweekly basis
                 using the PHRST installation. In addition, the State is in the process of
                 implementing the PeopleSoft Time and Labor module to record time and
                 attendance for all of the employees paid through PHRST. PHRST has
                 incorporated a number of customizations and modifications that limit the
                 integration of PHRST modules with PeopleSoft Financials. In addition
                 PHRST has a significant custom solution or “bolt-on” that was developed to
                 accommodate the unique State funding requirements. An effort has recently
                 been completed that examined the possibility of removing in part or all of the
                 “bolt-on” and other modifications with the results published in a document
                 titled “PHRST / PeopleSoft Financials High Level Integration
                 Recommendations” (Appendix 2).

                 State Preferences
                  The State has an appreciation for the complex nature of the integration
                  requirements that will be needed to ensure proper accounting of all HCM
                  transactions. The State believes it will be beneficial for the Vendor to provide
                  team members with expertise in using Enterprise Integration Points (EIPs) who
                  will work with the State to determine the use of the EIPs and where changes
                  will need to be implemented. The State prefers to have this effort documented
                  with accurate flow diagrams depicting the movement of data between the two
                  systems that can be used by functional and technical staff as they assume the
                  responsibility for maintaining the integrated system.




Management Requirements                                                                      111
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (Vendor Primary)
                                                   Vendor                                   State
                                     •   Provide team members with         •   Provide a support team of technical
                                         expertise in using Enterprise         and functional staff to work with
                                         Integration Points (EIPs).            the Vendor in the analysis and




                       Development
                                     •   Conduct workshops to finalize         recommendation phase.
                                         requirements for PHRST            •   Approve the documentation outline
                                         integration                           and the final solution
                                     •   Develop analysis and design           documentation.
                                         documentation for the proposed    •   Signoff (sponsor) on the
                                         changes and issues described in       recommendations.
                                         Section 3 of this RFP.
                                     •   Document final approved           •   Provide technical staff to support
                                         solutions.                            the development of system changes
                                     •   Provide technical staffing for        in accordance with the approved
                       Execution




                                         development and implementing          design.
                                         of approved solutions.            •   Provide “real” test scenarios that
                                     •   Provide a fully tested solution       can be used in testing the final
                                         for the State to use that will        approved solutions.
                                         integrate PHRST and               •   Provide final signoff on the test
                                         PeopleSoft Financials.                results.


                 Vendor Response
                 The technical proposal must describe how the Vendor will address the analysis,
                 design and development of changes needed to meet the requirements described
                 in Section 3 of this RFP. For example, recommendations should be developed
                 as to how the State should structure HR Business Units within the PeopleSoft
                 Financials General Ledger Business Unit structure; the design of the
                 PeopleSoft Financials Department field and any necessary conversion to use a
                 6 character Department field from PHRST; use of the PeopleSoft delivered
                 Project field and assist in the removal of the current customization(s) in Time
                 and Labor; the use of delivered HR Account Code functionality; and how the
                 existing Payroll Accounting customization can be removed and replaced with
                 EIP and other existing functionality, where possible. It is understood that
                 alternatives provided by the Vendor will need final approval by the State.

       4.2.5.    Data Conversion
                 The State has adopted a philosophy of converting the minimal amount of data
                 possible to maintain data quality and reduce the conversion effort while
                 meeting the financial reporting needs of the State. PeopleSoft is delivered with
                 technologies (SQR, application engine, component interface) that can be
                 leveraged to accomplish conversions in an efficient manner thereby reducing
                 conversion efforts and obtaining optimal results.

                 The Vendor and State will obtain data extracts from source systems for
                 conversion analysis. Utilizing PeopleSoft delivered technology the Vendor
                 will be responsible for data conversion. The Vendor will be responsible for
                 data mapping, data translation, and assisting the State with identifying problem
                 areas within the legacy system data during data scrubbing. The Vendor will
                 perform data loading and assist the State with data validation and cleansing.



112                                                                                 Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                       Expected Deliverables and Work Products:
                              Data Conversion Strategy (D)
                              Data Mapping to PeopleSoft (W)
                              Data Transformation Documentation (W)
                              Conversion Software and Related Source Code (D)
                              Data Load Results (W)
                              Documentation of issue analysis and resolutions (W)

                 Background
                 The State’s Project Team has compiled a comprehensive list of data sources to
                 be converted, which may be found in Section 3.2.4. While the State believes
                 that its inventory of conversion data sets, as identified by the Project Team to
                 date, represents the major data conversion requirements, additional analysis of
                 the State’s application data will be required to identify other conversions that
                 will be needed.

                 State Preference
                 The data present in the central systems and other systems is expected to be
                 integrated into the PeopleSoft solution. The strategy for managing legacy data
                 during the transition period will be as follows:

                       •   Populate the PeopleSoft system with cleansed master file data from
                           State systems as required.
                       •   Extract, transfer, and load summary balances from State financial
                           systems and other systems (as required) rather than detailed
                           transactions.

                 The Vendor should provide its conversion recommendation and assumed scope
                 (areas to convert and level of historical data) based on its experience with
                 similar implementation projects for state governments.




Management Requirements                                                                      113
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (Vendor Primary)
                                                  Vendor                                   State
                                     Provide staff members familiar         Provide staff members that are
                                     with PeopleSoft data conversion        familiar with data elements and have
                                     tools and with underlying              an understanding of the data being
                                     PeopleSoft data structures             converted
                                     Recommend conversion strategy          Assist in development of conversion


                       Development
                                     and assist in dataset identification   strategy
                                     Map conversion data to                 Approve conversion strategy
                                     PeopleSoft tables and columns          Compile a comprehensive list of
                                     Identify and document data             data sources to be converted (high
                                     transformations                        level data conversion plan)
                                     Finalize the conversion plan           Identify final conversion data sets
                                                                            and fields
                                                                            Approve the conversion plan

                                     Design, code and test load             Design, code and test extraction
                                     programs                               programs
                       Execution




                                     Execute data load                      Extract data from existing systems
                                     Assist the State with identification   Perform data validation
                                     of problem areas within the legacy     Identify problem areas within the
                                     system data during data scrubbing      legacy system and perform data
                                     using automated and manual             scrubbing
                                     procedures                             Approve conversion products

                 Vendor Response
                 The Vendor shall describe its recommended approach for planning, design,
                 programming, and testing conversion activities. The Vendor shall describe the
                 process recommended for data conversion and migration, specifying where and
                 when this task or subtasks fit into the overall project work plan and identifying
                 responsibilities (Vendor and State) for these activities.

       4.2.6.    Interface Development
                 Constructing interfaces will require cooperative efforts involving State and
                 Vendor staff. The Vendor will be responsible for the definition of the inbound
                 and outbound file layouts to send and receive financial data with external
                 systems and the development of all interface programs for data entering or
                 leaving the PeopleSoft system. The State or other organizations will be
                 responsible for developing programs to send or receive data in their systems, in
                 accordance with the Vendor developed specifications. It is expected that these
                 interfaces be well documented to facilitate subsequent revisions based on
                 changes to underlying systems. It is further expected that the interfaces will
                 use APIs and not write directly to the underlying tables or modify existing
                 application code. The successful operation of all interfaces shall be the
                 responsibility of the Vendor.

                        Expected Deliverables and Work Products:
                               Interface Requirements (D)
                               Interface Design Documentation (D)
                               Interface Software and Related Source Code, as applicable (D)
                               Interface Test Results (D)
                               Documentation of issue analysis and resolutions (W)


114                                                                               Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                 Background
                 The State is using a variety of decentralized and legacy systems to support and
                 complement the financial activities of the State. Many of these applications
                 were created for a specific segment of the State’s business activity and are
                 highly customized. Some were purchased from third party vendors while
                 others were developed internally. Some of these systems may be replaced by
                 functionality which is delivered with PeopleSoft Financials, however, it is
                 expected that most of the customized legacy systems will continue to operate
                 and the financial transactions recorded in those systems will be interfaced to
                 PeopleSoft Financials.

                 State Preferences
                 The State expects that some of these interfaces may be as simple as standard
                 format data feeds accommodated by a delivered PeopleSoft interface. Others
                 may be customized and require complex interfaces to deliver information to the
                 PeopleSoft Financials application from existing legacy systems. Although
                 there are requirements for the development of non-standard interfaces, the State
                 seeks to apply a policy of creating one “standard” interface for each transaction
                 type to be interfaced (transaction standard). Each legacy system that interfaces
                 with the PeopleSoft Financials system must adhere to the transaction standard
                 interface. The State also understands that PeopleSoft Financials 8.9 includes
                 additional delivered interfaces which it expects to utilize to the extent possible.
                 See Appendix 7 for a listing of identified interfaces.

                 Responsibility Matrix (Shared)
                                              Vendor                                  State
                                •   Facilitate workshops or          •   Provide an interface lead to
                                    meetings with State                  support the Vendor
                                    organizations regarding          •   Schedule meetings, workshops
                                    interface requirements               and participants
                       Design




                                •   Document interface               •   Participate in workshops and
                                    requirements                         meetings
                                •   Identify development             •   Assist in the identification of
                                    approach for interfaces              Interface requirements
                                •   Develop interface design         •   Approve interface designs
                                    documentation.
                                •   Provide skilled interface        •   Provide Staff for the Interface
                                    developers                           Development Team
                                •                                    •
                       Build




                                    Mentor State Staff through           Develop and test interfaces in
                                    knowledge transfer                   accordance with specifications
                                •   Develop and test Interfaces in   •   Approve final interfaces
                                    accordance with specifications

                 Vendor Response
                 The Vendor shall describe its recommended approach to assist the State’s staff
                 in the proper identification, design, and programming of identified interfaces.
                 The Vendor must distinguish between State and Vendor responsibilities and
                 describe the mechanisms and tools included in PeopleSoft Financials 8.9 to be
                 used to implement these interfaces. The response should discuss the



Management Requirements                                                                                    115
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 “delivered” interfaces in PeopleSoft 8.9 and the record sets associated with
                 each interface.

       4.2.7.    Reporting
                 Reporting in the State of Delaware is based primarily on mainframe reports in a
                 batch mode. These batch reports are distributed to users in all 338 State
                 departments through Mobius Document Direct. Many users view or print the
                 reports from Mobius. Several users export information from Mobius and use it
                 for ad-hoc reporting through a variety of spreadsheets and database tools. In
                 addition, numerous home grown databases and spreadsheets are used in a
                 variety of organizations to record and manage information which is not
                 recorded in the current PeopleSoft Financials system.

                 The Vendor is responsible for the identification and documentation of the
                 State’s reporting requirements. The Vendor shall lead an analysis effort to
                 review the current list of over 300 reports to determine which are no longer
                 needed or are replaced by online views, stored queries, new batch reports, or
                 delivered reports in PeopleSoft. The State expects the Vendor to provide
                 documentation of the reporting requirements and develop an approach to
                 satisfy those requirements. Furthermore, the Vendor will develop report
                 specifications and provide experienced report developers to mentor and assist
                 the State staff in the production of the system reports. The State will have lead
                 responsibility for report development.

                       Expected Deliverables and Work Products:
                                Reporting Requirements Documentation (D)
                                Workshop Summaries (W)
                                Report Specification Documentation (D)
                                Reporting Strategy (D)
                                Reporting Software and Related Source Code (D)

                 Background
                 The State of Delaware has not yet undertaken a thorough review of the
                 organization’s reporting requirements. An initial listing of current reports and
                 report types has been assembled. However, a full review of the reporting needs
                 must be conducted to design the most effective reporting strategy. The State
                 will begin the review prior to implementation and complete it with the
                 assistance of the successful Vendor.

                 The listing of the various report types that are currently produced can be found
                 in Appendix 8. In addition, a table of ad-hoc reporting requirements has been
                 developed and is found in Appendix 9.

                 State Preferences
                 It is the State’s preference to move away from a batch-oriented reporting
                 system toward a system where the majority of management information is
                 retrieved through direct access to real-time transactions, online reports, and
                 stored queries. Batch paper-centric reports will be the last choice for retrieving
                 financial information. In addition the State expects enhanced ad-hoc reporting




116                                                                    Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 capabilities to be available as a result of the implementation of PeopleSoft
                 Financials.

                 The State expects to access real time data (or data on a one day delay) in an
                 environment that will not negatively impact response time for the production
                 system. The State further expects to access that data in a variety of forms (e.g.
                 on screen, reports, graphics, downloaded files) and formats (e.g. PDF, XLS,
                 XML, XBRL, ASCII, RTF). The State recognizes that may require the
                 creation of a “reporting” instance of the database or a data warehouse and the
                 acquisition of reporting tools.

                 Although the State has purchased PeopleSoft EPM, it has not been determined
                 whether it will be implemented at this time. If it is implemented, it will be in a
                 separate project. It is expected that EPM 8.9 can meet the ad-hoc requirements
                 that have been identified in Appendix 9. The State expects to begin the
                 analysis of the use of EPM prior to implementation and complete it with the
                 assistance of the successful Vendor.

                 Responsibility Matrix (State Primary)
                                            Vendor                                State
                                Lead the reporting analysis         Provide a reporting lead to
                                effort                              support the Vendor
                                Facilitate analysis workshops       Schedule workshops and
                       Design




                                Document reporting                  workshop participants
                                requirements                        Participate in workshops
                                Identify development approach       Articulate reporting requirements
                                to each reporting requirement       Approve products
                                Develop report specifications
                                Provide skilled report developers   Lead the development effort
                                Mentor State staff through          Staff the Report Development
                       Build




                                knowledge transfer                  Team with 2 FTEs
                                Develop reports                     Produce reports in accordance
                                                                    with specifications
                                                                    Approve final reports

                 Vendor Response
                 The Vendor response must describe the approach for the planning,
                 identification of report requirements, and development of report design. The
                 Vendor shall describe the recommended process for report development and
                 recommended reporting tools. Furthermore the Vendor must specify where
                 and when these tasks fit in the overall project plan.

                 The Vendor should describe their experience in developing and executing a
                 reporting strategy in previous implementations. Descriptions of approaches
                 and various tools used in other successful implementations would be
                 appropriate. A quality response would include a thorough discussion regarding
                 the pros and cons of using a data warehouse (particularly EPM) and the extent
                 to which it can meet the State’s ad-hoc reporting requirements.




Management Requirements                                                                             117
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       4.2.8.    Security
                 The Vendor is responsible for recommending a security plan that provides a
                 high-level overview of the security management process to be used for
                 PeopleSoft Financials. Using existing State security policies and procedures
                 and the work completed by the Project Team on role definitions and profiles as
                 starting points, the Vendor is responsible for defining the roles and profiles for
                 all users of the new system and the assisting with the development of policy
                 and procedures for security maintenance in PeopleSoft Financials.

                       Expected Deliverables and Work Products:
                                Security Plan (D)
                                Role and Profile Definition Document (D)
                                Recommended Policy and Procedure modifications (W)
                                Workshop Summaries (W)
                                Department-Level Security Recommendation (W)

                 Background
                 PeopleSoft provides security features, including those that are component
                 specific (e.g. Grants) to grant appropriate access to users of the system and to
                 protect sensitive information. PeopleSoft is also designed to work in
                 conjunction with the State’s other network and relational database management
                 system security. The State has established security policies and procedures for
                 the existing network and ERP systems. The State has completed a preliminary
                 list of possible roles related to each of the modules considered in scope for the
                 duration of this project, as described in Appendix 1. The State will have a full-
                 time PeopleSoft Security Administrator assigned to this project.

                 State Preferences
                 The State of Delaware’s security preference is to provide the most granular
                 level possible to each department similar to the way its Human Capital
                 Management (v8.8) and its legacy financial system do today. The State would
                 like to continue this functionality because of the added benefits it will provide.
                 In addition, the ability to deliver row-level security at the Department ID level
                 will go a long way in providing assurance that the right information is only
                 available to the right people. The State understands that row-level Department
                 security cannot be provided without customization or significant modification,
                 and that different alternatives to addressing the underlying requirements for
                 Department-level security need to be explored. The State also understands that
                 implementation of Department-level security is a relatively common
                 modification, and that the approach to this modification has been documented
                 by PeopleSoft.

                 The State is moving toward a single sign-on configuration and therefore would
                 like to consider a statewide security standard for its ERP applications. As users
                 of Microsoft Exchange for its primary mail services, the State is actively
                 considering the use of the delivered functionality to connect to Active
                 Directory to enable user IDs to become the e-mail address.




118                                                                     Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Responsibility Matrix (State Primary)
                                                  Vendor                               State
                                     Recommend a security plan           Approve the security plan
                                     Recommend roles and profiles for    Completing preliminary list of
                                     all users of the new system         possible roles related to each of
                                     Development of draft policy and     the modules considered in scope




                       Development
                                     procedures for security             for the duration of this project
                                     maintenance                         Approval of role definitions and
                                     Facilitate workshops and meetings   policy and procedures
                                     to further analyze the State’s      Participate and support the
                                     department-level data sharing       analysis of department-level data
                                     issues.                             sharing issues.
                                     Develop recommendations to
                                     address department-level data
                                     sharing issues.
                                     Support implementation of the       Implement security roles and
                                     security plan, roles and profiles   profiles
                       Execution




                                     Mentor State security staff         Support implementation of row-
                                     Implement row-level security        level security
                                     using the Department Chartfield
                                     (State Option)


                 Vendor Response
                 Vendors in their response to this topic must describe the approach to be taken
                 to review and finalize roles based on State identified needs for each module
                 within the scope of the project and creating or modifying permission lists to
                 support these roles. The response must also describe the Vendor’s approach to
                 review and modification of the State’s security procedure and policies
                 supporting the State-wide roll-out of PeopleSoft Financials. The response must
                 also demonstrate the Vendor’s understanding of the issues surround
                 Department-level security and the approach to modification of PeopleSoft
                 Financials to support such security.

                 The Vendor’s response should also include a strategy on how it plans to
                 connect the disparate parts of security found throughout PeopleSoft to the
                 overall security strategy it develops as identified above. The State has taken
                 the position that all security elements (even those defined at a modular level)
                 should be the responsibility of the PeopleSoft Security Administrator. The
                 Vendor should indicate their view on this position and outline why they agree
                 or disagree with this approach using examples from previous implementations
                 of PeopleSoft Financials 8.4 or higher.

                 The Vendor’s cost proposal must also present a separate cost for
                 implementation of a security modification to provide security using the DeptID
                 Chartfield. This will be an optional item considered by the State in conjunction
                 with the analysis of the Departmental-level security issue.




Management Requirements                                                                                119
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       4.2.9.    System Build, Unit and Integration Testing
                 The Vendor will be responsible for implementing the changes documented in
                 the PeopleSoft Financials Configuration Documentation and the Design
                 Documentation for customization and modifications. The Vendor is
                 responsible for development, execution and documentation of unit tests for all
                 changes and certification that these changes are ready for integration test. All
                 changes will use the quality assurance process described in Section 4.1.9 of this
                 RFP.

                       Expected Deliverables and Work Products:
                                Modifications to Configuration and Design Documentation (W)
                                Software and Related Source Code, as applicable (D)
                                Unit Test Plans and Results (W)
                                Integration Certification (D)
                                Documentation of development issue analysis and resolutions
                                (W)

                 Background
                 The State has an established process for change control and quality assurance
                 that the Vendor will be required to use during the development process for all
                 development activities – those related to configuration, customizations and
                 modifications as well a for conversion, interfaces and reports.

                 State Preferences
                 Although the Vendor will have primary responsibility for the implementation
                 tasks, the work of implementation will be overseen by staff from DTI. The
                 State will devote four (4.0) full time staff to this effort to supplement the
                 Vendor staff, and mentoring of this staff will be extremely important during
                 this phase of the project.

                 It is anticipated the Vendor will bring strong development and management
                 skills to the project, along with a well-proven series of metrics to track the
                 success of the system build and unit testing process.

                 Responsibility Matrix (Vendor Primary)
                                              Vendor                                  State
                               •   Provide skilled PeopleSoft         •   Provide staff for the
                                   developers                             development team
                               •   Develop and unit test              •   Develop and test interfaces in
                                   configuration, modifications and       accordance with specifications
                                   customizations in accordance       •   Approve unit test and
                       Build




                                   with specifications                    certifications
                               •   Document unit tests
                               •   Certify components for
                                   integration readiness
                               •   Mentor State staff through
                                   knowledge transfer




120                                                                            Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Vendor Response
                 The Vendor’s response should describe their approach to system development
                 and clearly demonstrate the Vendor’s understanding of the work required under
                 this topic.

                 The methodology will need to include a discussion of the Vendor’s experience
                 and in “tuning” of the application and the system within the environment it will
                 be operating to ensure maximum efficiency in the use of the system and those
                 using the system. Furthermore, the Vendor must provide an example of the
                 documentation that will be produced using their methodology to document the
                 results of the development activity. It is expected that the methodology will
                 also incorporate knowledge transfer and on-going coaching to the State team
                 during these activities.

       4.2.10. Change Control (Scope & Schedule)
                 As important as the requirements contained within the RFP is the on-going
                 management of the scope of work throughout the implementation timeline of
                 the project. Defining an achievable scope and then controlling that scope is
                 crucial to meeting deadlines and implementation dates. In order to realize the
                 success of this project, a comprehensive change control program should be
                 identified early in the project and followed rigorously throughout the duration
                 of the implementation phase.

                 The Vendor will be responsible for working with the State to manage and limit
                 changes to the scope of work during the project implementation phase.
                 Through training and workshops, the Vendor will be responsible for educating
                 the Project Team in the change control plan and tracking tools to be used to
                 address management of scope on the project.

                 The Vendor and the State will establish a process to ensure that any
                 customization requirements are clearly documented, analyzed and reviewed by
                 appropriate management and that the appropriate level of user buy-in is
                 achieved. This will ensure change orders are minimized throughout the
                 project.

                       Expected Deliverables and Work Products:
                                Change analysis and recommendation (W)
                                Change Log (W)
                                Change Control Plan (D)

                 Background
                 During the reengineering phase of the project, an intense effort was made to
                 develop the technical requirements that accurately define the scope of the
                 project.

                 Section 3 provides an overview of the modules and major functional
                 requirements that are within the scope of work of Delaware’s implementation
                 effort. The information presented in this section is based on the work
                 completed by the Project Team to date.




Management Requirements                                                                      121
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 State Preferences
                 Scope management ensures that the project meets stakeholder expectations and
                 is delivered on time and within budget. During project implementation,
                 changes may be necessary regarding what is to be delivered, who is responsible
                 for delivery, budget, and/or schedule. The purpose of change control is not to
                 eliminate changes; rather, the purpose is to ensure a fully informed evaluation
                 of scope changes, resulting in the inclusion of only those changes that are
                 consistent with the goals and the overall strategy of the project.

                 A process must be put into practice to allow requests for changes to be
                 analyzed by pre-defined criteria. In this process, a certain value must be
                 established to determine the necessity of the change and to verify if a formal
                 process is required. The State would ensure that only validated items are
                 considered for the change control process.

                 The change control plan must contain measures to evaluate the importance and
                 need for the request. The format of the review process should include
                 prioritization, impact upon project schedule, resource assignment, financial
                 costs, and the total cost of ownership including future maintenance and
                 training. In addition, an approval process should be based on predefined
                 metrics. Upon approval from both the Vendor and the State for each change
                 item reviewed, an addendum should be made to the existing contract when
                 appropriate.

                 Responsibility Matrix (Shared)
                                               Vendor                                State
                                   Train State staff in Change          Analyze and recommend
                                   Management process                   alternatives for candidate
                       Execution




                                   Analyze and recommend                changes
                                   alternatives for candidate changes   Develop change log to track
                                   Track changes                        changes
                                   Report outcomes                      Approve changes



                 Vendor Response
                 The Vendor’s response will propose a change control plan and methodology
                 that it has used on other similar projects. The proposal must describe how the
                 Vendor and the State can manage the project to minimize or eliminate scope
                 expansion and change orders. A final change control plan will be established
                 and made part of the final contract for this project.




122                                                                           Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       4.2.11. Testing
                 The Vendor is responsible for developing the test plan and supporting
                 documents, which identify the processes, tools, tasks and materials to be used
                 for unit, integration acceptance and stress testing of the system. The Vendor is
                 further responsible for documenting the successful execution of the test plan
                 and any modifications that were required for successful execution. During and
                 after end user training, the State will, with support from the Vendor, conduct
                 final user acceptance and system stress testing. Although user acceptance
                 testing is a State responsibility, the Vendor will be responsible for development
                 of the acceptance test plan and for the development of the acceptance test
                 scripts. The State will modify the acceptance test scripts as required.

                 The Vendor will perform unit, system, conversion and integration testing in
                 addition to performance testing associated with each element prior to the
                 State’s conducting user acceptance testing. The Vendor will provide written
                 certification that adequate and sufficient testing has occurred prior to the State
                 performing user acceptance testing. Any testing documentation must include
                 response time on all system transactions at the server level and replicate
                 environments that are unique to State organizations such as school districts.

                       Expected Deliverables and Work Products:
                                Unit, System and Acceptance Test Plans (D)
                                Test scenarios, scripts and test case data (W)
                                Documentation of Successful Test Execution (D)
                                User Acceptance Test Certification (D)
                                Documentation of development issue analysis and resolutions
                                (W)

                 Background
                 The State’s pre-implementation project plan includes tasks for the development
                 of business process document to provide an explicit representation of how
                 work will be performed within and across the State using PeopleSoft
                 Financials. These business processes are being documented as “use cases” as
                 described in the Reengineering Phase Products Summaries (Appendix 1). All
                 business process documents are targeted for completion prior to the start of
                 testing. It is expected that these documents will be leveraged by the Vendor to
                 develop scenarios for integration and acceptance testing.

                 State Preferences
                 It is anticipated the Vendor will be the lead in testing prior to the user
                 acceptance testing activities and be supported by State resources during this
                 initial testing. The State will expect a detailed test plan to ensure a successful
                 outcome to testing activities. This plan will provide the base for all subsequent
                 testing tasks. The State will require that the testing activities and any
                 associated training be completed in a reasonable amount of time (such time to
                 be accommodated by project implementation schedule).

                 The test plan must include the scheduling assumptions for ‘trained’ State
                 resources that will be required in each phase of the testing. In addition, the


Management Requirements                                                                           123
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 systems and integration testing will include all of the discrete parts of the
                 system as a whole and include the required integration with PHRST and any
                 additional interfaces, conversions and reports. The test plan will include a
                 discussion of how the Vendor will use “real” examples in the test scripts
                 (scenarios) to ensure that the needs of state organizations are met in the new
                 system.

                 The State currently uses Mercury TestDirector for some of the testing of the
                 PHRST system and is planning to use the User Productivity Kit (UPK) for
                 some portion of the user training. The State understands that it may be
                 possible to use the output from the UPK as an input to TestDirector to facilitate
                 the testing process. The State is interested in exploring the feasibility of using
                 this technology for this project.

                 Responsibility Matrix (Vendor Primary)
                                                  Vendor                                 State
                                     Develop the integration and           Support the development of the test
                                     acceptance test plan and test         plans and scripts
                                     scripts                               Approve test plans and scenarios
                       Development




                                     Train State resources identified to
                                     perform acceptance testing
                                     Certify that the integration and
                                     acceptance test environments have
                                     been properly configured in
                                     accordance with the
                                     documentation Vendor has
                                     maintained
                                     Execute integration test              Support the execution of the
                                     Document successful test              integration test
                                     completion                            Conduct user acceptance testing and
                       Execution




                                     Identify and resolve system issues    system stress testing
                                     identified through testing            Provide notification of failure of test
                                     Provide assistance in areas of        scripts and the details associated
                                     coordination, issue resolution,       with each failure
                                     error resolution and analysis         Accept the system


                 Vendor Response
                 The Vendor response must describe the Vendor’s approach to testing and
                 include an outline of a test plan that will be developed by the Vendor. At a
                 minimum, the outlined test plan will need to address what will be tested; who
                 will perform the testing; when the testing will be conducted; how the testing
                 will be performed; how will the State know when testing is complete; and what
                 will be produced from the test. Other points to be addressed in the Vendor’s
                 response are regression testing strategy (to verify and ensure that the system
                 modifications do not indirectly impact other areas of previously approved ERP
                 system functionality), and any tools (other than TestDirector) proposed by the
                 Vendor to facilitate the testing process. The Vendor will be responsible for
                 resolving any deficiencies in the PeopleSoft system throughout all testing
                 efforts.




124                                                                               Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       4.2.12. System Rollout
                 The Vendor is responsible for working with the State to develop the rollout
                 plan, which documents the schedule, procedures and contingency plans for the
                 deployment of the system, and for producing close-out documentation,
                 documenting successful implementation and acceptance of the new system.

                       Expected Deliverables and Work Products:
                                Rollout Plan (D)
                                Closeout Documentation (D)

                 Background
                 During the reengineering phase the State completed a draft project task plan
                 and schedule. The key characteristics of this plan include a “big bang”
                 approach to implementation, and implementation at the start of a fiscal year.
                 The currently scheduled Go-Live date is July, 2008 (the BACIS system must
                 be replaced by this date or be extensively and expensively modified). However,
                 the Vendor should not feel bound by the July 2008 date and should develop the
                 best project plan and timeline to fully address business requirements as
                 outlined.

                 State Preference
                 The State is expecting the Vendor to be present and coordinate the rollout
                 planning and the Go-Live process. The State will manage and execute the
                 actual rollout activities. The State prefers a “big bang” approach (all
                 organizations, all modules), and rollout at the start of a fiscal year. The State
                 will consider proposals for alternative strategies (e.g., phased, different time
                 frame, different rollout date) if they can be shown to substantially address the
                 objectives of replacing existing systems and provide additional benefits to the
                 State. It is expected that the Vendor’s approach will provide rollout support
                 that minimizes costs and maximizes availability.

                 Responsibility Matrix (State Primary)
                                            Vendor                             State
                                 Recommend alternative rollout    Adopt rollout strategy
                       Plan




                                 strategies                       Approve rollout plan
                                 Develop rollout plan             Support rollout plan development
                                 Develop contingency plan
                                 Support rollout                  Manage and execute rollout
                       Execute




                                                                  Validate success
                                                                  Make Go-Live decision



                 Vendor Response
                 The Vendor’s response must describe its approach to implementation and
                 rollout planning, identify its successful rollout strategies and techniques,
                 explain its preference (and illustrate with success stories) and recommend a
                 preliminary rollout strategy for this implementation project and describe the
                 relative roles of the State and the Vendor assumed for this recommendation.




Management Requirements                                                                        125
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 If the Vendor’s recommended strategy is for something other than “big bang”
                 information regarding this alternative may be included in the response as a
                 separate item in both the technical and cost sections.

       4.2.13. Post Implementation Support
                 The Vendor is required to provide 60 days of on-site post implementation
                 support for the system and one year of post implementation support for its
                 central financial management processes. The support for the system will
                 address post implementation fixes and technical support to the application.
                 The support for the financial management processes will focus on closing
                 processes, generation of data needed for the CAFR, support for 1099
                 processing and training related to these processes. The functional support is
                 required to assist with specific system activities and is not expected to require
                 full-time on-site assistance.

                        Expected Deliverables and Work Products:
                               Technical and Functional Support (W)

                 Background
                 The State has significant experience with the technical aspects of PeopleSoft
                 applications having gained this experience through the development,
                 implementation and operation of its PHRST system (PeopleSoft’s Human
                 Capital Management 8.8). The only experience with PeopleSoft Financials has
                 been through the “sandbox” environment.

                 State Preferences
                 The State believes that through knowledge transfer, training, testing and other
                 associated learning experiences gained through working with the Vendor to the
                 implement the PeopleSoft Financials application that it will be reasonably
                 prepared to undertake ongoing operations. As a safeguard, however, the State
                 feels that additional technical support will be required to carry out system fixes
                 and upgrades that occur during the first months of system operations. In
                 addition, functional support will be needed to assist with year end closing
                 processes, the generation of data needed for the CAFR, the processing of 1099
                 forms and the training related to these processes.

                 Responsibility Matrix (Vendor Primary)
                                               Vendor                              State
                                   Provide technical support through   Manage the support organization
                                   participation in the State’s        Manage system operations
                                   operational system support          Manage financial operations
                       Execution




                                   organization
                                   Provide functional support in
                                   accordance with the support
                                   agreement developed through this
                                   RFP




126                                                                          Management Requirements
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                 Vendor Response
                 The technical proposal must describe the Vendor’s philosophy and approach to
                 providing the technical and functional post implementation support requested
                 and identify the resources it would make available to the State to provide this
                 support.

                 In the cost proposal, the cost of this support must be identified in the separate
                 schedule provided.

   4.3. Project Phases
         While the final work plan will be based on the submission from the successful Vendor,
         the material in this section is based on the assumption that the project will go through
         five major phases:

                 The primary focus of the initiation phase will be the review and assessment of
                 the products produced by the Project Team and the transitional milestone for
                 this phase will be the approval of a final project plan that reflects the results of
                 this assessment.
                 The design phase will focus on completion of the module configuration
                 documents and design documents for customizations, modifications, interfaces,
                 conversion and reports. The transitional milestone for this phase will be the
                 critical review and acceptance of all design materials.
                 Implementation of the design documents will be the focus of the build phase,
                 which will culminate in the user acceptance test and the acceptance of the
                 system.
                 The transition phase is concerned with the transition of the system from the
                 development to the production environment and the roll-out of the system to
                 users State-wide. The transition phase ends with documentation of a successful
                 rollout.
                 Overlapping build and transition is the training phase, ensuring that all users
                 are adequately prepared to used the system on a daily basis and that the
                 infrastructure is in place to support them. This end of this phase is marked by
                 successful completion of all training.

         The completion of all phases moves the system to production operations and post
         production support.




Management Requirements                                                                         127
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




5. RFP Administrative Information

   5.1. RFP Issuance

       5.1.1. Obtaining Copies of the RFP
             This RFP is available in electronic form only through the State of Delaware,
             Department of Finance website at http://finance.state.de.us/implementation and the
             State of Delaware Procurement website at http://www.state.de.us/dss/bids.shtml.
             Paper copies of this RFP will not be available.

       5.1.2. Solicitation Advertising
             Public notice has been provided in accordance with 29 Del. C. §§6902 (1), 6981
             and 6982.

       5.1.3. Assistance to Vendors with a Disability
             Vendors with a disability may receive accommodation regarding the means of
             communicating this RFP or participating in the procurement process. For more
             information, contact the Designated Contact no later than ten days prior to the
             deadline for receipt of proposals.

       5.1.4. RFP Designated Contact
             All requests, questions, or other communications about this RFP shall be made in
             writing to the State of Delaware. Address all communications to the person listed
             below: communications made to other State of Delaware personnel or attempting to
             ask questions by phone or in person will not be allowed or recognized as valid and
             may disqualify the Vendor. Vendors should rely only on written statements issued
             by the RFP designated contact.

                       Rich Elliott
                       State of Delaware Department of Finance
                       Financials Reengineering Project
                       800 Silver Lake Boulevard, Suite 100
                       Dover, DE 19904
                       rich.elliott@state.de.us e-mail

             To ensure that written requests are received and answered in a timely manner,
             electronic mail (e-mail) correspondence is acceptable, but other forms of delivery,
             such as postal and courier services can also be used.

       5.1.5. Consultants and Legal Counsel
             The State of Delaware may retain consultants or legal counsel to assist in the
             review and evaluation of this RFP and the Vendor responses. Vendors shall not
             contact the State’s consultant or legal counsel on any matter related to the RFP.

       5.1.6. Contact with State Employees
             Direct contact with State of Delaware employees other than the State of Delaware
             Designated Contact regarding this RFP is expressly prohibited without prior


128                                                            RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

             consent. Vendors directly contacting State of Delaware employees risk elimination
             of their proposal from further consideration. Exceptions exist only for
             organizations currently doing business in the State who require contact in the
             normal course of doing that business.

       5.1.7. Organizations Ineligible to Bid
             Any individual, business, organization, corporation, consortium, partnership, joint
             venture, or any other entity including subcontractors currently debarred or
             suspended is ineligible to bid. Any entity ineligible to conduct business in the State
             of Delaware for any reason is ineligible to respond to the RFP.

       5.1.8. Exclusions
             The Proposal Evaluation Team reserves the right to refuse to consider any proposal
             from a Vendor who:

             5.1.8.1.   Has been convicted for commission of a criminal offense as an incident
                        to obtaining or attempting to obtain a public or private contract or
                        subcontract, or in the performance of the contract or subcontract;
             5.1.8.2.   Has been convicted under State or federal statutes of embezzlement,
                        theft, forgery, bribery, falsification or destruction of records, receiving
                        stolen property, or other offense indicating a lack of business integrity or
                        business honesty that currently and seriously affects responsibility as a
                        State Vendor;
             5.1.8.3.   Has been convicted or has had a civil judgment entered for a violation
                        under State or federal antitrust statutes;
             5.1.8.4.   Has violated contract provisions such as:
                          a. Knowing failure without good cause to perform in accordance with
                               the specifications or within the time limit provided in the contract;
                               or
                          b. Failure to perform or unsatisfactory performance in accordance
                               with terms of one or more contracts;
             5.1.8.5.   Has violated ethical standards set out in law or regulation; and
             5.1.8.6.   Any other cause listed in regulations of the State of Delaware determined
                        to be serious and compelling as to affect responsibility as a State Vendor,
                        including debarment by another governmental entity for a cause listed in
                        the regulations.




RFP Administrative Information                                                                 129
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



   5.2. RFP Submissions

       5.2.1. RFP Overview
               The State of Delaware Department of Finance seeks implementation and project
               management services for the Financials Reengineering project. This request for
               proposal (“RFP”) is issued pursuant to 29 Del. C. §§6902(1), 6981 and 6982.

               The proposal must conform to the formats outlined in the Vendor Technical
               Response section (Section 6) and the Vendor Cost Response section (Section 7)
               of the RFP. The State of Delaware specifically reserves the right to waive any
               informalities or irregularities in the proposal format. Each proposal must be
               accompanied by a transmittal letter which briefly summarizes the proposing
               Vendor’s interest in providing the required professional services. The transmittal
               letter must also clearly state and justify any exceptions to the requirements of the
               RFP which the Vendor may have taken in presenting the proposal. Furthermore,
               the transmittal letter must attest to the fact that no activity related to this proposal
               contract will take place outside of the United States. The State of Delaware
               reserves the right to deny any and all exceptions taken to the RFP requirements.

       5.2.2. Acknowledgement of Understanding of Terms
               By submitting a bid, each Vendor shall be deemed to acknowledge that it has
               carefully read all sections of this RFP, including all forms, schedules and exhibits
               hereto, and has fully informed itself as to all existing conditions and limitations.

       5.2.3. Proposals
               To be considered, all proposals must be submitted in writing and respond to the
               items outlined in this RFP using the requested format. The State reserves the
               right to reject any non-responsive or non-conforming proposals. Each proposal
               must be submitted with 20 paper copies and one electronic copy on a CD. The
               technical and cost proposals must be separated and placed into sealed envelopes
               conspicuously labeled “Sealed Proposal – State of Delaware PeopleSoft
               Financials Implementation (Technical or Cost) Proposal”. (The Technical
               and Cost proposals must be sealed and labeled separately.)

               The separate proposal envelopes shall be enclosed as “inner” envelopes to a
               larger envelope. The “inner” envelopes must be sealed and marked as indicated
               above and should also contain the name, address and telephone number of the
               proposing Vendor.

               All properly sealed and marked proposals are to be sent to the State of Delaware
               and received no later than 2:00 PM EST on Friday, April 7, 2006. The
               Proposals may be delivered by Express Delivery (e.g., FedEx, UPS, etc.), US
               Mail, or by hand to:

                       State of Delaware Department of Finance
                       PeopleSoft Financials Implementation Project
                       800 Silver Lake Boulevard, Suite 100
                       Dover, DE 19904



130                                                               RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               Any proposal submitted by mail shall be sent by either certified or registered
               mail. Proposals must be received at the above address no later than 2:00 PM
               EST on Friday, April 7, 2006. Any proposal received after this date shall not be
               considered and shall be returned unopened. The proposing Vendor bears the risk
               of delays in delivery. The contents of any proposal shall not be disclosed or to be
               made available to competing entities during the negotiation process.

               Upon receipt of Vendor proposals, each Vendor shall be presumed to be
               thoroughly familiar with all specifications and requirements of this RFP. The
               failure or omission to examine any form, instrument or document shall in no way
               relieve Vendors from any obligation in respect to this RFP.

       5.2.4. Proposal Modifications
               Any changes, amendments or modifications to a proposal must be made in
               writing, submitted in the same manner as the original response and conspicuously
               labeled as a change, amendment or modification to a previously submitted
               proposal. Changes, amendments or modifications to proposals shall not be
               accepted or considered after the hour and date specified as the deadline for
               submission of proposals.

               Proposals may be withdrawn by written notice. Proposals may be withdrawn in
               person by the Vendor or an authorized representative, providing the
               representative’s identity is made known and a receipt is signed for the proposal.

       5.2.5. Proposal Costs and Expenses
               The State of Delaware will not pay any costs incurred by any Vendor associated
               with any aspect of responding to this solicitation, including proposal preparation,
               printing or delivery, attendance at Vendor’s conference, system demonstrations
               or negotiation process.

       5.2.6. Proposal Expiration Date
               Prices quoted in the proposal shall remain fixed and binding on the Vendor for
               120 days from proposal submittal. The State of Delaware reserves the right to
               ask for an extension of time if needed.

       5.2.7. Late Proposals
               Proposals received after the specified date and time will not be considered. To
               guard against premature opening, sealed proposals shall be submitted, plainly
               marked with the proposal title, Vendor name, and time and date of the proposal
               opening. Evaluation of the proposals is expected to begin shortly after the
               proposal due date.

               Under the State procurement code, proposals received after the deadline will not
               be accepted. To document compliance with the deadline, the proposal will be
               date and time stamped upon receipt.

       5.2.8. Proposal Opening
               The State of Delaware will receive proposals until the date and time shown in
               this RFP. Proposals will be opened only in the presence of the State of Delaware



RFP Administrative Information                                                                131
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               personnel. The State of Delaware, at its option, may leave unopened any
               proposal received after the date and time specified for receipt of proposals. Any
               unopened proposals will be returned to Vendor.

               There will be no public opening of proposals but a public log will be kept of the
               names of all Vendor organizations that submitted proposals. The contents of any
               proposal shall not be disclosed to competing Vendors prior to contract award.


       5.2.9. Non-Conforming Proposals
               Non-conforming proposals will not be considered. Non-conforming proposals
               are defined as those that do not meet the requirements of this RFP, and/or
               propose services other than that which meet the defined requirements of the
               proposal.

               The State of Delaware reserves the right to accept or reject any or all responses to
               this RFP, waive minor informalities, and to accept only the most qualified
               responses in the judgment of the State of Delaware. The determination of
               whether an RFP condition is substantive or a mere formality shall reside solely
               within the State of Delaware.

       5.2.10. Concise Proposals
               The State of Delaware discourages overly lengthy and costly proposals. It is the
               desire that proposals be prepared in a straightforward and concise manner.
               Unnecessarily elaborate brochures or other promotional materials beyond those
               sufficient to present a complete and effective proposal are not desired. The State
               of Delaware’s interest is in the quality and responsiveness of the proposal.

       5.2.11. Realistic Proposals
               It is the expectation of the State of Delaware that Vendors can fully satisfy the
               obligations of the proposal in the manner and timeframe defined within the
               proposal. Proposals must be realistic and must represent the best estimate of
               time, materials and other costs including the impact of inflation and any
               economic or other factors that are reasonably predictable.

               The State of Delaware shall bear no responsibility or increase obligation for a
               Vendor’s failure to accurately estimate the costs or resources required to meet the
               obligations defined in the proposal.

       5.2.12. Multi-Vendor Solutions (Joint Ventures)
               Multi-Vendor solutions (joint ventures) will be allowed only if one of the venture
               partners is designated as the “Prime Vendor”. The “Prime Vendor” must be the
               joint venture’s contact point for the State of Delaware and be responsible for the
               joint venture’s performance under the contract, including all project
               management, legal and financial responsibility for the implementation of all
               Vendor’s systems. If a joint venture is proposed, a copy of the joint venture
               agreement clearly describing the responsibilities of the partners must be
               submitted with the proposal. Services specified in the proposal shall not be
               subcontracted without prior written approval by the State of Delaware, and



132                                                             RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               approval of a request to subcontract shall not in any way relieve Vendor of
               responsibility for the professional and technical accuracy and adequacy of the
               work. Further, Vendor shall be and remain liable for all damages to the State of
               Delaware caused by negligent performance or non-performance of work by its
               subcontractor or its sub- subcontractor.

               Multi-Vendor proposals must be a consolidated response with all cost included in
               the cost summary. Where necessary, RFP response pages are to be duplicated for
               each Vendor.

           5.2.12.1. Prime Vendor
                       The State of Delaware expects to negotiate and contract with only one
                       “Prime Vendor”. The State of Delaware will not accept any proposals
                       that reflect an equal teaming arrangement or from Vendors who are co-
                       bidding on this RFP. The Prime Vendor will be responsible for the
                       management of all subcontractors.

                       Any contract that may result from this RFP shall specify that the Prime
                       Vendor is solely responsible for fulfillment of any contract with the State
                       as a result of this procurement. The State will make contract payments
                       only to the awarded Vendor. Payments to any-subcontractors are the
                       sole responsibility of the Prime Vendor (awarded Vendor).

                       Nothing in this section shall prohibit the State of Delaware from the full
                       exercise of its options under Section 5.2.16 regarding multiple source
                       contracting.

           5.2.12.2. Sub-Contracting
                       The Vendor selected shall be solely responsible for contractual
                       performance and management of all subcontract relationships. This
                       contract allows subcontracting assignments; however, Vendors assume
                       all responsibility for work quality, delivery, installation, maintenance,
                       and any supporting services required by a subcontractor.

                       Use of s subcontractors must be clearly explained in the proposal, and
                       major subcontractors must be identified by name. The Prime Vendor
                       shall be wholly responsible for the entire contract performance
                       whether or not subcontractors are used. Any sub-Vendors must be
                       approved by the PeopleSoft Financials Implementation Project Manager.

           5.2.12.3. Multiple Proposals
                       A Prime Vendor may not participate in more than one proposal in any
                       form. Sub-contracting Vendors may participate in multiple joint venture
                       proposals.

       5.2.13. Discrepancies and Omissions
               Vendor is fully responsible for the completeness and accuracy of its proposal,
               and for examining this RFP and all addenda. Failure to do so will be at the sole
               risk of Vendor. Should Vendor find discrepancies, omissions, unclear or



RFP Administrative Information                                                                133
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               ambiguous intent or meaning, or should any questions arise concerning this RFP,
               Vendor shall notify the State of Delaware’s Designated Contact, in writing, of
               such findings at least ten (10) days before the proposal opening. This will allow
               issuance of any necessary addenda. It will also help prevent the opening of a
               defective proposal and exposure of Vendor’s proposal upon which award could
               not be made. All unresolved issues should be addressed in the proposal.

               Protests based on any omission or error, or on the content of the solicitation, will
               be disallowed if these faults have not been brought to the attention of the
               Designated Contact, in writing, no later than ten (10) calendar days prior to the
               time set for opening of the proposals.

           5.2.13.1. RFP Question and Answer Process
               The State of Delaware will allow written requests for clarification of the RFP.
               All questions will be consolidated into a single set of responses and e-mailed by
               12:00 PM each Friday. Vendors’ names will be removed from questions in the
               responses released. Questions should be submitted in the following format.
               Deviations from this format will not be accepted.

                                Section number

                                Paragraph number

                                Page number

                                Text of passage being questioned

                                Question

               Questions not submitted electronically shall be accompanied by a diskette and
               questions shall be formatted in Microsoft Word or PDF.

       5.2.14. State’s Right to Reject Proposals
               The State of Delaware reserves the right to reject any or all proposals or any part
               of any proposal, to waive defects, technicalities or any specifications (whether
               they be in the State of Delaware’s specifications or Vendor’s response), to sit and
               act as sole judge of the merit and qualifications of each product offered, or to
               solicit new proposals on the same project or on a modified project which may
               include portions of the originally proposed project as the State of Delaware may
               deem necessary in the best interest of the State of Delaware.

       5.2.15. State’s Right to Cancel Solicitation
               The State of Delaware reserves the right to cancel this solicitation at any time
               during the procurement process, for any reason or for no reason. The State of
               Delaware makes no commitments expressed or implied, that this process will
               result in a business transaction with any organization.

               This RFP does not constitute an offer by the State of Delaware. The Vendor’s
               participation in this process may result in the State of Delaware selecting it to
               engage in further discussions and negotiations toward execution of a contract.


134                                                             RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               The commencement of such negotiations does not, however, signify a
               commitment by the State of Delaware to execute a contract nor to continue
               negotiations. The State of Delaware may terminate negotiations at any time and
               for any reason, or for no reason.

       5.2.16. State’s Right to Award Multiple Source Contracting
               Pursuant to 29 Del. C. §§6986, the State of Delaware may award a contract for a
               particular professional service to two or more Vendors if the organization head
               makes a determination that such an award is in the best interest of the State of
               Delaware.

       5.2.17. Notification of Withdrawal of Proposal
               Vendor may modify or withdrawal its proposal by written request, provided that
               both proposal and request is received by the State of Delaware prior to the
               proposal due date. Proposals may be re-submitted in accordance with the
               proposal due date in order to be considered further.

               Proposals become the property of the State of Delaware at the proposal
               submission deadline. All proposals received are considered Vendor offers at that
               time.

       5.2.18. Revisions to the RFP
               If it becomes necessary to revise any part of the RFP, an addendum will be
               provided to all registered Vendor(s) by the Designated Contact. The State of
               Delaware is not bound by any statement related to this RFP made by any State of
               Delaware employee, Vendor or its agents.

       5.2.19. Exceptions to the RFP
               The format of the RFP must be followed and all requested information must be
               submitted as indicated. Any exceptions to the RFP, or the State of Delaware’s
               terms and conditions, must be highlighted and included in writing in the
               proposal. Acceptance of exceptions is within the sole discretion of the evaluation
               committee.

       5.2.20. Award of Contract
               The final award of a contract is subject to approval by the State of Delaware.
               The State of Delaware has the sole right to select the successful Vendor(s) for
               award, to reject any proposal as unsatisfactory or non-responsive, to award a
               contract to other than the lowest priced proposal, to award multiple contracts, or
               not to award a contract, as a result of this RFP.

               Notice in writing to a Vendor of the acceptance of its proposal by the State of
               Delaware and the subsequent full execution of a written contract will constitute a
               contract, and no Vendor will acquire any legal or equitable rights or privileges
               until the occurrence of both such events.

           5.2.20.1. RFP Award Notifications
                       After reviews of the evaluation committee report and its
                       recommendation, and once the contract terms and conditions have been


RFP Administrative Information                                                                135
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                       finalized, the State of Delaware will award the contract. This process is
                       expected to be completed by June 1, 2006.

                       The contract shall be awarded to the Vendor whose proposal is most
                       advantageous, taking into consideration the evaluation factors set forth in
                       the RFP.

                       It should be explicitly noted that the State of Delaware is not obligated to
                       award the contract to the Vendor who submits the lowest bid or the
                       Vendor who receives the highest total point score, rather the contract will
                       be awarded to the Vendor whose proposal is the most advantageous to
                       the State of Delaware. The award is subject to the appropriate State of
                       Delaware approvals.

                       After a final selection is made, the winning Vendor will be invited to
                       negotiate a contract with the State of Delaware; remaining Vendors will
                       be notified in writing of their selection status.

   5.3. RFP Evaluation Process
       An evaluation team composed of representatives of the State of Delaware will evaluate
       proposals on a variety of quantitative criteria. Neither the lowest price nor highest
       scoring proposal will necessarily be selected. The State of Delaware may award a
       contract based on its initial review of proposals received without further discussion of
       any proposals with any Vendor.

       The State of Delaware reserves full discretion to determine the competence and
       responsibility, professionally and/or financially, of Vendors. Vendors are to provide in a
       timely manner any and all information that the State of Delaware may deem necessary to
       make a decision.

       5.3.1. Proposal Evaluation Team
               The Proposal Evaluation Team shall be comprised of representatives of the State
               of Delaware. The team shall determine which Vendors meet the minimum
               requirements pursuant to selection criteria of the RFP and procedures established
               in 29 Del. C. §§ 6981, 6982. The team expects to receive an oral presentation
               from at least one of the qualified Vendors. The team may negotiate with one or
               more Vendors during the same period and may, at its discretion, terminate
               negotiations with any or all Vendors. The team shall make a recommendation
               regarding the award to the Executive Sponsors of the project who shall have final
               authority, subject to the provisions of this RFP and 29 Del. C. § 6982, to award a
               contract to the successful Vendor in the best interests of the State of Delaware.

       5.3.2. Proposal Selection Criteria
               The Proposal Evaluation Team shall assign up to the maximum number of points
               for each Evaluation Item to each of the proposing Vendor’s proposals. All
               assignments of points shall be at the sole discretion of the Proposal Evaluation
               Team.

               The proposals all contain the essential information on which the award decision
               shall be made. The information required to be submitted in response to this RFP


136                                                            RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               has been determined by the State of Delaware’s Department of Finance and the
               Proposal Evaluation Team to be essential for use by the team in the bid
               evaluation and award process. Therefore, all instructions contained in this RFP
               shall be met in order to qualify as a responsive and responsible Vendor and
               participate in the Proposal Evaluation Team’s consideration for award. Proposals
               which do not meet or comply with the instructions of this RFP may be considered
               non-conforming and deemed non-responsive and subject to disqualification at the
               sole discretion of the team.

               The Team reserves the right to:
                      Select for contract or for negotiations a proposal other than that with
                      lowest costs or the highest points.
                      Reject any and all proposals or portions of proposals received in
                      response to this RFP or to make no award or issue a new RFP.
                      Waive or modify any information, irregularity, or inconsistency in
                      proposals received.
                      Request modification to proposals from any or all Vendors during the
                      contract review and negotiation.
                      Negotiate any aspect of the proposal with any Vendor and negotiate with
                      more than one Vendor at the same time.

             5.3.2.1. Criteria Weight
                       All proposals shall be evaluated using the same criteria and scoring
                       process. The following criteria shall be used by the Proposal Evaluation
                       Team to evaluate proposals:

                          Specification                                       Weight
                          Vendor Staff Experience & Qualifications             20
                          Vendor Understanding of Project Scope                20
                          Vendor Response to Technical Topics                   20
                          Vendor Response to Management Topics                 15
                          Proposed Cost (Pricing)                              15
                          Corporate Qualifications                             10
                                                               Total          100%


             5.3.2.2. Evaluation Factors
                       Any points awarded will be based upon the quality and thoroughness of
                       the Vendor’s response to each evaluation factor as follows:

                       Vendor Staff Experience & Qualifications
                       The State of Delaware will consider the experience and qualifications of
                       the proposed Vendor staff as part of the evaluation criteria. The Vendor
                       staff will include all sub-Vendor qualifications and staff. The evaluation
                       of proposals will include, but not be limited to, and in no particular
                       hierarchy, the following criteria:

                           1. Demonstrated experience in a state government environment
                              within the past three years to successfully install a similar



RFP Administrative Information                                                                137
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                              system, with emphasis on the specific capabilities required by
                              the State of Delaware.
                           2. Qualifications, experience and technical expertise of proposed
                              Vendor staff.

                       Vendor Understanding of Project Scope
                       The Proposal Evaluation Team will favor Vendors who propose a
                       detailed project plan with sufficient breakdown of tasks and steps to
                       demonstrate a complete understanding of the project. The evaluation of
                       proposals will include, but not be limited to, and in no particular
                       hierarchy, the following criteria:

                           1. General quality, responsiveness and thoroughness of the
                              proposal and the suitability and quality of the Vendor’s
                              approach.
                           2. Sufficient detail in RFP response to demonstrate a clear
                              understanding of project scope.
                           3. Feasibility, timeliness and quality of the implementation
                              schedule; demonstrated ability to meet implementation
                              deadlines.
                           4. Level of service and responsiveness that the Vendor commits to
                              providing to the State of Delaware.

                       Vendor Response to Technical Topics
                       The Proposal Evaluation Team will give favorable consideration to the
                       responses that meet the mandatory functional requirements described in
                       the Technical Topics addressed in this RFP. The evaluation of proposals
                       will include, but not be limited to, and in no particular hierarchy, the
                       following criteria:

                           1. Fulfillment of the requirements as stated in this RFP.
                           2. Demonstration of the Vendor’s understanding of the State of
                              Delaware’s purpose, scope and objectives.
                           3. Proposed plan to implement the described functionality of
                              PeopleSoft Financials, including the level of integration between
                              modules as determined by the evaluation team.
                           4. Vendor response to reporting, interfaces and data conversion
                              requirements.
                           5. Vendor discussion of financials configuration and design
                              specifications.
                           6. The extent and quality of user, administrator and manager
                              training and documentation to be provided.

                       Vendor Response to Management Topics
                       The State of Delaware believes that effective project management is
                       essential for a successful implementation. Vendors will be evaluated on
                       the completeness and responsiveness of their project management plans
                       and the Project Team assigned.




138                                                          RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                       As part of the project management plan, Vendors must demonstrate
                       adequate experience in developing and implementing similar government
                       projects. The State of Delaware’s confidence in the Vendor’s ability to
                       meet deadlines and successfully manage similar projects will be a
                       primary consideration. The evaluation of proposals will include, but not
                       be limited to, and in no particular hierarchy, the following criteria:

                           1. Responsiveness of Vendor’s description of project plan and
                              approach.
                           2. Proposal to complete the business process reengineering and
                              workflow design requirements.
                           3. Ability to manage issues and risks.
                           4. Demonstrated commitment to successful Change Management.
                           5. Thoroughness of training and knowledge transfer plans.

                       Proposed Cost
                       The State of Delaware will consider pricing as part of the evaluation
                       criteria. A contract will not necessarily be awarded to the lowest cost
                       Vendor; however, large pricing differentials between Vendors will be
                       carefully examined. The State reserves the right to exclude extremely
                       high or extremely low cost proposals from further consideration. The
                       evaluation of proposals will include, but not be limited to, and in no
                       particular hierarchy, the following criteria:

                           1. Economic feasibility and justification of all costs.
                           2. The thoroughness and responsiveness of the total cost proposal.
                           3. The ranking of the total proposed cost versus the other submitted
                              proposals.

                       Corporate Qualifications
                       The State of Delaware seeks to contract with a financially stable and
                       established organization that can be relied on to provide the proposed
                       resources for a successful project. The Proposal Evaluation Team will
                       seek evidence that the Vendor has the resources available to meet the
                       State’s requirements under unexpected conditions which may occur. The
                       Proposal Evaluation Team may contact Vendor references regarding the
                       Vendor’s technical capabilities, project management skills, and ongoing
                       support. If the State of Delaware requests a site visit, the visit will be a
                       factor in the evaluation. The evaluation of proposals will include, but not
                       be limited to, and in no particular hierarchy, the following criteria:

                           1.   Quality and number of references.
                           2.   Financial stability and resources of the Vendor.
                           3.   The length of time the organization has been in the business.
                           4.   The amount of experience the organization has in implementing
                                PeopleSoft Financial software for a state government.




RFP Administrative Information                                                                139
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       5.3.3. Proposal Clarification
               The Proposal Evaluation Team may contact any Vendor in order to clarify
               uncertainties or eliminate confusion concerning the contents of a proposal.
               Proposals may not be modified as a result of any such clarification request.

       5.3.4. References
               The Proposal Evaluation Team may contact any customer of the Vendor, whether
               or not included in the Vendor’s reference list, and use such information in the
               evaluation process. Additionally, the State of Delaware may choose to visit
               existing installations of comparable systems, which may or may not include
               Vendor personnel. If the Vendor is involved in such site visits, the State of
               Delaware will pay travel costs only for State of Delaware personnel for these
               visits.

       5.3.5. Oral Presentations
               Selected Vendors may be invited to make oral presentations to the Proposal
               Evaluation Team. The Vendor representative(s) attending the oral presentation
               shall be technically qualified to respond to questions related to the proposed
               system and its components.

               All Vendors costs associated with participation in oral discussions and system
               demonstrations conducted for the State of Delaware are the Vendor’s
               responsibility.




140                                                            RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



   5.4. RFP Contract Terms and Conditions
       The contract awarded under this RFP will include, but not be limited to, the following
       contractual provisions:

       5.4.1. General Terms

           5.4.1.1. The State of Delaware reserves the right to incorporate standard State
                    contractual provisions into any contract negotiated as a result of a proposal
                    submitted in response to this RFP. Vendors will be required to sign the
                    contract for all services, and may be required to sign additional agreements.

           5.4.1.2. The selected Vendor or Vendors will be expected to enter negotiations with
                    the State of Delaware, which will result in a formal contract between parties.
                    Procurement will be in accordance with subsequent contracted agreement.
                    This RFP and the selected Vendor’s response to this RFP will be
                    incorporated as part of any formal contract.

           5.4.1.3. In the event the successful Vendor materially breaches any obligation under
                    this agreement, the State of Delaware may terminate this agreement upon
                    thirty (30) days written notice.

           5.4.1.4. It may be at the State of Delaware’s discretion as to the location of work for
                    the contractual support personnel during the project period. The State of
                    Delaware shall provide working space and sufficient supplies and material to
                    augment the Vendor’s services.

           5.4.1.5. The parties hereto shall be independent contractors to one another, and
                    nothing herein shall be deemed to cause this agreement to create an
                    organization, partnership, joint venture or employment relationship between
                    parties. Each party shall be responsible for compliance with all applicable
                    workers compensation, unemployment, disability insurance, social security
                    withholding and all other similar matters. Neither party shall be liable for
                    any debts, accounts, obligations or other liability whatsoever of the other
                    party, or any other obligation of the other party to pay on the behalf of its
                    employees or to withhold from any compensation paid to such employees
                    any social benefits, workers compensation insurance premiums or any
                    income or other similar taxes.

           5.4.1.6. Prior to receiving an award, the successful Vendor shall either furnish the
                    State of Delaware with proof of State of Delaware Business Licensure or
                    initiate the process of application where required. An application may be
                    requested in writing to: Division of Revenue, Carvel State Building, P.O.
                    Box 8750, 820 N. French Street, Wilmington, DE 19899 or by telephone to
                    one of the following numbers: (302) 577-8200—Public Service, (302) 577-
                    8205—Licensing Department.

                   Information regarding the award of the contract will be given to the Division
                   of Revenue. Failure to comply with the State of Delaware licensing




RFP Administrative Information                                                                141
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                   requirements may subject your organization to applicable fines and/or
                   interest penalties.

       5.4.2. Confidentiality of Documents
               All documents submitted as part of the Vendor’s proposal will be deemed
               confidential during the evaluation process. Vendor proposals will not be
               available for review by anyone other than the State of Delaware/Proposal
               Evaluation Team or its designated agents. There shall be no disclosure of any
               Vendor’s information to a competing Vendor prior to award of the contract.

               The State of Delaware is a public organization as defined by state law, and as
               such, it is subject to the Delaware Freedom of Information Act, 29 Del. C. Ch.
               100. Under the law, all the State of Delaware’s records are public records (unless
               otherwise declared by law to be confidential) and are subject to inspection and
               copying by any person. Vendor(s) are advised that once a proposal is received
               by the State of Delaware and a decision on contract award is made, its contents
               will become public record and nothing contained in the proposal will be deemed
               to be confidential except proprietary information.

               Vendor(s) shall not include any information in their proposal that is proprietary
               in nature or that they would not want to be released to the public. Proposals must
               contain sufficient information to be evaluated and a contract written without
               reference to any proprietary information. If a Vendor feels that they cannot
               submit their proposal without including proprietary information, they must
               adhere to the following procedure or their proposal may be deemed unresponsive
               and will not be recommended for selection. Vendor(s) must submit such
               information in a separate, sealed envelope labeled “Proprietary Information” with
               the RFP number. The envelope must contain a letter from the Vendor’s legal
               counsel describing the documents in the envelope, representing in good faith that
               the information in each document is not “public record” as defined by 29 Del. C.
               § 10002(d), and briefly stating the reasons that each document meets the said
               definitions.

               Upon receipt of a proposal accompanied by such a separate, sealed envelope, the
               State of Delaware will open the envelope to determine whether the procedure
               described above has been followed.

       5.4.3. Default
               If the Vendor to whom the award is made fails to enter into the agreement as
               herein provided, the award will be annulled, and an award may be made to
               another Vendor. Such Vendor shall fulfill every stipulation embraced herein as if
               they were the party to whom the first award was made.

       5.4.4. Collusion or Fraud
               Any evidence of agreement or collusion among Vendor(s) and prospective
               Vendor(s) acting to illegally restrain freedom from competition by agreement to
               offer a fixed price, or otherwise, will render the offers of such Vendor(s) void.

               By responding, the Vendor shall be deemed to have represented and warranted
               that its proposal is not made in connection with any competing Vendor


142                                                            RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               submitting a separate response to this RFP, and is in all respects fair and without
               collusion or fraud; that the Vendor did not participate in the RFP development
               process and had no knowledge of the specific contents of the RFP prior to its
               issuance; and that no employee or official of the State of Delaware participated
               directly or indirectly in the Vendor’s proposal preparation.

               Advance knowledge of information which gives any particular Vendor
               advantages over any other interested Vendor(s), in advance of the opening of
               proposals, whether in response to advertising or an employee or representative
               thereof, will potentially void that particular proposal.

       5.4.5. Lobbying and Gratuities
               Lobbying or providing gratuities shall be strictly prohibited. Vendors found to
               be lobbying, providing gratuities to, or in any way attempting to influence a State
               of Delaware employee or agent of the State of Delaware concerning this RFP or
               the award of a contract resulting from this RFP shall have their proposal
               immediately rejected and shall be barred from further participation in this RFP.

               The selected Vendor will warrant that no person or selling organization has been
               employed or retained to solicit or secure a contract resulting from this RFP upon
               agreement or understanding for a commission, or a percentage, brokerage or
               contingent fee. For breach or violation of this warranty, the State of Delaware
               shall have the right to annul any contract resulting from this RFP without liability
               or at its discretion deduct from the contract price or otherwise recover the full
               amount of such commission, percentage, brokerage or contingent fee.

               All contact with State of Delaware employees, Vendors or agents of the State of
               Delaware concerning this RFP shall be conducted in strict accordance with the
               manner, forum and conditions set forth in this RFP.

       5.4.6. Solicitation of State Employees
               Until contract award, Vendors shall not, directly or indirectly, solicit any
               employee of the State of Delaware to leave the State of Delaware’s employ in
               order to accept employment with the Vendor, its affiliates, actual or prospective
               Vendors, or any person acting in concert with Vendor, without prior written
               approval of the State of Delaware’s contracting officer. Solicitation of State of
               Delaware employees by a Vendor may result in rejection of the Vendor’s
               proposal.

               This paragraph does not prevent the employment by a Vendor of a State of
               Delaware employee who has initiated contact with the Vendor. However, State
               of Delaware employees may be legally prohibited from accepting employment
               with the Vendor or subcontractor under certain circumstances. Vendors may not
               knowingly employ a person who cannot legally accept employment under State
               or federal law. If a Vendor discovers that they have done so, they must terminate
               that employment immediately.

       5.4.7. Non-Appropriation
               In the event the General Assembly fails to appropriate the specific funds
               necessary to continue the contractual agreement, in whole or part, the agreement


RFP Administrative Information                                                                143
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               shall be terminated as to any obligation of the State requiring the expenditure of
               money for which no specific appropriation is available at the end of the last fiscal
               year for which no appropriation is available or upon the exhaustion of funds.

       5.4.8. Licenses and Permits
               In performance of this contract, the Vendor is required to comply with all
               applicable federal, State and local laws, ordinances, codes, and regulations. The
               cost of permits and other relevant costs required in the performance of the
               contract shall be borne by the successful Vendor. The Vendor shall be properly
               licensed and authorized to transact business in the State of Delaware as provided
               in 30 Del. C. § 2502.

       5.4.9. Telecom Language in State RFP's with Division of Purchasing
               “The Supplier(s) shall be responsible for the professional quality, technical
               accuracy, timely completion, and coordination of all services furnished by the
               Supplier(s), its subcontractors and its and their principals, officers, employees
               and agents under this Agreement. In performing the specified services, the
               Supplier(s) shall follow practices consistent with generally accepted professional
               and technical standards. The Supplier(s) shall be responsible for ensuring that all
               services, products and deliverables furnished pursuant to this Agreement comply
               with the standards and policies promulgated by the Department of Technology
               and Information (DTI) published at http://www.state.de.us/dti, and as modified
               from time to time by DTI during the term of this Agreement. If any service,
               product or deliverable furnished pursuant to this Agreement does not conform
               with DTI standards, the Supplier(s) shall, at its expense and option either (1)
               replace it with a conforming equivalent or (2) modify it to conform with DTI
               standards. The Supplier(s) shall be and remain liable in accordance with the
               terms of this Agreement and applicable law for all damages to Delaware caused
               by the Supplier's failure to ensure compliance with DTI standards.”

       5.4.10. Notice
               Any notice to the State of Delaware required under this agreement shall be sent
               by registered mail to:

                       Rich Elliott
                       State of Delaware Department of Finance
                       Financials Reengineering Project
                       800 Silver Lake Boulevard, Suite 100
                       Dover, DE 19904

       5.4.11. Formal Contract and Purchase Order
               The successful Vendor shall promptly execute a contract incorporating the terms
               of this RFP within ninety (90) days after award of the contract. No Vendor is to
               begin any service prior to receipt a State of Delaware purchase order signed by
               two authorized representatives of the organization requesting service, properly
               processed through the State of Delaware Department of Finance, Division of
               Accounting. The purchase order shall serve as the authorization to proceed in
               accordance with the bid specifications and the special instructions, once it is
               received by the successful Vendor.



144                                                             RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       5.4.12. Indemnification
               By submitting a proposal, the proposing Vendor agrees that in the event it is
               awarded a contract, it will indemnify and otherwise hold harmless the State of
               Delaware, its agents and employees from any and all liability, suits, actions, or
               claims, together with all costs, expenses for attorney’s fees, arising out of the
               Vendor’s its agents and employees’ performance work or services in connection
               with the contract, regardless of whether such suits, actions, claims or liabilities
               are based upon acts or failures to act attributable, ole or part, to the State, its
               employees or agents.

               Proprietary Rights Indemnification

               Vendor shall warrant that all elements of its solution, including all equipment,
               software, documentation, services and deliverables, do not and will not infringe
               upon or violate any patent, copyright, trade secret or other proprietary rights of
               any third party. In the event of any claim, suit or action by any third party
               against the State of Delaware, the State of Delaware shall promptly notify the
               Vendor in writing and Vendor shall defend such claim, suit or action at Vendor’s
               expense, and Vendor shall indemnify the State of Delaware against any loss,
               cost, damage, expense or liability arising out of such claim, suit or action
               (including, without limitation, litigation costs, lost employee time, and counsel
               fees) whether or not such claim, suit or action is successful.

               If any equipment, software, services (including methods) products or other
               intellectual property used or furnished by the Vendor (collectively “”Products”)
               is or in Vendor’s reasonable judgment is likely to be, held to constitute an
               infringing product, Vendor shall at its expense and option either:

               (a) Procure the right for the State of Delaware to continue using the Product(s);
               (b) Replace the product with a non-infringing equivalent that satisfies all the
                   requirements of the contract; or
               (c) Modify the Product(s) to make it or them non-infringing, provided that the
                   modification does not materially alter the functionality or efficacy of the
                   product or cause the Product(s) or any part of the work to fail to conform to
                   the requirements of the Contract, or only alters the Product(s) to a degree that
                   the State of Delaware agrees to and accepts in writing.




RFP Administrative Information                                                                145
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       5.4.13. Insurance

               5.4.13.1. Vendor recognizes that it is operating as an independent contractor and
                         that it is liable for any and all losses, penalties, damages, expenses,
                         attorney’s fees, judgements, and/or settlements incurred by reason of
                         injury to or death of any and all persons, or injury to any and all
                         property, of any nature, arising out of the Vendor’s negligent
                         performance under this contract, and particularly without limiting the
                         foregoing, caused by, resulting from, or arising out of any act of
                         omission on the part of the Vendor in their negligent performance
                         under this contract.

               5.4.13.2. The Vendor shall maintain such insurance as will protect against
                         claims under Worker’s Compensation Act and from any other claims
                         for damages for personal injury, including death, which may arise from
                         operations under this contract. The Vendor is an independent
                         contractor and is not an employee of the State of Delaware.

               5.4.13.3. During the term of this contract, the Vendor shall, at its own expense,
                         carry insurance minimum limits as follows:
                            a.    Comprehensive General Liability        $1,000,000
                            b.    Professional Liability/Misc. Error &   $1,000,000/$3,000,000
                                  Omissions/Product Liability

                         If the contractual service requires the transportation of departmental
                         clients or staff, the Vendor shall, in addition to the above coverages,
                         secure at its own expense the following coverage:
                            a.    Automotive Liability (Bodily Injury)      $100,000/$300,000
                            b.    Automotive Property Damage (to            $ 25,000
                                  others)

               5.4.13.4. The Vendor shall provide a certificate of insurance as proof that the
                         Vendor has the required insurance.

       5.4.14. Performance Bond
               The selected Vendor warrants that its possesses, or has arranged through
               subcontractors, all capital and other equipment, labor, materials, and licenses
               necessary to carry out and complete the work hereunder in compliance with any
               and all federal and State laws, and county and local ordinances, regulations and
               codes.

               The successful Vendor must submit a performance bond or other suitable
               security in the amount equal to the total cost proposal amount for the period of
               the contractual award. The cost of this bond, or other suitable security, is the
               responsibility of the selected Vendor, and is not to be proposed nor recoverable
               as a separate cost item. The performance bond or other suitable security shall be
               delivered to the State of Delaware by the Vendor prior to finalizing the contract.




146                                                             RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       5.4.15. Contract
               The selected Vendor will be required to enter into a written agreement with the
               State of Delaware. Any proposed modifications to the terms and conditions of
               the standard contract are subject to review and approval by the State of Delaware.

               The State of Delaware’s standard contract will most likely be supplemented with
               the Vendor’s software license, support/maintenance, source code escrow
               agreements, and any other applicable agreements. The terms and conditions of
               these agreements will be negotiated with the finalist during actual contract
               negotiations.


                 5.4.15.1. Warranty – The Vendor provides a warranty that the delivered
                           implementation of PeopleSoft Financials 8.9 will function as
                           designed for a period of no less than twelve months from the date of
                           system acceptance. The warranty shall require the Vendor correct, at
                           its own expense, the setup, configuration, customizations or
                           modifications so that it functions according to the State’s
                           requirements.

                 5.4.15.2. Costs – All costs must be detailed specifically in the Cost Proposal.
                           Vendors must fill out all appropriate cost pages. No charges other
                           than as specified in the proposal shall be allowed without written
                           consent of the State of Delaware. The proposal costs shall include
                           full compensation for all taxes that the selected Vendor is required to
                           pay.

                 5.4.15.3. Payment Schedules – The State of Delaware will require a payment
                           schedule based on defined and measurable milestones. Payments for
                           services will not be made in advance of work performed. The State
                           of Delaware may require holdback of contract monies until
                           acceptable performance is demonstrated (as much as 15%).

                 5.4.15.4. Status Reporting – The selected Vendor will be required to lead
                           and/or participate in status meetings and submit status reports
                           covering such items as progress of work being performed, milestones
                           attained, resources expended, problems encountered and corrective
                           action taken, until final system acceptance.

                 5.4.15.5. Penalties – The State of Delaware may wish to include in the final
                           contract penalty provisions for non-performance, such as liquidated
                           damages.

                 5.4.15.6. Termination for Cause – If for any reasons, or through any cause,
                           the Vendor fails to fullfill in timely and proper manner his
                           obligations under the contract, or if the Vendor violates any of the
                           covenants, agreements or stipulations of the contract, the State of
                           Delaware shall thereupon have the right to terminate the contract by
                           giving written notice to the Vendor of such termination and
                           specifying the effective date thereof, at least twenty (20) days before
                           the effective date of such termination, In that event, all finished or


RFP Administrative Information                                                                147
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                           unfinished documents, data, studies, surveys, drawings, maps,
                           models, photographs and reports or other material prepared by the
                           Vendor under the contract shall, at the option of the State of
                           Delaware, become its property, and the Vendor shall be entitled to
                           receive just and equitable compensation for any satisfactory work
                           completed on such documents and other materials which is useable
                           to the State of Delaware.

                 5.4.15.7. Termination for Convenience – The State of Delaware may
                           terminate the contract at any time by giving written notice of such
                           termination and specifying the effective date thereof, at least twenty
                           (20) days before the effective date of such termination. In that event,
                           all finished or unfinished documents, data, studies, surveys,
                           drawings, maps, models, photographs and reports or other material
                           prepared by the Vendor under the contract shall, at the option of the
                           State of Delaware, become its property, and the Vendor shall be
                           entitled to compensation for any satisfactory work completed on
                           such documents and other materials which is useable to the State of
                           Delaware. If the contract is terminated by the State of Delaware as
                           so provided, the Vendor will be paid an amount which bears the
                           same ratio to the total compensation as the services actually
                           performed bear to the total services of the Vendor as covered by the
                           contract, less payments of compensation previously made. Provided
                           however, that if less than 60 percent of the services covered by the
                           contract have been performed upon the effective date of termination,
                           the Vendor shall be reimbursed (in addition to the above payment)
                           for that portion of actual out of pocket expenses (not otherwise
                           reimbursed under the contract) incurred by the Vendor during the
                           contract period which are directly attributable to the uncompleted
                           portion of the services covered by the contract.

       5.4.16. Non-discrimination
               In performing the services subject to this RFP the Vendor agrees that it will not
               discriminate against any employee or applicant for employment because of race,
               creed, color, sex or national origin. The successful Vendor shall comply with all
               federal and State laws, regulations and policies pertaining to the prevention of
               discriminatory employment practice. Failure to perform under this provision
               constitutes a material breach of contract.

       5.4.17. Covenant against Contingent Fees
               The successful Vendor warrants that no person or selling organization has been
               employed or retained to solicit or secure this contract upon an agreement of
               understanding for a commission or percentage, brokerage or contingent fee
               excepting bona-fide employees, bona-fide established commercial or selling
               organizations maintained by the Vendor for the purpose of securing business.
               For breach or violation of this warranty the State of Delaware shall have the right
               to annul the contract without liability or at its discretion to deduct from the
               contract price or otherwise recover the full amount of such commission,
               percentage, brokerage or contingent fee.




148                                                            RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

       5.4.18. Vendor Activity
               No activity is to be executed in an off shore facility, either by a subcontracted
               Vendor or a foreign office or division of the Vendor. The Vendor must attest to
               the fact that no activity will take place outside of the United States in its
               transmittal letter. Failure to adhere to this requirement is cause for elimination
               from future consideration.

       5.4.19. Contract Documents
               The RFP, the purchase order, the executed contract and any supplemental
               documents between the State of Delaware and the successful Vendor shall
               constitute the contract between the State of Delaware and the Vendor. In the
               event there is any discrepancy between any of these contract documents, the
               following order of documents governs so that the former prevails over the latter:
               contract, RFP, and purchase order. No other documents shall be considered.
               These documents contain the entire agreement between the State of Delaware
               and the Vendor.

       5.4.20. Applicable Law
               The laws of the State of Delaware shall apply, except where federal law has
               precedence. The successful Vendor consents to jurisdiction and venue in the
               State of Delaware.

               In submitting a proposal, Vendors certify that they comply with all federal, State
               and local laws applicable to its activities and obligations including:

                   (1) the laws of the State of Delaware;
                   (2) the applicable portion of the Federal Civil Rights Act of 1964;
                   (3) the Equal Employment Opportunity Act and the regulations issued there
                       under by the federal government;
                   (4) a condition that the proposal submitted was independently arrived at,
                       without collusion, under penalty of perjury; and
                   (5) that programs, services, and activities provided to the general public
                       under resulting contract conform with the Americans with Disabilities
                       Act of 1990, and the regulations issued there under by the federal
                       government.

               If any Vendor fails to comply with (1) through (5) of this paragraph, the State of
               Delaware reserves the right to disregard the proposal, terminate the contract, or
               consider the Vendor in default.

               The selected Vendor shall keep itself fully informed of and shall observe and
               comply with all applicable existing federal and State laws, and county and local
               ordinances, regulations and codes, and those laws, ordinances, regulations, and
               codes adopted during its performance of the work.

       5.4.21. Scope of Agreement
               If the scope of an provision of this contract is too broad in any respect
               whatsoever to permit enforcement to its full extent, then such provision shall be
               enforced to the maximum extent permitted by law, and the parties hereto consent



RFP Administrative Information                                                                149
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               and agree that such scope may be judicially modified accordingly and that the
               whole of such provisions of the contract shall not thereby fail, but the scope of
               such provisions shall be curtailed only to the extent necessary to conform to the
               law.

       5.4.22. Other General Conditions

               5.4.22.1. Current Version – “Packaged” application and system software shall
                         be the most current version generally available as of the date of the
                         physical installation of the software.

               5.4.22.2. Current Manufacture – Equipment specified and/or furnished under
                         this specification shall be standard products of manufacturers regularly
                         engaged in the production of such equipment and shall be the
                         manufacturer’s latest design. All material and equipment offered shall
                         be new and unused.

               5.4.22.3. Volumes and Quantities – Activity volume estimates and other
                         quantities have been reviewed for accuracy; however, they may be
                         subject to change prior or subsequent to award of the contract.

               5.4.22.4. Prior Use – The State of Delaware reserves the right to use equipment
                         and material furnished under this proposal prior to final acceptance.
                         Such use shall not constitute acceptance of the work or any part thereof
                         by the State of Delaware.

               5.4.22.5. Regulations – All equipment, software and services must meet all
                         applicable local, State and federal regulations in effect on the date of
                         the contract.

               5.4.22.6. Changes – No alterations in any terms, conditions, delivery, price,
                         quality, or specifications of items ordered will be effective without the
                         written consent of the State of Delaware.

               5.4.22.7. Additional Terms and Conditions – The State of Delaware reserves
                         the right to add terms and conditions during the contract negotiations.




150                                                             RFP Administrative Information
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


   5.5. RFP Miscellaneous Information

       5.5.1. Post-Award Debriefing
             The State of Delaware will upon request offer to debrief Vendors who were
             disqualified or did not win the contract. This request for debriefing will be
             accommodated only after the final contract has been awarded. Vendors may either
             make appointments for a conference at the State of Delaware or be debriefed via a
             telephone conference.

       5.5.2. No Press Releases or Public Disclosure
             Vendors may not release any information about this RFP. The State of Delaware
             reserves the right to pre-approve any news or advertising releases concerning this
             RFP, the resulting contract, the work performed, or any reference to the State of
             Delaware with regard to any project or contract performance. Any such news or
             advertising releases pertaining to this RFP or resulting contract shall require the
             prior express written permission of the State of Delaware.

       5.5.3. RFP Reference Library
             The State of Delaware has made every attempt to provide the necessary information
             within this RFP. The State of Delaware will make the reference library available
             only to the winning Vendor.

       5.5.4. Definitions of Requirements
             To prevent any confusion about identifying requirements in this RFP, the following
             definition is offered: The words shall, will and/or must are used to designate a
             mandatory requirement. Vendors must respond to all mandatory requirements
             presented in the RFP. Failure to respond to a mandatory requirement may cause the
             disqualification of its proposal.

       5.5.5. Production Environment Requirements
             The State of Delaware requires that all hardware, system software products, and
             application software products included in proposals be currently in use in a
             production environment by a least three other customers, have been in use for at
             least six months, and have been generally available from the manufacturers for a
             period of six months. Unreleased or beta test hardware, system software, or
             application software will not be acceptable.




RFP Administrative Information                                                                151
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal




6. Vendor Technical Response

   6.1. Pre-Proposal Requirements

       6.1.1. Registration
         Please confirm your organization’s interest in this project by notifying Ms. Valda
         Perry, by e-mail at valda.perry@state.de.us , or by calling (302) 739-1740 extension
         100. Registering with the State will ensure that your organization is included in
         announcements or addenda and other notices affecting this project.

       6.1.2. Vendor Conference
         The State will hold a Vendors’ Conference at 9 AM EST, Thursday, March 2, 2006,
         The Carvel State Office Building, 820 North French Street, Wilmington, DE
         19801. (Directions to the Carvel State Office Building can be found on Appendix 13.)
         The purpose of the conference is to allow each Vendor to review the RFP with the State
         Project Team and to answer questions. Attendance at the Vendor’s Conference is
         mandatory. This conference will provide a forum for vendors:

            1. To request clarification of the RFP.
            2. To seek a better understanding of the State’s intentions.
            3. To offer suggestions or changes to the RFP that could improve competition or
               lower cost to the State without compromising services.
            4. To achieve any or all of the proceeding.

         Details of the Vendor’s Conference are as follows:
           • The Vendor’s Conference will be held at The Carvel State Office Building,
               820 North French Street, Wilmington, DE 19801, at 9 AM EST on
               Thursday, March 2, 2006. (See Appendix 13 for directions.)
           • Written questions are due on or before close of business, Thursday, February
               23, 2006 in order for the State to prepare answers to the questions. They must be
               addressed to the Designated Contact (See Section 5.1.4 of this RFP). Questions
               can be submitted on paper but must be submitted electronically (either by email
               or on disk).
           • Written questions should be tied directly to the RFP, by referencing the proposal
               section number to which each question relates.
           • Follow-up questions and any additional questions will be allowed during the
               conference in an open forum, and will not require identification of the active
               bidder submitting the question. Oral responses to questions asked during the
               conference will be informational only and will not be considered binding.
               Written (official) answers will be provided for all questions asked during the
               Vendor’s Conference. These questions and answers will be distributed to all
               registered Vendors within three (3) business days following the Vendor’s
               Conference.
           • All final RFP questions must be received by on or before close of business,
               Friday, March 24, 2006.
           • The State will respond to all received final RFP questions by Friday, March 31,
               2006.



152                                                                  Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



         Vendors are requested to limit attendance to two people from each company.
         Attendance is a requirement of responding to the RFP. There will be a transcript of the
         conference. Please confirm your attendance at the Vendor’s Conference by notifying
         Ms. Valda Perry, by e-mail at valda.perry@state.de.us , or by calling (302) 739-1740
         extension 100.

       6.1.3. Intent to Bid
         Vendors shall complete and return the “Notice of Intent to Bid” form by 2 PM EST,
         Thursday, March 16, 2006. This form should be signed by an authorized
         representative of the organization, dated, and returned to the address listed below:

             State of Delaware Department of Finance
             Financials Reengineering Project
             800 Silver Lake Boulevard, Suite 100
             Dover, DE 19904

         All potential vendors who attend the Vendor’s Conference and return the “Notice of
         Intent to Bid” form will constitute the pool of “Active Bidders”. The procurement
         distribution list of Active Bidders will be used for the distribution of written responses
         to questions and any RFP amendments.

         The “Notice of Intent to Bid” form will be made available to each potential vendor
         represented at the Vendor’s Conference. Failure to return this form by 2 PM EST,
         Thursday, March 16, 2006, shall be interpreted by the State as a presumptive rejection
         of the RFP, and that the potential Vendor’s organization does not desire to bid.
         Furthermore, failure to return the “Notice of Intent to Bid” form shall mean that the
         Vendor will be considered no longer eligible to bid on this RFP.




Vendor Technical Response                                                                      153
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



   6.2. Proposal Contents Requirements
        The failure of a Vendor to meet any of the following RFP requirements will result in
        disqualification of the proposal.

         The submitted proposal must follow the rules and format established within this RFP.
         Adherence to these rules will ensure a fair and objective analysis of all proposals.
         Additional pages may be attached and cross-referenced as necessary. Unnecessarily
         lengthy documents are discouraged. Failure to comply with or complete any portion of
         this request may result in rejection of a proposal.

         Vendors are cautioned not to refer to a brochure as a response to a requirement.
         Vendors are expected to write full answers for each requirement and not refer to
         previous responses, for example, using “see above” or “See technical whitepaper, page
         4”.

         Within each section of their proposal, Vendors should address the items in the order in
         which they appear in this RFP. All forms provided in the RFP must be thoroughly
         completed and included in the Vendor’s response to the RFP. All discussion of
         proposed costs, rates, or expenses must only occur in the Cost Proposal.


       6.2.1. Technical Proposal Vendor Response Section
         This section provides Vendors with the opportunity to answer text-based questions
         about the implementation and project management services, including Vendor
         information. The tables for this section are in MS Word format in Appendix 14.

         Where tables are provided, please respond in the space provided in the table. If you
         elect to create your own document to respond please use the State’s format and layout
         to facilitate the Proposal Evaluation Team’s review of the response. In any case,
         provide the response in either MS Word or PDF format.

         The Technical Proposal must be bound, and organized behind tabs corresponding to the
         sections of the Technical Proposal Vendor Response Section, as follows:

                                      TECHNICAL PROPOSAL
                         Tab #     Response Section
                           1       Proposal Overview
                           2       Vendor and Partner Overview & References
                           3       Vendor Certifications & Exceptions
                           4       Management Requirements
                           5       Technical Requirements
                           6       Required Vendor Attachments
                           7       Supplemental and Collateral Material

         Attachments requested within each section should be included behind Tab 6 (“Required
         Vendor Attachments”)




154                                                                  Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



           6.2.1.1. Tab 1 – Proposal Overview
                       Transmittal Letter
                       A transmittal letter must accompany all proposals. A corporate officer or
                       person who is authorized to represent the company must sign this letter.
                       A letter of transmittal must meet the following requirements:

                            1. Identify the submitting organization.
                            2. Explicitly indicate acceptance of the requirements in this RFP.
                            3. Bear the signature of the person authorized to obligate the
                               organization contractually.
                            4. Acknowledge receipt of any and all amendments to this RFP.

                       Table of Contents
                       The Table of Contents should reference all materials required by this
                       RFP and any additional information or material the Vendor wishes to
                       supply.

                       Executive Summary
                       Vendors shall provide an executive summary to familiarize the State
                       executives and evaluators with the key elements and unique features of
                       their proposal and by briefly describing how they will implement this
                       project. The executive summary should at a minimum provide the
                       following information.
                           • A summary of the proposal to provide the Proposal Evaluation
                                Team with an overview of the business and project features of
                                the proposal.
                           • Description of the project team and each team member’s roles
                                and responsibilities and lines of authority and accountability.
                           • Information on the background and qualifications of each
                                partner. (Resumes should be placed behind Tab 6 of the Vendor
                                Required Attachments.)
                           • Discuss the risks and concerns arising from the State’s RFP.
                           • Explain what is needed from the State to begin the project.




Vendor Technical Response                                                                   155
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



           6.2.1.2. Tab 2 – Vendor and Partner Overview and
                 References
                       Vendor Services Overview
                       Please identify Vendors for each product or service proposed to be
                       provided. If multiple Vendors will be providing any service, identify
                       each Vendor and the specific system and/or service component they will
                       provide.

                                             Vendor Services Overview
                                                                     Provided By
                        Service Component                           (Vendor Name)
                        Vendor
                        Prime Vendor
                        Project Management Services
                        Training (identify all Vendors)
                        Systems Integration
                        Interfaces Development
                        Data Conversion
                        Others (multiple, as needed)
                       Insert additional lines as needed.

                       Vendor and Partner Overview
                       This section must be completed for each vendor included in the proposal.
                       The Prime Vendor is to be the first organization.

                                             Organization Information
                             Organization Name:
                             Prime Vendor? (Y/N):
                             Organization’s Role & Responsibilities:


                                            Primary Contact Information
                             Name:
                             Title:
                             Mailing Address:
                             City, State, Zip:
                             Phone Number:
                             Fax Number:
                             E-mail Address:




156                                                                 Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                                           Alternate Contact Information
                             Name:
                             Title:
                             Mailing Address:
                             City, State, Zip:
                             Phone Number:
                             Fax Number:
                             E-mail Address:

                                     Proposal Clarification Contact Information
                             Name:
                             Title:
                             Mailing Address:
                             City, State, Zip:
                             Phone Number:
                             Fax Number:
                             E-mail Address:

                                      Contract Negotiation Contact Information
                             Name:
                             Title:
                             Mailing Address:
                             City, State, Zip:
                             Phone Number:
                             Fax Number:
                             E-mail Address:

                                       Signing Authority Contact Information
                             Name:
                             Title:
                             Mailing Address:
                             City, State, Zip:
                             Phone Number:
                             Fax Number:
                             E-mail Address:

                                                 Headquarters Address
                             Address Line 1:
                             Address Line 2:
                             Address Line 3:
                             City, State, Zip:




Vendor Technical Response                                                         157
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                                                 Service Location Address
                             Address Line 1:
                             Address Line 2:
                             Address Line 3:
                             City, State, Zip:

                                       Vendor’s Relationship to Prime Vendor




                                                   General Information
                             # Years in
                             Business
                             # Years
                             # Employees
                                • Entire Org
                                • Service Loc

                                                Financial Information
                               Fiscal Year     Annual Gross Earnings          Net Earnings
                                   2005
                                   2004
                                   2003
                             Fiscal Year End (month):
                             Privately Held (Yes/No):
                                • If Yes, Financial
                                  Information Available?
                             Dunn & Bradstreet #:

                                                     Bank Reference
                                                        Reference 1            Reference 2
                             Bank Name
                             Address
                             Phone
                             Contact
                             Date of Service

                       Special Organizational Conditions
                       Disclose any of the conditions that have occurred within the past five (5)
                       years and discuss their organizational impacts; judgments, pending
                       litigation or other real potential financial reversals, contract terminations,
                       known or planned sale, merger or acquisition of this Vendor’s company
                       or products, any mergers or acquisitions and any potential conflicts of
                       interest with the State. If none of these conditions are know to exist,
                       state “None”:




158                                                                     Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                                                      Litigations




                                               Contract Terminations




                                                       Mergers




                                                 Conflicts of Interest




                       Corporate Qualifications and Experience
                       The Vendor must thoroughly describe, in the form of a narrative, its
                       experience and success as well as the experience and success of major-
                       sub-contractors in implementing the proposed software in a organization
                       similar to the State’s.

                                             Qualifications & Experience




                       Vision and Strategy
                       Vendors should describe their organization’s mission and vision and
                       show how these items will provide the business direction and resources
                       to enable the vendor to facilitate the successful implementation of a
                       statewide ERP implementation in Delaware. Vendors must describe
                       their strategy to providing key competencies and focused, service-
                       oriented support required for a successful implementation.

                                              Mission Vision & Strategy




Vendor Technical Response                                                                 159
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                       Other Value Added Service or Options
                       Vendors are encouraged to thoroughly describe any other consulting or
                       value-added services they feel that may contribute to the success of the
                       project. The response to this specification may include other capabilities
                       not included elsewhere in the Vendor’s proposal.

                                                 Value Added Service




                       Financial Stability
                       Vendors must submit copies of their most recent year’s independently
                       audited financial statements, as well as those for the preceding year. The
                       submission must include the audit opinion, the balance sheet, statements
                       of income, retained earnings, and cash flows, and the notes to the
                       financial statements. If independently audited financial statements do
                       not exist for the Vendor, the Vendor must document the reason and,
                       instead, submit sufficient information to enable the Proposal Evaluation
                       Team to determine the financial stability of the Vendor.

                                                  Financial Stability




                       Vendor Install Base & References
                       Vendors and subcontractors shall provide a list of three installations
                       where the Vendor implemented an ERP system and the work was similar
                       in size, application, and scope to the projects described herein. The State
                       will contact these companies and ask them about the Vendor’s technical
                       capabilities, project management skills, and ongoing support after
                       installation. One of the three reference accounts may be chosen for a site
                       visit by the Proposal Evaluation Team.

                       At lease ONE (1) of the references must be a state government
                       implementation or similar sized public body implementation where the
                       Vendor was the Prime Vendor of implementing a PeopleSoft Human
                       Resource, Payroll, and Financials solution and is in current operation.
                       The Vendor is encouraged to include additional references that it
                       believes the Proposal Evaluation Team would find helpful in thoroughly
                       evaluating its proposals.

                       To warrant consideration for this contract, Vendors and subcontractor(s)
                       must successfully pass reference checks. Subcontractors with more than
                       25 percent participation in the project by dollar amount shall provide
                       references. Subcontractors with less than 25 percent participation,
                       Vendors shall list all subcontractors who participate in the project. The



160                                                                   Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

                       Vendor must also include three client references for each sub-contractor
                       listed in the proposal response.

                                           Install Base & References
                                                  Reference 1     Reference 2        Reference 3
                Organization Name
                Address
                Phone
                Contact
                Project Summary
                System Description
                Hardware Platform
                Software Platform
                # of Users
                Implementation Start Date
                Implementation End Date
                Approximate Cost

           6.2.1.3. Tab 3 – Vendor Certifications and Exceptions
                       RFP Acceptance
                       Provide assurance that the entire contents of this RFP, including all
                       attachments, have been read and accepted by your organization. Please
                       discuss any issues or limitations:

                                                  RFP Acceptance
                             Read and accept all aspects of this RFP?
                             (Yes/No):
                             Issues or Limitations:


                       Vendor Assumptions
                       State any assumptions or dependencies presumed in this proposal.
                       Identify each assumption with a unique numerical identifier. If there are
                       no additional assumptions, the Vendor must indicate NONE in the
                       attached table.

                            ID #                   Assumption or Dependency



                       Insert additional lines as needed.




Vendor Technical Response                                                                   161
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                       Exceptions to the RFP
                       Note any exceptions taken to any aspect of the RFP. Exceptions to
                       detailed technical or management requirements should be discussed in
                       the Vendor response to the appropriate section and referenced here in the
                       RFP Exceptions List.

                       All exceptions must be documented here regardless of whether they
                       appear elsewhere in the proposal. Where specific exceptions are noted,
                       please reference the RFP section and/or item number and identify the
                       proposal page number. If there are no exceptions, the Vendor must
                       indicate NONE in the attached table.

                                                 RFP Exceptions List
                         Section
                         /Item #      Page #     Description of the Exception



                       Insert additional lines as needed.

                       Response to Terms and Conditions
                       The contract between the State and a Vendor will follow the format
                       specified by the State and contain the terms and conditions set forth in
                       the RFP Contract Terms and Conditions (Section 5.4). However, the
                       State reserves the right to negotiate with a successful Vendor provisions
                       in addition to those contained in this RFP. The contents of this RFP, as
                       revised and/or supplemented, and the successful Vendor’s proposal will
                       be incorporated into and become part of the contract.

                       Should a Vendor object to any of the State’s terms and conditions, as
                       contained in the RFP Contract Terms and Conditions (Section 5.4), that
                       Vendor must propose specific alternative language. The State may or
                       may not accept the alternate language. General references to the
                       Vendor’s terms and conditions or attempts at complete substitutions are
                       not acceptable to the State and will result in disqualification of the
                       Vendor’s proposal.

                       Vendors must provide a brief discussion of the purpose and impact, if
                       any, of each proposed changed followed by the specific proposed
                       alternate wording. If there are no exceptions, the Vendor must indicate
                       NONE in the attached table.




162                                                                  Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                                       Terms and Conditions Exceptions List
                            Page #     Description of the Exception and Alternative
                                       Language



                       Insert additional lines as needed.

                       Vendor’s Additional Terms and Conditions
                       Vendors must submit with the proposal a complete set of any additional
                       terms and conditions that they expect to have included in a contract
                       negotiated with the State. The State may or may not accept the
                       additional terms and conditions. Vendors must provide a brief
                       discussion of the purpose and impact, of each proposed changed
                       followed by the specific proposed alternate wording. The State may or
                       may not accept the additional terms and conditions. If there are no
                       additional terms, the Vendor must indicate NONE in the attached table.

                            Ref #           Vendor Additional Terms and Conditions



                       Insert additional lines as needed.

                       Milestone Based Payment Schedule
                       Provide your acceptance of a milestone based payment schedule and
                       discuss any conditions or limitations:

                                       Milestone Based Payments Acceptance
                              Accept Milestone Based Payments? (Yes/No):
                              Conditions or Limitations:


                       Warranty Period
                       Provide your acceptance of a one (1) year warranty period from the date
                       that the implementation is fully functional and describe any conditions or
                       limitations:

                                                  Warranty Period
                              Accept One (1) Year Warranty Period?
                              (Yes/No):
                              Conditions or Limitations:




Vendor Technical Response                                                                   163
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                       Stress Testing
                       The State requires that an operational stress test be performed as part of
                       the system acceptance process prior to implementation. Please provide
                       confirmation that you will perform the test, describe the test process and
                       any conditions or limitations of the test:

                                             Operational Stress Testing
                             Perform Operational Stress Testing? (Yes/No):
                             Testing Conditions or Limitations:


                       Background Checks & Investigations
                       Individuals in your organization may be subject to finger-printing,
                       background checks and investigations in order to work under contract
                       with the State. Please provide your acceptance of this requirement and
                       describe any issues or concerns with this requirement:

                                           Individual Background Checks
                             Finger-printing, Background Checks and
                             Investigations Agreement? (Yes/No):
                             Issues or Concerns:




164                                                                   Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



           6.2.1.4. Tab 4 – Management Requirements
                       For each heading identified from Section 4 insert your response below.
                       Use as much space as required to completely respond to the State’s
                       request and include a response for each heading listed. Please refer to
                       the “Vendor Response” comments under each heading in Section 4 to
                       make certain your response is complete.

                       If you elect create your own document to respond to these sections please
                       make certain you retain the order and numbering shown below to
                       facilitate the Proposal Evaluation Team’s review of your response.

                       Response to 4.1.1 Project Approach and Plan
                       Remember to include the high level project plan and schedule requested
                       in this section behind the “Required Attachments” tab.

                                          4.1.1 Project Approach and Plan




                       Response to 4.1.2 Project Staffing and
                       Qualifications
                       This section requests that resumes for all key personnel be included
                       along with three personal references. Please supply these attachments
                       behind the “Required Attachments” tab.

                                      4.1.2 Project Staffing and Qualifications




                       Response to 4.1.3 Business Process Reengineering
                       and Workflow Design
                                4.1.3 Business Process Reengineering and Workflow
                                                       Design




Vendor Technical Response                                                                   165
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                       Response to 4.1.4 Issues and Risk Management
                                         4.1.4 Issues and Risk Management




                       Response to 4.1.5 Change Management
                                             4.1.5 Change Management




                       Response to 4.1.6 Communications Plan
                                             4.1.6 Communication Plan




                       Response to 4.1.7 Training
                                                    4.1.7 Training




                       Response to 4.1.8 Knowledge Transfer
                                              4.1.8 Knowledge Transfer




                       Response to 4.1.9 Quality Assurance
                                               4.1.9 Quality Assurance




                       Response to 4.1.10 System, Database and Security
                       Administration
                                4.1.10 System, Database and Security Administration




166                                                                  Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                       Response to 4.1.11 Help Desk
                                                    4.1.11 Help Desk




                       Response to 4.1.12 Collaboration and Productivity
                       Tools
                                     4.1.12 Collaboration and Productivity Tools




                       Management Exceptions
                       The Management Requirements included in this RFP identify
                       functionality desired by the State. The Vendor must identify the extent
                       to which requirements would or would not be met by the Vendor’s
                       proposal.

                       All requirements that will be met with a proposed change are to be
                       included in the table below. Include the proposed text, using strike-outs
                       so that the change in text is readily visible.

                                      Management Exceptions to Requirements
                              Topic #   Proposed Text Revision



                            Insert additional lines as needed.




Vendor Technical Response                                                                   167
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



           6.2.1.5. Tab 5 – Technical Requirements
                       Response to 4.2.1 Technical Environment (Hosting
                       Issues)
                                   4.2.1 Technical Environmental (Hosting Issues




                       Response to 4.2.2 PeopleSoft Financials
                       Configuration
                                      4.2.2 PeopleSoft Financials Configuration




                       Response to 4.2.3 Design Specification
                       (Modifications/Customizations)
                             4.2.3 Design Specification (Modifications/Customizations)




                       Response to 4.2.4 PHRST Integration
                                              4.2.4 PHRST Integration




                       Response to 4.2.5 Data Conversion
                                                4.2.5 Data Conversion




                       Response to 4.2.6 Interface Development
                                             4.2.6 Interface Development




168                                                                 Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                       Response to 4.2.7 Reporting
                                                   4.2.7 Reporting




                       Response to 4.2.8 Security
                                                    4.2.8 Security




                       Response to 4.2.9 System Build, Unit and
                       Integration Testing
                                  4.2.9 System Build, Unit and Integration Testing




                       Response to 4.2.10 Change Control (Scope &
                       Schedule)
                                     4.2.10 Change Control (Scope & Schedule)




                       Response to 4.2.11 Testing
                       Remember to include the Preliminary Test Plan behind the “Required
                       Attachments” tab.

                                                    4.2.11 Testing




                       Response to 4.2.12 System Rollout
                                                4.2.12 System Rollout




Vendor Technical Response                                                               169
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                       Response to 4.2.13 Post Implementation Support
                                        4.2.13 Post Implementation Support




                       Technical Exceptions
                       The Technical Requirements included in this RFP identify functionality
                       desired by the State. The Vendor must identify the extent to which the
                       identified requirements would or would not be met by the Vendor’s
                       proposal.

                       All requirements where the Vendor proposes a change are to be included
                       in the table below. Include the proposed text, using strike-outs so that
                       the change in text is readily visible.

                                        Technical Exceptions to Requirements
                             Topic #      Proposed Text Revision



                           Insert additional lines as needed.




170                                                                 Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



           6.2.1.6. Tab 6 – Vendor Required Attachments
                       Proposal Contents Checklist
                       The following checklist has been included to assist Vendor compliance
                       with the required RFP responses. Please indicate whether each item
                       specified is included in your proposal, and cross-reference the page
                       where the item is located.

                                      Vendor Required Attachments Checklist
                                                                                     Proposal
                                                                       Included        Page
                         Item Description                             (Yes/No)?      Reference
                         Delaware Business License
                         Tax Clearance Certificate
                         Certificate of Insurance
                         Provide Performance Bond (Letter of
                         Intent)
                         Latest Audited Financial Statement
                         Standard Contract and/or Licensing
                         Agreement
                         High Level Project Plan & Schedule
                         Outline Test Plan
                         Project Manager & Technical Lead
                         References & Resumes of Proposed Staff

                       If any of the above requested items are not included, please explain
                       below:

                                            Attachments Exceptions List
                         RFP Item #      Explanation



                       Insert additional lines as needed.

                       Delaware Business License
                       Prior to award, the Vendor must provide a copy of their valid Delaware
                       Business License. A Letter of Intent to produce a valid Delaware
                       Business License at the time of contract negotiations is acceptable. (See
                       section 5.4.1.6 of this RFP.)




Vendor Technical Response                                                                     171
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



                       Tax Clearance Certificate
                       A Tax Clearance Certificate must be provided with this proposal. This is
                       obtainable through the Corporate Income Taxes Section, Delaware
                       Division of Revenue, 820 North French Street, Wilmington, DE 19801.
                       This clearance will assure that there are no outstanding tax liabilities for
                       the corporation, business, association or individual with which the State
                       intends to do business.

                       Certificate of Insurance
                       The Vendor must provide a Certificate of Insurance as evidence of the
                       required coverage specified in this RFP.

                       Performance Bond (Letter of Intent)
                       The Vendor must provide a performance bond with the proposal. A
                       Letter of Intent to produce a performance bond at the time of contract
                       negotiations is acceptable. (See section 5.4.14 of this RFP.)

                       Latest Audited Financial Statement
                       Provide copies of your company’s latest audited financial statement.

                       Vendor Standard Contract and/or Licensing
                       Agreement
                       Provide copies of your standard contract for professional or consulting
                       services contracts or licensing agreements.

                       High Level Project Plan and Schedule
                       The Vendor must include a copy of the preliminary high level project
                       plan and schedule based their responses to this RFP.

                       Outline Test Plan
                       The Vendor must include a copy of the outline test plan based its
                       responses to this RFP.

                       Project Manager & Technical Lead References &
                       Resumes of Proposed Staff
                       The Vendor must include copies of resumes for all key personnel
                       proposed for this RFP, along with three references.


           6.2.1.7. Tab 7 – Supplemental and Collateral Material
                       The Vendor should include any supplemental materials in this section.




172                                                                   Vendor Technical Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



   6.3. Post-Proposal Requirements

       6.3.1. Vendor Oral Presentations
         Vendors selected as finalists, may be required to make an oral presentation of their
         Implementation Proposal to the State’s Proposal Evaluation Team. The State’s
         Proposal Evaluation Team will establish a presentation schedule. It is anticipated that
         the presentations will be less than four (4) hours and the State’s Proposal Evaluation
         Team will establish an agenda to identify the topics and materials to be addressed
         during the oral presentation. The presentation schedule will provide each Vendor
         invited to present an equal opportunity to adequately prepare and distribute requested
         materials prior to the scheduled presentation. The Proposal Evaluation Team may, at
         its option, ask questions of the Vendor to clarify any function, service, or technical
         capability included in the Vendor’s proposal. Presentation assignments for selected
         Vendors will be randomly drawn and Vendors notified upon the Vendor being selected
         as a finalist. Assignments are final.

         Vendor’s must include in their proposals a list of all special equipment,
         communications facilities or other resources required for the oral presentation of their
         proposal.




Vendor Technical Response                                                                     173
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



7. Vendor Cost Response

   7.1. Introduction
         This section describes the requirements to be addressed by vendors in preparing the
         Cost Proposal. This Cost Proposal must be submitted according to the instructions in
         Section 5 and must comply with the requirements presented in this section. The State
         reserves the right to review all aspects of the Cost Proposal for reasonableness and to
         request clarification of any proposal where the cost component shows significant and
         unsupported deviation from industry standards or in areas where more detailed pricing
         is required.

         All costs associated with the requirements specified herein, must be listed on the cost
         tables. The State will only be responsible for costs clearly set forth in the Vendor’s
         response to this RFP.

         In order for a Vendor to receive full consideration, the cost tables must be fully
         completed. These cost tables are provided as Excel spreadsheets in Appendix 15.
         Vendors may attach their own cost sheets so long as all requested information is also
         provided in the format and order of this section. As needed, Vendors may add line
         items to the cost tables, but no additional tables should be created. Submission of these
         tables should be in either Excel or PDF formats.

         Where tables are provided, please respond in the space provided in the table. If you
         elect to create your own document to respond please use the State’s format and layout
         to facilitate the Proposal Evaluation Team’s review of the response.

         Please note that all cost tables include bottom lines for totaling the line items in the
         table.

         The Cost Proposal must be bound and submitted separately from the Technical
         Proposal. The Cost Proposal sections shall include: 1) Core Not to Exceed Cost; 2)
         Security Costs; 3) Costs of Alternatives; 4) Future Vendor Rates; 5) Staff Loading; 6)
         Payment Schedule by Deliverable; 7) Other (As Needed); and 8) Attachments and
         Assumptions.

         The Cost Proposal must be organized behind tabs corresponding to the sections listed
         above as follows:

               Tab #      Response Section
                  1       Core Not to Exceed Cost
                  2       Security Costs
                  3       Costs of Alternatives
                  4       Future Vendor Rates
                  5       Staff Loading
                  6       Payment Schedule by Deliverable
                  7       Other (As Needed)
                  8       Attachments and Assumptions

         Attachments and assumptions requested within each section should be included behind
         Tab 8 (please use table from Section 7.1.8).


174                                                                           Vendor Cost Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



         The Cost Proposal shall present the total firm fixed price to perform all of the
         requirements of the Request for Proposal. The State recognizes that each Vendor may
         have a unique pricing methodology. The Vendor has the flexibility to apply the pricing
         model that meets the requirements of this RFP and minimizes the cost to the State
         while meeting all requirements of this RFP. All labor rates must be “fully loaded” to
         represent services provided at the project site DOVER, DELAWARE (i.e., travel and
         living expenses must be included in the rates). All cost estimates shall be inclusive of
         State Gross Receipts tax and all other taxes. The State will not pay any taxes
         separately.

         The Vendor shall agree that all terms, warranties, and prices, as a whole, are
         comparable to or better than the equivalent terms, warranties, and prices, as a whole,
         offered by the Vendor to any present customer meeting substantially the same
         requirements or qualifications as the State. If the Vendor shall, during the term of this
         contract, enter into arrangements with any other customer providing greater benefits or
         more favorable terms, as a whole, the Vendor shall provide the same to the State.

       7.1.1. Cost Proposal – Core Not to Exceed Cost
               The Vendor’s total cost for the entire project must be presented as the Core Not
               to Exceed Cost.

               This section provides the format to provide the breakdown and summary of costs
               for the implementation of the PeopleSoft Financials application as requested by
               the State, and covers the following project activities:

                       1. Project Management.

                       2. Financials Configuration

                       3. Testing

                       4. PHRST Integration

                       5. Data Conversion

                       6. Interface Development

                       7. Reporting

                       8. System Rollout

                       9. Post Implementation Support

                       10. Other (all other management and technical topics).

               Cost Proposal
               Please provide the State with a firm not to exceed cost of implementation for the
               proposed services using this cost table. The Vendor’s estimates should take into




Vendor Cost Response                                                                          175
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal

               consideration a scope of work as detailed in this RFP as well as the Vendor’s
               recommended implementation and integration methodology.

               Instructions
               Each Vendor must complete the cost tables.
                    1. All cost figures shall be provided in a fixed fee amount.
                    2. Since this is a fixed price solicitation, all cost figures shall be inclusive
                       of travel and expenses (no travel and living expenses shall be directly
                       billable to the State).
                    3. Costs shall include all applicable taxes. Vendors may not reformat this
                       form.

                       Project Activity                              Cost
                       Project Management
                       Financials Configuration
                       Testing
                       PHRST Integration
                       Data Conversion
                       Interface Development
                       Reporting
                       System Roll Out
                       Post Implementation Support
                       Other (All Other Topics)
                                        TOTAL COST

               Per the instructions, please state any significant assumptions associated with the
               estimation of costs for this proposal in the table in Section 7.1.8 (Tab 8).

               The Cost Proposal must not include exceptions or additional terms and
               conditions.




176                                                                         Vendor Cost Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       7.1.2. Security Costs
               As indicated in Section 4’s Security topic, the State’s preference is to provide
               security at the most granular level possible to each department. The State
               understands that row-level department security cannot be provided without
               customization or significant modification and that different alternatives to
               addressing the underlying requirements for department level security need to be
               explored. It is also understood that implementation of department-level security
               is a relatively common modification that has been documented by PeopleSoft.

               The Vendor must provide two firm not to exceed costs for security. The first cost
               covers the Vendor’s approaches to reviewing and finalizing roles and permission
               lists, reviewing and modifying the State’s security procedures and policies
               supporting State-wide rollout of Financials and developing a modification to
               Financials to support department-level security. The Vendor’s cost proposal
               must also present a separate cost for implementing the security modification to
               Financials that provides security using the DeptID chart field. This
               implementation of the modification will be an optional item to be considered by
               the State in conjunction with the analysis of the departmental-security issue.
               Assumptions underlying the calculation of these two costs must be stated in
               Section 7.1.8 (Tab 8).

                          Project Activity                Cost
                   Security Approaches
                   Implementation of
                   Modification
                   TOTAL COST




Vendor Cost Response                                                                       177
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       7.1.3. Costs of Alternatives
               In Section 4 “Management Requirements” several management and technical
               topics indicate that Vendors may propose alternatives to the State’s preferred
               activity. These sections are Training, Collaboration and Productivity Tools,
               Technical Environment, and System Rollout. The State will evaluate the
               Vendor’s submission based on the State’s preferred approach as defined by the
               requirements of this RFP, but reserves the right to implement an alternative
               approach at the State’s option. For each alternative that costs are presented for,
               please state all assumptions in the table in Section 7.1.8 (Tab 8).

               At this time, the delivery of training is not included in this RFP. However, if the
               Vendor feels that it can provide a solution for the training delivery needs for the
               implementation of PeopleSoft Financials to all State organizations and end users,
               this information may be included as a separate item in both the technical and cost
               responses to this RFP. This optional training proposal must be based on the
               information provided in the preliminary training plan included as Appendix 10.

                   Alternative                      Cost
                   Project Activity
                   Training Delivery
                   TOTAL COST

               The Cost Proposal must present all costs associated with initial and on-going
               costs for use of the proposed tools and describe how the State will be given the
               perpetual right to use these tools and the tool content developed used or
               developed during the project.

                   Alternative                      Initial Cost             On-Going Costs
                   Project Activity
                   Collaboration and Productivity
                   Tools
                                         Tool #1
                                         Tool #2
                                         Tool #3

                   TOTAL COST

               The Vendor may propose to host the development environment for the State. If
               this option is proposed, the Vendor must describe the relative roles and
               responsibilities of the Vendor and the State, based on previous hosting
               experience. Describe how the State’s requirement for knowledge transfer will be
               addressed, how bundles and patches will be applied during the implementation
               project, the provisions the Vendor will make for disaster recovery, and how the
               system will be transitioned from development to production for system-wide
               rollout and how the use of the hosting option will impact the overall project
               schedule and cost.




178                                                                         Vendor Cost Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal


                   Alternative                    Cost
                   Project Activity
                   Vendor Hosting of
                   Development Environment
                   Alternative Hosting of
                   Development Environment
                   TOTAL COST

               For each alternative that costs are presented for, please state all assumptions in
               the table in Section 7.1.8 (Tab 8).

               If the Vendor recommends a strategy for something other than “big bang,”
               rollout, the information regarding this alternative and its costs may be included in
               the response as a separate item in both the technical and cost proposals.

                   Alternative                    Cost
                   Project Activity
                   Alternative to “big bang”
                   System Rollout

                   TOTAL COST




Vendor Cost Response                                                                           179
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       7.1.4. Future Vendor Rates
               The State may request additional services from the selected Vendor and require
               rates in the event that additional service is required. Vendor must include a
               burdened hourly rate for change orders as a result of modifications to the original
               scope of work. The Vendor’s Cost Proposal must identify labor categories and
               rates that will be used to cost any customizations or major modifications
               identified during the project, and guarantee those rates for the life of the project,
               and identify labor categories, rates, hours and total cost for the small, medium,
               large and significant changes. The following format must be used to provide this
               information.

                      Change/Labor               Rates              Hours             Total Cost
                         Category
                   Small
                                Manager
                             Programmer

                   Medium
                                    Manager
                                 Programmer

                   Large
                                    Manager
                                 Programmer

                   Significant
                                    Manager
                                 Programmer



       7.1.5. Staff Loading
               Using the format provided in the following table, list titles of proposed positions
               on the project team to be filled by Vendor staff. Names must be provided for
               individuals designated for key roles, but titles are sufficient for others. Under the
               “hours per month” indicate the hours these positions will be working on the
               project during each month.

                   Position          Hours Per Month
                                     July 2006 August 2006     Sept. 2006     Oct. 2006    continued
                   Manager
                   Analyst
                   Programmer
                   Trainer
                   continued




180                                                                          Vendor Cost Response
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       7.1.6. Payment Schedule by Deliverable
               It is the State’s intent to negotiate a milestone based fixed fee payment structure
               based on acceptance of deliverables. The State may consider other payment
               alternatives from the Vendor. Vendors are required to submit a proposed
               payment schedule that is tied to specific dates and deliverables and which
               identifies the estimated amounts of invoices and the approximate dates on which
               those invoices might be generated. Preferably, the payment schedule will be
               performance-based and the actual payment dates will be based upon the
               completion and acceptance of the related deliverables. No invoice will be
               approved unless the State Project Manager has approved the associated
               deliverable(s). The State intends to withhold as much as 15 percent of each
               payment until the State formally accepts the implementation of the PeopleSoft
               Financials application at the end of the post implementation support period.

               The Vendor must include, within the fixed price for its service activities, tasks,
               and preparation of the required deliverables, pricing for the deliverables based on
               the proposal approach, methodology and tools. A fixed price must be provided
               for each deliverable. The following format must be used to provide this
               information.

                   Deliverable   Deliverable     Delivery       Payment    Percent of    Cumulative
                                 Type            Date           Amount     Total         Amount
                   Management
                   Plan             Written      MM/DD/YY          $$          %%             $$
                   Document        Software
                   Assessment    Non-Software

                   Technical

                   TOTAL
                   COST

               The prices and information provided in this section will form the basis of
               payment under any contract resulting from this RFP.




Vendor Cost Response                                                                          181
Delaware Department of Finance – PeopleSoft Financials Implementation Project
Request for Proposal



       7.1.7. Other (As Needed)
               Software tools and utilities that are required to support the design, configuration
               or testing of the implemented application must be detailed.

                      Software             Number     Base Package    Annual Costs        When
                    Product and               of      or One-Time        (e.g.,          Annual
                    Functionality          Licenses       Cost        Maintenance)      Costs Begin


                   TOTAL COST

               Please identify any costs specifically excluded from this proposal.

                       Excluded Costs             Amount (If Known)          Reason for Exclusion

                   TOTAL COST

               If there are any costs included in the Core Not to Exceed Cost that are not
               covered in the cost table they must be summarized separately and labeled
               “separate costs.” The Vendor must include details and indicate if they are
               supporting any other costs. These details must include, at a minimum, detailed
               descriptions and/or specifications of the goods and/or services to be provided,
               quantities, timing and unit costs, if applicable.

                       Separate Costs        Amount       Support         Description      Details


                   TOTAL COST

       7.1.8. Attachments and Assumptions
               As indicated above, please state any significant assumptions associated with the
               estimation of costs for this proposal. Please identify the activity or topic to
               which the attachment or assumption applies and how the attachment or
               assumption impacts the Cost Proposal (e.g., a fiscal impact on costs or impact on
               hours per month, etc.).

                       Activity or Topic       Attachment or Assumption    Impact on Cost Proposal



               This table may be submitted in either MS Word or PDF formats.




182                                                                           Vendor Cost Response

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:122
posted:7/19/2011
language:English
pages:185
Description: Proposal for Peoplesoft Project document sample