1 IT Resource Provider (ITRP) Multi-Step ContractingDecember 2016

2 Overview This presentation provides an overview on how to obtain Information Technology (“IT”) resources using the new Information Technology Resource Program (“ITRP”) multi-step contracting process. This will be an important tool for agencies to consider to meet their IT resource needs. Available ITRP contract resources are grouped into six IT skill categories. Through a competitive solicitation process, the state has pre-qualified vendors (“Members”) who have met minimum capability requirements to provide resources in one or more of these categories. Members in each category are eligible to bid on subsequent, agency-developed Invitation for Bids (“IFB”) containing project-based Statements of Work (“SOW”). Currently, seventy-seven (77) vendors have been pre-qualified for one or more skill categories. This indicates the number of Members currently pre-qualified to perform work in each skill category. However, ONLY those vendors who have successfully entered into terms and condition (“T&C”) contracts with the state will be permitted to bid on ITRP IFBs. A basic “terms and conditions” contract has been established between the State and each vendor for an approximately five (5) year period, beginning in Fall 2016 and ending June 30, 2021, renewable for an additional sixty months. Establishing these vendor pools and reaching agreement on these basic T&C contracts will reduce the time for issuing IFBs/SOWs, reviewing bids, and processing contracts resulting from future ITRP IFBs.

3 IT Skill Categories Available ITRP contract resources are grouped into six IT skill categories. A - Application Development B - Database Administration C - Solutions Architecture D - Program Management E - Technical Support F - Security Management A Application Development Members have experience providing resources for application development in areas including such positions as Website Designer, Web Developer, Mobile Developer, SharePoint Developer, MS Access Developer, Adobe Developer, Software Developer, Senior Software Developer, Fleet System Developer, Application Deployment: Microsoft Dynamics CRM, Remedy System Developer, Remedy Force Developer, Mainframe Software Developer, Mobile Application Developers. B Database Administration Members have experience providing resources for database administration areas including such positions as: Database Designer; Enterprise Data Administrator; Enterprise Data Architect; and, Information Exchange Package Document (IEPD) Developer.

4 C Solutions ArchitectureMembers have experience providing resources for solutions architecture areas including such positions as: Microsoft Solution Architect; IBM Solution Architect; Adobe Solution Architect; Enterprise Content; Management Architect; Business Intelligence/Data Architect, SAP Enterprise Resource Planning Architect; Enterprise Resource Planning (ERP) System Integration Architect; Governance, Risk and Compliance Architect; and, Enterprise Change Management Solution Architect. D Program Management Members have experience providing resources for program management areas including such positions as: Project Manager; Program Manager, Jr.; Business Analyst, Sr.; Business Analyst; Computer Engineer / Systems Analyst; and, Enterprise Architect. E Technical Support Members have experience providing resources for technical support areas including such positions as: Technical Writers; Technology Trainers; Software Quality Assurance Specialists; Production Control Specialist; Data Analytics, IT Research, Management Consulting and other related IT consulting support roles. F Security Management Members have experience providing resources for security management areas including such positions as: Information Security Compliance Analyst; Security Vulnerability Analyst; Security Assessor; Application/Data Security Assessor; Disaster Recovery Services Specialist; Information Security Implementation Specialist; PKI Administrative Specialist; PKI Code Implementation Specialist; and, PKI Systems Analyst.

5 1. Agency Determines IT Resource NeedPermitted Uses of ITRP Contracting Resources ITRP contracting may be used to acquire IT resources to meet agency needs for specific, well-defined  projects. ITRP resources are not to be used for staff augmentation. ITRP projects should be of fixed duration, and/or requiring skills  not possessed by existing state personnel.   Governance will use the following guidelines to determine if a project is appropriate for ITRP resources. Non-Bargaining Unit Work – ITRP contracting may be allowed if the same or comparable work is not arguably performed by bargaining unit employees. Bargaining Unit Work: If work can be performed by bargaining unit employees, the proposed project could possibly be approved for ITRP contracting if it fits into one of the following categories: Time Limited Work – Work based on one of the following exceptions: Emergency Work Temporary or Seasonal Work No Appropriate (state employee) Eligible List 2. Time Limited Projects – The work to be performed is for time limited projects required to meet certain agency mandates for which specific funds have been dedicated. 3. Specialized Professional – The work to be performed requires specialized, professional or technical services which cannot reasonably be provided by employees.

6 1. Agency Determines IT Resource Need – ExamplesScenario #1 FACTS: Agency A has a legacy, mainframe application supporting their payroll functions. George Washington is the COBOL developer who has been supporting this system for the last 40 years. It’s time for George to retire, which will leave Agency A without an IT resource to support and maintain this critical system. Agency A’s CIO, John Adams, has a revelation…he can use this new ITRP thing to procure a COBOL developer to support and maintain his Agency’s payroll system. ACTION: John submits this IT project into the ePMO portal and selects ITRP as his preferred procurement approach. RESPONSE: John’s request to use the ITRP procurement tool is denied as the request is not to be used for staff augmentation. CORRECT ACTION: John can cross-train a current IT staff member, post the full-time position George is vacating or try to post an RFP for staff support.

7 1. Agency Determines IT Resource Need – ExamplesScenario #2 FACTS: The State of Illinois receives grant funding from the United States Department of Money to implement a new state system that will prevent the spread of counterfeit bills in Illinois. This funding opportunity is only available for a two-year period, at which time any remaining grant money must be returned, regardless of whether the system implementation is complete. Agency B has a three-person IT development team that supports the Agencies various IT applications. They spend 110% of their time supporting and maintaining these system. Agency B’s CIO, Alex Hamilton, has a revelation…he can use this new ITRP thing to procure an IT implementation team to use the federal grant money and implement the state’s new anti-counterfeit bill system within the two-year grant window provided. ACTION: Alex submits this IT project into the ePMO portal and selects ITRP as his preferred procurement approach. CORRECT ACTION: Alex’s request to use the ITRP procurement tool is approved as this request is a specific, well-defined project and falls under the category of time-limited work.

8 1. Agency Determines IT Resource Need – ExamplesScenario #3 FACTS: The State of Illinois has decided to get into the aerospace business and is starting a project to launch a rocket that will shuttle IL citizens to the moon for day trips. In order to kick-start this new initiative the state has asked the Agency C to conduct a pilot program in which they launch Albert the Ape into space. In order to properly implement this pilot the State needs to hire a small team of computer engineers knowledgeable in the field of aerospace technology. Currently the State does not employ individuals with this training or background. Agency C’s CIO, Jonathan Glenn, has a revelation…He can use this new ITRP thing to procure aerospace computer engineers to plan, design and implement the Ape in space pilot project. ACTION: Jon submits this IT project into the ePMO portal and selects ITRP as his preferred procurement approach. CORRECT ACTION: Jon’s request to use the ITRP procurement tool is approved as this IT project requires specialists with skills  not possessed by existing state personnel.

9 2. Submit IT Resource Request for Enhanced IT Governance ReviewEnhanced IT Governance Required Proposed ITRP projects will adhere to the Enhanced IT Governance review and approval process using the Enterprise Portfolio Management (ePMO) portal. This enhanced IT Governance review process will examine both the substance of the IT request, and if approved, assess whether the need could be suitably met by using another resource (e.g., internal resources, other existing or new contracts, etc.). ePMO Agencies will use the ePMO portal to submit projects at: https://gov.portal.Illinois.gov/sites/epm A new field has been added to the ePMO project initiation screen, which requires requestors to select the Procurement Approach they are seeking for their IT project. For ITRP requests users MUST select “ITRP/IFB” from the drop down menu.

10 2. Submit IT Resource Request for Enhanced IT Governance Review (con.)As stated earlier, in considering whether to approve an ITRP/IFB procurement request the IT Governance team will consider several factors, including whether the request is for specific, well-defined projects, that are not staff augmentation, and require skills  not possessed by existing state personnel. To make this determination, requestors must include information re: Whether the anticipated work falls under Bargaining Unit work? If No, then the ITRP should be an appropriate procurement method. If Yes, include one of the exceptions, listed above in red, that allow for the use of the ITRP. We ask that you be as specific as possible in explaining why an exception applies. List any of the six skill categories that are being requested. We ask that you specify why an IT project requires each requested skill category.

11 2. Submit IT Resource Request for Enhanced IT Governance Review (con.)ITRP Approved Selecting “ITRP/IFB” will kick-off an ITRP approval workflow within DoIT. If the request to use the ITRP/IFB procurement approach is approved, the requestor will receive an notifying them of this approval.

12 2. Submit IT Resource Request for Enhanced IT Governance Review (con.)ITRP Rejected If the request is rejected it can be rejected outright, or it can be rejected with a request to provide more information. In either instance the requestor will receive an notifying them of the rejection and whether additional information is being requested.

13 2. Submit IT Resource Request for Enhanced IT Governance Review (con.)ITRP Rejected (con.) If the ITRP/IFB procurement request is rejected, the ePMO procurement approach drop-down menu will be defaulted to N/A. The requestor can either: 1. Provide additional information clarifying why the ITRP/IFB approach is appropriate and re-select “ITRP/IFB” from the procurement approach drop-down menu. This will re-start the workflow approval process outlined in slide 10. 2. Select a different procurement approach, such as an RFP. A complete history of the request and approval process is captured and transparent for each project in the ePMO. PLEASE NOTE: Approval or rejection of the ITRP/IFB procurement approach does not signify a project’s status in IT Governance. These are separate but related approval work streams that occur simultaneously. Even if an IT project’s ITRP/IFB procurement approach request is rejected, the project will continue being reviewed by the IT Governance team. Before an IT project can exit Gate 3 of IT Governance, the Procurement Approach will need to be properly updated in the ePMO with an alternate procurement approach.

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15 3. Business Case Development and SubmissionIt is at this point that Agencies should submit their Procurement Business Case in either the Remedy PBC or soon to be implemented Bid Buy system. Agencies will need to: Specify the IT Governance decision that identified ITRP contracting as the appropriate method for obtaining needed IT resources; Again, list any of the six skill categories that are being requested in the ITRP request. NOTE: This initial selection can be changed as the procurement request is developed, but will need to be set before issuance of the IFB. If the PBC lists an ITRP as being approved through Governance, PBC approvers will check the ePMO system and review the original ITRP request to ensure it is in synch with the PBC request. We are working to automate this review between the ePMO and new Bid Buy system.

16 4. Scope of Work/IFB DevelopmentAs with any solicitation, agencies will prepare a scope of work that identifies the expected purpose/goals, deliverables, milestones, and related expectations. The  IFB/SOW must identify the specific agency need and include detailed information that will describe the type of services  necessary to complete the proposed project;  In order to ensure Members are aware of what services are being requested, agencies must identify those skill categories they will need to perform the project work detailed in each specific IFB/SOW; Finally, to both ensure Members’ bids are accurate and that agencies have an estimate of what a fair and reasonable bid requires, we encourage agencies to include estimates of hours needed for each specific IFB/SOW.

17 ITRP Procurement Approval Process#1 Agency determines need for IT Project Agency identifies funding #3 Agency enters project into PBC Agency enters project into ePMO-Gate 1 Agency specifies ITRP in PBC #5 ITRP-IFB submitted for approval to post #2 Agency specifies ITRP in ePMO #4 Agency drafts ITRP-IFB DoIT evaluates ITRP request Approved PBC Approver evaluates ITRP request in PBC in synch with ePMO Approved Rejected Rejected Agency submits additional info. Agency specifies new procurement approach in PBC

18 Small Business Set-Aside (SBSA) 5. IFB Issuance/Bidding Process Agencies will issue ITRP IFBs containing their project-specific SOWs by posting the solicitation to the Illinois Procurement Bulletin (“IPB”) or BidBuy. ITRP IFBs are specific to ITRP projects and as such the ITRP IFB template MUST be used when procuring these services. The ITRP IFB template be made available through the DoIT Procurement Office. Bids are only allowed from pre-qualified Members in the IT skill categories called for in particular project that have executed a T&C contract with the State.  If a project calls for more than one skill category, only those Members who are pre-qualified for each skill category called for by that project will  be permitted to bid on the IFB/SOW. Agencies must attach a list of all Members eligible to participate when publishing the ITRP IFB. If a bidder is not a pre-qualified Member, or not pre-qualified in all the IT skill categories requested, their bid will be rejected. Small Business Set-Aside (SBSA)  On projects with an estimated value of $500,000 or less, preference will be given to pre-qualified Members who are registered Illinois Small Business vendors pursuant to 30 ILCS 500/45-45. These projects will be solicited to SBSA ITRP pre-qualified Members  first . If the State is unable to make an award to one of the SBSA ITRP pre-qualified Members within a skill category, only then may remaining pre-qualified Members  bid on the IFB. Waivers to the SBSA procurement process may be granted by the Chief Procurement Officer – General Services (“CPO-GS”).

19 5. IFB Issuance/Bidding Process con.Multi-Tiered Award Agencies may  award a single or a multi-tiered award. A multi-tiered award may be made to a maximum of 3 Members; a primary, secondary and tertiary Member. These Members may work concurrently as secondary and tertiary Members may be tasked to perform work if the primary Member cannot provide the necessary IT resources to perform the work in the SOW. If the State intends to make a multi-tiered award, then the IFB must state so at the time of solicitation or only a single award will be allowed.   Annual Pre-qualification The current pre-qualified vendor pool participation term will be for an approximately five (5) year period, beginning in Fall 2016 and ending June 30, 2021, renewable for an additional sixty months. On an annual basis, vendors will have the opportunity to apply to join the pre-qualified vendor pool. It is the State’s goal to maintain a diverse and robust vendor pool for Agencies to work with. An up-to-date list of pre-qualified vendors and the skill categories for which they are pre-qualified will be made available to both internal and external stakeholders on the DoIT website.

20 6. Bid Review/Member Selection ProcessAgencies may award a contract to the Member who submits the lowest cost, responsive and responsible bid to provide the resources specified within the ITRP IFB/SOW. If an agency does not consider the price to be fair and reasonable and negotiations fail to result in an acceptable price, the agency may choose not to issue an award, or choose to negotiate with the Member which submitted the next lowest priced bid. Agencies will determine whether the price is fair and reasonable by considering the bid, including: the bidding Member’s qualifications, its reputation (this may include reviewing written assessments, including information about unacceptable member performance from previous engagements at the State), all prices submitted by other eligible Members, other known prices, the project budget and other relevant factors. Agencies must prove that a pre-qualified bidder with the lowest bid does not meet one or more of these qualifications to reject the bid and move to the next lowest bidder.

21 Bidding Process #6 Award ITRP-IFB #5 ITRP-IFB posted YES ONLYPre-qualified SBSA Members may Bid YES Review lowest SBSA Member’s bid #6 Award ITRP-IFB Is the Member pre-qualified in each skill category requested? NO YES #5 ITRP-IFB posted Review next lowest SBSA Member’s bid Is it “fair & reasonable? Is the ITRP for $500,000 or less? Reject Bid NO Is there another pre-qualified SBSA Member bid? YES Negotiate with Member NO Negotiations successful? NO ALL Pre-qualified Members may Bid Review lowest Member’s bid

22 7. Contracting with MembersDoIT has established basis T&C contracts with pre-qualified Members. In addition, the following will apply to these contracts: All services performed by Members shall be subject to inspection and acceptance by the agency;  If requested, the Member fulfilling a SOW shall participate in a written assessment process, conducted by the State or agency, following the completion of each SOW to determine the performance and efficiency of the resources provided by the Member. Members shall abide by applicable State and agency security regulations, policies and standards regarding security of information systems resources. This may include background checks and compliance with other security requirements as a condition of the contract. Billing Invoicing shall be at the completion of the contract unless invoicing is tied in the contract to milestones and deliverables set in the SOW;  A record of all authorized hours billed by each Member and its resources shall be maintained by the agency and the Member pursuant to the applicable SOW, and shall not exceed the number of hours authorized in that SOW; The vendor shall not receive payment for any hours that exceed the maximum number of hours in an approved SOW without a written change order;

23 Unacceptable Member PerformanceIf the lowest cost, most responsive and responsible bidding Member provides a resource(s) that is unable to complete the tasks required by the IFB SOW, the agency may, at no cost, request the replacement of the resource upon discovery of the unacceptable performance. The agency must make this determination within 14 calendar days of the resource beginning work or a mutually agreed upon timeframe that shall be memorialized in the SOW. It is advised that agencies work with their Agency CIOs to devise skills assessments to ensure that ITRP vendors skill levels match the Agencies needs within the first week of onboarding these resources. This should give the agency time to address performance issues with a resource and troubleshoot whether a replacement is necessary before the 14 day “probation period” ends. The Member must identify a replacement resource within five (5) business days, exclusive of any required background checks. The winning Member will have one opportunity to replace the resource with an acceptable resource that meets the agency’s needs. Subject to the oversight of the State Purchasing Officer, if the Member’s second attempt is unsuccessful the agency is allowed to move to the Secondary Member for a multi-step contract or the Member who submitted the second lowest bid for that IFB.   The agency must provide documentation of why the resource, service, or product was found unacceptable and shall submit this documentation for approval to the designated Agency Purchasing Officer and State Purchasing Officer for that agency before being allowed to move to the second lowest bidding Member. Possible Removal from Member Pool Three (3) instances of poor vendor performance could ultimately lead to ejection of the Member vendor from the Member pool for a specified period of time.

24 Multi-Tiered Award Process & Unacceptable Member PerformanceITRP vendor completes project to Agencies satisfaction YES #6 Award ITRP-IFB to Primary, Secondary & Tertiary Members Primary vendor assigns ITRP resources to Agency IT Project Is the resource qualified to complete the ITRP project work? YES NO Replacement candidate requested from Primary Member Was Replacement Candidate provided within 5 Business Days? NO Replacement candidate requested from Secondary Member Was Replacement Candidate provided within 5 Business Days? NO Replacement candidate requested from Tertiary Member Was Replacement Candidate provided within 5 Business Days? NO IT Project may require new procurement

25 Agency Determines IT Resource Need To Sum Up Agency Determines IT Resource Need Submit IT Resource Request for Enhanced IT Governance Review Business Case Development and Submission (currently Remedy/PBC – to be replaced by BidBuy) Scope of Work/IFB Development IFB Issuance/Bidding Process Bid Review/Member Selection Process Contracting with Members

26 Next Steps specific, well-defined projects.A set of ITRP Procedures for using the ITRP will be made available this week. A list of pre-qualified ITRP vendors, including those registered as Small Businesses, will be posted online this week. We plan to schedule educational WebEx’s and in-person informational session for pre-qualified vendors after the new year to assure an informed vendor pool. Agencies should start identifying ITRP procurement requests and enter them into the ePMO. DoIT plans to request the first ITRP IFB solicitation be posted during the week of December 19th. Agency requests submitted to the ePMO will begin being reviewed after that date. REMEMBER, ITRP projects must be: specific, well-defined  projects. are NOT for staff augmentation. requiring skills  not possessed by available state personnel.   

27 THANK YOU Any questions?