ACCESS Florida System Replacement State of Florida, Department of - - PowerPoint PPT Presentation

ACCESS Florida System Replacement State of Florida, Department of Children and Families Office of Economic Self-Sufficiency

Oral Presentation ITN# 03F12GC1 Xerox State & Local Solutions, Inc. October 17 – 18, 2012 Duplicate Copy

Business Group Name Here

Agenda – Day 2

October 18, 2012 Page 2

Topic Allotted Time Participants

Functional Requirements (Information Verification and Eligibility Determination) 9:00AM – 10:00AM Mark Mayo Joel Schensul, Account Executive Bill Majorossy, Project Manager Kim Shaver, Subject Matter Expert Jeff Valentine, Subject Matter Expert Glenn Miller, Subject Matter Expert Dustin Nguyen, Subject Matter Expert Geoff Duckwall, Subject Matter Expert Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Agenda – Day 2

October 18, 2012 Page 3

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Agenda – Day 2

October 18, 2012 Page 4

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements (Financial Management and Reporting and Analytics) 10:15AM – 11:15AM Mark Mayo Joel Schensul, Account Executive Bill Majorossy, Project Manager Kim Shaver, Subject Matter Expert Jeff Valentine, Subject Matter Expert Sarah Wilson, Subject Matter Expert William Rudolph, Subject Matter Expert Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Agenda – Day 2

October 18, 2012 Page 5

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements (Program Management and Infrastructure and Support Functions) 11:15AM – 12:15PM Mark Mayo Joel Schensul, Account Executive Bill Majorossy, Project Manager Kim Shaver, Subject Matter Expert Jeff Valentine, Subject Matter Expert Shawn Dietrich, Subject Matter Expert Glenn Miller, Subject Matter Expert Dustin Nguyen, Subject Matter Expert Geoff Duckwall, Subject Matter Expert Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

The Xerox Solution Advantages – Reusable Assets from Oracle Consulting

March 4, 2013 Page 6

Pre-built Integration MAGI Eligibility Rules Enabled Requirements CMS Gate Reviews Self-Service Portal Federal Data HUB Integration

Oracle Software + Oracle Services =

Development Cycle Present Day

Business Rules in code

October 18, 2012 Page 7

A New Approach to Rules

Oracle Policy Automation transforms policy documents…

March 4, 2013 Page 8

Oracle Policy Automation

March 4, 2013 Page 9

Agenda – Day 2

October 18, 2012 Page 10

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Lunch

Agenda – Day 2

October 18, 2012 Page 12

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements (Case Management and Case Work and provider and Business Partner Management) 1:15PM – 2:45PM Mark Mayo Joel Schensul, Account Executive Bill Majorossy, Project Manager Kim Shaver, Subject Matter Expert Jeff Valentine, Subject Matter Expert Glenn Miller, Subject Matter Expert Dustin Nguyen, Subject Matter Expert Geoff Duckwall, Subject Matter Expert Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Program Integrity – Reducing Fraud and Error Rates

KPMG Forensic Practice in the United States

• Established in 1987 (components date from 1800s)
• 39 Partners
• 572 Forensic professionals
• Core Services offered include: Investigations; Compliance &

Monitoring; Forensic Technology; Dispute Advisory Services, and Fraud Risk Management

KPMG’s Fraud Risk Management

October 18, 2012 Page 14

Prevent, Detect, and Respond

October 18, 2012 Page 15

Design program in collaboration with DCF – available activities and approaches include:

• Database connectivity/data sharing across state systems
• Identity verification technologies and services with the

Xerox IES and specialty providers (real time)

• Error prone profiling – identifying high risk applications
• Process and data mapping across all eligibility programs
• Fraud awareness and other training

Prevent

March 4, 2013 Page 16

Reduce the risk of fraud, waste, and misconduct

• Analyze voluminous electronic information and data to

identify trends

• Determine appropriate areas for sampling or

comprehensive follow up

• On an ongoing basis, evaluate processes for possible

improvements in the efficiency of programs, or in the quality

• f program delivery, and to look for and understand the root

cause of problems identified

Detect

March 4, 2013 Page 17

Discover fraud, waste, and abuse in its earliest stage

• Integrate with other recovery operations within the State of

Florida

• Investigate and conduct fact-finding in response to

allegations of wrongdoing

• Coordinate with federal or state law enforcement authorities
• r officials with audit responsibilities
• Continue analysis and reporting on the effectiveness of

fraud prevention programs

Respond

March 4, 2013 Page 18

Take corrective action and remediate the harm

Consistent with the Government Accountability Office’s (GAO) model for anti-fraud programs and controls

KPMG Fraud Risk Management Methodology

October 18, 2012 Page 19

Potential fraud, waste, and abuse Potential fraud, waste, and abuse Potential fraud

Preventive controls Detection and monitoring Investigations and prosecutions Lessons learned influence future use of preventive controls

Source: GAO

Data analytics procedures that can be used include:

• Identify key data personnel for each respective program
• Interview key data personnel to discuss data availability, location, and

systems that are currently in place

• Work with respective IT Team to obtain data access
• Create queries to perform proactive forensic data analysis, such as

identifying areas where key pieces of data are missing, incomplete, or erroneous

• Cross-match information against program-related information,

state/local government provided information, and third-party databases

• Perform periodic cross validation against employees, applications, and

contractors

• Use fuzzy logic techniques to identify relationship not immediately

apparent

• Perform advanced analytical procedures to identify outliers

Data Analytics

October 18, 2012 Page 20

• Enables global consistency in KPMG’s approach and

design of analytical procedures

• Designed to allow for flexibility and customization of client

needs and their systems

KPMG Data Analytics Tool (KDAT)

October 18, 2012 Page 21

Identify Criteria

• Define criteria

for each program considering past experience and available data Configure

• Configure the

tool for the criteria and available data Analyze

• Proactively

analyze data

• Refine the tool

based on experience

Example 1 – Louisiana’s Road Home program

• Housing recovery and rebuilding program following Hurricanes Katrina

and Rita

• Members of HUD Office of Inspector General’s Hurricane Katrina Fraud

Task Force

• Fully integrated solution, including policies and procedures, data

analytics, investigations, training, and reporting

• Helped identify and investigate more than 1,800 instances of benefit

fraud Example 2 – Galveston and Harris County, Texas Example 3 – British Petroleum oil spill government claims

Fraud Risk Management in Action

October 18, 2012 Page 22

Integrated and Comprehensive Solution

• Bi-weekly forensic data analysis and data mining across the program’s

150,000+ applicants to identify possible anomalies, patterns, and instances of fraud, waste or abuse, and duplication of benefits

• Scripting of custom-designed data analytics routines incorporating
• wner, occupancy, homestead, address, insurance, and damage

assessment information for the purposes of identifying red flags which could indicate instances of potential fraud, waste, or abuse

• Reporting on data mining and data analysis results to program

management for review and follow-up

• Investigating homeowner occupancy and eligibility when critical red

flags were discovered through our data analytics routines or when tips were provided via the program’s fraud whistleblower hotline

Louisiana’s Road Home Program

October 18, 2012 Page 23

• Assisted with the development of a compliance program that included

standards of ethical conduct, conflict of interest policies, investigative protocols, whistleblower and hotline procedures, and a process to refer matters to federal and state law enforcement authorities

• Acted as a liaison with federal and state law enforcement authorities
• Assessed and tested selected information technology and information

security controls

• Performed forensic testing of controls and quality assurance reviews to

ensure compliance with program rules and requirements and accuracy

• f the grant calculations
• Assessed overall program effectiveness and efficiency

Louisiana’s Road Home Program

October 18, 2012 Page 24

Sample Analytics

October 18, 2012 Page 25

Subprogram Referrals, 1% Fraud/Ethics Hotline, 13% Program Employees, 43% Government Agency, 2% Subprogram 2 Referrals, 5% Subcontractor Referrals, 3% Anti Fraud Analytics, 30% Other, 3%

Summary of Source of Investigative Matters

Sample Analytics

March 4, 2013 Page 26

Improper Influence, 2% Check/Information Theft, 0% Applicant Reported Information 5, 37% Applicant Reported Information 4, 13% Applicant Reported Information 3 , 40% Applicant Reported Information 2, 6% Applicant Reported Information 1, 1% Other, 1%

Summary of Issues Identified by Investigative Work

Sample Fraud Detection Reports

March 4, 2013 Page 27

• Proposed office within the Department
• Comprehensive fraud prevention, detection, and response

program that addresses:

– Technical capabilities – Operational policies and procedures – Training – Ongoing analysis

• Would operate across all Department programs

 Value-added service

Fraud Prevention Operations Office

March 4, 2013 Page 28

Prevention Detection Response

Board/audit committee oversight Executive and line management functions Internal audit, compliance, and monitoring functions

• Fraud and misconduct risk

assessment

• Code of conduct and related

standards

• Employee and third-party due

diligence

• Communication and training
• Process-specific fraud risk

controls

• Proactive forensic data analysis
• Hotlines and whistleblower

mechanisms

• Auditing and monitoring
• Retrospective forensic data

analysis

• Internal investigation protocols
• Enforcement and accountability

protocols

• Disclosure protocols
• Remedial action protocols

Sample Anti-fraud Program Elements

October 18, 2012 Page 29

Fraud Prevention Operations Office

October 18, 2012 Page 30

Assess Risks Design Program Implement Evaluate

Agenda – Day 2

October 18, 2012 Page 31

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Agenda – Day 2

October 18, 2012 Page 32

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Mark Mayo, Xerox, Group President Joel Schensul, Xerox, Account Executive Bill Majorossy, Xerox, Project Manager Chuck Cliburn, Xerox, Sr. VP and Client Executive Carla Capps, Xerox, VP Sales, HSS Kelly Berglund, Xerox, Sr. Finance Manager Question and Answer 4:15PM – 5:00PM

• Price is a firm, fixed price.
• Rate card rates are fixed for the base term.

– As the Cost Reply Form “Part 5” Tab was protected from adding rows,

but the instructions at the top of the page stated, “Add as many rows as you need…”, we have created a tab titled “Part 5-rate card” to match “Part 5” where we have added rows as needed to include the desired positions.

• Price is based on units and volumes from the ITN.
• The base term is 52.5 months with options to renew for

additional periods of up to 52.5 months.

Assumptions

March 4, 2013 Page 33

• Contract starts January 14, 2013.
• Phase 3 functionality will be implemented October 1, 2013, and O&M

begins at that time.

• Phases 4a and 4b will be done simultaneously and the cost for such is

included on the 4a schedule. The functionality of these phases will be implemented June 1, 2015, and O&M begins at that time.

• Legacy O&M will transition for three and one-half months and we will

take on full responsibilities effective May 1, 2013. This service will be completed upon implementation of Phases 4a and 4b and one month of decommissioning (June 30, 2015).

• One year of warranty for the full system (June 1, 2015 through May 31,

2016) is included in our price.

• Base contract ends May 31, 2017.

Assumptions – Timing

October 18, 2012 Page 34

Contract Event Timeline

October 18, 2012 Page 35

2013 2014 2015 2016 2017 Contract starts

January 14, 2013

Phase 3 implemented

October 1, 2013

Phases 4a and 4b implemented

June 1, 2015

Legacy O&M

May 1, 2013 - June 30, 2015

Base contract ends

May 31, 2017

Phase 3 O&M

October 1, 2013 – May 31, 2017

Phases 4a and 4b O&M

June 1, 2015 - May 31, 2017

Summary Pricing

March 4, 2013 Page 36

State Fiscal Year FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Contract Dates 1/14/13- 6/30/13 7/1/13- 6/30/14 7/1/14- 6/30/15 7/1/15- 6/30/16 7/1/16- 5/31/17 Total # of Months 5.5 12 12 12 11 52.5 Phase 3 DDI Services 13,146,466 3,159,231

• 16,305,697

Phase 3 DDI Software 2,396,379 105,752

• 2,502,131

Phase 3 DDI Hardware 105,363 312,443

• 417,806

Phase 3 O&M

• 423,081

564,108 564,108 517,099 2,068,396 Phase 4a & 4b DDI Services 14,471,304 26,669,214 20,458,770 3,623,490

• 65,222,778

Phase 4a & 4b DDI Software 9,585,518 423,009

• 10,008,527

Phase 4a & 4b DDI Hardware 421,454 1,249,774

• 1,671,228

Phase 4a & 4b O&M

• 775,649

9,307,788 8,532,139 18,615,576 Legacy O&M Transition 537,622

• 537,622

Legacy O&M Services 1,598,528 9,591,168 6,193,407

• 17,383,103

42,262,634 41,933,672 27,991,934 13,495,386 9,049,238 134,732,864 Optional WIC 421,400 848,068 869,430 117,036 107,283 2,363,217 Legacy O&M Legislative Enhancements 500,000 500,000 500,000

• 1,500,000

Hardware and Software included in our price:

• Development environments and software tools
• Project management tools
• Production environment
• Maintenance of the above items through the end of the base contract
• Imaging software
• Call center software

Hardware and Software required, but not included in our price:

• Electrical and cooling for network and server equipment at State facility
• Bandwidth for disaster recovery replication (currently part of the State’s

existing network)

Hardware and Software

March 4, 2013 Page 37

• No additional hardware or software is required to develop

WIC functionality.

• Work would be done concurrently with Phases 4a and 4b.
• One year of warranty and ongoing O&M is included in our

price.

WIC Pricing Assumptions

October 18, 2012 Page 38

We look forward to working with the Department on providing additional scope and pricing for the innovations we outlined in

• ur technical proposal.

Innovations

October 18, 2012 Page 39

All of Xerox pricing is fixed price as required. However, we would like to discuss the introduction of a shared savings model based on the innovative value added solutions discussed in our Reply, Section 4.5, Approach Innovations. Based on our experience in other states and projects, we are very confident these approaches will reduce costs for the State. Further, we would like to explore applying some level of savings to our pricing for the ACCESS Replacement System

• r the O&M based on the specific innovations selected by the

Department and other factors to be negotiated.

Cost Saving Opportunities

October 18, 2012 Page 40

Agenda – Day 2

October 18, 2012 Page 41

Topic Allotted Time Participants

Functional Requirements 9:00AM – 10:00AM Break 10:00AM – 10:15AM Functional Requirements 10:15AM – 11:15AM Functional Requirements 11:15AM – 12:15PM Lunch 12:15PM – 1:15PM Functional Requirements 1:15PM – 2:45PM Break 2:45PM – 3:00PM Cost Discussion 3:00PM – 4:15PM Question and Answer 4:15PM – 5:00PM

Thank You