1 ISD2 Replacement Project (ISD2R) PCC Update 07/23/10

2 ISD2R Agenda Objective Background Executive Review Including Health Care Reform Sub-projects Reviews: Budgets Going Forward

3 Objective Replace the Income Support Division (ISD), Integration Services Delivery (ISD2) System which manages benefits for over 700,000 clients who receive Food Stamps (SNAP), Energy Assistance, Medicaid, and Cash Assistance. Meet Requirements of Health Care Reform Act of 2010 Partner with the following Federal Agencies: Food and Nutrition Services (FNS) Centers for Medicare and Medicaid (CMS) Administration of Children and Families (ACF)

4 Background The Replacement Project was submitted in Sept and included three phases: Planning Web Access Replacement System By 2009 the Replacement Project focused on multiple Sub-Projects: Yes-NM Encounter Tracking Data Conversion Business Intelligence Imaging

5 Executive Review In Jan-Apr 2010 an Executive Review took place. Key Questions on Project Scope: What is the core functionality? The Replacement System What do you need for no wrong door and access the core functionality? Web Access What do you need for key performance indicators? Reporting Executive Review Outcome: Planning for the Replacement System taking into Consideration Health Care Reform Action: Review off existing and potential replacement systems.

6 Health Care Reform Systems Reviewed: Visited Michigan (Five member HSD team) Technology: A good fit Project Management Office (PMO) key to Michigan's success Demo from California on C-IV C-IV (Old): Technology is old; good graphical interface ASPS (New): Technology a good fit; good graphical interface Demo from Tennessee and Maine Acceptable fit for HSD and Health Care Reform Other Demonstrations/Conversations Deloitte, Microsoft, Northrop Grumman Determination: Send out an open RFP for an Integrator using a contracted Procurement Specialist.

7 Sub-Projects The Scope of the Replacement Project is the Replacement System. What should be done with the Sub-Projects: Executive Review Outcome: Cancel or suspend all projects not associated with the Replacement System (ISD2R) Web Access (Public: Yes-NM, Staff: Encounter Tracking) Suspended Reporting (Data Conversion & Business Intelligence) Cancelled Imaging (Electronic Documents) Cancelled Funding sub-projects puts ISD2R at risk Resource contention implementing sub-projects puts ISD2R at risk

Sub-Projects Web Public Access: Yes-NM Am I Eligible In production and M&O contract with vendor expires on 6/30/10 Production and UAT environment must be maintained by DoIT and HSD-ITD staff HSD must develop business processes to handle the inevitable increase in applications during a time of record high vacancies in field offices Reporting (Replaced by System Integrator) Encounter Tracking: Stopped at Proof-of-Concept May be added to Integrator RFP Business Intelligence: Supported with Internal Staff May be added to Integrator RFP Imaging: May be added to Integrator RFP 8

9 Funding & Budgets Analysis: Our State Laws funding the project have been interpreted for two parts of the project: Replacement System Yes-NM Our Federal Partners divided the Replacement Project into two phases: Planning Implementation Share represents the tracing of our laws: Z Replacement System Z Yes-NM BudgetsFed-PlanningFed-Implementation NM-Yes NM (Z80726)Never determined NM-Replacement (Z80727)Never determined

10 Funding & Budgets Federal Partners Budget Approval Planning Budget Approvals 2006$ 653, $ 1,346,400 Total$ 2,000,000 Pre-Implementation Budget Approvals dated Sept. 26, 2008 Imaging $ 2,500,000 Yes NM (limited)$ 1,163,190 Business Intelligence $ 618,000 Total$ 4,281,190

11 Funding and Budgets Tie Fed Phases with Sub-Projects Fed Partners Planning and Implementation Phases Fed Partners 2006 APDU Phases 2009 Sub Projects State Laws with Share Z codes Fed Partners Fed- Planning Fed-Implementation 2006 P-APDUPlanning Web AccessReplacement System (Z80726) 2009 P-APDUPlanning Web AccessReportingImaging 2009 P-APDUPlanningYes-NM (Z80727) Encounter Tracking Data Conversion Business Intelligence Imaging

12 Fed Partners - Funding and Budgets Federal Budget Status For this calculation, each expense from the start of the project to the end of SFY10 was assigned to either Planning or Implementation. Fed-PlanningFed-ImplementationTotal Fed-Budget$ 2,000,000$ 4,281,190$ 6,281,190 NM-Expenses$ 528,668$ 2,579,395$ 3,108,063 NM-Remaining$ 1,471,332$ 1,701,795$ 3,173,127

13 NM - Funding and Budgets Sub-Project Budget Status For this calculation, each expense from the start of the project to the end of SFY10 was assigned to a category. The categories consist of the sub-project or to the Replacement Project. The expenses for the Replacement Project are $784,238 Examples: contracts for PMP, APDU, IAPD, NM Web Access (ET & Yes) Reporting (DC & BI) ImagingTotal Fed-Budget$ 1,163,190$ 618,000$ 2,500,000$ 4,281,190 NM-Expenses$ (1,797,583)$ (526,812)$ 0$ (2,324,395) NM-Remaining$ (634,393)$ 91,188$ 2,500,000$ 1,956,795

14 Funding & Budgets Expense balancing Federal Partners Expenses Planning $ ( 528,668) Implementation$ (2,579,965) Total$ (3,108,633) Sub-Project Expenses (Planning & Implementation) Replacement Project $ ( 784,238) Imaging$ ( 0) Reporting (DC & BI)$ ( 526,812) Web (ET & Yes)$ (1,797,583) Total$ (3,108,633)

15 Going Forward Sub-Project Financial Tracking State Laws: Share = Z codes Fed Phases Planning and Implementation Phases Share = Operating Units Sub-Projects for Replacement System Share = Reporting Categories Budget (SHARE) Fed-Planning (Op Unit) Fed-Implementation (Op Unit) Yes NM (Z code) Reporting Categories Replacement (Z code) Reporting Categories

16 Planning Budget Expenditure Category Jul-Sep 2010 Oct-Dec 2010 Jan-Mar 2011 Apr-Jun 2011 Jul-Sep 2011 Total State Personnel $103,974 Contract Personnel $25,000$219,118$291,176 $1,117,647 Hardware and Software $19,487$23,570$3,750$100,000$146,807 Total$44,487$219,118$314,746$294,926$495,150$1,368,428

17 Going Forward Actions : Project Management Office (PMO) RFP Responses due 7/23/10 Deliver to the Federal Partners an updated Planning-APDU Delivered on 7/7/10 Procurement Specialist Contract In HSD review Re-submit to PCC a Change Cert at the Planning Phase July 2010 Issue open RFP for Replacement System including Integration

18 Schedule

19 Questions