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Marin County to replace SAP ERP system

Last week, officials in Marin County, California, announced plans to replace the county's underperforming SAP enterprise resource planning (ERP) system. The system is at the core of a heated lawsuit the county filed against Deloitte Consulting earlier this year.

Marin County claims the system has been far too pricey to maintain and only 50 percent functions properly. Deloitte is refuting these claims and has filed a complaint seeking overdue payments. In a court filing, Deloitte states the system "was working properly and could perform all the tasks consistently with the standards set forth in the written contract."

During a recent webcast county meeting, David Hill, director of the county's information services and technology department, said a complete rebuild and redesign is needed to get the current system up to par, which would be highly expensive.

Marin County reports it would cost $34.7 million to maintain its current SAP system, simply fixing current problems would cost $34.1 million, and fixing/supporting the system over time would cost $49.8 million. Instead, the county plans to implement a new system at an estimated cost of $26.2 million over a 10-year period.

In no rush to purchase a new product right away, Marin County is keeping its options open and hopes to learn more about what technology is available over the next several months.

GovWin is closely monitoring this project and will post new information as it is released. To view this opportunity, go here.

Things to consider if D-Block is approved for public safety use

Over the last two years, the Federal Communications Commission (FCC) and public safety agencies and organizations across the country have debated how to best use the set of radio spectrum known as the D-block. The FCC has toyed with the idea of allowing the commercial industry to purchase this spectrum, while public safety organizations have lobbied to expand the current public safety spectrum to include the D-block. Whatever the decision, public safety agencies will continue to pursue communication systems that support mission critical activities.

Assuming public safety approves use of the D-block, it will be up to vendors to expand their systems to include this additional spectrum. Agencies will be requesting equipment that allows seamless transmissions from one radio to another, whether in the same building or across the city/county. They will also request equipment that can transmit density-rich information. This is especially true during emergency situations where capacity and priority can influence response and recovery.

Vendors will also need to improve their reliability and vulnerability. It will be more important than ever to have a strong backup network and supply that allows agencies to ensure continuity of operations. So often we hear of networks dropping or losing function; therefore, it is essential for vendors to provide heightened reliability given the presumed data-driven communication environment that will stem from future broadband initiatives.

Over the last few years, it has become clear that agencies are not just putting in digital communication networks for the sake of moving away from analog, but more to ensure their networks are flexible enough to take on any future enhancements or capabilities. This could not be truer given the current economic situation of many government entities. The purchase of digital communication systems has the ability of saving money over the long run, as opposed to analog systems, which need upgraded equipment every few years. It will be interesting to see how a potential expansion of spectrum will affect the technology being proposed and purchased.

State IT Consolidation

With unemployment across the nation hovering at 9.5 percent, ominous clouds of a double-dip recession loom over the horizon. Most state budgets are shrinking, and one can only imagine the angst through procurement offices and boardrooms across the nation as they struggle to decide which IT initiatives to approve in this economic climate. However, all is not lost. With a newfound mantra of 'consolidation' whispered within the corridors of the powers that be, states are now taking this opportunity to examine IT portfolios, rationalize current enterprise applications and systems, identify areas of shared functions and needs, and attempt to stretch existing IT budgets to encompass a growing plethora of needs and services.

As observed in GovWin's State and Local Information Technology Market 2010-2015 report, authored by Chris Dixon, state and local government initiatives that focus on "streamlining and performance management across the government enterprise are integral to long-term budget cutting." In the forthcoming years, states will "look for major programmatic consolidations that will drive IT integration projects."

Examples of such consolidation efforts and initiatives include:

New York City and Centralized Accounts Receivables and Payments Marketplace: The city of New York currently deals with numerous types of invoices such as parking, red light and traffic violations, permits, and taxes that are handled by disparate systems. In an attempt to consolidate billing and customer functions, streamline and improve processes, and reduce overall costs, the city has decided to centralize management of all these functions within the Department of Finance. The city is currently seeking feedback from vendors with solutions for best practices, associated costs, and information on installing new and improved billing, payment collection, and cash application programs.

New York State and Consolidated Statewide E-mail Platform: The state of New York is currently in the process of consolidating various e-mail platforms across 40 different agencies onto a single e-mail platform to gain operational efficiencies. By consolidating all state agencies' e-mail operations on a single platform, the state anticipates a gain in operational efficiencies, which will result in an annual savings of $4 million dollars once fully implemented.

Michigan State, Cloud Computing and Consolidated Data Center: The Michigan Department of Technology plans to build a massive 80,000-100,000 square foot data center that provides cloud computing services to state agencies, cities, counties, and schools across the state. Not only will the initiative spur economic development within the state, but it will also reduce duplicate systems operated by cities, counties and state agencies. This could potentially save these organizations a significant amount of taxpayer dollars. Lastly, the plan is to position the infrastructure for private companies to view the data center as a potentially secure alternative to offshore application hosting and storage, all based in the U.S.

Race To The Top (RTTT) Round Two Awardees Announced

The U.S. Department of Education (DOE) awarded nine states and the District of Columbia with $3.4 billion during Round Two of its Race to the Top (RTTT) competition on Tuesday, August 24, 2010. Delaware and Tennessee were the recipients of Round One funding. The Race to the Top Program encourages states to develop ambitious, yet achievable plans for education reform. The ten awardees received the highest scores on their applications and were selected from a pool of 36 applicants.

The Round Two awardees are as follows:

District of Columbia - $75 million (GovWin Opportunity 58681)

Florida - $700 million

Georgia - $400 million

Hawaii - $75 million

Maryland - $250 million (GovWin Opportunity 58485)

Massachusetts - $250 million

New York - $700 million

North Carolina - $400 million

Ohio - $400 million

Rhode Island - $75 million

In order to receive the funding, the awardees must work with the DOE to meet the criteria established in their applications. DOE has requested an additional $1.35 billion in funding for Round 3 of the competition due to only being able to select ten applicants from several competitive applications submitted.

For more information on Race to the Top, please visit the program's website.

OMB Targets 26 IT Programs for Improved Management

Yesterday, OMB and the White House released a list of high-priority IT projects that according to Jeffrey Zients are "mission-critical and their objectives are as important as ever." This sounds like they are not necessarily in danger of cancellation; just that they will be receiving much more scrutiny and oversight to ensure that they are effective and executed on-time and on-budget.

In a July 28 memo, Federal CIO outlined the criteria for a high-priority project using the following risk factors:

  • Significant cost or schedule variance from the current baseline,
  • Performance targets or mission objectives have not been met,
  • Frequent re-baselines, or
  • Lack of essential executive sponsorship/leadership.

Using this criteria, and what I assume to be many others, the following 26 contracts were labeled as high priority.


Agency Name

Investment Title

Lifecycle cost

Incumbent

Department of Agriculture

Web-based Supply Chain Management (WBSCM)

$278.0 M

MITRE Corp.

Department of Commerce

BIS ECASS2000+

$64.5 M

Knowcean Consulting Inc.; Stanley Associates Inc.

Department of Commerce

USPTO Patent File Wrapper (PFW) Program

$276.5 M

Computer Sciences Corp. Civil Group; Raytheon Technical Services Co.

Department of Defense

Expeditionary Combat Support System (ECSS)

$2.0 B

Computer Sciences Corp.; Oracle Corp.

Department of Defense*

Future Pay and Personnel System (FPPS) - U.S. Navy

*

N/A

Department of Defense*

Integrated Pay and Personnel System - Army
(IPPS-A)

*

N/A

Department of Defense*

Air Force Integrated Pay and Personnel System
(AF-IPPS)

*

N/A

Department of Health and Human Services

FDA MedWatch Plus

$78.0 M

High Performance Technologies Incorporated;Novad Management Consulting Llc; Associates, Inc;

Department of Homeland Security

NFIP Technology Systems & Services (2011)

$101.2 M

OST, Inc.; Others Not Available

Department of Homeland Security

Homeland Security Information Network (HSIN)

$473.4 M

General Dynamics One Source LLC; Blackstone Technology Group; Nortel Government Solutions Inc.; Eagle Enterprise JV LLC; Govplace; Other Interagency Agreements

Department of Homeland Security

Automated Commercial Environment / International Trade Data System ACE / ITDS)

$4.5 B

IBM; Centech Group Inc.; Robbins Gioia LLC; Stratecon; Amdex Corporation

Department of Housing and Urban Development

HUD Transformation Initiatives

$312.2 M

Not Available

Department of the Interior

Consolidated Infrastructure Automation Telecomm

$7.6 B

Not Available; Other Interagency Agreements

Department of the Interior

Incident Management Analysis and Reporting System (IMARS)

$122.8 M

Not Available

Department of Justice

FBI Next Generation Identification (NGI)

$3.4 B

Lockheed Martin Corp.; Technical And Management Resources, Inc.; Others Unavailable

Department of Justice

FBI SENTINEL

$556.9 M

Keane Federal Systems Inc.; Bae Systems Applied Techonolgies; Noblis Inc.; CSC Information Systems LLC; Other Interagency Agreements

Department of Justice

JMD Litigation Case Management System (LCMS)

$128.3 M

Ementum Inc.; Other Not Available, Other Interagency Agreement

Department of Transportation

En Route Automation Modernization (ERAM)

$3.7 B

Lockheed Martin Corp.; Northrop Grumman Space And Mission Systems Corp.; Metters Industries Inc.; AST Engineering Services, Inc.; Others Not Available

Department of the Treasury

Consolidated Enterprise Identity Management (EIdM)

$432.5 M

Paradigm Solutions Corp.; Deloitte Consulting L.P.; Booz Allen Hamilton Inc.; Paragon Technology Group, Inc.; Others Not Available, Other Interagency Agreements

Department of the Treasury

IT Infrastructure Telecommunications ITT TSS

$2.8 B

AT&T Corp.; Paradigm Solutions Corp.; Cience Applications International Corp.; Management Systems Designers Inc.; Booz Allen Hamilton Inc.; RS Information Systems Inc.; Sandila, Inc.; Verizon Business Network Services Inc.; Technical Frontiers Inc; SBC Global Services Inc.; Lockheed Martin Corp.; Computer Sciences Corp.

Department of Veterans Affairs

Benefits 21st Century Paperless Delivery of Veterans Benefits

$579.2 M

Not Available

Department of Veterans Affairs

Medical 21st Century HealtheVet Pharmacy

$163.9 M

Perot Systems Government Services; Patriot Technologies, LLC; Science Applications International Corp.; Southwest Research Institute; Healia Inc.; Planetgov Inc.; Others Not Available

General Services Administration

Federal Supply Service 19

$376.2 M

Not Available

National Archives and Records Administration

Electronic Records Archives (ERA) Program

$994.9 M

Lockheed Martin Corp.; Alon Inc.; Information Technology Global Corp.; Information Manufacturing Corp.; Other Interagency Agreements

Office of Personnel Management

Retirement Systems Modernization

$136.0 M

Northrop Grumman Information Technology Inc.; Booz Allen Hamilton Inc.; Other Interagency Agreements

Social Security Administration

Citizen Access Routing Enterprise 2020 (CARE 2020)

$599.3 M

Not Available

*DoD data expected in September 2010

Source: Federal IT Dashboard, GovWin


So what happens now? Should contractors on these programs panic? Not yet. Agencies have 30 days to submit their improvement plans to OMB to give these programs a fighting chance. Specifically, agencies must address:

  • Major obstacles and justifications for the variance from project baselines
  • Risk factors, mitigation strategies and lines of accountability
  • Plans for more robust contractor performance metrics and controls for existing contracts, and improved acquisition strategies for future contracts coming within the next fiscal year
  • Revised schedules that identify critical path items
  • Description of the program's governance approach, plans to improve governance, and description of plans to improve internal contract program management oversight
  • List of specific corrective actions to improve the overall program performance

Following the submission of these improvement plans, OMB will conduct TechStat reviews for each of the programs to solidify the plans.

Contractors should anticipate their agency customers' need for support in this effort. While many of the requirements of the response focuses on internal accountability, agencies may need support in planning and describing technical and/or performance metrics that are both feasible and achievable.

I believe this list is only the beginning. Unfortunately, there are many other programs that could be on this list and might very well be in the near future. For contractors, the best approach would be to be proactive and address these issues in your programs before OMB points it out.

General Colin Powell Offers Insight on Leadership

General Colin Powell, as part of the Washington Speakers Bureau's Summer Speaker Series, offered insight on what it takes to thrive as a leader during challenging times. The hour-long presentation was broadcast via webinar on Wednesday, August 18, 2010. Powell spoke candidly about career highs and lows for approximately twenty minutes before taking questions from the live audience and online attendees.

Powell, 73, has a decorated history in leadership. The four-star general was national security advisor during the Reagan administration, chairman of the Joint Chiefs of Staff during George H.W. Bush's presidency, and secretary of state for President George W. Bush. Though retired from political life, Powell still maintains a busy schedule as a public speaker, which he considers his primary business interest. Powell said he enjoys connecting with audiences and that they give just as much back to him as he hopes he gives them.

Powell noted that much of his time was spent outside of the United States while working for past presidents and now he relishes in the chance to get his "fingers on the pulse of Americans and what America is thinking." He said Washington is not always reflective of the true America and he prefers traveling the country while speaking to a variety of people and hearing their views and concerns.

Despite severe economic hardships in the U.S., Powell said most people he encounters are not afraid of the future, and while they may be worried for the time being, "they are confident in our system." He said he tries to remind people how far the nation has come and how strong its people are. Even during troubled times and popularity decline, Powell said the U.S. is "still the land of hopes and dreams and opportunity."

Whether speaking to thousands of people in an auditorium or eight people in a hotel room, Powell is passionate about his mission to share, inspire and help others succeed. He shared his preferences for venues and said his favorite places to speak are old, refurbished movie theaters from the '20s and '30s.

"There ain't no old movie, just me. There's nothing more exciting for me as a speaker than to wander those old movie stages ... all eyes on me," he said.

Powell shared tips for those still adjusting to the speaking circuit. He noted the importance of connecting with an audience.

"People enjoy you opening the door to your life and sharing stories. It breaks the tension," he said. "Have a little fun and warm up the audience ... the atmosphere lightens and people want to hear more."

Oftentimes, companies provide an outline of what they want you to speak about in hopes of motivating and educating attendees. Powell said to always take client needs into account when preparing a speech and incorporate personal experience that relates to the organization's goals. By doing this, you are "talking with them and for them."

To be a successful and respected leader, you need to invest time and energy into understanding your organization. While stress and outside concerns can sometimes steal focus, Powell said it is imperative to always remember the positive nature of your company and its employees.

Further, Powell explained the importance of acknowledging all members of your team, regardless of their level in the company. He recalled being in a parking garage and speaking to the workers about their daily duties. When Powell asked how they determine the order of handling the incoming cars, they shared that those who roll their windows down and acknowledge their presence get better service.

Another essential quality of an effective leader is the ability to delegate responsibility. Powell spoke about a time when he met with President Reagan to share some problems he was encountering. While speaking, Powell noticed the president was distracted by squirrels eating nuts in the rose garden. Even after raising his voice, the president maintained focus on the squirrels outside the window. It was then that Powell realized it was not his place to bring his issues to the president, and by not acknowledging his concerns, the president was actually saying, "I will listen to you for as long as you want, but you are not my problem ... you come see me when I have a problem."

Powell explained that when you are hired as a leader, someone is entrusting you to take on that role and not rely on them for an easy fix.

"Keep unto yourself those things that you have to do and delegate responsibilities," said Powell.

Powell also stressed the importance of embracing diversity. He said America's melting pot is what keeps the nation thriving and that minorities will eventually be the majority.

"We have to learn to get along as a diverse society ... it will be an inspiration to the rest of the world," he said.

Powell, a son of Jamaican immigrants and raised in New York City, spoke about an encounter he had with an immigrant hot dog vendor. After asking the man how much he owed, the man replied, "You don't have to pay me. I've already been paid ... America has paid me. I'm here."

Powell noted that this country is still the same country that welcomed his parents and offered them hope years ago.

"America will always remain leader as long as we keep those dreams alive," he said.

Though the U.S. is still a dominant global force, Powell said the nation should be careful not to rest on its superpower status.

"America is still number one. We still have that title of leadership, but we can't treat the world like they're 13, 14 and 15," he said. "We need to look at them as two, three and four."

After 40 years of public service, garnering several honors, and speaking to patrons around the world, Powell found it hard to comment on his greatest achievements when asked by an audience member.

"I don't really think of my life in those terms. I'm a product of everything. My successes and my failures," he said.

Now, Powell enjoys balancing his speaking engagements, nonprofit work, and family life outside of the political spotlight. When asked what he hopes to be remembered by, Powell kept it short and simple: "Good soldier. Served well. Great family."

What Should be the Role of State Governments?

State governments' fiscal health has always been more cyclical than the federal government's. States have experienced several recessions since World War II, but the Great Recession, though economists tell us is officially over, is different. It's different because of the length of time the fiscal crisis has lasted and the simultaneous negative impact it's had on states' largest revenue streams -- personal income, property and sales taxes. Rainy Day funds have been exhausted and almost all the budget gimmicks have been used. The unprecedented number of new governors that will take office after the November elections will be forced to make some hard decisions about the future viability of many state programs. That leads to a bigger question. What should be the role of state government?

GovManagement.com posted a link this week to a Denver Post article entitled, "DU Study Tackles State Governments' Roles in the Future" that got me thinking about the role of state government in our multi-tiered system of governance. Any state government watcher knows the balance of power between state governments and the federal government swung the feds way during the Bush Administration. Many called the then Republican-led Congress the Imperial Congress.

President Obama promised states a broader role in shaping local policy, but that hasn't turned out to be the case. A recent NewsWeek article said, "the administration has treated states not so much as incubators of federal policy but as agents of it." And that sums up the situation quite well. The current Administration's style might be less imperialistic but they are coaxing state government behavior using contests for federal funding or the strings attached to economic stimulus cash. Gone are the days when states had the flexibility and the financial wherewithal to be laboratories for policy innovation.

The loss of innovation is noted by GovWin each year when we analyze governors' state of the state addresses. A decade ago, these speeches were, to pardon the pun, all over the map in terms of priorities and policy. Now most of them are similar regardless of the governors' political affiliation.

In some cases, states are their own worst enemy, especially when their budgets are structurally unsound with no relationship between spending and incoming revenues. But no matter the reason, 2011 might be a unique time in history when we start a national conversation about the role of state government. If such a conversation gets started next year, it will certainly accelerate in 2012 during the presidential election season. What might be up for grabs? Should the current federal-state partnership for Medicaid change so that it is strictly a federal program like Medicare? Which level of government is best suited to successfully educate our children and adult learners so that the nation stays competitive in a global economy? Is it time to have a national police force instead of the patchwork of agencies we have today? Should licensing and regulation for certain professions be federalized to make it easier to catch those who skip from jurisdiction to jurisdiction to avoid punishment? The list of possibilities is almost endless.

GovWin's Take

The possibility of the federal government taking over state program wholesale may not be on the immediate horizon, but that doesn't mean federal government vendors shouldn't start paying attention to the opportunities such a takeover could present. On the shorter-term front, opportunities for state and local government vendors still exist. They're just not always in the usual places.

  • Between 1979 and 2007 state budgets grew at an average rate of 6.5% annually. Expect a new normal for average budget growth, perhaps only 3% to 4%. States will closely question vendors about the price of their products, services or solutions. The strongest justifications will be the ability to cut costs or make government workers more efficient. Review your marketing materials to ensure they provide messaging that will resonate with your buyers. What worked yesterday won't today.
  • States will still want to grow their economies and prepare citizens to compete globally. A skilled workforce is essential and is such a valuable asset that governors will look beyond traditional educational institutions. Can your company help? As an example Microsoft has worked with several states to offer Microsoft training as part of larger worker re-training programs.
  • Solutions that can support flexible tax and revenue systems will be in demand. The government's ability to quickly change tax codes and implement those changes will be seen as critical by many governors. How can your company play in this part of the market?
  • Cooperative purchasing contracts will become more popular as a way to aggregate purchasing and receive the best value for each dollar spent. Make sure your company stays up to date on likely changes to state procurement laws.
  • We're likely to see directives for state agencies to inventory programs and functions and look for ways to share services. Silo-ed activities duplicated across several agencies are no longer affordable. K-12 education is a prime area that could make significant cuts by sharing services across districts. Can your company provide the consulting or analytical services that will be needed during the review process?
  • Anti waste, fraud and abuse programs are becoming more important to state policy makers. GovWin's recent report analyzes several opportunity areas for vendors to gain anti WFA business.
  • Over 60% of states' general fund revenue is spent on education at all levels and Medicaid. Politicians will examine core services, looking to "bend the curve" on cost increases. These will be unpopular decisions so Wisconsin's model for cutting Medicaid may become popular. Does your company have a system in place to monitor the upcoming changes to programs for which they provide solutions? Will those changes affect your business?
  • Expect incoming governors to create panels and commissions to look at streamlining government and evaluating government programs. The best groups will include members from industry. Consider getting your company involved to shape the debate.
  • Other than Medicaid, correctional costs are the fastest growing category in state budgets and 75% to 80% of those costs are personnel. Reducing prison populations and closing facilities without jeopardizing citizens is of great interest to policy makers. Does your company provide solutions that can effectively monitor offenders who may be released into the community? Or do you provide services that assist prisoners successfully re-enter society?
  • In higher education states are looking at several areas to cut costs. One of interest to technology vendors is greater use of technology to deliver course content.

Don't miss GovWin's upcoming State & Local MarketView 2011 webinar, featuring Doug Robinson, Executive Director, National Association of State Chief Information Officers (NASCIO); Alan Shark, Executive Director, Public Technology Institute (PTI); and Chris Dixon, Manager, State & Local Industry Analysis, GovWin.

Local Purchasers at NIGP’s Annual Conference Not Feeling Local Preference Policies

I had the pleasure of attending the National Institute of Governmental Purchasing's (NIGP) forum and expo in hot and sunny San Antonio on August 12-17, 2010. While temperatures neared 100 degrees each day, the 1000 government purchaser attendees threw themselves at the opportunity to take part in six days of courses, presentations, motivational speeches, and discussions in air conditioned conference rooms just beside the city's beautiful River Walk park.

The first session I attended centered on the experiences of Gregory Spearman, of the city of Tampa, and his conclusion that Tampa and its regional partners are encouraging value and efficiency-focused procurement that locally invests taxpayers' money without a local preference policy.

Tampa has spent the last several years working through a decision to implement a local preference policy. This is a common scenario for governments since elected officials often incorporate local preference promises into their platforms. Local purchasing staffs are frequently handed these priorities and are asked to create new processes to deliver. Spearman explained that Tampa was already doing a good job of spending money locally and did not need another layer of bureaucracy to ensure this goal is met.

So how do purchasing officials fulfill their role in economic development and balance that role with best value? The answer is often contingent on the definition of "local" within local preference and understanding where purchasing dollars are going. With that fundamental information in hand, the following pros and cons of a local preference policy must be weighed to determine the government's path.

Pros of a local preference policy:

  • Vendors with local experience, knowledge, and proximity can benefit
  • Investing locally enhances local economy
Cons of a local preference policy:
  • New rules may attempt to fix the unbroken; therefore, check data on spending distribution before changing or adding policies
  • Nonlocal vendors may be a net addition to local economy by hiring and renting/buying
  • Discourages competition, fewer responses, higher prices
  • Increases legal action through protest, etc.
  • Preference policies increase complexity of purchasing and become barriers to regional government cooperation

When examining spending behavior, it is also essential to separate construction spending from goods and services. Local government construction spending is generally contracted by a higher percentage of local contractors than non-construction goods and services and therefore expectations should be different.

Tampa resolved to not implement a new local preference policy upon suggestion of its procurement department. It was agreed by most that the city's current regional spending (supported by small business programs) is a solid balance of local investment and best value.

In the end, each state and local government has its unique subtleties around procurement preference policies, and vendors should be informed on where they fit in any government partner's goals and policies. Government purchasers should continue to push for the tools to perform the analysis necessary to support social and economic goals.

Texas to Rebid Data Center Contract

The Texas Department of Information Resources (DIR) will begin looking into rebidding the data center outsourcing contract it has with IBM Corporation. The contract, which was established almost four years ago, is worth $863 million over the course of seven years. At this time, IBM's day-to-day obligations remain the same; however, the state is now taking the lead with the project and a spokesman for DIR confirmed plans to rebid all of the services within the contract.

This shift in project management signals the likely end of the IBM contract, which was originally established to merge data centers of 28 state agencies into two streamlined and secure facilities. Originally, the project was touted as a way to save money and improve operations and security by housing the agencies' servers and mainframes in state-of-the-art facilities. This consolidation was to be finished by the end of 2009, but is only 12 percent complete at this time.

Both sides seem to be readying their respective cases should this end up in court. The state contends that the contract was violated several times with "chronic failures," perpetual deadlines missed, and the project constantly plagued by equipment failures and service complaints. On the other hand, IBM ran into problems from the start, which slowed progress and fueled frustration among state agencies. The company believes the data center was unpopular with the respective agencies and in turn, they either failed to cooperate or actively resisted the project. IBM also criticized the state for aging equipment and technology causing strain and delayed progress when trying to meet deadlines. At this time, all signs point to a termination of the contract by the state. This opportunity can be followed in the GovWin database here.

California Department of Health Care Services Releases Long-Anticipated RFP

Today, the California Health and Human Services Agency, Department of Health Care Services (DHCS) released the long-awaited request for proposals (RFP) for California Medicaid Management Information System (CA-MMIS) Design, Development and Implementation (DDI) Project Management Services. DHCS serves as the designated single state agency in California responsible in the administration of the approved, mandatory Medicaid program (Medi-Cal). The CA-MMIS handles payments to provide medical care to approximately 6.8 million Medi-Cal beneficiaries throughout the state. In May 2010, ACS State Healthcare, LLC (ACS) began work as the new fiscal intermediary (FI) agent. The FI is expected to take over the 30-year-old legacy system and plan, design, test and implement the replacement MMIS for California.

DHCS highlighted five major CA-MMIS contract project phases that the selected vendor should support:

  1. Business Rules Extraction
  2. Pharmacy online/Drug Utilization Review (DUR) DDI
  3. Treatment and Services Authorization Request Systems (TAR/SAR) DDI
  4. Third Party Liability/Automated Collection Management Systems (TPL/ACMS) DDI
  5. CA-MMIS Replacement System DDI

The CA-MMIS DDI Project Management Services contract term is 69 months, with a single one-year renewal option. Proposals for the procurement are due on September 30, 2010. GovWin is currently tracking the project here.

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