State of Michigan



State of Michigan

Request for Information

 

Integrated Unemployment Insurance System

 

April 21, 2010

 

Requesting Organization:

Michigan Department of Technology Management and Budget

 

Table of Contents

 

1      Introduction. 1

1.1       Objectives and Purpose. 1

1.2       Michigan Unemployment Insurance System Background. 1

1.3       Additional Information Sources. 3

2      Description of the Integrated UI System Project 3

2.1       Proposed Services to be Provided. 3

2.2       Site Selection. 4

2.3       Revenues and Delivery Model 4

3      Responding to this RFI 4

3.1       Introduction. 4

3.2       Submission of responses. 4

3.2.1        Freedom of Information Act 4

3.2.2        Electronic Copy of the RFI 5

3.2.3        Questions Regarding the RFI 5

3.2.4        Delivery of Responses. 5

3.2.5        Submission Due Date. 5

3.2.6        Limitations of the RFI 5

3.3       Development of Responses. 5

3.3.1        Completion of Response. 5

3.3.2        Respondent’s Costs. 6

3.3.3        Disposition of Responses. 6

3.4       Format of Response. 6

3.4.1        Overview of Response Format 6

3.4.2        Cover Letter 6

3.4.3        Solution Overview. 6

3.4.4        Response to Questions Format 6

3.4.5        Additional Information. 6

3.4.6        Copies. 7

4      RFI process and Schedule. 7

5      Appendix A – Questionaire. 7

1         Introduction

1.1             Objectives and Purpose

The State of Michigan Department of Technology, Management and Budget (DTMB) along with the Unemployment Insurance Agency (UIA) are approach planning information for its Unemployment Insurance (UI) technology initiative. This Request for Information (RFI) requests responses for information pertaining to UI services and products from vendors with proven experience in unemployment insurance. Using information obtained from this RFI and other UI sources, DTMB and UIA will prepare a more formal Request for Proposal (RFP) to be released in the near future soliciting UI vendors to assist the State in implementing a UI modernization and integration solution. UI integration vendors are encouraged to become familiar with the content presented below and demonstrate their interest in the upcoming RFP by responding to this general planning information request. Respondents to this RFI may be invited to give presentations on the services and or products related to information in this RFI.

 

This RFI is designed to:

•        Identify technology that may provide new or improved UI system benefits;

•        Gather preliminary estimates to “size-up” the project;

•        Invite respondents, at the sole discretion and judgment of DTMB/UIA, to demonstrate their products/services to the project team; and

•        Enable DTMB/UIA project team participants to see, first-hand, systems or prototypes for UI Tax and Benefit Systems.

1.2             Michigan Unemployment Insurance System Background

The State of Michigan (SOM), Department of Energy, Labor and Economic Growth (DELEG), Unemployment Insurance Agency (UIA), is responsible for disbursing Unemployment Insurance benefits to those workers who are eligible, and collecting taxes from employers as defined in the Michigan Employment Security Act.

 

Currently, UIA’s Information Technology systems used to administer Unemployment Insurance benefits, taxes and trust fund accounting are spread over several systems and platforms of varying ages. Development, maintenance, support and control have become more challenging as each new system adds a new level of complexity.   UIA needs its core businesses – Benefits, Tax, and Wages – along with several secondary systems including Adjudication to be able to data share, real time, across functions. UIA needs to have intelligent interfaces to enhance customer service and ease of use. UIA needs to have an efficient system that will reduce paperwork, provide real time data verifications and eliminate duplicate data entry. UIA seeks to have an integrated tax, benefit, adjudication, and appeals system, either through the application of new technology or leveraging existing technologies, which still needs to be determined.

 

UIA has four Remote Initial Claims Centers (RICC’s) that are located in Detroit, Grand Rapids, Lansing, and Saginaw, and are responsible for delivering benefit payments, adjudication, claim filing, and other services to Michigan’s unemployed workers. In addition, seven Problem Resolution Offices (PRO’s), located in Detroit, Marquette, Gaylord, Livonia, Saginaw, Grand Rapids, and Lansing, provide access to filing technologies and problem resolution staff. The support functions for the RICC’s and PRO’s are concentrated in the Detroit Cadillac Place location, as are the Tax Office functions including employer compliance, tax rates establishment, benefit charging, the collection of taxes, and Trust Fund accounting.

 

In order to establish the scale of the project, the vendor should be aware that in CY 2007 Michigan’s unemployment rate was 7.2% and UIA paid out nearly $1.8 billion in regular state and federal unemployment benefits.  For CY 2009 Michigan paid over $7.1 billion in benefits to 913,568 claimants, and had an average unemployment rate of 15.9%.  At 14.1%, Michigan currently has one of the highest unemployment rates in the country.   Consequently, in addition to regular UI Benefits, Michigan is paying out State Extended Benefits (EB) as well as federal Emergency Unemployment Compensation (EUC).  In addition, the claims load is anticipated to rise though CY 2010 resulting in increased benefit payouts through CY 2011.  Michigan has 213,495 employers registered in the unemployment system.

 

UIA uses a variety of applications to deliver services and the new system should combine the service delivery applications into one integrated whole. The UI System Integration project consists of technology and business initiatives that must be seamlessly and effectively integrated to deliver one comprehensive and successful enterprise solution. 

 

While the majority of the core UIA system resides in a mainframe environment, UIA has implemented several remote, self-service applications for use by its external customers.  These remote applications currently use server-based applications to access Oracle databases, which in turn use Websphere MQ messaging or FTP to transfer and update the OS390 mainframe IMS database. UIA uses two separate IVR systems (one connected to the mainframe IMS and one to Oracle databases) to gather claims data, and passes some of these calls to a PBX and ACD system relying on intelligent routing. While the majority of the data processing transactions occur in the mainframe environment, the data entry points (where UIA interacts with their internal and external customers) have increasingly relied on new technologies. These processes need comprehensive review and integration, in an environment that can meet UIA service delivery level needs.

1.3             Additional Information Sources

Not Applicable

2         Description of the Integrated UI System Project

DTMB, in conjunction with the Unemployment Insurance Agency, is seeking to replace legacy automated applications with integrated applications capable of processing the UI business volumes and transactions presented above. These business processes and automated applications must adhere to stringent Federal and State UI processing requirements. DTMB/UIA are currently completing a more comprehensive UI integration requirements definition that will be used within the upcoming UI Request for Proposal (RFP).

 

The UIA legacy system was modified and patched to accommodate changing business rules, including the addition of many server based web applications to support claimant and employer self service. In the last few years, an imaging system has been introduced to reduce paperwork, and Remote Initial Claims Centers (RICCs) and Interactive Voice Response (IVR) systems have been established to improve customer service and make benefit operations more efficient. The core UI Tax, Wage and Benefit systems are no longer viable for ongoing maintenance and enhancement.

2.1             Proposed Services to be Provided

DTMB seeks creative, high-level responses to the RFI components. DTMB is interested in receiving the following information from each RFI respondent:

•        Respondent’s qualifications and experience necessary to provide an integrated system or systems for UI Tax, Wage and Benefits operations.

•        Respondents are asked to describe their solution approach, e.g. Transfer, Framework, COTS, custom, etc.

•        Respondent’s should include information detailing proposed approaches to satisfy the following project objectives:

o       Implement a new UI solution, including identifying the supporting software and hardware and indicating which, if any, were used in other states;

o       Configure new components to satisfy Michigan’s UI business (approx. ~2,900) and technology (approx. ~500) requirements;

o       Test and validate newly implemented and configured UI business and technology components;

o       Adjust business processes, revise user desk procedure, and install online helps to coordinate with new UI frameworks, based upon prior experience in other projects;

o       Convert legacy UI data into the new solution and indicate if the information is based on experience in other states;

o       Provide disaster recovery capability;

o       Provide staff orientation, training, and documentation for end users and technical staff; and,

o       Launch the final solution into production.

2.2             Site Selection

The application will utilize the State network and telecommunications infrastructure and will be hosted in a one of the State’s secured data centers.  While this is the preferred option, it is not presented to eliminate proposed solutions, as the state will consider solutions hosted at a vendor site.  Vendors are encouraged to review the current state Enterprise Architecture document which can be found at:  dtmb for an overview of state technology platforms, environmental criteria and standards.      

2.3             Revenues and Delivery Model

Not Applicable     

3         Responding to this RFI

3.1             Introduction

Interested organizations may respond in whole, or they may confine their comments and response to specific areas of expertise. The potential size and scope of this project may require strategic teams be formed to respond to the diversity of the services proposed.

3.2             Submission of responses

3.2.1       Freedom of Information Act

All documentation provided in the response to this RFI is subject to the provisions of the Freedom of Information Act, 1976 PA 442, MCL 15.231, et seq.

3.2.2       Electronic Copy of the RFI

An electronic copy of the RFI is available on the Internet at

. It is recommended that all potential contractors also register for future procurement opportunities and announcements on this site.

3.2.3       Questions Regarding the RFI

Organizations requiring clarification of the intent or content of this RFI, the RFI process or the project in general, may request clarification by submitting questions, clearly labeled as “Integrated UI System Project RFI – Question,” to the delivery contact listed in Section 3.2.4. No verbal or other form of inquiry will be received. Frequently asked questions and responses will be posted online at: .

3.2.4       Delivery of Responses

Respondents are invited to provide responses to the Questionnaire provided as Appendix A to this RFI. Respondents are requested to submit one electronic response delivered to kuchj@ and six (6) printed copies of submissions delivered to:

 

Mason Building

Attn: Jacque Kuch

530 West Allegan, 2nd Floor

Lansing, MI 48913

 

The responses are to be received on or before the time and date specified in Section 3.2.5.

3.2.5       Submission Due Date

Respondents are requested to make their submissions before 3:00 p.m., May 12, 2010.

3.2.6       Limitations of the RFI

The submission of a response does not constitute any commitment on behalf of the respondent. Also, the respondent’s right to compete during any subsequent RFP process is not contingent on the submittal of a response to this RFI.

3.3             Development of Responses

The responses should be completed in conformance with the following.

3.3.1       Completion of Response

Interested organizations may respond in whole as a prime contractor, or they may confine their responses to areas of specific capability. Responses should be detailed, but straightforward and concise, providing input and information to meet the objectives in Section 1.

3.3.2       Respondent’s Costs

Neither the State of Michigan, DTMB, UIA nor any other state agency is liable for any expenses incurred by any respondent related to preparing a response to this RFI and shall be held harmless and free from any and all liability, claims, or expenses whatsoever incurred by, on behalf of any person or organization responding to this RFI.

3.3.3       Disposition of Responses

All material submitted in response to this RFI will become the property of the State of Michigan.

3.4             Format of Response

3.4.1       Overview of Response Format

The response shall be concise and contain only relevant information, and shall be structured in the following sections:

 

•        Section 1 – Cover Letter

•        Section 2 – Solution Overview

•        Section 3 – Response to Questions

•        Section 4 – Additional Materials, Information or Comments

3.4.2       Cover Letter

The response should have a cover letter signed by an authorized member of the respondent’s firm whom the State may contact for any resulting oral discussions or questions.

3.4.3       Solution Overview

Please provide at a high-level a summary of your business and provide a brief outline and overview of the core services offered.

3.4.4       Response to Questions Format

Please respond to each question in Appendix A by first listing the question and immediately following it with your response.

3.4.5       Additional Information

If a respondent wishes to clarify or augment an answer with the provision of additional information this shall be included as an attachment to Section 2. Additional information not related directly to a specific question shall be included as a separate Section 3.

3.4.6       Copies

Michigan requests six (6) printed copies of responses and one electronic version (utilizing Office 2003), delivered to the State as indicated in Section 3.2.4. Submissions should, where possible, use recycled paper.

4         RFI process and Schedule

The table below represents the Integrated Unemployment Insurance System Project RFI process and schedule.

 

Milestone Date

Issue RFI                                                             April 21, 2010

Written Responses to RFI Due May 12, 2010

Solutions Demos w/Selected Respondents Begins approximately May 24, 2010

 

Assuming market interest and available resources, it is the State’s intention that a formal procurement process will follow. At this point, no further information is available regarding the schedule for subsequent phases of this project. Interested parties are encouraged to register and check for future information.

5         Appendix A – Questionaire

Respondents to this RFI are requested to provide written responses to the questions, using the structure outlined in Section 3.4 of the RFI. Following receipt and review of these submissions, respondents may then be invited to provide oral presentations.

 

Questions

DTMB/UIA requests written responses to the following questions:

 

1.       What is your approach to delivering an integrated system to provide UI Tax, Wage and Benefits functions in the state of Michigan that complies with state and federal regulations and laws?

 

2.      How would you address human interface requirements, including the layout of computer screens for employer, claimant, and staff data entry and retrieval, IVR scripts, and the forms that will be used by claimants, employers, staff, and other partners?

 

3.      What is your approach to workflow? Include a discussion of features such as automated workflow, manual control of workflow, handling of queues, and monitoring of workflow efficiency.

 

4.      How would your proposed system handle correspondence - incoming and outgoing? Examples of requirements in this area include provisions for electronic as well as paper correspondence, logging correspondence, tracking action on correspondence, and categorizing, indexing, and filing of correspondence.

 

5.      How would your proposed system generate reports? This includes designing, preparing, and routing reports and should include a discussion of other types of reports such as periodic reports, customized reports as well as triggering of automated report generation and distribution.

 

6.      How would your proposed system address record archiving? Please address how the system will include rules for retention of information, accessibility of the information, and requirements for media, retrieval time, and tools required for retrieval.

 

7.      How does your proposed system perform audit tracking?  Is one audit log for all changes or specific logs for designated activities?

 

8. How does your proposed system implement business rules? Please address how the business rules are implemented and how the rules are updated. What level of technology skills/knowledge is required to change the rules?

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