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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

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



Break 10:00AM – 10:15AM








Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM


(Financial Management and

Reporting and Analytics)

10:15AM – 11:15AM

Mark Mayo





Sarah Wilson, Subject Matter Expert

William Rudolph, Subject Matter Expert







Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM



(Program Management and

Infrastructure and Support

Functions)

11:15AM – 12:15PM

Mark Mayo





Shawn Dietrich, Subject Matter Expert









The Xerox Solution Advantages – Reusable

Assets from Oracle Consulting

March 4, 2013

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

A New Approach to Rules Oracle Policy Automation transforms policy documents…

March 4, 2013

Oracle Policy Automation

March 4, 2013

Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM








Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM





(Case Management and

Case Work and provider and

Business Partner

Management)

1:15PM – 2:45PM

Mark Mayo











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

Prevent, Detect, and Respond

October 18, 2012

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

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 of program delivery, and to look for and understand the root cause of problems identified

Detect

March 4, 2013

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 or officials with audit responsibilities

• Continue analysis and reporting on the effectiveness of fraud prevention programs

Respond

March 4, 2013

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

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

• 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

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

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 owner, 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

• 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 of the grant calculations

• Assessed overall program effectiveness and efficiency

Louisiana’s Road Home Program

October 18, 2012

Sample Analytics

October 18, 2012

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

Improper Influence, 2%

Check/Information Theft, 0%

Applicant Reported Information 5, 37%


Applicant Reported Information 3 , 40%



Other, 1%

Summary of Issues Identified by Investigative Work

Sample Fraud Detection Reports

March 4, 2013

• 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

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

Fraud Prevention Operations Office

October 18, 2012

Assess Risks

Design Program

Implement Evaluate

Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM








Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM







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


• 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

• 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

Contract Event Timeline

October 18, 2012

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

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

• 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

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

Innovations

October 18, 2012

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 or the O&M based on the specific innovations selected by the Department and other factors to be negotiated.

Cost Saving Opportunities

October 18, 2012

Agenda – Day 2

October 18, 2012



Break 10:00AM – 10:15AM








Thank You

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