City of Seattle SCERS PAS RFP No. 3881
City of Seattle
Request for Proposal
RFP No. 3381
TITLE:PENSION ADMINISTRATION SYSTEM FOR
SEATTLE CITY EMPLOYEES’ RETIREMENT SYSTEM (SCERS)
Closing Date & Time:February 17, 2015 at 4:00 pm Pacific
TABLE 1 – SOLICITATION SCHEDULE
All times arePacific
Estimated Dates
SolicitationSchedule / DateRFP Issued / November 26, 2014
Pre-Proposal Conference / December 11, 2014
10:00am PST
Deadline for Questions / December 30, 2015
4:00pm PST
Sealed Proposals Due to the City / February 17, 2015
4:00pm PST
Notification of Finalists / April 7, 2015
Oral Presentations & Software Demonstrations / May 11 – 14, 2015
Discovery Day / May18 – 21, 2015
Best & Final Offer (Optional) / June 1 – 4, 2015
Announcement of Successful Proposer(s) / June 8, 2015
Anticipated Contract Agreement / To Be Determined
Table 1: Solicitation Schedule
The City of Seattle reserves the right to modify this schedule at the City’s discretion.Notification of changes in the response due date would be posted on the City of Seattle’s website or as otherwise stated herein.
All times and dates are Pacific Standard or Daylight Time.
Mark the outside of the mailing package indicating RFP #3381.
By responding to this RFP, the proposer agrees that he or she has read and understands the requirements and all documents within this RFP package.
Table of Contents
1.Introduction
2.Purpose
3.Business Case
3.1.Business Drivers
3.2.Business Benefits
4.Objectives
4.1.General Objectives
4.2.Business and Functional Objectives
4.3.Technology Objectives
5.Business Background
5.1.SCERS Retirement Plan Overview
5.2.SCERS Governance and Organization
5.3.Process Improvement Initiatives
5.4.Relationship to the City of Seattle
5.5.Existing Systems and Operations
6.Minimum Qualifications
6.1.Minimum Qualifications
7.Mandatory Requirements
7.1.Mandatory Requirements
8.Project Scope and Requirements
8.1.Scope of Work
8.2.Implementation Scope
8.3.Data Conversion Scope
8.4.Functional and ECM Scope
8.5.Technical and Hosting Requirements
8.6.Hosting Options
8.7.Systems to be Replaced
8.8.System Interfaces
8.9.Minimum Licensing and Business Tax Requirements
8.10.Independent Contractor and City Space Requirements
8.11.Background Checks
9.Obtaining High-Security RFP Specification Materials
10.Instructions to Proposers
10.1.Proposal Procedures and Process
10.2.Communications with the City
10.3.Pre-Proposal Conference
10.4.Questions
10.5.Changes to the RFP and Addenda
10.6.Bid Blog
10.7.Receiving Addenda and Question and Answers
10.8.Proposal Submission Instructions
10.9.Proposal Delivery Instructions
10.10.No Reading of Prices
10.11.Offer and Proposal Form
10.12.Best and Final Offer (BAFO)
11.Contract Terms and Conditions
11.1.Prohibition on Advance Payments
11.2.Partial and Multiple Awards
11.3.Prime Contractor
11.4.Seattle Business Tax Revenue Consideration
11.5.Taxes
11.6.Inter-local Purchasing Agreements
11.7.Equal Benefits
11.8.Affirmative Efforts for Women and Minority Subcontracting
11.9.Insurance Requirements
11.10.Effective Dates of Offer
11.11.Proprietary Materials
11.12.Cost of Preparing Proposals
11.13.Readability
11.14.Proposer Responsibility
11.15.Changes in Proposals
11.16.Proposer Responsibility to Provide Full Response
11.17.Errors in Proposals
11.18.Withdrawal of Proposal
11.19.Rejection of Proposals, Right to Cancel
11.20.Incorporation of RFP and Proposal in Contract
11.21.Non-Endorsement and Publicity
11.22.Proposal Disposition
11.23.Ethics Code
11.24.Registration into City On-line Business Directory
12.Proposal Format and Organization
12.1.General Instructions
12.2.Preferred Paper and Binding
12.3.Proposal Format
12.4.Submission Checklist
13.Evaluation Process
14.Award and Contract Execution Instructions
15.Additional Attachments
15.1.Contract and Terms and Conditions
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
1.Introduction
The Seattle City Employees’ Retirement System (SCERS) offers a defined benefit pension plan providing lifelong retirement income, disability protection, death benefits, and pre-and post-retirement survivor benefits to eligible employees of the City of Seattle (“the City”) and a small number of grandfathered employees presently employed byKing County, Washington.The Seattle City Employees’ Retirement System serves approximately 16,500 members and manages approximately $2.5 billion in assets.
SCERS seeks to acquire and implement a software solution that encompasses the pension administration system (PAS) and electronic content management (ECM) functionality necessary to support current and future departmental business processes. The electronic content management (ECM) functionality may be delivered as part of an integrated system or a third-party solution.
SCERS seeks a vendor(s) that provides a proven and carefully structured approach to implementation.In this context, implementation refers to all efforts required to provide a complete and functioning system, including those that prepare SCERS to use it effectively. This includes technology and implementation planning, detailed design, interfaces, software integration, testing, training, data conversion, end-user and technical documentation, project management, and post-implementation warranty support. SCERSalso seeks pricing for ongoing maintenance and support.
SCERS is interested in receiving proposals for both on-premise (also known as “on-site”) and hosted solutions.Vendors can submit proposals for both delivery options.
SCERS desires to procure the most appropriate solution within its financial means from a qualifiedvendor at a firm, fixed price. SCERS is seeking the acquisition and implementation of all necessary software and hardware or five years of hosting services, implementation services, and data conversion, and five years of maintenance for a cost of no greater than $10,000,000million.
Although SCERS is requesting proposals for complete systems, including hardware, software, and services that include any and all third-party components, the City may choose not to acquire all optional system components.The City may also exercise the option to procure third-party components directly (e.g., PCs and monitors).
ContractAward:SCERS intends to award to the highest rankedvendor that will meet the business, technical, and contractual requirements as stated in the RFP and associated documents.Proposals that include multiple vendors will clearly identify onevendor as the prime contractor and all others as subcontractors.
2.Purpose
The pension administration system implementation is the cornerstone of a multi-year program to modernize the business processes, applications, and data essential for SCERS to meet its business goals. The largest technology project undertaken by SCERS, it will fundamentally change how SCERS conducts business.
A comprehensive analysis of SCERS operations performed in 2013 by Linea Solutions, a leading public pension industry consultant, concluded that the technology used by SCERS lacks basic functionality and is significantly behind the industry standard for comparable public retirement systems. SCERS recognizes the limitations and obsolescence of its current technology environment, which is comprised of a disparate set of data sources and computing systems. Many of SCERS business processes are heavily manual and rely upon information in the member’s physical file folder and spreadsheets for certain critical calculations. Data is often duplicated and cumbersome to maintain.
The purpose of this RFPis to select and implement a commercially available pension administration solutionthat will transform SCERS’ business operations from its current manual environment to one where key business processes are centralized, more automated and based on integrated data. SCERS seeks a system vendor with the software and implementation services; support structure; long-term viability; and commitment to its product, industry, and client base toprovide and sustain a long-term solution for SCERS.
SCERS seeks to enter into a long-term business relationship with a PASvendor that:
2.1.1.Has a history of successful implementation of comparable projects with agencies of similar size and complexity as SCERS.
2.1.2.Has a long-term commitment to the pension administration system business and long-term viability as a company.
2.1.3.Includes integrated electronic content management (ECM) functionality, either as a tightly integrated third-party application or a component of the PAS software.
2.1.4.Has a robust, proven methodology and qualified staff to successfully plan, manage, and execute data conversion from multiple sources including image and index data from an interim ECM system.
2.1.5.Has a product enhancement strategy for both software functionality and architecture that will keep it current with industry trends, standards, compliance, and regulations without the need for customization by SCERS.
2.1.6.Can provide an efficient and proven set of implementation services to ensure SCERS leverages the capabilities of the software to implement new business processes and achieve its business goals.
2.1.7.If providing a hosted solution, will have the staffing and facilities to support SCERS security, performance, availability, reliability, disaster recovery, business continuity, and operational requirements for the long term.
2.1.8.Provides high quality, responsive software maintenance and support services for the installed system.
3.Business Case
3.1.Business Drivers
In November 2013, the SCERS Board of Administration approved issuing an RFP to acquire a new pension administration system.The system was justified based on the following business drivers:
3.1.1.The need to reduce or eliminate the current over-reliance on paper-based processes and duplicate manual data entry since they are inefficient, inconsistent, and inherently more prone to human error.
3.1.2.The needto respond to legislative changes such as potential federal changes to tax rules.
3.1.3.The ability toimplementmultiple tiers and plans in the future if needed.
3.1.4.The lack of critical functionality due to reliance on data from disparate sources: databases, spreadsheets, paper files, microfiche, etc.
3.1.5.The need to improve the responsiveness, quality, and range of services provided to SCERS members, such as timely and accurate benefit estimates and more robust retirement “what if” analysis and planning options.Current benefit estimates are manual andlabor intensive, and they take six to eight weeks to deliver.
3.2.Business Benefits
SCERS expects the following benefits from this project:
3.2.1.Consistent application of SCERS policies, procedures, and calculations for SCERS members enforced by the PAS system.
3.2.2.Ensured accuracy of processing results.
3.2.3.Improved security, data integrity, and internal controls.
3.2.4.Flexibility to support multiple tiers and plans should the plan sponsor desire this capability in the future.
3.2.5.Reduced processing times and improved service levels from weeks to minutes.
3.2.6.A member portal that will provide self-service offerings for members, including the ability to perform “what if” analysis on retirement options.
3.2.7.A robust disaster recovery solution for critical member data and functionality.
4.Objectives
In order to address thesebusiness drivers and achieve these benefits,SCERS has identified the following key objectives for this project:
4.1.General Objectives
4.1.1.Select a pension administration systemwith the best balance offunctionality, quality,implementation services, and cost of ownership.
4.1.2.Select a pension administration systemthat will serve SCERS well for at least the next 15 years.
4.1.3.Successfully implement a qualitysystem on time, on budget, and as soon as realistically possible. SCERS expects the implementation to be completed within 36 months with a one-year warranty and stabilization period.
4.1.4.Implement a solution that is intuitive to use and embraced by SCERS staff.
4.2.Business and Functional Objectives
4.2.1.Improve the timeliness, accuracy, and efficiency of SCERS business processes through the reduction or elimination of the reliance on manual, paper-based calculations and duplicate data entry.
4.2.2.Streamline and improve process workflows; centralize and integrate the current multiple, disparate data sources into the PAS, including image content.
4.2.3.Enable SCERS to readily respond to legislative changes, such as federalchanges to tax rules.
4.2.4.Provide the plan sponsor with the capability to offer multiple tiers and plans in the future if needed.
4.2.5.Improve the responsiveness, quality, and range of services provided toSCERS members, such as timely and accurate benefit estimates and more robust retirementplanning options.
4.2.6.Providemembers with an intuitive, well-design member portal to initiate member processes, calculate benefit estimates, andupdate demographic data.
4.2.7.Greatly reduce the use of paper documents throughout the office, including by initiating a scanning and electronic workflow process for all member communications.
4.2.8.Implement a system with robust internal controls and a configurable business rules engine to fully comply with all plan rules and regulations andIRS guidelines.
4.2.9.Provide a robust set of reporting capabilities to support management decision making and reconciliation.
4.3.Technology Objectives
4.3.1.Implement PAS functionality and interfaces to allow SCERS to better utilize payroll source data and successfully transfer retiree payroll setup and maintenance from the City’s EV5 payroll system to the new PAS.
4.3.2.Purchase a commercially availablesystem that provides the stability, availability, and reliability necessary while conforming to SCERS hardware, software, and security needs. The proposed solution may be provided as an on-site or hosted solution.
4.3.3.Provide a robust disaster recovery solution for critical member data and functionality.
4.3.4.Create a bi-directional interface with the City of Seattle to receive active member information and send retiree payroll information to the City’s Human Resource Information System(HRIS) for payroll processing.
4.3.5.Provide functionality such as general ledger, payroll processing, and the ability to directly interface with ADP that are out-of-scope for the PAS implementation, but whichposition SCERS to assumethesebusiness processes in the future if necessary.
5.Business Background
5.1.SCERS Retirement Plan Overview
SCERS offers a defined benefit plan that provides retirement benefits based on age at retirement, salary, and years of service.SCERS is currently a single-tier system with a single plan and plan sponsor.The plan sponsor is the City of Seattle. A key objective of the new system is to providethe City of Seattle with the ability to provide additional plan offerings in the future should it elect to do so.
Profile Element / DescriptionNumber of tiers / 1
Number of plans / 1
Number of plan sponsors / 1
Number of payroll feeds / 2: City of Seattle, andKing County Metro (for grandfathered former City employees)
Total number of active members(as of 12/31/2013) / 10,627
Number of Retired members (as of 12/31/2013) / 5,800
Number of King County contributing members / 60
Table2: SCERS Profile Elements
A brief summary of the SCERS retirement plan is provided for reference in Appendix D2: Retirement Plan Summary.For more detailed information, refer to the Seattle Municipal Codeand theSeattle City Employees’ Retirement System Handbook.
5.2.SCERS Governance and Organization
The Seattle City Employees’ Retirement System (SCERS) was established in 1929 by the City of Seattle to serve employees of the City. SCERS is codified in the City Municipal Code as Chapter 4.36. SCERS is administered by a seven-member Board of Administration (the Board) comprised of:
- The Seattle City Council’s Finance & Culture Committee Chair (Board President)
- The City of Seattle Finance Director
- The City of Seattle Personnel Director
- Two activeand one retired members of SCERS
- One at-large member (not an active employee or retiree) who is appointed by the other six Board members and who has no vested interest in SCERS
SCERS has a staff of 23 full-time employees.The current organizational structure of SCERS is shown in Figure 1 below. All SCERS employees will be users of the new PAS system with the exception of the SCERS investment team.
Figure 1: SCERS Organization Structure
5.3.Process Improvement Initiatives
Since the start of 2013, SCERS operations have undergone significant changes.In addition to providing significant improvements , it has provided the organizationwith valueable lessons in implementingnew technology. Over the past two years, SCERS has undertaken the following improvement initiatives:
5.3.1.A comprehensive review of current business processes and targeted business process redesign (BPR) on high-priority business functions, including the development of a robust set of requirements for the PAS.
5.3.2.Conversion and enhancement of the department’s current Retirement Information System (RIS) from RBASE 4.5+/DOS to Oracle 11g with an Access run time client. Enhancements include adding additional data fields to storedata from member files to an electronic form in preparation for data conversion.
5.3.3.Implementation of the City’s customer service request (CSR) system to provide basic queue management, track service requests, and gather member contact metrics.
5.3.4.Data assessment and data cleansing activities to improve the quality of SCERS’ electronic data.
5.3.5.Completion of a backfile conversion plan and requirements for a separate project to digitize SCERS’ member files.This project will occur in advance of or in parallel with the PAS implementation project.
5.4.Relationship to the City of Seattle
Though run by an independent Board of Administration and self-funded, SCERS is a department of the City of Seattle and is tightly integrated operationally with its plan sponsor, the City of Seattle.Many SCERS key business processes are supported by other City departments andsystems including:
- The Department of Information Technology (DoIT) for computing infrastructure(email; SharePoint; desktop, server, and network support; IT operations).
- Central Accounting and Payroll to process retiree payrolland interface with ADP.
- The City’s financial system for general ledger, accounts payable, accounts receivable, andpurchasing.
- Department of Finance and Administrative Services, Business Technology for SCERS Retirement Information System II (RIS II) application and database support.
- Treasury to process payments received by SCERS.
- The City’s CSR system to manage memberservice requests.
- City Purchasing and Contracting Services department for procurement of goods and services.
- The Office of the City Attorney for legal matters.
5.5.Existing Systems and Operations
For a description of the current systems environment, refer to Appendix D1: Data and Systems Environment.
6.MinimumQualifications
Using Appendix A2: Minimum Qualifications Response,vendorswill provide a written response that clearly shows compliance with the following minimum qualifications. Proposals submitted without this written response will be rejected as non-responsive.The City RFP Coordinator may choose to determine minimum qualifications by reading the Minimum Qualification Response document alone, so the submission should be sufficiently detailed to clearly demonstrate minimum qualifications without reference to any other material.