Request for Proposal (RFP) Event ID: EVT0001929

State of Kansas Request for Proposal of 168

Request for Proposal (RFP)

Event ID: EVT0001929

NOTE: This complete document can be viewed at our web site: http://da.ks.gov/purch/Contracts/bids.aspx

Requisition: 0000004219 Procurement Officer: Tami Sherley Replaces Contract: None Telephone: 785-296-3122 Date Released: December 18, 2012 E-Mail Address: [email protected] Web Address: http://da.ks.gov/purch Closing Date: January 23, 2013, 2:00PM Item: Kansas Commercial Registration, Alcoholic Beverage Control, Fuel Tax System (K-CRAFTS)

A web-based, integrated system to replace KDOR’s International Registration Program (IRP), and International Fuel Tax Agreement (IFTA) systems, to develop the customization for the Commercial Vehi-cle Fee defined in H.B. 2557, replace the alcoholic beverage licensing system, seized property inventory, other taxes (Liquor Drink, Liquor Enforcement, Drug and Gallonage) replace the systems that track and report on the liquor and cigarette tobacco enforcement activities, administrative and criminal prosecution and case management for these programs, accounting and distribution for these programs and their as-sociated interfaces.

Preference will be given to Proposers who provide reasonable bids for adding on additional Motor Fuel taxes, cigarette tax and licensing, plus other tax types to their backbone system.

Agency: Department of Revenue Location: Topeka, Kansas Term of Contract: Please see RFP Section 2.8. Expression of Interest Form: The Expression of Interest Form is included in RFP Section 6. Please follow the instructions on the form.

RFP Definitions: Throughout this RFP the following terms shall be used to designate mandatory and non-mandatory requirements:

MAY, SHOULD, CAN, OPTIONALLY: Denotes desirable, non-mandatory language.

MUST, WILL, SHALL: Denotes mandatory language; a requirement that must be met without alteration.

Reference Forms: Proposers are advised to pay particular attention to RFP Section 6. Immediate and timely action is required concerning references.

READ THIS REQUEST CAREFULLY Failure to abide by all of the conditions of this Request may result in the rejection of a proposal.

It is the Proposer’s responsibility to monitor the Procurement and Contracts web site at http://da.ks.gov/purch/ on a regular basis for any changes/addenda or any changes to the RFP Schedule of Events.

http://da.ks.gov/purch/Contracts/bids.aspx�

mailto:[email protected]�

http://da.ks.gov/purch�

http://da.ks.gov/purch/�


Table of Contents

PREFACE: RFP ORGANIZATION ................................................................................ 6

RFP SECTION 1: PURPOSE, BACKGROUND AND REQUIREMENTS ...................... 7

1.1 RFP PURPOSE ............................................................................................................................... 7

1.2 K-CRAFTS PROJECT BACKGROUND .......................................................................................... 8

1.3 PROGRAM DESCRIPTION AND REQUIREMENTS - IRP ........................................................... 10

1.3.1 IRP Program.................................................................................................................................... 10 1.3.2 IRP Requirements ........................................................................................................................... 11 1.3.3 IRP Internal and External Interface Requirements .......................................................................... 12 1.3.4 IRP Existing System Description .................................................................................................... 12 1.3.5 IRP Current Personnel Requirements ............................................................................................. 14 1.3.6 IRP Current System Software ......................................................................................................... 15 1.3.7 IRP Current System Hardware and Infrastructure .......................................................................... 15 1.3.8 IRP File Layouts and Conversion Requirements ............................................................................ 16 1.3.9 IRP Solution Description ................................................................................................................ 16 1.3.10 IRP Electronic and Paper Payments, Accounting and Distribution ................................................ 17

1.4 PROGRAM DESCRIPTION AND REQUIREMENTS - IFTA ......................................................... 17

1.4.1 IFTA Program ................................................................................................................................. 17 1.4.2 IFTA Requirements......................................................................................................................... 20 1.4.3 IFTA Internal and External Interface Requirements ....................................................................... 20 1.4.4 IFTA Existing System Description ................................................................................................. 21 1.4.5 IFTA Current Personnel Requirements ........................................................................................... 22 1.4.6 IFTA Current System Software ...................................................................................................... 23 1.4.7 IFTA Current System Hardware and Infrastructure ........................................................................ 23 1.4.8 IFTA Current File Layouts and Conversion Requirements ............................................................ 23 1.4.9 IFTA Solution Description .............................................................................................................. 23 1.4.10 IFTA Electronic and Paper Payments, Accounting and Distribution .............................................. 24

1.5 PROGRAM DESCRIPTION AND REQUIREMENTS - ABC LIQUOR LICENSING ...................... 24

1.5.1 Liquor Licensing, Enforcement, Case Management and Licensee Administrative Action ............. 24 1.5.2 Liquor Licensing, Enforcement, Case Management (CM) and LAA Requirements ...................... 28 1.5.3 Liquor Licensing, Enforcement, CM and LAA Internal and External Interface Requirements ..... 28 1.5.4 Liquor Licensing, Enforcement, Case Management and LAA Existing System Description ......... 29 1.5.5 Liquor Licensing, Enforcement, CM and LAA Current Personnel Requirements ......................... 41 1.5.6 Liquor Licensing, Enforcement, Case Management and LAA Current System Software .............. 41 1.5.7 Liquor Licensing, Enforcement, CM and LAA Current System Hardware and Infrastructure ...... 42 1.5.8 Liquor Licensing, Enforcement, CM and LAA File Layouts and Conversion Requirements ........ 42 1.5.9 Liquor Licensing, Enforcement, Case Management and LAA Solution Description ..................... 43 1.5.10 Liquor Licensing Electronic and Paper Payments, Accounting and Distribution ........................... 44

1.6 PROGRAM DESCRIPTION AND REQUIREMENTS – LIQUOR TAXES .................................... 44

1.6.1 Liquor Drink and Liquor Enforcement Tax Program ..................................................................... 44 1.6.2 Liquor Tax Requirements ............................................................................................................... 45 1.6.3 Liquor Tax Internal and External Interface Requirements .............................................................. 45 1.6.4 Liquor Tax Existing System Description ........................................................................................ 45 1.6.5 Liquor Tax Current Personnel Requirements .................................................................................. 46 1.6.6 Liquor Tax Current System Software ............................................................................................. 46


1.6.7 Liquor Tax Current System Hardware and Infrastructure ............................................................... 46 1.6.8 Liquor Tax Current File Layouts and Conversion Requirements ................................................... 47 1.6.9 Liquor Tax Solution Description .................................................................................................... 47 1.6.10 Liquor Tax Electronic and Paper Payments, Accounting and Distribution..................................... 47

1.7 PRGRAM DESCRIPTION AND REQUIREMENTS – CIGARETTE AND TOBACCO................... 47

1.7.1 Cigarette and Tobacco Program ...................................................................................................... 47 1.7.2 Cigarette and Tobacco Product and Case Management Requirements ........................................... 48 1.7.3 Cigarette and Tobacco Product Interface Requirements ................................................................. 49 1.7.4 Cigarette and Tobacco Product Existing System Description ......................................................... 49 1.7.5 Cigarette and Tobacco Product Current Personnel Requirements .................................................. 51 1.7.6 Cigarette and Tobacco Product Enforcement Current System Software......................................... 51 1.7.7 Cigarette and Tobacco Product Enforcement Current System Hardware and Infrastructure .......... 51 1.7.8 Cigarette and Tobacco Product Enforcement File Layouts Conversion Requirements .................. 51 1.7.9 Cigarette and Tobacco Product Enforcement Solution Description ................................................ 51 1.7.10 Cigarette and Tobacco Electronic and Paper Payments, Accounting and Distribution ................... 51

1.8 PROGRAM DESCRIPTION AND REQUIREMENTS – DRUG TAX AND SEIZED PROPERTY ... 52

1.8.1 Drug Tax, Seized Property and Case Management Program .......................................................... 52 1.8.2 Drug Tax, Seized Property and Case Management Requirements .................................................. 54 1.8.3 Drug Tax, Seized Property and Case Management Interface Requirements ................................... 55 1.8.4 Drug Tax, Seized Property and Case Management Existing System Description .......................... 55 1.8.5 Drug Tax, Seized Property and Case Management Current Personnel Requirements .................... 55 1.8.6 Drug Tax, Seized Property and Case Management Current System Software ................................ 55 1.8.7 Drug Tax, Seized Property and CM Current System Hardware and Infrastructure ........................ 55 1.8.8 Drug Tax, Seized Property and CM Current File Layouts and Conversion Requirements ............. 55 1.8.9 Drug Tax, Seized Property and Case Management Solution Description ....................................... 55 1.8.10 Drug Tax, Seized Property Electronic and Paper Payments, Accounting and Distribution ............ 55

1.9 REQUIREMENTS APPLICABLE TO ALL APPLICATIONS .......................................................... 55

RFP SECTION 2: SCOPE AND APPROACH ............................................................. 56

2.1 TESTING PLAN ............................................................................................................................. 56

2.2 RESOURCE REQUIREMENTS .................................................................................................... 57

2.3 TRAINING PLAN ............................................................................................................................ 57

2.4 ON-GOING MAINTENANCE ......................................................................................................... 57

2.5 INFORMATION SECURITY ........................................................................................................... 57

2.6 CONFIDENTIALITY ....................................................................................................................... 58

2.7 GENERAL AND ADMINISTRATIVE INFORMATION .................................................................... 58

2.8 CONTRACT AND TERM ............................................................................................................... 65

2.9 SOLUTION SCOPE ....................................................................................................................... 66

2.10 IMPLEMENTATION AND INTEGRATION SERVICES SCOPE ................................................ 66

2.11 ORGANIZATIONAL SCOPE ....................................................................................................... 68

2.12 RESOURCES TO BE PROVIDED ............................................................................................. 68

2.13 FACILITIES AND EQUIPMENT TO BE PROVIDED BY THE STATE ........................................ 68

RFP SECTION 3: PROPOSAL RESPONSE TECHNICAL ......................................... 70

3.1 SUBMISSION OF PROPOSALS ...................................................................................................... 70 3.2 PROPOSAL / RFP RESPONSE INSTRUCTIONS ........................................................................... 71


3.3 TECHNICAL PROPOSAL OVERVIEW .......................................................................................... 71 3.4 TECHNICAL PROPOSAL TITLE PAGE ......................................................................................... 72 3.5 TECHNICAL PROPOSAL TRANSMITTAL LETTER ................................................................... 72 3.6 TECHNICAL PROPOSAL RFP ADDENDA ................................................................................... 73 3.7 TECHNICAL PROPOSAL TABLE OF CONTENTS ...................................................................... 73 3.8 TECHNICAL PROPOSAL TAB 1 – EXECUTIVE SUMMARY .................................................... 73 3.9 TECHNICAL PROPOSAL TAB 2 – MANDATORY QUALIFICATIONS .................................... 74 3.10 TECHNICAL PROPOSAL TAB 3 – ADMINISTRATIVE .............................................................. 74 3.11 TECHNICAL PROPOSAL TAB 4 – PROPOSER CORPORATE INFORMATION ....................... 75 3.12 TECHNICAL PROPOSAL TAB 5 – SUBCONTRACTOR CORPORATE INFORMATION ........ 76 3.13 TECHNICAL PROPOSAL TAB 6 – LICENSED PRODUCT INFORMATION ............................. 76 3.14 TECHNICAL PROPOSAL TAB 7 – IMPLEMENTATION AND INTEGRATION SERVICES ... 82 3.15 IMPLEMENTATION ASSUMPTIONS ............................................................................................ 82 3.16 DETAILED DESCRIPTION OF SERVICES TO BE PROVIDED .................................................. 83 3.17 TECHNICAL PROPOSAL TAB 8 – REFERENCES ....................................................................... 97 3.18 TECHNICAL PROPOSAL TAB 9 – PROJECT STAFF AND ORGANIZATION .......................... 98 3.19 TECHNICAL PROPOSAL TAB 10 – ALTERNATIVE SERVICES APPROACH ......................... 99 3.20 TECHNICAL PROPOSAL APPENDIX 1: FUNCTIONAL REQUIREMENTS ............................ 99 3.21 TECHNICAL PROPOSAL APPENDIX 2: TECHNICAL REQUIREMENTS ............................. 100 3.22 TECHNICAL PROPOSAL APPENDIX 3: DATA WAREHOUSE AND REPORTING.............. 100 3.23 TECHNICAL PROPOSAL APPENDIX 4: MARKETING MATERIALS .................................... 101 3.24 TECHNICAL PROPOSAL APPENDIX 5: EXCEPTIONS ........................................................... 102 3.25 TECHNICAL PROPOSAL APPENDIX 6: SAMPLE STATEMENT OF WORK (SOW) ........... 102

RFP SECTION 4: PROPOSAL RESPONSE COSTS ................................................ 102

4.1 SUBMISSION OF PROPOSALS - COSTS..................................................................................... 102 4.2 COST PROPOSAL CONTENT ....................................................................................................... 103 4.3 COST PROPOSAL TITLE PAGE ................................................................................................... 103 4.4 COST PROPOSAL TAB A: TABLE OF CONTENTS .................................................................. 104 4.5 COST PROPOSAL TAB B: EXECUTIVE SUMMARY ............................................................... 104 4.6 COST PROPOSAL TAB C: ADMINISTRATIVE REQUIREMENTS ......................................... 104 4.7 COST PROPOSAL TAB 1: SCHEDULE 1 – SUMMARY PRESENTATION ............................. 104 4.8 COST PROPOSAL TAB 2: SCHEDULE 2 – TOTAL COST SUMMARY .................................. 105 4.9 COST PROPOSAL TAB 3: SCHEDULE 3 – DELIVERABLES PAYMENT .............................. 105 4.10 COST PROPOSAL TAB 4: SCHEDULE 4 – STAFFING PLAN BY ACTIVITY ....................... 106 4.11 COST PROPOSAL TAB 5: SCHEDULE 5 – STAFFING PLAN BY POSITION ........................ 106 4.12 COST PROPOSAL TAB 6: SCHEDULE 6 – TRAINING BREAKDOWN .................................. 106 4.13 COST PROPOSAL TAB 7: SCHEDULE 7 – ENHANCEMENTS AND MODIFICATIONS ..... 106 4.14 COST PROPOSAL TAB 8: SCHEDULE 8 – OTHER COSTS ..................................................... 106 4.15 COST PROPOSAL TAB 9: SCHEDULE 9 – LABOR RATES ..................................................... 107 4.16 COST PROPOSAL TAB 10: ESSENTIAL HARDWARE AND SOFTWARE COSTS ............... 107 4.17 COST PROPOSAL TAB 11: OPTIONAL SOFTWARE COSTS .................................................. 107

RFP SECTION 5: CONTRACT TERMS AND CONDITIONS .................................... 108

RFP SECTION 6: FORMS ......................................................................................... 142

EXPRESSION OF INTEREST FORM ....................................................................................................... 142 SIGNATURE SHEET ................................................................................................................................. 144 SUPPLIER DIVERSITY SURVEY FORM ................................................. Error! Bookmark not defined. TAX CLEARANCE FORM ....................................................................................................................... 145 CONTRACTUAL PROVISIONS ATTACHMENT .................................... Error! Bookmark not defined. CERTIFICATION REGARDING IMMIGRATION REFORM and CONTROL ...................................... 146 PROPOSED INTEGRATION SERVICES PROVIDER REFERENCE QUESTIONNAIRE ................... 149 PROPOSED SOFTWARE PROVIDER REFERENCE QUESTIONNAIRE ............................................ 153


***All appendices can be found at the following Link: http://da.ks.gov/purch/adds/EVT0001929-Appendices.zip

RFP APPENDIX 1: FUNCTIONAL REQUIREMENTS ............................................... 157

RFP APPENDIX 2: TECHNICAL REQUIREMENTS ................................................. 158

RFP APPENDIX 3: DATA WAREHOUSING AND REPORT REQUIREMENTS ....... 159

RFP APPENDIX 4: COST PROPOSAL SCHEDULES .............................................. 160

RFP APPENDIX 5: INTERFACE SYSTEM REQUIREMENTS .................................. 161

RFP APPENDIX 6: ADDITIONAL CONVERSION REQUIREMENTS ....................... 163

RFP APPENDIX 7: TABLES AND FILES ................................................................. 164

RFP APPENDIX 8: STATE OF KANSAS APPLICATION ARCHITECTURE QUESTIONNAIRE ...................................................................................................... 165

http://da.ks.gov/purch/adds/EVT0001929-Appendices.zip�


Preface: RFP ORGANIZATION

This RFP is organized in the following manner:

RFP Section 1: RFP Purpose, Background and Requirements: Contains an explanation of the RFP purpose, the project background, and information concerning existing applications for International Regis-tration Program (IRP), International Fuel Tax Agreement (IFTA), Alcoholic Beverage Control (ABC) licens-ing, enforcement, administrative action, prosecution, case management and miscellaneous taxes. It also contains mandatory Proposer qualifications, the RFP Schedule of Events, various Proposer instructions, and other items of interest to the Proposer.

RFP Section 2: K-CRAFTS Project Scope and Approach: Contains the contract and term information, and a summary of the solution scope, including core functional scope, other scope considerations, im-plementation and integration services scope, and organizational scope. Resources, facilities, and equip-ment to be provided by the State are also discussed.

RFP Section 3: Proposal Response Technical: Contains proposal submission information, and in-structions concerning how Proposers are to structure and format their proposals.

RFP Section 4: Proposal Response Costs: Contains proposal submission information, and instruc-tions concerning how Proposers are to identify and allocate costs to deliverables.

RFP Section 5: Contract Terms and Conditions: Contains several terms and conditions under which the Contractor shall perform the contract.

RFP Section 6: Forms: Contains the various forms that support the procurement process and the sub-mission of a proposal.

RFP Appendices:

RFP Appendix 1: Functional Requirements

RFP Appendix 2: Technical Requirements

RFP Appendix 3: Data Warehousing and Report Requirements

RFP Appendix 4: Cost Proposal Schedules

RFP Appendix 5: Interface System Requirements

RFP Appendix 6: Additional Conversion Requirements

RFP Appendix 7: Tables and Files

RFP Appendix 8: State of Kansas Application Architecture Questionnaire


RFP Section 1:

PURPOSE, BACKGROUND and REQUIREMENTS

1.1 RFP PURPOSE

This RFP solicits proposals for a web-based, integrated system to replace KDOR’s International Reg-istration Program (IRP), and International Fuel Tax Agreement (IFTA) systems, to develop the cus-tomization for the Commercial Vehicle Fee defined in H.B. 2557, replace the alcoholic beverage li-censing system, seized property inventory, other taxes (Liquor Drink, Liquor Enforcement, Drug and Gallonage) replace the systems that track and report on the liquor enforcement activities, enforce-ment and inspection activity of retailers, cigarette and tobacco (C/T) wholesalers and distributors, administrative and criminal prosecution and case management for these programs, accounting and distribution for these programs and their associated interfaces. Bid solicitations are also preferred to include all motor fuel taxes and cigarette and tobacco licensing and tax. The State is issuing this RFP to define the minimum product and service requirements, solicit pro-posals capable of meeting the product and service requirements, detail the solution requirements, de-tail the proposal requirements, outline the State’s process for evaluating proposed solutions, and to select a single Contractor to provide an integrated “customer focused” system. The new, integrated system must provide for more efficient customer service in a web-enabled prod-uct whereby applicants can apply for new and/or renewal of licenses, registrations or permits and make tax payments on-line through an electronic self-service submission process with one point of sign-on. It must allow for phased implementation of the programs so that modules can be added to the system throughout implementation and even after the project is complete including, but not limited to individual and business tax filings, payments and registrations. The state desires the option of us-ing its own programmers to add modules after implementation. Proposers are encouraged to bid this as an option. The system must also provide improved reporting for stakeholders, industry representatives, permit holders, licensees, and the legislature. The system must maintain accurate financial accounting (which includes accounts receivable and distribution of fees, fines and taxes. To achieve these goals, the State proposes to purchase a commercial off-the-shelf (COTS) software package to provide the required system integration. Through this RFP, the State seeks to buy the best services and prod-ucts at the most favorable competitive prices, and to give all qualified business entities an opportunity to bid to provide the desired products and services. The State desires to migrate from the IBM mainframe and IBM AS/400 that most of these applications currently reside on. Proposals shall address all the software licenses (including third party), annual maintenance, imple-mentation services, hardware and systems software, wide area network upgrade requirements, and post-implementation support services necessary to provide the desired solution. Only fixed price proposals will be considered. KDOR wants the ability to set priorities for order of implementation due to statutory deadlines this project must meet. However, proposers are asked to present recommendations and tailor bids for phased, modu-lar implementation and business process reengineering. It is also important to provide esti-mated costs of converting and adding on additional legacy tax types to the system after the project, as identified in the RFP, is completed.***********


The following terms are used to define the parties associated with this RFP:

“Vendor” is a prospective Proposer. “Proposer” is used to denote a Service Provider that submits a timely proposal in response to this RFP. The successful Proposer will function as the primary contractor for the project. “Service Provider” refers to an entity that provides services either as the Proposer or under the supervision of the Proposer as a subcontractor. “Contractor” is an individual, company, corporation, firm, or combination thereof with whom the State develops a contract for the procurement of goods or services. In this document, it is used to denote the Proposer that is awarded a contract as a result of this procurement. The Contractor will have full responsibility and liability for the completion of all deliverables. “Software Provider” refers to the entity offering the proposed software. The Software Provider cannot be a Proposer, but shall be a subcontractor to the Proposer, except in the case where the Software Provider acts as its own integrator or Service Provider. In this case, the Software Pro-vider can be a Proposer. The prohibited contracting arrangement is defined as a situation where the Software Provider is the Proposer (primary contractor) offering only its software without any integration services, with a third-party Service Provider subcontracted for the integration services. “Third Party Software Provider” is any entity that provides software and software-related services as part of the K-CRAFTS Project solution, other than the Software Provider.

Within the context of this RFP document, the term “Department” means the Kansas Department of Revenue. The term “State” generally refers to the Kansas Department of Revenue, but can, depend-ing on context, also mean the State of Kansas or any of its affiliates. Product and service requirements are addressed separately in this RFP. A proposal may include multiple Third Party Software Providers and multiple Service Providers, but must include one and only one Proposer; all other entities are considered subcontractors. Also, a proposal must include one and only one Software Provider.

1.2 K-CRAFTS PROJECT BACKGROUND

The programs will be described in priority order of implementation. The IRP rewrite and H.B.2557 re-quirements for commercial vehicle fees are most critical with an implementation due date of January 1, 2014. IFTA rewrite has an implementation due date of September 1, 2014. The third program is Alcoholic Beverage Control licensing and enforcement and cigarette and tobacco enforcement along with miscellaneous taxes and seized property inventory. The Department will want these applications converted and implemented as quickly as possible, but they do not have statutory deadlines for “go live.” All three (3) programs have an accounting and distribution of fees, fines or taxes module. These KDOR websites may assist vendors in understanding the current work processes.

IRP and IFTA http://www.ksrevenue.org/dmvmc.html

ABC http://www.ksrevenue.org/abc.html

Liquor Drink http://www.ksrevenue.org/forms-liqdrink.html

Liquor Enforcement http://www.ksrevenue.org/forms-liqenf.html

http://www.ksrevenue.org/dmvmc.html�

http://www.ksrevenue.org/abc.html�

http://www.ksrevenue.org/forms-liqdrink.html�

http://www.ksrevenue.org/forms-liqenf.html�


1.3


PROGRAM DESCRIPTION AND REQUIREMENTS - IRP

1.3.1 IRP Program Kansas law requires a new commercial vehicle fee to take affect January 1, 2014 that replaces the outdated Motor Carrier Property Tax. The commercial vehicle fee will apply to all trucks or truck tractors registered for a gross vehicle weight of more than 10,000 pounds whether operated by for-hire or private carriers in either intrastate or interstate commerce. The fee system will align Kansas with the International Registration Plan so that a carrier will pay the fee each year it renews its registration. The commercial vehicle fee will be apportioned based on the miles the carrier travels in the state. The new commercial vehicle fee does not apply to personal or farm-registered vehicles. Commercial vehicles will be billed two (2) separate fees; 1) a commercial vehicle fee and 2) a vehicle registration fee. All Kansas commercial vehicle fleets will have the option to pay both fees on a quarterly basis. A customer with both interstate and intrastate commercial vehicles will maintain a single account for both fleets of trucks. Each customer will receive a single renewal for all interstate and intrastate vehicles registered to them; the renewal processes will be de-signed to allow the customer to renew all vehicles in a single process; one (1) renewal, one (1) invoice, one (1) payment. The system will provide KDOR Auditors with all required information when doing IRP audits. Commercial vehicle fleets will be associated to a USDOT number; verifi-cation of USDOT number status will be performed during registration transactions. There are three (3) separate collections under IRP: 1) Kansas based interstate, 2) out-of-state apportioned carriers and 3) intrastate commercial vehicles. Kansas Based IRP Registered Vehicles Kansas based IRP (interstate) registered commercial vehicles will pay the commercial vehicle fee. The amount of the commercial fee will be based on their apportioned Kansas mileage per-centage. The commercial vehicle fee will be remitted to the County in which the interstate com-mercial fleet account is based. Non-Kansas Based IRP Registered Vehicles Out-of-state apportioned carriers, under IRP, will also pay the commercial vehicle fee based on their apportioned Kansas mileage percentage. This fee will be collected on all out-of-state vehi-cles being registered in Kansas. Out-of–state IRP registered vehicle fees are sent to the State General Fund and distributed as defined in K.S.A. 79-6a04 and K.S.A. 79-6a10. Intrastate Commercial Vehicles The Commercial vehicle fee for intrastate commercial vehicles will be distributed in the same manner as property taxes levied on motor vehicles. Commercial vehicle fees will be credited to the County where the intrastate commercial vehicle is based. If an operator of intrastate commercial vehicles registers in a County, but has vehicles based in another County, the County collecting the commercial vehicle fee will remit the fee to the County where the vehicle’s base is declared. The commercial vehicle fee is the same in all Counties. If an operator of intrastate commercial vehicles registers in one county, but has tax situs in a dif-ferent county, the county collecting the commercial vehicle fee will remit the fee to the county where tax situs is declared.


Customers Commercial vehicle owners and law enforcement officers have requested an improvement in transportation safety and improved administrative efficiency for both the carriers and the state. KDOR auditors require data from multiple systems when doing combined International Registra-tion Program and International Fuel Tax Agreement audits. A requirement of a new system would be to integrate IRP and IFTA and as a result, make audit data more readily available to au-ditors to insure compliance of motor carriers. Law enforcement officers will be able to identify commercial vehicles from a single authoritative source. As a part of the H.B. 2557 implementation, identifying opportunities to improve the process for Kansas Business Customers, and the State and County offices whose staff work with these cus-tomers, is also a primary objective.

1.3.2 IRP Requirements This section provides a description of the essential characteristics to be used by Proposers to show that the proposed solution does incorporate a resolution for each system requirement and business rule for commercial vehicle registration and fee collection. E-Government The current web portal (http://truckingks.org/) for interstate motor carriers must be expanded to allow all commercial vehicle operators in Kansas to file their fleet registrations on line. Technical Architecture The system must be web-based. Proposers are encouraged to bid both a solution where the De-partment of Revenue purchases and maintains the servers, and a vendor hosted solution (Soft-ware as a Service, SaaS, if available). Registration and Titling The system must provide full functionality for all registration and titling of commercial vehicles registered in Kansas. Commercial vehicle registration differs from noncommercial registration in that commercial vehicle fleets consist of one to several thousand vehicles. The vehicles included in the fleets may or may not be company owned and in some cases interstate vehicles registered in Kansas are not titled in Kansas. Fleet registration contains many unique processes, a major goal of this project is to identify the processes to improve and enhance commercial vehicle regis-tration. For Requirements please see IRP Functional Requirements - Appendix 1.

http://truckingks.org/�


1.3.3 IRP Internal and External Interface Requirements For Requirements please see IRP Interface Requirements - Appendix 5.

1.3.4 IRP Existing System Description The current practice is to require the commercial vehicle owner to process their vehicle registra-tions one-by-one in the County where the vehicle is stationed. H.B. 2557 defined a major restruc-turing of the way intrastate commercial vehicles will be registered. H.B. 2557 allows a commercial vehicle owner to process their commercial vehicle registrations in a single fleet registration transaction in a single county by declaring the tax situs for each vehicle they are registering. The current Kansas Apportioned Registration Data System (KARDS) is an International Registra-tion Plan management tool intended to enable Kansas to manage IRP. The system includes in-tegrated cash drawer and finance functions. KARDS runs in a standard Microsoft Windows envi-ronment. The Motor Carrier Services Bureau is located in Topeka with eight county offices. The offices register commercial trucks through the IRP which is a registration reciprocity agreement among states and provinces of North America providing for payment of license fees on the basis of total distance operated in all jurisdictions. The license plates are referred to as apportioned registra-tion. A fleet vehicle is known as an apportioned vehicle and such vehicle, so far as registration is concerned, may be operated both inter-jurisdictional and intra-jurisdictional. All states of the United States, the District of Columbia and 10 Canadian provinces are members of IRP. Vehicles based in Kansas are licensed through the IRP and fees are collected for each jurisdiction carriers operate into or through. Funds collected for other jurisdictions are distributed to those jurisdic-tions on a monthly basis. There is an IRP Clearinghouse, which distributes the fees to Kansas and 42 other jurisdictions. Kansas has about 3,200 accounts and registers about 22,000 trucks and 21,000 trailers annually. In FY11, Kansas collections totaled approximately $53 million with approximately $48 million being transferred to the State Highway Fund. Key IRP components are in the following figure.


Motor Carrier A motor carrier account is used to manage fleets of vehicles. A motor carrier account can have multiple fleets of vehicles. Fleets A fleet is one or more apportioned vehicles that travel in a specified number of jurisdictions and carry the same types of goods. The fleet must belong to one and only one motor carrier account. Fleet Supplements Supplements are updates to the fleets. Supplements have the following statuses in KARDS; “In Process,” “Invoiced,” “Paid” and “Completed.” Invoices KARDS provides the ability for a carrier or service provider to have the ability to create a supple-ment, process the fee calculation engine and produce an invoice that can be printed on the pro-vider or carrier’s local printer. Payments can be made by automated clearing house (ACH) trans-actions or by credit card. Audit KARDS provides the ability for a selective audit on carriers. Auditors look up the supplements one-by-one, and copy mile calculations over into audit software for the carriers and their vehicles. The system is inefficient in that auditors needing to complete a combined IFTA and IRP audit must pull data from two standalone systems and then combine the data to finish audits. Inventory KARDS has the ability to order and receive plate inventory. Tables Within KARDS, the system is transaction driven. The tables include Customer, Account, Fleet, Vehicle, Inventory, Payment and Invoice (ATM2) Tables, Fee Calculations, Plate Tables, ATMM Finance, ATMM Product, ATMM Product Revenue Distribution, and System Tables. Log files in-clude Exception, Service Message, and Session History. There are 8,448 records in the Cus-tomer Table and 5,013 records in the Motor Carrier Account Table. Data is updated daily. Security Administration Motor Carrier staff set the security for each user/group in the system. The administrator has the ability to add or delete users and to reset or unlock passwords. Reports and Batch Jobs KARDS provides limited reports and batch jobs. Functionality Motor carriers access the system via the internet and are able to view records, add vehicles, transfer vehicles, replace credentials, add jurisdictions, delete vehicles, change weight, request refunds, view or print invoices by supplement and make a payment. The general objective of the current system is to ensure that; 1) The State of Kansas maintains compliance with the agreements of the International Registration Plan from IRP, Inc.; and 2) Commercial vehicles are fairly and accurately registered. Specific business objectives include:

• Maintain a level of customer service that meets KDOR requirements and taxpayer expec-tations.

• Minimize errors. • Maintain compliance with PRISM, CVISN and IRP requirements.


Manual system components include the following Manual Process Description

Receiving Phone Calls Customers call with questions about Kansas requirements, status of tags, sta-tus of tax owed, etc.

Outgoing Phone Calls Ad-hoc phone calls with Motor Carriers after researching their questions.

Incoming Mail Some activities related to opening, sorting and distributing incoming mail would be eliminated with electronic filing.

Filing Forms are kept and filed after data entry because not all fields necessary to be retained are in the current system.

Major system outputs include the following

Output Description Invoice/Voucher Report of Detailed Fees Due for a Transaction (PDF) Correspondence Letters, Suspensions, Liens, Tax Warrants (PDF ) Cab Cards Interstate Registration for a Specific Vehicle (PDF) Reports Reports used for management decision making. Temporary Registration Temporary Interstate Registration for a Specific Vehicle

Accounts and Reports AR44

Loads into Statewide Management Accounting and Reporting Tool (SMART) – Fund 9103

Input forms The following table is a listing of Motor Carrier Services forms. The information from the forms is data entered into SQL tables by staff. The number of data fields is listed in the third column. Form Number

Form Description Number of Fields

MCS-105 Application and Instructions for Refund of Kansas Apportioned Fleet Registration

5

MCS-63 Application for Title-Apportioned Registration 30 MCS-66 Apportioned Supplemental Application (Schedule C) 86 MCS-71 Certification for Adding an IRP Jurisdiction(s) 100 MCS-66V Fleet Unit Change Request 25 TR-720b Kansas Manual Application for Duplicate, Secured, or Reissued Title 10 MCS-1B Mileage Schedule B 131

1.3.5 IRP Current Personnel Requirements

Following is a table of the staff positions involved with the current system assigned to the Vehicle Motor Carrier Section and PVD Motor Carrier Section.

Position and Role % of time for Staff Total FTE

PVD Tax Examiners 100 5 Research Analyst 100 1 Seasonal Temporary Workers 100 2

Seasonal Temporary Workers (3) 50 1.5 Vehicles



Bureau Chief 100 1 Management System Analyst 100 1 Accounting Specialist 100 2 Senior Administrative Assistant 100 2 County Staff 100 29 Information Services Application Programmer Developer 100 2 Application Development Supervisor 50 .5 Total Program Staff Required for Current Process 47

1.3.6 IRP Current System Software

The following table provides a snapshot of the primary software elements utilized within the current system.

Software Elements of the Current System Element Description

Web Browsers (Internet Explorer) Current with Kansas.gov requirements Enforcement Database Microsoft© Access 2003 Desktop Operating System Microsoft© Windows XP Word Processor Microsoft© Word 2003 Spreadsheet Microsoft© Excel 2003 Motor Carrier WebView VB.NET KARDS WebView ASP.Net

1.3.7 IRP Current System Hardware and Infrastructure

The following table provides a snapshot of the primary hardware elements utilized within the current system.

Hardware Elements of the Current System Element Description

Database Server Power Edge 2950 Workstations Dell OptiplexTM 330 and GX520 Workstation printers Various Manufacturers Firewalls & Routers Various Manufacturers Domain Controller Power Edge 1950 Web Server Power Edge 2950


Existing Infrastructure KARDS is based on 3M’s Archon Motor Carrier Solutions, and is an application built in the Mi-crosoft .NET architecture.

1.3.8 IRP File Layouts and Conversion Requirements With assistance from KDOR developers, records for 2009 through 2013 must be converted.

1.3.9 IRP Solution Description The Motor Carrier Project Team has investigated all known alternatives. Part of the investigation included interviewing peers at conferences, talking with other states and reviewing demonstra-tions of viable products. The states called as part of this study were Alabama, Arkansas and Io-wa. Based on that review and an analysis of Kansas’ specific needs, the team selected a web-based Commercial Off-The-Shelf solution as the best alternative. This alternative will allow for the use of proven technology that will require less deployment time yet will meet the Department’s and the customers’ needs. Customizations will give the Department of Revenue, Motor Carriers Sec-tion the flexibility it needs to perform its unique processes and remain compliant with Kansas


statutes. Requirements of H.B. 2557 must be in place, tested, and approved for production use by January 1, 2014. A COTS solution is the only viable avenue for reaching this objective. The software products reviewed included International Registration Plan and International Fuel Tax Agreement systems with interfaces to CVIEW, PRISM, and SAFER. There are options in regard to hardware. Servers could be purchased by the Department and supported by internal IS staff or a hosted solution (Software as a Solution if available) option could be chosen.

1.3.10 IRP Electronic and Paper Payments, Accounting and Distribution Stated in functional requirements.

1.4 PROGRAM DESCRIPTION AND REQUIREMENTS - IFTA

1.4.1 IFTA Program

International Fuel Tax Agreement (IFTA) is an agreement among states and Canadian provinces to simplify fuel use reporting for interstate carriers. An operating carrier with IFTA receives an IFTA license and one set of decals for each qualifying vehicle the carrier operates. The carrier files a quarterly return. This return is used to determine the net tax or refund due to the carrier and to redistribute fuel taxes to the jurisdictions where the fuel was consumed. The following graphic provides a high-level diagram of the major workflows involved in IFTA process.

Staff sends license and decals to carrier

Applicant submitslicense application,

renewals and payment

Staff sends notices to non-filers and delinquents

= Manual Process

Division of Taxation Staff

IFTACarrier

IFTA Process

Mainframe

Staff enters registration,

renewals and record of

payment into spreadsheet

Staff enters returns into mainframe

Carrier submits quarterly

returns via web

interface

= Automated Process

Staff calculates P&I in a

spreadsheet

1

11

8

License holder submits quarterly returns

5

9

10

1214Carrier submits renewals via web interface

6

KSCVIEW

Staff verifies carriers status in

KSCVIEW

2

P&I Spreadsheet

IFTA Clearinghouse

Staff verifies carrier is in good

standing

4Staff verifies corporation

status

3

SMART

Staff enters customer

information for refunds15

SMART issues

refunds to carriers

16

Staff submits transmittal and

demographic data to the Clearinghouse

17

Carrier requests additional decals via web interface

7

Staff uploads carrier information on

demand 18

Staff enters P&I into

mainframe

13


Operating Environment: Mainframe Legacy System, Web-Based System for Renewal, Decal Orders and Quarterly Tax Filings IFTA covers fuel tax imposed on interstate commercial vehicle motor fuel users for motor fuel used in operations on public highways within this state. Gross vehicle weight or registered gross weight, as well as axles determine the requirements for the operator of a vehicle to obtain an IFTA license. The location of the fuel purchased compared to the location of the miles traveled is factors in determining tax liability. Distribution of funds is performed through the national IFTA Clearinghouse among jurisdictions that have joined the Clearinghouse. Tax processing tasks include registration and licensing, return printing, return filing (paper and electronic), payments (pa-per and EFT), schedule data, amended returns, adjustments, refunds, calcu-lation of penalty and interest, customer billings, non-filer notices, audit entry,

funds netting (national distribution via IFTA Clearinghouse), correspondence, annual renewals, decal or-ders, hearing/appeal process, bankruptcy, tax warrants and information sharing. The IFTA license is re-newable each year. There is a fee of $10.00 to receive an IFTA license and decal set for the first qualified motor vehicle. De-cal sets for additional qualified motor vehicles under the same license are $1.00. The following table summarizes the IFTA use and activity for 2011.

Total IFTA Accounts

New Accounts in 2011

Total Quarterly Returns

Decals Issued

Decal Revenue

3,342 354 13,368 46,137 $79,336.00 Individual Refunds

Refunds Issued

# 2011 Audits Required 3%

2011 Audits Completed Non-filers

2,354 $1,125,647.61 90 99 1,030

Hearings Dismissals Revoked Accounts

Reinstated Accounts

Surrendered Accounts

520 355 125 47 326 IFTA Revenue Transferred Kansas Department of Transportation

$11,234,490.04


Operational Scenario:

Operational Scenario:

1 Motor carrier enters the TruckingKS.org portal and is directed to IFTA pages for interactive data entry session using a “wizard” model for license application, renewal, tax filings and decal transactions. Al-ternate pages step the carrier through IFTA tax filing steps.

2 KCC Motor Carrier Registration, KDOR Intrastate Registration and KDOR IRP system send periodic updates of specific carrier parameters to KSCVIEW.

3 KSCVIEW web services provide carrier status data to the IFTA system, when requested.

4 Upon application approval the carrier receives IFTA license.

5 IFTA decals are mailed to the motor carrier as applicable.

6 IFTA quarterly returns are processed with payments sent to the KDOR fiscal system.

7 The IFTA system / IFTA Clearinghouse interface is bi-directional and provides required IFTA clearing-house file, weekly IFTA demographic file and summary file.

8 KSCVIEW provides current IFTA data for roadside enforcement and Kansas scale houses through KSCVIEW web-based query windows. This information includes IFTA license information and the range of decals assigned to the carriers.


1.4.2 IFTA Requirements

For Requirements please see IFTA Requirements in Appendix 1.

1.4.3 IFTA Internal and External Interface Requirements

The following graphic provides an overview of the potential key internal and external system interfaces of the proposed system.

Potential Internal and External System to System Interface Diagram Description

1

Interface to customer systems for IFTA electronic interchanges filers or Internet-based web filing capabil-ities.

2

Bi-directional interface to Kansas Commercial Vehicle Information Exchange Window (KSCVIEW) to provide IFTA status for motor carriers and registrants and receive Carrier safety status.

3

Financial interface to the Statewide Management Accounting and Reporting Tool. (SMART)

4

Various interfaces to internal KDOR systems for reporting, audit preparation, imaging and web tax func-tions including filing and payments. (Note: Other interfaces will be identified during the requirements gathering.)

9 IFTA Clearinghouse provides IFTA data to the Statewide Management, Accounting and Reporting Tool (SMART) for IFTA distribution purposes.

New IFTA System

KSCVIEW

PRISM

E - Payment Service Provider

Federal Systems

Kansas Highway Patrol

IFTA Clearinghouse

Clearinghouse System

WebI Filers

KDOR Audit Work

Papers KS

Web Tax E - Payment

( Web File )

KDOR File Net Imaging

`

Web - Filers

Internal Interfaces to Associated KDOR Systems

Kansas Department of Revenue

KDOR Reporting Systems

1

2

3 4

5

Kansas Department of Administration

SMART 6

7 SAFER

8

Customer Systems

`


Potential Internal and External System to System Interface Diagram Description

5

Interface to electronic payment service provider for clearing credit card transactions.

6

Connection of the IFTA Clearinghouse for transmittal and demographic data exchange.

7

Connection to Federal Safer system (USDOT)

8

Connection to Federal PRISM system to help keep carriers compliant with safety and all registration re-quirements for Federal and States.

1.4.4 IFTA Existing System Description

Inefficiency and Technical Obsolescence The current IFTA system is limited by outdated technology. It is 4th generation software from 1994 built on an IBM mainframe. The system largely requires manual data entry, error-checking and verification. Applications for licenses and permits are mostly via paper submission. Quarter-ly returns are manually submitted and reviewed. KDOR auditors manually collect and review au-dit data, which is a time-consuming process. The IBM mainframe does not have graphical-user interfaces and requires local computers to serve as dummy terminals. Staff must navigate through menus using text commands. Other limi-tations include:

No Data Integration Querying and reporting functions are limited to comparing reports among multiple systems. Data residing in the legacy system is not readily available for management and enterprise-wide reporting activities. Limited Flexibility The existing system limits KDOR’s ability to comply with new legislative or business process requirements. An example is the upcoming IFTA requirement for states to calculate interest on delinquent balances using variable interest rates. Staff increasingly has to supplement the system with the use of Excel spreadsheets. Increasing Maintenance Costs The IFTA system relies upon centralized mainframe services operated by Office of Infor-mation Technology. Kansas agency systems are moving away from the mainframe environ-ment and are re-deploying on modern client-server platforms. As other systems move off of the mainframe, fixed operational costs are spread across the remaining few customers. Limited Operational System Support KDOR has limited trained technical resources capable of modifying COBOL programs for IFTA change requests. Agency hiring restrictions do not allow for hiring new manpower to provide the needed operational system support. Information Sharing The IFTA processes do not share data between components. Each is a discrete sub-system with no interaction. Reporting and data output are limited to the capabilities of a mainframe.

Taxpayer Expectations Currently, customers must complete paper forms and wait for licenses, permits, refunds and ad-justments. Increasingly, motor carriers expect and prefer to be able to electronically apply for li-censes, and file renewals and returns using Internet-based interfaces. Kansas has implemented electronic credentialing capabilities for IFTA; a new system will be integrated with a “one-stop-shop” motor carrier portal concept through www.Truckingks.org.

http://www.truckingks.org/�


Input forms Form Number

Form Description Number of Fields

International Fuel Tax Agreement (IFTA) Articles of Agreement International Fuel Tax Agreement (IFTA) Procedures Manual International Fuel Tax Agreement (IFTA) Audit Manual MF-86 Individual Vehicle Mileage and Fuel Report 36 MF-87 Unit Monthly Fleet Summary 37 MF-92 IFTA Retail Fuel Purchase Schedule 32 MF-95 IFTA Bulk Fuel Disbursements Schedule 22 MF-96 IFTA Bulk Fuel Inventory Reconciliation Schedule 21 MF-89 IFTA Decal Tracking Schedule 10 MF-39 Kansas Application for International Fuel Tax Agreement (IFTA) 46 MF-66 IFTA Bond 26 MF-67 Escrow Agreement 18 MF-23 IFTA Additional Decal Order Form 05 MF-85 IFTA Tax Return 55 Third Quarter Diesel (Schedules are provide for each fuel type carrier uses)

1.4.5 IFTA Current Personnel Requirements


Division of Taxation Public Service Executive II 20 .2 Public Service Administrator II 95 .95 Customer Representative Senior 100 1 Customer Representative (2) 80 1.6 Customer Representative Specialist (2) 100 2 Administrative Assistant 80 .8 Administrative Assistant 25 .25 Information Services Application Developer III 50 .5 Audit Services Public Service Executive III 25 .25 State Auditor IV 65 .65 State Auditor III (2) 65 1.3 State Auditor II (3) 65 1.95 State Auditor I 65 .65 Customer Representative Specialist 3 .03 Accounting Specialist 3 .03 Total Program Staff Required for Current Process 12.16


1.4.6 IFTA Current System Software The following table provides a snapshot of the primary software elements utilized within the current system.


Mainframe Language COBOL; Natural; Natural Construct Mainframe Database ADABAS Web Browsers (Internet Explorer) Current with Kansas.gov requirements Lotus© Notes Email Application Internal and external e-mail correspondence. IFTA Renewal and Return Web Interface Microsoft© .Net, Microsoft© ASP Desktop Operating System Microsoft© Windows XP Word Processor Microsoft© Word 2007 Spreadsheet Microsoft© Excel 2007

1.4.7 IFTA Current System Hardware and Infrastructure

The following table provides a snapshot of the primary hardware elements utilized within the current system.

Hardware Elements of the Current System

Element Description

IBM Mainframe (OITS) IBM z890 Model 2086-450 ADABAS database system/CICS

Fax/Email Server IBM Lotus Notes FTP Server for EDI Transactions Dell PowerEdgeTM 1950 Motor Fuel Tax Workstations Dell OptiplexTM 330

Web Server Dell Kansas.gov for Internet IFTA renewals, quarterly tax filing and IFTA decal applications.

Mainframe Printers Various Manufacturers Workstation printers Various Manufacturers Firewalls & Routers Various Manufacturers

The mainframe systems are written in COBOL and Software AG’s Natural Construct programming language and using the ADABAS database, one of the earliest commercially available databases. Current develop-ment is performed through Natural Construct, an application generator.

1.4.8 IFTA Current File Layouts and Conversion Requirements

With assistance from KDOR developers, records for 2009 through 2013 must be converted. The platform is IBM Mainframe TRS for the application piece and Nat2 for the IFTA data.

1.4.9 IFTA Solution Description

The K-CRAFTS Project Team reviewed several alternatives and concluded that in order to meet the goal of converting data and migrating to a fully integrated web-based application, a COTS solution will be selected. Requirements must be in place, tested and approved for production by August 1, 2014. IFTA carriers may utilize a web-based service for renewing licenses, order additional decals and filing quarterly taxes. These forms should be available through the web portal, fillable by customers and input into the system with ap-propriate edits. The solution should automate the current manual processes to facilitate tax collection. Examples would be automated reminders to file returns and allow simplified online registrations and return processing. Data must be shared in order to eliminate redundant data entry and improve the ability to verify and audit IFTA re-turns. Proposers are encouraged to bid replacement of the other Motor Fuel taxes as additional modules to be converted after implementation of IFTA.


1.4.10 IFTA Electronic and Paper Payments, Accounting and Distribution Stated in functional requirements.

1.5 PROGRAM DESCRIPTION AND REQUIREMENTS - ABC LIQUOR LICENSING

1.5.1 Liquor Licensing, Enforcement, Case Management and Licensee Administrative Action

The ABC Administration Unit provides the overall direction and staff support functions to meet the Division's goals. ABC Administration adjudicates violations of the Liquor Control Act and the Club and Drinking Establishment Act involving licensees of ABC and provides administrative sup-port and direction for the entire ABC Division. The administrative cases involving alleged viola-tions of the liquor laws, by liquor licenses, are heard by the Director or his designee. The Licensee Administrative Action (LAA) Unit is staffed by the Assistant Attorney General (AAG) assigned to the ABC, a Legal Assistant and one Administrative Specialist. The AAG reviews the cases presented by the Enforcement Section and local law enforcement agencies to determine the appropriateness of the charges and administratively prosecutes violations of the liquor laws before the Director. Following are the number of liquor citations issued for FY 2008 through FY 2012 and the total fines collected for those years:

Activity FY 2008 FY 2009 FY 2010 FY 2011

FY 2012 (6 months)

CITATIONS Liquor 470 645 547 564 182 Tax Orders 144 229 215 211 125 Total Liquor Citations Issued 614 874 762 775 307 FINES Liquor $105,275 $243,380 $367,836 $361,475 $140,132 Tax Orders $132,820 $153,603 $162,907 $191,396 $112,462 Total Liquor Fines Collected $238,095 $396,983 $530,743 $552,871 $252,594

Liquor Licensing Currently there are 4,929 active liquor licenses and permits for retail liquor stores, distributors, manufacturers, farm wineries, microbreweries, on-premise establishments (class “A” clubs, class “B” clubs and Drinking Establishments), caterers, special order shippers, suppliers and temporary permit holders. Last year, the Licensing team members answered 16,915 telephone calls and assisted 512 walk-in customers with answering questions. The Licensing Team is also responsible by statute for collecting the various Gallonage taxes. Gallonage tax is collected on Beer, Cereal Malt Beverage (CMB), Alcohol and Spirits, fortified wine, light wine, domestic wine and domestic beer. It is collected from distributors, farm wineries, microbreweries, microdistilleries, manufacturers, special order shippers and individuals. Last year the team collected $21,135,521 in Gallonage tax. Under the Cereal Malt Beverage Act, cities and counties are authorized to issue the licenses for CMB local sales. Cereal Malt Beverages are those drinks containing 3.2% alcohol by weight or less and flavored beverages containing 3.2% by weight or 4% by volume. Cities and counties place a stamp on each copy of the license and collect a $25 fee in addition to the applicable license fee. They send a report plus the appropriate fee to KDOR on the 25th of


the month for the previous month’s transactions. CMB is on the AS/400 only as notes or comments, but not in a database. The records are tracked in a spreadsheet and no enforcement efforts are addressed to collection of CMB fees. The new system should automate the processing and management of CMB fees.

The liquor related tax rates and amounts collected for the period of FY 2008 through FY 2012 are as follows: Gallonage Tax Rates per Gallon: Alcohol/Spirits $2.50 Fortified Wine $0.75 Light Wine $0.30 Beer, Flavored Malt Beverage Weak and Strong, and CMB $0.18


Enforcement - Liquor The Enforcement Unit provides investigative support for the ABC Director and Chief Enforcement Officer. There are currently 30 Fulltime Employee positions, 20 of which are agent positions in the unit with 18 of these positions filled. Enforcement Agents are certified law enforcement offic-ers. They conduct criminal and administrative investigations to determine compliance with liquor laws. Agents provide training to licensees and local law enforcement officers on how to conduct “controlled buy” operations and bar checks, investigate complaints and hidden ownerships, and perform routine compliance checks. Enforcement works closely with local, state and federal law enforcement agencies as well as the KDOR, Division of Taxation in carrying out these activities. Additionally, Enforcement works with health organizations, including 10 Regional Prevention Cen-ters, and schools in an overall strategy to reduce underage access to alcohol. Investigations re-sulting in alleged violations are presented to the County or District Attorney for criminal prosecu-tion against the individual and/or the ABC Assistant Attorney General against the licensee.


Enforcement Activities for FY 2008 – FY 2012:

There are four input documents used by agents (ABC-136 ABC-137, ABC-138, and ABC-603); Controlled Buy Investigation Report, On and Off Premise Licensee Contact Report and Citation, Manufacturer / Distributor Inspection Report and Farm Winery / Microbrewery Inspection Report. Copies of these forms are available on the ABC website for Kansas Department of Revenue. Currently enforcement staff fills out the form by hand in ink and then come into the office to type the data into the AS/400 screens. Reducing duplication of work is one important goal of this pro-ject. (Form for Microdistilleries is being added this year.)

Agents and Inspectors fill out Standard Offense Re-ports by hand and deliver them to LAA. This form is also received (by fax, hand delivered, emailed or post-age mailed) from Local Law Enforcement Officers for the ABC Division to pursue.

Customers

Taxpayers rely on ABC for fair and consistent en-forcement of State laws and to provide for administra-tive policy that ensures compliance is made as easy for the customer as possible.

Internal Stakeholders:

• KDOR Tax Administration Customer Rela-tions: Alcoholic Beverage Control Admin-istration works with Miscellaneous Tax Section to ensure licensee compliance with the Liquor Enforcement Tax Act and the Liquor Drink Tax Act.

• KDOR Tax Compliance Management: Al-coholic Beverage Control Administration

prosecutes licensee violations detected by Compliance Agents, and KDOR Auditors. • Civil Tax Enforcement: Sets up payment plans and secures tax debit identified by Audit Ser-

vices and referred by ABC Licensing.


• KDOR Tax Audit Services: Receives audit candidate referrals from the Cigarette and Tobac-co Enforcement (CATE) Team and performs cigarette and tobacco licensee audits.

External Stakeholders: Key components in the goal of ABC Enforcement to reduce underage drinking and increase liquor li-cense compliance are to regulate, educate, and then enforce the Kansas liquor laws. This requires partnering with other law enforcement agencies, licensees, prosecutors and various support agencies to foster positive working partnerships.

1.5.2 Liquor Licensing, Enforcement, Case Management (CM) and LAA Requirements

For Requirements please see Liquor Functional Requirements in Appendix 1. 1.5.3 Liquor Licensing, Enforcement, CM and LAA Internal and External Interface Requirements

Although the Brand Registration and Label Approval data has been migrated to a SQL database management system, Software as a Service product by ShipCompliant, there remains a need to move that data nightly to the public web view. File layouts in Appendix 7. The Proposer will need to interface their software with the Brand Registration and Label Approval system.

The following diagram is a high-level overview of the internal and external interfaces of the ABC system and work processes.


For Requirements please see Liquor Interface Requirements in Zip File - Appendix 5.

1.5.4 Liquor Licensing, Enforcement, Case Management and LAA Existing System Description

Liquor Licensing

Instructions explaining how to apply for new liquor licenses or new permits are on the KDOR website www.ksrevenue.org/abcapplynew.html. Customers are provided with application prereq-uisites, state taxation requirements and a complete set of application forms including, “Kansas Liquor License Application Instructions,” ABC-800. K.S.A. 41-319 allows the ABC thirty days to process all applications and issue licenses with the exception of distributors, manufacturers and non-beverage licenses which must be issued within 20 days of receiving all documentation.

Licenses and registration fees, as well as, all LAA fines are tracked manually in Excel. Electronic filing of license fees and violation fines would improve efficiency and timeliness in processing ap-plications and in pursuing legal violations. There are five (5) Customer Representatives and one (1) Customer Representative Senior in the Licensing Unit who are responsible for the majority of the license processing. The Licensing Unit issues On-Premise, Retailer and Special Order Shipping licenses. There is one (1) Customer Representative and one (1) Customer Representative Senior assigned to the Marketing Unit. The Marketing Unit handles the more complex type of licenses. Marketing staff issue farm winery, farm winery outlet, microbrewery, microdistillery, microdistillery packaging and warehouse, public venue, microbrewery packaging and warehousing facility, manufacturer, distributor and non-beverage user licenses along with their drinking establishment and/or caterer's license. Market-ing staff also issue supplier permits, farmers’ market sales permits, temporary liquor permits, non-beverage permits, warehouse permits and process all alcoholic liquor and Cereal Malt Beverage label registrations submitted after reviewing the licensee’s information. They track CMB licenses issued by cities and counties and also manage the CMB tax stamp inventory that is applied to the each CMB license. Approximately 155 license applications come in bi-annually along with approx-imately 820 supplier permits, farmers’ market sales permits and non-beverage user permits an-nually. The licensing process is documented step-by-step below.

Step 1) Paper application received and routed to ABC. Step 2) ABC Associate stamps in, logs payment and creates voucher, then sends payment to Channel. If the applicant opts to pay ½ of their license fee, it is entered into an .xls spreadsheet for tracking. Step 3) ABC associate creates checklist for the application and delivers to the assigned Licensing Representative. Step 4) Licensing Representative completes a first review of the application packet received, then

a. Checks to see if the business tax application is included. If not, checks the Astra Tax Processing system, if not there, sends a copy to MTS.

b. Reviews license application for completeness (ABC-800). c. Verifies correct payment is submitted. d. Searches AS/400 for a current license at the location applied for. If yes, researches

current license account to see if it is an account with a history of violations that may need Enforcement Agent to investigate for hidden ownership.

e. Checks to see if the applicant meets residency requirements. f. Retailer applications – must search AS/400 by name and address to look for names

that imply a chain or “discount”. g. Reviews the financial disclosure (ABC-801). h. Reviews the zoning form (ABC-802) i. Scans the bond (ABC-803/804 or LD-400/401) and emails to the Miscellaneous Tax

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Segment for approval. j. Reviews the employee registration submitted. k. Reviews the Request for Premise Approval. If application is for a retailer, farm win-

ery or microbrewery license, the diagram is scanned and sent to an ABC Administra-tive Assistant to forward on to an Enforcement Agent for approval. Once approved by an agent, they are saved in the appropriate network folder. All other license types are approved “as submitted” and scanned and filed in the appropriate network folder.

l. Search .xls spreadsheet for a license number to assign that has not been used in the county.

m. Enters into the AS/400. n. Reviews the articles of incorporation, by-laws, partnership agreement, Articles of or-

ganization operating agreement as applicable for the entity type. o. Checks the Secretary of State’s office to see if they are in good standing p. Checks tax clearance number is approved. If not, contacts MTS to see why. Hold for

liquor taxes only. q. Checks that the deed/lease is correct entity, location and lease dates are valid. r. Contacts the applicant for any missing information or if corrections are required s. Sends the application to the Background Investigations Unit for processing of own-

er/officers and employees Step 5) Background Investigation sends back to the Licensing Representative Step 6) Licensing Rep. contacts the applicant again for required information when necessary. Step 7) Once application is complete, the Licensing representative: a. Updates the AS/400 screen to issue the license.

b. Assigns a “B” number which is a consolidated tax number in Accounts and Reports Management System (ARMS).

c. Builds the tax screens in Legacy (mainframe). d. Creates the Liquor Drink or Liquor Enforcement tax certificate using a Word template. e. Creates the liquor license using Adobe fillable form and saves it to a network folder. f. Creates a voucher with payment due date and amount in a Word document and saves it to a network folder. g. Prints the PIN letter from the AS/400. h. Scans to their own email userid. j. Notifies MTS to build the bond via email. Step 8) The Licensing representative notifies the Enforcement Agent who delivers the following documents: a. Liquor License. b. License Cover letter. c. Voucher for 2nd half license fee, if applicable. d. Tax letter with PIN. e. Tax certificate. f. Liquor license brochure (ABC-899). g. Inserts (no smoking, price includes liquor drink tax, business card, Under 21 etc.). h. (RLS only – keg tag forms).

Renewals

For the renewal of liquor licenses the work flow is almost the same as for new licenses. Only a few work processes are omitted. 1. Paper application received and routed to ABC.


2. Representatives use applicable checklists (ABC-851 Renew On-Premise License Checklist) or ABC-852 Renew Retailer License Checklist.

3. ABC associate stamps in, logs payment and creates voucher, then delivers payment to

channel. If the applicant opts to pay ½ of their license fee, it is entered into an .xls spread-sheet for tracking.

4. ABC associate creates checklist for the application and delivers to the assigned licensing rep.

5. Licensing Representative completes a first review of the application packet received, then:

a. Reviews license application for completeness (ABC-800) b. Verifies correct payment is submitted. c. Checks to see if the applicant meets residency requirements. d. Checks for ownership changes and requests documents required if change occurred. e. Checks the Secretary of State’s office to see the licensee is in good standing f. Checks tax clearance number is approved. If not, contacts MTS to see why. Hold for

liquor taxes only. g. Checks the deed/lease for correct entity and location, and that the lease dates are

valid. h. Contacts the applicant for any missing information or if corrections are required i. Sends the application to the background investigations unit for processing of own-

er/officers and employees

6. Background sends back to the licensing representative after review

7. Licensing Representative contacts the applicant again for required information if necessary.

8. Once application is complete, the licensing rep: a. Updates the AS/400 screen to issue the license b. Creates a voucher with payment due date and amount in a Word document and

saves in the network folder. c. If applicable the split payment option is selected. d. Prints the PIN letter from the AS/400 e. Notifies MTS by email to build the bond

9. The Representative notifies the Enforcement Agent who delivers the following: a. Liquor License b. License Cover letter c. Voucher for 2nd half license fee, if applicable (ABC-839) d. Liquor Licensure Brochure (ABC-899) e. Inserts (no smoking, price includes liquor drink tax, business card, Under 21 etc. f. (RLS only – keg tag forms)

Temporary Permits: Information, instructions and forms are available to KDOR customers at http://www.ksrevenue.org/abctemppermit.html. Permits are processed by a Customer Repre-sentative and there are three types of temporary permits available. The applicant completes the ABC-830 form and submits it with the $25 fee for each day that the permit is needed. The applicant may have a permit for up to 3 days or the length of the event up to 30 days, and no more than 4 permits per year are allowed. The Customer Representative must check to see if the applicant has been issued prior permits. For a new permit, the number is obtained by searching a spreadsheet to find a number that has

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not been used in the county the permit will be issued. Once assigned, the screen in the AS/400 is built. The tax account is built in the mainframe system and inactivated to prevent automatic billing. A paper form LD-1 is hand written and enclosed with the permit and cover letter. The Customer Representative sends an email to the Enforcement agent, for that location, letting them know that a permit has been issued and where. The Customer Representative enters the information into a spreadsheet and scans the application into a network folder for the agent to view. Once the function is held, the permit holder must file and remit their liquor drink tax due and sur-render their permit to the Department. Supplier Permits: Suppliers complete and submit the ABC-1001 along with the $25 permit fee and the filed Irrevo-cable Consent to Jurisdiction (ABC-160) if they are not located in Kansas. Upon receipt, the permit number is assigned by searching the AS/400 for the next available num-ber for the current fiscal year and then the screen is built. Once the permit is active, a supplier can register labels through the new Brand Registration and Label Approval Database. No permit is sent to the applicant, but instead it posts to the ABC website. Permits can be viewed through the AS/400 screen by the Permit Number as the primary key. Brand Registration and Label Approval The Marketing Unit within the ABC Licensing Team is responsible for registering brands and ap-proving alcoholic liquor and cereal malt beverage labels for wine, spirits and beer products to be sold in Kansas. The business function has been migrated from tables on an AS/400 to SQL Server tables in a .NET hosted environment. The on-line product is owned by ShipCompliant and is called PRO. New and renewal of license applications are processed through the ShipCompliant Portal but the data has to be copied to the AS/400 until the Licensing Application is migrated to a SQL environment during the K-CRAFTS proposed project. There will need to be an interface between PRO and the new system to verify licenses are current. If at some future date ShipCompliant ceases its business operations, the Brand Registration and Label Approval application would have to be migrated to the COTS solution.

Gallonage Tax There are six (6) types of licensees who are charged a tax to bring liquor by the gallon into Kan-sas. Those licensees are distributors, manufacturers, farm wineries, microbreweries and microdistilleries and special order shippers. They use the same license application form as other license types but they have more stringent requirements to meet. For example, to be classed as a farm winery, they must meet the 30% Kansas agriculture product requirement. They must have a valid federal basic permit prior to receiving a license from Kansas. These licensees receive more education from the ABC regarding how to file reports and the dollar amount to be paid in tax. Reporting requirements are extensive and options for filing are a combination of paper files, electronic files, scanned and faxed files plus EFT payments, EDI payments and paper checks. The EDI database is difficult to query from and reporting from multiple places is not always accu-rate as not all licensees file electronically. Licensees are required to pay monthly by the 15th of the following month and the AS/400 system does not accommodate the Department in sending automatic invoices or email reminders. Com-pliance is close to 85%; (i.e. 15% of licensees over the last three (3) months were either late in


paying their tax or were non-filers.) This reiterates the importance of acquiring an application for use in managing Gallonage Tax. Given tax revenue annually of over $20 million, and a stated rate of 15% late or non-filed returns, we believe it fair to assume that a modernized system would facilitate an increase in tax revenue. (Note: There is no penalty and interest for gallonage tax.) Companies have the option to file consolidated returns by the FEIN rather than the license num-ber because they may have multiple locations and multiple licenses in Kansas.

Individual Gallonage Tax

Individuals who possess alcoholic liquor and wish to bring it into Kansas are required to report and pay gallonage tax on the liquor. There are three different forms to report and pay the tax. If gallonage tax is due in the amount of $5 or less, individuals must file their tax return but are not required to pay the tax.

• If transporting alcoholic liquor into Kansas from outside the borders of the United States, the

ABC-205 is filed and the appropriate Gallonage tax is paid prior to transporting the alcoholic liquor into Kansas. A one gallon tax credit is allowed.

• If transporting alcoholic liquor into Kansas from within the borders of the United States, the ABC-206 is filed and the appropriate gallonage tax is paid prior to transporting the alcoholic liquor into Kansas.

• If transporting wine into Kansas that was purchased at any out-of-state winery in a face-to-face transaction or the purchaser has the winery ship the wine to their Kansas residence, then ABC-207 must be filed and the appropriate gallonage tax paid within 30 days after pur-chasing the wine.

Background Investigation The Background Investigation Unit consists of a full-time Senior Administrative Assistant. Their input documents are Sections 4, 5 and 6 of the ABC-800 Form. The process includes: Step 1. Verify that no item under Section 6 is checked "yes." If it is, then more investigation is needed. Step 2. KS Statute requires the Department to check all Owners and Officers of companies apply-ing for liquor licenses. From Form ABC-800, Section 4 and Section 5, staff data enter Of-ficer/Owner process codes into the AS/400 table. Step 3. Staff sends batch queries on-line to the KBI for a check of Criminal History. When infor-mation returns to the department through Kansas Criminal Justice Information System, if one of the owners is not qualified a Journal Entry is obtained and sent to LAA to either revoke the li-cense, if the application is a renewal, or to deny the license if the form was filled out to apply for a new license. The Senior Administrative Assistant creates a letter in MS Word explaining that the person is not qualified and sends the letter to the company. The applicant has the option of re-moving the named person from the board and this is verified through review of meeting minutes of the company or by accepting the non-issuance of a license to do business in Kansas.

Step 4. If duplicate Social Security or Driver License Numbers are found then the staff member adds this information to a “Fraud Spreadsheet” that is sent monthly to the Tax Fraud Unit of KDOR. Exceptions are if a person applies for a new business license but they were a previous owner. In that instance, the application is routed to LAA and/or Enforcement Agents for research and review.


Enforcement and Enforcement Activity Worklist and Reports Agents currently spend 18.5% of their time on administrative requirements and 16.3% of their time on data entry. It is critical to find a software solution that will reduce the amount of adminis-trative data entry required for agents in order to free them up to conduct additional enforcement activities.

Agents use multiple databases and spreadsheets to manage and document their activities as fol-lows:

• AS/400 - Licensee Contact database, Enforcement Activity Report, and Liquor License db;

• Access databases - Liquor License Enforcement Contact and the Drug Tax Disposition Log (Seized Property);

• Automated Case Management (ACM) in Oracle; • Seized Property in MS Access; • Excel spreadsheets maintained in the ABC Network Folder.

The need is for one system to manage and track licensees and licensee contacts, and to provide the formulas to manage statistics for agent performance, worklists and reporting. Because of the limitations of the AS/400, the Enforcement Management Systems Analyst weekly updates the Liquor License Contact Enforcement MS database from the AS/400. From that plat-form enforcement assignments and contacts can be managed more easily. Below is a table identifying the activity, category and definition of enforcement activities that shows the diverse nature of ABC enforcement work.

Activity Category Definition Administrative

Administrative Requirements

Setting up ACM cases with administrative and/or criminal suspects, charges, counts, evidence, narrative and witnesses and monitoring the status of cases and appropriate routing of cases according to established policy and proce-dures. This includes completing Standard Arrest Report (SAR) and Standard Offense Report (SOR) forms. Entering enforcement activities into the AS400, licensee contact Access data-base, Seized Property Access database, Drug Tax Visual Basic database, and the External Training folder. Checking e-mail, completing vehicle log, agent timesheet, Underage Cooperat-ing Individual timesheets, enforcement activities report, buy fund entries, and other non-investigative required reports due each pay period. Includes re-search and organizational efforts not related to specific investigations. I.e. generating list of licensees in assigned county using the AS/400 or from the Access database, obtaining case dispositions from local courts, and evidence disposal.

Liquor Enforcement

Background Investigation

Determining in the field whether liquor license applicant is qualified to be issued a liquor license and whether licensee and/or employees meet qualifica-tions.

Bar Checks Visiting on-premise establishments looking for underage violations.

Cops in Shops Watching for underage persons attempting to purchase liquor from a liquor establishment or for someone to purchase liquor for an underage person (fur-nishing).

Gambling Investigating reported/suspected gambling or watching for the operation of illegal gambling machines or illegal games/contests.

Hidden Determining whether licensee is holding the liquor license on behalf of anoth-


Ownership er person (the true owner). Membership Determining whether licensee is serving to individuals who have not met the

membership requirements. Other Investigating reports of other liquor activities not captured in another catego-

ry. Surveillance Watching for underage persons attempting to purchase liquor from a liquor

establishment or for someone to purchase for an underage person (furnish-ing). Watching for individuals opening a drink before entering a vehicle and driving away (transporting open container).

Unlicensed Premise

Monitoring activities at a concert, sporting event, parking lot, field party or other large gathering of people for liquor violations with a focus on underage.

Liquor Licensee Contacts

Complaints Conducting investigation and determining validity of complaint. Controlled Buy -Chosen Liquor

Performing liquor controlled buy at a Kansas liquor licensee selected by the agent.

Controlled Buy -Random Liquor

Performing liquor controlled buy at a Kansas liquor licensee as assigned by the Enforcement access database.

Diagram approval

Reviewing diagram approval requests submitted by licensees, conducting on-site visit and/or review of submitted documents, contacting licensee to obtain additional information if needed and determining validity of diagram in order to approve or deny request.

Educational Visit Conducting educational visit with licensee – on premise or via telephone.

Inspections Conducting a compliance inspection of a Kansas liquor licensee.

Office Referrals

Contacting licensee as referred by ABC office – either in person or via tele-phone

Other

Communicating with a liquor licensee in person, via telephone, or email to respond to licensee inquiries or provide instructions on how to remain in com-pliance with the Liquor Control Act, to foster relationship building and to gath-er intelligence. Contacting licensee for an activity not captured in another activity category.

Process Service Checking suspended and expired licenses. Serving suspension or other orders as requested by ABC Office.

Other Activities

Assist Outside Agency

Assisting law enforcement or prosecutorial agencies relating to enforcement activities only. Does not include providing training to outside agencies.

Assist Other KDOR Division

Assisting any other KDOR Division except ABC. i.e. assisting Civil Tax Enforce-ment with till taps and Compliance with the performance of their duties.

Court and Administrative Hearings

Attending administrative hearings and criminal court proceedings associated with agent’s ABC cases.

Leave Reporting all leave used by agent

Meeting Communicating with law enforcement agencies or prosecutors relating to ABC cases, intelligence exchange and relationship building. Representing ABC/KDOR at a meeting. Does not include providing training.

Other Reporting any activity not captured in another category or sub-category. Special Projects Working on project assigned by ABC management that is not in the agent’s

regular duties and is not captured in another category. Participating in pro-jects where agent is assigned to the office for completion. i.e. Opening tax mail, etc.

Training Training Provided

Preparing and giving formal presentation of ABC related training to law en-forcement agencies, gathering of liquor licensees and other groups.

Training Received

Receiving Law Enforcement and ABC training.


Travel

Travel

Traveling to destination, not including travel within the city of your destina-tion. I.e. travel from Topeka to Manhattan would be recorded as 1.0 hour. Time spent traveling from licensee to licensee located within Manhattan should be recorded as inspection time or investigation time - NOT travel time. Travel between cities to conduct enforcement activities should be recorded as travel.

Vehicle Service Maintaining state vehicle – service, repair work, car washes.

Licensee Administrative Action - Liquor LAA prosecutes administrative violations of the Liquor Control Act and/or Club and Drinking Es-tablishment Act. When an administrative liquor violation case is received from an ABC agent, the Administrative Specialist prints the narrative from the Astra Case Management System (ACM), the evidence from the LAA Evidence shared folder, and the license and violation history screens from the AS/400. If the case is coming from an outside agency, just the report and license and violation history screens are put together for review as a case file. The case file is given to the Assistant Attorney General who will review and determine if adminis-trative prosecution will occur and if so, assigns the appropriate fine and penalties. The file is then returned to the Administrative Specialist for preparation of the appropriate Notice and Waiver to the licensee. If the case is from an outside agency, the Administrative Specialist manually enters the case in ACM initiating the case number. The licensee may either enter a plea and pay the fine or request a hearing or do nothing. If the licensee enters a plea and pays the fine, the Administrative Specialist prepares a voucher in Ex-cel for the payment, completes data entry in ACM, AS/400 and two Excel spreadsheets, then hand carries the voucher and payment to Channel Management for processing. The case file is purged of unnecessary or duplicate materials and forwarded to the Licensing Unit for inclusion in the License file. The preference with a new system is to store the legal pleadings in the Adminis-trative Action and Case Management module to significantly reduce the amount of paper that is stored for ten (10) years. Further it would virtually eliminate the potential for documents to get misfiled and/or lost.

If the licensee requests a hearing, the Administrative Specialist prepares another Notice schedul-ing the phone Pre-Hearing Conference (PHC). Five (5) to seven (7) days prior to the PHC, the Legal Assistant organizes the case file for review by the AAG. The Director, AAG and Legal As-sistant attend the PHCs. The PHC may address all procedural issues concerning the hearing. If the licensee does nothing, the case is placed in a suspended state called Administrative Action Pending. Each month the LAA associates perform manual fine checks on a prepared list re-ceived from the Licensing Supervisor. If the licensee has outstanding fines, a note is entered in the AS/400 screen stating that LAA must be involved in the renewal process. Delinquent fines will be collected prior to renewal of a license. If a settlement is reached during the PHC, the PHC is converted to a conference hearing and an Initial/Final Order is drafted by the AAG for signature by the Director. If the Licensee fails to par-ticipate in the PHC, the AAG drafts a Proposed Default Order for signature by the Director. If no stipulations or agreements can be made during the PHC, the case will proceed for evidentiary hearing. When liquor drink or excise tax violation cases are identified by the Miscellaneous Tax Segment, they are forwarded to LAA. The Legal Assistant performs a review in ACM for previous or pend-ing cases involving the licensee. The Administrative Specialist manually enters the case in ACM, prepares the Notice for signature by the Director of ABC or Taxation, and schedules the PHC.


The licensee may either file and pay ALL delinquent liquor taxes and the fine or participate in the PHC. One (1) to two (2) days prior to the PHC, the Legal Assistant compiles tax information from Legacy (KATI and RTBI or RTS2), ACM and AS/400 for use during the PHC.

If a settlement is reached during the PHC, then the PHC is converted to a conference hearing and an Initial/Final Order is drafted by the Legal Assistant for signature by the Director. A case may also be settled prior to the PHC or evidentiary hearing. The AAG drafts a settlement agree-ment which is signed by the AAG and Director. The document is mailed to the Licensee and they must sign and return the original document to LAA within 30 days along with their fine. If they fail to comply with the settlement agreement, the Legal Assistant will draft an Order of Fine ordering the original fine to be paid as the original settlement agreement is now null and void. When cases are scheduled for evidentiary hearing, the Legal Assistant coordinates schedules for the hearing between the Director, AAG, Agents, attorneys and licensees. A Pre-Hearing Order is prepared by the Legal Assistant documenting the discussions from the PHC and scheduling the hearing. This also includes initiating subpoenas for any outside individuals, which are faxed and mailed to the officers or hand delivered by ABC agents. Five (5) to seven (7) days prior to the hearing, the Legal Assistant organizes the case file for final review by the AAG. The Director, AAG and Legal Assistant attend the Evidentiary Hearing. Following the hearing the AAG drafts Initial/Final Orders for signature by the Director. If the Licensee fails to participate in the hearing, a Proposed Default Order is prepared by the AAG for signature by the Director.

Anytime an Order is sent to the Licensee and they fail to comply with the terms of the Order, the liquor license will be suspended. The Legal Assistant or the Administrative Specialist scans the Order, attaches it to an e-mail and sends it to the ABC Agent assigned to the territory for en-forcement, the licensing representative responsible, and if it is a tax order, the Customer Repre-sentative from MTS. A note is placed in ACM and in the AS/400 and the status of the license is changed to “S”. Once the licensee has become compliant with the terms of the order, the original e-mail is resent notifying everyone that the license is no longer suspended. A note is placed in ACM and on the AS/400 and the status of the license is changed back to “A”. Fines are pro-cessed and the case is closed. Appeal stages are also tracked by the Legal Assistant: RECONSIDERATION: Licensee fails to participate in the phone Pre-Hearing Conference or Evi-dentiary hearing and a Proposed Default Order is issued and signed by the Director. Licensee makes a motion that the Proposed Default Order be vacated for cause. If granted, the case will return to the step it defaulted and proceed. If denied, the fines and penalties are ordered once again and a Default Order is prepared by the AAG or Legal Assistant for signature by the Direc-tor. APPEAL: ADMINISTRATIVE APPEALS OFFICE: Licensee files a Notice of Appeal. The Legal Assistant scans the case information and e-mails it to the Administrative Appeals Office. The Legal Assis-tant tracks the case as it moves through the office for any actions needed by the AAG. Upon the issuance of the Final Order Following Review, the information is entered in ACM and deadlines tracked for case closure. If they fail to file a petition for judicial review, the Legal Assistant pre-pares an Order of Fine for signature by the Director, ordering the original fines and penalties. DISTRICT COURT: Licensee is not satisfied with the outcome from the Administrative Appeals Office and files a Petition for Judicial Review. Once the Summons from the Court has been re-ceived, a copy of the case file is prepared by the Legal Assistant and a Reply is prepared by the AAG. Case deadlines and conference schedules are tracked throughout the process.

There remains a 60-day backlog primarily caused from personalizing each order in MS Word and the follow-up needed when a licensee fails to comply with an order and becomes suspended. Statute requires the Division to issue results of the PHC or Evidentiary Hearing within 30 days.


Another deadline that LAA must observe closely is the 30-day window from the time a Law En-forcement Officer discovers a possible liquor violation and submits a Standard Offense Report to LAA. These cases are placed in orange folders to signal staff that this case has short deadlines and it is handled rapidly in order to meet the statutory requirements and to preserve our oppor-tunity to prosecute the case. The process is not automated and moving paper throughout the department has at times resulted in a slow turnover of work or loss of ABC’s opportunity to prose-cute the alleged violation. Manual fine checks are completed when a person who has had a liquor license in the past ap-plies for a new liquor license. The Background Investigation associate notifies LAA via e-mail that a former owner is involved in a new application and LAA checks to ensure that previous li-censes do not have any delinquent fines. If they do, the fines must be paid prior to issuance of the license.

Data Input, Manual Procedures, Edits and Output Characteristics Most ABC processes contain a major manual element. The forms listed under Section 1.5.4 are available to customers from the KDOR website. However, they are printed off by the customer, filled out and then either scanned to email, faxed, post mailed or hand delivered to the ABC. The forms serve as the initial step in any ABC process. Some of the information is pulled from the forms and data entered into an AS/400 file, an Excel spreadsheet or a MS Access database. Some of the data does not have a corresponding place in the systems so in order to retain the in-formation, the paper documents have to be saved.

Additional manual tracking required for ABC business processes include;

• downloading data from the AS/400 to update the Enforcement Access database for agents and managers to easily monitor assignments and licensee contacts;

• handwriting forms for contacts made in the field for liquor licensees and then data enter-ing the information to the appropriate system upon return to home office;

• manual tracking of training conducted by enforcement agents; • completion of required documents from a template which includes monthly vehicle logs,

Standard Arrest Report forms and Standard Offense Report forms; • manual selection of KBI Disposition numbers from an access database by each agent to

assign to required SAR and SOR forms; • manual routing of request documents back and forth between office associates and en-

forcement agents via email and fax to process incoming requests for premise approvals, temporary extension of premises, permanent extension of premises, public functions, temporary permits, catered events and numerous other types of requests that require the licensee to request ABC approval and/or notify ABC prior to established deadlines;

• manual scanning of original request forms to save to the Network Folder; • manual tracking of these approved or denied requests in excel spreadsheets saved in a

Network Folder so field and office associates can both view; • creation of an investigative case narrative in a Word document; • and copying it into the existing ACM case; • manual collection of data from multiple sources in order to compile statistics for the ABC

Division which is time consuming and can be prone to inaccuracies;

Manual Process Description Data Entry Keying of data off Law Enforcement Reports and Lists From Misc. Tax

Segment initiating the case on ACM; forms received from licensees, permit-tees, or taxpayers;

Receiving Phone Calls

Customers call with questions about liquor laws, legal pleadings, com-plaints, etc.

Outgoing Phone Calls

Ad-hoc phone calls with licensees after researching their questions

Forms Personalize all Legal Pleadings with specific statutory language and fine


and penalty instructions. Vouchers Fine Payments each need a personalized voucher prepared to attach the

check to for processing by Channel Management. Labels for First Class Mail Envelopes

Staff type addresses into the Dymo label writer program to print labels for first class mail envelopes.

File Labels Each case file has a label which includes the case number, DBA name and Owner name on it.

Incoming Mail Some activities related to opening, sorting and distributing incoming mail would be eliminated with electronic filing.

Filing Forms are kept and filed after data entry because not all fields necessary to be retained are in the current system.

Calculation Fees are manually calculated for Licensees, CMB and Permits are not en-tered in the AS/400. The paper documents are stored.

Photocopy Photocopy all envelopes that are sent by the Case to have tracking numbers with the file.

Table of Permit Fees

Permit Type Permit Fee Code Permit Fee Non-Beverage Permit CLPR $2

Supplier Permit SLFE $25

Temporary Permit- Charitable Auction CLPR $25

Temporary Permit- On-Premise CLPR $25 per day

Temporary Permit- Porcelain Container CLPR $25 per day

Temporary Permit- Special Event (On-Premise) CLPR $25 per day

Temporary Permit-State Fair CLPR $25 per day

Farmer’s Market Sales Permit --- None

Packaging and Warehouse Permit CLPR $2,500 Fee Calculations There are currently no on-line calculations in the system. The Customer Representatives us a table to manually calculate the fees and the probability of error not only exists but in some cases it has a very high impact for the Department. Fees will be calculated by multiplying the number of licenses, per license type, by the licensee fee plus registration fee amounts. There is a 10% amount that will only be added to the 2nd half if paying for a license fee for one year only. Fee calculation should be automated in a new system and table driven so that administrators can make table updates. Input forms This section includes Liquor License and Gallonage Tax forms. The number of data fields is listed in the third column.

Form Number

Form Description Number of

Fields ABC-73 Monthly Report of On-Premise Sales 21 ABC-160 Irrevocable Consent to Jurisdiction 18 ABC-801 Financial Disclosure 20 ABC-802 Zoning 18 ABC-805 Employee Registration 10


Form Number


Fields ABC-807 Management Services Information 63 ABC-808 Designation of Agent and/or Process Agent with Power of Attorney 71 ABC-809 Notice of Ownership Change 39 ABC-810 Notice of Officer Change 202 ABC-301 CMB Quarterly Report 13 ABC-303 State CMB Stamp Order Form 18 ABC-304 Application Check List 12

ABC-205 Individual’s Gallonage Tax Return and Instructions for Alcoholic Liquor Trans-ported from Outside the United States into Kansas

44

ABC-206 Individual’s Gallonage Tax Return and Instructions for Alcoholic Liquor Trans-ported into Kansas from Within the Borders of the United States

37

ABC-207 Individual’s Gallonage Tax Return and Instructions for Wine Purchased at any Out-Of-State Winery

38

ABC-215 Distributors’ Monthly Gallonage Tax Return and Instructions 62 ABC-216 Distributors’ Gallonage Tax Voucher 17 ABC-217 Distributors’ Monthly Report of Purchases 25 ABC-218 Distributors’ Monthly Report of Purchases – Continuation page 21 ABC-219 Distributors’ Monthly Report of Sales 26 ABC-220 Distributors’ Monthly Report of Sales – Continuation page 21 ABC-255 Affidavit Regarding 60% of Products Made in Kansas – New License 8 ABC-257 Affidavit Regarding 60% of Products made in Kansas – Renewal of License 11 ABC-274 Monthly Report of Alcoholic Liquor Received from a Kansas Manufacturer 20 ABC-272 Microbrewery Gallonage Tax Return and Report 24 ABC-273 Alcohol and Spirits Manufacturer Monthly Gallonage Tax Return and Report 53 ABC-1000 Supplier Permit Instructions and Voucher 31 ABC-1015 Farmers’ Market Sales Permit Application and Agreement 18 ABC-170 Keg Registration Form 13 ABC-171 Keg Tag Order Forms 25 ABC-172 Request to Transfer Keg Tags 30 ABC-173 Return of Keg Tags 25 ABC-22 ABC Liquor License Business Name Change 67 ABC-800 Kansas Liquor License Application 220 ABC-803 Escrow Bond for Liquor Licenses Issued Under the Liquor Control Act 24 ABC-804 Surety Bond for Liquor Licenses Issued Under the Liquor Control Act 26 ABC-806 Request for Permanent Premise Approval 17 ABC-811 Notice of Intent to Sell 33 ABC-812 Request to Sell Inventory 35 ABC-827 Request to Extend License Term 28 ABC-825 Request for Public Function 26 ABC-826 Notification of Catered Event 20 ABC-828 Packaging and Warehouse Facility Permit Application and Agreement 18 ABC-830 Temporary Permit Application and Agreement 43 ABC-834 State Fair Temporary Permit Application and Agreement 49 ABC-835 Non-Beverage Permit Application and Agreement 27 ABC-837 Kansas Non-Beverage User Monthly Report of Purchases 22 ABC-842 Request to Participate in a Special Event 39 ABC-1003 Kansas Suppliers’ Monthly Report of Shipments to Kansas Distributors 23


Form Number


Fields ABC-1013 Farm Winery Monthly Gallonage Tax Return and Sales Report 63 ABC-1025 Microbrewery Monthly Gallonage Tax Return and Reports 48 ABC-1040 Kansas Special Order Shipping Annual Gallonage Tax Return and Report 41 ABC-816 Request for Temporary Off of Premise Approval 17 ABC-817 Request for Temporary Extension of Premise Into Special Event 27 ABC-1043 Microdistillery Franchise Agreement New

1.5.5 Liquor Licensing, Enforcement, CM and LAA Current Personnel Requirements


Licensing (Including Gallonage Tax)

Public Service Administrator 100 1

Customer Representative Seniors 100 6

Customer Representative Specialists 100 2

Senior Administrative Assistant 100 1

Management Systems Analyst 50 .50

Liquor Enforcement

Chief Enforcement Officer 100 1

Enforcement Agents 100 18

Management Systems Analyst 50 1

Licensee Administrative Actions

Assistant Attorney General 100 1

Legal Assistant 100 1

Senior Administrative Assistant 100 1

Information Services

Application Programmer II .25 .25

Total FTE 33.75 1.5.6 Liquor Licensing, Enforcement, Case Management and LAA Current System Software

ABC uses the following systems.

Liquor and Permit Licensing – COBOL AS/400 Application and Manual Process Background Investigation – COBOL AS/400 Application and Manual Process Liquor Enforcement – COBOL AS/400, Microsoft Access, Microsoft Word and Excel Gallonage Tax – Manual Process, Microsoft Word, COBOL AS/400, EDI Server Licensee Administrative Actions – COBOL AS/400, MS Excel Spreadsheets, Oracle for ACM Brand Registration and Label Approval – Recently converted to PRO by ShipCompliant. The new system must interface with PRO for Licensee data. Cereal Malt Beverage State Stamp – MS Excel Spreadsheet and Manual Process Keg Tags – Manual Process and COBOL AS/400 Keg registration data is stored in table ABKEG on the AS/400. There are 5,700 records in this


table. The retail liquor stores in Kansas are required to tag each keg that is sold. Those tags are provided by ABC and inventory is tracked in an AS/400 table. There is no charge for the tag, but it serves to identify who sold the keg should it be found to be used by underage persons Tags can be ordered through the SMART system and processed manually by ABC on input form ABC-170. Reconciliation is manual. The following table provides a snapshot of the primary software elements utilized within the current system.


AS/400 COBOL and CL Web Browsers (Internet Explorer) Current with Kansas.gov requirements Lotus© Notes Email Application Internal and external e-mail correspondence. Enforcement Database Microsoft© Access 2003 Desktop Operating System Microsoft© Windows XP Word Processor Microsoft© Word 2010 Spreadsheet Microsoft© Excel 2010 Transfer of some Gallonage Tax Electronic Data Interchange (EDI) Camera Software Snap

1.5.7 Liquor Licensing, Enforcement, CM and LAA Current System Hardware and Infrastructure The following table provides a snapshot of the primary hardware elements utilized within the current system.

Hardware Elements of the Current System Element Description

Database Server IBM AS/400 Fax/Email Server IBM Lotus Notes Workstations and Laptops Dells AS/400 Printers Various Manufacturers Workstation printers Various Manufacturers Firewalls and Routers Various Manufacturers Web Server KSREVENUE.org (forms storage) Cameras Kodak, Olympus

1.5.8 Liquor Licensing, Enforcement, CM and LAA File Layouts and Conversion Requirements

On the AS/400, tables for LAA, Liquor Licensing and Enforcement are linked and accessed pri-marily by the License Number, a 14 length character field. There are approximately 13 tables comprising the database. When including views and logical files the count is approximately 75. The fields are identified by name, size and type in RFP Appendix 7. A flow diagram of the tables is below. This shows the License database (ABLICENSE) is the primary table and the content of the files centers around License Information. This table has 23,200 records. There are many inactive records in the table that have not been deleted or ar-chived. Fields captured contain License Number, Entity information, Owner information, Sales-person, DBA information, status, mailing information, violation history, Keg information and Tem-porary Permits.


1.5.9 Liquor Licensing, Enforcement, Case Management and LAA Solution Description

The K-CRAFTS Project Team has researched several known alternatives. The desire is for an integrated, web-based system to handle the licensing, taxation, enforcement, case management and prosecution of violations for Liquor.


1.5.10 Liquor Licensing Electronic and Paper Payments, Accounting and Distribution

1.6 PROGRAM DESCRIPTION AND REQUIREMENTS – Liquor Taxes

1.6.1 Liquor Drink and Liquor Enforcement Tax Program The Division of Taxation (Miscellaneous Tax Segment) is responsible for taxation, administration, and maintenance of Liquor Drink and Liquor Enforcement taxes. This includes registration, return and payment processing, bonds, adjustments, correspondence, refunds and business closures. Liquor Drink Tax and Liquor Enforcement Tax are collected and paid by various liquor licensees or permit holders. Liquor Drink tax is imposed for the privilege of selling alcoholic liquor by any club, drinking establishment, caterer, temporary permit holder, or any other licensee selling alco-holic liquor for on-premise consumption. Liquor Enforcement tax is imposed on the sale of alco-holic liquor by retailers (liquor stores), farm wineries, microbreweries or any other licensee selling alcoholic liquor for off-premise consumption. Liquor Enforcement tax is also imposed on the sale of alcoholic liquor or cereal malt beverages by distributors to clubs, drinking establishments or ca-terers in Kansas. There are separate returns for Liquor Drink tax and Liquor Enforcement tax. Forms used are: Liquor Drink Tax Return (LD-1) (Rev. 06/08) and Liquor Enforcement Tax Return (LE3) (Rev. 04/05). The tax for each liquor tax type is reported monthly on paper returns or online through web-file. Currently, there are approximately 2,302 active Liquor Drink tax ac-counts and 1,340 Liquor Enforcement tax accounts. A modern, integrated Liquor Tax system will reduce manual processes, improve account data quality, eliminate a dual-system accounting method, improve processing time and ensure accu-rate collection, reporting, and distribution of tax. A new Liquor Tax system, with web-file interfac-es, would change the current antiquated accounting system into a more efficient and effective tool for maintaining liquor tax accounts and for the collection and accurate billing to liquor tax custom-ers. It will make account and owner information more readily available and allow associates to view required documents online. Delinquent accounts will be more easily identified to refer for further legal action.

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Liquor Tax Revenue The Liquor Enforcement Tax and Liquor Drink Tax revenue for fiscal years 2008 – 2012 are shown below:

Tax Type FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Liquor En-forcement

$50,020,773 $53,836,004 $54,854,273 $56,224,767 $58,878,961

Liquor Drink $35,639,204 $36,578,860 $35,764,829 $36,050,400 $38,158,615 Total Tax Revenue

$85,659,977 $90,414,864 $90,619,102 $92,275,167 $97,037,576

1.6.2 Liquor Tax Requirements Please see Liquor Tax Functional Requirements in - Appendix 1.

1.6.3 Liquor Tax Internal and External Interface Requirements

Please see Interface Requirements in – Appendix 5. 1.6.4 Liquor Tax Existing System Description

Liquor tax accounting currently involves two separate systems. The Legacy system is the initial entry point for returns and data. The “header” information contained in legacy is limited and the account information is misleading. ARMS is the system the Legacy information flows into. ARMS then details and summarizes information by tax period. Out-of-balance problems often occur between the two systems, which results in time-consuming research of the account, as well as manual correction of the account. The current system also has automated penalty and interest calculation or assessment errors which require manual adjustments. Abatements and assessments take three (3) days to process fully and often these adjustments result in additional adjustments due to penalty and interest problems. ARMS does not always process credits appropriately. This results in additional manual account maintenance adjustments. The current legacy system has a limited number of details that can be posted. Once the limit has been reached, any subsequent entries or adjustments fail with errors. Consolidations must be done, which removes some of the tax account history. Account periods in ARMS also have a lim-itation on the number of details. Once the limit has been reached, the details must be consolidat-ed – again, removing some of the account history. Screen-prints of the consolidated details are maintained. If a Liquor Drink tax return/payment is posted to an account that has the wrong taxing jurisdiction assigned, a three to four step process must occur before the correction is made. Also, if a return is transferred from one filing period to another, the change in ARMS occurs within a day or two. A date change in the Legacy system can take one or two days or up to three months to be pro-cessed, depending on when the funds were distributed. There are problems with the information in ARMS interfacing into the case management system used to track collections. This results in billings with incorrect information being sent to custom-ers and, in some cases, customers not getting billed when they should causing statute of limita-tions issues. An integrated case management module for tax collection tracking is required.


Currently, pay plan fees are billed in ACM, but do not show on the tax account, nor do returned check fees. When pay plan fees are paid, an associate must contact a programmer to have the fee removed from the ACM billing system. When returned check fees are paid, an associate must contact Revenue Accounting so they can update their records. If credit on a liquor account needs to be transferred to a tax type in another system, such as sales tax, withholding tax, etc., an associate must contact Revenue Accounting to initiate the transfer. There is not an automated internal offset of credits between liquor taxes and other tax types. As-sociates must manually research all tax type accounts for any balances or non-filed periods. Any data reports or queries must be requested by Miscellaneous Tax for a programmer to write.

1.6.5 Liquor Tax Current Personnel Requirements

Position and Role % of time for Staff Total FTE Miscellaneous Tax

Public Service Administrator II 75% .75 Customer Representative Specialist 30% .30 Customer Representative Senior 100% 1 Customer Representative Senior 80% .80 Customer Representative Senior 75% .75 Customer Representative 10% .10

Audit Auditor 50% .50

Information Services Programmer 100% 1

Revenue Accounting Accountant I 33% .33 Total FTE 5.53

1.6.6 Liquor Tax Current System Software

Software Elements of the Current Systems Used by Liquor Taxes Element Description

Extra! Personal Client Mainframe for Legacy and ARMS AS400 COBOL and CL Web Browsers (Internet Explorer) Current with Kansas.gov requirements Desktop Operating System Microsoft Windows XP Lotus Notes E-mail Application Internal and external e-mail correspondence Word Processor Microsoft Word 2010 Spreadsheet Microsoft Excel 2010 Label Maker Dymo Label

1.6.7 Liquor Tax Current System Hardware and Infrastructure

Hardware Elements of the Current Systems Used by Liquor Taxes Element Description

Database Server IBM AS400 and Mainframe Workstations Dell Workstation printer Hewlett Packard Laser Jet, HP Deskjet, Dymo Label Firewalls and Routers Domain Controller Web Server KSREVENUE.org E-mail Server IBM Lotus Notes


1.6.8 Liquor Tax Current File Layouts and Conversion Requirements

With assistance from KDOR developers, records for 2008 through 2013 (or five (5) full tax years, at a minimum) must be converted in order to ensure continuation of audits, charge-off, and amended/additional return processing in the new system. In addition, it will be necessary to con-vert any liquor tax periods containing a balance due or credit, any non-filed periods, and any peri-ods coded as being on a payment plan.

For File Layouts please see Liquor Taxes in - Appendix 7. 1.6.9 Liquor Tax Solution Description

The solution must allow for integration of other miscellaneous taxes into the new tax system in the future either by KDOR developers or by the vendor. These miscellaneous taxes would in-clude Transient Guest tax, Tire Excise tax, Vehicle Rental Excise tax, Environmental Surcharge and Solvent Fee (Dry Cleaning), Water Protection/Clean Drinking Water Fee, Stock and Industrial Use Water Fee and Motor Fuels. Proposers are asked to present an estimated quote for adding these additional taxes after implementation of the K-CRAFTS solution. Preference will be given to Proposers who can offer a fully integrated solution.

1.6.10 Liquor Tax Electronic and Paper Payments, Accounting and Distribution

For Requirements please see Liquor Tax Accounting and Distribution Requirements in - Appendix 1.

1.7 PRGRAM DESCRIPTION AND REQUIREMENTS – CIGARETTE AND TOBACCO

1.7.1 Cigarette and Tobacco Program Over the years the ABC has been assigned other duties, including conducting the compliance checks required under the federal Synar amendment. Under Synar, the state must maintain a minimum compliance rate of 80% (verification for non-sales of cigarettes to minors) or risk losing a portion of the block grant monies allocated to Department of Children and Family (DCF) for substance abuse programs. During FY 2011 ABC Inspectors and Underage Cooperating Individ-uals performed 330 random buy attempts to measure compliance under the Synar Amendment resulting in 20 sales for a 93% compliance rate. In April 2007, KDOR entered into an interagency agreement for cigarette and tobacco enforce-ment activities with DCFS; as a result of this agreement, the Cigarette and Tobacco Enforcement (CATE) Team was created. This team resides in the Alcoholic Beverage Control Division and is funded by DCFS based upon funding availability. For FY 2008, SRS provided the funding for ABC to hire and sustain five inspectors and one administrative support staff. An attorney was added to the team late in the fiscal year. In FY 2009, DCFS provided funding to hire three addi-tional inspectors. In FY 2010, DCFS provided funding to hire an additional administrative assis-tant. In FY 2011, DCFS decreased the funding by $75,000 and an additional decrease of $202,239 was applied for FY2012. As of this report, there are ten (10) inspectors, including one (1) lead inspector assigned to the CATE Team. The objective of the CATE Team is to strictly enforce laws relating to the sale of cigarettes and tobacco products to minors, identify other cigarette and tobacco licensee violations and return the violators to compliant status. A retail counter cigarette license is required for any business selling cigarettes over-the-counter. The license fee is $25 for each location and must be renewed every two (2) years. Each cigarette vending machine in Kansas must have a permit. Permits are $25 per machine, and must be renewed every two (2) years. Cigarette vending machine owners must also have a cigarette vending machine operator’s master license (no fee required.) A tax is im-


posed on all cigarettes sold. The wholesale dealer first receiving the cigarettes shall pay the tax. The CATE Team conducts controlled buy visits at all youth accessible retail licensee locations through Underage Cooperating Individuals. Targeted enforcement revisits are made at locations that have failed prior enforcement visits. CATE enforcement activities for FY 2008 – FY 2012 are below.

On September 9, 2010, ABC was awarded a contract with the Federal Food and Drug Admin-istration for the enforcement of certain federal laws pertaining to the sale and advertising of ciga-rettes and smokeless tobacco particularly to youth. This is an annual contract subject to renewal on a yearly basis. DCFS has not identified funds to maintain program enforcement at the current service level for FY 2012 providing even more reason to automate as much of the Inspectors' work as possible.

Tobacco Enforcement

Complaints Investigating reports of cigarette-tobacco violations not investigated by CATE inspec-tors.

Controlled Buy - Chosen Tobacco

Performing a tobacco controlled buy investigation that is NOT a Synar assignment. Performed by CATE Inspectors; referred to CATE LAA for administrative prosecution and clerk referred to city or county attorney, or district attorney for criminal prosecu-tion.

Controlled Buy - Synar

Performing controlled buy investigations at tobacco licensees as randomly assigned by Greenbush or other DCFS contractor.

Other Investigating reports of other cigarette-tobacco activities not captured in another category.

Controlled Buy Random

Performed by Local Law Enforcement Agents and referred to CATE LAA for Adminis-trative prosecution.

1.7.2 Cigarette and Tobacco Product and Case Management Requirements

Proposers are encouraged to bid the Cigarette and Tobacco Product Taxation and Licens-ing modules as part of the integrated solution. For Enforcement Requirements please see CATE Functional Requirements in - Appendix 1.


1.7.3 Cigarette and Tobacco Product Interface Requirements The system must either interface with Cigarette and Tobacco VB and ASP.Net database or replace it. Preference will be given to Proposers who can fully integrate the Tobacco licensing, tax and enforcement. 1.7.4 Cigarette and Tobacco Product Existing System Description

Licensee Administrative Action - CATE LAA prosecutes administrative violations for Cigarette and Tobacco Enforcement by the inspec-tors, local law enforcement and other divisions within the KDOR. LAA assesses and collects fines for these violations. The licensee may either enter a plea and pay the fine OR request a hearing OR do nothing. If the licensee enters a plea and pays the fine, the Administrative Specialist prepares a voucher in Ex-cel for the payment, completes data entry in the C/T database, scans the voucher into the system and logs it into an Excel spreadsheet, copies the voucher, then hand carries the voucher and payment for processing. If the licensee requests a hearing, the Administrative Specialist prepares another Notice schedul-ing the telephonic Pre-Hearing Conference. Five (5) to seven (7) days prior to the PHC, the Ad-ministrative Specialist organizes the case file for review by the CATE Attorney. The CATE Attor-ney and Administrative Specialist attend the PHCs. The PHC may address all procedural issues concerning the hearing. If the licensee does nothing, the case is placed in a suspended state called Administrative Action Pending. If the licensee has outstanding fines, a note is entered in the C/T database that LAA needs to be involved in the renewal process. Delinquent fines must be collected prior to renewal of a license. If a settlement is reached during the PHC, the PHC is converted to a conference hearing and an Initial/Final Order is drafted by the CATE Attorney for signature by the Director of Taxation. If the Licensee fails to participate in the PHC, the CATE Attorney drafts a Proposed Default Order for signature by the Director of Taxation. If no stipulations or agreements can be made during the PHC, the case will proceed for evidentiary hearing. When cases are scheduled for formal hearing, the Administrative Specialist coordinates sched-ules for the formal hearing schedule between the Director of Taxation, CATE Attorney, Inspec-tor(s), attorneys and licensees. A Pre-Hearing Order is prepared by the Administrative Specialist documenting the discussions from the PHC and scheduling the formal hearing. Five to seven days prior to the formal hearing, the Administrative Specialist organizes the case file for final re-view by the CATE Attorney. The Director, CATE Attorney, Inspectors and Administrative Special-ist attend the formal hearing. Following the formal hearing the CATE Attorney drafts Initial/Final Orders for signature by the Director. If the Licensee fails to participate in the formal hearing, a Proposed Default Order is prepared by the CATE Attorney for signature by the Director.

Appeal stages are also tracked by the Administrative Specialist: RECONSIDERATION: Licensee fails to participate in the PHC or formal hearing and a Proposed Default Order is issued. Licensee makes a Motion that the Proposed Default Order be vacated for cause. If granted, the case will return to the step it defaulted and proceed. If denied, the fines and penalties are ordered once again and a Default Order is prepared by the CATE Attorney or Administrative Specialist for signature by the Director of Taxation. A snapshot of reports used by Inspectors for Cigarette and Tobacco Enforcement is below.


1.7.5 Cigarette and Tobacco Product Current Personnel Requirements


ABC

Inspectors 100 10


Lead Inspector 100 1

Administrative Specialist 100 3

CATE Attorney 100 1


Application Programmer Analyst II 100 1

Total FTE 16.50 1.7.6 Cigarette and Tobacco Product Enforcement Current System Software Written in ASP.net, the code-behind the pages is VB.net 1.7.7 Cigarette and Tobacco Product Enforcement Current System Hardware and Infrastructure .Net Server Environment 1.7.8 Cigarette and Tobacco Product Enforcement File Layouts Conversion Requirements Tables and fields are available upon request. 1.7.9 Cigarette and Tobacco Product Enforcement Solution Description

The K-CRAFTS Project Team has investigated all known alternatives. Part of the investigation included interviewing peers at conferences, talking with other states and reviewing demonstra-tions of viable products. Based on that review and an analysis of Kansas’ specific needs, the team selected a web-based Commercial Off-The-Shelf solution as the best alternative. This alternative will allow for the use of proven technology that will require less deployment time yet will meet the Department’s and the customers’ needs. Customizations will give the Department of Revenue, Division of Alcoholic Beverage Control the flexibility it needs to perform its unique processes and remain compliant with Kansas statutes. Preference will be given to Proposers who offer a fully integrated system where modules can be added at a later date. Proposers are encouraged to bid the cost of adding additional tax types in-cluding Cigarette and Tobacco.

1.7.10 Cigarette and Tobacco Electronic and Paper Payments, Accounting and Distribution API to the .Net database for Cigarette and Tobacco Licensing and Tax to manage distribution.


1.8 PROGRAM DESCRIPTION AND REQUIREMENTS – DRUG TAX AND SEIZED PROPERTY

1.8.1 Drug Tax, Seized Property and Case Management Program

Enforcement - Drug Tax Program ABC Agents are responsible for levying drug tax assessments on seized and unstamped mariju-ana and controlled substances throughout the State of Kansas. The County Drug Tax Fund was established to comply with the requirements of K.S.A. 79-5211, K.S.A. 79-5201 et seq. and amendments thereto. The statute requires the Department to remit a portion of the monies re-ceived in connection with seized property to local participating law enforcement agencies. The local proportionate share of the amounts collected was increased from 50% to 75% under 1994 House Bill 2613. The remaining 25% is deposited in the State General Fund. Assessments and amounts collected are in the following table:

Currently the system does not include an Accounts Payable or an Accounts Receivable module. A portion of this application was converted to ASP.NET from 4D during April of 2011. The Seized Property database discussed more in-depth later under Enforcement is still in MS Access

There are approximately 3,500 taxpayers who owe monies to the State of Kansas for drug tax assessments. Because a portion of the monies received is paid out to local law enforcement, it is imperative to ensure correct and accurate tracking of dollars received under this tax. Multiple systems that are not integrated are used by all to manage the drug tax program includ-ing:

• Astra Case Management (ACM) system - Oracle based • Seized Property database - Access database residing on a shared server, supported by

KDOR • Microsoft Access database - written and managed by an agent, not supported by KDOR • Microsoft Excel spreadsheets - for management of taxpayer information, auction and

seized property activities - set up and managed by individual users • Microsoft Word documents - for correspondence and legal pleadings - set up and man-

aged by individual users

To automate the drug tax process, an integrated system is needed that provides drug tax record management; accounts receivable including distribution of monies owed to cities and counties; generation of documents and correspondence; tracking of legal actions taken; generation of re-ports (existing and new); acceptance of on-line payments by taxpayers; attaching images of tax-payer files; management of property seized with the ability for records to be searched, sorted, displayed and printed; and automation of auction activities.

Upon identification of possession of a controlled substance or marijuana by local law enforcement agencies, an agent is notified and requested to issue a drug tax assessment which includes the tax and penalty against the taxpayer. The agent arrives on the scene and manually completes a drug tax assessment and tax warrant. The agent then serves these papers to the taxpayer and, if the taxpayer is unable to pay the assessed amount at that time, can proceed to seize property. The agent hand writes the description of each piece of property seized on the Tax Warrant or an Evidence form and obtains the signature of the taxpayer on the form.


If the agent is not available to make a personal assessment, the local law enforcement agency provides a full report of the drug raid to the agent and the agent will complete the required docu-ments at their home office and either deliver to the taxpayer if incarcerated or mail to the last known address. Upon return to the agent’s home office, the agent enters the taxpayer information in ACM to gen-erate a case number that is required to enter the case information in the Access database, which is done next. From the Access database, the agent selects which forms to print or save. As initial notification of the assessment to the Drug Tax Administrator, the agent scans and saves to the Shared Folder/Incoming Information from Agents folder or emails to the Administrator who saves the documents to that folder: Drug tax violator report, assessment, tax warrant listing property seized if applicable, certificate of mailing if applicable and narrative to the Drug Tax Administrator. These actions are to be completed within 48 hours of the drug tax assessment. Unless the as-sessment is paid in full by the taxpayer at the time of assessment, the agent must file the tax war-rant with the District Court and obtain a file stamped copy to be placed in the case file in order to seize property in the future to satisfy the assessment/debt.

The Drug Tax Administrator uses the Incoming Information from Agents folder as a worklist to print documents for the hard copy file and to enter the new assessments into the Drug Tax Sys-tem. After printing the documents, a hard copy file is created writing the social security number and name to write on the label Upon receipt of a new drug tax assessment with seized monies, the Drug Tax Administrator en-ters the case information into the drug tax database, prepares a deposit voucher and forwards it to Channel Management, scans the Courier Transmittal Voucher and copy of Remittance Vouch-er with check attached and saves them in the ABC Drug Tax Deposit and Refund Folder. The Drug Tax Administrator utilizes several Excel spreadsheets and Word document forms/templates to manage the cases through the various possible courses a case can take. The taxpayer has 15 days to appeal the taxpayer assessment and, if an appeal is received timely, the file is referred to the Drug Tax Attorney for initial negation of settlement with the taxpayer or their legal representative. If an agreement is made, the Drug Tax attorney generates correspondence to the taxpayer or legal representative outlining the terms of the settlement agreement that have been agreed upon. If an agreement is not made, the Drug Tax attorney schedules a telephone conference and generates correspondence to notify the taxpayer or legal representative with the date and time of that hearing. At the telephone hearing, the Hearing Officer listens to both sides and issues a decision. The drug tax attorney generates correspondence to the taxpayer or legal representative outlining the decision by the Hearing Officer and a copy of this is placed in the hard copy file. In some cases, the tax debt is certified with the Department of Administration, Setoff Unit to col-lect funds being paid to the taxpayer by other state agencies. Whenever any action is taken or contact is made with the taxpayer, the Drug Tax Administrator updates the drug tax database with that information. In addition to setting up new drug tax cases, the Administrator processes payments received daily from payment plans which requires creating a Remittance Voucher for each payment and one Courier Cash Transmittal (deposit voucher) for each drug type listing all taxpayers and amounts received. A copy of the deposit voucher, Remittance Voucher and the check is scanned into a folder before forwarding them to Channel Management for deposit. Once the deposit is made, a copy of the Remittance Voucher, deposit slip and deposit voucher is returned to the Drug Tax Administrator. The Drug Tax Administrator then updates the appropriate taxpayer’s records in the database and verifies that all checks are accounted for by generating a Monthly Collections Report. At the end of each month, all payments must be reconciled with Revenue Accounting to verify the amounts deposited. When the reconciliation of the Monthly Payments Report is com-


plete, a Monthly Distribution Report is sent to Revenue Accounting for reconciliation. The Month-ly Distribution Reports are then used by Revenue Accounting to create the Quarterly Distribution Report. After this report is created, it is to be sent to the Drug Tax Administrator for review prior to checks being printed and distributed. (This is not currently happening but will be discussed with Revenue Accounting in the near future.) At the end of each quarter, the amounts being dis-tributed to local law enforcement agencies must be verified for accuracy before distribution is made.

If property was seized for repayment of the debt, the agent enters all the taxpayer contact infor-mation along with each piece of property reflected on the Evidence form in the Seized Property database. (Note – cash is not entered and tracked in this database.) At completion of appeal rights, the seized property is either auctioned or returned to the taxpayer based upon the taxpay-er’s ability to pay the assessment. From the Seized Property database, agents can see and print a list of property, but cannot export or copy and paste the data to a word document to meet the requirements of the pre-auction notification or for other tracking purposes. As a work around, an agent manually tracks the property being auctioned and related auction or property expenses on spreadsheets to provide details to the Drug Tax Administrator documenting the property sold and the amount received for each item, auction and miscellaneous expenses, and property not sold. Pre-auction activities include vehicle title searches to verify the taxpayer’s ownership of the vehi-cle, vehicles re-titled to KDOR, Public Notices published in appropriate newspapers, and notice mailed to all taxpayers of seized property being placed in the auction. Post-auction activities by the agent include changing the status of the property auctioned in the Seized Property database, updating the various auction Excel spreadsheets and forwarding the auction results to the Drug Tax Administrator for processing. Post-auction activities by the Drug Tax Administrator include issuing legal documents in Word to the taxpayer, entering payments received for each taxpayer’s property in the drug tax database and creating a remittance voucher and a deposit voucher identifying each taxpayer’s amount being deposited so that the appropriate distribution can be made to the local law enforcement agency who initiated the drug tax case. Then the Drug Tax Administrator applies the proper amount to each drug tax violator’s account history in the database. A scanned copy of the Auction Lot List, Vehicle Authorization forms, cop-ies of the Public Notices and the Excel spreadsheet of auction funds are saved by scanning them into a folder. Hard copies of all are also kept in the drug tax files. Upon full payment or settlement of each case, the Drug Tax Administrator must do the following: close the case in ACM and set status to Inactive, update the drug tax database with status and enter history notes, update Department of Administration Setoff Application, create and mail a Satisfaction of Judgment and cover letter to the drug tax violator or their attorney and move the scanned documents in the Shared Folder from Open Cases to Closed Cases. In addition, the hard copy case files are transferred from filing cabinets to storage boxes for storage according to the retention schedule. An inventory of all case files is created in a Word document for each storage box and placed in each box as well as saved in the Shared Folder.

The requirement to utilize multiple applications and databases that do not interface with one an-other is the biggest hindrance of the Drug Tax program. It does not have a front end for agents to setup cases in the system and does not have accounts receivable or accounts payable functions. Associates must set up and use different forms and spreadsheets to compensate for the lack of an integrated system, which creates more work for ABC staff and less accuracy. The application is also lacking the option for taxpayer’s to remit payments electronically. The new system must consolidate multiple systems and eliminate manual processes.

1.8.2 Drug Tax, Seized Property and Case Management Requirements

For Requirements please see Drug Tax Functional Requirements in - Appendix 1.


1.8.3 Drug Tax, Seized Property and Case Management Interface Requirements

Please see Interface Requirements in - Appendix 5. 1.8.4 Drug Tax, Seized Property and Case Management Existing System Description

The database for tracking seized property is a MS Access DATABASE that multiple people up-date.

1.8.5 Drug Tax, Seized Property and Case Management Current Personnel Requirements


Drug Tax Program

Drug Tax Attorney 50 .50


Collector Senior 100 1


Application Programmer Developer II .25 .25

Total FTE 2.25 1.8.6 Drug Tax, Seized Property and Case Management Current System Software

Drug Tax – ASP and VB.Net, MS Access Databases and MS Excel Spreadsheets Seized Property Database – MS Access 2003 in shared mode

1.8.7 Drug Tax, Seized Property and CM Current System Hardware and Infrastructure .Net Server Environment and Spreadsheets 1.8.8 Drug Tax, Seized Property and CM Current File Layouts and Conversion Requirements Convert the Drug Tax ASP and VB.Net data. 1.8.9 Drug Tax, Seized Property and Case Management Solution Description

The Drug Tax system must be integrated with Enforcement, Administrative Action and Case Management and have a front end for Agents to enter cases into the system. It must manage the seized property inventory and have built in accounts receivable and distribution functionality. It must be compatible with current hand held devices for access by agents in the field.

1.8.10 Drug Tax, Seized Property Electronic and Paper Payments, Accounting and Distribution Please see requirements under Drug Tax Functional Requirements in the Functional Re-quirements Appendix 1.

1.9 Requirements Applicable to all Applications

For Functional Requirements please see All Application Requirements in– Appendix 1.

For Technical Requirements please see – Appendix 2.


RFP SECTION 2: SCOPE AND APPROACH

The development approach consists of purchasing commercial-off-the-shelf software and then cus-tomizing the base code. Steps in the approach are listed below:

1. Gap Analysis – The vendor and KDOR staff will perform a gap analysis to define the K-CRAFTS

requirements addressed and not addressed by the vendor’s COTS solution. The gap analysis will identify the vendor’s core capabilities and compare them to KDOR’s system requirements. The plan to close the identified gaps will be the basis of the design activities.

2. Design Activities – The vendor will work with KDOR staff to perform the detailed design of its product customization to meet the requirements that are not directly met by its base modules or those of its subcontractors. The design activities will produce the system design, including doc-umentation of network and system interfaces, testing plans, maintenance and operations plans, disaster recovery plans, system security plans, data migration plans, training plans and deploy-ment plans. During this phase of the proposed project some business processes may be rede-signed and documented. The gap analysis and design activities will be part of the project plan-ning phase.

3. Configuration – The vendor will configure the system and its interfaces to meet requirements.

4. Data Conversion and Migration – The vendor and KDOR staff will execute the plan for the con-version of existing data. The plan will identify data entity/data element mapping, data validation routines and quality assurance tests. Identifying data clean-up activities. Data modeling activities would ensure all necessary fields were planned for and converted.

5. Testing/Training Environment – The vendor and KDOR staff will test the configuration in a test environment, document results and make any modifications necessary.

6. Controlled Production Environment – Once the solution passes the pre-installation tests, the ven-dor will install and configure the solution in the production environment for use by KDOR staff and a select group of customers.

7. Full Production and Signoff – KDOR Staff will continue to test the production solution using the acceptance testing documentation and open the system up to all customers after approval and signoff.

Data Conversion and Migration, Testing/Training, Controlled Production and Full Production will all be part of the execution phase.

8. The Post-Implementation Evaluation Report will be part of the project close-out phase.

2.1 Testing Plan

Development of a detailed test plan will be the responsibility of the vendor working closely with the project team. The plan will be created as part of the design phase. The testing plan will include unit, module and integration testing with roles and responsibilities spelled out within the plan. KDOR will identify subject matter experts (SMEs) to provide the best testing resources. All K-CRAFTS solution interfaces will be end-to-end tested including testing of input, output and data validation routines. The test plan will include normal data entry, reporting, security violations, disaster recovery scenarios and back-up testing. Testing plans and subsequent testing activities will be close-ly coordinated between the vendor and the K-CRAFTS project team.


2.2 Resource Requirements

KDOR Senior Management is committed to assigning appropriate staff to oversee the procurement and implementation of the proposed solution. They are also committed to ensure smooth migration from legacy systems and manual processes to the K-CRAFTS solution.

Project Manager – An IT Project Manager will come from KDOR IS and be responsible for all phases of the project. Duties will include leading all meetings and discussions, coordination with the vendor of project plans, overseeing the design, development, conversion and implementation activities, documentation of results and issues, budget oversight, and other day-to-day project management activities.

Vendor Project Manager – The Vendor Project Manager (VPM) will be onsite during discovery, design, conversion, implementation, unit testing, integration testing, end-to-end testing of the sys-tem and training of the KDOR staff. The VPM will be responsible for ensuring their COTS solu-tion meets specifications from the RFP and will work closely with the IT Project Manager during all phases of the project.

Business Project Managers (BPM) – The Business Project Managers will be responsible for si-gnoff of acceptance at all critical stages in the project. The BPMs will also be responsible for working closely with the IT Project Manager on coordinating work within all phases of the project. There will be a BPM assigned for each business program as that module is defined, implemented and tested (IRP, IFTA, Liquor License and Enforcement, Cigarette and Tobacco, Liquor Taxes, Audit and Revenue Distribution).

Subject Matter Experts – The Subject Matter Experts will consist of persons from IRP, Motor Fuel Tax program and ABC licensing, administration, and enforcement, Electronic Services, Tax-ation, Audit and Revenue Distribution. The SME’s will provide review functions during the design phase and will provide testing functions during deployment. The SMEs will also support training activities during deployment.

Additional roles will be required for short periods throughout the procurement, design, development and deployment. These roles include: IT technical application support, database administration sup-port, and operations support. The IT Project Manager and the Business Project Managers will be re-sponsible for identifying required staff and assigning temporary roles on an as needed basis.

2.3 Training Plan

The vendor will be responsible for the development of training plans, materials, user manuals, system administration manuals, knowledge transfer plans and training delivered to the end users. On-site, hands-on experience using the system in a testing or training system environment must be part of the training. The vendor will provide a plan for continuing training for major system upgrades and revi-sions.

2.4 On-Going Maintenance

It is anticipated that the negotiated contract will include maintenance and support agreements for fixed periods of time after the warranty period. These periods need to be included in the cost pro-posal.

2.5 Information Security

The vendor will be responsible for designing and developing the COTS solution such that it aligns with the KDOR Information Technology Security Policy. The solution shall have fundamental security


protocols for Internet transactions such as:

• Passwords or PINs (Personal Identification Numbers) are required for on-line transactions. • Information is exchanged via Secure Socket Layer (SSL) that uses 128-bit encryption. • Information requests must pass through multiple hardware and software security firewalls. • Utilize VeriSign’s Secure Site services for applications that process financial transactions.

2.6 Confidentiality

Confidentiality requirements outlined in Kansas statutes will remain the same as they are under the existing systems. Measures will be taken to protect confidential information such as names, address-es, taxpayer identification numbers, company information, and all other sensitive taxpayer infor-mation. KDOR is committed to maintaining the confidentiality and security of all customer information in Internet transactions. All aspects of the KDOR privacy statement will pass through and become part of the system requirements for this COTS solution, including possible database encryption due to social security numbers or federal id numbers. This confidentiality statement applies whether the sys-tem servers and databases are hosted by the vendor or by KDOR.

2.7 General and Administrative Information

Mandatory Qualifications. The State is seeking a vendor (the “Proposer”) that will be responsible for providing both a complete software solution and all requested services required for a successful implementation, plus post-implementation support. The Proposer may team with multiple firms in its proposal, but there can be only one Proposer that will execute the Contract expected to result from this RFP. This does not preclude the State from executing a separate contract with the Software Provider for software licenses and software maintenance. However, the Proposer shall be responsi-ble contractually for all services, including those services performed by the Software Provider. The Proposer will coordinate, integrate, and be accountable for all products and services proposed. Proposers may offer subcontractors as a part of their proposals, provided that the subcontractor does not also submit a proposal as a prime contractor. Through the implementation of the proposed solu-tion, the shortfalls and omissions inherent within the current legacy technical architecture must be ad-dressed.

The State has established mandatory qualifications that must be met by all Proposers and their proposals submitted for evaluation:

• To qualify to submit a proposal, the Proposer must have completed by the Proposal Submis-sion Deadline (Closing Date) as the Contractor or primary provider of implementation ser-vices for IRP and IFTA.

• The Proposer or a proposed subcontractor must provide a minimum of one client for which it was responsible for the end-to-end implementation of system similar to Licensing, Enforce-ment, Liquor Tax, Accounts Receivable and Distribution.

• Please refer to RFP Section 3.9 (TECHNICAL PROPOSAL TAB 2 – Mandatory Qualifica-tions) for instructions concerning substantiating these requirements.

RFP Schedule of Events: The following Schedule of Events represents the State's best estimate of the anticipated schedule that will be followed. Unless otherwise specified, the time of day for the following events will be between 8:00 a.m. and 5:00 p.m., Central Time.


RFP SCHEDULE OF EVENTS NOTICE: The State reserves the right, at its sole discretion, to adjust this schedule as it deems necessary. The State will communicate any substantive adjustment to the RFP Schedule of Events to any vendor from whom the State has received an Expression of Interest Form.

EVENT DATE

1. Announcement of Pre-Proposal Conference and Intent to Issue RFP / Instructions for Submitting Expression of Inter-est Form

12/18/2012

2. State Issues RFP 12/18/2012

3. Deadline for Submitting Written Questions Requesting Clarifications

1/4/2013

4. Deadline for State to Post Final Responses to Written Questions 1/9/2013

6. Proposal Submission Deadline (Closing Date) 1/23/2013

7. Notification of Proposers Selected for Software Demonstra-tions and Oral Presentations End of January

8. Software Demonstrations / Oral Presentations First week of February

9. Tentative K-CRAFTS Project Start Date February 19, 2013

Explanation of Schedule of Events and Procurement Process. After studying this RFP docu-ment, Vendors are encouraged to submit questions to clarify any ambiguity in the RFP (see Event Number 3, Number 4, and Number 5 above).

After Proposers submit their proposals, the State Evaluation Committee will conduct an evaluation of all proposals received. Evaluation of proposals is discussed later in this section under paragraph heading “Evaluation of Proposals.”

The result of this first round of proposal evaluations is the invitation of selected Proposers to appear before the Procurement Negotiating Committee (PNC) and the State Evaluation Committee for Soft-ware Demonstrations and Oral Presentations. The exact nature of these demonstrations and presen-tations will be specified in the invitation. Appearance before the PNC is discussed later in this sec-tion.

After the Software Demonstrations and Oral Presentations are completed, selected Proposers may be asked to participate in negotiations leading to a Revised Offer. After the State issues the Call for Revised Offers, Proposers then submit their Revised Offers for evaluation.

After evaluation of the Revised Offers, the State Evaluation Committee will review their evaluations with the PNC. After reviewing the evaluations from the K-CRAFTS Project Evaluation Committee, the PNC may seek additional information, conduct additional negotiations, or other activities. The PNC may select a Proposer(s) with which to discuss additional and final contract terms. All contract terms must be final and Proposer commitment to executing such contract shall be unquestionably demon-strated for the PNC to consider awarding the contract to the Proposer. If the PNC finds the final con-tract terms acceptable, then a Notice of Intent to Award may be issued. If the PNC does not find the final contract terms acceptable, then the PNC may discuss final terms with other Proposers. Once a


Notice of Intent to Award has been issued, the Proposer shall execute the final Contract. Failure to do so in a timely manner may result in the rejection of the Proposer, and the Contract being issued to another Proposer.

With proposal, the contractor must submit a detailed project plan. After the Contract is executed, the Contractor will work with the State’s K-CRAFTS Project Manager to finalize and obtain approval of the detailed project plan by the Kansas Information Technology Office (KITO). Generally, this in-volves getting the detailed project plan to conform to KITO requirements and standards. KITO re-quirements and standards are discussed in the Project Work Plan paragraph in RFP Section 3.16. Once KITO approval is obtained, the detailed project plan is submitted by KITO to the Executive Branch Chief Information Technology Officer (CITO) for approval. When the detailed project plan re-ceives CITO approval, then the K-CRAFTS Project can begin.

The KITO/CITO detailed project plan approval process can take considerable time to accomplish. This process can be shortened if the Contractor’s detailed project plan submitted with the proposal and the Revised Offer substantially conforms to KITO requirements and standards (please see RFP Section 3.16, “Project Management Methodology”).

Disability Accommodation Request: Any attendee of the Pre-Proposal Conference or attendee of any other meeting in the procurement process, with a disability, may request accommodation in order to participate. Requests for accommodation should be made at least five working days in advance of the meeting.

Proposer Subcontractors: If a Proposer chooses to use subcontractors, the State encourages the Proposer to use Kansas subcontractors, including small and emerging businesses or small entrepre-neurships, if practical.

If a Proposer intends to subcontract portions of the products or services, the proposal shall include specific designations of the tasks to be performed or deliverables to be produced by the subcontrac-tor. The subcontractor shall be required to produce firm and staff qualifications to demonstrate their ability to provide the product or service. The subcontractor qualifications shall be presented in a sep-arate section of the proposal. Copies of any teaming agreements planned to be executed between the Proposer and subcontractor(s) shall be included in the proposal. The Proposer is required to cer-tify and warrant all subcontractor work.

Preparation of Proposal: Prices are to be entered in spaces provided on the RFP cost forms pro-vided herein. Computations and totals shall be indicated where required. In case of error in compu-tations or totals, the unit price shall govern. The PNC has the right to rely on any price quotes pro-vided by Proposers. The Proposer shall be responsible for any mathematical error in price quotes. The PNC reserves the right to reject proposals which contain errors. Any terms that are inconsistent in a Proposers proposal shall be interpreted most favorable to the State as determined by the State.

All copies of Cost Proposals shall be submitted in a separate sealed envelope or container separate from the technical proposal. The outside shall be identified clearly as "Cost Pro-posal” or “Technical Proposal" with the RFP number and Closing Date.

A proposal shall not be considered for award if the price in the proposal was not calculated inde-pendently and without collusion, consultation, communication, or agreement as to any matter related to price with any other Proposer, competitor, or public officer/employee.

Technical proposals shall contain a concise description of Proposer’s capabilities to satisfy the re-quirements of this Request for Proposal with emphasis on completeness and clarity of content. Rep-etition of terms and conditions from the Request for Proposal without additional clarification shall not be considered responsive.

Cost of Preparing Proposal: The cost of developing and submitting the proposal is entirely the re-sponsibility of the Proposer. This includes costs to determine the nature of the engagement, prepa-ration of the proposal, submitting the proposal, negotiating for the contract, and other costs associ-ated with this Request.


Signature of Proposals: Each proposal shall give the complete mailing address of the Proposer and shall be signed by an authorized representative by original signature with his or her name and le-gal title typed below the signature line. If the Contractor’s contact will be a different entity, indicate that individual’s contact information for communication purposes. Each proposal shall include the Proposer’s FEIN.

Modification of Proposals: A Proposer may modify a proposal by letter at any time prior to the Pro-posal Submission Deadline (Closing Date) and time for receipt of proposals shown in the RFP Schedule of Events.

Withdrawal of Proposals: A proposal may be withdrawn upon written request from the Proposer to the Procurement Officer at the Procurement and Contracts prior to the Proposal Submission Deadline (Closing Date).

Acknowledgment of Addenda: All Proposers shall acknowledge receipt of any addenda to this Re-quest for Proposal by returning a signed hard copy of the first page from each addendum with the proposal. Failure to acknowledge receipt of any addenda may render the proposal nonresponsive and eliminated from further review. Changes to this Request shall be issued only by the Procurement and Contracts in writing.

Waiver of Minor Irregularities: The Director of Purchases reserves the right to waive minor irregu-larities in proposals when the Director of Purchases deems such action is in the best interest of the State and does not hinder the intent of this Request. Where the Director of Purchases may waive minor irregularities, such waiver shall in no way modify the RFP requirements or excuse the Proposer from full compliance with the RFP specifications and other contract requirements if the Proposer is awarded the Contract.

Acceptance or Rejection: The PNC reserves the right to accept or reject any or all proposals or part of a proposal; to waive any informalities or technicalities; to clarify any ambiguities in proposals; modify any criteria in this Request; and unless otherwise specified, to accept any item in a proposal.

Proposal Disclosures: At the time of closing, only the names of those who submitted proposals shall be made public information. No price information will be released. Interested Proposers or their representatives may be present at the announcement at the following location:

State of Kansas Procurement and Contracts 800 Jackson Street, Suite 600 Topeka, KS 66612-1286

Bid results will not be given to individuals over the telephone. Bid results are available after contract finalization by obtaining bid tabulation from the Procurement and Contracts by sending (do not in-clude with proposal):

• A check for $3.00, payable to the State of Kansas;

• A self-addressed, stamped envelope; and

• The Contract Proposal Number.

Send to:

Kansas Procurement and Contracts Attention: Bid Results/Copies 800 SW Jackson, Suite 600 Topeka, KS 66612-1286

Copies of individual proposals may be obtained under the Kansas Open Records Act by sending an email to [email protected] or calling 785-296-0002 to request an estimate of the cost to repro-duce the documents and remitting that amount with a written request to the above address or a ven-dor may make an appointment by calling the above number to view the proposal file. Upon receipt of the funds, the documents will be mailed. Information in proposal files shall not be released until a contract has been executed or all proposals have been rejected.



Disclosure of Proposal Content and Proprietary Information: All proposals become the property of the State of Kansas. The Open Records Act (K.S.A. 45-205 et. Seq.) of the State of Kansas re-quires public information be placed in the public domain at the conclusion of the selection process, and be available for examination by all interested parties (http://da.ks.gov/purch/KSOpenRecAct.doc). No proposals shall be disclosed until after a contract award has been issued. The State reserves the right to destroy all proposals if the RFP is withdrawn, a contract award is withdrawn, or in accordance with Kansas law. Late Technical and/or Cost Proposals will not receive consideration. At the State’s option, such proposals will be retained unopened in the file or will be destroyed by the State at the State’s expense. Alternatively, the Proposer may request the late proposals be returned at the Pro-poser’s expense.

By submitting a proposal, Proposer hereby grants the State of Kansas, and its departments, agen-cies, affiliates, agents, employees, and licensees (hereafter collectively referenced as the “State”) a non-exclusive, royalty-free, non-revocable perpetual license to use all systems ideas or adaptations of these ideas and copy for any reason (including but not limited to compliance with the Kansas Open Records Act), Contractor’s bid, proposal, and any other document(s) submitted to or relevant infor-mation requested by the State. Contractor warrants: 1) That this bid and proposal is an original work and has not been submitted for publication or published in any other medium; 2) That this bid and proposal will not violate any rights of third parties; and 3) That this bid and proposal does not contain any libelous material. This license may not be revoked and is effective on the date of submission of the proposal. Selection or rejection of the proposal will not affect this right.

Trade secrets or proprietary information legally recognized as such and protected by law may be re-quested to be withheld if clearly labeled “Proprietary” on each individual page and provided as sepa-rate from the main proposal. Pricing information is not considered proprietary, and the Propos-er’s entire proposal response package will not be considered proprietary.

All information requested to be handled as “Proprietary” shall be submitted separately from the main proposal and clearly labeled, in a separate envelope or clipped apart from all other documentation. The Proposer shall provide detailed written documentation justifying why this material should be con-sidered “Proprietary.” The Procurement and Contracts reserves the right to accept, amend, or deny such requests for maintaining information as proprietary in accordance with Kansas law.

The State of Kansas does not guarantee protection of any information which is not submitted as re-quired.

Exceptions: By submission of a response, the Proposer acknowledges and accepts all terms and conditions of the RFP unless clearly avowed and wholly documented in a separate section of the Technical Proposal Appendix 5 titled “Exceptions” (see RFP Section 3.24).

Notice of Award: An award is made upon execution of the written contract by all parties.

Correspondence: The RFP number, indicated in the header of this page, as well as on the first page of this Request, has been assigned to this Request and MUST be shown on all correspondence or other documents associated with this Request and MUST be referred to in all verbal communica-tions. All inquiries, written or verbal, shall be directed only to the Procurement Officer reflected on Page 1 of this Request. There shall be no communication with any other State employees, officers, or agents regarding this Request except with designated state participants in attendance ONLY DUR-ING:

Demonstrations;

Negotiations;

Contract Signing; and

As otherwise specified in this Request.

Violations of this provision by the Proposer or State agency personnel may result in the rejection of the proposal.

Evaluation of Proposals: Award shall be made in the best interest of the State as determined by

http://da.state.ks.us/purch/KSOpenRecAct.doc�


the PNC or their designees. Evaluation criteria may include but is not limited to:

• Cost. Proposers are not to inflate prices in the initial proposal as cost is a factor in determin-ing who may receive an award or be invited to Software Demonstrations and Oral Presenta-tions or to formal negotiations. The State reserves the right to award to the lowest respon-sive Proposer without conducting formal negotiations, if authorized by the PNC.

• Adequacy and completeness of proposal.

• Proposer understands the project.

• Compliance with the terms and conditions of the Request.

• Experience in providing like services.

• Qualified staff.

• Methodology to accomplish tasks.

• Response format as required by this Request.

Appearance Before the Procurement Negotiating Committee (PNC): Any, all, or no Proposers may be required to appear before the PNC to explain the Proposer’s understanding and approach to the project and/or respond to questions from the PNC concerning the proposal; or, the PNC may award without conducting negotiations, based on the initial proposal. The PNC reserves the right to request information from Proposers as needed. If information is requested, the PNC is not required to request the information of all Proposers.

Proposers selected to participate in negotiations may be given an opportunity to submit a revised technical and/or cost proposal/offer to the PNC, subject to a specified cut-off time for submittal of re-visions. Meetings before the PNC are not subject to the Open Meetings Act. Proposers are prohibit-ed from electronically recording these meetings. However, the State reserves the right to electroni-cally record these meetings. All information received prior to the cut-off time will be considered part of the Proposer’s revised offer. The State shall retain possession of any and all materials, in any form, provided by the Proposer during these presentations.

In the event that the Proposer is notified by the PNC that the Proposer has been selected for Soft-ware Demonstrations and Oral Presentations, Proposer agrees and consents to the State video and audio recording, along with transcribing, of the Software Demonstrations and Oral Presentations, which may include loading recording software on Proposer's equipment in order to capture images and processes during the Software Demonstrations and Oral Presentations. The State shall retain possession of any and all materials, in any form, provided by the Proposer during these presenta-tions.

No additional revisions shall be made after the specified cut-off time unless requested by the PNC.

Negotiated Procurement: This is a negotiated procurement pursuant to K.S.A. 75-37,102. Final evaluation and award will be made by the Procurement Negotiating Committee (PNC) consisting of the following individuals (or their designees):

Director of Purchases, Department of Administration;

Secretary, Department of Revenue; and

Secretary, Department of Administration.

Competition: The purpose of this Request is to seek competition. The Proposer shall advise the Procurement and Contracts if any specification, language, or other requirement inadvertently restricts or limits proposing to a single source. Notification shall be in writing and must be received by the Procurement and Contracts no later than five business days prior to the proposal Closing Date.

ADA Compliance: All web-based information and services provided on Inter/Intra/Extranet sites by or on behalf of Kansas State Government entities (as defined in Section 3.0 of ITEC Policy 1210) shall be accessible and usable in accordance with federal and state law.


All web applications and web based services provided by entities covered under this Policy must, at a minimum, comply with the W3C Web Accessibility Initiative, Web Content Accessibility Guidelines 1.0 (http://www.w3.org/TR/WCAG10) Priority 1 and 2 Checkpoints; and Federal Section 508 Guidelines, Subpart B - 1194.22 Web-based intranet and internet information and applications. (http://www.section508.gov/index.cfm?FuseAction=Content&ID=12#Web).

Therefore, Proposers submitting proposals under this request shall document:

How they will use accessibility and validation/compliance tools as part of developing any state web content and services as a result of this request (examples of appropriate tools are available on the WAS website).

How they will test any developed state web content and services with various adaptive technologies (examples of appropriate testing are available on the WAS website).

Their web implementer’s skills, experience, and knowledge of how to apply WAI and Federal Section 508 Guidelines (a list of recommended skills and knowledge for web implementers is available on the WAS website).

How their work will ensure web sites and web applications will be developed to be platform independ-ent where feasible. If the Proposer proposes to deliver web content or services that will have platform dependencies, the Proposer shall describe how they will implement procedures and processes to evaluate the technical needs of their user audience and the proposed target platforms and how they will adjust development practices as needed.

Geographic Information System (GIS) Compliance: All databases created in this work shall be compliant with existing GIS development standards and enterprise infrastructure to optimize spatial functionality and encoding for address data elements. The Kansas enterprise Geographic Infor-mation System is based on Environmental Systems Research Institute (ESRI) technology. Kansas supports both internal and external web map service environments and server-side web map devel-opment is an emerging trend in GIS development standards, along with higher utilization of central-ized spatial database engine (SDE) and implementation of comprehensive geocoding and address standardization. The Kansas GIS infrastructure includes central file servers, central Oracle SDE spa-tial databases, and concurrent desktop licenses for ArcGIS, and extension products, along with GPS field data collection and data management tools for spatial databases. Kansas supports and imple-ments the GIS Addressing Standard established by the Kansas GIS Policy Board.

A copy of this standard is accessible from the Kansas GIS website link at: http://oits.ks.gov/KITO/GIS/standards.htm

News Releases: Only the State is authorized to issue news releases relating to this Request, its evaluation, award, and/or performance of the contract.

Commercial Advertising: The Contractor shall not refer to this Request, its evaluation, award, or the Contractor’s performance under the Contract in any commercial advertising media without the approval of the State. The State may withhold approval for any reason.

Volume Matrix:

IRP- approximately 3,000 accounts

IFTA – approximately 3,400 accounts

Cigarette and Tobacco “Controlled Buys” – approximately 5,800

ABC Licenses and Permits – approximately 4,929

Liquor Drink Tax Accounts – approximately 2,302

Liquor Enforcement Tax Accounts – approximately 1,340

Existing Technology Enablers: Proposers please note that the State has expended considerable effort and investment in the following technology products. To address requirements that necessitate integration with such technologies, the Proposer is expected to utilize these products provided by the

http://oits.ks.gov/KITO/GIS/standards.htm�


State where feasible to do so. It is not required to provide these technologies as part of the scope of the project.

See also the Kansas Information Technology Architecture document at http://oits.ks.gov/KITO/cita/KITA.htm , RFP Section 5.72, “Technology Architectural Compliance.”

Tumbleweed: KDOR uses the Tumbleweed secure mail architecture to provide spam and virus fil-tering for inbound Internet email traffic and to route all outbound KDOR Internet email. KDOR also uses the Tumbleweed secure mail platform to establish secure mail accounts for stakeholders and customers allowing KDOR to correspond with them in a secure fashion. KDOR email users desig-nate a message as secure by entering a designated catch-phrase in the subject line of the email message. Tumbleweed then stores the message in secure format while sending an email notification to the user that they have received a secure message from KDOR and informing them to log into their account on the Tumbleweed server to retrieve the message. From their Tumbleweed account, stakeholders and customers can send KDOR secure email transmissions preventing the disclosure of personal identity information.

Microsoft Project 2010: Microsoft Project 2010 is the State standard tool for project scheduling.

2.8 Contract and Term

At a summary level, the contract for the K-CRAFTS Project shall include the following:

1. Software products, licenses, configurations and customizations as needed to meet the State’s business requirements and the option of adding additional tax types to the system.

2. Software product maintenance.

3. Software product training.

4. Hardware and systems software, maintenance, and installation services to support the tech-nical architecture of the new system. All components, including maintenance and installation services, shall be identified and itemized by cost so that the State may make its own inde-pendent estimates. The Proposer will propose 1) providing; and 2) installing the hardware and systems software (including maintenance). However, the State may or may not exercise one or both of these options during final contract negotiations.

5. Implementation and integration services. The exact period of implementation and integration services is dependent on the timeframe proposed by the Proposer and the final Contract ne-gotiated by the parties. The contract must be fixed price for services, with prices assigned to each module. Proposer should bid the cost of training and turning source code over to KDOR programmers for maintenance.

6. Post-implementation support services. Proposers should bid cost of on-site technical support and off-site. In addition to post-implementation support services shall include the on-call support events defined in RFP Section 3.16 under “Post-Implementation Support Services.”

7. The Contract may be renewed at the completion of the initial Contract period for three addi-tional two year periods upon the mutual agreement of the parties. Such mutual agreement shall take the form of a Contract Amendment approved in writing by the Procurement Negoti-ating Committee (PNC).

http://oits.ks.gov/KITO/cita/KITA.htm�


2.9 Solution Scope

The solution scope required by the State is comprised of the following major components:

• Software Product License(s);

• Software Product Annual Maintenance;

• Wide area network upgrades; Essential hardware, systems software, maintenance, and in-stallation services necessary to support the new technical architecture. However, the State may or may not purchase this item from the Proposer;

• Implementation, Integration and Post-Implementation Support Services.

2.10 Implementation and Integration Services Scope

The State requests that the Proposer provide a recommended strategy and approach to accomplish a phased implementation in modules with fixed prices for each module or deliverable.

The Contractor shall provide project teams, tools and templates, methods and frameworks, and other capabilities to support the services required to ensure a successful implementation. The effort related to these activities shall be split between the Contractor and the State in order to develop the State’s capacity to support itself. The Contractor shall be required not only to train the State project teams, but also to mentor the State project teams in performing tasks that will build State capacity. The fol-lowing is a high-level list of the implementation services that are required in this RFP. However, addi-tional services may be required to ensure implementation success in accordance with the Proposer’s methodology.

• System Development Methodology Services

• Project Management Methodology Services

o Project Work Plan

o Project Time Reporting

o Status Reporting

o Kansas Information Technology Office Project Reporting

o Issue Resolution

o Project Controls, Standards, and Procedures

o Risk Management Plan and Procedures

• Technical Architecture and Infrastructure Design

o Software Installation

o Technical Architecture / Infrastructure Design

o Testing

o Tuning

o Business Continuity

• Requirements Validation, Business Process Design, and Software Configuration

• Customizations

o Data Warehouse, Reports Analysis, and Development

o Enhancements and Modifications


o Interface Development

o Data Conversion

o Custom Workflow Configuration

o Custom Automated Forms Configuration

• Security Configuration

• Testing

o Unit Testing

o Integration Testing

o System Testing

o Regression Testing

o Performance (Load/Stress) Testing

o Acceptance Testing

• Software Revisions (Patches and Fixes)

• Training

o Project Team Functional Training

o Project Team Technical Training

o End-user Training

• Documentation

o End-user Documentation and Job Aids

o System Documentation

o Operational Documentation

o System Configuration Documentation

o Procedures Documentation

• Knowledge Transfer

• Enterprise Readiness (Organizational Change Management)

o Communications

o Organizational Redesign (Business Process Reengineering)

o Production Transition

o Establishment of a Help Desk

• Deployment (Roll-out) Support

• Post-Implementation Support Services

• Quality Assurance

The detailed proposal submission requirements for implementation and integration services are de-fined in RFP Section 3.16 Proposal Response.

If off-site work is contemplated, then the Proposer must provide a 100% on-site cost quote, and then propose, as an alternative, the off-site cost quote.

To ensure maximum knowledge transfer, work should normally occur between the State’s core busi-ness hours (8:00 AM to 5:00 PM, Monday through Friday). Exceptions may occur when responding


to emergency outages, or to accommodate scheduled project events that must occur during evenings or on weekends. During these exceptions, full State participation is expected for knowledge transfer purposes. The State is also willing to consider alternate working schedules for individuals to allow flexibility in travel plans for out-of-town Contractor staff. However, to encourage knowledge transfer opportunities, the Contractor must provide adequate coverage of key business areas during the State’s core business hours at all times. Contractor working and travel schedules shall be approved in advance by the K-CRAFTS Project Manager.

2.11 Organizational Scope

The new integrated system will support all IRP and IFTA business processes and interfaces, alcoholic beverage licensing, Liquor Drink Tax, Liquor Enforcement Tax, Gallonage Tax, Drug Tax, liquor en-forcement activities and tracking of these programs, replace the systems that track and report on the liquor enforcement activities, cigarette and tobacco products activities, administrative and criminal prosecution and case management for these programs, accounting and distribution for these pro-grams and their associated interfaces. The system must also be expandable to include other tax types and processes including but not limited to individual and business tax filings payments and reg-istrations. The system will be known as Kansas Commercial Registration, Alcoholic Beverage Con-trol and Fuel Tax System (K-CRAFTS). The state desires the option to program the additional tax modules after implementation of this contract; therefore knowledge transfer and access to the pro-gram code would be important as a bid option.

The administration, project management and legal staff are physically located in the Docking State Office Building. The enforcement and inspection staff primarily work out of their home offices, but will be brought in as the critical pieces of the system relating to their needs are addressed.

2.12 Resources to be provided

The State intends to assign staff to the project team with resources provided by the Department of Revenue and Motor Carrier Services staff in the eight county offices. At the State’s discretion, State-provided personnel may be substituted, added, or removed. The following chart provides an estimate of the number of staff to be provided by the State, as well as their intended roles on the project.

Project Role State Staff Estimate

Project Manager 2

Project Office Support Staff .25

Technical Team 4

Business Team Managers 4

QA System Testing Team 10

Organizational Change Team .25

Business Functional Team 10

Total Estimated Project State Staff 30.5

2.13 Facilities and Equipment to be provided by the State

All project staff members will be located in Topeka at a State-provided facility. An exception to this may be user training activities conducted at State-provided remote training facilities. The Proposer


may assume that the State will provide adequate office space, personal computer workstations with network connections, Internet access, telephone access, fax access, copier access, and general of-fice supplies for project team members. If any staff members from the Proposer’s team require spe-cial accommodations for a disability or work limitation, please make a note of that in TECHNICAL PROPOSAL TAB 9 – PROJECT STAFF AND ORGANIZATION (see RFP Section 3.18).


RFP Section 3:

Proposal Response Technical

3.1 SUBMISSION OF PROPOSALS The fully completed proposal must be delivered at the Proposer's expense and received by the Pro-curement Officer designated on Page 1 on or before the date and time specified in the RFP Schedule of Events (RFP Section 2.7).

Proposals shall consist of:

• One (1) paper original with original signatures and fifteen (15) paper copies of the Technical Proposal, including signature sheet, applicable literature, and other supporting documents;

• One (1) paper original with original signatures and eight (8) paper copies of the Cost Pro-posal including signature sheet; and

• Electronic / software version(s) of the technical and cost proposals are required. Fifteen (15) electronic copies of the Technical Proposal and eight (8) electronic copies of the Cost Pro-posal shall be provided on CD, and placed in the front cover sleeve of each applicable paper original or paper copy of the related technical and cost proposals. The CDs shall include the proposal in both PDF format and in Microsoft® Word format with hyperlinks to the sections from the table of contents. Cost schedules shall be provided in Microsoft Excel 2010 format, and project plans shall be provided in Microsoft Project 2010 format. The CDs shall be ap-propriately labeled with the information listed for the Technical Proposal Title Page (see RFP Section 3.4), or the Cost Proposal Title Page (see RFP Section 4.3). Separate CDs must be used for the Technical and Cost Proposals (i.e., do not include cost information on the CDs that contain the Technical Proposal).

All copies of cost proposals shall be submitted in a separate sealed envelope or container separate from the technical proposal. The outside shall be identified clearly as "Cost Pro-posal” or “Technical Proposal" with the RFP number and Closing Date.

Proposer’s proposal, sealed securely in an envelope or other container, shall be received no later than 2:00 p.m., Central Time, on the Closing Date indicated on Page 1, addressed as follows:

Kansas Procurement and Contracts Bid Event: EVT0001929 Closing Date: January 23, 2013, at 2 P.M. Central Time 800 SW Jackson Street, Suite 600 Topeka, KS 66612-1286

The Procurement and Contracts telephone number for courier delivery is 785-296-2376.

Faxed, e-mailed, or telephoned proposals are not acceptable.

Proposals received prior to the Closing Date shall be kept secured and sealed until closing. The State shall not be responsible for the premature opening of a proposal or for the rejection of a pro-posal that was not received prior to the Closing Date and time because it was not properly identified on the outside of the envelope or container. Late Technical and/or Cost Proposals will not receive consideration. At the State’s option, such proposals will be retained unopened in the file or will be destroyed by the State at the State’s expense. Alternatively, the Proposer may request the late pro-posals be returned at the Proposer’s expense.

It is the Proposer’s responsibility to ensure that proposals are received by the Closing Date and time. Delays in mail delivery or any other means of transmittal, including couriers or agents of the issuing entity, shall not excuse late proposal submissions.


3.2 PROPOSAL / RFP RESPONSE INSTRUCTIONS Proposers shall prepare their proposal in accordance with the instructions and sequence given below. The proposal should be clear and concise in response to the information and requirements described in this RFP.

The proposal, as well as any reference material presented, must be written in English and must be written on standard 8-1/2” x 11” paper. Foldouts containing charts, spreadsheets, and oversize ex-hibits are permissible.

Each page of the proposal shall be clearly and uniquely numbered.

3.3 TECHNICAL PROPOSAL OVERVIEW The format and sections of the Technical Proposal shall conform to the tabbed structure outlined be-low. All tabs shall be labeled appropriately. Adherence to this format is necessary in order to permit effective evaluation of proposals.

The Technical Proposal shall be in the following format:

Technical Proposal Content

Title Page

Transmittal Letter

RFP Addenda

Table of Contents

TAB 1 – Executive Summary

TAB 2 – Mandatory Qualifications

TAB 3 – Administrative Requirements

TAB 4 – Proposer Corporate Information

TAB 5 – Subcontractor Corporate Information

A TAB 6 – Licensed Product Information

TAB 7 – Implementation and Integration Services

TAB 8 – References

TAB 9 – Project Staff and Organization

TAB 10 – Alternative Services Approach (IF APPLICABLE)

Appendix 1: Functional Requirements

Appendix 2: Technical Requirements / Questionnaire

Appendix 3: Data Warehouse and Reporting

Appendix 4: Marketing Materials

Appendix 5: Exceptions

Appendix 6: Sample Statement of Work (SOW)

No pricing or cost information shall be included in the Technical Proposal. Inclusion of Cost Proposal amounts in the Technical Proposal shall make the proposal non-responsive and the State may reject it.


3.4 TECHNICAL PROPOSAL TITLE PAGE The title page shall be placed as the front cover and/or insert and includes:

1. The Bid Event ID (EVT0001929).

2. The title of the RFP (Kansas Commercial Registration – Alcoholic Beverage Control – Fuel Tax System K-CRAFTS).

3. The RFP Closing Date (Proposal Submission Deadline from the RFP Schedule of Events in RFP Section 2.7).

4. The Proposer’s name.

5. The inscription, “Technical Proposal.”

6. A separate and distinct control number for each of the hard copies placed in the bottom right corner. The control number naming convention is <Proposer Name>-<sequential number> (e.g., “Acme-29”). Please ensure that the signed original is designated with control number “1.”

3.5 TECHNICAL PROPOSAL TRANSMITTAL LETTER The letter of transmittal shall include:

1. A brief statement showing the proposer understands the scope of software and services as-sociated with this RFP.

2. The names, titles, addresses, e-mail addresses, and telephone numbers of the individuals who are authorized to make representations on behalf of and legally bind the Proposer.

3. The names, titles, addresses, e-mail addresses, and telephone numbers of the individual who will function as the main contact for the Proposer.

4. A statement that the entire proposal and the price contained therein shall be binding upon the Proposer in all respects for a period of 180 days from receipt of the Revised Offer, or from submission if no Revised Offer is requested.

5. A statement designating the firm that will function as Proposer (prime contractor) in response to the RFP.

6. A list identifying all subcontractors.

7. A statement that the Proposer is a corporation or other legal entity.

8. A statement that no attempt has been made or will be made to induce any other person or firm to submit or not to submit a proposal.

9. A statement that the Proposer or any subcontractors do not discriminate in employment prac-tices with regard to race, color, religion, age (except as provided by law), sex, marital status, political affiliation, national origin, or disability.

10. A statement that no cost or pricing information has been included in the transmittal letter or the Technical Proposal.

11. A statement that the Proposer or any subcontractors presently have no interest, direct or indi-rect, which would conflict with the performance of services under this contract and shall not employ, in the performance of this contract, any person having a conflict.

12. A statement that the person signing the proposal is authorized to make decisions as to pric-ing quoted and has not participated, and will not participate, in any action contrary to the statements above.

13. A statement as to whether there is a reasonable probability that the Proposer or any subcon-tractor is or will be associated with any parent, affiliate, or subsidiary organization, either for-


mally or informally, in supplying any service or furnishing any supplies or equipment to the Proposer or any subcontractor which would relate to the performance of this contract. If the statement is in the affirmative, the Proposer is required to submit with the proposal, written certification and authorization from the parent, affiliate, or subsidiary organization granting the State and/or the federal government the right to examine any directly pertinent books, docu-ments, papers, and records involving such transactions related to the contract. Further, if at any time after a proposal is submitted, such an association arises, the Proposer will obtain a similar certification and authorization and failure to do so will constitute grounds for termina-tion of the contract at the option of the State.

14. A statement acknowledging that the Proposer agrees that any lost or reduced federal match-ing money resulting from unacceptable performance in a contractor task or responsibility de-fined in the Request for Proposal, contract, or modification, shall be accompanied by reduc-tions in state payments to Contractor.

15. A statement that the Proposer or any subcontractor has not been retained, nor has it re-tained, a person to solicit or secure a state contract on an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide em-ployees or bona fide established commercial selling agencies maintained by the Proposer for the purpose of securing business. For breach of this provision, the Procurement Negotiating Committee shall have the right to reject the proposal, terminate the contract, and/or deduct from the contract price or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee, or any other benefit.

16. A statement that all staff members of the Proposer’s team will follow all State of Kansas ad-ministrative policies, procedures, requirements, specifications, and standards.

17. The signature(s) of person(s) authorized to legally bind the Proposer. The name(s) and legal title(s) of the(se) individual(s) shall be typed under the signature(s). Indicate the Proposer’s tax number under the signature block(s). This signature shall be the same individual that signs the Signature Sheet.

3.6 TECHNICAL PROPOSAL RFP ADDENDA Proposers shall acknowledge receipt of all RFP addenda by listing the addenda and including a signed copy of the front page of each addendum here. The signature(s) must be the same as on the transmittal letter. There is no need to include the entire text of each addendum – a signed front page will suffice.

3.7 TECHNICAL PROPOSAL TABLE OF CONTENTS The Technical Proposal shall be submitted with a table of contents that clearly identifies and denotes the location of each section and sub-section of the proposal, with hyperlinks to the sections from the table of contents. Each page of the response should be clearly and uniquely numbered. Additionally, the table of contents shall clearly identify and denote the location of all enclosures and attachments to the proposal.

3.8 TECHNICAL PROPOSAL TAB 1 – EXECUTIVE SUMMARY In the Executive Summary, the Proposer shall condense and highlight the contents of the proposed solution in such a way as to provide the State with a broad understanding of the proposal. Proposers shall provide a concise summarization of the proposed products and services, and how these pro-posed products and services solve the problems presented in the RFP. Proposers shall present their planned approach to providing the proposed products and services, and their understanding of the objectives and intended results of the project and the scope of work. Proposers shall summarize how their proposal meets the requirements of this RFP, and provide documentation as to why the product and service providers assembled in the proposal are best qualified to perform the work required here-in.


3.9 TECHNICAL PROPOSAL TAB 2 – MANDATORY QUALIFICATIONS Proposers must provide a detailed response that substantiates their ability to meet each mandatory qualification. The mandatory qualifications are as follows:

• The Proposer must have completed by the Proposal Submission Deadline (Closing Date), as the Contractor or primary provider of implementation services, an implementation of an inte-grated licensing and enforcement tracking system for a state government division or depart-ment of alcoholic beverage control.

• The proposed version of the above referenced software must be currently in production in a state government division or department of alcoholic beverage control.

• The Proposer or a proposed subcontractor must provide a minimum of one client for which it was responsible for the end-to-end implementation of each of the functional areas listed be-low within the past five years. This requirement can be, but does not have to be met with the same client.

1. IRP and IFTA

2. Licensing and Taxation

An explanation shall be provided to document how each of the above mandatory qualifications is met. Additionally, a client contact person name, organization, title, e-mail address (if available), and tele-phone number shall be provided that can validate that the Proposer or the Software Provider has met the above mandatory qualifications. Employees of the Proposer or any of its proposed subcontrac-tors shall not be used as the contact person.

3.10 TECHNICAL PROPOSAL TAB 3 – ADMINISTRATIVE RFP Section 6 contains blank copies of the forms required for compliance. Instructions concerning each form are provided below.

1. Expression of Interest Form. The Expression of Interest Form is submitted at any time during the procurement process up to the Proposal Submission Deadline (Closing Date – please see the RFP Schedule of Events in RFP Section 2.7) in accordance with the instructions on the form. It is not required for RFP submission.

2. Signature Sheet. The Proposer must fill out the Signature Sheet form and submit it with the proposal as the first entry under this TECHNICAL PROPOSAL TAB 3 - ADMINISTRATIVE REQUIREMENTS.

3. Tax Clearance Form. The Proposer must fill out the Tax Clearance Form and submit it with the proposal as the third entry under this TECHNICAL PROPOSAL TAB 3 - ADMINISTRATIVE REQUIREMENTS. Note that this form requires information for all subcontractors. When completing the forms, please list the Proposer first, the Software Pro-vider subcontractor second, all other Third Party Software Provider subcontractors third (in alphabetical order), and Service Provider subcontractors fourth (in alphabetical order). Pro-posers are advised that disclosure of a change in tax clearance status for the Contractor and all subcontractors is a continuing requirement subsequent to award of a contract and for the life of the contract.

4. DA-146a Contractual Provisions Attachment. This form is a required attachment for all State of Kansas contractual agreements. It will be attached to any contract ensuing from the K-CRAFTS Project procurement process. Proposers must include a clear and unambiguous statement expressing agreement to these contractual provisions without exception as the fourth entry under this TECHNICAL PROPOSAL TAB 3 - ADMINISTRATIVE REQUIRE-MENTS.

5. Certification Regarding Non-discrimination and Immigration Reform and Control. This form is a required attachment for all State of Kansas contractual agreements. It will be attached to any contract ensuing from the K-CRAFTS Project procurement process. Proposers must in-


clude a clear and unambiguous statement expressing agreement to provide a signed Certifi-cation Regarding Immigration Reform and Control form as the fifth entry under this TECH-NICAL PROPOSAL TAB 3 – ADMINISTRATIVE REQUIREMENTS.

6. Proposed Integration Services Provider Reference Questionnaire: This form is required for proposal submission under TECHNICAL PROPOSAL TAB 8 – REFERENCES. Please refer to the instructions for TECHNICAL PROPOSAL TAB 8 in RFP Section 3.17.

7. Proposed Software Provider Reference Questionnaire: This form is required for proposal submission under TECHNICAL PROPOSAL TAB 8 – REFERENCES. Please refer to the in-structions for TECHNICAL PROPOSAL TAB 8 in RFP Section 3.17.

Also, Proposers are required to provide a completed State of Kansas Application Architecture Ques-tionnaire (see RFP Appendix 8). Please refer to the instructions for proposal submission under TECHNICAL PROPOSAL APPENDIX 2 in RFP Section 3.21).

Additionally, Proposers are required to provide their responses to the Contract Terms and Conditions for proposal submission under TECHNICAL PROPOSAL APPENDIX 5, as specified in RFP Section 3.24.

3.11 TECHNICAL PROPOSAL TAB 4 – PROPOSER CORPORATE INFORMATION The Proposer shall include a detailed narrative description of the Proposer’s organization. The narra-tive shall include:

1. Brief overview of business operations.

2. Date established.

3. Ownership (public, partnership, subsidiary, etc.)

4. State in which the contractor is incorporated.

5. Office location(s) of staff responsible for performance of proposed tasks.

6. Full disclosure of any proposed off-site activity and the locations involved.

7. Organizational chart

8. Full disclosure of any potential conflict of interest.

9. A statement of whether, in the last ten years, the Proposer and any officers in their individual or professional capacity or associated with another company have filed (or have filed against it) any bankruptcy or insolvency proceeding, whether voluntary or involuntary, or undergone the appointment of a receiver; trustee, or assignee for the benefit of creditors, and if so, an explanation providing relevant details.

10. A statement of whether there are any pending Securities Exchange Commission investiga-tions involving the Proposer, and if such are pending or in progress an explanation providing relevant details and an attached opinion of counsel as to whether the pending investigations will impair the Proposer’s performance in a Contract under this RFP.


11. A statement documenting all open or pending litigation initiated by Proposer or where Pro-poser is a defendant in a customer matter.

12. Full disclosure of any contracts terminated for cause or convenience in the past five years.

13. Full disclosure of any criminal or civil offense. (See RFP Section 5.31)

14. Statements of financial stability indicating that the Proposer has the financial capacity to pro-vide the entire solution, and that the Proposer has adequate resources to continue as an on-going concern.

3.12 TECHNICAL PROPOSAL TAB 5 – SUBCONTRACTOR CORPORATE INFORMATION SOFTWARE PROVIDER

For the Software Provider, Proposer shall provide the same information listed for the Proposer Corpo-rate Information (see RFP Section 3.11). Also include a copy of the teaming agreement or subcon-tracting agreement between the Proposer and the Software Provider.

THIRD PARTY SOFTWARE PROVIDERS

For any Third Party Software Provider listed in TECHNICAL PROPOSAL TAB 3 - ADMINISTRATIVE REQUIREMENTS, Proposer shall provide the same information listed for the Proposer Corporate In-formation (see RFP Section 3.11). Also, include a copy of the teaming agreement or subcontracting agreement with the Proposer in each Third Party Software Provider section. Provide the information for the Third Party Software Providers in alphabetical order.

SERVICE PROVIDERS

For any Service Provider listed in TECHNICAL PROPOSAL TAB 3 – ADMINISTRATIVE REQUIRE-MENTS, Proposer shall provide the same information listed for the Proposer Corporate Information (see RFP Section 3.11). Also, include a copy of the teaming agreement or subcontracting agreement with the Proposer in each Service Provider section. Provide the information for the Service Providers in alphabetical order.

3.13 TECHNICAL PROPOSAL TAB 6 – LICENSED PRODUCT INFORMATION BUSINESS APPLICATIONS In this section, the Proposer shall provide a detailed product summary chart that lists:

1. The Software Provider and any Third Party Software Providers;

2. The different product sets to be provided by the Software Provider and the Third Party Soft-ware Providers;

3. The modules / functions within those product sets;

4. The release level of the products to be used;

5. The next release / version level to be released; an

6. The planned release date of the next release / version.

Reminder: Costs shall be reflected in the separate Cost Proposal and MUST be bid by Module.

After the summary chart, the Proposer shall provide a description of all application software modules necessary to provide the requested functionality and functional requirements referenced in RFP Ap-


pendix 1 (see also RFP Section 5.43, “Implied Requirements”). For each module, the Proposer shall summarize in one page the key features and functions of that module, as well as the major integration points, workflow, forms, and report capabilities of the module, in the following format. The size of the individual response items may be adjusted as needed, as long as the total response for each module does not exceed one page.

Module One-Page Summary Format

Module Name Narrative Description of Major Functions Integration Points Workflow Capabilities Forms Capabilities Reporting Capabilities

The following is a brief explanation of expected response for each required field:

• Module Name – Indicate the module name from the proposed software solution.

• Narrative Description of Major Functions – Describe in narrative form the major busi-ness process functions addressed by the module. Describe the key features of the mod-ule and how the module addresses the pertinent business needs of the State.

• Integration Points – Provide a general understanding of relationships and dependencies between software modules.

• Workflow Capabilities – Briefly describe the automated workflow capabilities of the module, including routing and approval functions.

• Forms Capabilities – Briefly describe the automated forms capabilities of the module, including standardized letter functions.

• Reporting Capabilities – Briefly describe the most significant capabilities for reporting in this module through standard reports, ad hoc queries, online inquiry, or other means.

• Optional Functionality -- Proposers are also asked to describe any additional function-ality not specifically requested in the requirements attached to this RFP, but offered by the Software Provider as part of the proposed software suite. Such functionality, if of-fered, shall be described in sufficient detail to enable the State to determine its useful-ness. Optional software shall be separately priced in the Cost Proposal Tab 11 (see RFP Section 4.17). The State reserves the right to purchase additional software licenses as-sociated with optional software if specific functional needs are met. Optional software functionality may include any functionality the Proposer believes may be of interest to the State based on usage by similar government organizations.


All costs shall be reflected in the separate Cost Proposal Tab 2; Schedule 2 – Total Cost Summary (see RFP Section 4.8 and Tab 10; Essential Hardware and Software Costs RFP Section 4.16.

Additionally, the Proposer shall address the following topics regarding the proposed technology prod-ucts:

1. Integrated development toolset required to address the following:

• Screen / panel modification and development;

• Menu modification and development;

• Screen-based label name configurations for tailoring to State vocabulary;

• Workflow modification and development;

• Forms and standardized letter modification and development;

• Web service and application API modification and configuration;

• Database – current table, current column, or new column addition and editing;

• Database – new table and column addition and editing; and

• Database, table, and column triggers and procedures – either directly or through configurable implementations of equivalent capabilities through abstract pro-grammatic capabilities.

More than one toolset can be provided if products are sourced from different Third Party Software Providers.

2. Data Warehouse – should be a collection of data from varying sources which is loaded on a periodic basis. This data is to be organized in a way that optimizes data retrieval for reporting purposes and is extensible, allowing for additional data to be added at a future date. The data structure is to be broken into subsystems called Data Marts which group related data together. Access to this data is to be controlled by an administrator. The administrator is to be provided a tool to be used to create universes which are data maps that handle the varying relationships within the data. The business users of this data can run standard or ad hoc reports using ad hoc reporting tools.

3. Ad hoc reporting tools – shall enable business users to create their own reports and ex-plore enterprise data.

4. Business Intelligence tools – it is the Department’s intent to take full advantage of the in-formation captured within the new system to support business intelligence functionality in addition to operational reporting requirements.

5. Upgrade tools – including analysis tools, “fix” and “patch” automated implementation tools, and full release or version automated upgrade tools. More than one set of tools can be provided if products are sourced from different Third Party Software Providers.

6. Enterprise Application Interface (EAI) tools – tools provided should support use with all products proposed in the solution.

7. Extract, Transform, and Load (ETL) tools – tools provided should support use with all products proposed in the solution.

8. Production tools – typical capabilities of these types of tools include job scheduling, job automation and sequence scripting, job roll-back, etc. Tools provided should support all components of the server-based application software solution.

9. Application testing tools – tools provided should support all components of the server-based application software solution.


10. Configuration management tools – tools provided should support all components of the application software solution.

11. Central identity and security management tools – tools provided should support all com-ponents of the application software solution.

12. Performance monitoring tools – tools that monitor the end-to-end response time and per-formance of the application on an ongoing basis for use in alerts and troubleshooting.

13. Software distribution tools – tools that handle software distribution and updating to the remote county locations.

14. If any of the automated tools described above are to be used during the project, the costs for such tools must be included in the licensing costs section of the separate Cost Pro-posal Tab 2 Schedule 2 (see RFP Section 4.8).

The Proposer shall take the following into account when addressing the technology components of their proposal:

The Kansas Information Technology Architecture. Compliance with the Kansas Information Technology Architecture is required (see RFP Section 5.72, “Technology Architectural Compli-ance”). Proposers must certify in their proposals that all their offerings are in conformance with the Kansas Information Technology Architecture. Proposers shall provide that certification in this section of their response.

The Kansas Geographic Information System. All databases created in the K-CRAFTS Project should be compliant with existing GIS development standards and enterprise infrastructure to op-timize spatial functionality and encoding for address data elements (see RFP Section 5.74, “Geo-graphic Information System (GIS)”). Proposers shall discuss how this will be accomplished in this section of their response.

Required Essential Hardware and Software

If third-party products (middleware, database instances, operating system software, compilers, job schedulers, security-related packages, etc.) are required to successfully implement the pro-posed solution, the Proposer shall identify these products and provide a worksheet with a de-scription, quantities, release levels, etc., of each of these products.

. In this section of their response, Proposers shall, based on the information currently available, specify the initial requirements for all required es-sential hardware, cache servers, web servers, application servers, and database servers for in-stallation per the Proposer’s specifications.

The Proposer will propose 1) providing; and 2) installing the essential hardware, systems software, servers, along with maintenance for the duration of the project. However, the State may or may not exercise one or both of these options during final contract negotiations.

Costs for required essential hardware and software shall be provided in the separate Cost Proposal (see RFP Section 4.16). See also RFP Section 5.43 – Implied Requirements.

Network

Agents and inspectors will require the capability to access the new system through wireless networks and mobile devices from urban areas.

. The new integrated system envisioned as a result of the K-CRAFTS Project will either op-erate on the Kansas wide area network or a hosted solution may be proposed.

• The performance measurement for desktop to desktop screen refresh with update, data en-try, and screen turn is below two seconds from the time the transaction is entered and the time the business function is complete and the screen is returned to the user at the desktop ready for the next transaction.

• Normal load conditions are defined as periods when 40-75% of the specified numbers of us-ers for each system are performing transactions. Peak load conditions are defined as peri-ods when 76-100% of the specified number of users for each system is performing transac-tions.


In this section of the response, the Proposer shall, based on the information currently available, specify the initial network bandwidth requirements needed to successfully run their application in the proposed hardware and software architecture to achieve the response time described above on each function of the application. The Proposer shall describe system performance characteristics. Include response time (as defined by the time elapsed from a keystroke that activates a system function and the instant when the first character of resulting data appears on the screen, excluding such things as banners, headers, or intermediate messages) during peak and normal conditions for broadband net-work connections.

If an offsite hosted environment is being bid, the same response time requirements apply.

Desktop Requirements

. In this section of the proposal, the Proposer shall provide the State with desktop requirements and specifications necessary to support the new integrated system software. The State shall perform all preparations for desktop computers to be ready for the new integrated system implementation.

LICENSED TRAINING

Licensed training is any training that is delivered as a component of the proposed software product. For the State, licensed training refers to any courses provided to the State in the following manner:

• CBT courses; and/or

• Instructor-led courses that are considered licensed materials by the Software Provider.

CBT training may be used to perform familiarization and introductory level training of end-users.

The Software Provider will include with their application product licenses, at no extra charge, the training materials required for customizing training for internal end-users, and, in the case of CBT, the tools for developing and customizing training.

Please note that in the Cost Proposal, all costs associated with licensed materials, such as CBTs and training content, shall be included in the “Licensed Training” line item of the “Required Business and Technology Software Licenses” section of “Cost Schedule 2: Total Cost Summary” of the Cost Pro-posal.

Proposers must provide a licensed training product summary chart that lists:

1. The different licensed training providers (i.e., source of training);

2. The different courses to be provided from the training providers;

3. The release/version level of the application software products covered in each course;

4. Method of course delivery (e.g., CBT, instructor–led); and

5. Course duration.

After the summary chart has been completed, create a section of the proposal for each training pro-vider with appropriate subsections to describe each course offering. Provide a course description and recommended attendees.

The following training areas would be desired for the functional and technical team members.

State Project Team Member Training Requirements

Functional Areas Technical Areas

IRP and Audit Reporting Tools

IFTA and Audit Product Development Tools


State Project Team Member Training Requirements

Functional Areas Technical Areas

Administrative Action and Case Man-agement (Docketing) Workflow Development Tools

Licensing and Enforcement Automated Forms Development Tools

Liquor Tax Application Test Tools

Reporting and Data Warehousing Technical Configuration Management Tools

Electronic payments, accounting and distribution Database Administration

System Administration

Infrastructure/Security

PRODUCT MAINTENANCE

In this section of the proposal, the approach of the Software Provider, and any Third Party Software Providers, to meet the State’s requirements to provide product maintenance is described, including:

1. Describe the software upgrade process used by the Software Provider and the Third Party Software Providers. What is the impact on user-defined fields and tables during the upgrade process? What is the impact on any customizations previously made to the software? What support does the software vendor provide during the upgrade process? Is the State always required to upgrade? How many versions/releases of the software are supported by the software vendor, and for how long? Describe the types of documentation that accompany the upgrade software, and the resources available if there are questions or problems applying the upgrade.

2. Describe the process used by the Software Provider and the Third Party Software Providers to distribute software fixes and patches. Describe the typical documentation that accompa-nies new patch releases. Are releases of fixes and patches made on a certain schedule, or are they released as they are ready? Is each release cumulative of all fixes since the last upgrade? If not, how are the patch prerequisites established? What support will the software vendor provide?

3. Describe special plans defining "levels" of customer support (e.g., gold, silver, etc.).

4. Describe telephone support (include toll-free support hotline, hours of operation, availability of 24 x 7 hotline, etc.).

5. Describe any currently known or planned enhancement items that would not be covered by the ongoing annual maintenance payment quoted in the Cost Proposal.

6. Describe the availability of user groups, how often they meet, and how they are structured. Does the Software Provider or the user group manage the agenda and contents of the meet-ings? Describe user group input to system fixes and future enhancements.

7. Describe problem reporting and resolution procedures.

8. Describe any other support (e.g., on-site, remote dial-in, web site access to patches, and knowledge base).

PRODUCT MAINTENANCE ASSUMPTIONS The following assumptions apply to the Product Maintenance services:


1. Upon notification of a maintenance problem, Contractor shall perform an adequate level of problem determination to identify and resolve the matter (if possible) based upon known product or customized solution issues. After first having completed proper due diligence, problem determination, and using Software Provider resources and content to attempt to re-solve the support incident, the Contractor may triage to the Software Provider and leverage the Software Provider as tier two support whereby the Software Provider may work directly with the State to fix a particular problem while the Contractor continues to take full responsi-bility for the outcome of the incident by monitoring progress, logging, tracking, and obtaining other resources (if the Software Provider has not solved the issues) and any other effort re-quired to resolve support incidents that arise during the life of the Contract.

2. The State is seeking a "high availability" solution. Although the goal of all systems is always to have a failure rate of zero, it is understood that such a goal is truly unobtainable. A goal of 99.9% availability is more reasonable. The Proposer shall provide a hardware / infrastructure plan for obtaining this goal of 99.9% availability. It is required that the estimated cost for providing the essential hardware and systems software (plus maintenance) is included in COST PROPOSAL TAB 10 – ESSENTIAL HARDWARE AND SOFTWARE COSTS (see RFP Section 4.16). All components shall be identified so that the State may make its own in-dependent estimates.

3. The equipment specifications to run the new integrated applications shall include architecture that allows for automatic failover when a single hardware device fails, such as a disc drive. This design allows for failover processing to automatically switch processing to the other side of the redundant processor so that operations can continue to run when the primary side of the computing environment fails. The design shall also allow for notification of system admin-istrators that there has been a failure, and also allow for the continuation of processing until a scheduled maintenance service can take place to fully restore both sides of the computing environment.

Proposals may include any commercially available solutions such as (but not limited to) mirrored da-tabases, multiple clustered servers, active or passive failovers, geographic separation of system components, and active or passive monitoring systems.

FUTURE DIRECTION

The Proposer shall describe the future direction of the technology of the proposed products. Also, in-clude future plans for functionality for the components of the proposed solution. The Proposer should discuss in some detail the strategic product plans for the proposed software products in this re-sponse. What have been the significant enhancements to the products in the past few years, and what is expected in the next five years? How will the solution proposed currently provide a stable ro-bust environment for the State and provide a platform for growth and technological advances for the future?

3.14 TECHNICAL PROPOSAL TAB 7 – IMPLEMENTATION AND INTEGRATION SERVICES In this section of the proposal, the Proposer shall describe their approach in detail to implementing the full solution requested by the State in accordance with the approach outlined in RFP Section 2.10, “Implementation and Integration Services Scope.” Submission of an approach in accordance with RFP Section 2.10 is mandatory.

If the Proposer believes another viable approach exists, the Proposer may provide an alternative ap-proach in TECHNICAL PROPOSAL TAB 10 – ALTERNATIVE SERVICES APPROACH (see RFP Section 3.19). The services proposed in TECHNICAL PROPOSAL TAB 10 -- ALTERNATIVE SER-VICES APPROACH shall fully meet the Functional Requirements referenced in throughout this RFP.

3.15 IMPLEMENTATION ASSUMPTIONS The State is providing “going in” assumptions regarding the delivery and implementation of the pro-posed solution. The proposed implementation approach must account for each of these preliminary


assumptions. The State is seeking a solution whereby State staff members are mentored as part of the implementation, building the State’s capacity to support, operate, and manage the solution once in production. Even under a hosted solution the state desires access to source code in order to add miscellaneous tax modules at a later date. The following assumptions apply:

All Proposers shall propose a phased implementation (i.e. by program modules with deliverables and costs detailed for each module). (Example: IRP, IFTA, Liquor Licensing and Enforcement, Gallonage Tax, Liquor Drink Tax, Liquor Enforcement Tax, Drug Tax, Cigarette and Tobacco Enforcement.) Please make note of what modules can be completed concurrently. The Contractor shall be respon-sible for designing an implementation approach that maximizes mentoring, coaching, and capacity building of State staff as well as meeting statutory deadlines.

1. All software product configuration activity shall be completed with State personnel actively in-volved in configuring the system to ensure that knowledge transfer is maximized.

2. The State shall be actively involved in the development of reports/queries, interfaces, con-versions, enhancements and modifications, forms, and workflow. State provided subject mat-ter experts shall be involved in specifications, development, unit testing, integration testing, and user acceptance testing activities.

3. The Contractor will lead the data conversion and interface development tasks with assistance from the State. The Contractor will lead the development of specifications, code, and test scripts, including test scripts for system testing, performance testing, and regression testing, for those development objects for which the Contractor is responsible. User acceptance test scripts shall be based on the Contractor’s system testing scripts, and shall be written by the State (with assistance from the Contractor). The State will lead the execution of the user ac-ceptance test with the assistance and support of the Contractor.

4. This RFP is for an operational solution including the required hardware and network infra-structure upgrades needed to operate the proposed software based on the State’s service level standards and technology infrastructure. KDOR reserves the right to provide depart-ment-owned Intel-based hardware. Proposer must include, within the bid response, technical specifications required by the system. Should KDOR decide to provide this hardware, the Contractor shall provide specific instructions for installation of all software and any other is-sues that may arise. Any references to maintenance or warranty under this RFP concerning hardware will not apply, if this option is chosen.

3.16 DETAILED DESCRIPTION OF SERVICES TO BE PROVIDED In order to facilitate the State’s comparison of Proposer solutions, the Proposer’s response to this section of the RFP shall conform to the following. System Development Methodology (SDM) It is the Proposer’s responsibility to propose a system development methodology that is defined, documented, repeatable, and consistent with the Software Engineering Institute’s (SEI) Capability Maturity Model (CMM), Level 3 or higher. The project scope and cost shall include training the State Project team staff on the Proposer’s SDM. The Proposer need not have obtained official SEI certification. The proposal should identify certifications the Proposer has received, such as SEI CMM assessments, the International Organization for Standardization (ISO) 900x certifica-tions, the Institute of Electrical and Electronics Engineers’ (IEEE) Software Engineering Stand-ards, or any other pertinent certifications.

Project Management Methodology The Proposer shall describe its approach to managing the project, including the provision for a full-time, experienced Project Manager who will be accountable for all services and deliverables provided under the Contract resulting from this RFP, and who will work to ensure the on-time de-livery and successful deployment of a functioning system that meets the State’s requirements and


the successful ongoing operation of the solution. As part of its project management approach, the Proposer shall describe the project management tools, standards, controls, and procedures that will be utilized to create a proven, reliable process to deploy the system statewide. This sec-tion shall also include a brief description of the Proposer’s approach for managing the project on a daily basis. The intent of this information is to provide assurance to the State of the Proposer’s demonstrated ability to manage large, complex enterprise software projects in a manner that ensures quality, project success, long-term viability, and lowest cost of ownership. Include in this information a statement confirming that the Proposer’s Project Management Meth-odology is in full conformance with the State of Kansas uniform Project Management Methodolo-gy for all Information Technology (IT) projects valued at $250,000 or more (see RFP Section 5.70, “Project Management Methodology”). Project Work Plan

This section shall include a comprehensive project work plan that addresses the State’s intended implementation approach. The work plan shall include tasks to be performed by State personnel, as well as tasks requiring collaboration between State and Proposer personnel. It should include as much detail as possible, although it is understood that details about some tasks are dependent on the results of other tasks.

The following standards apply to the work plan:

1. Project management activities shall be documented in the work plan.

2. The work plan shall outline schedule and tasks for the entire project.

3. The work plan shall include dependencies, critical paths, and resources (both Proposer and State staff) assigned to each task.

4. The work plan shall include all deliverables that support the Proposed Methodology and Approach.

5. Estimated work effort shall be shown for each task.

6. Appropriate milestones shall be identified in the work plan to gauge the project’s progress toward meeting desired target completion dates.

7. Any assumptions made in developing the work plan shall be included in this section.

8. Proposers are to pay particular attention to the State of Kansas work plan standards found in Information Technology Executive Council (ITEC) Policy 2400A, “IT Project Planning Instructions,” found at http://www.da.ks.gov/kito/ITProposedPlans.htm/.

9. Also, the State requires that the Project Work Plan support the Kansas Information Tech-nology Office IT Project Quarterly Reporting requirements found at http://da.state.ks.us/kito/.

The work plan shall be accessible via Microsoft Project 2010®, and shall be included in electronic (Microsoft Project) format (do not submit in PDF format only). Printed copies of the proposal shall al-so include a high-level timeline in Gantt chart format.

The Proposer shall provide a Staffing Plan that addresses personnel associated with tasks. The Staff-ing Plan shall be included in Microsoft Excel format (do not submit in PDF format only). Costs shall be reflected in the separate Cost Proposal.

During implementation, the Contractor’s Project Manager shall be responsible for monitoring and up-dating the project plan, revising and developing further detail as appropriate. It is expected that the Contractor will provide highly qualified Project Management Office (PMO) staff to manage the work planning effort and to maintain the Project Plan in Microsoft Project 2010. The Contractor’s Project

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Manager shall provide weekly Project Plan updates to the State Project Manager for the duration of the project.

The work plan shall allow a minimum of ten business days for State staff to review, request changes, and/or approve deliverables in accordance with the Quality Assurance Review Process explained in RFP Section 5.71. Very complex deliverables or deliverables requiring an extended review period should allow additional time for review.

Project Time Reporting

The Proposer shall describe its approach to an automated method of project time reporting that inte-grates with Microsoft Project 2010 to support the Project Plan and other required reporting. The State wishes to avoid manual techniques which involve multiple keying of time by task information into vari-ous spreadsheets. Any software licenses or computing infrastructure required to support the auto-mated time reporting solution shall be noted and described, along with any required team training for State staff. Associated costs shall be included in the separate Cost Proposal.

Status Reporting

The Proposer shall describe its approach for project status reporting. The State requires that weekly status reports be provided to reflect the major activities for the reporting period. As part of the Pro-poser’s approach to status reporting, the State will expect weekly participation in status meetings with the State project team. Project management will use the status report to monitor project activity and to detect potential problems or delays. The weekly status report should serve as the agenda for the status meetings. Topics to be covered include:

1. A listing of significant departures from the Project Work Plan with explanations of causes and strategies to achieve realignment;

2. A listing of tasks completed since the last report;

3. Tasks that were delayed and reasons for delay, with expected revised completion date;

4. Planned activities for the next scheduled period;

5. Summary of major concerns or issues encountered, proposed resolutions, and actual resolutions; and

6. Any other topics that require attention from the K-CRAFTS Project Manager.

Also, the State requires that the Proposer’s status reporting approach support the Kansas Information Technology Office IT Project Quarterly Reporting requirements found at http://www.oits.ks.gov/KITO/ITProjectReporting.htm Kansas Information Technology Office Project Reporting

Quarterly project reporting to the KITO statewide PMO is required. The Contractor will provide the primary resource used in compiling this required reporting, as well as providing additional information, documentation, and/or related presentations and legislative testimony as required in support of this process, or any other related project reporting. To address this requirement, the Contractor shall submit a draft of each completed Project’s proposed Quarterly Report submission to the K-CRAFTS Project Manager at least ten days before it is due at the Kansas Information Technology Office for re-view and approval or modification. Once accepted, the report will be filed with KITO by the K-CRAFTS Project Manager.

Because of the risks inherent with any integrated project, the KITO will likely require External Inde-pendent Verification and Validation (IV&V). The IV&V assessment will be submitted directly and sim-ultaneously to the Project Sponsors and the Branch CITO. The IV&V assessment will also be made available to the Legislative CITO, entity head and project manager. Those assessments will provide a clear definition and analysis of major problems and issues associated with the ongoing implementa-tion of the project, as outlined in ITEC Policy Guideline 2510A. The IV&V contractors will also assist the project manager in conducting periodic risk assessments at strategic points throughout the life of

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the projects.

Issue Resolution

The Proposer shall describe its approach to issue identification, tracking, and resolution. This discus-sion shall include the use of any tools or techniques that are integrated into configuration manage-ment, software change control, and the overall project management methodology. Topics to be ad-dressed in this section include:

1. Issue identification;

2. Issue tracking;

3. Issue review and prioritization;

4. Issue analysis;

5. Issue resolution; and

6. Issue escalation.

The State and the Proposer shall agree on a protocol for collaboratively resolving implementation is-sues. This protocol shall address the topics above, responsible parties, and specific steps to be tak-en on issues or disputes arising during the implementation process.

Project Controls, Standards, and Procedures

The Proposer shall describe its proposed project controls, standards, and procedures for all project tasks. These items shall be reviewed and approved by the State’s project leadership. This require-ment includes, but is not limited to:

1. Managing project documentation – Proposer shall describe templates used (configura-tion, design specifications, test scenarios, change request, etc.); organization of Project Managers; naming conventions; and version control procedures.

2. Meeting procedures – Proposer shall describe techniques to ensure that meetings are ef-ficient, productive, and results are adequately documented.

3. Development standards – Proposer shall describe standards and procedures for design specifications, review processes, unit testing, and other controls to ensure the quality and consistency of custom design and development.

4. Software change control procedures – Proposer shall describe the procedures and/or au-tomated tools that will be employed to ensure the integrity of programs and configuration settings developed to support the solution. If any automated tools are to be used during the project, the costs for such tools must be included in the licensing costs section of the separate Cost Proposal (see RFP Section 4.8).

5. Scope management – The Proposer shall describe its scope control processes to ensure that work is not performed on out-of-scope features, functions, or tasks until the State grants authorization in writing. Please see the definitions of Task Order (Item W) and Task Order Request (Item X) in RFP Section 5.3, “Definitions.”

Risk Management Plan and Procedures

The Proposer shall include the provision of the appropriate methods, tools, and techniques for active and ongoing identification and assessment of project risks; development of risk avoidance, transfer, mitigation, or management strategies; and monitoring and reporting of risk status throughout the life of the project.

Based on the Proposer’s experience, the Proposer shall describe the approach to identifying and as-sessing potential risks to the project, as well as identifying and managing actions to avoid, transfer, mitigate, or manage those risks.


Technical Architecture and Infrastructure Design

The following technical activities are within the Contractor’s scope for this project. The Proposer shall describe its approach to providing the services and activities associated with each of the following:

1. Essential hardware, systems software, maintenance, and installation services necessary to support the new technical architecture, if the State chooses to procure these items from the Proposer.

2. Technical assistance for the sizing, procurement, maintenance, and installation of essen-tial hardware, systems software, maintenance, and installation services necessary to support the new technical architecture, if the State chooses to provide these items sepa-rately.

3. Evaluation of the Kansas Wide-Area-Network (KanWin) capacity as it relates to the im-plementation of the proposed software, and specific recommendations concerning any needed WAN upgrades.

4. Technical architecture and infrastructure design.

5. Standard technical infrastructure configuration and change management methodology activities, procedures, tools, templates, and how the Proposer manages these activities and leverages the tools and templates.

6. Initial application software installation to support design, configuration, and testing.

7. Structure and maintenance of planned database instances and environments. Minimally, the State believes that the following environments are required:

• Production.

• System Test (replicates production and sometimes referred to as a sandbox)

• Development.

• Training.

• Interface Testing.

• Conversion.

Proposers shall address these environments and any other environments needed, explaining any variance in detail.

Standard methodology for developing business continuity plan, continuity capabilities, and high-availability infrastructure, as well as a detailed explanation of the related approach, activities, proce-dures, tools, and templates and how the Proposer manages these activities and leverages the tools and templates.

1. Architecting, implementing, and testing a disaster recovery process for the new integrat-ed system.

2. Performance tuning of databases, application servers, web servers, and other software and devices deployed as part of the proposed solution. This includes batch and online software tuning, as well as data conversion software tuning.

3. Software upgrades and the update methodology, as well as a detailed explanation of the related approach, activities, procedures, tools, templates, and how the Proposer manag-es these activities and leverages the tools and templates.

4. Software management must include descriptions for both software patches (fixes) and full release upgrades.

Based on the Functional Requirements, Technical Requirements, business continuity requirements, volume metrics, and the State’s existing hardware platforms supplied in this RFP, the Proposer shall provide a recommended hardware sizing and architecture that considers:


1. Initial hardware for configuration, design, and development;

2. Hardware for testing in a production equivalent environment;

3. Complete hardware sizing and architecture to address environment for release updates, training, development, testing, and production with the test and production environments being equivalent or practically equivalent for testing purposes;

4. Security administration; and

5. How the proposed technical architecture design fits within the Department’s existing net-work security architecture, composed of unique logical areas separating development/ test environments from production environments.

The informational data in RFP Section 2.7, “Volume Matrix,” is provided to assist in completing this section of the proposal.

Proposers are reminded to complete the “State of Kansas Application Architecture Questionnaire” found in RFP Appendix 8 and submit it in TECHNICAL PROPOSAL APPENDIX 2 (see RFP Section 3.21).

Requirements Validation, Business Process Design, and Software Configuration

The Proposer shall describe its approach to analyzing the State’s system requirements and demon-strating the proposed software’s ability to satisfactorily meet those requirements. This approach may include a Conference Room Pilot or a pilot prototype system integrated with the business process analysis and software configuration process. The State desires to receive a formal fit/gap analysis documenting the disposition of each functional requirement and the resolution of identified gaps (e.g., customization, workaround, or agreement to eliminate the requirement). The Contractor will assist the State in identifying appropriate business process improvement opportunities, documenting the desired changes, and planning and implementing the business process changes. The Proposer shall describe how this process integrates with its approach to project communications and cultural change management, since many of the change management issues involve changes to the State’s business processes.

The Proposer shall then describe its approach and methodology to be used to configure the new in-tegrated software in accordance with the new business process design. This section shall also de-scribe:

1. The tools and procedures available to aid in the software configuration process

2. The documentation provided to support the software configuration; and,

3. The process for validating the configuration against the State’s documented require-ments.

Customizations The State anticipates that certain development items will be necessary to meet the State’s Functional Requirements. In the following sub-sections, the Proposer will describe its approach for addressing the various types of customizations as follows:

1. Data Warehouse, Reports Analysis, and Reports Development;

2. Enhancements and Modifications;

3. Interface Development;

4. Data Conversion;

5. Custom Workflow Configuration; and

6. Custom Automated Correspondence and Forms Configuration.

Though it is the State’s desire to utilize a fixed price arrangement for the entire project, including all customization activities, consideration will be given to eliminating specific customizations from project


scope if such elimination is validated after completion of the software design phase. If any customi-zations are eliminated as part of this process, then the cost associated with each eliminated customi-zation will be applied to a contingency fund to be used as the State determines.

Data Warehouse, Reports Analysis, and Reports Development

The system shall include a data warehouse with querying and reporting capabilities. The State envi-sions a system that provides users the ability to quickly and easily access timely and useful infor-mation while providing online access capabilities for the following:

• Five (5) years of alcoholic beverage licensing data;

• Ten (10) years of Administrative Action and Case Management Data;

• Five (5) years of Drug Tax data

• Five (5) years of Liquor Drink and Enforcement Tax data;

• Five (5) years of Enforcement data;

• Five (5) years of IFTA Account data

• Five (5) years of IRP Account data

NOTE: Details of online access and archive requirements are provided in Technical Requirements – RFP Appendix 2.

The Proposer shall provide information on the proposed data warehousing and reporting solution, in-clusive of overall system architecture, all related software tools, system performance metrics and benchmarks related to scalability, and system monitoring, maintenance, and administrative capabili-ties.

The Proposer shall describe its approach to providing reporting functionality using a data warehouse and tools that are robust enough to support present and future reporting needs for all functional are-as. Delivered reports shall be designed with flexibility for ease of modification as functional and re-porting requirements change. The reporting tool should be easy to use and learn, easily accessed from the Web, and have a similar “look and feel” as other system modules.

The Proposer shall describe an offering that provides, at a minimum, the following report analysis and development services to meet the State’s reporting needs:

1. Analysis of reporting requirements and classification of said needs by priority and type;

2. Analysis and proposal of ways to reduce the State’s use of paper in meeting its reporting needs using State-standard tools where possible (i.e., electronic report distribution and online / web-based report viewing);

3. Analysis, and if appropriate, recommendations to refine the State’s report distribution and printing system; and

4. Design, development, and testing of required custom reports.

The Proposer shall not place the actual reports in this section of the hard-copy proposal. An electron-ic copy of applicable sample or mock-up reports may be included on the Technical Proposal CD, if the Proposer desires. Reports as deliverables must be included in the project scope and reflected in the cost proposal.

Enhancements and Modifications

The Proposer shall describe its approach to making enhancements or modifications to the baseline software solution in a manner that facilitates an easy, low-cost, and low risk migration to new releases of the baseline product. The Proposer shall describe its approach to coding and documenting modifi-cations in such a way as to ensure that they can be easily re-applied when the State upgrades to new releases of the proposed software. The Proposer shall also include its business-justification process for prioritizing and approving each of the identified potential enhancements.


While the State intends to minimize modifications made to the software, it is expected that some mod-ifications will be required. Once proposed modifications are identified through the fit/gap analysis process, the Contractor shall work with the appropriate State business analyst(s) to prepare a high-level design document with cost estimates for review and approval by State project leadership. Upon approval, the Contractor shall produce the detailed technical design and develop the approved modi-fications. The Contractor shall be responsible for the functional and technical designs, coding, unit testing, and integration testing of all modifications in accordance with agreed upon standards, and in accordance with the Implementation Assumptions documented in RFP Section 3.15. All modifica-tions shall be developed and documented in such a way as to ensure that they will be maintained when the State upgrades to new releases of the proposed software.

The Proposer shall estimate the work effort required to complete all development items identified by a response code of MI (Minor Modification), MA (Major Modification), or CD (Custom Development) to the Functional Requirements referenced in TECHNICAL PROPOSAL APPENDIX 1. The Proposer shall show the estimated total work effort for development items, and include the cost of that work ef-fort in Schedule 7 – Enhancements and Modifications (see RFP Section 4.13) of the separate Cost Proposal.

Interface Development

In this section, the Proposer shall describe its approach for the design, development, testing, and de-ployment of automated interfaces between the K-CRAFTS system and other systems identified under “Interfaces System Requirements, Appendix 5 and in each Section of “Program Descriptions and Re-quirements.” (The IFTA interface requirements are defined under the IFTA Functional Require-ments.)

The Proposers approach shall include the following:

1. Establishing and maintaining an interface testing environment which shall include a “rapid response” test area to enable a quick check for correct interface format and transaction processing;

2. Developing, maintaining, monitoring, and providing status for a master schedule of inter-face activities which shall be coordinated with the Project Master Plan.

The Proposer shall also describe the built-in capabilities and tools available in its proposed solution.

Data Conversion

The Proposer shall describe its approach to performing all required data conversion activities associ-ated with the project, including confirming data conversion requirements, and developing a compre-hensive Data Conversion Plan. The detailed requirements and responsibilities for data conversion are described in RFP Appendix 6 as well as each individual section “File Layouts and Conversion Requirements.” (Example 1.3.8)

The Contractor shall have responsibility for data conversion activities associated with the K-CRAFTS project. The Contractor will lead interactive conversion strategy sessions to develop a comprehen-sive Data Conversion Plan. The Contractor shall coordinate documentation of the Data Conversion Plan, with input from the KDOR Developers. The Data Conversion Plan shall, at a minimum, include:

1. All files or tables to be built in the new system;

2. Data sources for those files or tables;

3. Expected data volumes;

4. Those conversions where automated conversion tools or programming can be used to significantly reduce data conversion labor; and

5. Roles, responsibilities, and timing requirements for the data conversion effort for the State and the Contractor.


The Contractor is responsible for developing conversion routines and scripts to bring State data into the new environment with assistance from KDOR developers. The Proposer shall describe these services here. Pricing shall be separate in the Cost Proposal.

In the execution of the Data Conversion Plan outlined above, the Contractor will be responsible for the following:

1. Developing and testing automated conversion programs to support the commencement of testing and production operations. This deliverable shall include:

• Working with the State to map the conversion by field, define the conversion log-ic, and design the conversion processes;

• Developing programming specifications;

• Coding conversion programs in accordance with specifications; and

• Performing unit and integration testing of the data conversion programs.

2. Executing programs to convert legacy data into the new system, to include:

• Building any crosswalk file structures required to assist the State in developing test scenarios and conducting acceptance testing; and

• Running the data conversion programs and assisting the State with verification of the converted data in the production environment.

The State will provide legacy programmer resources to extract the relevant legacy data for conversion into a format that can be readily edited and loaded into the new environment. State resources will al-so be responsible for preparing and cleansing the legacy data for conversion. The Contractor shall provide advice and guidance for this activity.

The State shall take responsibility for certifying the accuracy of the test and production databases, and for validating all converted data, after the Contractor has warranted that the data is ready for cer-tification.

In addition to the legacy systems that contain multiple years of data, the Department also manages additional media in MS Excel spreadsheets, MS Access and paper documents. The State would an-ticipate that the Contractor is able to convert data from the IBM Mainframe, IBM AS/400, MS Excel spreadsheets and MS Access Databases. The State will provide staff to data enter legacy infor-mation stored in paper format.

Custom Automated Forms and Correspondence Configuration

Automated forms can be used to address functional requirements requiring documentation, corre-spondence, workflow, and approval of transactions. Automated forms typically replace paper forms and can be used by end users to initiate a transaction and to route the transaction through a pre-defined approval workflow. Automated forms are also used for standardized correspondence, de-fined to generate “standard” letter correspondence based on schedule, status, or other conditions that further support user customization of “standard” letters. Forms can range from simple data capture input screen(s) to sophisticated forms that edit and validate the information captured on the form. Electronic forms can also leverage electronic signatures as an approval method. To review some of the existing forms and processes used by the Division, please go to websites http://www.ksrevenue.org/abc.html ; http://www.ksrevenue.org/forms-liqdrink.html ; http://www.ksrevenue.org/forms-liqenf.html ; http://www.ksrevenue.org/dmvmc.html ; http://www.ksrevenue.org/bustaxtypesmf.html

The Proposer shall describe its approach to analyzing, establishing, documenting, and assisting in deployment of the automated electronic forms processes that are built into the system, as well as those developed during the project. The approach shall include a recommended schedule and/or pri-ority for deploying these features at the State, based on the Proposer’s experiences with implementa-tions of similar size and scope. The Proposer shall also describe all core or standard correspondence included in the COTS solution.

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The Proposer shall plan on designing, developing, and testing the recommended electronic forms. The Proposer shall include the estimated hours and cost for providing these electronic forms in the separate Cost Proposal (see RFP Section 4.11, “COST PROPOSAL TAB 5 – STAFFING PLAN BY POSITION”). Security Configuration

The proposed solution shall provide application controls to prevent unauthorized use of the system, maintain system process controls, and log all transactions. In addition, the system shall provide role-based security to allow enforcement of segregation of duties and to limit availability to application functionality, software screens, data records, data elements, and data element values, where appro-priate.

The Proposer shall describe its approach to analyzing, establishing, and documenting security func-tions across all software modules and the data warehouse, and integrating these security functions into the State’s security network.

The Proposer must fully describe its approach to security for the proposed solution, including, but not limited to, the use of firewall hardware and software, intrusion detection / prevention systems, other protective measures, and other measures that provide an in-depth defense for the proposed solution. The Proposer must fully describe its risk management approach to application development and de-ployment in terms of threat and vulnerability identification, analysis and prioritization, and mitigation techniques.

The Proposer must describe how the proposed solution will:

1. Ensure data confidentiality, including protection from unauthorized access, while:

• In transit – either through execution of secure, authenticated, two-way transac-tions, as well as ensuring that all data is encrypted beyond the reasonable threat of all outside attacks.

• In storage – ensure that all confidential data in all databases, including those from which public data is extracted, will not be compromised.

2. Include preventive and detective access controls, and reporting mechanisms, ensuring a timely and reliable process for notification to the user, custodian, owner, and / or custom-er in the event of a security breach.

3. Ensure that access controls, which include identification, authentication, authorization, and non-repudiation components that protect data against unauthorized modification, loss, and disclosure, are strictly enforceable and auditable.

4. Ensure data integrity – maintain data and transaction integrity and confidentiality; where applicable address legal and regulatory issues with regard to unauthorized access, misuse, or fraud; provide audit trails; and provide options for resolution.

5. Ensure data reliability – maintain sufficient detail and summary information to ensure all local, state, and federal statutory and regulatory reporting and compliance responsibilities.

6. Ensure data availability – maintain data and network access continuity ensuring its availability for required business processes. Discuss contingency planning controls including backup and recovery to ensure critical operations are promptly resumed and critical and confidential data are protected.

7. Ensure physical and environmental control – working with the State, identify mechanisms ensuring only authorized operations personnel access data or computer facilities unless expressly approved by the owner of the data, and determine the environmental controls required to mitigate the risk of loss.

8. Ensure application audit capabilities – implement date-time stamp and other mechanisms sufficient to provide an audit trail for identifying critical data and resource application


activity, the reconstruction of historical transactions if necessary, and the reporting of unauthorized intrusions, unauthorized activity, or attempted breaches.

9. Ensure a rigorous change management and configuration management implementation – implement processes to maintain data integrity, confidentiality, and availability in the application change management processes. A rigorous change management process will include preventive and detective controls ensuring only authorized changes are implemented.

Proposer shall propose options for configuring application security that the State may want to consid-er, and the advantages or disadvantages of the proposed approaches.

Testing

The Proposer shall describe its approach and commitment to all phases of testing required for a sys-tem of this magnitude, including, but not limited to:

1. Unit testing;

2. Integration testing;

3. System testing;

4. Regression testing;

5. Interface testing;

6. Performance (load/stress) testing; and

7. User acceptance testing.

The Proposer shall also list and describe any tools used to facilitate the testing process, including performance testing. This description shall include how testing bugs are identified and tracked within the testing tool, and the process involved with bug correction and retesting.

Testing tool costs shall be included in the separate Cost Proposal.

The Contractor must provide any required training on the proposed testing tools to all State staff members who will be required to use the proposed testing tools.

The Proposer must also specify, as a part of the hardware proposal, any needed testing infrastructure (desktops, servers, etc.) to support the proposed testing tools.

Proposer should specify number of testing staff needed for each module using prior experience as benchmark.

Testing deliverables must include a Testing Approach Document / Plan, and a Performance Testing Approach Document / Plan. Performance testing will provide, as a minimum, testing against both an-ticipated initial go-live and anticipated one year post go-live amounts of data. Proposers are ex-pected to utilize performance testing tools that report performance results to be reviewed with the State’s infrastructure technical team.

Software Revisions (Patches and Fixes)

In the course of conducting the K-CRAFTS Project, the State expects that the Software Provider will release revisions (i.e., patches and fixes) to the software being implemented for a variety of reasons, including, but not limited to, correcting errors and bugs detected in the proposed software, to extend or enhance capabilities that have been requested by users, and/or regulatory updates.

Because of the anticipated length of the K-CRAFTS Project, it is likely that such revisions may re-solve issues encountered during the development and testing phases of the project and thus need to be applied during the project. The application of revisions may also be required by the Software Pro-vider in order to be able to provide support for certain functionality that has been modified by the revi-sion. However, it is difficult to continuously apply all revisions upon their release throughout the pro-


ject because of the nature of their release schedule, the potential for disruption of project activities by their application, and the likely need for retesting and rework to accommodate their effects.

Given this situation, the Proposer shall describe the recommended strategy and approach for the ap-plication of revisions during the project lifecycle, including a specific discussion of what revisions (cat-egorized and explained as to their general subject, level of complexity, potential impact, and associ-ated strategy) are likely to be released during the duration of the project based on the software pro-posed, and how the releases will be monitored and candidates identified and evaluated for application during the project. If, for any reason, the recommended strategy includes delaying application of certain categories of revisions based on the project phase in which they are released until after go-live, an explicit strategy for how these revisions would be addressed in the post-implementation period, and how the expected impacts can be mitigated, shall be provided, based on the Proposer’s experience in previous projects. The scope of the approach to the revisions discussed should not be limited to only that software pro-vided by the Software Provider, but also include any other recommended / anticipated required ele-ments of the software "stack” used to support the scope of the software implementation requested in this RFP.

Any costs associated with this activity that the Proposer wishes to include in the Cost Proposal shall be identified and included in Schedule 8 – Other Costs included in COST PROPOSAL TAB 8 (see RFP Section 4.14).

Also, the State requires confirmation that the proposed approach to software revisions has been suc-cessfully used elsewhere in previous projects. The Proposer shall provide a client reference contact name, title, organization, and telephone number. This contact cannot be an employee of the Propos-er or any of its proposed subcontractors. Training Services The Proposer shall describe a strategy for project team training and end-user training that appropri-ately integrates with the Proposer's methodology and timeline.

The State is interested in any computer-based training solutions that the Proposer may offer. The State desires to deploy some web-based training, and will require Contractor help to accomplish that goal.

Prior to training delivery, the State shall approve all curricula, course materials, and instructors.

Documentation

The Proposer shall describe its proposed approach for developing and maintaining technical and end-user documentation, systems and operational documentation, system configuration documentation, and procedural documentation, including manuals, quick reference guides, tutorials, online help, job aids, and other techniques as appropriate. The Proposer shall describe the approach used to keep technical and user documentation current throughout the project, and throughout the life of the sys-tem.

The Proposer shall describe the online help functions delivered with the proposed software, and the processes available, if any, to customize the online help to support the software as configured and customized (if necessary) to meet the State’s business needs.

Knowledge Transfer

The Proposer shall describe its knowledge transfer strategy throughout the project to ensure that State employees are prepared to operate and maintain the system at go-live. The response shall de-scribe the specific procedures that the Proposer will undertake to mentor State staff and ensure ade-quate State experience and knowledge of the system by the time of transition.

The Proposer shall also describe its approach to transferring operation of the new system to the State. The description shall include all elements necessary to transfer a fully functioning system, in-cluding all software, hardware, data, and processes.


It is important to the State that, as a part of the Knowledge Transfer Plan, an effective mentoring pro-gram is developed for key State staff. The State is interested in innovative ideas from Proposers concerning how the mentoring vision can be practically fulfilled. Listed below are some aspects of the mentoring program that the State envisions. Proposers shall expand on the concepts articulated here to propose mentoring activities that are actionable and can be practically accomplished “on the go” in the K-CRAFTS Project environment.

1. A model support organization for the new system with key roles identified.

2. Knowledge, skills, abilities, and competencies identified for each key role.

3. Specific Personal Learning Plans (PLPs) for each key State staff assigned to key roles delineating learning goals and timeframes.

4. Assigned mentors from the Proposer’s staff to teach or demonstrate items from the PLPs.

5. Documented confirmation / verification that PLP items have been learned by key State staff.

Enterprise Readiness (Organizational Change Management)

The Proposer shall describe its approach and recommended methodology for the various compo-nents of enterprise readiness, including:

1. Communications.

2. Organizational redesign.

(a) Work redesign.

(b) Job redesign.

3. Skills needs and gap assessment.

4. Creating and mentoring change agents.

5. Leadership alignment and executive sponsorship.

6. Role mapping.

7. Organizational readiness.

8. Transition to production activities.

9. Establishment of a Help Desk.

Deployment (Roll-Out) Support

The State requires the assistance and expertise of the Proposer to put the proposed solution into production. The Proposer shall describe its approach, and the services and level of staffing proposed to ensure a successful deployment of the new system.

The State also requires a detailed Deployment / Roll-Out Plan deliverable. Listed below are some aspects of the deployment / roll out process that the State envisions. Proposers shall expand on the concepts articulated here and propose any other deployment / roll out activities that are applicable.

1. Comprehensive pre-testing of key deployment procedures.

2. A detailed Microsoft Project deployment schedule, with the cut-over components planned at the hour level, orchestrating all tasks, both manual and automated, that need to occur during the deployment period.

3. Detailed checklists for individuals engaged in executing deployment and cut-over tasks.

4. Comprehensive data integrity checkpoints to confirm that all data has been successfully converted.


5. Multiple back-ups at various recovery points so that a minor error discovered during de-ployment does not mean a complete start over from step one.

6. A comprehensive “roll back” plan in the case of a serious error that cannot be corrected “on the fly” during the deployment process. The existing KDOR systems would be re-installed and the implementation of the new integrated system would be delayed until the error is corrected.

Post-Implementation Support Services

The Proposer shall describe the nature of any proposed post-implementation support services, in-cluding:

1. Post-Implementation support activities by on-site Contractor staff;

2. Telephone support available from Contractor subject matter experts;

3. Problem reporting and resolution procedures; and

4. Other support offered (e.g., remote dial-in, web site access to patches or fixes, and knowledge base).

The State requires six months post-implementation support services with two months by on-site Con-tractor staff. In addition to this minimum on-site support period, post-implementation support services shall also include the following specific support events, even if they fall outside the two month on-site post-implementation support services window. If any of the items listed fall outside the two month on-site post-implementation support services window, then the support requirement may be met by on-call telephone support from specifically designated Contractor subject matter experts. The on-call support events include:

1. Licensing Renewals

2. Fiscal year statistical reporting.

The composition of the post-implementation support team shall be approved by the State prior to the team’s deployment. The composition of the on-call support team will be approved by the State prior to 30 days before the occurrence of any on-call support event.

Quality Assurance (QA)

In this section, the Proposer shall describe its standard Quality Assurance methodology, as well as provide an explanation as to how the Proposer ensures that its project personnel (including subcon-tractors) have been trained on the methodology, and that the methodology is in fact used and fol-lowed. The methodology description shall provide a detailed explanation of the quality assurance ac-tivities, tools, and templates, how the Proposer manages these activities and leverages the tools and templates, and how the State and its personnel are integrated into the Proposer’s QA processes.

The State is particularly interested in a Quality Assurance process and methodology which is future oriented, identifying and mitigating project risks well before they become significant issues requiring executive management intervention.

The Proposer is advised that it is highly likely that the State will engage its own QA contractor to con-duct Independent Validation and Verification (IV&V) activities on behalf of the State. It is expected that the Contractor will fully cooperate with the IV&V activities of the QA contractor.

Proposer Assumptions

The Proposer shall document any Proposer assumptions associated with the proposed implementa-tion and integration services approach.

Lessons Learned

The Proposer shall provide a discussion of the significant lessons learned from experience on prior projects of similar size and scope, and how the Proposer will apply those lessons to the K-CRAFTS Project.


3.17 TECHNICAL PROPOSAL TAB 8 – REFERENCES The Proposer shall provide a minimum of three customer references for the Proposer and three cus-tomer references for the Software Provider to meet the criteria specified below. In the case where the Proposer is its own Software Provider, then Proposer customer references and Software Provider customer references may be from the same customer(s), if desired. Also, one reference can be used to meet multiple Reference Criteria, if desired. However, references from multiple customers are preferred. The collective group of references provided must meet all Reference Criteria specified be-low. Be sure to indicate the reference criteria for which each reference is intended on the ref-erence forms.

Reference Criteria Number 1: At least one of the references for the Proposer and Software Provider (if different) shall be for an implementation of an integrated Licensing and Enforcement product for a state government. Note that the reference described in the preceding sentence does not have to be for the same version of the software that is proposed.

Reference Criteria Number 2: At least one of the references for the Proposer and Software Provider (if different) shall be for an implementation of an integrated IRP and IFTA product for a state govern-ment.

Reference Criteria Number 3: At least one of the references for the Proposer and Software Provider (if different) shall be from a director of a state government.

Reference Criteria Number 4: At least one of the references for the Proposer and Software Provider (if different) shall be from a mid-level manager.

Reference Criteria Number 5: All references shall be from production systems in operation, not im-plementations that are still in progress.

It is desirable that references come from multiple client organizations.

All references shall be submitted using the Proposed Integration Services Provider Reference Ques-tionnaire form for the Proposer and the Proposed Software Provider Reference Questionnaire form for the Software Provider. All requested information on the forms should be completed. If any re-quested information is not applicable for the reference, this should be indicated with the notation “N/A.”

The Proposer will be solely responsible for obtaining the fully completed reference check question-naires, and for including them within the original copy of the Proposer’s sealed Technical Proposal. To obtain and submit the completed reference check questionnaire, the Proposer shall follow the pro-cess detailed below exactly:

1. Proposer makes an exact duplicate (paper or Word electronic document) of the State’s forms, as they appear in RFP Section 6.

2. Proposer fills in the “Proposer Name (Integration Services Vendor) or subcontractor” blank on the Proposed Integration Services Provider Reference Questionnaire.

3. The Proposer fills in the “Software Provider Name (Software Vendor)” blank on the Pro-posed Software Provider Reference Questionnaire.

4. The Proposer fills in the Reference (Client Organization) Name and the Reference Crite-ria Number blanks on the forms.

5. Proposer sends the copy of the form to the reference it has chosen, along with a new, standard Number 10 envelope that is capable of being sealed.

6. Proposer directs the person providing the reference check feedback to complete the form in its entirety, sign and date it, and seal it within the provided envelope. The person may prepare a manual document or complete the exact duplicate Word document and print the completed copy for submission. After sealing the envelope, the person providing the reference must sign his or her name in ink across the sealed portion of the en-velope and return it directly to the Proposer. The Proposer will give the reference


check provider a deadline, such that the Proposer will be able to collect all references in time to include them within its sealed Technical Proposal.

7. When the Proposer receives the sealed envelopes from the reference check pro-viders, the Proposer will not open them. Instead, the Proposer will enclose all the un-opened reference check envelopes, in an easily identifiable larger envelope, and will in-clude this envelope as a part of the original copy of its Technical Proposal. Therefore, when the State reviews the marked original copy of the Technical Proposal, the State will find a clearly labeled envelope enclosed or attached, which contains all of the sealed ref-erence check envelopes.

8. The State reserves the right to clarify information presented in the reference check ques-tionnaires, and may consider clarification responses in the evaluation of reference checks. However, the State is under no obligation to clarify any reference check infor-mation.

Each completed questionnaire should include:

1. The Proposer’s name (or name of Software Provider or proposed subcontractor);

2. The Reference’s organization name;

3. The Reference Criteria Number(s) to which the reference relates (provided by Proposer);

4. The name of the person responding;

5. The signature of the person responding;

6. The title of the person responding;

7. The telephone number and email contact of the person responding; and

8. The date the reference form was completed; and

9. Responses to the items in the questionnaire.

3.18 TECHNICAL PROPOSAL TAB 9 – PROJECT STAFF AND ORGANIZATION The Proposer shall provide an organization chart for its proposed implementation project team. If the Proposer’s organizational structure should change for different project implementation phases of the project, please show the different organizations for each implementation phase.

The Proposer shall create a summary table for each staff category, highlighting the staff on one axis and the key skills and experience relevant to the category on the other axis.

The Proposer shall describe each role and provide resumes for each position. Proposed consultants should be available to staff the project, unless prevented from doing so by circumstances beyond the Proposer’s or Service Provider’s control. Resumes shall include the following information:

1. Proposed role on project;

2. Education and training;

3. Recent relevant experience (including start and end dates);

4. Size and scope of projects supported; and

5. Reference contact information, including e-mail address and telephone number.

The State prefers that the proposed Project Manager have prior experience as the project manager in implementing at least one integrated IRP, IFTA, licensing and tax system of a similar size and overall project scope as that proposed for the K-CRAFTS Project. Experience with the proposed software product is preferred. Additionally, a Project Management Institute (PMI) certified Project Management Professional (PMP) Project Manager (whose PMP certificate is current) is also preferred.


The State requires that the Proposer’s functional subject matter expert staff include a minimum of one person or ten percent representation from the Software Provider. Additionally, a minimum of one in-dividual from the Software Provider will be designated to attend the periodic Steering Committee meetings, and shall be empowered by the Software Provider to authorize official fully supported modi-fications to the software product to meet a State of Kansas requirement. It is expected that this des-ignated individual would be a senior member of the Software Provider’s management.

Proposer shall warrant that all proposed staff members are fully trained and conversant with the ap-plicable Proposer methodologies.

If any staff member from the Proposer’s team requires special accommodations for a disability or work limitation, please note such in this section.

The Contractor’s implementation project team is expected to perform 100% of its work on-site in To-peka except as otherwise agreed to and approved by State project leadership.

3.19 TECHNICAL PROPOSAL TAB 10 – ALTERNATIVE SERVICES APPROACH If the Proposer believes that there is a more cost efficient / effective or less risky approach with an in-creased probability of success for providing the implementation services than that specified by the State in RFP Section 2.6, then the Proposer may provide a detailed description of that additional ap-proach in this section of the proposal. If the Proposer does provide an alternative approach, then the Proposer shall also provide (in this TECHNICAL PROPOSAL TAB 10 section) the corresponding pro-ject work plan information described in RFP Section 3.16.

This TECHNICAL PROPOSAL TAB 10 is the appropriate place where Proposers may include a re-versal-of-implementation-phases alternative, if desired.

Also, this is the appropriate place where Proposers may include an off-site services alternative, if de-sired. If an off-site services alternative is proposed, then the proposed approach shall include an Off-site Coordinator on the Proposer’s staff to manage and coordinate all off-site activity. The State does not expect to manage Contractor personnel, whether located on-site or off-site.

The Proposer may present as many Alternative Services Approach combinations as is deemed nec-essary to clearly explain their offer. For each Alternative Services option presented, a separate Alter-native Cost Proposal is also required (see RFP Section 4.2 – Cost Proposal Content).

3.20 TECHNICAL PROPOSAL APPENDIX 1: FUNCTIONAL REQUIREMENTS The Proposer shall respond to all functional requirements referenced in RFP Appendix 1 using the Excel Spreadsheet. Proposers shall enter the “Fit Rating” of their COTS solution that is the software being bid. Rating Codes are:

(SF) Standard Functionality - The current release of the software completely satisfies the re-quirement. (NR) Provided in Next Release - The next release of the software will provide the requested func-tionality and that release will be publically available within one year of the date of the closing of this RFP. (MI) Minor Modification - Modifications requiring 80 or fewer hours of work. Typically this would be a report or cosmetic change not affecting the business logic of the software. (MA) Major Modification to Source Code - Modifications requiring more than 80 hours of work. (TP) Third Party Tool Needed. The requirement can be met with a known third-party product that is fully integrated with the proposed software. (NA) Cannot Meet Requirement - The desired functionality is not available.


3.21 TECHNICAL PROPOSAL APPENDIX 2: TECHNICAL REQUIREMENTS The Proposer shall respond to all technical requirements referenced in RFP Appendix 2 using the Ex-cel Spreadsheet. Proposers shall enter the “Fit Rating” of their COTS solution that is the software be-ing bid. Rating Codes are:

(SF) Standard Functionality - The current release of the software completely satisfies the re-quirement. (NR) Provided in Next Release - The next release of the software will provide the requested func-tionality and that release will be publically available within one year of the date of the closing of this RFP. (MI) Minor Modification - Modifications requiring 80 or fewer hours of work. Typically this would be a report or cosmetic change not affecting the business logic of the software. (MA) Major Modification to Source Code. Modifications requiring more than 80 hours of work. (TP) Third Party Tool Needed. The requirement can be met with a known third-party product that is fully integrated with the proposed software. (NA) Cannot Meet Requirement. The desired functionality is not available.

Additionally, Proposers shall complete the State of Kansas Application Architecture Questionnaire (see RFP Appendix 8).

3.22 TECHNICAL PROPOSAL APPENDIX 3: DATA WAREHOUSE AND REPORTING In this section, the Proposer shall list each component of the proposed data warehouse and reporting solution, describing all software and showing the estimated work effort for the development items. The Proposer shall include costs of all software and work effort in the separate Cost Proposal.

Data Warehouse

The data warehouse shall be designed to maximize performance through the use of a multi-dimensional online analytical processing (OLAP) layer. The system shall provide an ETL tool with customizable mappings that allow data from any source to be extracted, transformed, and loaded into the data warehouse (and into the OLAP layer, if present). The system shall include a collection of pre-defined ETL mappings that bring data from source systems into the data warehouse (and from there into the separate OLAP layer, if one is used). These delivered mappings will bring all of the da-ta commonly needed for reporting in the Division of Alcoholic Beverage Control. Data will be struc-tured into data marts to group related data together for use in pre-defined and ad-hoc reports. Ac-cess to data will be controlled by an administrator.

Operations

The data warehouse and data marts shall be automatically updated daily. The system shall also have the ability to permanently retain snapshots of data as of specified dates, including but not limited to the end of fiscal year, end of quarter, end of month, end of calendar year, etc.

Reporting Portal

The reporting system shall have a portal look and feel. It shall be simple and intuitive. The portal will provide access to a web-based reporting tool that will provide flexibility so that users can create the report they want. The reporting tool will contain a library with an initial set of pre-defined reports and queries that are common to the Department.


The reporting tool will have a compact but flexible user interface that will enable users to maximize access to information using a single screen. For example, for Alcoholic Beverage Licensing, users will be able to run the pre-defined reports and queries by selecting a combination of dimensions such as:

• Name;

• Address (City, County, Zip Code);

• Class of License;

• Tax Type;

• License Number;

• Calendar Year;

• Fees Collected;

• Case Number

The reporting tool will have basic options that work in conjunction with selection criteria, such as ena-bling users to select detailed or summary information or allowing users to combine totals together. Reports will permit drill downs to source elements or transactions. The reporting tool will permit users to specify report breaks, sorts, font size, paper margins, and other output parameters such as output type (e.g., including, but not limited to Web, Excel data file, PDF, Word, Excel report). These reports and queries may be tabular, graphical, or spatial. Users shall be able to customize their portal with an individualized selection of these reports and related dashboard elements. The Proposer shall estimate the work effort required to complete all custom reporting needs. For cus-tom report development, the Proposer shall assume that proposed software-specific reporting tools or third party reporting tools will be used to develop all required reports. The Proposer shall assume that reports or queries addressed in this section are to be custom-developed and are not part of the standard reports delivered as part of the proposed software. Further, the Proposer shall assume that the custom reports or queries are defined by the following levels of complexity:

Complexity Complexity Descriptions

Simple Less than or equal to 16 hours to complete entire development pro-cess, including report design, documentation, development, and testing.

Average Greater than sixteen 16 hours, but less than or equal to 40 hours to complete entire development process, including report design, doc-umentation, development, and testing.

Complex Greater than 40 hours to complete entire development process, including report design, documentation, development, and testing.

The Proposer shall not place the actual reports in this section of the hard-copy proposal. An electron-ic copy of applicable sample or mock-up reports may be included on the Technical Proposal CD, if the Proposer desires. Costs to develop and deliver these reports must be reflected in the COST PROPOSAL.

3.23 TECHNICAL PROPOSAL APPENDIX 4: MARKETING MATERIALS The Proposer may place a limited amount of marketing materials in the hard copy proposal. The Proposer may place any electronic copies of marketing materials in a folder of the Technical Proposal


CD named for this proposal appendix.

3.24 TECHNICAL PROPOSAL APPENDIX 5: EXCEPTIONS By submission of a response, the Proposer acknowledges and accepts all terms and conditions of the RFP unless clearly avowed and wholly documented in this section.

The Proposer shall review the Contract Terms and Conditions found in RFP Section 5 and may pro-vide a detailed explanation of any proposed exceptions here.

The Proposer shall copy the entire RFP Section 5, “Contract Terms and Conditions,” into this TECH-NICAL PROPOSAL APPENDIX 5.

1. Proposers shall indicate Acceptance of a stated term or condition with initials in the “Yes” space provided for each term or condition. The initials shall be the initials of the individu-al who signed the Signature Sheet and the Technical Proposal Transmittal Letter.

2. When applicable, Proposers shall indicate lack of Acceptance of a stated term or condi-tion with initials in the “No” space provided for each term or condition. The initials shall be the initials of the individual who signed the Signature Sheet and the Technical Pro-posal Transmittal Letter.

3. For any term or condition with initials in the “No” space, the Proposer shall provide a de-tailed explanation of the exception. The Proposer must submit any exceptions with exact alternatives its firm wishes to negotiate. Contract negotiations will occur in accordance with the RFP Schedule of Events (see RFP Section 2.7).

4. Proposer may submit additional terms or conditions that it desires the State to consider. These must be clearly identified in a separate section of this TECHNICAL PROPOSAL APPENDIX 5.

As part of contract negotiations, a comprehensive statement of work based on the proposal will be developed and included in the final contract between the State and the Contractor.

In no event shall a Proposer submit its own standard contract terms and conditions as a re-sponse to this RFP.

If appropriate, a separate Contract may be negotiated with the Software Provider.

3.25 TECHNICAL PROPOSAL APPENDIX 6: SAMPLE STATEMENT OF WORK (SOW) In this section, Proposers shall provide a sample Statement of Work based on the content of their Proposal.

RFP Section 4: Proposal Response Costs

4.1 SUBMISSION OF PROPOSALS - COSTS The format and sections of the Cost Proposal shall conform to the tabbed structure outlined below. All tabs shall be labeled appropriately. Adherence to this format is necessary in order to permit effec-tive evaluation of proposals.

The Cost Proposal shall be in the following format:


Cost Proposal Content Checklist

Title Page

TAB A: Table of Contents

TAB B: Executive Summary

TAB C: Administrative Requirements

TAB 1: Schedule 1 – Summary Presentation

TAB 2: Schedule 2 – Total Cost Summary

TAB 3: Schedule - Deliverables Payment (Deliverables are by MODULE)

TAB 4: Schedule 4 – Staffing Plan by Activity

TAB 5: Schedule 5 -- Staffing Plan by Position

TAB 6: Schedule 6 – Training Breakdown

TAB 7: Schedule 7 – Enhancements and Modifications

TAB 8: Schedule 8 – Other Costs

TAB 9: Schedule 9 – Labor Rates

TAB 10: Essential Hardware and Software Costs

TAB 11: Optional Software Costs

4.2 COST PROPOSAL CONTENT Cost information is to be provided in accordance with the templates provided in RFP Appendix 4, “Cost Proposal Schedules.” The following explains the content that is required in each of the sections of the Cost Proposal. All project assumptions shall be placed in the Technical Proposal.

Proposers shall present as their primary cost proposal an onsite solution with the implementation phases ordered.

If an alternative is proposed reversing the order of the implementation phases, the Proposer shall prepare a separate and complete Alternative Cost Proposal for the order reversal solution.

Clearly label the Alternative Cost Proposal with the inscription “Alternative Cost Proposal – <<<Ap-propriate Descriptor>>>” on the title page.

If an off-site alternative is proposed, the Proposer shall prepare a separate and complete alternative Cost Proposal for the off-site solution. Clearly label the Alternative Cost Proposal with the inscription “Alternative Cost Proposal – <<<Appropriate Descriptor>>>” on the title page.

4.3 COST PROPOSAL TITLE PAGE The title page shall be placed as the front cover and / or insert and includes:

1. The Bid Event ID (EVT0001929).

2. The title of the RFP (K-CRAFTS).

3. The RFP Closing Date (Proposal Submission Deadline from the RFP Schedule of Events in RFP Section 2.7).

4. The Proposer’s name.

5. The inscription, “Cost Proposal.”


6. A separate and distinct control number for each of the hard copies placed in the bottom right corner. The control number naming convention is <Proposer Name>-<sequential number> (e.g., “Acme-7”). Please ensure that the signed original copy is designated with control number “1.”

4.4 COST PROPOSAL TAB A: TABLE OF CONTENTS The Cost Proposal shall be submitted with a table of contents that clearly identifies and denotes the location of each section and sub-section of the Cost Proposal, with hyperlinks to the sections from the table of contents. Each page of the response shall be clearly and uniquely numbered. Additionally, the table of contents shall clearly identify and denote the location of all enclosures and attachments to the proposal.

4.5 COST PROPOSAL TAB B: EXECUTIVE SUMMARY The Proposer shall provide an overview of the Cost Proposal which describes any pricing approach-es, discounts, and reasons why the Proposer’s combined technical and cost approach is the best val-ue to the State.

If an off-site alternative is proposed, then in the ALTERNATE COST PROPOSAL TAB B – EXECU-TIVE SUMMARY clearly describe why the off-site alternative is economically or otherwise advanta-geous for the State to consider. Specifically point out where savings will be realized over the primary proposal.

4.6 COST PROPOSAL TAB C: ADMINISTRATIVE REQUIREMENTS The Proposer must fill out the Signature Sheet form and submit it with the Cost Proposal as the first entry in this section. The person who signs the Cost Proposal Signature Sheet must be the same person who signed the Technical Proposal Signature Sheet.

Immediately following the Signature Sheet form, Proposers shall include, as the second entry in this section, a copy of each proposed Software License and Annual Maintenance Agreement (Agreement) for the Software Provider and all proposed Third Party Software Providers. Provide the Software Provider’s Agreement first, and then all Third Party Software Provider Agreements in alphabetical or-der.

4.7 COST PROPOSAL TAB 1: SCHEDULE 1 – SUMMARY PRESENTATION This section shall include Schedule 1 – Summary Presentation from RFP Appendix 4, “Cost Proposal Schedules.”

This schedule summarizes key data, such as total costs by year, average hourly rates by year, hours by work activity by year, etc., from several of the other schedules and is intended to assist in evaluat-ing the Cost Proposal.

Schedule 1 / Table 1 – Entry is required. Summarize Schedule 2 and 3 here.

Schedule 1 / Table 2 – No entry is required. Table pulls data from Schedule 4.





Schedule 1 / Table 7 – Proposers shall enter the Total Essential Hardware and Software Costs from Cost Proposal Tab 10.

Schedule 1 / Table 8 – Proposers shall enter the Optional Software Costs from Cost Proposal.


4.8 COST PROPOSAL TAB 2: SCHEDULE 2 – TOTAL COST SUMMARY This section of the Proposer’s response shall include Schedule 2 – Total Cost Summary from RFP Appendix 4, “Cost Proposal Schedules.” This schedule is comprised of four sections:

1. Section 1 of Schedule 2, the Required Business and Technology Software Licenses sec-tion, shall include pricing for the five State fiscal years FY13, FY14, FY15, FY16 and FY17 for any fees related to the licensing of the proposed software product and associated training.

a. Provide the licensing cost for each individual application module and third-party tool included as part of the proposed solution and any other associated proposed soft-ware tool. The costs for each item are to be quoted separately unless bundled pric-ing is offered.

b. Proposers shall enter the Required Business and Technology Software Licenses in-formation into Section 1 of the Schedule.

2. Section 2 of Schedule 2, the Ongoing Software License and Maintenance Support sec-tion, shall include pricing for the ongoing software annual maintenance fees.

a. Any fees related to maintenance shall be included, as well as any discounts provid-ed. The initial basis for annual maintenance fees shall be based on the negotiated purchase price for the licensed products (not the “then list price” of software pur-chased).

b. In no event shall any maintenance fees for any proposed software products be in-creased during the period covered by this RFP and in any year thereafter by more than the lower of: (a) two percent of the previous year's maintenance fees, or (b) the increase in the U.S. Consumer Price Index (CPI) as published by the Bureau of La-bor Statistics. Notwithstanding the foregoing, in no event shall the maintenance fac-tor used to calculate the annual maintenance fees exceed the “then current” factor in effect used generally by the Software Provider to calculate annual maintenance fees for similarly situated licensees in the United States.

c. Proposers shall enter the Ongoing Software License and Maintenance Support in-formation into Section 2 of the Schedule.

3. Section 3 of Schedule 2, the Implementation Services section, shall provide pricing for the proposed solution for each specified activity not covered under the fixed deliverables. This section shall be consistent with Schedule 4 Staffing Plan by Activity submitted in COST PROPOSAL TAB 4 and Schedule 5 – Staffing Plan by Position submitted in COST PRO-POSAL TAB 5.

4. Section 4 of Schedule 2, the Hardware, Network and Security Costs section, shall provide pricing for the proposed solution for hardware, network and security costs the vendor be-lieves are necessary to run and support this application successfully.

4.9 COST PROPOSAL TAB 3: SCHEDULE 3 – DELIVERABLES PAYMENT This section shall include the proposed Schedule 3 – Deliverables Payment from RFP Appendix 4, “Cost Proposal Schedules,” based on the Proposer’s implementation methodology that supports the Detailed Description of Services to be provided. The Total Payment Amount on Schedule 3 shall be consistent with the Total Implementation Services Cost on the proposed Section 3 – Implementation Services portion of Schedule 2 – Total Cost Summary submitted in COST PROPOSAL TAB 2. The Schedule 3 – Deliverables Payment shall include a 20 percent retainage as specified in RFP Sec-tion 5.50, “Payment Retainage.”

Proposers shall enter a Proposer-defined Deliverable Reference Number, list their payment related deliverables, specify an Estimated Due Date for each deliverable, and provide the payment amount attributed to each deliverable in Schedule 3 – Deliverables Payment.


This schedule represents the proposed payment plan for the Contract resulting from this RFP.

4.10 COST PROPOSAL TAB 4: SCHEDULE 4 – STAFFING PLAN BY ACTIVITY This section shall include Schedule 4 – Staffing Plan by Activity from RFP Appendix 4, “Cost Proposal Schedules.”

No Entry is required on this schedule. It pulls totals for each work activity by month and fiscal year from Schedule 5 – Staffing Plan by Position. Calculate estimated FTEs by month and average hourly rates by fiscal year.

4.11 COST PROPOSAL TAB 5: SCHEDULE 5 – STAFFING PLAN BY POSITION This section shall include the Schedule 5 – Staffing Plan by Position from RFP Appendix 4, “Cost Proposal Schedules.”

Working from a resource loaded and leveled Microsoft Project work plan, Proposers shall enter each position scheduled for each work activity and the hours scheduled by month.

For any Post-Implementation Support activities falling beyond the specified timeframe in Schedule 5, Proposers shall use the last available cell in Schedule 5 to reflect these total costs.

4.12 COST PROPOSAL TAB 6: SCHEDULE 6 – TRAINING BREAKDOWN This section shall include Schedule 6 – Training Breakdown from RFP Appendix 4, “Cost Proposal Schedules.”

In this schedule, Proposers break down training activities by curriculum development and training de-livery related activities. This schedule also requires a subject, description, and training delivery method for each training course included as part of the solution. Proposers shall enter the required descriptions, the Estimate of Hours, and the Cost for each of the Training Related Activities.

It is expected that the Schedule 6 Total, All Training Related Activities shall be consistent with the To-tal Cost FY13 – FY17 figure in the Training section of Schedule 5 – Staffing Plan by Position.

4.13 COST PROPOSAL TAB 7: SCHEDULE 7 – ENHANCEMENTS AND MODIFICATIONS This section shall include Schedule 7 – Enhancements and Modifications from RFP Appendix 4, “Cost Proposal Schedules.”

This schedule requires a description of the level of effort estimated for each proposed enhancement or modification cross-referenced by requirement reference number. Proposers shall also enter an hour estimate in the appropriate column for a Minor Modification, a Major Modification, a Custom Re-port or Query, or for Custom Development. The cost of each item is also required.

4.14 COST PROPOSAL TAB 8: SCHEDULE 8 – OTHER COSTS This section shall include Schedule 8 – Other Costs from RFP Appendix 4, “Cost Proposal Sched-ules.”

This schedule requires a detailed description and any assumptions for all other costs included as part of the solution which have not been defined and described in other parts of the Cost Proposal Sched-ules.

In accordance with RFP Section 3.16, any costs that the Proposer wishes to include in the Cost Pro-posal associated with patches and fixes shall be included here.


4.15 COST PROPOSAL TAB 9: SCHEDULE 9 – LABOR RATES Although the State will not reimburse the Proposer on a “time and materials” or “not to exceed” basis for project deliverables, it may be necessary to make scope changes that require assistance in areas not anticipated for which the State may consider a time and materials payment arrangement. For this purpose, the Proposer shall provide all inclusive (travel and all other expenses included) billing rates for a range of different skill areas using Schedule 9 – Labor Rates provided in RFP Appendix 4, “Cost Proposal Schedules.” These Labor Rates shall be valid for the entire period of the resulting Contract.

4.16 COST PROPOSAL TAB 10: ESSENTIAL HARDWARE AND SOFTWARE COSTS If third-party products (middleware, database management software, operating system software, compilers, job schedulers, security-related packages, etc.) are required to successfully implement the proposed integrated software solution, the Proposer shall identify these products and include a work-sheet describing the cost, quantities, release levels, etc., of each of these products.

The Proposer shall also list the itemized costs associated with providing the essential hardware and systems software needed, specifying the required cache servers, web servers, application servers, database servers, and all other associated devices and applicable systems software. Appropriate maintenance costs shall be included for the implementation timeframe (if applicable) and for a period of up to 6 years, after the proposed implementation timeframe.

Installation costs for the essential hardware and systems software shall also be provided.

All components (including installation and maintenance) shall be identified and costs itemized so that the State may make its own independent estimates. The State may or may not exercise the option to purchase the Proposer’s hardware or installation proposal during final contract discussions.

4.17 COST PROPOSAL TAB 11: OPTIONAL SOFTWARE COSTS In accordance with the Optional Functionality paragraph of RFP Section 3.13, if the Proposer is offer-ing additional functionality not specifically requested by the State, the licensing, maintenance, sup-port, and implementation services costs associated with the proposed optional software shall be pro-vided here. Proposers are required to fully disclose all fees associated with the optional software. Prices quoted shall be considered valid until the end of calendar year 2013.

The State may or may not exercise the option to procure optional software functionality.


RFP Section 5: CONTRACT TERMS AND CONDITIONS

Proposer’s acceptance of each term and condition must be initialed below. Any exceptions shall be explained in detail and submitted with the proposal. The State will take into consideration Pro-poser’s willingness to accept without exception all terms and conditions contained in this Sec-tion. State reserves the right to reject any exceptions. All other contract terms or conditions Pro-poser would like the State to consider must be submitted with the proposal. All other terms or conditions not timely submitted with the proposal will be rejected and may be grounds for rejec-tion of the entire proposal. Please refer to RFP Section 3.24 for instructions concerning how to present the proposed Contract Terms and Conditions in the proposal.

5.1 Contract Documents. This Request and any amendments and the response and any amendments of the Contractor shall be incorporated along with the DA-146a into the written contract which shall compose the complete understanding of the parties.

In the event of a conflict in terms of language among the documents, the following order of prec-edence shall govern:

• Form DA-146a;

• Written modifications to the executed contract;

• Written contract signed by the parties;

• This Request including any and all addenda; and

• Contractor's written proposal submitted in response to this Request as finalized.

Acceptance: ____ Yes (Initial) ____ No (Initial and Provide a Detailed Explanation of Exception)

5.2 Contract. The successful vendor will be required to enter into a written contract with the State. The vendor agrees to accept the provisions of form DA-146a (Contractual Provisions Attachment – please see RFP Section 5) which is incorporated into all contracts with the State and is attached to this request.

Acceptance: ____ Yes (Initial) ____ No (Initial and Provide a Detailed Explanation of Exception

5.3 Definitions.

A. Acceptance – is the State’s written notification to the Contractor that it elects to retain and pay for the software, deliverables, or services.

B. Confidential Information – is any and all of the State’s information in any form, which relates to the State’s past, present, or future research, development, and activities disclosed to Contractor in the course of negotiation and performance of this contract and is agreed to be confidential or proprietary.

C. Custom Software – all computer programs, procedures, rules, or routines in object code machine-readable language, include source code, which instruct the operation of the computer and are developed under or pursuant to this contract. Such software may be


on media, which includes, but is not limited to, CDs, tapes, disks, or other methods or recording programs and routines.

D. Delivery Date – is the contractual date and time agreed upon by the parties and stated in the contract on which a stated Deliverable shall be received at the Site. Delivery of deliverables to the State must be received by 10:00 a.m. Site local time to be timely.

E. Deliverable – Any measurable, tangible, verifiable outcome, result, or Work Product that is produced as part of the work to complete this Project or any part of this Project. Also included is an external deliverable, which is a Deliverable that is subject to approval and Acceptance by the K-CRAFTS Project Director or other authorized State personnel.

F. Documentation – is any written material relating to or explaining the operation or use of the Program and related Work Product. Documentation also means and includes all basic, descriptive training and instructive materials pertaining to the Software such as flow charts, instruction manuals, logic diagrams, and calculations, which shall be furnished by the licensor as stated in this Contract. Documentation also means all written materials pertaining to the licensed software as the context may require, including, but not limited to, user manuals specifications, descriptive information, and materials, file lay outs and data models; design software modification, enhancement or update; and materials pertaining to the features, installation, use, functioning, and operation of the software, implementation plans and other documentation developed in connection with the software installation planning, test plans, and acceptance or other documentation.

G. Left Blank

H. First Full Functional Use – shall mean and include, but not be limited to, a finding by the State that all components and equipment have been delivered and installed; that the software has been installed on the equipment; that all documentation is complete; that connectivity with all identified interfaces has been established; that full functionality exists among all elements of the system; that all aspects of operation are determined by the State to be in working condition and performing with internal consistency and substantially conform to the specifications contemplated by this Contract.

I. Goods – tangible or movable personal property other than money.

J. Intellectual Property Rights – all rights in all U.S. and foreign letters patent and applications for letters patent, rights in copyright and rights of authorship, and rights in trade secrets under common law, state law, federal law, and the laws of foreign countries sufficient for the State to use the software without violating the Intellectual Property Rights of any person.

K. Milestone – a significant event identified in the project plan, including but not limited to completion of a major deliverable.

L. Modification – is a material addition, deletion, or change to the functionality of a component of the system requested by the State which shall be provided by the Contractor under this Agreement.

M. Object Code – is the machine-executable code derived in whole or part from the complied source code.

N. Pre-Existing Software – all computer programs, procedures, rules, or routines in object machine-readable language, including source code, which instruct the operation of the computer and are furnished under this Agreement. Such software may be media including CDs, tape, disks, chips, or other methods of recording programs and routines.

O. Problem – is any actual, apparent, or suspected failure of any Software Product, Work Product, version, or revision to function in conformity with its specifications or user documentation or to perform in a consistent and correct manner as expected by the State. The term includes any work Contractor is performing that the State determines is unsatis- factory.


P. Problem Resolution – a workaround procedure, supplemental code (i.e., a patch), or a new release that eliminates a problem.

Q. Processor – is the equipment that allows the software to execute its designed functions.

R. Revision – a revision consists of modifications and corrections to bring existing software functionality to required standards. The Contractor shall deliver Revisions for both Pre- Existing Software and Custom Software as necessary to comply and maintain compliance with the requirements of this Contract, without additional cost to the State.

S. Services – the act of doing something useful for a fee.

T. Site – the location (as determined by the State) of the State’s facilities where the soft ware and software documentation shall be used.

U. Source Code – is any human-readable code developed from which the program when compiled becomes object code.

V. State – means the State of Kansas, Department of Revenue, K-CRAFTS Project, and any State Department, Agency, Board of Trustees, or other governing body, affiliates, Of- ficers, Directors, Agents, and Employees.

W. Task Order – is the mechanism by which the State and Contractor mutually agree upon the delivery of Services and Deliverables for which payment is to be made by the State.

X. Task Order Request – is the description of an initially perceived problem or the initially conceived desired result of implementation of a Task Order used to perform the Initial Analysis.

1. The Task Order Request presented to the Contractor by the State shall provide the Contractor information on the following:

o Scope.

o Description of tasks.

o Technical environment.

o Desired Deliverables.

o State assets available to assist Contractor in completion of the Task Or-der.

o Requested completion date.

2. An Initial Analysis is the procedure by which the Contractor reviews a Task Order Request, reviews the present environment, and uses the information to deter-mine the proposed cost to the State for Contractor to perform a Detailed Needs Assessment based on the Task Order Request. The Initial Analysis concludes with the production and delivery of a Preliminary Response.

3. A Preliminary Response is the Contractor’s documentation of an Initial Analysis prepared in response to a Task Order Request and which shall clearly identify costs and shall specify personnel resources to be allocated for execution of Task Orders. Any Initial Analysis performed by Contractor shall be at no cost to the State. The Preliminary Response will include at a minimum the following infor-mation:

o A list of tasks to be done.

o A list of Deliverables proposed.

o Start date for the Detailed Needs Assessment.

o Finish date for the Detailed Needs Assessment.


o Staffing resources for the Detailed Needs Assessment.

o Total estimated hours to complete Detailed Needs Assessment.

o Estimate of State assets and/or staff needed.

4. A Detailed Needs Assessment is the procedure by which the Contractor analyzes the desired result presented within the Task Order Request, together with the in-formation gathered during the Initial Analysis and information related to affected existing systems, and uses the information to derive potential work plans and their associated costs to complete the Task Order. Contractor shall provide the State with a written report produced from the information obtained and prepared during the Detailed Needs Assessment. This Detailed Needs Assessment report shall become a component of the Task Order. The written Detailed Needs As-sessment report will include the following:

o A copy of the related Task Order Request and Preliminary Response.

o A detailed analysis of the desired result, problem, or task.

o A detailed work plan to be used to complete the Task Order.

o A list of possible impact(s) the work plan may have on other Services or Deliverables to be or being provided by the Contractor, as well as possi-ble impact(s) on affected Manual and automated existing systems.

o The starting and completion timeframes for start and completion of the work.

o Total person hours to be expended by personnel classification, if appli-cable.

o The desired result to be achieved.

o The name of the State employee(s) responsible for acceptance of the specific Deliverables, Services, and payment of associated invoices.

o The precise, mutually agreed to cost to the State.

o The work plan or its reference to be followed during the Task Order per-formance.

o The payment schedule or its reference applicable to each Deliverable or Service.

o The estimated start date and completion date of the Task Order.

o The precise and specific criteria for acceptance of Deliverables and Ser-vices.

o Reference to appropriate Quality Assurance Review Processes created by the State and Contractor.

o A line providing for signatures of, and the date signed by the Contractor, the Contract Administrator, and the K-CRAFTS Project Manager author-izing work under the Task Order.

o A line provided for each party’s signature to indicate explicit acknowl-edgment, verifying that no terms regarding acceptance criteria, nor time for performance, nor the cost to the State, nor Services, nor Delivera-bles, nor the work plan may be changed or altered in any way without the agreement of all signatories to the Task Order.

Y. Stakeholder – individuals and organizations that are involved in or may be affected by project activities.


Z. Good Response Time – means a software function executed by a stakeholder on the integrated system that takes less than two seconds to complete.

AA. Key Personnel – is the staff proposed and identified by the Proposer in its response to this procurement to work under this Contract. The Proposer shall identify, as Key Per- sonnel, those persons who will have day-to-day responsibility for the Proposer’s management of the K-CRAFTS Project as well as team leaders or critical technical experts responsible for the accomplishment of major K-CRAFTS Project tasks. Primary present- ers at the software demonstrations and oral presentations shall be Key Personnel. Key Personnel shall be employed by the Proposer or the subcontractor(s) or have letters of commitment for employment contingent upon award.

BB. Procurement Terms – a glossary of common procurement terms is available at http://da.ks.gov/purch, under “Purchasing Forms”.


5.4 Contract Formation. No contract shall be considered to have been entered into by the State until a written contract has been signed by the selected Proposer and all statutorily required signatures and certifications have been rendered by the State.


5.5 Notices. All notices, demands, requests, approvals, reports, instructions, consents, or other communications (collectively "notices") which may be required or desired to be given by either party to the other shall be IN WRITING. Contractor shall address all Notices to the State as follows:

Kansas Procurement and Contracts 800 SW Jackson St, Suite 600 Topeka, Kansas 66612-1286 RE: Bid number EVT0001929

or to any other persons or addresses as may be designated by Notice from the State.

Contractor shall provide an official address for all Notices to it from the State.


5.6 Termination for Cause. The Director of Purchases may terminate this contract, or any part of this contract, for cause under any one of the following circumstances:

• The Contractor fails to make delivery of goods or services as specified in this contract.

• The Contractor provides substandard quality and/or workmanship.

• The Contractor fails to perform any of the provisions of this contract, or so fails to make progress as to endanger performance of this contract in accordance with its terms.

The Director of Purchases shall provide Contractor with written notice of the conditions endanger-ing performance. If the Contractor fails to remedy the conditions within ten days from the receipt

http://www.da.ks.gov/purch�


of the notice (or such longer period as State may authorize in writing), the Director of Purchases shall issue the Contractor an order to stop work immediately. Receipt of the notice shall be pre-sumed to have occurred within three days of the date of the notice.

In the event of the termination or expiration of this Contract, Contractor also agrees that should the Contract terminate or expire for any reason, including non-renewal of the Contract, State will withhold 100% of any scheduled payment to Contractor. These payments will be released only when the State decides in its sole determination that any and all obligations of Contractor related to this Contract have been satisfied to the State’s satisfaction as of the termination or expiration date of this Contract.


5.7 Termination for Convenience. The Director of Purchases may terminate performance of work under this contract in whole or in part whenever, for any reason, the Director of Purchases shall determine that the termination is in the best interest of the State of Kansas. In the event that the Director of Purchases elects to terminate this contract pursuant to this provision, it shall provide the Contractor written notice at least 30 days prior to the termination date. The termination shall be effective as of the date specified in the notice. The Contractor shall continue to perform any part of the work that may have not been terminated by the notice.

In the event of the termination or expiration of this Contract, Contractor also agrees that should the Contract terminate or expire for any reason, including non-renewal of the Contract, State will withhold 100% of any scheduled payment to Contractor. These payments will be released only when the State decides in its sole determination that any and all obligations of Contractor related to this Contract have been satisfied to the State’s satisfaction as of the termination or expiration date of this Contract.


5.8 Debarment of State Contractors. Any Contractor who defaults on delivery or does not perform in a satisfactory manner as defined in this Request may be barred for a period up to three years, pursuant to K.S.A. 75-37,103, or have their work evaluated for pre-qualification purposes.


5.9 Rights and Remedies. If this contract is terminated, the State, in addition to any other rights provided in this contract, may require the Contractor to transfer title and deliver to the State in the manner and to the extent directed, any completed materials. The State shall be obligated only for those services and materials rendered and accepted prior to the date of termination.

In the event of termination, the Contractor shall receive payment prorated for that portion of the contract period services were provided and/or goods which were accepted by State subject to any offset by State for actual damages including loss of federal matching funds.

In the event State determines in its sole discretion that Contractor has not provided the services or the software does not operate in the manner expected by the State, Contractor shall be re-


sponsible for any and all costs and expenses, including attorney’s fees and expenses to hire oth-er vendors to modify, complete, adjust, finish, or fix the software as determined by the State.

The rights and remedies of the State provided in this contract shall not be exclusive and are in addition to any other rights and remedies provided by law.


5.10 Force Majeure. The Contractor shall not be held liable if the failure to perform under this contract arises out of causes beyond the control of the Contractor. Causes may include, but are not limited to, acts of nature, fires, tornadoes, quarantine, strikes other than by Contractor's employees, freight embargoes, or similar events.


5.11 Waiver. Waiver of any breach of any provision in this contract shall not be a waiver of any prior or subsequent breach. Any waiver shall be in writing and any forbearance or indulgence in any other form or manner by State shall not constitute a waiver.


5.12 Independent Contractor. The Contractor, in the performance of this contract, shall be acting solely as an independent contractor and not as an agent, employee, partner, joint venture, or associate. The employees or agents of the Contractor shall not be construed to be the employees or agents of the State for any purpose whatsoever.

The Contractor accepts full responsibility for payment of unemployment insurance, workers com-pensation, and social security, as well as all income tax withholdings for its employees, and any other taxes or payroll deductions required by law for its employees engaged in work authorized by this contract.


5.13 Staff Qualifications. The Contractor warrants that all persons assigned by it to the performance of this contract shall be employees or contracted agents of the Contractor (or a specified Subcon- tractor) and shall be fully qualified to perform the work required. The State shall review and/or approve/disapprove all Contractor staff prior to assignment. This may include but is not limited to review of resumes, interviews, and contacting references. The State also reserves the right to review and/or approve/disapprove all contract staff prior to the start of each deliverable. Contractor staff will be expected to work as part of a cooperative team effort with contracted staff from other firms as well as with State staff. Contractor agrees to timely supply resume information of staff to the K-CRAFTS Project Manager. Contractor’s staff will perform their duties in


accordance with State policies, procedures, and requirements, using State specifications and standards. The policies, procedures, requirements, specifications, and standards will be provided to the Contractor upon request. The work day schedule and leave time for Contractor’s staff will be coordinated and approved by the State. In cases where the State’s holidays conflict with Contractor’s, the State’s holiday schedule will prevail.

Removal of Staff: Upon the written request of the State of Kansas, any Contractor staff, who in the opinion of the State of Kansas is unacceptable, shall be immediately removed from the pro-ject staff. Such removal request shall not be made without substantial reason and rationale, which must be provided in writing. In the event that any Contractor staff is removed, the Contrac-tor shall fill the vacancy promptly with an acceptable replacement, as determined by the K-CRAFTS Project Manager, in a manner that does not adversely impact the project. When any replacement is necessary, the “ramp up time” for the replacement staff time will be at no cost to the State. The “ramp up time” for replacement staff will be determined by the State and the Con-tractor on a case-by-case basis.

Substitution and Replacement Staff: Staff whose names and resumes are submitted in the proposal shall not be removed from this project without prior approval of the K-CRAFTS Project Manager. Substitute or additional Staff shall not be used for this project until a resume is re-ceived and approved by the K-CRAFTS Project Manager. Any Contractor staff replaced for any reason shall be replaced promptly with an individual who possesses equal or greater relevant abilities and qualifications to those previously approved. State must approve in writing all re-placement Staff and can require Contractor to hire any person or company should the State de-termine it is beneficial for the Project. Contactor shall be responsible for any and all costs and expenses for any replacement Staff.

Contractor will not reassign, terminate, or add staff for this contract without prior written consent issued by the State.

Failure of the Contractor to provide qualified staffing at the level required by the proposal specifi-cations may result in termination of this contract and/or damages.


5.14 Subcontractors. The Contractor shall be the sole source of contact for this Contract. The State will not subcontract any work under the contract to any other firm and will not deal with any subcontractors. The Contractor is totally responsible for all actions and work performed by its subcontractors. All terms, conditions, and requirements of the contract shall apply without qualification to any services performed or goods provided by any subcontractor.

The State of Kansas requires tax information regarding all subcontractors be disclosed on the Signature Sheet, indicating company name, contact information, and tax number. Additional pages may be added, as required (see “TAX CLEARANCE FORM,” RFP Section 6).


5.15 Conflict of Interest. The Contractor shall not knowingly employ, during the period of this contract or any extensions to it, any professional personnel who are also in the employ of the State and who are providing services involving this contract or services similar in nature to the scope of this contract to the State. Furthermore, the Contractor shall not knowingly employ, during the period of this contract or any extensions to it, any state employee who has participated in


the making of this contract until at least two years after his/her termination of employment with the State. The Contractor also agrees to disclose to the PNC any and all relationships with potential contractors submitting a proposal on a subsequent RFP for services outlined in this RFP. The Contractor shall identify all other existing or potential conflicts of interest that would prevent the Contractor from fully performing the tasks described in the RFP. Such disclosure will be a continuing requirement subsequent to award of a contract and for the life of the contract.


5.16 Confidentiality. All State information or data is considered confidential information and data. Contractor agrees to return any or all data furnished by the State promptly at the request of State, in whatever forms it is maintained by Contractor. Upon termination or expiration of this agreement, the Contractor and each of the persons and entities working for the Contractor shall return to the State all data or information, electronic or written, or descriptive materials, or any other related matter of any type including but not limited to drawings, blueprints, descriptions, or other papers or documents which contain any such confidential information.

A. Contractor will have access to information and private or confidential data, maintained by the State of Kansas, to the extent necessary to carry out Contractor’s responsibilities un-der this contract. This information and data may include, but is not limited to, personal fi-nancial information, information regarding undercover law enforcement agents, social se-curity numbers, student employees, medical providers and/or their recipients, etc. Con-tractor agrees that any information or data it may have in its custody regarding any partic-ipant shall be kept strictly confidential. All the information and data of the State shall be considered to be confidential and private and Contractor may not disclose any infor-mation or data at any time to any person or entity. Contractor agrees to comply with all state and federal confidentiality laws in providing services under this contract.

1. Contractor shall be fully responsible for providing adequate supervision and train-ing to its agents and employees to ensure compliance with all applicable State and Federal Acts regarding confidentiality and/or open records issues. No pri-vate or confidential data collected, maintained, or used in the course of perfor-mance of this contract shall be disseminated by Contractor except as required by statute, either during the period of the contract or thereafter. Contractor shall on-ly use confidential information as required by this contract. All electronic data shall be secured through encryption or other comparable security measures.

2. Contractor shall limit access to confidential information solely to staff of Contrac-tor who has a need to know for purposes of fulfilling Contractor’s obligations un-der this contract. Contractor shall not remove confidential information from State’s site without State’s prior written approval.

3. Contractor shall hold State harmless and indemnify the State for expenses or damages, of any kind, incurred or suffered by the State as a result of the unau-thorized disclosure of said data by Contractor or any agent, representative, em-ployee, or subcontractor of Contractor. Contractor shall notify the State of any loss or breach of confidential information or data within 24 hours of receipt of such knowledge. Contractor shall also be responsible and liable for any and all damages to individuals due to such breaches or loss of confidential information. In the event of any security breach in which the confidential information of one or more individuals is compromised or is potentially compromised, Contractor shall be responsible and pay for any and all damages, expenses, and costs (including lost wages and efforts spent to defend or correct against identity theft) caused to the State or any individual for the disclosure of any State Information. Contractor


shall provide notice to the State and affected individuals of such disclosure and shall also offer free of charge to individual or the State identify theft protection in-surance for a period of five years. These terms shall also apply to any third-party vendor or subcontractor.

4. The Contractor shall hold all such confidential information in trust and confidence for the State, and agrees that it and its employees will not, during the perfor-mance or after the termination of this agreement, disclose to any person, firm, or corporation, or use for its own business or benefit any information obtained by it while in execution of the terms and conditions of this agreement.

5. Any staff, individual, or entity assigned to work for Contractor under this agree-ment shall separately sign an agreement(s) to the effect of this Subsection and also but not limited to the Department of Revenue computer security user agreement.


5.17 Nondiscrimination and Workplace Safety. The Contractor agrees to abide by all federal, State, and local laws, rules, and regulations prohibiting discrimination in employment and controlling workplace safety. Any violations of applicable laws, rules, and regulations may result in termination of this contract.


5.18 Environmental Protection. The Contractor shall abide by all federal, State, and local laws, rules, and regulations regarding the protection of the environment. The Contractor shall report any violations to the applicable governmental agency. A violation of applicable laws, rules, or regulations may result in termination of this contract.


5.19 Care of State Property. The Contractor shall be responsible for the proper care and custody of any State-owned personal tangible property and real property furnished for Contractor's use in connection with the performance of this contract, and Contractor will reimburse State for such property's loss or damage caused by Contractor, normal wear and tear excepted.


5.20 Prohibition of Gratuities. The Contractor nor any person, firm, or corporation employed by the Contractor in the performance of this contract shall offer or give any gift, money, anything of value, or any promise for future reward or compensation to any State employee at any time.



5.21 Retention of Records. Unless the State specifies in writing a different period of time, the Contractor agrees to preserve and make available all of its books, documents, papers, records, and other evidence involving transactions related to this contract for a period of five years from the date of the expiration or termination of this contract.

Matters involving litigation shall be kept for one year following the termination of litigation, includ-ing all appeals, if the litigation exceeds five years.

The Contractor agrees that authorized federal and State representatives, including, but not limited to, personnel of the using agency or independent auditors acting on behalf of State and/or federal agencies shall have access to and the right to examine records during the contract period and during the five year post-contract period. Delivery of and access to the records shall be at no cost to the State.


5.22 Antitrust. If Contractor elects not to proceed with an antitrust cause of action resulting from the performance of the Agreement, Contractor assigns to the State all rights to and interests in any cause of action it has or may acquire under the antitrust laws of the United States and the State of Kansas relating to the particular products or services purchased or acquired by the State pursuant to this Agreement.


5.23 Modification. This contract shall be modified only by the written agreement of the parties with the approval of the PNC. No alteration or variation of the terms and conditions of the contract shall be valid unless made in writing and signed by the parties. Every amendment shall specify the date on which its provisions shall be effective. No oral agreements will be effective to alter this contract. No term or condition of this Contract, documents incorporated by reference, exhibits, or related documents may be changed solely by the Contractor. This Contract, exhibits, documents incorporated by reference, and any other related documents cannot be amended, changed, or modified (despite any statement contained therein to the contrary), except by a writ ten amendment executed by and mutually agreed upon by both parties. The DA-146a may not be modified or amended (see RFP Section 5, “CONTRACTUAL PROVISIONS ATTACHMENT”).


5.24 Assignment. The Contractor shall not assign, convey, encumber, or otherwise transfer its rights or duties under this contract without the prior written consent of the State. The State may terminate this Contract in the event of a merger, dissolution, or sale of the controlling interest in the


Contractor; sale of a substantial portion of the assets of the Contractor; or any action on the part of the Contractor to affect the assignment, conveyance, encumbrance, or other transfer of this Contract by the Contractor without the express prior written consent of the State.

This contract may terminate in the event of its assignment, conveyance, encumbrance, or other transfer by the Contractor without the prior written consent of the State.


5.25 Third Party Beneficiaries. This contract shall not be construed as providing an enforceable right to any third party.


5.26 Captions. The captions or headings in this contract are for reference only and do not define, describe, extend, or limit the scope or intent of this contract.


5.27 Severability. If any provision of this contract is determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this contract shall not be affected and each provision of this contract shall be enforced to the fullest extent permitted by law.


5.28 Governing Law. This contract shall be governed by and construed in accordance with the procedural and substantive laws of the State of Kansas.


5.29 Jurisdiction: The parties shall bring any and all legal proceedings arising under this Contract in the State of Kansas, District Court of Shawnee County. The United States District Court for the State of Kansas sitting in Topeka, Shawnee County, Kansas, shall be the venue for any federal action or proceeding arising hereunder in which the State is a party. The Eleventh Amendment of the United States Constitution is an inherent and incumbent protection with the State and need not be reserved, but prudence requires the State to reiterate that nothing related to this Contract shall be deemed a waiver of the Eleventh Amendment. Contractor shall be responsible for all the State’s reasonable attorney’s fees, costs, and expenses related to Contractor’s negligence or breach of Contractor’s obligations under the Contract. Contractor waives all defenses of lack of personal jurisdiction and forum non conveniens. Process may be served on Contractor in the manner authorized by applicable law or court rule.



5.30 Integration. This contract, in its final composite form, shall represent the entire agreement between the parties and shall supersede all prior negotiations, representations, or agreements, either written or oral, between the parties relating to the subject matter hereof. This contract between the parties shall be independent of and have no effect on any other contracts of either party.


5.31 Criminal or Civil Offense. Any conviction for a criminal or civil offense of an individual or entity that controls a company or organization or will perform work under this contract that indicates a lack of business integrity or business honesty must be disclosed. This includes (1) conviction of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract or in the performance of such contract or subcontract; (2) conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification, or destruction of records; (3) receiving stolen property; (4) conviction under state or federal antitrust statutes; and (5) any other offense to be so serious and compelling as to affect responsibility as a state contractor. For the purpose of this section, an individual or entity shall be presumed to have control of a company or organization if the individual or entity directly or indirectly, or acting in concert with one or more individuals or entities, owns or controls 25 percent or more of its equity, or otherwise controls its management or policies. Failure to disclose an offense may result in disqualification of the bid or termination of the contract.


5.32 Injunctions. Should Kansas be prevented or enjoined from proceeding with their Contract before or after contract execution by reason of any litigation or other reason beyond the control of the State, Contractor shall not be entitled to make or assert claim for damage by reason of said delay.


5.33 Statutes. Each and every provision of law and clause required by law to be inserted in the contract shall be deemed to be inserted herein and the contract shall be read and enforced as though it were included herein. If through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then on the application of either party the contract shall be amended to make such insertion or correction.



5.34 Materials and Workmanship. The Contractor shall perform all work and furnish all supplies and materials, machinery, equipment, facilities, and means necessary to complete all work required by this solicitation, within the time specified, in accordance with the provisions as specified.

The contractor shall be responsible for all work put in under these specifications and shall make good, repair, and/or replace, at the Contractor's own expense, as may be necessary, any defec-tive work, material, etc., if, in the opinion of agency and/or Procurement and Contracts said issue is due to imperfection in material, design, workmanship, or contractor fault.


5.35 Industry Standards. If not otherwise provided, materials or work called for in this contract shall be furnished and performed in accordance with best established practice and standards recognized by the contracted industry and comply with all codes and regulations which shall apply.


5.36 Federal, State, and Local Taxes. Unless otherwise specified, the proposal price shall include all applicable federal, State, and local taxes. The Contractor shall pay all taxes lawfully imposed on it with respect to any product or service delivered in accordance with this Request. The State of Kansas is exempt from state sales or use taxes and federal excise taxes for direct purchases. These taxes shall not be included in the Proposer’s price quotation.

The State makes no representation as to the exemption from liability of any tax imposed by any governmental entity on the Contractor.


5.37 Accounts Receivable Set-Off Program. During the course of this contract, if the Contractor is found to owe a debt to the State of Kansas, agency payments to the Contractor may be intercepted / setoff by the State of Kansas. Notice of the setoff action will be provided to the Contractor. The Contractor shall credit the account of the agency making the payment in an amount equal to the funds intercepted.

K.S.A. 75-6201 et seq. allows the Director of Accounts and Reports in the Department of Admin-istration setoff funds the State of Kansas owes Contractors against debts owed by the Contrac-tors to the State of Kansas. Payments setoff in this manner constitutes lawful payment for ser-vices or goods received. The Contractor benefits fully from the payment because its obligation to the State is reduced by the amount subject to setoff.



5.38 Fixed Costs Final and Full.

A. All reasonable and necessary equipment, labor, software, and services to make this K-CRAFTS Project timely operational shall be included in the proposal and included in the fixed costs. The Contractor is responsible for all additional costs not included in the pro-posal and required to satisfactorily complete the scope of services requested and the State’s requirements.

B. This Request is for a firm fixed price contract with payment(s) made only for defined and accepted deliverables. A list of deliverables required includes:

Detailed Project Plan

Gap Analysis and Customization Plan

Requirements Traceability Matrix

System Interface Plan

Capacity and Performance Plan

Master Test Plan

Data Conversion Plan and Data Migration Completed

Module Delivery (IRP, IFTA, Audit, Liquor Licensing and Enforcement, Gallonage Tax, Cigarette and Tobacco Enforcement, Liquor Drink Tax, Liquor Enforcement Tax, Drug Tax, Case Management, Docketing, Revenue Accounting and Distribution)

Data Warehouse Delivery

E-Commerce Testing and Acceptance

Security and Continuity of Operations Plan

Training Plan

Setup of Help Desk

Business Reorganization Plan

Estimated costs for implementing additional tax types at a later date. (Consider the cost with State developers and cost by the Software Provider.)

A minimum 10-day review and testing before sign-off acceptance for each deliverable.

C. Prices shall remain firm for the entire contract period and subsequent renewals. Prices quoted shall be net delivered, including all trade, quantity, and cash discounts.

D. Any price reductions available during the contract period shall be offered to the State of Kansas.

E. Failure to provide available price reductions may result in termination of the contract.

F. The State will not award or contract for any arrangement that uses estimates, “time and materials,” or payments based on “progress” or elapsed time.

G. The exact payment per deliverable will be determined during negotiations.



5.39 Definite Quantity Contract. This Request is for a close-ended contract between the Proposer and the State to furnish a predetermined quantity of a good or service in a given period of time.


5.40 HIPAA Confidentiality. Per the Health Insurance Portability and Accountability Act (1996) (HIPAA), the agency is a covered entity under the act and therefore Contractor is not permitted to use or disclose health information in ways that the agency could not. This protection continues as long as the data is in the hands of the Contractor.

The Contractor shall establish and maintain procedures and controls acceptable to the agency to protect the privacy of members’ information. Unless the Contractor has the member’s written consent, the Contractor shall not use any personally identifiable information obtained for any rea-son other than that mandated by this agreement.


5.41 No Off-shore Sourcing. The Contractor, including all subcontractors, agrees that any and all work or services under this contract will be performed at a location within the United States or Canada. Therefore, the Contractor, including all subcontractors, agrees that no off-shore sourcing will be conducted.


5.42 Immigration and Reform Control Act of 1986 (IRCA). All Contractors are expected to comply with the Immigration and Reform Control Act of 1986 (IRCA), as may be amended from time to time. This Act, with certain limitations, requires the verification of the employment status of all individuals who were hired on or after November 6, 1986, by the Contractor as well as any subcontractor or sub-contractors. The usual method of verification is through the Employment Verifi- cation (I-9) form.

With the submission of this proposal, the Contractor must certify without exception that such Con-tractor has complied with all federal and state laws relating to immigration and reform. Any mis-representation in this regard or any employment of persons not authorized to work in the United States constitutes a material breach and, at the State's option, may subject the contract to termi-nation for cause and any applicable damages.

Unless provided otherwise herein, all Contractors are expected to be able to produce for the State any documentation or other such evidence to verify Contractor's IRCA compliance with any provision, duty, certification, or like item under the contract.

Contractor will provide a copy of a signed Certification Regarding Immigration Reform and Con-trol Form (see RFP Section 6) with the signed contract.



5.43 Implied Requirements. All products and services not specifically mentioned in this solicitation, but which are necessary to provide the functional capabilities described by the specifications, shall be included. Furthermore, all products and services required to make the vendor’s proposal functional shall be identified in the vendor's proposal. If additional products or services are later found to be necessary to make the vendor’s proposal functional, or to make the vendor’s proposal compliant with the specifications, regardless of whether the additional needed products or services are identified as being necessary by the State or the vendor, such products or services shall be provided by the vendor at no charge to the State.


5.44 Ownership. All data, forms, procedures, software, manuals, system descriptions, and work flows developed or accumulated by the Contractor under this contract shall be owned by the using agency. The Contractor may not release any materials without the written approval of KDOR.


5.45 Data. Any and all data required to be provided at any time during the procurement process or contract term shall be made available in a format as requested and/or approved by the State.


5.46 Vendor Contracts. Include a copy of any contracts, agreements, licenses, warranties, etc. proposed. State of Kansas form DA-146a remains a mandatory requirement in all contracts.


5.47 Software Code and Intellectual Property Rights.

Proprietary Rights and Ownership. Contractor agrees that all computer Software which the Contractor, its employees and agents develops under this Contract (the "Custom Soft-ware"), all intermediate and partial versions thereof, all copyrightable and patentable aspects of the Custom Software, Work Product, and Trade Secrets, as well as all copies of all such works in whatever medium fixed or embodied as well as all Deliverables resulting from Con-tractor’s performance of Services, program materials, flow charts, notes, outlines, and the like created in connection therewith (collectively, "Work Product"), and any formulae, processes, algorithms, ideas, and other information not generally known to the public (whether or not protected or protectable by copyright) and developed or generated by the Contractor, its em-ployees, and agents in the course of developing the Software ("Trade Secrets"), automatical-


ly, at moment of creation, shall be the sole property of the State upon their creation of (in the case of copyrightable works) fixation in a tangible medium of expression. Contractor hereby expressly disclaims any interest in any of them; and the Custom Software, Work Product, and Trade Secrets will be or contain valuable and proprietary information of State, and Contractor agrees not to disclose the same to any third party without the prior written permission of the State, or to use any such items to create any other computer programs or derivative works ei-ther for its own use or otherwise.

1. The State shall have title to any inventions which are made during the course of the Work Product under this Contract as well as any patents thereon in all countries. The Contrac-tor agrees to make and execute written contracts with all of its officers, employees, and pro-grammers who participate in any work performed or Work Product created for the State in the form of an "Employee Invention Agreement" indicating the above ownership vests with the State upon creation, which is attached hereto and made a part of this agreement as Exhibit ____, and to submit a duplicate original of all such agreements to the State prior to the ren-dering of any services by any programmer under this agreement.

2. Unless otherwise provided, data which originates from this Contract shall be work product or “works for hire” as defined by the U.S. Copyright Act of 1994 and shall be owned by the State. Data shall include, but not be limited to, reports, documents, pamphlets, adver-tisements, books, magazines, surveys, studies, custom computer programs, films, tapes, and/or sound reproductions. Ownership includes the right to copyright, patent, register, and the ability to transfer these rights. Contractor shall not use or in any manner disseminate such work product or “works for hire” to any third party without the prior written permission of the State. Contractor shall take all steps necessary to ensure its agents, employees, or sub-contractors shall not copy or duplicate any programs or Work Products or any portion thereof, in any form, or make any disclosure with reference thereto to any third party.

3. Contractor and any individual employee or agent involved in this Contract shall promptly disclose to the State the products of their work hereunder, and those products will be deemed to be a work product or "works made for hire," and the State shall be considered to be the person for whom the work was prepared under the copyright laws of the United States.

4. Additionally, at time of creation or delivery as appropriate, Contractor shall convey to the State good title to any Equipment, Custom Software (State customization files, source, and object code), and licenses for the Pre-Existing Software, free and clear of all liens, pledges, mortgages, encumbrances, or other security interests.

5. The Work Product or “Works for Hire” ownership provisions of any subcontract or any Task Order or Change Order issued under this Contract shall be identical to the provisions of this Article.

b. Assignment. Contractor hereby assigns to the State, without further consideration, all of its right, title, and interest in and to all of the Custom Software, Work Product “Works for Hire,” and Trade Secrets developed by the Contractor, its employees, and agents for the State dur-ing the term of this Contract, and all copies of any of them, including, without limitation, all copyright and other proprietary rights thereto throughout the world (and all renewal and ex-tensions thereof) and including as part of such assignment, the right to create and distribute derivative works from any of the Custom Software, Work Product “Works for Hire,” or Trade Secrets. The Contractor hereby agrees to transfer to the State the entire right, title, and in-terest to any copyrights and any work or work product which may not be deemed "works for hire" under the copyright laws or work product, but which is produced by the Contractor in ac-cordance with the terms of this Contract. The Contractor further agrees to execute any doc-uments which may be necessary or appropriate to allow the State to perfect its interest in the copyright for such Work Product. The Contractor shall not be entitled to any additional pay-ment or compensation for assisting and cooperating with the State in obtaining these copy-rights.

c. Cooperation. Contractor will at all times during its service hereunder for the State and after


termination thereof for any reason, assist the State in every proper way (at Contractor's ex-pense) to obtain for the benefit of the State patents, copyrights, trade secrets, and other legal protection for the Custom Software, Work Product, and Trade Secrets it develops for the State. To that end, Contractor agrees (i) to assist the State in registering, and from time to time (at Contractor's expense) in enforcing, all patent, copyrights, and other rights and protec-tions relating to the Custom Software, Work Product, and Trade Secrets in any and all coun-tries; and (ii) to execute, acknowledge, and deliver, when so requested by the State or its at-torneys, all papers, including applications for patents or copyrights, assignments, and affida-vits, as they are needed in order to obtain, maintain, or renew such patents or copyrights, Trade Secrets, or other legal protection, or to vest title thereto in the State. Further, Contrac-tor irrevocably designates and appoints the State its agent and attorney-in-fact to act for and on its behalf to execute, register, *and file any such applications, and to do all lawfully permit-ted acts to further the registration, prosecution, and issuance of patents, copyrights, or similar protections with the same legal force and effect as if executed by Contractor.

d. Injunctive Relief. Contractor acknowledges that the State may not have an adequate reme-dy at law in the event of any breach or threatened breach by it of any provision of this Article, and that the State will suffer irreparable damage and injury as a result. Accordingly, in the event of any such breach or threatened breach, Contractor hereby consents to the granting of injunctive relief against it by any court of competent jurisdiction without the posting by the State of any bond or other security therefor, and Contractor further agrees not to raise as a defense the availability of monetary damages as a remedy.

e. License. In the event (and to the extent) that the Custom Software, Work Product, “Works for Hire,” and Trade Secrets contain any items or elements which may be proprietary to Con-tractor, Contractor hereby grants to the State an irrevocable, perpetual, nonexclusive, royalty-free, world-wide license to (i) use, execute, reproduce, display, perform, distribute copies of, and prepare derivative works based on such proprietary items; and (ii) authorize others to do any or all of the foregoing.


5.48 Licenses. Contractor grants the State and its departments, agencies, affiliates, agents, employees, and licensees a perpetual, non-exclusive, royalty-free, world-wide, irrevocable license to use the licensed Software, without any restriction of any kind on Servers operated by the State at State Sites. The State may use any third party software products or modules obtained from any source with the Software. Contractor also grants the State of Kansas, and its departments, agencies, affiliates, agents, employees, and licensees (hereafter collectively referenced as the “State”) a perpetual, non-exclusive, royalty-free, world-wide, irrevocable perpetual license to use and copy for any reason (including but not limited to compliance with the Kansas Open Records Act) Contractor’s proposal and any other document(s) submitted to the State that may be related to this Contract or relevant information requested by the State. See Exhibit _____, Software License Agreement, incorporated by reference herein. The persons initialing this provision warrant that they have the authority to grant and execute this License for Contractor. This license is effective on the date of submission to the State.


5.49 Acceptance. No contract provision or use of items by the State shall constitute acceptance or relieve the Contractor of liability in respect to any expressed or implied warranties. All expressed


and implied warranties not otherwise contained herein shall not be waived.


5.50 Payment Retainage. An amount representing 20 percent of the maximum total compensation payable under this Contract shall be withheld by the State until 90 days after the final State approval of all services to be performed by the Contractor under this Contract (excluding maintenance services) and formal acceptance by the State of the new K-CRAFTS system. Compensa- tion is not deemed to have been earned until all conditions precedent to payment have been met.


5.51 Equipment. All proposed equipment, equipment options, and hardware expansions must be identified by manufacturer and model number and descriptive literature of such equipment must be submitted with the proposal.


5.52 Transition Assistance. In the event of contract termination or expiration, Contractor shall provide all reasonable and necessary assistance to the State to allow for a functional transition to another Contractor. Contractor shall be responsible for all associated costs and expenses for such transfer.


5.53 Award. Award will be by line item or group total, whichever is in the best interest of the State of Kansas.


5.54 Certification of Materials Submitted. The response to this request, together with the specifications set forth herein, and all data submitted by the Proposer to support the response including brochures, manuals, and descriptions covering the operating characteristics of the item(s) proposed, shall become a part of any contract between the successful Proposer and the State of Kansas. Any written representation covering such matters as reliability of the item(s), the experience of other users, or warranties of performance shall be incorporated by reference into the contract.



5.55 Inspection. The State reserves the right to reject, on arrival at destination, any items which do not conform to the specifications of this Request.


5.56 Background Checks and Investigations of Staff. The State may, at its sole discretion, conduct background checks and investigations of Contractor’s staff. Contractor and Staff consent and agree to supply such personal information, including a full set of finger prints able to be processed and any additional information as may be required by the K-CRAFTS Project Manager and the Kansas Bureau of Investigation to perform background checks and investigations. Con- tractor is responsible for getting staff consent prior to starting work on this contract.


5.57 Recruiting of State Staff. Neither the Contractor nor any of its Subcontractors shall directly re- cruit any State staff for employment or subcontracting opportunities for the duration of the contract. Further, neither the Contractor nor any of its Subcontractors shall contact, hire, contract, or subcontract with any State employee who worked on the K-CRAFTS Project in any way for a per- riod of two years after any employee’s termination of employment with the State without the writ ten consent of the Secretary of Revenue or the Secretary’s designee.


5.58 Deliverable Performance. Contractor warrants that it will timely perform all deliverables by the established deadlines.


5.59 Warranty. Contractor agrees to a “standard” warranty of one year from date of final acceptance. This warranty to the State shall be also included in the cost of the contract and Contractor warrants the following:

A. The Contractor (including any subcontractors) will be the sole point of contact on any problems with all software, equipment, or systems during the warranty period.

B. The Contractor shall be responsible for all work performed under these specifications. The Contractor shall make good, repair and replace, at the Contractor's own expense, as may be necessary, any defective work, if in the opinion of agency and/or Procurement


and Contracts said defect is due to imperfection in material, design, or workmanship for the warranty period specified.

C. Contractor represents and warrants to the State as follows, and Contractor acknowledges that all of such representations and warranties in its responses to the RFP (including the representations that Contractor meets the minimum qualifications contained in the RFP) are material and have been relied upon by the State in: (i) selecting Contractor to per-form the services described in the RFP and this Contract; and (ii) entering into this Con-tract. Contractor agrees and warrants the following:

1. Corporate Existence and Authority. Contractor is a corporation existing and in good standing under the laws of the State of ____________, is qualified to do business in the State of Kansas, is properly registered with the Kansas Secretary of State, and has all necessary power and authority to enter into this Contract and to perform all of its obligations pursuant to this Contract. Contractor shall provide prompt notice to the State of any merger or combination with any other entity during the term of this Contract. In the event that a merger, dissolution, or sale of a substantial portion of the assets of the Contractor is contemplated, the provisions of Section 4.25 shall apply.

2. No Conflict. Neither the execution and delivery of this Contract, nor the fulfill-ment of or compliance with the terms and conditions of this Contract, nor the consummation of the transactions contemplated by this Contract conflicts with or results in a breach of the terms, conditions, or provisions of any other contract, agreement, instrument, or order of any court, governmental body, or administra-tive agency to which Contractor is a party or by which Contractor or its property is bound.

3. Duly Authorized. The execution and delivery of this Contract has been duly au-thorized by all necessary corporate action of Contractor and constitutes the valid, legal, and binding obligation of Contractor, enforceable in accordance with its terms.

4. Proprietary Information and Licenses. Contractor shall disclose to the State upon request all relevant proprietary information related to the Project. Contrac-tor warrants: 1) That this proposal is an original work and has not been submit-ted for publication or published in any other medium; 2) That this proposal will not violate any rights of third parties; 3) That this proposal does not contain any libel-ous material; and 4) That all information contained within this proposal that the Contractor deems proprietary or represents trade secrets has been properly marked and submitted in accordance with RFP Section 2.7. Contractor agrees to waive any legal remedy Contractor may have against State and to indemnify and hold the State harmless from any claim, demand, suit, action, proceeding, or prosecution (including liability, loss, expense, attorney’s fees, or any damage) asserted or instituted by reason of the submitted proposal or other information provided to the State by Contractor. The State shall have the right in its discre-tion to extend the benefit of this indemnification to any person or entity at any time, and Contractor shall be liable as if originally made by the State.

5. All Statements True. All statements and representations made to the State by Contractor in the Proposal, during the selection process (including oral inter-views), during the negotiation of this Contract, and in the performance of this Contract are true and correct as of the date of this Contract.


D. Contractor warrants that any deliverables provided pursuant to the applicable Statement of Work will perform substantially in accordance with the specifications set out in the Statement of Work. Contractor's obligation hereunder will be to promptly:

(i) Bring such deliverables into substantial compliance with the specifica-tions, at Contractor's sole expense; or

(ii) Grant the State a full refund of all the amounts paid by the State relating to any such non-conforming deliverables.

1. If Contractor receives written notice of such defects during the warranty period, Contractor shall immediately repair, fix, or make workable, that portion of its work products which are determined by the State to be defective.

2. The warranty period begins on the date of Final Acceptance. "Final Acceptance" shall mean the date the State has accepted all Deliverables and Services re-quired by this Contract, in the manner described in RFP Section 5.71). In addi-tion, if a Deliverable has been completed by the Contractor and accepted by the State in advance of the Final Acceptance date, Contractor shall be responsible for conforming with these warranty requirements, as they relate to the Delivera-ble, beginning upon Deliverable acceptance, through to the Final Acceptance date, and the following one year Warranty period.

3. Warranty repairs will be made at no cost to the State. Contractor will pay all cost of consulting services related to such repairs and all cost of travel, lodging, and related out-of-pocket costs for visits to the State sites which are necessary to af-fect such repairs.

4. Response Time. Contractor warrants that its timely response to requests for warranty or other services under this Agreement and thereafter and shall remedy any programming errors, defects, or breach of warranty promptly at no charge or cost to the State. In the event that the System is inoperable, Contractor shall immediately apply such resources as are necessary to correct any problems. Contractor shall respond to requests for service and any warranty immediately and no later than one hour and correct any such problems. Contractor agrees that its failure to respond to State’s request for service within the timeframes identified herein will result in the Contractor being financially liable and responsi-ble for all costs and expenses the State incurs for finding a third party to solve or fix any problems with the work under this Agreement.

E. Keys, Time Locks, Access, Source Code, and Electronic Software Disablement and Repossession Warranty. Contractor represents and warrants that it will not under any circumstances or conditions install various disabling devices, access codes, traps, copy-protection devices, keys, time or date bugs, lock-up or deactivating devices, time bombs, termination by remote access, removal of source code, or other programs or code in the software or work product which could erase, corrupt, restrict use of, modify any data of the State, freeze, interfere with, or prevent the State’s use of the software or its compu-ting environment, destroy or terminate software or work product or data contained in it, or bypass any internal or external software security measure in order to obtain access to the systems or data of the State without the written consent of the State. Contractor also warrants that no other similar types of electronic techniques will be used at anytime in the future. Should any such device appear at any time in the system, software, or work product, Contractor agrees to pay for any and all damages, expenses, costs, and lost revenue, including reasonable attorney’s fees incurred by the State. Contractor shall also agree to pay punitive damages for installing any such disabling device as determined by a Kansas State Court.



5.60 Performance Guarantees. The following are areas where Contractor guarantees performance. Failure to meet the required performance standards or guarantees will result in the Contractor being assessed and responsible for performance guarantee amounts as listed in this Section.

Contractor shall be responsible for self-reporting performance failures or errors and timely submit-ting liquidated damages amounts due to the State. Contractor shall establish and maintain a sys-tem to monitor and report performance. Contractor will submit a measurement report to the State ten business days after the end of each calendar month unless otherwise waived by the State. The measurement report will include all data reasonably necessary to evaluate whether liquidated damages are due and shall be in a format determined by the State. The measuring period for the purpose of considering and calculating performance guarantees shall be on a monthly basis, un-less otherwise indicated. Contractor shall work with State in good faith to provide additional in-formation reasonably requested by State for evaluation of liquidated damages. The State shall, at its sole discretion, waive any liquidated damages otherwise payable by the Contractor under this section if the Contractor can demonstrate to the State’s satisfaction that a performance standard failure was attributable to an uncontrollable circumstance (i.e., an external event not reasonably within Contractor’s ability to control). The parties intend the liquidated damages amounts stated in this Article to compensate, and not punish for, a breach of the conditions indi-cated below:

A. Reassignment of key personnel without the State’s timely written approval. Contractor agrees and shall pay the State $10,000 per occurrence for failure to timely get written approval of reassignment of key personnel.

B. Failure to timely and diligently respond in a case of a disaster assistance request. Con-tractor agrees and shall pay all damages, costs, and expenses associated with this type of event for failure to timely respond.

C. Failure of Contractor to timely and successfully provide the KITO an approved, detailed project plan. Contractor agrees and shall pay the State $100,000 for this failure.

D. Responses to Legislative Requests are regularly due within two business days. Contrac-tor agrees and shall pay $2,000 to the State per occurrence for failure to timely meet the stated deadline for Legislative Requests.

Prompt resolution of problems or issues is expected but will not reduce or eliminate any perfor-mance guarantee amounts imposed due to failure to meet the standards outlined below. Perfor-mance guarantees shall be automatically assessed unless otherwise waived in writing by the State. If Contractor fails to meet the proposed standards, the performance guarantee described herein will be one remedy available to the State for such failure, along with all other remedies at law and in equity. Contractor has 30 calendar days to dispute in writing any amounts due. How-ever, all performance guarantees are due within 60 calendar days after assessment regardless of the status of any disputed amount. Otherwise, Contractor shall pay an additional amount of $5000 per day payment if not received by the State when due unless otherwise setoff by the State. The State has final authority to determine whether a disputed assessment of performance guarantee will be credited to Contractor. The State will respond to any dispute within 30 days of receipt. The Contractor shall also pay the State’s reasonable attorney’s fees, costs, and expens-es incurred should any matter be contested by Contractor, including but not limited to court and mediation fees and costs. In the event the State agrees with any dispute, the assessment and collection of any disputed amount will be refunded to Contractor.



5.61 Indemnity and Hold Harmless.

A. General. Contractor shall indemnify, defend, and hold harmless the State and its de-partments, agencies, and affiliates, including its officers, directors, agents, and employ-ees, from and against all claims, demands, liability, actions, losses, and expenses (in-cluding reasonable attorneys' fees) and all other liabilities, asserted against or incurred by State without limitation relating to or arising out of, directly or indirectly, a failure to per-form or breach by Contractor of this Contract, including a breach by Contractor of its obli-gations under this Section 4 and for bodily injury or death of any person or damage or destruction of any property, whether belonging to the State or another, excepting only in-jury, death, damage, or destruction, to the extent it is caused by the negligence of the State. The State shall give reasonable notice to Contractor of any such claim, loss, ac-tion, damage, expense, or other liability. Contractor shall further protect, defend, indem-nify, and hold harmless the State against any damage, cost or liability, including reason-able attorney’s fees, by third parties for any and all injuries to persons or damage to property arising from intentional, willful, or negligent acts or omissions of Contractor, its officers, employees, agents, or subcontractors, a criminal, fraudulent, or dishonest act by Contractor, its officers, employees, agents, or subcontractors.

The State shall not be precluded from receiving the benefits of any insurance the Con-tractor may carry which provides for indemnification for any loss or damage to property in the Contractor’s custody and control, where such loss or destruction is to State property. The Contractor shall do nothing to prejudice the State’s right to recover against third par-ties for any loss, destruction, or damage to State property.

B. Intellectual Property Indemnification and Hold Harmless. Contractor represents and warrants that any Developed Software produced hereunder does not violate any patent, copyright, trade secret, trademark, or other proprietary right of any third party, and that Contractor has the right to make disclosure and use of all such information used by Con-tractor in the performance of the Services. If Contractor uses any patented, trademarked, or copyrighted designs, devices, materials, or other property, tangible or intangible, in connection with its performance of its obligations under this Contract, it shall provide for such use in an approved legal manner by making a proper agreement with the patentee or owner of such trademark or copyright and shall defend and hold State harmless on any claim relating to such items or use by the Contractor or State. Specifically, if any claim of infringement is made by any third party against the State, exclusively due to the State's use of any Work Product provided by Contractor hereunder, the State shall notify Contractor and Contractor shall defend, indemnify, and hold the State harmless against any and all liability, losses, claims, expenses (including reasonable attorney's fees), de-mand, or damages of any kind arising out of or related to any such claim, whether or not that claim is successful. If the State is enjoined, or likely to be enjoined as determined solely by the State, from using any of the Work Product because of a claim of infringe-ment of proprietary rights of any third party, at the State’s request and option, the Con-tractor at its own expense shall:

(i) Obtain for the State the right to continue using such Work Product;

(ii) Replace or modify the Work Product to make it non-infringing, so long as the re-placement or modification conforms to the Statement of Work and does not ad-versely impact functionality or performance of the Work Product running in the State's production environment; or

(iii) Terminate this Contract and refund all payments made by the State herein.


C. Contractor’s Negligence. The Contractor shall also hold harmless and indemnify the State against any and all loss or damage to the extent arising out of the Contractor’s neg-ligence in the performance of services under this contract, and also including but not lim-ited to:

(i) Any and all civil or criminal loss or damage to the extent arising out of the Con-tractor's intentional or unintentional failure to comply with Federal Immigration Statutes and Regulations.

(ii) Any and all loss or damage to the extent arising out of the Contractor’s intention-al or unintentional failure to protect and secure personal data of any kind. The State shall in its sole discretion make the determination of this provision.

D. Survive Termination. The provisions of this Article survive termination of this Agree-ment.


5.62 Insurance. No contract will be executed unless and until appropriate insurance coverage is secured and sufficient evidence of insurance coverage is delivered to the State. Any insurance required by the State shall be in a form and substance acceptable to the State.

All required insurance shall be issued by companies that are A.M. Best A+ financially rated and duly licensed, admitted, and authorized to do business in the State of Kansas. The State of Kan-sas will be named as an additional insured on all coverage’s, as appropriate. Required cover-age’s are to remain in effect throughout the term of the resulting contract and proof shall be pro-vided to State within 48 hours of a request. Failure to maintain required insurance coverage dur-ing the term of the contract shall be considered a material breach and grounds for termination of the contract. The cost of all required insurance shall be included in the Proposer’s proposal. The State may purchase the required coverage for Contractor should Contractor fail to maintain the required coverage and setoff that cost and expense against amount the State may or does owe Contractor for services under this contract.

Insurance provisions shall be at least as follows:

A. Workers’ Compensation and Employers’ Liability coverage with limits consistent with Kansas statutory benefits, and, if some of the project will be done outside Kansas, the laws of the appropriate state(s) where work on the project will be done. Employers’ Lia-bility coverage with policy limits of at least $500,000 or the statutory limit, whichever is greater.

B. Commercial General Liability with a combined single limit of at least $5,000,000 per oc-currence written on an occurrence basis. All limits shall be in addition to defense costs.

C. Business Automobile Liability Insurance for all owned, non-owned, and hired vehicles with a minimum combined single limit of at least $1,000,000 per occurrence for bodily in-jury, personal injury, and/or property damage liability.

D. Professional Liability insurance covering all staff with a limit of at least $1,000,000 per in-cident and $3,000,000 aggregate.

Subcontractors: Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates for each subcontractor. All coverage’s for subcontractors shall be subject to all of the requirements stated herein.

The Proposer accepts full responsibility for payment of all insurance listed above, including but not limited to unemployment insurance and social security as well as all income tax deductions


and any other taxes or payroll deductions required by law for its employees engaged in work au-thorized by this contract.


5.63 Contractor’s Preexisting Obligations. Contractor represents and warrants that Contractor, its employees and agents, are under no preexisting obligation or obligations inconsistent with the provisions of this agreement. Contractor warrants that it has the right to disclose or use all ideas, processes, designs, data, and other information which Contractor had gained from third parties, and which Contractor discloses or uses in the performance of this agreement.


5.64 Financial Interests. Contractor shall promptly disclose in writing to the State all actual or potential financial relationships Contractor may have with respect to, or resulting from, any recommendations or advice given by Contractor to the State.


5.65 Notice of Litigation. In the event of litigation involving this Contract or any matter performed or produced or related to this Contract (hereafter referred to as “Litigation”), the Contractor agrees to the following:

a. The Contractor will promptly notify the State after learning of any Litigation.

b. The Contractor will cooperate fully by providing the State with all non-confidential rel-evant information and documents within its control as requested.

c. The Contractor will reasonably assist the State in the defense of any Litigation.

d. The Contractor will be responsible for all the litigation-related fees, costs, and ex-penses, including attorney’s fees, of the Contractor, State of Kansas, Department of Revenue, K-CRAFTS Project, and any State Departments, Agencies, Boards of Trus-tees, Affiliates, Officers, Directors, Agents, and Employees when the litigation is re-lated to the Contract. For purposes of this paragraph, “litigation” includes litigation re-lating to matters involving this contract. The State reserves the right to select and re-tain counsel.

e. Pending any decision, appeal, or judgment of litigation or the Settlement of any litiga-tion or other dispute between the parties, Contractor shall proceed diligently and shall not discontinue performance of the Contract.

f. Contractor shall be liable and responsible for its negligent and intentional acts or omissions and the negligent and intentional acts or omissions of its employees, offic-ers, directors, or other relative entities.

g. In the event the State or any of its staff is the sole, named defendant in Litigation, such party shall have discretion to defend, settle, compromise, or otherwise resolve


such Litigation. Contractor shall be liable for the State’s costs, expenses, and attor-ney’s fees.

h. In the event the Contractor or any of its staff is the sole, named defendant in any Liti-gation related to this Contract, the Contractor shall keep the State informed of the status of the Litigation and any decision to settle, compromise, or otherwise resolve the Litigation. However, any settlement, compromise, or other resolution must be approved in writing by the State.

i. In the event the State and Contractor are codefendants in any Litigation, the parties will cooperate fully with each other to defend, settle, compromise, or otherwise re-solve such Litigation consistent with the terms of this Contract.

j. In the event any entity other than the State or Contractor is named as a defendant in Litigation related to this contract, the State can elect to defend, settle, compromise, or otherwise resolve such Litigation with respect to those other entities. Contractor shall be liable for the State’s costs, expenses, and attorney’s fees.

k. Contractor shall timely notify the State of any suit or investigation by a public entity involving similar services under a contract with another State.


5.66 Payment. Payment Terms are Net 30 days. Payment date and receipt of order date shall be based upon K.S.A. 75-6403(b). This Statute requires state agencies to pay the full amount due for goods or services on or before the 30th calendar day after the date the agency receives such goods or services or the bill for the goods and services, whichever is later, unless other provisions for payment are agreed to in writing by the Contractor and the state agency. NOTE: If the 30th calendar day noted above falls on a Saturday, Sunday, or legal holiday, the following work day will become the required payment date. In the event there is a dispute regarding performance of service or deliverables the State may offset it against any amounts owed to Contractor.

Payments shall not be made for costs or items not listed in the Contractor's proposal, response, or bid. Payment by State may be withheld in any reasonable amount to ensure proper perfor-mance.

Payment schedule shall be on a frequency mutually agreed upon by both the agency and the Contractor and must be in accordance with Cost Tab 3, Schedule 3 – Deliverables Payment (see RFP Section 4.9) from the Final Contract. If portions of this definition are deemed to be incon-sistent with Section 5.50 (Payment Retainage) and Section 5.71 (Acceptance of Deliverables and Services – The Quality Assurance Review Process, those definitions and methods of payment shall control.


5.67 Viruses. The Contractor shall take all precautions that are reasonable, customary, and comer- cially practical to avoid providing the State with any software that contains or introduces a virus which contaminates or damages the State's equipment or its mainframe, network, personal computing, or other operating environments’ hardware including the hardware or software of any third party authorized to be connected to the State's computing environments.



5.68 Independent Project Assistance. The State may elect to retain one or more third parties to provide independent technology, procedure, project management, quality assurance monitoring, and/or other management assistance in the contract negotiations and implementation process resulting from this RFP. The objective of this external assistance is to provide an independent assessment of project progress and problems, provide management assistance as determined by the State, and proactively recommend strategies and actions to avoid or mitigate project risks. The Contractor shall work cooperatively with any such third party; share all Contractor project management and implementation-related plans, working papers, and documentation associated with the project; and maintain a candid and open communication forum with the third party as well as the State.


5.69 Project Management Methodology. The State of Kansas has adopted a uniform Project Man- agement Methodology for all Information Technology (IT) projects valued at $250,000 or more. The methodology can be found at http://www.oits.ks.gov/KITO/default.htm under “IT Project Management.” Kansas has enacted comprehensive statutes (K.S.A. 75-7203 et. seq.) dealing with the architecture, management, and oversight of IT activities statewide. The Information Technology Executive Council (ITEC), implementing their oversight responsibilities under those statutes, has adopted ITEC Policy 2500, which can be found at http://www.oits.ks.gov/kito/itec/default.htm . That policy sets forth project reporting requirements.

The Contractor shall deliver to the agency all information regarding contractor performance nec-essary for the agency to meet its project reporting obligations under ITEC policies. Such infor-mation may include, but shall not be limited to:

A. Work Breakdown Structure:

(i) With summary level tasks; and

(ii) With individual tasks at less than or equal to 80 hours apiece.

B. Estimated cost to completion data;

C. Gantt charts:

(i) With critical path identification;

(ii) With identifying milestones;

(iii) Showing progress to date;

(iv) With identified start and finish dates for all tasks; and

(v) Correlated one-to-one with the Work Breakdown Structure.

When requested by the State, the project reporting information shall be provided in compatible electronic form, as well as printed output. The State uses Microsoft Project 2007 as its primary project management software package.

Larger or more complex projects, or projects encountering difficulties, may require additional data reports, or an increased reporting frequency. Such additional requirements shall be maintained and supported by the Contractor, if required by the agency to meet the requirements of the Kan-

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sas Information Technology Office (KITO) or the legislative Joint Committee on Information Tech-nology (JCIT).


5.70 Acceptance of Deliverables and Services – The Quality Assurance Review Process (QARP). The State will accept all Deliverables and Services according to the Quality Assurance Review Process (QARP) described below. This process shall be followed in conformance with any acceptance and payment process and criteria specifically designed for this Contract.

A. In each instance, parties shall mutually agree on the acceptance criteria for each Deliver-able or Service prior to starting development of that Deliverable or Service. The Contrac-tor is responsible for ensuring that the agreed to format is documented and signed by the K-CRAFTS Project Manager and the Contractor Project Manager prior to initiating activi-ties.

B. After the Contractor has completed a Deliverable or Service under this Contract, the Con-tractor shall submit such completed Service or Deliverable along with a formal ac-ceptance letter and a signed copy of the agreed upon acceptance criteria to the K-CRAFTS Project Manager (or designee) for approval. Unless otherwise specified and agreed to, Contractor shall submit five paper hardcopies (if a document) and one copy in editable electronic format on CD.

C. The K-CRAFTS Project Manager (or designee) shall have up to ten or otherwise mutually agreed upon number of working days following receipt of each Deliverable to complete the QARP process. Deliverables received after 10:00 a.m. will be considered delivered the next working day.

D. If the Deliverable provided by the Contractor is accepted by the K-CRAFTS Project Man-ager under QARP, the K-CRAFTS Project Manager shall notify Contractor by returning the signed acceptance letter within ten or otherwise mutually agreed to number of work-ing days of receipt of the Deliverable from Contractor.

E. Contractor shall submit to the State a written invoice for all QARP – accepted Delivera-bles.

F. The K-CRAFTS Project Manager shall notify the Contractor in writing within ten or other-wise mutually agreed to number of working days of receipt of a Deliverable from the Con-tractor if a Deliverable or any portion thereof is unacceptable under the QARP, and shall set forth the particularity and specificity of the reason for the rejection of the Deliverable.

G. Contractor shall have up to ten or otherwise mutually agreed to number of working days from the date of receipt of written notification of rejection of a Deliverable to correct the deficiency or deficiencies and bring the Deliverable into compliance with the requirements of the Contract. Should rejection of the deliverable impact the content of other non-completed deliverables, the Contractor and the K-CRAFTS Project Manager must deter-mine a mutually agreed to number of days for re-submission that minimizes the overall impact to the project schedule.

H. Upon receipt of such Deliverable resubmitted for approval, the K-CRAFTS Project Man-ager shall have up to five or otherwise mutually agreed to number of working days to de-termine whether the deficiencies specified in the rejection notice have been corrected. This subsequent review shall be limited to the original deficiencies and the portions of the deliverable that were dependent on the deficiencies.

I. After the above process is repeated and if the deliverable or any portion thereof is again found to be unacceptable, the process described in this section shall be repeated until:


(a) Acceptance by the K-CRAFTS Project Manager; or (b) The State, at its option, termi-nates the Contract for cause as specified within the Contract; or (c) The K-CRAFTS Pro-ject Manager grants the Contractor a delay or waiver and documents the same in writing; or (d)The State and the Contractor mutually agree to amend the Contract.

J. No invoice shall be honored by the State unless and until prior acceptance through the QARP process is obtained for the Deliverable or Service relating to said invoice.


5.71 Technology Architectural Compliance. All information technology initiatives and acquisitions will comply with the Kansas Information Technology Architecture, which can be viewed at http://www.oits.ks.gov/KITO/cita/KITA.htm

For information technology projects with total cumulative cost greater than $250,000, project plan documents must include an Architectural Statement for review by the Chief Information Technology Officer (CITO) of the appropriate branch.

Compliance with the Technology Architecture is assured when:

A. An item is selected for purchase from a state contract listed in the Technology Architec-ture; or

B. An item is included in a general category listed under the heading “Acceptable Standard” or “Emerging Standard” in the Technology Architecture; or

C. The item conforms to a technical standard listed under the headings “Acceptable Stand-ard” or “Emerging Standard” in the Technology Architecture.

Compliance with the Technology Architecture is problematic when an item conforms to a tech-nical standard or is included in a general category under the heading “Retired Standard” in the Technology Architecture. Contractors shall provide justification for new acquisitions or initiatives that are proposed under this heading. All state contracts for information technology products must conform to the Technology Architecture. Contractor certifies and warrants that all their of-ferings are in conformance with the Kansas Information Technology Architecture.


5.72 Geographic Information System (GIS). Contractor agrees that all databases created in this work should be compliant with existing GIS development standards and enterprises infrastructure to optimize spatial functionality and encoding for address data elements. The Kansas enterprise Geographic Information System (GIS) is based on Environmental Systems Research Institute (ESRI) technology.


5.73 Security. The approach to security shall conform to the standards set forth by the National Insti- tute of Standards and Technology (NIST) as detailed on their website. These standards can be

http://www.oits.ks.gov/KITO/cita/KITA.htm�


found by accessing this link: http://www.nist.gov/information-technology-portal.cfm

The approach to security shall also conform to the standards set forth by the Information Tech-nology Security Council as adopted by the Information Technology Executive Council and posted at: http://www.oits.ks.gov/Security/policy.htm


5.74 Services. In the event State requests consulting services which would result in modification to any vendor’s standard software product, Contractor agrees to notify the State as part of the Statement of Work, whether such modification(s) will be supported under vendor’s standard support service policies. In the event such modifications are not covered under vendor’s standard support, then Contractor agrees to include in the Statement of Work the yearly support cost required to support such modifications. In the event Contractor fails to comply with this requirement, the Contractor agrees to support such modifications AT NO ADDITIONAL COST TO THE STATE. In the event that the State’s requested modifications are incorporated into a commercially released product, then such modifications will be covered under standard support policies free of charge.


5.75 Copies of Documentation and Software.

A. Additional Copies of Documentation and Software. The State may make an unlimited number of copies of the Software and related documentation for: (i) production use ac-cording to the terms of this Contract; (ii) archive for emergency back-up purposes; (iii) training purposes; and (iv) disaster recovery testing purposes; and may modify or merge the Software with other software. State may maintain and store all copies of Documenta-tion and Software at any location without notice to Contractor.

Contractor shall initially provide the State with two copies of the updates and new ver-sions of the Software and a reasonable number of copies of all Documentation according to subject area. The State may also make an unlimited number of copies of Documenta-tion solely for the State’s use.

B. Documentation for versions and updates. The State may make an unlimited number of copies of the new versions and updates of the Software and related documentation for: (i) Production use according to the terms of this contract; (ii) Archive for emergency back-up purposes; (iii) Training purposes; and (iv) Disaster recovery testing purposes; and may modify or merge the Software with other software. State may maintain and store all copies of Documentation and Software at any location without notice to Contractor.

Contractor shall initially provide the State with two copies of the updates and new ver-sions of the Software and a reasonable number of copies of all Documentation according to subject area. The State may also make an unlimited number of copies of Documenta-tion solely for the State’s use.

C. Transfer and Assignment of Documentation. The State may transfer and assign doc-umentation, training manuals, etc. to any new agency, department, or other State entity without notice or permission from Contractor.

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5.76 Date Data Compliance. The contractor warrants fault-free performance in the processing of date and date-related data (including, but not limited to, calculating, comparing, and sequencing) by all goods and services delivered. Fault-free performance includes, but is not limited to, the manipulation of data with correct results when using dates prior to, though, and beyond Jan- uary 1, 2000, and shall be transparent to the user.

Hardware and software products, individually and in combination, shall provide the correct system date and correct calculations which utilize or refer to the date data, without human intervention, including leap year calculations. Hardware and software products, individually and in combina-tion, shall also provide correct results when moving forward or backward across the year 2000.


5.77 Deliverable Date: The Contractor agrees to have a working solution in place for production use in Kansas and meeting Kansas functional and technical requirements for IRP and H.B.2557 by the due date of January 1, 2014.


5.78 Deliverable Date: The Contractor agrees to have a working solution in place for production use in Kansas and meeting Kansas functional and technical requirements for IFTA by the due date of July 1, 2014.



5.79 Change Control Process

During the term of this Agreement, either the State Project Manager or Contractor’s Project Man-ager, provided an authorized State employee sponsors such change, may propose to modify the scope of the deliverables or services provided for in this Agreement. In such cases the party re-questing the change shall forward to the other party a written Change Control Request pursuant to the protocol set forth in the attached Change Control Process. The payment structure for a Change Control Request may be either fixed fee/fixed scope or time and materials based as the State may deem to be in its best interests. Should a Change Control Request require preliminary analysis, costs for such analysis shall be borne by Contractor except in the instance of an ex-traordinary request, which such cost shall be agreed upon by the parties.


I am a duly authorized agent of _________________________ (“Proposer”) and warrant that I am author-ized to accept and bind Proposer to the terms and conditions as indicated by my initials above.

____________________________ ______________________

Signature Date

____________________________

Printed Name:

____________________________

Title:

A169440; 9-29-08


RFP Section 6: FORMS

Forms: Immediately following are the various forms that support the procurement process and the sub-mission of a proposal. These forms are as follows:

1. Expression of Interest Form;

2. Signature Sheet;

3. Supplier Diversity Survey Form;

4. Tax Clearance Form;

5. DA-146a Contractual Provisions Attachment;

6. Certification Regarding Immigration Reform and Control;

7. Proposed Integration Services Reference Questionnaire; and

8. Proposed Software Provider Reference Questionnaire.

Proposers shall complete applicable forms in accordance with the instructions contained within each, and submit with the proposal.

EXPRESSION OF INTEREST FORM Item: Kansas Commercial Registration, Alcoholic Beverage Control, Fuel Tax System (K-CRAFTS)


Proposers are encouraged to bid the cost of adding modules for on additional tax types including other Motor Fuel taxes and Cigarette and Tobacco Tax.

Agency: Department of Revenue By submitting this form, a vendor is expressing an interest in the State of Kansas Software, with Associ-ated Integration Services procurement. The form will be used to create an email mailing list of interested vendors or individuals for the procurement. Whenever a communication of interest to potential Proposers and subcontractors is posted to the Procurement and Contracts web site at http://da.ks.gov/purch/, then those on the mailing list will receive an email advising them of that event with instructions on how to ac-cess the communication. The State is not responsible for email delivery failures. Please send completed forms to Tami Sherley, Procurement Officer, via:

• Email at [email protected]

• FAX at 785-296-7240

• United States Postal Service at: 800 S. W. Jackson Street, Suite 600 Topeka, Kansas 66612-1286

• Courier at: 800 S. W. Jackson Street, Suite 600

http://da.ks.gov/purch/�



Topeka, Kansas 66612-1286 785-296-2376

• Hand delivery at: 800 S. W. Jackson Street, Suite 600 Topeka, Kansas 66612-1286

Contact Name Company Mailing Address City and State Zip Office Telephone Mobile Fax E-Mail Signature Date Typed Name Title If an interested company desires to list multiple individuals, please submit a separate form for each.


SIGNATURE SHEET Item: Kansas Commercial Registration, Alcoholic Beverage Control, Fuel Tax System (K-CRAFTS)


Proposers are encouraged to bid the cost of adding modules for on additional tax types including other Motor Fuel taxes and Cigarette and Tobacco Tax.

Agency: Department of Revenue Closing Date: January 23, 2013 By submission of a proposal and the signatures affixed thereto, the Proposer certifies and warrants that all products and services proposed meet or exceed all requirements of this specification as set forth in the Request and that all exceptions are clearly identified. Legal Name of Person, Firm, or Corporation Mailing Address City and State Zip Toll Free Telephone Local Cell Fax Tax Number E-Mail Signature Date Typed Name Title In the event that the contact for the proposal process is different from the person specified above, indi-cate contact information below. Proposal Process Contact Name Mailing Address City and State Zip Toll Free Telephone Local Cell Fax E-Mail If awarded a contract and purchase orders are to be directed to an address other than the legal ad-dress specified above, indicate purchase order mailing address and telephone number below. Mailing Address City and State Zip Toll Free Telephone Local Cell Fax E-Mail


TAX CLEARANCE FORM Per K.S.A. 75-3740-(c), the Director of Purchases may reject the proposal of any Proposer who is in ar-rears on taxes due the State of Kansas. The Procurement and Contracts will confirm tax status of all po-tential contractors and subcontractors prior to the release of a purchase order or contract award. The State of Kansas reserves the right to allow a Proposer an opportunity to clear tax status within ten calen-dar days, or to proceed with award to the next lowest responsive Proposer, whichever is determined by the Director of Purchases to be in the best interest of the State. The Secretary of Revenue is authorized to exchange such information with the Director of Purchases as is necessary to determine the Proposer’s tax clearance status, notwithstanding any other provision of law prohibiting disclosure of the contents of taxpayer records or information. Instructions on how to check Tax Clearance Status can be found at the following web site: https://www.kdor.org/TaxClearance/Self/Default.aspx Information about Tax Registration can be found at the following web site: https://www.kdor.org/TaxClearance/Self/Default.aspx Contact Information: Please provide the attached contact information for use should the State of Kan-sas need to contact the appropriate officials within your company to discuss your tax clearance / registra-tion status. CONTRACTOR Contact Person for Tax Issues:

Company Name Tax Number

Mailing Address

City and State Zip Code

Toll Free Telephone Local Cell Fax

E-Mail

SUBCONTRACTOR(S) Contact Person for Tax Issues:

Company Name: Tax Number

Mailing Address

City and State Zip Code

Toll Free Telephone Local Cell Fax

E-Mail Additional pages may be added, as required, indicating the same information for multiple subcontractors.

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State of Kansas Department of Administration DA-146a (Rev. 10-11)

CONTRACTUAL PROVISIONS ATTACHMENT Important: This form contains mandatory contract provisions and must be attached to or incorporated in all copies of any contrac-

tual agreement. If it is attached to the vendor/contractor's standard contract form, then that form must be altered to contain the following provision:

"The Provisions found in Contractual Provisions Attachment (Form DA-146a, Rev. 10-11), which is attached hereto,

are hereby incorporated in this contract and made a part thereof." The parties agree that the following provisions are hereby incorporated into the contract to which it is attached and

made a part thereof, said contract being the _____ day of ____________________, 20_____. 1. Terms Herein Controlling Provisions: It is expressly agreed that the terms of each and every provision in this attachment

shall prevail and control over the terms of any other conflicting provision in any other document relating to and a part of the contract in which this attachment is incorporated. Any terms that conflict or could be interpreted to conflict with this attachment are nullified.

2. Kansas Law and Venue: This contract shall be subject to, governed by, and construed according to the laws of the State of

Kansas, and jurisdiction and venue of any suit in connection with this contract shall reside only in courts located in the State of Kansas.

3. Termination Due To Lack Of Funding Appropriation: If, in the judgment of the Director of Accounts and Reports, Depart-

ment of Administration, sufficient funds are not appropriated to continue the function performed in this agreement and for the payment of the charges hereunder, State may terminate this agreement at the end of its current fiscal year. State agrees to give written notice of termination to contractor at least 30 days prior to the end of its current fiscal year, and shall give such no-tice for a greater period prior to the end of such fiscal year as may be provided in this contract, except that such notice shall not be required prior to 90 days before the end of such fiscal year. Contractor shall have the right, at the end of such fiscal year, to take possession of any equipment provided State under the contract. State will pay to the contractor all regular contractual payments incurred through the end of such fiscal year, plus contractual charges incidental to the return of any such equipment. Upon termination of the agreement by State, title to any such equipment shall revert to contractor at the end of the State's cur-rent fiscal year. The termination of the contract pursuant to this paragraph shall not cause any penalty to be charged to the agency or the contractor.

4. Disclaimer Of Liability: No provision of this contract will be given effect that attempts to require the State of Kansas or its

agencies to defend, hold harmless, or indemnify any contractor or third party for any acts or omissions. The liability of the State of Kansas is defined under the Kansas Tort Claims Act (K.S.A. 75-6101 et seq.).

5. Anti-Discrimination Clause: The contractor agrees: (a) to comply with the Kansas Act Against Discrimination (K.S.A. 44-

1001 et seq.) and the Kansas Age Discrimination in Employment Act (K.S.A. 44-1111 et seq.) and the applicable provisions of the Americans With Disabilities Act (42 U.S.C. 12101 et seq.) (ADA) and to not discriminate against any person because of race, religion, color, sex, disability, national origin or ancestry, or age in the admission or access to, or treatment or employ-ment in, its programs or activities; (b) to include in all solicitations or advertisements for employees, the phrase "equal oppor-tunity employer"; (c) to comply with the reporting requirements set out at K.S.A. 44-1031 and K.S.A. 44-1116; (d) to include those provisions in every subcontract or purchase order so that they are binding upon such subcontractor or vendor; (e) that a failure to comply with the reporting requirements of (c) above or if the contractor is found guilty of any violation of such acts by the Kansas Human Rights Commission, such violation shall constitute a breach of contract and the contract may be cancelled, terminated or suspended, in whole or in part, by the contracting state agency or the Kansas Department of Administration; (f) if it is determined that the contractor has violated applicable provisions of ADA, such violation shall constitute a breach of con-tract and the contract may be cancelled, terminated or suspended, in whole or in part, by the contracting state agency or the Kansas Department of Administration.

Contractor agrees to comply with all applicable state and federal anti-discrimination laws. The provisions of this paragraph number 5 (with the exception of those provisions relating to the ADA) are not applicable to a

contractor who employs fewer than four employees during the term of such contract or whose contracts with the contracting State agency cumulatively total $5,000 or less during the fiscal year of such agency.

6. Acceptance Of Contract: This contract shall not be considered accepted, approved or otherwise effective until the statutorily

required approvals and certifications have been given. 7. Arbitration, Damages, Warranties: Notwithstanding any language to the contrary, no interpretation of this contract shall find

that the State or its agencies have agreed to binding arbitration, or the payment of damages or penalties. Further, the State of Kansas and its agencies do not agree to pay attorney fees, costs, or late payment charges beyond those available under the Kansas Prompt Payment Act (K.S.A. 75-6403), and no provision will be given effect that attempts to exclude, modify, disclaim or otherwise attempt to limit any damages available to the State of Kansas or its agencies at law, including but not limited to the implied warranties of merchantability and fitness for a particular purpose.

8. Representative's Authority To Contract: By signing this contract, the representative of the contractor thereby represents

that such person is duly authorized by the contractor to execute this contract on behalf of the contractor and that the contractor agrees to be bound by the provisions thereof.

9. Responsibility For Taxes: The State of Kansas and its agencies shall not be responsible for, nor indemnify a contractor for,

any federal, state or local taxes which may be imposed or levied upon the subject matter of this contract.


10. Insurance: The State of Kansas and its agencies shall not be required to purchase any insurance against loss or damage to property or any other subject matter relating to this contract, nor shall this contract require them to establish a "self-insurance" fund to protect against any such loss or damage. Subject to the provisions of the Kansas Tort Claims Act (K.S.A. 75-6101 et seq.), the contractor shall bear the risk of any loss or damage to any property in which the contractor holds title.

11. Information: No provision of this contract shall be construed as limiting the Legislative Division of Post Audit from

having access to information pursuant to K.S.A. 46-1101 et seq. 12. The Eleventh Amendment: "The Eleventh Amendment is an inherent and incumbent protection with the State of Kansas and

need not be reserved, but prudence requires the State to reiterate that nothing related to this contract shall be deemed a waiv-er of the Eleventh Amendment."

13. Campaign Contributions / Lobbying: Funds provided through a grant award or contract shall not be given or received in

exchange for the making of a campaign contribution. No part of the funds provided through this contract shall be used to influ-ence or attempt to influence an officer or employee of any State of Kansas agency or a member of the Legislature regarding any pending legislation or the awarding, extension, continuation, renewal, amendment or modification of any government

contract, grant, loan, or cooperative agreement.


CERTIFICATION REGARDING IMMIGRATION REFORM and CONTROL All Contractors are expected to comply with the Immigration and Reform Control Act of 1986 (IRCA), as may be amended from time to time. This Act, with certain limitations, requires the verification of the employment status of all individuals who were hired on or after November 6, 1986, by the Contrac-tor as well as any subcontractor or sub-subcontractor. The usual method of verification is through the Employment Verification (I-9) Form. With the submission of this proposal, the Contractor hereby certifies without exception that Contractor has complied with all federal and state laws relating to immigration and reform. Any misrepresentation in this regard or any employment of persons not authorized to work in the United States constitutes a material breach and, at the State’s option, may subject the contract to termi-nation and any applicable damages. Contractor certifies that, should it be awarded a contract by the State, Contractor will comply with all applicable federal and state laws, standards, orders, and regulations affecting a person’s participation and eligibility in any program or activity undertaken by the Contractor pursuant to this contract. Contrac-tor further certifies that it will remain in compliance throughout the term of the contract. At the State’s request, Contractor is expected to produce to the State any documentation or other such evidence to verify Contractor’s compliance with any provision, duty, certification, or the like under the contract. Contractor agrees to include this Certification in contracts between itself and any subcontractors in connection with the services performed under this contract. ____________________________________________ ______________________ Signature, Title of Contractor Date


STATE OF KANSAS K-CRAFTS Project

PROPOSED INTEGRATION SERVICES PROVIDER REFERENCE QUESTIONNAIRE Use this form for the Proposer.

Proposer Name (Integration Services Vendor) or subcontractor:

________________________________________________________________________

Reference (Client Organization) Name:

________________________________________________________________________

Reference Criteria Number:

________________________________________________________________________

Person Responding to this Re-quest for Reference Information:

_______________________________________________________ Printed Name

_______________________________________________________ Signature _______________________________________________________ Title _______________________________________________________ Telephone _______________________________________________________ Email

_______________________________________________________ Date

Instructions: Please provide responses to the items that appear on the following pages. If completed using an electronic copy in MS Word format, use as much space as required. If completed manually, please record responses in space provided.

Please work independently, without the collusion of any other person. An exception to this is to speak with someone in your organization to obtain or confirm a piece of requested information.

Please do not share your responses with anyone.

Your input will not be disclosed outside the K-CRAFTS Project Procurement Evaluation Team.

You might receive a follow up telephone call to clarify your responses from a member of the K-CRAFTS Project Reference Team.

Thank you! Your help is very much appreciated.


A. Indicate (if known), by checking the appropriate box, functionality acquired, which functionality that the vendor assisted your organization in implementing, and which is currently in production for your site. If the software is in production, please indicate the date it was put into production. If other major functionali-ty not listed was acquired, please list these in the blank boxes at the bottom of the table.

Acquired Functionality Assisted

by Vendor In

Production Date In

Production

Licensing, Tax and Enforcement IFTA IRP Workflow and Correspondence Manage-

ment

Administrative Action and Case Manage-ment

Accounting and Distribution of Payments

B. Please indicate the dates that the vendor provided implementation services (if known).

From: Through:

C. Indicate the services provided by the implementation vendor to your organization (if known). Project Management and Project Management Methodology Technical Architecture and Infrastructure Design Requirements Validation Business Process Design Software Configuration Reports Analysis and Development Data Warehousing Enhancements and Modifications Interface Development Data Conversion Workflow Configuration Security Configuration Testing Training Documentation Knowledge Transfer Enterprise Readiness Communications


Cultural Change Management Establishment of a Help Desk Production Transition and Deployment (Roll-out) Support Post-Implementation Support Quality Assurance Other: __________________________________________________________________

Please rate your level of agreement with the following statements, and note any comments. IMPORTANT: If you mark “Disagree,” please provide an explanation for your response.

Evaluation Question

Agree Agree Disagree Disagree Unknown Strongly Strongly

We negotiated an equitable contract with the imple-mentation services vendor, with the terms and condi-tions that were important to us. Comments:

The implementation services vendor has been re-sponsive when there have been issues or problems with the contract. Comments:

The implementation services vendor followed through with any representations made during the sales pro-cess. Comments:

The implementation services vendor has a sound project management methodology, using a compre-hensive set of tools, processes, and templates. Comments:

The implementation services vendor assigned the right number of vendor personnel with the right skills for the right amount of time to our project. Comments:


Evaluation Question

Agree Agree Disagree Disagree Unknown Strongly Strongly

The implementation services vendor was able to complete the project on time and within budget. Comments:

The implementation services vendor has been re-sponsive when there have been post-production is-sues or problems. Comments:

Knowing what we know now, we would make the same decision to use this implementation services vendor for these services. Comments:

1. Do you have any additional advice for the State of Kanas regarding this project?


STATE OF KANSAS K-CRAFTS Project

PROPOSED SOFTWARE PROVIDER REFERENCE QUESTIONNAIRE Use this form for the Software Provider.

Software Provider Name (Software Vendor):

________________________________________________________________________

Reference (Client Organization) Name:

________________________________________________________________________

Reference Criteria Number:

_______________________________________________________________________

Person Responding to this Re-quest for Reference Information: _______________________________________________________

Printed Name

_______________________________________________________ Signature _______________________________________________________ Title _______________________________________________________ Telephone _______________________________________________________ Email

_______________________________________________________ Date

Instructions: Please provide responses to the items that appear on the following pages. If completed using an electronic copy in MS Word format, use as much space as required. If completed manually, please record responses in space provided.

Please work independently, without the collusion of any other person. An exception to this is to speak with someone in your organization to obtain or confirm a piece of requested information.

Please do not share your responses with anyone.

Your input will not be disclosed outside the K-CRAFTS Project Procurement Evaluation Team.

If there is anything that you would prefer to discuss verbally, please call Nalita Wright, K-CRAFTS Project, at 785-296-3799.

You might receive a follow up telephone call to clarify your responses from a member of the K-CRAFTS Project Reference Team.

Thank you! Your help is very much appreciated.


A. Indicate (if known), by checking the appropriate box, functionality acquired, and which functionality is currently being implemented or in production for your site. If the software is in production, please indicate the date it was put into production. If the software vendor was involved in the implementation of this module, check the box under “Assisted by Vendor.” If this was a module implemented using another im-plementation services vendor or done in-house, leave the “Assisted by Vendor” box blank. If other major functionality not listed was acquired, please list these in the blank boxes at the bottom of the table.

Acquired Functionality In

Production Assisted

by Vendor Date In

Production

Licensing, Tax and Enforcement IFTA IRP Workflow and Correspondence Management Administrative Action and Case Management Accounting and Distribution of Payments

B. Please rate your level of agreement with the following questions, and note any comments. IMPORTANT: If you mark “Disagree,” please provide an explanation for your response.

Evaluation Question Agree Agree Disagree Disagree Unknown Strongly Strongly

We negotiated an equitable contract with the soft-ware vendor. Comments:

We were able to negotiate the contract terms and conditions that were important to us. Comments:

We are satisfied with the software vendor’s respon-siveness when there have been issues or problems with the contract. Comments:



The software vendor followed through with any rep-resentation made during the sales process. Comments:

We are satisfied with the quality of the software that we acquired. Comments:



We are satisfied with the level of effort required to implement the software. Comments:

The software is meeting our business needs. Comments:

We are satisfied with the software vendor’s respon-siveness when there have been issues or problems with the software. Comments:

We are satisfied with the quality of the software ven-dor’s service and support staff with which we have worked during the implementation and post-implementation phases of the project. Comments:

Knowing what we know now, we would make the same decision to acquire and implement this soft-ware. Comments:

What other advice do you have for the State of Kansas? Will you tell us what your department spent on hardware for the licensing system? $ _____________

Will you tell us what your department spent on licensing software? $ _____________

Will you tell us what your department spends for annual maintenance cost? $ _____________


RFP Appendix 1: Functional Requirements

The following Functional Requirements Matrix spreadsheets are available at the State of Kansas Pro-curement and Contracts web site: http://www.da.ks.gov/purch/adds/xxx.zip. Proposers shall respond to each requirement with their product’s FIT RATING and include them in TECHNICAL PROPOSAL AP-PENDIX 1 (see RFP Section 3.20).

“Functional Requirements 12-14-12 All Applications.xlsx”

“CATE Functional Requirements; Final 12-10-12.docx”

“Drug Tax Functional Requirements.docx”

“IFTA Functional Requirements 12-10-12.docx”

“IFTA IRP Audit Requirements.docx”

“IRP Functional Requirements.docx”

“Liquor Drink Tax and Liquor Enforcement Tax Requirements 12-14-12.docx”

“Liquor Licensing and Enforcement Requirements – Final 12-14-12.xlsx”

“Liquor Tax Accounting and Distribution Requirements.docx”

http://www.da.ks.gov/purch/adds/xxx.zip�


RFP Appendix 2: Technical Requirements

The following Technical Requirements Matrix spreadsheets are available at the State of Kansas Pro-curement and Contracts web site: http://www.da.ks.gov/purch/adds/xxx.zip. Proposers shall respond to each requirement with their product’s FIT RATING and include them in TECHNICAL PROPOSAL AP-PENDIX 2 (see RFP Section 3.21).

“Technical Requirements 12-10-12 All Applications.xlsx”

http://www.da.ks.gov/purch/adds/xxx.zip�


RFP Appendix 3: Data Warehousing and Report Requirements

Report Requirements are included under Functional Requirements. Proposers shall respond to each re-quirement with their product’s FIT RATING and include them in TECHNICAL PROPOSAL APPENDIX 1 (see RFP Section 3.20).

Included in:

Appendix 1 “Functional Requirements 12-14-12 All Applications.xlsx” and

Appendix 2 “Technical Requirements 12-10-12 All Applications.xlsx;


RFP Appendix 4: Cost Proposal Schedules

The following Cost Proposal Schedules are available at the State of Kansas Procurement and Contracts web site: http://www.da.ks.gov/purch/adds/. Proposers are advised to check the results of their cost schedule entries carefully to ensure that the correct figure is populated from spreadsheet to spreadsheet. If an error is found or suspected, please contact the Procurement Officer immediately. “Cost Schedule K-CRAFTS.xlsm”

1. Schedule 1 – Summary Presentation

2. Schedule 2 – Total Cost Summary

3. Schedule 3 – Deliverables Payment

4. Schedule 4 – Staffing Plan by Activity

5. Schedule 5 – Staffing Plan by Position

6. Schedule 6 – Training Breakdown

7. Schedule 7 – Enhancements and Modifications

8. Schedule 8 – Other Costs

9. Schedule 9 – Labor Rates


RFP Appendix 5: Interface System Requirements

Interface Scope

The Contractor will be responsible for developing interfaces between the new integrated licensing system and the identified applications.

Current or new interfaces - These interfaces will need to be replaced by incorporating the data into the new system or by developing a new interface. The Proposer should use this information to estimate the level of effort required to design, develop, validate, test, reconcile, document, and deliver production-ready interfaces.

Required: Interface reconciliation reports for all interfaces that check the number of transactions received with the number of transactions sent, as well as a comparison of key amount check totals; Interface doc-umentation including development of procedures that support interface operations.

The Proposer shall include the estimated cost for providing the required interfaces. Proposers are ad-vised to look for situations where an interface may be replaced by the new system and therefore rendered unnecessary.

See also Zip Files

“Interfaces Requirements.xlsx.”

“IRP Interface Requirements.xlsx”

“Liquor License Interfaces.xlsx”

“Appendix 1 Liquor Licensing and Enforcement Requirements Final 12-14.12.xlsx”

“Appendix 1 Liquor Drink Tax and Liquor Enforcement Requirements 12-14.12.docx”

KSWebTax application allows Liquor Enforcement customers to file Liquor Enforcement returns and payments. The interface requested by this proposal will accept payment data from the web application and move it into the New Liquor licensing and Enforcement System.

Liquor Enforcement Tax

Fields are below.

The Web application captures system data for a Liquor Enforcement return and payment and currently processes the existing deposit into the legacy Liquor Enforcement tax system. The interface and the leg-acy Liquor Enforcement Tax system will be replaced.

Field Name Format Processing

Liquor Enforcement License number 01 ### #### ##

eight digit 0 ### ####.

Filing Period MMCCYY Entered Total Gross Receipts 9,999,999.99 Entered Tax Due 999,999.99 Calculated: 8% of Total

Gross Receipts Penalty 999,999.99 Entered Interest 999,999.99 Entered Remittance Due 999,999.99 Calculated: Tax Due +

Penalty + Interest

Field Name Format Processing


Liquor Enforcement License number 01 ### #### ##

eight digit 0 ### ####.

Filing Period MMCCYY Remittance Amount 999,999.99 Must be > $0.00

Field Name Format Processing Liquor Enforcement License number 01 ### ####

## As captured in Liquor Enforce-ment return data

Filing Period MMCCYY As captured in Liquor Enforce-ment return data

No Sales Indicator N

The Wine Enforcement return data and payment information will be processed as a separate transaction from the Liquor Enforcement return and payment data. The return w/payment dataset is currently sent to the Legacy system The validation date will be the same as the deposit date in the Legacy system.

Liquor Drink Tax return (RL1) with payment.

Liquor Drink Tax

Liquor Drink License Number

Filing Period – Format MMCCYY

Return Due Date

Gross Receipts from All Retail Sales – Format up to 9,999,999.99

Gross Receipts from Alcohol Sales – Format up to 9,999,999.99

Tax Due (Calculated – 10% of Gross Receipts from Alcohol Sales) – Format up to 999,999.99

Penalty – Format up to 999,999.99

Interest – Format up to 999,999.99

Total Amount Due (Calculated) – Tax Due + Penalty + Interest

Total Remittance Amount (♣) – Format up to 999,999.99, must be > 0.00.


RFP Appendix 6: Additional Conversion Requirements

The information contained in this appendix is provided to assist the Proposer in estimating the level of effort to convert data from KDOR’s legacy environment to the new system.

KDOR currently operates several legacy systems that provide the primary subject data for conversion.

To realize the overall goal of implementing an integrated customer-centric system capable of supporting all accounting, control, and program services, substantial effort will be required to consolidate and de-duplicate taxpayer data currently maintained in Access, Excel, the AS/400, Mainframe and the .Net data-bases. It is anticipated that much of the data conversion will be accomplished by automated methods, but significant manual effort will also be required to match and to reconcile differences in names, ad-dresses, and other customer identifying information.

The Proposer should review carefully each Section (i.e. 1.X.8) to fully understand the conversion re-quirements for each module and to formulate the overall conversion strategy, recommend an approach to converting data, recommend conversion activities and tasks for KDOR, and estimate the level of effort required to execute the data migration strategy. The Proposer should also identify additional information required by the new system that is not part of the legacy environment, including proposing an approach on how this additional data will be produced. In addition, the Proposer should also address the iterative nature of the conversion process (e.g., one time for all records with multiple iterations of changed / new records since last conversion). Proposers should rely on their experience with conversion of similar size and complexity from other state to propose an approach and strategy that has proven successful in terms of migrating data from a legacy to the proposed environment.

Proposers are expected to utilize automated conversion tools or utilities that expedite the validation and loading of converted data. The Proposer will be responsible for developing and testing automated con-versions. This responsibility includes: developing conversion programming specifications; assisting KDOR with data mapping and any crosswalk file structures required to develop test scenarios and con-ducting acceptance testing; developing conversion programs in accordance with program specifications; unit and integration testing of the conversion programs; and converting legacy records into the new sys-tem.

KDOR will take responsibility for extracting the target records from the legacy environment, loading data that is not converted or loaded automatically, and for certifying the accuracy of the converted data.

KDOR recognizes that data validation is a substantial task when converting from disparate systems into an integrated system. KDOR is interested in any tools the integrator can provide that will assist with the data cleanup and validation process. If KDOR discovers during the data validation process that the data does not convert as expected as a result of errors in the conversion logic (as opposed to data errors), the Contractor will be responsible for timely correction of the conversion logic and re-execution of the conver-sion programs.

The current record volumes for each of the files described above are provided below. These volumes reflect how much electronically stored data exists in the current legacy systems. In order to estimate the duration of the data conversion and the data validation components of the project, also reference the re-tention periods specifying how much data will be converted which are included in the General and Tech-nical Requirements.


RFP Appendix 7: Tables and Files

“Master Files for Liquor.docx” “Drug Tax Application.docx “Liquor Tax WebFile Layouts.docx” “Liquor Drink and Liquor Enforcement Tax mainframe.docx “IFTA Logical Data Model.pdf”


RFP Appendix 8: STATE OF KANSAS

APPLICATION ARCHITECTURE QUESTIONNAIRE Proposers are required to complete the following questionnaire and include it in their proposal. Attach additional pages as required.

Part 1 – Architecture

Q1. Please describe the hardware platforms, operating systems, and databases that the proposed product supports. If there are benchmarks or performance statistics, please provide those as well. In addition (but not required), feel free to attach a matrix of operating system / database sta-tistics to describe performance if that presentation better portrays the information requested. Un-der “Recommended Ranking” please rank in numerical order the solution that you feel best fits the needs of the State of Kansas.

SUPPORTED EXPERIENCE (1= LOW, 4= HIGH) BENCHMARK RECOMMENDED RANKING (Highest = 1) Platforms Mainframe Y N 1 2 3 4 Y N (Specify model_________________) Xeon/Opteron Y N 1 2 3 4 Y N Sparc/UltraSparc Y N 1 2 3 4 Y N IBM Power Series Y N 1 2 3 4 Y N IBM AS/400 Y N 1 2 3 4 Y N Itanium Y N 1 2 3 4 Y N Other ________________________ 1 2 3 4 Y N

________________________ 1 2 3 4 Y N

SUPPORTED BIT EXPERIENCE (1= LOW, 4= HIGH) BENCHMARK RECOMMENDED RANKING (Highest = 1)

Operating Systems Versions z/OS _____ Y N 32 64 1 2 3 4 Y N AIX _____ Y N 32 64 1 2 3 4 Y N Solaris _____ Y N 32 64 1 2 3 4 Y N LINUX _____ Y N 32 64 1 2 3 4 Y N Windows _____ Y N 32 64 1 2 3 4 Y N OS/400 _____ Y N 32 64 1 2 3 4 Y N HP/UX _____ Y N 32 64 1 2 3 4 Y N Other ___________________ 32 64 1 2 3 4 Y N

___________________ 32 64 1 2 3 4 Y N


SUPPORTED EXPERIENCE (1= LOW, 4= HIGH) BENCHMARK RECOMMENDED RANKING (Highest = 1) Databases Versions Oracle ______ Y N 1 2 3 4 Y N DB2 ______ Y N 1 2 3 4 Y N SQL Server ______ Y N 1 2 3 4 Y N ASE* ______ Y N 1 2 3 4 Y N My SQL ______ Y N 1 2 3 4 Y N Other ___________________ 1 2 3 4 Y N ___________________ 1 2 3 4 Y N * Formerly Sybase Q2. Please describe the major hardware and software components of the proposed product and

provide an architectural diagram(s). Q3. Describe the software components that comprise the framework of the application. What is the

technology and architecture that supports these components (J2EE, .NET)? What components are required on the web client in order to complete the user interface? What types and levels of browsers are supported, and with what desktop operating systems?

Q4. Describe the data warehousing options. The description should include any applicable licens-

ing issues, and an explanation as to whether reporting is addressed in the “live system” or through an off-line data warehouse. The description should also address available business in-telligence tools and associated architecture.

Q5. What are the State’s distributed computing options (distributed computing is a method of com-

puter processing in which different parts of a program run simultaneously on two or more com-puters that are communicating with each other over a network)?

Part 2 – Integration and Interfaces Q1. What integration tool(s) and technologies are provided (Messaging, WS* Services, etc.)? Q2. Describe any communication (e.g., ODBC) and data (e.g., XML, EDI) standards that are sup-

ported for the proposed product to interface with outside organizations / providers. Q3. What interfaces to other systems may be required, desired, or optional? Q4. What data conversion tools are provided? Clearly articulate the plan to migrate the State’s da-

ta. Q5. What email products (e.g., MS Outlook, Lotus Notes) are the proposed software certified to

support, especially for workflow? Q6. What integration does the proposed software provide to desktop productivity software applica-

tions (e.g., word processing, spreadsheets)? Q7. What is the proposed SOA approach to data integration?


Part 3 – Environmental Q1. Recommended Configurations – Please address the following:

1. Internal development environment (include hardware, software, integration tools, version control, etc.).

2. Test environment (include hardware, software, possible load and stress testing tools, pos-sible web interface, possible email interfaces, etc.).

3. Production environment (include performance and health monitoring).

4. Describe any other environments needed such as training, “sandbox,” etc.

5. Describe options and recommended configuration for failover, availability, scalability, and reliability.

6. Describe the scheduling package options required to run the application. Q2. How scalable is this recommendation (include hardware scalability, maximum number of us-

ers, and software scalability in your answer)? Part 4 – Additional Questions Customizations and Future Upgrades Q1. Describe the recommended approach to customizations required to meet the State’s Functional Re-

quirements and how those customizations would be addressed in future upgrades / releases. Q2. Describe the recommended methodology for developing and migrating customizations from devel-

opment through to production. Q3. Are future component enhancements / expansions planned? If so, please describe. Q4. What is the expected schedule for release of new versions and upgrades? Are there additional

costs for these releases beyond any proposed maintenance fees? Licensing Q1. How is the proposed product(s) licensed (named user, server, CPU, etc.)? Q2. How do you address licensing for third party components? Q3. Is the source code available? Report Development Q1. What reporting tools, if any, are provided with the software product? If applicable, how many li-

censes of each reporting tool are provided with the software product? Q2. What reporting tools, if any, are provided with the data warehouse functionality? If applicable, how

many licenses of each reporting tool are provided with the data warehouse functionality? Q3. What reporting tools are supported (e.g., Crystal Reports)? Q4. Do the proposed reporting tools leverage application security for data filtering?


Data Q1. How is historical data addressed? Q2. How are the archiving and purging of historical data addressed in the application? Q3. Can usage for cost or billing allocations be captured and tracked? Security Q1. How is security addressed in the proposed product (include menu and screen access, individu-

al, role, or group-based access, database vs. application access control, and standard security reports)?

Q2. Does the software product support integration of authentication (single sign-on) and authorization (role-based)? Q3. Does the software product allow for decentralized / segmented security administration? Q4. Describe the software product’s access audit capabilities. Miscellaneous Q1. Describe the application’s document management integration capabilities. Q2. Describe the minimum and recommended hardware and software requirements of the client. Q3. Describe the support for help desk deployment – knowledge base, specialized training, CBT, etc. Q4. What is the recommended post-implementation staffing (include number and type of support

personnel, skills needed, and contracted support needed). Q5. Describe the recommended plan for training technical staff. Q6. Is the proposed product based on a service-oriented architecture? If not, are there published plans

to migrate the proposed product to the service-oriented architecture? If so, please describe such plans in detail.

Q7. Describe proposed product’s compliance with ADA Section 508 as well as any other accessibility

initiatives. The State of Kansas Web Content Accessibility Guidelines document is available at (http://www.oits.ks.gov/kpat/). Please confirm the software product’s compliance with these guide-lines, or note exceptions.

Request for Proposal (RFP) Event ID: EVT0001929

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Transcript of Request for Proposal (RFP) Event ID: EVT0001929