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RESPONSE - RFP - 8075 CONSULTATION SERVICES FOR REVIEW & RECOMMENDATION OF UPGRADING OR PURCHASING A NEW UTILITY CUSTOMER INFORMATION SYSTEM
proposal for: City of Fort Collins request for: RFP 8075 Consultation Services for Review and Recommendation of Upgrading or Purchasing a New Utility Customer Information System Date: May 22, 2015 Back of Page Intentionally Left Blank for Pagination Purposes From the Office of AAC May 22, 2015 Pat Johnson Senior Buyer City of Fort Collins 215 North Mason Street Fort Collins, CO 80524 Ms. Johnson, Thank you for the opportunity for AAC Utility Partners to submit a proposal for the City of Fort Collins Utilities RFP (8075 Consultation Services for Review and Recommendation of Upgrading or Purchasing a New Utility Customer Information System). We have worked hard in developing a proposal that effectively answers the requested questions while also being respectful of your desire for a concise response. Our proposal will give you a thorough picture of what your CIS assessment project will look like under AAC’s guidance. Per the RFP, we have developed an executive summary that highlights our proposal and focuses on information and features that we believe are relevant to your evaluation. The executive summary starts on page 1. AAC’s proposal will provide each of the seven deliverables as outlined in the RFP - II. Scope of Work (A. Required Deliverables) as well as additional information that is critical in assessing CIS systems and determining the best go forward strategy (upgrade or replace). As Deliverable seven (7. May assist with the development of a scope of work for an RFP for either upgrading the current system or for a different CIS system.) is not mandatory, we have provided our methodology and pricing for Deliverable 7 in the Appendix. I have full authority to negotiate and authorize all aspects of scope, services, terms and contract. This proposal is valid for 180 days from May 22, 2015. Shannon Campbell will be the primary contact and can be reached at 803-397-8405 or scampbell@teamaac.com to discuss any aspects of the proposal. We are a very straight-forward company in all of our business dealings. As you will see, our response is not weighed down with marketing materials or superfluous information, as requested. If you believe we are qualified to assist you with this project, we will be glad to meet with you in person to further discuss our experience and capabilities. iii ©2015 AAC Utility Partners We appreciate this opportunity to earn the City of Fort Collins Utilities’ business and look forward to speaking with you further. Thank you for your time and consideration. Respectfully, Edwin Crow Managing Partner 4711 Forest Drive, Suite 3, PMB 374, Columbia, SC 29206 M: 803-920-7939 | O: 941-371-2253 | F: 803.227.0763 | ecrow@teamaac.com iv Table of Contents Executive Summary ................................................................ 1 B. Consultant Information and Firm Capability .............................................................................................................5 C. Scope of Services ..............................................................17 D. Availability ........................................................................35 E. Sustainability / TBL Methodology .....................37 F. Cost and Work Hours .................................................. 39 G. Assigned Personnel ........................................................43 H. Additional Information ...........................................57 Appendix ..................................................................................... 59 Exhibit A.....................................................................................71 Back of Page Intentionally Left Blank for Pagination Purposes 1 Executive Summary THE JOURNEY AHEAD If you are short on time, here are the primary details of this proposal: 1. Yes, we have done this kind of work before and our clients will be happy to talk with you about us. We have performed similar projects with numerous electric, water, wastewater, and multi-service utilities. We are proud of the success our clients have achieved with their CIS projects. As an example, two of our clients have been awarded CS Week’s CIS Expanding Excellence “Best CIS Implementation” awards in the last 5 years and one of our clients has been awarded by The National Association of Counties (NACo) with a 2013 Achievement Award for its program entitled “Enhancing Customer Service Through Technology, Flexibility, and Efficiency.” Our client base is comprised of approximately 70% public utilities, which has allowed us to gain a thorough knowledge of how public utilities utilize their CIS and other mission critical systems, as well as the laws and procurement processes of public agencies. 2. AAC is a consulting firm focused 100% on the utilities industry. Our Managing Partners and CIS strategy and selection consultants have an average of 22 years in the CIS, utilities, and technology industries. Assigned consultants are experienced, knowledgeable and great to work with. 3. AAC works specifically for our clients, not the software vendors or system integrators. To protect our clients from any appearance of impropriety, AAC does not and has never generated any revenue from a software or systems integration vendor. 2 ©2015 AAC Utility Partners Executive Summary 4. AAC has unique and extensive experience with utilities that are evaluating or replacing the SCT/Hansen Banner CIS. A sampling of our Banner clients include: • The City of Provo, UT • The City of Roseville, CA • Bryan Texas Utilities • North West Electric/Water Utility, OR Not only have we assisted many utilities with the assessment and replacement of Banner, we have a number of consultants on staff that served as key employees for SCT/Indus in multiple roles. We have considerable experience working with Banner clients and other utilities that support college towns including the University of Florida, Brigham Young University, Texas A&M and others, so we understand the unique needs of utilities that serve college towns. 5. AAC has unique and extensive experience working with multi-service utilities that provide electric, water and wastewater services. We have managed more than 60 successful projects with more than 61 percent of our clients being electric providers and 47% of our clients providing water service (many of our clients are multi-service utilities). This experience includes working with numerous public electric and water utilities in the areas of Net Energy Metering, Water Budgets, Smart Grid Initiatives, Water Efficiency Requirements, Conservation, Time of Use Rates, Pre-paid Metering and Regulatory Initiatives. 6. AAC will utilize our proven and proprietary methodology, NavigateOne™, to deliver the CIS assessment for CFCU. NavigateOne™ is AAC’s proprietary set of tools, templates, processes and software that were developed specifically for assisting utility personnel, not vendors, with the assessment, selection and implementation of CIS and other mission critical systems. 7. AAC will deliver CFCU Required Deliverables as outlined in Section II. Scope of Work. (A. Required Deliverables.) In support of or in addition to those deliverables, AAC will also provide: • Educational Workshop providing an overview of the CIS Industry and Vendor Analysis • The development of a City of Fort Collins Utilities specific Business/ Functional Requirements Catalog documenting current and long term CIS requirements including IVR and Customer self-service capabilities • Analysis of the current and Industry CIS solutions to bill broadband to utility customers • Systems Environment Review • Risk Register • Organizational Readiness Assessment • Development and Presentation of a Comprehensive CIS Strategy and recommendation that outlines the risks, costs/value and justification to either maintain or replace the current system(s). 3 AAC’s clients and their constituents should not bear the risk of a runaway or over budget project. With AAC’s fixed-fee pricing methodology, there is zero (0) risk doing business with AAC. Executive Summary 8. AAC will incorporate the findings of the assessment activities above into a comprehensive presentation report that provides clear options, actionable data and a recommended course of action. AAC will conduct or provide support for an on-site presentation of these findings to the City of Fort Collins Utilities’ stakeholders and oversight leadership or any government oversight committees as requested. 9. The fixed-fees for our services are outlined below. This means we do not ask you to make a milestone payment until you receive and approve a completed task or deliverable. • NavigateOne CIS Assessment Services: $85,000 • Pricing for the “optional” selection services (7. May assist with development of a scope of work for an RFP for either upgrading the current system or for a different CIS system) is included in the Appendix on page 69. 10. Nothing is “throw away” in a NavigateOne Assessment project. We know that our clients are entrusted to be the stewards of their constituents’ money. NavigateOne methodology is interconnected; thereby, ensuring that no work is wasted. Deliverables from the Assessment Project will be the foundation for the Selection Project, if the decision is made to replace, and will be utilized during the Implementation Phase; nothing is wasted, thus saving time, energy and money. 11. In Addition to Assessment services, we also provide Selection services, as well as, Client-side implementation leadership services driven by our NavigateOne methodology. The benefit to CFCU is that we can support you through the full CIS lifecycle including a successful migration or implementation depending on the decision that is best for CFCU. If CFCU decides to replace Banner, AAC’s NavigateOne Selection methodology is a proven process that will guide CFCU in selecting the best software solution and company. Back of Page Intentionally Left Blank for Pagination Purposes 5 B. Consultant Information and Firm Capability 1. Shannon Campbell, Business Development Manager, is the primary contact for the City of Fort Collins. Shannon’s Contact information is below and Exhibit A – Proposal Acknowledgment Form has been completed and signed by Edwin Crow, Managing Partner. The Proposal Acknowledgment Form is included in section “Exhibit A”. Primary Contact Managing Partner Shannon Campbell Edwin Crow Business Development Manager Managing Partner AAC Utility Partners AAC Utility Partners PMB 374, 4711 Forest Drive, Suite 3 PMB 374, 4711 Forest Drive, Suite 3 Columbia, SC 29206 Columbia, SC 29206 Phone – 803-397-8405 Phone – 803-736-9486 e-mail – scampbell@teamaac.com e-mail – ecrow@teamaac.com 2. AAC Utility Partners is a privately held limited liability company incorporated in 2005 and nationally headquartered in Columbia, South Carolina. As such, AAC has no parent company. Corporate Offices: Regional Offices: AAC Utility Partners, LLC Los Angeles, California PMB 374 Sarasota, Florida 4711 Forest Drive, Suite 3 Reno, Nevada Columbia, South Carolina 29206 6 ©2015 AAC Utility Partners We are a vendor independent consulting firm that is 100% focused on the utility industry. Our sole focus is assisting utilities with the assessment, selection and implementation of their CIS and other mission critical systems. In addition, we are not a systems integrator nor have we ever been part of a systems integration firm and we do not derive any revenue from any vendor or provide any services for a specific vendor’s solution. We have never been acquired or merged with another company and we have been doing business as AAC Utility Partners since 2005. As we are completely independent and unbiased, the City can have complete confidence in the recommendations, advice and services we provide. AAC is a financially stable, profitable and growing company with no significant debt and we have the necessary consultants to fully support CFCU with this assessment project. As RFP’s are public information, we have not included our audited financial statements. However, we believe it is only prudent for the City to validate a company’s financial strength so we are happy to share our audited financial statements in detail in a confidential setting. AAC will also make our auditors available, if necessary. 3. AAC Utility Partners is led by three managing partners that are responsible for the core areas of the company’s business. These areas include the Strategy, Assessment and Selection practice, Client-side Project Implementation practice and Company Operations. STRATEGY, ASSESSMENT AND SELECTION PRACTICE Steve Wenke is a utility industry veteran that has worked in the CIS and ERP software industry for more than 20 years. In addition, Steve has been providing consulting services, specifically to utilities, in the area of strategy, assessment and selection for CIS and other utility mission critical systems for over 17 years. Steve’s experience includes working with municipal, investor-owned, PUD, and cooperative utilities that provide electric, water, wastewater, gas and multi-services; his experience also includes working with regulators and governing bodies. Steve leads AAC’s Strategy, Assessment and Selection practice. CLIENT-SIDE PROJECT IMPLEMENTATION PRACTICE Rick Cutter has been in information technology since 1989 and has been implementing mission critical systems for more than 24 years. As a utility industry veteran, Rick has been responsible for the implementation of CIS systems since 1997. Rick leads the Client-side Implementation Leadership practice that provides our client (the utility) with experienced leadership in the areas of Project Management, Project Quality and Readiness (IV&V), Testing Leadership, Training Leadership, Organizational Change Management to manage the software vendor/ Systems integrator and to lead our client’s team in a successful implementation. Rick is also very involved in the Statement of Work development and negotiation. Information and Capability 7 COMPANY OPERATIONS Edwin Crow has been in the utilities and CIS software industry since 1996. With more than 19 years experience selling, negotiating and delivering mission-critical IT solutions to more than 100 utilities, Edwin has earned numerous awards for helping utilities successfully justify the purchase of new products and breakthrough technologies. Edwin leads AAC’s overall company operations. He is also very instrumental in assisting our clients in negotiating contractual agreements, with the software vendor or systems integrator, which protect our clients. The organizational chart on the following page provides a graphical representation of AAC Utility Partners. Information and Capability 8 ©2015 AAC Utility Partners Information and Capability 9 4. For more than ten years, AAC has guided electric, water, wastewater, stormwater, gas and multi-service utilities throughout North America and the Caribbean—ranging in size from 35,000 to 1.4 million customers—through successful CIS and other mission critical projects. This experience includes a significant breadth of mission critical systems, including CIS, WMS, FMIS, ERP, MDMS and other select systems. We have managed more than 60 successful projects with more than 61 percent of our clients being electric providers and 47 percent of our clients providing water service (many of our clients are multi-service utilities). We also bring a deep knowledge of municipal environments and the laws governing public agency procurements as approximately 70% of our engagements are with municipal governments or public agencies. Our experience also includes assisting numerous utilities with the assessment of their Banner CIS. Our experience assisting utilities that utilize Banner CIS is detailed further in question #5. To compliment AAC’s 10 years in the utilities consulting industry, AAC’s managing partners and the consultants in the Strategy/Assessment and Selection practice bring many more years of experience in the following areas: Specific Experience Total Years of Experience CIS and Mission Critical Systems Strategy/Assessment/Selection 20 Years - Steve Wenke CIS and Mission Critical Systems Strategy and Implementation 25 Years - Rick Cutter CIS Strategy, Sales and Negotiations 18 Years - Edwin Crow Electric Utility and IT Experience 30 Years - Wayne Turnbow CIS Industry - Software 18 Years - Tom Morgan Electric Utility, CIS Sales, Utilities Consulting 23 Years - Jim Anderson Information and Capability 10 ©2015 AAC Utility Partners In addition to our Strategy/Assessment and Selection practices, AAC provides client- specific implementation leadership services in areas such as Project Management, Project Quality and Readiness (IV&V), Testing Leadership, Automated Testing, Training Leadership, Organizational Change Management and select others. As utilities only replace their CIS and other mission critical systems every 10-20 years, AAC provides experienced leadership to ensure these high-risk projects are completed timely and within budget, and that the software vendor or system integrator delivered all of the contracted functionality for which our client’s paid. Our implementation practice has assisted clients that have implemented the majority of the tier-one and tier-two systems. A sampling of these systems include Advanced Utility Systems, Cayenta, Oracle, SAP, Systems & Software. These implementations include CIS, ERP, FIS, WMS and interfaced with many downstream systems. We share internally and leverage all of the knowledge that is learned from each of our client’s assessment, selection and implementation projects to make our next client’s project that much more successful. We are proud of the success our clients have achieved with their CIS implementation projects. As an example, two of our clients have been awarded CS Week’s CIS Expanding Excellence “Best CIS Implementation” awards in the last 5 years, and one of our clients has been awarded by The National Association of Counties (NACo) with a 2013 Achievement Award for its program titled “Enhancing Customer Service Through Technology, Flexibility, and Efficiency.” Information and Capability 11 5. The multitude of technology solutions available today can be daunting for utilities facing a major system upgrade or replacement. One technology solution does not fit all, and vendor/utility fit is of critical priority. AAC has a deep and current understanding of legacy and modern CIS solutions, their capabilities and how they are being used by utilities throughout North America. Through regular product review meetings, procurement processes and system implementation projects, AAC has first-hand experience with the leading software vendors and system integrators in the industry today. Our experience not only includes their systems, but their companies, leadership and projects. We use this extensive knowledge to ensure that our clients are empowered with the best information when assessing their legacy systems or choosing a new software vendor to fill their needs. Below, you will find a sampling of software vendors and system integrators that we have reviewed. Information and Capability 12 ©2015 AAC Utility Partners AAC has similar experience in working with software system integrators, such as the following: Having been engaged in more than 60 projects, AAC has extensive knowledge and has assisted utilities that have Banner CIS as well as other tier one and tier two CIS systems. Below is a sample of our project experience where we have performed comparable services with utilities that are similar to CFCU. AAC Utility CIS Client CIS System Services Provided City of Provo Banner Assessment Selection Golden State Water Company Orcom Assessment Selection Implementation Leadership Services City of Roseville Banner Assessment Selection Implementation Leadership Services City of Anaheim HTE Assessment Selection Implementation Leadership Services Bryan Texas Utilities Banner Assessment Selection Gainesville Regional Utilities Legacy Selection Implementation Leadership Services Information and Capability 13 AAC Utility CIS Client CIS System Services Provided Nashville Electric Service Legacy Assessment Northeast Client (Oregon) Banner Assessment Modesto Irrigation District Lodestar / Siebel Selection Implementation Leadership Services (starting) SCT / HANSEN BANNER CIS EXPERIENCE AAC Utility Partners has unique and extensive experience with CFCU Hansen/ Banner (Customer Suite) CIS application. Not only have we assisted a number of utilities with the assessment and replacement of Banner, we have a number of consultants on staff that served as key employees for SCT/Indus/Ventyx. This experience will provide additional value to CFCU as we know the system and have led successful assessments, selections and implementations from Banner to a new CIS. The following is additional detail highlighting a few of our Banner engagements: City of Roseville, CA – AAC just completed a CIS assessment and selection process with the City of Roseville that included the integration of their WMS/FMIS/Mobile and with other functionality to accommodate the integration to AMI/MDM systems. We are now providing Client-side Implementation Leadership services including Project Management, Project Quality and Readiness, Testing Leadership, and Training Leadership while using our iCue Enterprise Project Management Suite for their CIS implementation. City of Provo, UT – AAC just completed a CIS and ERP Assessment with the City of Provo and Provo made the decision to proceed with a Selection process for both the Banner CIS and the ERP solutions. AAC is currently leading Provo’s selection process. The City of Provo provides services to students of Brigham Young University. Bryan Texas Utilities – AAC provided Bryan Texas Utilities with CIS Assessment and Selection Services. Bryan Texas Utilities provides services to students of Texas A&M. West Coast Banner Client – AAC is also working with another Banner client located in Oregon that serves electric and water customers. We are currently assisting them with the assessment of their system to determine if they should upgrade or replace. This utility provides services to students of a major university. 6. Steve Wenke, Managing Partner, will be the Engagement Manager and will have ultimate responsibility for this project. Other AAC consultants are provided in the table on the following page. Information and Capability 14 ©2015 AAC Utility Partners Name Role Steve Wenke Managing Partner/Engagement Manager Tom Morgan Senior Consultant / Assessment Rick Cutter Managing Partner / Organizational Readiness Wayne Turnbow Senior Consultant / IT Jim Anderson Senior Consultant/ Assessment Resumes are provided in section G. Assigned Personnel. 7,8,9 - Due to the limitation of pages, 7, 8, and 9 are included together AAC is very proud of our clients and the success they have achieved with their projects. Included below is information requested in questions 7, 8, and 9. We encourage you to contact our references to better understand our company, consultants, NavigateOne methodology, and how we assisted our clients in achieving their goals. Te below table provides a sampling of AAC’s clients and the services we provided them. Client Assessment Selection Implementation Public Private / IOU Anaheim Public Utilities City of Roseville Golden State Water Company Modesto Irrigation District Nashville Electric Service Puerto Rico Electric Power Authority DC Water Chesterfield County Utilities (VA) Bermuda Electric Light Company South Jersey Gas Sempra Global Cowlitz PUD (WA) Information and Capability 15 Client Assessment Selection Implementation Public Private / IOU Sacramento Municipal Utilities District (SMUD) Bryan, Texas Emera Maine Otter Tail Power Company City of West Palm Beach, FL City of Chesapeake, VA Birmingham Water Works Mobile Gas, A Sempra Energy Co. City of Oceanside Gainesville Regional Utilities AAC is providing the following utilities as references. We worked with each of these references within the last 5 years and provided services similar to the services being requested by CFCU. City of Provo / Provo Power Modesto Irrigation District The City of Roseville Nashville Electric Otter Tail Power City of Oceanside Due to page limitations, Please see section G. Assigned Personnel for the full contact information and a project summary for each reference. While we cannot disclose our client’s specific pricing, we do encourage you to speak with each of our references to discuss their project specifics and outcome as well as any budget information. 10. As AAC is 100% dedicated to the utilities industry, our sole focus is providing Strategy/Assessment, Selection and Client-side implementation for CIS and other mission critical systems. As this is our sole focus, we will not be sub-contracting any work for this project. Information and Capability 16 ©2015 AAC Utility Partners 11. AAC works only for our clients (utilities), not the CIS vendors or systems integrators. To protect our clients from any appearance of bias or impropriety, AAC does not and has never generated any revenue from a software company or systems integration firm. We strongly believe that AAC is the only “truly independent” CIS consultant in the industry. We have never been a part of a systems integration firm that specializes in implementing a specific vendor solution, we don’t provide hosting or support services for vendors, we have never allowed vendors to advertise on our company’s website, nor do we provide any system implementation services for any of the software vendors. Most, if not all, of the other industry consultants cannot make this claim. There are consultant companies in the industry that have been a division of a systems integration firm that implements specific software solutions, that employ resources that perform implementation services for specific software companies and generate revenue from software vendors. AAC is not one of these. For the City of Fort Collins Utilities to know that you can fully trust your selected partner in the area of vendor independence, we suggest you ask any prospective partner 5 questions clients want answered. 1. Have you ever provided consulting or assessment services to a vendor, on a billable basis, regarding their software systems or implementation approach? 2. Have you ever been a division of a company or systems integration firm that implements specific software solutions? 3. Have you ever hired a software company or systems integrator resources to provide services to one of your customers? 4. Have you ever generated any revenue from a software company or systems integrator? 5. Are you willing to provide a certified statement from your accounting firm that you have never generated any revenue from a software company or systems integrator? AAC’s answers to Questions 1-4 are a resounding NO. We will be glad to provide copies of our audited financial statements and a note from our accounting firm attesting that we have never generated any revenue from these sources, in addition to showing that AAC is a financially sound firm. Information and Capability 17 C. Scope of Services THE NAVIGATEONE™ DIFFERENCE AAC’s Assessment, Selection and Implementation services are built on our proprietary foundational project methodology, NavigateOne™, which includes processes, tools, templates and software, completely scalable and customizable to the unique needs of utility projects. NavigateOne is designed to help utilities achieve project success not only in the assessment or selection of a new mission critical system but also throughout the implementation (If that is the Client approved direction). Key to our approach is the fact that we spend unparalleled time on-site working side-by-side with our clients’ project teams. You don’t just get a template to fill out, as with some consultants’ methodologies. You get in-depth, engaged and experienced consulting every step of the way. We make this commitment to quality support because our clients rely so heavily on our experience and expertise. The right methodology. The right tools. The right people. 18 ©2015 AAC Utility Partners Scope of Services CLIENT CONTROL Before making an undocumented decision to replace their CIS and other mission critical systems, many utilities today are taking a judicious approach and first assessing their systems. This approach allows for detailed and actionable data to be gathered in order to develop an informed and defendable decision. At AAC, we believe this is a wise strategy, as public agencies desire to be good stewards of their constituent’s resources. A FOCUS ON YOUR BUSINESS AAC’s Assessment and Selection Services are based in the conviction that mission critical software projects should be driven by business needs. Our NavigateOne methodology captures these business drivers, correlates them to needed systems capabilities and then catalogs the two into a business-focused requirements document that are then used to in the analysis to determine the best strategy forward for our clients (upgrade or replace). If the decision is made to replace, they are then used to drive the selection and implementation. A FOCUS ON THE PROJECT, NOT JUST THE SOFTWARE Furthermore, we judge the success of a project not simply by a software upgrade or replacement but by how well the project delivers value to our clients’ organizations in the months and years after Go-Live. We understand that the details of a CIS system assessment and selection set the stage for success throughout the implementation and launch. That’s why we place the highest importance on careful analysis and strategic documentation, which is the foundation for the production of a client (utility) focused project Statement of Work (SOW) and contract with the chosen vendor. CIS ASSESSMENT PROCESS PROJECT STARTUP This phase of the project is comprised of tasks and activities that focus on confirming and documenting the City of Fort Collins Utilities’ (CFCU) major business drivers, goals and objectives for the project. Typical drivers, for example, include business limitations that result from: customer demands, regulatory changes, functionality limitations, current vendor viability, technology obsolescence, inflexible software and cost of operations and maintenance. A clearly detailed project charter and work plan will be established, and AAC will collaborate with CFCU project leadership to finalize and document key project 19 Scope of Services activities, a project schedule, roles, milestones and deliverables—essentially the “who,” “what,” “when” and “how” of your strategic planning project. The project planning and startup phase is important for laying a foundation for success, and includes the following activities: • Establishment of the Project Charter • On-site meetings, interviews and planning discussions • Identify and define CFCU drivers for the project • Establish joint roles and responsibilities CFCU executives and staff • Meeting facilities and other logistical support identified and prepared • Project kick-off meeting • AAC provides orientation and training that provide valuable context for assessment (analysis) activities • Project strategy • Communication plan • Finalization of Project Plan in Microsoft Project KICKOFF AAC will conduct a project kick-off to formally start the project. During this formal session, in order to communicate the importance of the project work, client executives and project sponsors will be required to participate. In this meeting, AAC will introduce our NavigateOne tools to the team. This tool set will serve as a common thread driving project activities, schedules, measurement and more throughout the lifecycle of the project. CIS INDUSTRY EDUCATIONAL WORKSHOPS Because the most effective decisions are made when our clients are best informed, AAC leads educational workshops early in the project that will provide the team with valuable industry context and project information. This early investment makes the assessment activities more valuable as participants are given important decision- making information about current functionality and technology trends among utilities, innovations being developed by vendors, services offered by integrators, costs and a clear understanding of the work ahead. AAC will lead the City of Fort Collins Utilities’ project team in a CIS Industry Workshop that covers information critical to the assessment process, such as: • CIS Market Overview • Current Industry Trends This workshop will provide CFCU with an understanding of the software vendor/ system integrator companies, functionality currently available in the market, trade- offs among the various solutions and the operational benefits and risks of each option. 20 ©2015 AAC Utility Partners Scope of Services The result of this workshop will be an informed, involved project team prepared to make confident strategic decisions moving forward. KEY ACTIVITIES RECAP • Establish Project Charter • On-site meetings, interviews and discussions • Establish joint roles and responsibilities • Analysis of project options • Project kick-off meeting • Project Plan and Schedule • CIS Industry Workshop NEEDS ASSESSMENT While many consulting firms rely on a “template” approach to research that places the bulk of the work on the client, AAC customizes our research per our client’s actual needs and assists your team significantly in the work effort. Our dynamic research and evaluation tools reflect today’s utility needs as well as the capabilities of current market solutions. AAC will work with CFCU to review the business needs and technical requirements and to identify how the organization will be impacted by a system upgrade or the implementation of a new CIS. Our process also incorporates enhanced focus on information security throughout the system procurement, implementation and life. This focus area begins to take shape in the needs assessment and requirements analysis. Since there are new, government imposed, security requirements and the increasingly interconnected world creates new risks each day, we believe this work is necessary to a successful acquisition and deployment. By its very nature a CIS houses personally identifiable information (PII), which is always considered sensitive. Our process addresses the need to protect this information appropriately. Our process allows for end-user and executive participation throughout the development of the requirements phase to assure total buy-in and acceptance from the City of Fort Collins Utilities’ staff. 21 Scope of Services SYSTEMS ENVIRONMENT REVIEW Through a series of meetings and information gathering in conjunction with CFCU staff, AAC will review the City of Fort Collins Utilities’ current technology environment, including: • All major systems • Sub-systems • Network Architecture • Hardware • Interfaces and connectivity • Current business uses • Any third-party components working in conjunction AAC will review and document at a high level the connections between these technology resources and major business activities that utilize them as well as appropriate non-system factors such as support roles and major service protocols that may affect or be affected by any major system change. From this analysis will emerge a high-level picture of the City of Fort Collins Utilities’ information systems and technology environment, which will give context for the deeper functional/technical assessment activities that follow. BUSINESS, FUNCTIONAL & TECHNICAL WORK SESSIONS Having laid a foundation for the project by developing a comprehensive picture of the City of Fort Collins Utilities’ systems environment, AAC will now lead CFCU staff in a series of work sessions focused on business, functional and technical requirements. We will begin the exploratory work sessions—utilizing AAC’s Business Catalog and other NavigateOne documentation tools—with a focus on assessing functionality, technical needs and scalability to meet future needs, support issues and system architecture. Through on-site, face-to-face meetings with key CFCU staff, AAC will carefully document the City of Fort Collins Utilities’ business, functional, technical, and security requirements for the CIS system. This will include broadband, IVR, electronic billing, as well as the ability to pay by phone and/or on-line. Consistent with the methodology, AAC’s view is that security is a business enabler that should be considered from the beginning of the process through systems implementation. 22 ©2015 AAC Utility Partners Scope of Services Business Catalog The primary tool used in this phase will be AAC’s Business Catalog, a database of 3,500-plus CIS-focused business requirements, enabling our consultants to fully define and prioritize the City of Fort Collins Utilities’ unique requirements (both current and future). This document will: • Clearly connect business needs with functional requirements • Provide a context for mapping these needs to systemic capabilities • Help identify gaps in functionality between current system capabilities and capabilities available in the industry (This exercise will identify processes that will require special consideration for requirements that do not fit into an out- of-the-box solution and require alternative methods or consideration). • Prioritization of requirements • Address functional requirements specific to utility processes • Identify and define current and future functionality needs This “drill-down” approach is an intensive, fact-to-face exploration with key utility staff focused on identifying the requirements that the software solution would need to provide in order to meet the City of Fort Collins’s current and future CIS needs. The result of these work sessions will be: • An exhaustive City of Fort Collins Utilities’ -specific business requirements catalog that will serve as the foundation of the assessment. This document will also be used to support an upgrade or if the decision is made to replace, the selection and implementation phases for the City of Fort Collins Utilities’ project, including RFP, demonstration scripts, vendor evaluation and scoring, Statement of Work and contracts, test case development and functionality confirmation. The following are some of the main functional and technical areas explored through this comprehensive research process: CIS-Related Areas • Customer Service • Service Orders • Inventory • Finance • Customer Self Service • Credit and Collections • Billing and Rates • Cashiering • Component Inventory and Usage • System Architecture (Navigation, Security, Configuration, 23 Scope of Services Data Structures, etc.) • Reporting Dashboards, and Business Intelligence • Social Media, if applicable • Peripheral interfaces (MDMS, AMI, MWM, others) • Interface review (This will include the assessment of the capability of current and other potential systems for integrating with IVR phone systems, electronic billing systems, and other systems. This includes the ability to pay through the phone and/or on-line. • Broadband – Ability of CIS system (existing system and possible other new system) to bill broadband service to utility customers. Business Issues • The City of Fort Collins Utilities’ strategic goals • Key business drivers (KPI) • Executive management • Competing initiatives • Regulatory / Mandates / Compliance issues • Financials • Data quality Technology • Additional technology initiatives • Emerging technology trends (Internet, IVR, Mobile apps, etc.) • Reporting User interface functionality (API, ESB, SOA, etc.) • IT integration and support • Hardware and related resources • Web self-services AAC will also assist in determining whether other sub-systems may need to be investigated. These items may include: • Document Management / Archiving • Cashiering Software & Services • Hardware, Software & Networking Equipment • Outsourcing of Components RISK REGISTER As a component of the Needs Assessment, AAC will identify risks that should be considered in the upgrade or replacement of a new CIS. AAC will document the risks in the Risk Register. These risks will be documented and presented to management so that mitigation strategies can be developed and planned. 24 ©2015 AAC Utility Partners Scope of Services A sample of areas that will be considered include: • Organizational commitment • Staffing levels • Technology • Risk to future initiatives • Risk of project failure • Costs • Impact to customer satisfaction ORGANIZATIONAL READINESS ASSESSMENT In preparation for any CIS project, the utility client-side of the project staffing is crucial to the project’s success. As part of AAC’s NavigateOne methodology, AAC will work with the City of Fort Collins Utilities to conduct an assessment regarding the staffing needs for a CIS upgrade or replacement. This assessment is called the Organizational Readiness Assessment (ORA). Many utility organizations make the mistake of attempting to staff the project by utilizing part-time employees, not assigning their best resources, or simply making the assumption that many people can wear multiple hats. The ORA will provide CFCU a detailed and easy to understand analysis of their staffing needs as well as a staffing plan for a migration or replacement project. This staffing plan details each role and the full-time equivalent required to fulfill that role on the project. In addition, the role definition portion of the analysis discusses the skills needed by each resource to successfully fulfill that role. The role definitions identify and describe the functional and technical roles needed for the project. This will also provide CFCU with to assist with staffing planning and budgeting. This analysis is typically used by utilities as a key justification for the staffing needs of the project. KEY ACTIVITIES RECAP • Systems Environment Review • Business/Functional/Technical Work Sessions • Completed CFCU Specific Business Catalog • Risk Register • Organizational Readiness Assessment 25 Scope of Services REPORT & RECOMMENDATIONS AAC will incorporate the findings of the assessment research activities into a comprehensive presentation report and project roadmap that fully represents the scope of the project and provides clear insights into the options and the recommended course of action. The Report and Recommendations document will include all of CFCU Required Deliverables as identified in II. Scope of Work (A. Required Deliverables): • A comparison of current system functionality with that available in the market (Fit-Gap Analysis) • Upgrade versus Replace Analysis - Evaluation of the current billing system (upgrade) versus the purchase and implementation of a new CIS including functional comparison, resources, costs, risks, cost/benefit and value, etc.) • Recommendation regarding the ability of the existing billing system as well as possible new billing systems to bill broadband service to utility customers • Assessment of the capability of current and other potential systems for integrating with IVR phone systems, electronic billing systems, and other systems, including the ability to pay through the phone and/or on-line • Cost Analysis – Evaluation of cost and value of upgrade versus purchasing and implementation of a new CIS; to also include 7 year estimated costs AAC will work closely with the City of Fort Collins Utilities’ team to confirm the final report and recommendations to be submitted. AAC will conduct or provide support for an on-site presentation of these findings to the City of Fort Collins Utilities’ management and oversight leadership or any government oversight committees as requested. AAC will also deliver the Final Recommendations Report. DELIVERABLES • Final Report & Recommendations Document 26 ©2015 AAC Utility Partners Scope of Services KEY ACTIVITIES RECAP • Provide the requested information as outlined in the RFP Section II. Scope of Work (A. Required Deliverables) • Preparation of Final Report & Recommendations document • Review sessions with CFCU regarding the Report and Recommendations document • Finalization of Report & Recommendations document • Presentation of the report to CFCU management • Delivery of or support for presentation of findings to the City of Fort Collins Utilities’ stakeholders or and governing oversight entities (of requested) 2. AAC’s Project Manager will manage the overall project leading the City of Fort Collins Utilities resources as well as the AAC resources. The project will be managed using AAC’s proprietary methodology, NavigateOne, as defined above in Question #1. A graphical description of the project structure is as follows: 27 Scope of Services 3. As indicated in our methodology, AAC’s approach is not built on a template approach to consulting, we believe that on-site time and face-to-face consulting is critical. AAC will spend considerable time on-site meeting with the necessary resources and groups to educate the organization and gather the needed information to develop actionable data for the City of Fort Collins Utilities to make decisions. AAC will utilize a number of communication methods including on-site meetings, one-on-one meetings, e-mail, phone, formal presentations, as well as other forms of communication. 4. In addition to Question #3, AAC will interact with the City through numerous interactions. These interactions will include meetings with the executive sponsor and management to validate the project expectations, educational workshops, business process and functional analysis sessions, technology discussions, discussions regarding possible risks, Organizational analysis and resourcing needs, executive presentations as well as others. 5. A CIS assessment cannot be accomplished in a vacuum and will require participation of key resources from the City to work with the AAC Project Team. Examples of the necessary resources are outlined in the table below. These resources will not need to be committed full-time to the project but will need to be available when required; this will be fully defined during project planning and documented in the Project Charter. AAC works with our clients to ensure meetings are planned in advance to ensure the appropriate resources are available when needed and to minimize time away from their current roles. Certain roles will require varying time commitments throughout the project (i.e Executive sponsor – minimal, Project Lead – considerable). CFCU Resource Needs: • Executive Sponsor • Project Lead • Functional Lead (i.e. Customer Service Specialist) • IT Lead (i.e. – Information Technology Specialist) • Subject Matter Experts • Customer Service • Credit and Collections • Rates – Electric and Water • Electric Operations • Water Operations • Information Technology • Finance and Accounting • Field Services • Other Subject Matter Experts as necessary 6. Not required per CFCU answers to the RFP questions. 28 ©2015 AAC Utility Partners Scope of Services 7. AAC utilizes a number of proprietary NavigateOne tools and accelerators to lead the assessment of CIS and other mission critical systems. These tools include our Project Charter and Strategy documents, the NavigateOne Business catalog, CIS vendor database that includes functional capabilities and cost data, iCue Enterprise Project Management Suite and others. We also use MS Project as the foundation for project planning. As our NavigateOne tools and work products are proprietary and our intellectual capital, we are not able to provide the specific documents or applications. However, we have provided a description and screenshots of some sample tools and work product. PROJECT CHARTER AND STRATEGY The Project Charter and Strategy Document will include descriptions of the major project components, establishment of the steering committee board, identified project resources, assumptions, risks and other information pertinent to the engagement. The strategy section of the document will describe the approach to the project and explain why the team established this strategy. We have included an example of a Project Charter and Strategy Table of Contents on the following page to provide an understanding of the planning, documentation, and governance of our projects. Back of Page Intentionally Left Blank for Pagination Purposes 30 D. Availability Using the timeline presented in the Request for Proposal and the answers to proposer questions, AAC Utility Partners is making the assumption based on the interview dates of June 15-17, 2015 that the City will make a selection by July 3, 2015 and will enter into negotiations with the selected vendor to be finalized by July 17 for an August 3, 2015 project start date. Based on an August 3, 2015 start date and the assumption of availability of CFCU resources, AAC will be able to meet the project completion date of December 31, 2015. Back of Page Intentionally Left Blank for Pagination Purposes 32 E. Sustainability / TBL Methodology Promoting socially responsible, sustainable economic growth at AAC Utility Partners is a primary focus of our corporate strategy. Having fun participating in it is a result. At AAC we “Work to Live”. What do we mean when we say “Work to Live”? We work not only for our own individual benefit, but also for our families, friends and neighbors. Each member of TeamAAC works in order to live a life that makes a difference to everyone with whom we touch. Our primary vision is to promote a work environment that delivers profitability for shareholders and employees as well as to the communities where each member of TeamAAC lives and works. Profitability comes not just in the form of income, but in the form of reputation and pride of employees and clients being a part of something transformative. Being a member of TeamAAC means being responsible for employee welfare, client delivery, social character, environmental character and company profit. Working only for a paycheck is simply not enough. Everything we do is guided by our vision of “Work to Live.” This is our way of saying that as a member of AAC we are each a global citizen. When we do anything, whether at work or play, it is incumbent upon us to recognize that we have a responsibility to think about the people, the planet and profit when considering the ramification of our decisions. Some of the ways TeamAAC is “Working to Live” are: Navigator Program: Competitive program that awards future college students. Reading is fun: A program that AAC has supported since 2005. This program was created by an AAC customer to promote reading in financially challenged areas of the city. Adopt a classroom: TeamAAC has adopted and maintained support of a class in a primarily “at risk” community for the past five years. Boy Scouts of America: TeamAAC encourages employees and clients to support these programs in their specific communities. AAC corporate supports scouting directly in client areas. 33 ©2015 AAC Utility Partners Sustainability Bring a bottle – Save a Landfill: AAC promotes the use of reusable water bottles on client projects through example and corporate challenges. AAC has also installed filtered water stations for employees to fill their own bottles in lieu of filling our recycling bins with excess plastic bottles. Stewardship: AAC has reduced the per-employee power consumption every year since 2007 by: • Employee controlled power saving climate controls • Moving development to the cloud servers • Back up recovery – cloud servers • Financial applications – cloud servers • Natural lighting office environments Special note to Fort Collins: We appreciate that you are taking the time to understand a little more about our culture at AAC. By getting to know us, you will see that we have delivered the most effective projects in the industry by leveraging our transformative methodologies inside of our global corporate philosophy. It is fun when we are able to go a few steps further in transforming our marketplace whilst transforming attitudes and minds towards delivering a world for the generations yet to come. It’s the little things that we do that change our world one person at a time. 34 F. Cost and Work Hours AAC Utility Partners understands the importance our clients place on fiscal responsibility. The financial and political fallout of a poorly planned, runaway project are unacceptable outcomes. For this reason, we offer straightforward, fixed, and milestone-based pricing that diminishes financial risk, allowing you to move forward with confidence and plan for every payment. This arrangement also guarantees that services are delivered, and the City signs-off on and approves the deliverables, before they are ever invoiced. As evidenced in our proposal, AAC has a proven methodology that has been validated by many successful projects at utilities similar to the City of Fort Collins Utilities, for the specific services requested in the City’s RFP. Our methodology includes specific deliverables that have been defined in section C, Scope of Services. AAC has outlined our pricing that encompasses all of the City’s requirements and more based on milestone payments for specific deliverables. 35 ©2015 AAC Utility Partners Cost and Work Hours Milestone Deliverable Payment 1 Project Charter & Strategy Document $15,000 2 Project Plan and CIS Industry Educational Workshop $10,000 3 CFCU-Specific Business Requirements Catalog The CFCU-Specific Business Requirements Catalog will include the collection and prioritization of CFCU’s Utility Billing system requirements as well as other information. $15,000 4 Broadband Recommendation $10,000 5 Risk Register $5,000 6 Organizational Readiness Assessment $15,000 7 Final Report and Recommendation The Final Report and Recommendation will include the following deliverables: 1. Evaluation of cost and value of upgrades vs. purchasing and implementation of a new CIS. 2. Written evaluation of current billing system and implications of a possible upgrade to most current version as well as possibility of moving to another comparable billing system based on system requirements. 3. Assessment of capability of current and other potential systems for integrating with IVR phone systems, electronic billing including the ability to pay through the phone and/or on-line. $15,000 Total CIS Assessment Costs $85,000 36 Cost and Work Hours TRAVEL AND LIVING EXPENSES Travel and Living costs are not included in the Total CIS Assessment Costs and will be billed as incurred per Exhibit C – Fort Collins Expense Guidelines. AAC will deliver the outlined scope of work for the above fixed-fee. There will not be any additional charges to deliver the agreed upon scope of work. AAC does not have a separate rate for additional meetings as all of our costs are incorporated into our fixed-fee. Many utilities have had the embarrassment of a challenged or failed project due to change controls that have increased cost well above original budgets. AAC has delivered all of our Assessment and Selection projects using this fixed, milestone based pricing methodology. Our clients have been very pleased that they know the cost of the project, are able to plan for every payment, and sign-off on and approve the deliverables, before they are ever invoiced. They will be glad to confirm their satisfaction. AAC’s methodology includes all work necessary to deliver the agreed upon scope of work at the contracted price... No surprises. Back of Page Intentionally Left Blank for Pagination Purposes 38 G. Assigned Personnel 1. REFERENCES On the following pages you will find our references for The City of Provo / Provo Power, The City of Roseville, Modesto Irrigation District, The City of Oceanside, Nashville Electric Service, and Otter Tail Power. 39 Steve Wenke Managing Partner SUMMARY Steve brings a rich history of information systems (IS) and consulting experience to AAC. He has over 20 years of experience in the CIS/ERP industry and has served more than 15 years in the CIS/ERP consultant. His deep knowledge of mission critical systems (CIS, FIS, WMS, ERP) and utility operations bring a level of expertise and confidence to every AAC project. As senior partner over consulting services, he has successfully streamlined vendor selection activities and enhanced project management services provided to all of AAC’s varied clients. Steve began his career at United Parcel Service, where he led an internal strategic change project team responsible for the implementation of UPS’s Central Florida data information archiving devices (DIAD), as well as a major organizational redesign initiative for local IS center operations. From UPS, Steve moved to SunGard, formerly H.T.E., an ERP provider serving the city and municipal industry, where he spearheaded implementations and project management as well as obtaining needs analyses from potential clients and demonstrating H.T.E’s products. Taking his knowledge of successful implementations he then refined his skills and knowledge worked for a utility consulting firm. This provided an opportunity to create a new type of customer-centric consulting practice where Steve has the ability to develop methodologies to help utilities using AAC’s NavigateOne processes. Steve has worked with both municipal and investor owned utilities across North America and the Caribbean and has been responsible in the areas of strategy, assessment, and software acquisition. This experience includes working with multiple utilities with the Banner CIS. Steve is a graduate of the University of Central Florida with a Bachelor of Science in Business Management. 40 ©2015 AAC Utility Partners Tom Morgan Senior Consultant SUMMARY Tom’s experience spans more than 18 years working in the CIS software industry. He is an experienced professional with a proven track record in account management, program management, customer engagement, CIS/ERP projects, and client satisfaction. He has experience serving municipal and investor-owned energy and utility companies, as well as university and government programs, providing senior leadership through all cycles of business, including transformational changes such as acquisitions and expansions. Having worked with numerous municipal and investor-owned utilities in various capacities, Tom has developed a comprehensive knowledge of CIS and ERP capabilities and requirements, utility business processes, information technology, CIS/ERP implementation projects, and a deep understanding of the utilities and CIS industry. Tom is able to leverage this information to guide our clients through CIS/ERP assessment and selection processes and brings a unique perspective and approach. Through his CIS software vendor tenure, Tom’s experience includes responding to utilities CIS and ERP Request for Proposals. Through this, Tom has a strong understanding of the RFP process and how software vendors present their solutions and implementation methodology and brings a valuable perspective regarding the assessment of vendor software proposals. Tom completed his undergraduate work at the University of Washington with a Bachelor of Arts in English and completed his Master of Science in Computer Science Education from Oregon State University. 41 Wayne Turnbow Senior Consultant SUMMARY With more than 30 years of utility and IT experience, he is an very knowledgeable in utility operations and managing wide-reaching IT projects, making him an invaluable resource on every project for which he participates. Through these various projects, he has gained extensive experience with strategic planning for mission critical business systems, IT Governance processes, application development, as well as data center and network operations. He has leveraged these skills into an adjunct professorship, desiring to teach others in the areas of database management and business computer systems. He is an excellent communicator, recognized for constantly sharing knowledge and mentoring peers to increase team productivity and value. These skills have led to a proficiency for cultivating environments of continuous improvement and reevaluation, as well as establishing best practices and achieving client goals and objectives throughout the whole of the IT project. Wayne completed both his undergraduate and graduate work at California State University, graduating with a Bachelor of Administration in Business Administration, and a Master of Business Administration in Computer Information Systems. 42 ©2015 AAC Utility Partners Rick Cutter, PMP Managing Partner SUMMARY Rick has more than 25 years experience in project management, software development and application implementation with firms such as Computer Science Corporation (CSC), Cambar Software, Systems and Computer Technology (SCT) and Indus International, Inc. He served a tenure with SCT Utilities as senior project manager, where he immediately focused on enhancing software implementation methodology to allow for faster installations for de-regulating utility companies. By utilizing his new methodology, a consultant for a new energy company in the Northeastern United States was able to achieve a successful implementation in a record- setting four months. While serving as manager of implementation support for SCT Utilities, Rick headed the team responsible for educating prospective clients on large- scale implementation methodology and also worked with clients to develop individualized implementation strategies that fit their unique business needs. At AAC, Rick draws from this acumen for all things implementation to develop highly effective and comprehensive “Statements of Work” (SOW) for contractual agreements, outsource “Service Level Agreements” (SLA) and manage implementation projects for utilities. By leveraging his experience in these primary areas as well as his know-how as a Project Management Professional (PMP), he has been able to dramatically mitigate the risk associated with the major IT projects of AAC’s clients. Rick has worked with more than 100 municipal and investor owned utilities in his career in the areas of strategy, resource planning, Organizational readiness, Statement of Work development, and project management. Rick is a graduate of Francis Marion University and Harvard Business School Executive Education. 43 Jim Anderson Manager, Technology Assessment & Selection Services SUMMARY AAC Manager of Technology Assessment & Selection Services, Jim Anderson, has more than 23 years experience with large-scale utility information systems, wide-reaching IT projects, project management, software development, and application implementation. At innovative NV Energy and MidAmerican Energy Company (Berkshire Hathaway), his roles were dynamic and always forward-thinking. Jim leveraged programming talents to implement advanced metering, a complex rating engine, and an innovative database platform that earned him a national honor from the Electric Power Research Institute (EPRI). In an effort to competitively position both NV Energy and MidAmerican Energy in deregulated markets, Jim was exposed to deregulation in the United States, Canada, and the United Kingdom. He has received many national honors in advanced billing and metering, a patent application for deregulated billing, and he has coauthored a chapter on CIS System Replacement for the Government Financial Officers Association (GFOA). His specialization in the more technical aspects of billing and customer care include technology, metering, advanced billing techniques and procedures, a focus on local and state regulatory requirements, AMI and MDM. Jim brings this rich leadership and technology experience to the projects of AAC clients, leveraging his experience on the “inside” of a utility and his deep knowledge utility operations and procedures. Jim has worked with numerous municipal and investor owned utilities in the areas of Strategy, Assessment and Software Acquisition. Jim is a graduate of the University of Nevada, Las Vegas. Back of Page Intentionally Left Blank for Pagination Purposes 45 H. Additional Information THIS IS HOW YOU DETERMINE INDEPENDENCE AAC does not have any concerns with our ability to maintain complete objectivity in all of the advice or recommendations we provide. As mentioned, the founders of AAC made the decision when starting the company not to generate any revenue or align with a software company or systems integrator in any way. The purpose of this decision was to ensure that our clients were never in a situation where they had to defend even a hint of impropriety to their constituents, Council or Board of Directors. There are consultant companies in the industry that have been a division of a systems integration firm that implements specific software solutions, that employ resources that perform implementation services for specific software companies and generate revenue from software vendors. AAC is not one of these. For the City of Fort Collins Utilities to know that you can fully trust your selected partner in the area of vendor independence, we suggest you ask any prospective partner 5 questions clients want answered. 1. Have you ever been a division of a systems integration firm that implements specific software solutions? 2. Does your company or shareholders have financial arrangement in a company that implements specific software solutions? 3. Have you ever performed any implementation services for a specific software vendor? 4. Have you ever generated any revenue from a software company or systems integrator? 5. Are you willing to provide a certified statement from your accounting firm that you have never generated any revenue from a software company or systems integrator? Back of Page Intentionally Left Blank for Pagination Purposes 47 Appendix AAC NAVIGATEONE SELECTION METHODOLOGY If CFCU makes the decision to go to market to upgrade or replace the Banner CIS, AAC will utilize its NavigateOne Selection methodology to lead CFCU through the selection process. As indicated in the RFP response, nothing in an AAC Assessment or Selection process is ever wasted; the work product from one process is leveraged to support the next phase, thus saving time, energy and money. AAC would utilize the work products from the Assessment phase as the foundation for the Selection process. The overview of AAC’s Selection methodology is outlined below. BUILDING A PRECISION RFP & SCOPE OF WORK Upon completion of the CIS Assessment, AAC will develop a CFCU-specific RFP that effectively and accurately expresses CFCU’s functional and technical needs to vendors, enabling them to provide tailored and complete responses. Our comprehensive RFP template has been developed specifically for utilities and will be customized to express specific details of CFCU’s functional and technical areas in a concise, logical framework of content. The functional and technical requirements documented in the CIS Assessment will be incorporated into the RFP, ensuring that proposing vendors respond to the specific needs of CFCU. The RFP template will also identify interfaces and hardware needs that CFCU may use to develop and pursue identified business strategies. During the RFP development period, AAC will conduct on-site workshops with CFCU’s project team to tailor and augment our tested RFP base format to include areas such as: instructions on how to respond, specific CFCU procurement guidelines, legal requirements and forms, functional matrices, technical requirements, business objectives, implementation methodology, and pricing information. 48 ©2015 AAC Utility Partners Appendix AAC will coordinate the release of the RFP with the appropriate CFCU department and in accordance with their requirements and procedures. AAC will market the RFP to vendors in the industry, based on our industry knowledge, experience, and input from CFCU that we feel are qualified candidates to provide a solution for CFCU’s needs/requirements. SCORING CRITERIA AAC and CFCU will develop together a detailed evaluation framework, timeline and scoring matrices for evaluation of CIS vendors’ proposals. This process will take into account CFCU’s current and long-term needs, which could include but not be limited to the following areas: • Procurement Requirements • Functional Requirements • Technical Requirements • Total Solution Costs • Demonstration Results • Support Requirements • Vendor Demographics • Vendor Viability Key Activities • Develop RFP with CFCU-specific requirements • Tailor NavigateOne demonstration framework and scripts to CFCU’s requirements • Establish detailed scoring criteria • Market and distribute RFP to potential vendors • Coordinate all RFP activities VENDOR EVALUATION & DEMOS RFP SUPPORT Following the release of the RFP, AAC will assist CFCU in supporting vendor inquiries regarding its contents. If appropriate, based on time constraints and CFCU’s procurement rules, AAC strongly encourages individualized vendor RFP discovery sessions. These sessions are intended to provide CIS vendors face-to-face time with CFCU to ask detailed questions related to the RFP without the fear of giving away response strategies to competitors. While this method does require more time and effort from the project team beyond a normal “bidders conference,” we believe that the benefits to CFCU are much greater, ensuring that vendors are able to provide more specific and tailored responses that are in sync with CFCU’s specific needs. 49 Appendix Key Activities • Support / research vendor RFP questions • Coordinate vendor RFP discovery sessions EVALUATION OF VENDOR RESPONSES AND CREATING A SHORT LIST Following the close of the RFP response period, CFCU’s project team and AAC will work together to evaluate and identify the three to four CIS vendors that best meet CFCU-approved selection criteria as defined in the RFP. AAC consultants have decades of industry experience in CIS selection and implementation projects of various complexities—critical for effectively validating vendor responses. In addition, CFCU will have the benefit of AAC’s NavigateOne vendor evaluation accelerators for streamlining reference checks and additional due-diligence activities. We understand the importance of validating a selection to stakeholders, which is why AAC’s unique selection process requires extensive documentation throughout the entire project. We will, therefore, conduct the necessary on-site workshops as needed during the procurement phase to document and present the project team’s findings to members of CFCU’s management or other high-level stakeholders. Factors AAC considers in scoring and selecting a vendor • RFP scoring with Functional Requirements Matrix • Vendor experience on similar projects • Demonstration of software’s ability to meet CFCU’s business needs. • Technology match • References • Vendor viability • Price / Cost Key Activities • Review and evaluate / score RFPs • Identify sub-set of vendors to move to next phase VENDOR DEMONSTRATIONS AAC will coordinate on-site workshops with CFCU’s project team to develop business- based demonstration scripts, scoring criteria and detailed outlines of requirements that need to be satisfied by the vendor. Because we believe that simply allowing vendors to “demo” without direction does not provide value to our clients, AAC’s approach is to script vendor demonstrations based on CFCU’s key business drivers. Prior to conducting scripted demonstrations, AAC will organize and schedule two- hour vendor demonstration discovery sessions—not to be confused with the vendor RFP discovery sessions in the RFP support process—to better equip the vendors for the business- process-focused demonstrations. 50 ©2015 AAC Utility Partners Appendix The project team will then invite three to four short-listed vendors to CFCU to conduct two- to four-day scripted system demonstrations, which give CFCU’s team the opportunity to evaluate the software applications functionally and technically. In addition to software capabilities, the vendors will present corporate overviews and a detailed review of their implementation methodology and proposed work plan. AAC will thoroughly document these demonstration results, including summarization of scores, a written recap of CFCU’s users’ notes and general comments. This demonstration documentation will be added to the scoring matrix. Follow-up meetings within the project team will then be conducted to review the results of the demonstrations. In addition, AAC and CFCU will review reference results and document issues. AAC will conduct on-site workshops to update the scoring matrix to reflect the most recent procurement activities. In addition to conducting demonstrations, AAC will assist CFCU’s project team in coordinating reference checks for the short-listed vendors. CFCU may utilize AAC’s reference check tool to capture detailed questions. AAC will again update the scoring matrix to reflect the appropriate reference scores and comments. At the conclusion of these demonstrations and reference checks, AAC and CFCU will compile all the scoring details to assist CFCU with the selection process. The summaries of the scores are then reviewed by CFCU and a decision on the preferred vendor is made. AAC will lead CFCU and the preferred vendor in a three to four day in-depth review of the preferred vendor’s proposed solution with the intent to confirm completeness of the solution as related to the RFP requirements. Results from the detailed demonstration and workshops will be provided to the preferred vendor so the vendor can provide an accurate cost for the following items: • Modifications • Interfaces • Conversion • Implementation • Process Engineering • Hardware • Support • 3rd Party Software • Travel • Licensing This process ensures that the preferred vendor has been given the opportunity to make certain they have a complete understanding of CFCU’s requirements in order to provide an updated price based on the most accurate information. As the preferred vendor knows the information gathered will be included in the Statement of Work and contract, it prevents the preferred vendor from saying that they did not have a complete understanding of CFCU’s requirements once the implementation project has started. This eliminates cost increases for the proposed Scope of Work. 51 Appendix AAC will conduct on-site workshops to document the project team’s findings and participate or conduct the presentation of the project team’s results to members of CFCU’s management team. Key Activities • Schedule and conduct Vendor Demonstration Discovery Sessions • Schedule and conduct Vendor Demonstrations • Compile Demonstration Scoring • Identify Preferred Vendor • Schedule and conduct Preferred Vendor Review Session VENDOR CONFIRMATION After the preferred vendor is identified, AAC will then give due diligence to confirming the qualifications of the vendor through reference site visits. AAC will coordinate, while adhering to CFCU’s travel policy, up to three-vendor production site visits and one vendor corporate visit by key project team members. A site visit schedule that accounts for functional, technical, and project management aspects of the vendor’s work will facilitate interviews with various reference site employees, especially high-volume end-users. These trips will: • Facilitate a detailed review of the proposed product • Provide insight into the proposing vendor’s support structure and client base • Offer pragmatic, vendor-specific insights into the implementation process AAC will summarize the project team’s evaluations into the scoring matrix and conduct the necessary on-site confirmation workshops to review the team’s findings. Key Activities • Coordinate and support CFCU with vendor reference checks and site visits CONTRACT NEGOTIATIONS Leveraging our experience with numerous CIS vendor contract and SOW negotiations, AAC will support CFCU’s negotiation process with the preferred vendor, including review of the preferred vendor’s proposed contract terms and the development of a Statement of Work that protects the interests of CFCU, not the vendor. Having led SOW development and client implementations with many different CIS vendors, we know where projects fail and where strong language is required to ensure a successful project and protect our clients. Based on the intensive research of the months before, AAC will work with CFCU and the preferred vendor in negotiating the Statement of Work, work plan and contract. Throughout this process, AAC will assist in managing the iterative nature of completing the contract to both CFCU and the preferred vendor’s satisfaction. 52 ©2015 AAC Utility Partners Appendix The completed, agreed-upon SOW will provide both general and detailed data regarding the implementation project ahead. Responsibilities for all parties involved will be documented and described to the extent that ambiguities are reduced as much as reasonably possible. All functional questions and answers from the RFP response and the vendor confirmation sessions will be included in the SOW. Service levels will be described in detail. Acceptance criteria and measurement criteria for each deliverable will be included—generally there are 100 to 200 deliverables for a typical implementation. Exhibits to be incorporated into the SOW may include: the RFP, the RFP response, functional checklists, technical checklists, resumes of assigned resources, project plan, etc. A typical SOW will range from 150 to 300 pages, not including exhibits. AAC will support CFCU in any governing body approval presentations or discussions. Key Activities: • Present preferred vendor recommendation • Develop negotiation strategy • Negotiate Statement of Work and contract with software vendor/system integrator • Conduct price and term negotiations • Governing body approval (if required) • Signed contracts TABLE OF DELIVERABLES No. Deliverable Name Description & Acceptance Criteria 1 Updated Project Charter / Strategy Document The Project Charter will include descriptions of the major project components, establishment of the steering committee board, identified project resources, assumptions, risks and early estimated of the budget. The Strategy section of the document will describe the approach to the project and explain why the team established this strategy. 53 Appendix No. Deliverable Name Description & Acceptance Criteria 2 Updated Project Plan AAC will update the plan created during the Assessment Phase to reflect the Selection process. An approved document used to guide both project execution and control. Documents planning assumptions, decisions and facilitates communication between stakeholders and documents approved scope, cost and schedule. There will be summary and detailed versions. 3 Project Kick-Off Presentation Presentation by AAC to CFCU. The intent of this presentation is to formally kick off the Selection project and start end user buy-in and to heighten awareness of the project. 4 Updated CFCU- Specific CIS Business Catalog Confirm with CFCU any necessary updates to business/functional requirements since the assessment. 5 Technical Requirements Document that outlines technical aspects of the vendor solution that are of interest to CFCU. This document will ask questions regarding the hardware and ancillary software requirements and third party applications that will require integration to the CIS. The document will also ask the vendor to describe their strategy to improve the efficiency of the current interfaces required by CFCU. 6 RFP Template Document RFP Outline that lists major categories of information that may be included in CFCU- specific RFP. Sections include: business purpose of project, utility history, utility statistics, technical requirements and template vendor required response format. 7 Scoring Work Sheet Completed scoring worksheet that reflects CFCU’s scoring criteria and weights. 54 ©2015 AAC Utility Partners Appendix No. Deliverable Name Description & Acceptance Criteria 8 Final RFP Document Document that is a derivative of Deliverable number 6. This document builds on the template information from Deliverable 6 and is updated based CFCU data gathering and meetings with AAC and CFCU. This document will be specific to CFCU’s specific business, functional and technical requirements. 9 Base Product Demo Scripts Templates - Document that defines the functionality from Deliverable 4 that will be used to create information to be used to guide CIS vendors/system integrators through a functional presentation of their software. 10 Discovery Sessions AAC will schedule and conduct Vendor two hour Discovery Sessions 11 Clarification Document AAC will issues to all vendors a clarification documents prior to the vendors RFP response. 12 Functional Scores & Costs from Responses Documents that summarize and ranks vendors’ Responses from the RFP for both Functional and Cost information. 13 Selection Vendor Finalists based on Scores Rankings for selection of the vendor finalists. (Short list – up to three vendors) 14 Steering Committee Presentation AAC will prepare an executive level PowerPoint presentation that summarizes the selection decision for CFCU’s Steering Committee. AAC will conduct this presentation or support CFCU with the presentation, based on CFCU’s preference. 15 Executive Management Presentation AAC will prepare an executive level PowerPoint presentation that summarizes the selection decision for CFCU’s Executive Management. AAC will conduct this presentation or support CFCU with the presentation, based on CFCU’s preference. 55 Appendix No. Deliverable Name Description & Acceptance Criteria 16 CFCU Product Demo Scripts AAC and CFCU will work together to create the appropriate level of detail for data and various business rules to be included in these scripts using the templates as a starting point from Deliverable 9. CFCU and AAC will also mutually determine which components of the functional matrix will be included based on CFCU’s level of importance. These scripts will only use portions of Deliverable 9 in order to accommodate the time allocated for software presentations. In addition to these scripts, AAC will provide a suggested agenda for the vendor meetings. 17 Demonstration Agenda and Schedules Document that outlines the schedule for demonstrations for each vendor. The document will also outline the major topics to be presented by the vendor based on CFCU’s requirements. 18 Completion of the Vendor Demonstrations The short-listed vendors that participated in the demonstrations have completed their presentations. 19 Reference Checks CFCU has completed all reference checks, AAC has summarized results. 20 Summarization Score Ranking of Vendors Based on Completed Demonstrations and All Information Documents that summarize and rank vendors for the demonstrations. All scoring criteria is computed and the vendor finalist is identified. 21 Selection of Vendor Finalist Meeting conducted to review score/ ranks and review the final selection. AAC will provide a document to summarize the meeting minutes. 22 Updated Scoring Matrix Executive Summary of the scoring ranks, based on the final scores. 56 ©2015 AAC Utility Partners Appendix No. Deliverable Name Description & Acceptance Criteria 23 Vendor Confirmation Three to four day in depth review of Selected Vendor’s proposed solution with the intent to confirm completion of solution as related to RFP requirements. Product demonstration and implementation methodology review. 24 Solution Cost Summary Document that outlines the selected vendors cost summary and evaluates for completeness. This document is used as a component of the vendor negotiations and for governing body approval. This document is delivered prior to the start of vendor negotiations. 25 Site Visits Completed AAC will assist CFCU to schedule and conduct one or two on-site customer reference visits for selected vendor. Additionally, CFCU may choose to visit the selected vendor’s headquarters. 26 Negotiation Strategies Workshop In preparation of contract negotiations, AAC will conduct a presentation to CFCU outlining contract negotiation strategies and will inform CFCU of expected vendor positions. 27 Governing Body Approval Presentation AAC will prepare an executive level PowerPoint presentation that summarizes the selection decision for CFCUs governing body. AAC will conduct this presentation or support CFCU with the presentation, based on CFCU’s preference. 28 Contract Key Issues (including SOW review) AAC will provide a document outlining the major business issues that should be reviewed by CFCU. CFCU will be required to have legal counsel evaluate all contracts from a legal perspective, as AAC does not render legal advice. 29 Client SOW SOW that reflects CFCU’s specific project information. This document will include AAC’s recommended language. 57 Appendix SELECTION SERVICES PRICING BREAKDOWN Milestone Payment # Deliverable Payment Payment Amount 1 Deliverable 1: Updated Project Charter and Strategy Document $5,000 2 Deliverable 2: Updated Project Plan $5,000 3 Deliverable 4: Updated Client-Specific Business Catalog $15,000 4 Deliverable 6: RFP Template Document $10,000 5 Deliverable 8: Final RFP Document $20,000 6 Deliverable 10: Schedule and Conduct Vendor Discovery Sessions $15,000 7 Deliverable 12: All Functional Scores and Project Solution Costs $10,000 8 Deliverable 16: CFCU Product Demonstration Scripts $15,000 9 Deliverable 18: Completion of Vendor Demonstrations $15,000 10 Deliverable 21: Selection of Vendor Finalist $10,000 11 Deliverable 23: Vendor Confirmation $15,000 12 Deliverable 29: CFCU focused SOW $10,000 Total Services Fixed Fee $145,000 TRAVEL AND LIVING EXPENSES Travel and Living costs are not included in the Total CIS Selection Services Costs and will be billed as incurred per Exhibit C – Fort Collins Expense Guidelines. AAC will deliver the outlined scope of work for the above fixed-fee. There will not be any additional charges to deliver the agreed upon scope of work. AAC does not have a separate rate for additional meetings as all of our costs are incorporated into our fixed-fee. Many utilities have had the embarrassment of a challenged or failed project due to change controls that have increased cost well above original budgets. AAC has delivered all of our Assessment and Selection projects using this fixed, milestone based pricing methodology. Our clients have been very pleased that they know the cost of the project, are able to plan for every payment, and sign-off on and approve the deliverables, before they are ever invoiced. They will be glad to confirm their satisfaction. AAC’s methodology includes all work necessary to deliver the agreed upon scope of work at the contracted price... No surprises. Back of Page Intentionally Left Blank for Pagination Purposes 59 Exhibit A The Proposal Acknowledgment form can be found on the following page. PMB 374, 4840 Forest Dr., Ste. 6B • Columbia, SC 29206 Office: (803) 736-9486 • Fax: (803) 227-0762 E-Mail: info@teamaac.com • Web: www.teamaac.com