Agencies Issue Timetable for Vendors on Large Project

Two state agencies are working together to pick a vendor for what’s “expected to be the largest benefit solution in the country” — a streamlined, integrated system to replace an aging legacy infrastructure.

The California Department of Technology (CDT) is helping the Employment Development Department vet vendors for EDD’s Benefit Systems Modernization (BSM) project, an initiative to overhaul the way the state delivers benefits for unemployment, state disability and paid family leave. Those programs are currently run under several independent systems “on an aging mainframe legacy system,” as well as on “external subsystems and components,” CDT says in a blog post about the initiative.  

Partial system modernizations for disability and unemployment insurance have “resulted in overly complex and not fiscally sustainable benefit systems that will continue to degrade at an increasing rate,” says a budget change proposal from fiscal year 2018-2019. 

CDT and EDD have invited vendors to propose solutions for a new system, including a “proof of concept” in the form of a working model that state officials can evaluate “instead of reading a lengthy vendor proposal based on detailed requirements.”

EDD has responsibility for evaluating proposals or proofs of concept, while CDT/Procurement provides oversight to the process to ensure that all procurement activities allow for fair and open competition. CDT Procurement leads the CDT effort, with close participation from CDT Project Planning/Approval and CDT Project Oversight.

Once the field of vendors is narrowed, state procurement officials will negotiate with the most qualified vendors. A final selection will be based on which proposal offers the best value, CDT says. After the contract is awarded, EDD is expected to run the project while CDT provides the oversight.

The project is in the first phase. Here’s the timetable for each step:

Phase 1 – Bidder Qualification: Oct. 1 – Nov. 29
Phase 2 – Proof of Concept and Full Proposal: Dec. 2 – April 27
Phase 3 – Negotiations, and Best and Final Offer: April 28 – June 2

The state expects to execute a contract around the end of June 2020.

In addition to seeking vendors for a tech solution, the state is also recruiting for a skilled executive to oversee the business side of the BSM project.

The business director’s responsibilities will include devising an enterprise strategy for the project while working with the project’s technical director, the state Labor and Workforce Development Agency, CDT, and other departments and entities.

“Among the primary responsibilities of the business director are driving the effective integration of program and automation solutions, including business process re-engineering, development of legislative proposals, organizational change management, education, training and communications, in partnership with all EDD divisions and business programs,” the job posting says. 

The position has a monthly salary range of $10,360 to $12,341, and the application deadline is Nov. 9.