Request For Proposal. Business Systems Analysis Project New Auto Fund Processing System. Saskatchewan Government Insurance
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1 Request For Proposal Business Systems Analysis Project New Auto Fund Processing System Saskatchewan Government Insurance August 16, 2004
2 Table of Contents Corporate Profile... 2 Background... 3 Requirements... 6 Evaluation Criteria... 7 Proposal Format... 8 Guidelines... 9 Vendor Selection Process Appendix A: Legislation Appendix B: 2003 Annual Report Appendix C: Business Processes and Functions Appendix D: Organizational Structure SK Business Systems Analysis RFP '04.doc Page 1
3 Request for Proposal (RFP) Business Systems Analysis Project New Auto Fund Processing System Proposals are requested from vendors wishing to work with Saskatchewan Government Insurance (SGI) to conduct a Business Systems Analysis Project for the business requirements of a new Auto Fund Processing System. SGI s preference is to initiate the Business Systems Analysis Project in early 2005 for completion within one year. Corporate Profile Saskatchewan Government Insurance is a provincial crown corporation. The Saskatchewan Auto Fund is the compulsory provincial vehicle insurance program administered by SGI on behalf of the people of Saskatchewan. The Auto Fund provides vehicle registrations, driver licences and related services to all Saskatchewan motorists. The Auto Fund is administered by SGI pursuant to the powers granted to SGI under the Saskatchewan Government Insurance Act, 1980, the Automobile Accident Insurance Act and other legislation relevant to the administration of vehicle registrations, driver licences and related services HTA, VAA, MCA, SNA. See Appendix A for more details on legislation, which governs our programs. SGI operates SGI CANADA, SGI CANADA Insurance Services Ltd. (SCISL), Coachman Insurance, and the Insurance Corporation of Prince Edward Island (ICPEI). SGI employs more than 1,500 people, many working in the 21 claims centres and five salvage branches across the province. The Auto Fund delivers its products through a network of approximately 435 independent issuing offices, 6 corporate issuing branches, 12 driver examination offices, and 52 examination testing locations across the province. Additional information can be found in the SGI Auto Fund 2003 Annual Report. Refer to Appendix B of this document. SK Business Systems Analysis RFP '04.doc Page 2
4 Background In 2004, the SGI Board of Directors gave approval for SGI to complete a Business Systems Analysis Project for the redevelopment of the Auto Fund computer systems. SGI is looking for a business partner to assist the SGI Information Technology (IT) staff and the Auto Fund staff in completing this project. There are a number of issues and reasons for redeveloping the Auto Fund applications: Antiquity of the current systems. The back end batch systems have programming code that is over 30 years old. Maintaining this old system is becoming very difficult to manage. IT staff must be trained in several programming technologies and various technology architectures. With a broad range of hardware and software products that have grown over the years, managing this environment has become very complex and inefficient. System work arounds. There are over 600 outstanding problem logs that need to be addressed. Addressing existing system deficiencies would make staff more productive and efficient as the business areas have created work processes to work around the problems. In order to maintain the customer service levels, the work arounds require more people and as volumes increase, even more people are required or greater backlogs are created. Integrity and Accuracy of the Information. Because data is captured separately into separate systems, there are data inconsistencies between the real-time update and batch legacy systems. A better-designed system would provide more accurate, complete information. Because of Privacy of Information requirements, better tracking of who has accessed what information has become more critical, and our older systems are not able to provide this tracking. Improvements in Delivering System Changes. With our older systems, the ability to change the system and introduce new programs is limited, and time and labor intensive. Often when one area of the program is changed, another area is adversely affected. The redevelopment will enable the corporation to be more responsive to changing business needs. SK Business Systems Analysis RFP '04.doc Page 3
5 Impact on Staff, Issuers and Outside Partners. Most staff do not trust the old systems, and spend extra time verifying outputs before sending them out to customers. Business area staff will spend less time rectifying problems and doing work arounds. Issuers and outside business partners will be pleased with improved functionality, reliability, and flexibility Positioning for Future Opportunities. The redevelopment will bring the Auto Fund systems into the 21 st century, enabling Internet applications consistent with e-government strategies. Customer expectations are changing with increasing demand for more online Internet services. Improving Business Processes. The redevelopment will investigate ways of optimizing business processes in order to increase efficiency and improve customer service. The Auto Fund provides vehicle registrations, driver licences and related services to all Saskatchewan motorists. In 1995, the SAM delivery system was implemented to allow issuing offices to process Auto Fund transactions on-line using client server technologies. This required SGI to set up a private network to hundreds of locations, and to provide each issuing office with computers and printers. This system has become cumbersome and costly to maintain. In 1996, an in-house plan was developed for the replacement of the Auto Fund back end systems over the next 6 years utilizing SGI IT and Auto Fund staff. However, on numerous occasions, work on the project was deferred to enable the assignment of scarce and limited resources to higher priority Auto Fund business initiatives. Redevelopment is required due to the obsolescence of the current systems. Any redevelopment must include process improvements to eliminate many of the current inefficiencies. Currently some information is provided to authorized SGI customers and business partners through the Internet, including carrier profiles and driver and vehicle registration information. In addition, we maintain a basic registration and insurance rate calculator on our public web site. Information is provided to over 50 external agencies via the Internet and private networks. These authorized agencies are subject to the Freedom of Information and Protection of Privacy Act (FOIPP), and the Personal Information Protection and Electronic Documents Act (PIPEDA). SK Business Systems Analysis RFP '04.doc Page 4
6 Major external users of the information include, but are not limited to, law enforcement agencies (such as RCMP, municipal police, university police), other government agencies (such as Canada Customs and Revenue Agency, Saskatchewan Justice, and Saskatchewan Environment & Resource Management), and other motor vehicle registration and driver's licensing jurisdictions in North America. SGI has Business to Business electronic interfaces to several other agencies. These agencies, subject to change, include but are not limited to: Other internal systems at SGI, such as Salvage, who report total loss vehicles; The Canadian Council of Motor Transport Administrators (CCMTA) for the electronic interchange of vehicle and driver information between Saskatchewan and other provinces and states through the Inter-provincial Record Exchange (IRE); Saskatchewan Justice for traffic and criminal code offences related to drivers and motor vehicles; Vendors for validation stickers, forms and plates electronic inventory management Saskatchewan Highways and Transportation for carrier inspection information; Guardian Interlock Systems, in partnership with the Canadian Automobile Association (CAA), for administration and installation of Ignition Interlock devices; Scotia Bank for pre-authorized withdrawals Refer to Appendix C for a list of the major systems currently being used to support the Auto Fund at SGI. Refer to Appendix D for the corporate organizational structure: President and Vice-Presidents, the Auto Fund Division organization structure, and affected areas of the Finance Division. SK Business Systems Analysis RFP '04.doc Page 5
7 Requirements The proposal must describe the project deliverables for the Business Systems Analysis Project. The deliverables must include the following as a minimum: 1. A description of the methodology that will be used to complete the Business Systems Analysis Project, including an indication of any required SGI business resources and SGI IT resources. 2. The training that will be provided to ensure SGI staff are familiar with the methodology being used. 3. A complete and thorough description of the project deliverables with samples, including, but not limited to: Redevelopment strategy Business area Process Model Business area Data Model Business area Organization Model Business area Conceptual Design Design and Construction Project strategy Design and Construction Project plan Design and Construction Project schedule Design and Construction Project resource and cost estimate Conversion strategy 4. The proposed Business Systems Analysis project schedule. 5. A list of recommended vendor staff and their resumes. 6. The proposed cost in Canadian dollars with preference given to a fixed price contract. 7. The vendor training required to sufficiently understand Auto Fund business functions. SK Business Systems Analysis RFP '04.doc Page 6
8 Evaluation Criteria The following list of evaluation criteria will be used to determine if the vendor and their proposal will meet SGI s business needs for the Business Systems Analysis Project: 1. How well the sample project deliverables meet the needs of the Auto Fund Business strategies. Business area Process Model Business area Data Model Business area Organization Model Business area Conceptual Design Design and Construction Project strategy Design and Construction Project plan Design and Construction Project schedule Design and Construction Project resource and cost estimate Conversion strategy 2. The ability of the vendor to complete the project. 3. The depth of the vendor s experience, and the quality and track record of the vendor on projects of similar size and complexity. 4. The vendor s knowledge and ability in delivering the proposed solution. 5. The quality and experience of the proposed vendor staff. 6. The size, financial status and stability of the vendor. 7. The ability of the vendor to deliver further phases of the project, including support of the proposed solution, and knowledge transfer. 8. Economic benefits to the Saskatchewan economy. 9. Business Systems Analysis Project schedule. 10. Cost, with preference given to a fixed price contract. SK Business Systems Analysis RFP '04.doc Page 7
9 Proposal Format Vendors should include the following items in their response: A covering letter introducing your company and any partners, as well as the proposal. The proposal document should be signed by an authorized officer of the company who has the authority to bind the proposal. A separate sealed envelope containing all cost and financial information. The table of contents for the proposal is identified below. 1. Executive Summary Scope definition indicating you have a clear understanding of our expectations. Overview of your proposed solution. 2. Deliverable Description. 3. Approach Description. 4. Business Systems Analysis Project schedule. 5. Vendor Qualifications, including qualifications of proposed vendor staff. 6. Costs in Canadian dollars. 7. References Additional information that the vendor feels may assist SGI in evaluating the proposal. SK Business Systems Analysis RFP '04.doc Page 8
10 Guidelines To receive consideration, ten copies of your sealed proposal, signed by an officer of your company, must be received by 2:00 p.m. C.S.T. October 12, Ten copies of the pricing section of your proposal must be sent in a separate sealed envelope, duly marked and signed by an officer of your company. Late proposals will be returned unopened. Submitted proposals will be considered to be the property of SGI and will not be returned. The information contained in the proposals will be treated in strictest confidence and shall not be used for a purpose other than the purpose for which it was submitted without the express written permission of the vendor. However, government reporting requirements may result in the public disclosure of dollars paid to the successful vendor from any contract awarded. SGI reserves the right to award the contract, in whole or in part, to one or more vendor or to reject all proposals. The lowest, or any proposal, need not be accepted by SGI. SGI shall have the right to evaluate competing proposals in accordance with its own criteria for evaluation applied to the specific work being requested, whether or not such criteria has been expressly related to the vendors. Any proposal that stipulates a qualifying condition may, at the sole discretion of SGI, be excluded from evaluation. Where quality, service and delivery are substantially the same, and where prices are competitive, Saskatchewan vendors shall be used. If your company carries an insurance policy with SGI CANADA, please indicate the policy number. SGI will notify vendors submitting proposals of the results within 90 days of closing of the RFP. Proposals must be clearly marked with the RFP name and closing date. Vendor interviews and meetings with SGI are encouraged and can be scheduled at SGI s Head Office in Regina. These must be completed by September 13, Meeting requests, including agendas and specific questions can be submitted through the following Please indicate whether you are planning to submit a proposal by August 30, 2004 using the address listed above. SK Business Systems Analysis RFP '04.doc Page 9
11 Please submit your proposal to: Jodie Woykin, Corporate Services Saskatchewan Government Insurance th Avenue Regina, Saskatchewan S4P 0J9 Phone: (306) Fax: (306) SK Business Systems Analysis RFP '04.doc Page 10
12 Vendor Selection Process 1. RFP issued and vendors prepare responses 1. Vendors are encouraged to meet with SGI to ask questions about the RFP, learn more about the scope of the engagement and the way we do business. 2. Review proposals and compare responses 2. SGI staff may contact vendors to ask questions or to obtain more information. 3. Schedule and attend vendor presentations 3. Vendors may be asked to make presentations to SGI staff. 4. Select vendor 4. SGI will notify the successful vendor for the Business Systems Analysis Project. Vendors that submitted proposals will be notified of the results. SK Business Systems Analysis RFP '04.doc Page 11
13 SK Business Systems Analysis RFP '04.doc Page 12 Appendix A Legislation
14 Appendix A: Legislation The following is a list of the legislation that SGI administers: The Automobile Accident Insurance Act (AAIA) The Highway Traffic Act (HTA) The Vehicle Administration Act (VAA) The Motor Carrier Act (MCA) The Snowmobile Act (SNA) The All-Terrain Vehicles Act (ATVA) and all associated regulations For complete information on these Acts, please refer to the Queen s Printer website at The easy read versions of programs that we administer are available in brochures. These brochures are available upon request. SK Business Systems Analysis RFP '04.doc Page 13
15 SK Business Systems Analysis RFP '04.doc Page 14 Appendix B 2003 Annual Report
16 Appendix B: 2003 Annual Report For complete information please refer to the Saskatchewan Auto Fund 2003 annual report available at: AnnualReport.pdf SK Business Systems Analysis RFP '04.doc Page 15
17 SK Business Systems Analysis RFP '04.doc Page 16 Appendix C Business Processes and Functions
18 Appendix C: Business Processes and Functions The following is a listing of essential business processes and functions that are currently being used to support the Auto Fund at SGI. Most of these processes and functions are automated; however, there are several that are not. Many are not fully integrated to the extent that the business wants. 1. SGI Auto Mate (SAM), our Online Point of Sale System: Vehicle Registration Issuing Driver Licence Issuing Other Customer Transactions Issuer financial balancing and reporting Manual backup processes for when SAM is unavailable Head Office Override and Correction processes Specialized Head Office Issuing functions 2. Drivers Program Administration: Driver License Issuing of Special condition licences Driver Control System including roadside suspensions, addiction screening, Driving Without Impairment (DWI) program, Recovery, suspensions for other government departments Driver Improvement Program (DIP) Probationary Driver Program Driver Criminal Code Convictions Summary Offence Ticket (SOT) Processing Vehicle Impoundment Driver Medical Review Driver Ability Assessments Commercial Periodic Medical Program Driver Medical Records Photo Identification Card Program School Bus Driver Endorsement Photo Identification Program Fraudulent Driver s document Program Driver History/ Driver Abstracts Ignition Interlock program SK Business Systems Analysis RFP '04.doc Page 17
19 3. Other Drivers Applications: Driver Control Document Imaging Medical Document Imaging System Medical Records diary and look up System (MRLOOK) (BF/diary software) Automated Driver Testing (package from Solutions Through Software) Driver Exam Scheduling System (package from Time Trade) 4. Other Vehicle Applications: Bulk Vehicle Registration Cancellations Vehicle Registration Status Maintenance 4.5. Customer and Administration Support Information Systems: Customer Status Maintenance System Customer Information System Inquiry (Browser) including Fee Calc and Customer Notes 5.6. Batch Financial Systems: Daily Transaction Balancing Batch Correction Transactions Batch Driver and Vehicle Updates Driver and Vehicle Transaction Error Correction Cash Control (Batch balancing process) Customer Payable Receivable System (PR System) Payables Receivables Administration programs Customer Payment Options i.e. AutoPay, Short Term, Customer Payment Plan Financial end of period reporting Auto Fund General Ledger (requires manual posting to SGI General Ledger) Issuer Receivable System SK Business Systems Analysis RFP '04.doc Page 18
20 6.7. Interfaces with Other Systems: Saskatchewan Finance data feed for Registration Fees and Provincial Sales Tax Collected Saskatchewan Health data feed for address changes Canadian Police Information Centre (CPIC) data feeds to RCMP Driver and Vehicle Inter-provincial record exchange (IRE) SGI Claims data feed for accident and stolen vehicles and inquiry on Auto Fund information SGI Salvage (Total Loss Vehicle (TLV) feeds) Express Address (Hosted by SaskTel) 8. Ratings & Economics Programs: Vehicle Experience Safe Driver Recognition program Business Recognition Program Vehicle Rating System Make Model Splits program 7.9. Issuer Systems: Issuer Administration System Issuer Monitoring (includes incomplete Farm Declarations) Issuer Contract Database Issuer Training Database Issuer Audit & Visitation Planner System VIN Location Questions Audit (& Customer Service) System Issuer Relations Distribution Database (produces address labels too) Issuer Communication Bulletins Index System Issuer Poor Quality Photos System Issuer Transaction Remuneration System Backup Forms Changes System Regulatory Business Systems: Safe Driver and Business Recognition Appeals Systems Carrier Profile System Accidents from Claims, and Carrier Offences and Inspections (Automated feed from other provinces, Saskatchewan Highways, and Saskatchewan Justice) Carrier Safety Audit Program Traffic Accident Information System (TAIS) Returned Cheque/Cheque Trace databases Certified Document Copy Database Inventory Life Cycle (ILC) (Plates & stickers web based) SK Business Systems Analysis RFP '04.doc Page 19
21 9.11. Other Business Functions, including but not limited to: Vehicle Standards - Payable/Receivable for inspection stations, reporting, unsafe vehicle program Highway Traffic Board (HTB) - tracking appeals and results DWI Coordinators - certification and audit Driver Instructors and Training Schools - certification programs and audit Aboriginal Driver Education Funding Program Driver Examiners - road test details, including results Certified driving record Addiction Screening Program Service Centre, used for the reporting of: Issuer equipment problems Reporting Issuer application errors Reporting Network problems Reporting Database problems Administration of NSF Cheques and associated manual file processes Administration of Manual Refund cheque processes Manual Correction Processes for PR, AutoPay, Vehicle Registration and Driver Licencing Central Permit Issuing System (Software from Cansys) Central Permit Receivable System Retained Total Loss Vehicle notifications and cancellation of registration in non-compliance cases Problem notification to other areas in Auto Fund to correct Database Inquiries such as paid receivables and Permits Manual issuer statement adjustments Manual NSF receivables adjustments Manual Issuer Fees Earnings adjustments Manual Premium Taxes Earnings adjustments Manual Malus Receivables Earnings adjustments Manual AutoPay and Short Term finance fees Earnings adjustments Issuer Trust Accounts Bank Transfers Manual Financial Monthly Balancing Monthly GL Account Adjustments VIN Search Results Database Various Information Searches International Registration Plan (IRP) Data Reports IRP jurisdictional funds transfer SK Business Systems Analysis RFP '04.doc Page 20
22 Selected Software to Support Business Functions: Liberty software for imaging and retrieving documents COVERS Package from R L Polk VINN Link Decoder (Package from VICC) PC-VINA (Package from R L Polk) Address Accuracy (Package from Group 1 Software) InfoMaker SAS Rationale SQA software On Demand software for report viewing and printing Doc2Help for creating and revising SAM Help files Authorware software to create the Computer Based Training (CBT) Modules Snag-it software for capturing screen prints Entry Point software to key Batch transactions People Soft SGI General Ledger SK Business Systems Analysis RFP '04.doc Page 21
23 SK Business Systems Analysis RFP '04.doc Page 22 Appendix D Organizational Structure
24 Appendix D: Organizational Structure SGI ORGANIZATIONAL SUMMARY SENIOR MANAGEMENT President and Chief Executive Officer Secretary to the President Government & Corporate Affairs VP Auto Fund VP Claims & Salvage AVP Communications VP Finance VP Human Resources & Corporate Services VP Systems & Facilities VP Underwriting Audit Services SK Business Systems Analysis RFP '04.doc Page 23
25 SGI AUTO FUND DIVISION VP Auto Fund Executive Secretary AVP Driver & Vehicle Safety Services AVP Licencing & Registration Services Projects & Systems Traffic Safety Program Evaluation Supervisor Projects & Systems Supervisor Traffic Safety Program Evaluation SK Business Systems Analysis RFP '04.doc Page 24
26 SGI AUTO FUND DIVISION AVP Licencing & Registration Services Customer Service Centre Branch & IRP Issuing Services Information Services Issuer Relations Vehicle Registration Policy & Permit Services Supervisor Customer Service Centre Supervisor Branch & IRP Issuing Services SK Business Systems Analysis RFP '04.doc Page 25
27 SGI AUTO FUND DIVISION AVP Driver & Vehicle Safety Services Driver Development Safety Services Vehicle Standards & Inspection Driver Programs Carrier Audit Services Supervisor Driver Safety Services Supervisor Vehicle Standards & Inspection Supervisor Driver Records Supervisor Medical Review SK Business Systems Analysis RFP '04.doc Page 26
28 SGI FINANCE DIVISION VP Finance Executive Secretary Corporate Controller Banking, Investments & Autofund Revenue Rating & Economics Corporate Actuary Rating & Economics Supervisor Auto Fund Rating Supervisor Analytical Support Research Officer Actuarial Analysis Research Officer Actuarial Analysis SK Business Systems Analysis RFP '04.doc Page 27
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