REQUEST FOR PROPOSAL #13-007. Online Expense Claims System THE UNIVERSITY OF WATERLOO

REQUEST FOR PROPOSAL #13-007 Online Expense Claims System BY THE UNIVERSITY OF WATERLOO CLOSING DATE: March 4, 2013 CLOSING TIME: 16:30:00:00 CLOSING LOCATION: ECH 203A University of Waterloo Procurement & Contract Services East Campus Hall 263 Phillip Street Waterloo Ontario N2L 3W8

Contents SECTION 1.0: PURPOSE AND CONTENT... 3 1.1 Purpose... 3 1.2 University of Waterloo Profile... 3 1.3 Overview of Current Environment for Expense Claim Processing... 4 SECTION 2.0: INSTRUCTIONS TO BIDDERS... 6 SECTION 3.0: EVALUATION AND AWARD... 8 SECTION 4.0: AWARD CONTRACT... 9 SECTION 5.0: PROPOSED SCHEDULE... 12 SECTION 6.0: GENERAL REQUIREMENTS... 14 SECTION 7.0: FEES AND COSTS... 19 SECTION 8.0: OTHER CRITERIA... 20 Appendix A SCENARIO EXAMPLES... 22 Use Case Scenario 1: Conference Trip with Multiple Funding Sources... 22 Use Case Scenario 2: Field Trip for Research Project... 32 Appendix B SUBMISSION FORMAT... 40 Appendix C UNIVERSITY OF WATERLOO S COMPUTING ENVIRONMENT... 45 Appendix D... 49 RFP #13-007 Online Expense Claims System Page 2

SECTION 1.0: PURPOSE AND CONTENT 1.1 Purpose The University of Waterloo (Waterloo) seeks a proposal to automate expense claim processing for employees, students and visitors. The system will position Waterloo at the leading edge of expense management and enable the adoption of best practices. The goals of the system are to change from a paper-based to an online process, and over the longer term, move from reimbursable expenses to business-to-business transactions. Consideration will be given to the integration with a non-exclusive, online booking system for travel (i.e. airfare, accommodation, car rental, etc.). However, the selection of a service provider for an online booking system will occur separately and is not part of this proposal. Specifically, Waterloo seeks the following benefits: Automate and streamline processing of claims Increase business-to-business transactions for University business Improve information about expenses for analysis, reporting and auditing Eliminate paper, where possible, and reduce storage needs Provide an integrated solution, particularly with existing processes in Oracle ebusiness Suite Financials system Provide a user-friendly, secure, sustainable and supportable environment The University of Waterloo is searching for a supplier who incorporates the creative use of emerging technologies, such as tablets, smartphones and mobile applications, to ease document management and to record expenses as expenses are incurred. The system must increase process and record retention efficiency, enhance user experience, and provide a viable, scalable and flexible solution to meet the future business needs of the University. The University of Waterloo is selecting a supplier based upon the criteria listed in Sections 6.0, 7.0 and 8.0 of this Proposal Call. The evaluation for the short-list of bidders will be based on the submission format listed in Appendix B of this Proposal Call. 1.2 University of Waterloo Profile Founded in 1957, the University of Waterloo (Waterloo) is one of Canada s leading comprehensive universities. It is a degree granting and research organization offering undergraduate and graduate programs. Waterloo is one of twenty provincially assisted universities in Ontario and offers North America s largest cooperative education program. The University community includes approximately 30,000 full-time students and 2,900 employees (faculty and staff). 1 1 University of Waterloo Performance Indicators 2012, Institutional Analysis and Planning. RFP #13-007 Online Expense Claims System Page 3

A major challenge currently facing all educational institutions is increased enrollments at a time when tuition fees and operating grants are highly constrained. Resources are limited and making wise and efficient use of personnel is essential. 1.3 Overview of Current Environment for Expense Claim Processing The University of Waterloo is a non-profit, charitable organization and is part of the broader public sector in Ontario. Waterloo receives significant funding for certain business activities, such as research grants, from external sources. Generally, university policies and business practices apply when determining eligible business expenses. However, in certain cases, the agreement with an external funding agency specifies policies and business practices to determine eligible business expenses. The policies and practices of the funding agency may be more liberal or more stringent than those of the university and supersede those of the university, where applicable. To add to the complexity, expenses on a single expense claim may be funded from different sources thereby governed by more than one set of policies and practices. Consequently, claimants, reviewers and approvers cannot rely on a single set of policies and practices to be applicable in all situations. The university also provides accounting services for several separate legal entities which may issue their own policies and procedures or adopt those of the university. The system may be required to process expense claims for separate legal entities. The university is seeking an expense management solution that promotes transparency of and compliance with expense rules of the university and its funding agencies. In addition, the system must ensure the expense is reviewed and approved by the appropriate parties based on factors such as type of claimant, nature of the expense, expense account charged and appropriate organizational and/or project approval hierarchy. One or more components of the account number may be a factor in determining expense eligibility and the appropriate approval hierarchy. The university s account structure comprises 8 segments for a total of 31 digits. Detailed information about the account structure is available at: https://uwaterloo.ca/finance/gl-account-information/accounting-flexfield-definition#1 Below is a summary of the university s account structure. Segment Name # of Digits Purpose Related to Hierarchy Org Unit 4 Recognized university department, centre, institute or a Yes division within each group. Activity 3 Ongoing action or service offered by the university. No Fund 3 Identifies the funds of the university or of a separate legal Yes entity. Some funds are restricted (e.g., research); whereas, other funds are not restricted in terms of eligible business activity. Fund Class 4 Identifies the source of funds which may be internal or external. Yes RFP #13-007 Online Expense Claims System Page 4

Segment Name # of Digits Purpose Project 6 Well-defined set of related tasks, with a start and end date, to achieve some purpose. Object 4 Categorizes income, expenses, assets, liabilities and fund balances for accounting purposes. Product 4 Categorizes income and expenses by product and relates to an activity or object. Phase 3 Categorizes time periods, such as calendar years or academic terms, for a project or product. Related to Hierarchy Yes Yes No No The university seeks to formalize its review and approval hierarchy so that expenses are reviewed and approved by the appropriate parties. In general, expenses are reviewed by an administrator in the department. If one or more of the expense accounts relates to a research project, an administrator in the department and/or the Research Compliance Officer (i.e. from the Office of Research) reviews the expense claim. Once the review is completed, the expense claim is submitted for approval. With regards to research projects, normally the principal investigator (i.e. the faculty member responsible for the research project) is the approver when the expense reimbursement is not for him or herself. However, the principal investigator may designate on-going approval to a specified university employee. Normally, expenses which are not charged to a research project are approved in accordance with the organizational hierarchy. The current expense claim process primarily requires individuals to incur out-of-pocket expenses. Alternatively, an individual may request an advance. The expense is later claimed for reimbursement or as settlement of the advance. In certain cases, preferred suppliers (e.g., preferred travel, transportation or car rental agencies, etc.) invoice for travel expenses directly to the university rather than requiring the traveler to pay out-of-pocket. Depending on the complexity for an expense claim, the cycle time from submitting a paper-based claim to receiving reimbursement may take from one to several weeks. During fiscal year 2011/2012, approximately 22,600 out-of-pocket expense claims were processed. (See Table 1: Transaction Volumes, below.) Approximately 55% of expense claims were for travel and travel related expenses. The remaining 45% of expense claims were for various non-travel out-of-pocket expenses, such as supplies, hospitality expenses, event expenses, reimbursement for professional expenses, etc. Table 1: Transaction Volumes (Fiscal Year 2011/2012) Claimant Type Number of Transactions Total Paid Students Research Expenses Non-Research Expenses Sub-total Students 4,200 2,500 6,700 $2.5 million $1.3 million Employees Research Expenses 6,000 $5.6 million $3.8 million RFP #13-007 Online Expense Claims System Page 5

Non-Research Expenses 9,900 $7.0 million Sub-total Employees 15,900 $12.6 million Total 22,600 $16.4 Million For more information on current processes and the online expense claims project see: http://uwaterloo.ca/online-expense-claims/gathering-requirements-what-we-learned/current-processdiagrams. SECTION 2.0: INSTRUCTIONS TO BIDDERS 2.1 Proposals will be accepted up to and no later than 16:30:00:00 (Eastern Standard Time) on March 4, 2013 at the University of Waterloo, East Campus Hall. Proposals received after the closing time and date will not be considered and will be returned to the bidder unopened. 2.2 One (1) paper copy and one electronic copy (USB, or CD/DVD is preferred) must be submitted and enclosed in a sealed envelope clearly marked: Request for Proposal (RFP) #13-007 for Online Expense Claims System - Deliver to ECH 203A 2.3 Proposals must be completed in accordance with the requirements of this Request for Proposal document, and no amendment or change to proposals will be accepted after the closing date and time. 2.4 Proposals shall be irrevocable for ninety (90) days following close of bidding and shall be retained by the University of Waterloo. 2.5 Proposals shall be originally and irrevocably signed by an authorized representative of the bidder when submitted. Upon award (if any), the successful bidder will be required to supply proof satisfactory to the University of Waterloo of appropriate authorization to bind the bidder. 2.6 Questions regarding this Request for Proposal may be submitted in writing (fax, mail or email only) on or before February 26, 2013 and should be directed to: Stephen Cook, Procurement and Contract Services University of Waterloo, East Campus Hall Waterloo, ON N2L 3W8 Fax: (519)746-4072 Email: scook@uwaterloo.ca, or, procure@uwaterloo.ca The University of Waterloo cannot guarantee responses to questions received after this deadline. Should the question be considered relevant to all bidders, the University of Waterloo RFP #13-007 Online Expense Claims System Page 6

will provide both the question and the written answer to all known bidders. Bidders are solely responsible for ensuring the University of Waterloo has a current address and fax number on file for the bidder. 2.7 No other representative of the University of Waterloo is to be contacted regarding this Request for Proposal. The University of Waterloo accepts no responsibility for, and the bidder agrees not to rely upon, any verbal or written statements or representations from any other person, whether or not employed by the University. 2.8 In the event the bidder cannot comply with any term, condition, or requirement of this Request for Proposal, such non-compliance must be clearly noted on the bidders letterhead and submitted with the proposal. Bidders are cautioned that such non-compliance may result in disqualification of the bidder s proposal, at the sole discretion of the University of Waterloo. No allowance will be made for un-noted non-compliance of any kind by a bidder. 2.9 While the University of Waterloo will not consider more than one bid from a bidder under the same or different names, the University is prepared to consider, in addition to the original bid, a maximum of one alternative bid submitted within the same bid package, providing such are clearly marked as alternatives. 2.10 Bidders are cautioned that proposals will be solely evaluated upon the disclosed evaluation criteria and no linkage of offers to donations, scholarships or similar quid pro quo arrangements will be considered. 2.11 The International Sale of Goods Act does not apply to this Request for Proposal or any contract formed as a result of this Request for Proposal. 2.12 The laws of the Province of Ontario shall apply to this Request for Proposal and any contract formed as a result of this Request for Proposal and the Courts of Ontario shall have exclusive jurisdiction over any contract formed as a result of this Request for Proposal. 2.13 The University of Waterloo s name, logo, crest, etc., shall not be used without the prior written consent of the University. 2.14 Upon the conclusion of the RFP process, the University of Waterloo will publicly name the successful Bidder to which an award was made. Should a compliant bidder wish to debrief, they are welcome to make a formal request, in writing, to the person named in 2.6 within sixty (60) days of the award posting. Please be advised that the University of Waterloo considers each bid to be confidential, and will only discuss with each bidder their own bid s strengths and weaknesses. Where a supplier wishes to dispute the outcome of a bid, subsequent to a debriefing with the Procurement & Contract Services department, the process to be followed is outlined on the University of Waterloo s website: http://uwaterloo.ca/procurement/suppliers/bid-dispute-process 2.15 The University of Waterloo supports environmentally positive initiatives. Our goals are to pursue sound life cycle choices whenever possible and to encourage our suppliers to strive towards not just environmentally progressive goods, but to aggressively pursue increasingly superior RFP #13-007 Online Expense Claims System Page 7

environmental and sustainable offerings. The University of Waterloo will always consider environmentally superior product choices in our procurement decisions, and will, when appropriate, factor a certain percentage of cost towards superior environmental and sustainable goods and services. 2.16 Except as expressly and specifically permitted in the Terms and Conditions of this Request for Proposal, bidders shall not have any claim for compensation of any kind whatsoever, as a result of participating in this Request for Proposal, and by offering a submission to this request, each bidder shall be deemed to have accepted and agreed that it has no claim. 2.17 Bidders acknowledge that the University of Waterloo is subject to the Ontario Freedom of Information and Protection of Privacy Act. Bidders shall clearly mark as "Confidential" all information regarding trade secrets, commercial, financial, labour relations, technical or other aspects of a bidder's proposal, which in the bidder's opinion are of a proprietary or confidential nature, and are significant enough to be injurious to the bidder should this information be provided under a request of information. Entire proposals are not to be marked Confidential. The University of Waterloo shall use all reasonable efforts to hold all information marked "Confidential" by the bidder in strict confidence where required or permitted by law but shall not be liable for any disclosure or non-disclosure made in respect of a request under the Act except as contemplated by section 62(2) of the Act. If the University s response to a request under the Act is appealed to the Information and Privacy Commissioner of Ontario and the bidder elects to participate in the appeal, it shall be responsible for its own participation. SECTION 3.0: EVALUATION AND AWARD 3.1 The University of Waterloo intends to award a contract to the bidder whose proposal offers the best value to the University. However, the University is under no obligation to award any contract in whole or in part and the University reserves the right at its sole discretion to cancel this Request for Proposal process at any time before or after closing without providing reasons for such cancellation. The lowest or any proposal may not necessarily be accepted. 3.2 All proposals will be evaluated upon the criteria listed in Section 3.9 and detailed in Sections 6.0, 7.0 and 8.0. 3.3 Any award (if any) made by the University of Waterloo shall be made in writing and shall be subject to the availability of funding at the time of award. 3.4 In the event of mathematical errors in extension of prices or other ambiguities, unit prices shall govern over total bid prices and words shall govern over numbers. RFP #13-007 Online Expense Claims System Page 8

3.5 To obtain the most advantageous offer for the University of Waterloo, the University reserves the right at its sole discretion: a) to waive irregularities and/or minor non-compliance by any bidder with the requirements of this Request for Proposal; b) to request clarification and/or further information from one or more bidders after closing without becoming obligated to offer the same opportunity to all bidders; bidders are advised, however, to submit a complete offer as their bid. It is the University s intent to solicit and accept best offers. Any waiver, clarification or negotiation will not be considered an opportunity for bidder s to correct errors in their bids; c) to negotiate minor variances in scope and the corresponding price solution; d) to negotiate a contract that reflects the service delivery of any proposed solution. 3.6 The University of Waterloo shall not be responsible for any expenses or charges incurred by a bidder in preparing or submitting a proposal nor in providing any additional information considered necessary by the University for evaluation of proposals. 3.7 All pricing must be made on a Net basis. No prepayments shall be made unless vendor agrees to supply one of the following at the vendor s expense for the amount of the prepayment: An Advanced Payment Bond, An Irrevocable Standby Letter of Credit or a Letter of Guarantee. 3.8 The University of Waterloo reserves the right at its sole discretion to amend this Request for Proposal at any time prior to close of bidding and bidders are cautioned to ensure they have received all addenda (if any) prior to submitting a bid. Should the University issue any changes to this Request for Proposal, the University will endeavour to notify all bidders to whom the Request for Proposal has been issued. 3.9 Evaluation criteria consist of the following items: General Requirements: 40% As per Section 6.0 Fees and Costs: 40% As per Section 7.0 Other Criteria: 20% As per Section 8.0 In the event of a tie amongst bidders, the University of Waterloo will re-visit the subjective portions of the bid (references, experience) in an effort to determine the best alternative. Guidelines for submission are listed in Appendix B - SUBMISSION FORMAT. SECTION 4.0: AWARD CONTRACT 4.1 The award contract to the successful bidder (if any) shall include the terms of this REQUEST FOR PROPOSAL and the terms of the University of Waterloo s purchase order together with those terms of the bidder s proposal which are not inconsistent with the University of Waterloo s documents and which have been specifically accepted by the University. RFP #13-007 Online Expense Claims System Page 9

4.2 The successful bidder (if any) may not assign or subcontract any of the award contract without the prior written consent of the University of Waterloo. 4.3 The successful bidder (if any) shall indemnify the University of Waterloo, its Board of Governors, Students, Employees, Servants and/or Agents from all damage, damages, losses, costs, claims, demands, actions, suits, or proceedings which may arise directly or indirectly as a result of the negligent or wrongful acts or omissions of the successful bidder (if any), its Employees, Agents and/or Servants in the performance or purported performance of any of its obligations under the contract, whether or not such claims are initiated by third parties or arise between the parties. 4.4 The successful bidder (if any) shall carry at all times during the performance of the work commercial general liability insurance with a limit of not less than $2,000,000 inclusive per occurrence for bodily injury (including death) and damage to property including loss of use thereof. Such insurance shall at a minimum include coverage of broad form property damage, contractual liability, completed operations and product liability, and automobile liability (owned and non-owned), and such other types of insurance as would be carried by a prudent person performing such contract work and as the University of Waterloo may from time to time require. The University of Waterloo shall be named as an additional insured without right of subrogation in all policies of insurance. All such policies of insurance shall provide that the Insurers shall give at least thirty (30) days written notice to the University of Waterloo prior to any cancellation, material changes, or amendments restricting coverage of any policy or policies. The successful bidder (if any) shall provide a certificate of such insurance to the University of Waterloo as a condition of receiving the award within five (5) days of notification of award or prior to commencing the work, whichever is sooner. 4.5 The successful bidder (if any) shall at all relevant times carry Workplace Safety and Insurance Board of Ontario coverage or Employers Liability Insurance in the amount of not less than $2,000,000 and shall submit its WSIB number together with a letter from the appropriate WSIB Department indicating there are no outstanding fees, fines, claims or debts due on the Contractor s WSIB account, to the University of Waterloo prior to the commencement of the work. 4.6 The successful bidder (if any) shall warrant its work and/or products for a period of not less than one (1) year from completion, installation or supply against all defects and deficiencies in manufacture, workmanship and installation. The successful bidder (if any) shall also promptly remedy or replace any defect or deficiency, in the goods or services as solely determined by the University of Waterloo, upon notice from the University to do so, and at no cost to the University. RFP #13-007 Online Expense Claims System Page 10

Should the successful bidder (if any) fail to remedy any defect or deficiency promptly with a reasonable time after notice to do so, the University may remedy the defect or deficiency, at the successful bidder s (if any) cost. 4.7 Any products supplied and installed by the successful bidder (if any) shall CSA (or equivalent) approved and shall be installed in such a manner as to preserve any and all manufacturer s warranties, for the benefit of the University of Waterloo. 4.8 The University of Waterloo and the successful bidder (if any) acknowledge and agree that they are independent contractors in a contract for goods and/or services and no employer - employee, partnership nor agency relationship is intended or created by their agreement. The successful bidder (if any) shall be solely responsible for all matters relating to statutory deduction of all taxes, employment insurance, Canada Pension, obtain Workplace Safety and Insurance Board of Ontario insurance premiums, leave, remuneration, discipline and all licenses and permits which may be or may become required to perform the Work. 4.9 Notwithstanding the above, while at the University of Waterloo, personnel of the successful bidder (if any) must observe all regulations and policies of the University including parking and traffic regulations. Vehicles shall be parked in areas, at the successful bidder s (if any) expense, as directed by the University s Parking Administration. 4.10 In addition to any rights of termination at law or in equity, the University of Waterloo shall have the right to terminate any contract formed with the successful bidder (if any) upon written notice to the successful bidder. RFP #13-007 Online Expense Claims System Page 11

SECTION 5.0: PROPOSED SCHEDULE Our anticipated schedule for selection and implementation is as follows: Selection Phase February 11, 2013 March 4, 2013 March 5, 2013 March 18, 2013 March 25, 2013 April 5, 2013 April/May 2013 May 2013 Begins June 2013 Begins December 2013 Post RFP on Merx RFP Responses from suppliers Evaluation of RFP responses Demonstration by short-listed suppliers at Waterloo Proof of Concept of selected short-listed suppliers at Waterloo Final selection Plan, define scope of customizations, build/configure, and test or other relevant activities Phased implementation Short-list and References The Waterloo Evaluation Team will develop an initial short-list of the top-scoring submissions. The Team will designate staff to contact the bidder-supplied references, and ask the references a prescribed set of questions, plus any additional information that Waterloo determines at our sole discretion is pertinent. In addition, any information received in response to enquiries made by Waterloo of third parties apart from those references provided in your proposal, in relation to the integrity and reliability of your solution may also be considered. A poor or negative reference will impact scoring negatively (points will be deducted), and may be grounds for rejection of a proposal. Demonstrations Waterloo will refine the initial short-list to consist of only the top highest-scoring proposals, and invite each of these bidders for functional and technical demonstration and Q&A sessions with an audience that will include the Waterloo project team, plus interested Waterloo employees from the campus at large. Waterloo reserves the right to determine the number of top highest-scoring proposals that will be selected for this session. These sessions are scheduled for the two weeks of March 25, 2013 April 5, 2013. Please indicate your availability should this be required. Proof of Concept After the demonstration phase, short-listed bidders may be invited to participate in a system proof of concept. During this phase of the selection process, the bidders will be asked to demonstrate more complex University of Waterloo processes within their system. The proof of concept will enable the University of Waterloo to evaluate ease of use/user friendliness for various scenarios such as those described in Appendix A. A detailed script describing the various scenarios and evaluation criteria will be provided to the short-listed bidders when the invitation is made to do the proof of concept. The invited RFP #13-007 Online Expense Claims System Page 12

bidder(s) participating in the proof of concept may invoice the University of Waterloo $5,000 as compensation for this effort. The selected solution is subject to an information security review and approval by the University before acceptance. The bidder is expected to cooperate with the University's information security group to ensure that the solution meets requirements for data protection and compliance with privacy legislation and policy. Regardless of functionality, a proposal may be rejected if it is determined, at Waterloo s sole discretion, that a solution s ability to align with our existing infrastructure will be either too limited, or too difficult to manage. RFP #13-007 Online Expense Claims System Page 13

SECTION 6.0: GENERAL REQUIREMENTS 1 Automate and streamline processing of claims Capability: Provide a coherent end-to-end online process for expense claims with supporting technology. The solution needs to: automate at least 80% of existing expense claims; collect and retain documentation related to expense claims in electronic form, where possible; significantly reduce errors, follow-up inquiries and rejections; improve the compliance of eligible business expenses with Waterloo policies and practices, and/or agreements with one or more external funding agencies, where applicable; improve the review and approval process and reduce the endto-end processing time. Features: 1.1 Approval Hierarchy 1.1.1 Ability to manage the review and approval hierarchy based on factors, such as claimant s affiliation to the university (i.e., employee, student, visitor, etc.), expense claim type, source of funds (e.g. research funds, operating funds). 1.1.2 Ability to provide delegation of review and approval while claimant is out-of-office. 1.1.3 Ability to enforce delegation of approval assignment to a higher level of authority for certain types of claimants and sources of funds. 1.1.4 Ability to enforce certain expense items or claims requiring approval from a specified level of authority (e.g., an expense item occurring outside an acceptable claim period is approved by the appropriate member of Executive Council; business class airfare is approved by President or Provost; alternative approval rules when there is no one-over-one approver, etc.). 1.1.5 Ability to progress through the approval hierarchy in a timely manner. 1.1.6 Ability to identify, track and manage progress of claims (e.g. place on hold or move to alternate approver) which are not progressing through the approval hierarchy in a timely manner. 1.2 Advances 1.2.1 Ability to request, review, authorize, track and process cash advances. 1.2.2 Ability to request an advance payable in a currency other than the normal CAD currency. 1.2.3 Ability to release payment of advance on one or more dates for the same trip (i.e., release funds according to a payment schedule). 1.2.4 Ability to upload supporting documentation against an advance, including information from a website (e.g. conference prospectus). 1.2.5 Ability to allocate advance to one or more valid account codes. Each account code may have one or more reviewers and approvers. 1.2.6 Ability to provide and enforce rules for advances (e.g., advance must be approved up to and including 10 days before travel). RFP #13-007 Online Expense Claims System Page 14

1.2.7 Ability to optionally provide an advance that specifies a maximum amount that may be claimed when settling the advance. 1.2.8 Ability to notify claimant when period for the advance has ended and settlement is due. 1.2.9 Ability to notify claimant and approver when advance has not been settled in a timely manner (e.g., 30, 60 and 90 days after end of travel period). 1.3 Expense Claim 1.3.1 Ability for claimant or delegate 2 to enter and submit an expense claim. 1.3.2 Ability to save and update an expense report (or claim) by claimant or delegate before it is completed and/or during travel. 1.3.3 Ability for a reviewer or an approver to review/approve, modify or reject submitted expense claim. 1.3.4 Ability to enter expense claim information against an advance. 1.3.5 Ability to submit partial claims. 1.3.6 Ability to convert expenses denominated in a currency other than the payment currency (i.e. normally CAD currency). The exchange rate may be based on a system defined rate or a user specified rate. 1.3.7 Ability to submit expense claims payable to claimant in a currency other than the functional currency (i.e., CAD). For example, expense claims payable to visitors may be paid in foreign currency. 1.3.8 Ability to request additional information from claimants, delegates, reviewers, and/or approvers related to an expense claim. 1.3.8.1 Ability to collect wire payment information and instructions for currency other than CAD or USD. 1.3.8.2 Ability to add declarations, comments, or notes (e.g. explanation when boarding pass not available, purpose of trip or driving more than 500 km). 1.3.9 Ability to allocate expense items to one or more valid account codes. Each account code may have one or more reviewers and approvers. 1.3.10 Ability to permit a valid default account code for a claimant. 1.3.11 Ability to permit a valid default account code for all expense line items on a claim. 1.3.12 Validate reasonableness of the expense category given the nature of the expense (i.e. object of expense for travel, supplies, professional development, etc.). 1.3.13 Ability to calculate and account for tax rebates, where applicable. 1.3.14 Ability to track the claimant s affiliation with the university, such as employee, graduate student, undergraduate student, or visitor for use in approval hierarchy and reporting. 1.3.15 Ability to permit a type of expense claim that manages one or more claims up to a specified amount (e.g., claims for professional development expenses or for a don in residence, etc.). 2 For the purposes of this RFP, a delegate refers to someone who submits a claim on behalf of the claimant. A delegate is not to be confused with the role of alternate approver. RFP #13-007 Online Expense Claims System Page 15

1.3.16 Ability to provide for expense claims for a group where the system requires the names and affiliation of the group and checks whether the expense items are reasonable for the number of people involved. 1.3.17 Ability for claimant to certify business expenses are eligible, allocated to correct account number, documentation is complete and accurate, etc. upon submission. 1.3.18 Ability for claimant to deduct any personal amount from business transactions or expense claim. 1.4 Review/Approve 1.4.1 Ability to provide reviewers, approvers and administrators trends across claims by individuals, locations, types of trips (e.g. team travel or field trips) at department, faculty or university level. 1.4.2 Ability to detect and notify reviewers and approvers of exceptions in an expense claim. 1.4.3 Ability to identify expense claims with overlapping periods for a claimant. 1.4.4 Ability to review/compare multiple claims for a single trip by identifying claimants/expenses for a trip where multiple claimants are involved and cross-referencing expenses (i.e. each claimant claims his/her portion of meal or accommodation expenses). 1.4.5 Ability for reviewers/approvers to make minor changes/updates to claims. 1.4.6 Ability to certify business expenses are eligible, allocated to correct account number, documentation is complete and accurate, etc. when reviewing or approving. 2 Increase business-to-business transactions for university business Capability: Provide credit card and travel booking integration to streamline the processing of expense claims, reduce the financial burden to claimants and reduce end-to-end processing time. Features: 2.1 Ability to import expenses charged to a university credit card. Payment of credit card expenses may be personal liability (i.e. payment by the cardholder) or corporate liability (payment by the university). The system should distinguish which expenses are reimbursable and which ones are paid by the university upon review and approval. 2.2 Ability to provide non-exclusive, generic online travel bookings such as ground transportation, hotels, air, car rentals with University suppliers and/or other suppliers. 2.3 Ability to add, update and remove contracted travel service providers. 2.4 Ability to integrate government travel advisories with travel bookings (i.e., http://travel.gc.ca/travelling/advisories. 2.5 Ability to link or attach receipts to travel booking record. 2.6 Ability to notify/confirm travel to traveler and/or delegate. 2.7 Ability for an employee to book travel on behalf of others, such as students, visitors, etc. 3 Improve information about expenses for analysis, reporting and auditing RFP #13-007 Online Expense Claims System Page 16

Capability: Provide inquiry, delivered and adhoc reporting capabilities to improve processing, tracking, and decision-making regarding expense management and significantly reduce follow-up inquiries. Features: 3.1 Ability to provide information about advances and related expense claims. 3.2 Ability to determine status of claim. 3.3 Ability to search for expense claims, for example, by name, claim number, range of dates, range of amounts, etc. 3.4 Ability to analyze expense categories for claims, for example, type of travel (e.g. air, hotel) by geographic location, carrier, cost, duration, etc. 3.5 Ability to audit data including information such as: last updated, effective dates, who added, changed or deleted, and what was added, changed or deleted, timestamp, etc. 3.6 Ability to determine number of claims by status, by time period, how long to process, bottlenecks (e.g. approval chain), predicting cash flow, etc. 3.7 Ability to perform adhoc reports and save adhoc reports. 3.8 Provide a list of pre-defined reports and provide the ability to schedule the reports or run on demand. 3.9 Ability to export data from online inquiries and reports to spreadsheets. 4 Eliminate paper, where possible, and reduce storage needs Capability: Provide collection and management of receipts and supporting documentation, improve end-to-end processing time, support green information technology initiatives, reduce follow-up inquiries, reduce time to retrieve information Features: 4.1 Ability to scan and upload one or more receipts, invoices and related documents and attach to an expense claim or line items within the expense claim. 4.2 Ability to attach electronic receipts, invoices, and related documents to an expense claim. 4.3 Ability to handle exceptions where no receipts are submitted and are required. Can the system be configured to ask extra questions based on the nature of the expense? Examples include requesting a declaration when certain information is missing or indicating whether alcohol expenses are included in meal or hospitality expenses. 4.4 Ability to upload various formats for supporting documentation, such as html, pdf, email, etc. 5 Provide an integrated solution, particularly with existing processes in Oracle ebusiness Suite Financials system Capability: Provide integration, particularly with Oracle ebusiness Suite Financials system. Features: RFP #13-007 Online Expense Claims System Page 17

5.1 Ability to integrate with Oracle ebusiness Suite Financials Accounts Payable (ebusiness Suite Financials 11.5.10.2) to account for the expense report and issue payment. 5.2 Integrate the payment information from Oracle e-business Suite Accounts Payable module with the expense claim system (i.e. to provide payment method, payment date, etc.). 5.3 Ability to integrate with Oracle ebusiness Suite chart of accounts, including 31-digit account code and 8 segments (including codes and descriptions). Validation to occur against the 8 segments and 31-digit account number. 5.4 Notify claimant, reviewer, and/or approver when a transaction is in process and the account code becomes disabled or an account segment has expired. 5.5 Options and/or APIs available to integrate with: 5.5.1 claimant biographic information such as name, department, extension, university affiliation, etc. (Oracle/PeopleSoft HCM 9.1 and Oracle/PeopleSoft Campus Solutions 9.0), 5.5.2 currencies, currency rates and dates, 5.5.3 creation or maintenance of the approval hierarchy, 5.5.4 credit card transactions, 5.5.5 expense reports from a spreadsheet template, 5.5.6 active directory for user authentication and authorization, 5.5.7 automated provisioning/deprovisioning of user access, 5.5.8 approval hierarchy from an external source, 5.5.9 mobile devices and/or applications, 5.5.10 business intelligence reporting solutions (e.g., Cognos 7.x, Excel), 5.5.11 document management, and 5.5.12 instant messaging support. 6 Provide an user-friendly, secure, sustainable and supportable environment Capability: At a minimum, the system needs to be as proficient as the current paper-based system to gain user acceptance. A positive user experience and good system responsiveness is critical to the successful adoption of the system for all users, and especially for claimants. Transparency in the expense rules and ability to apply appropriate rules for the situation (i.e., determining what rules apply given the claimant s association with the University, nature of the expense and the source of funds, etc.) are critical success factors. Features: 6.1 Ease of Use/Workflow/Navigation 6.1.1 Easy to use interface which walks users through the process, such as greying out/hiding options when not required, prompts/triggers to do required actions, helpful suggestions, etc. 6.1.2 Ability to enter only required information, perhaps through cloning or copying previous similar claims and/or the use of templates as a starting point for claimant. 6.1.3 Ability to detect and notify warnings or errors as early in the process as possible. Data edits and validation on data entry. RFP #13-007 Online Expense Claims System Page 18

6.1.4 Ability to access external information, such as relevant/applicable policies and procedures for claim, or worklists/checklists. 6.1.5 Ability for users to access the system using mobile technologies. 6.1.6 Ability to provide help wizards through a variety of mediums, including: text, video, live links should be just enough, just in time. 6.1.7 Ability for users to personalize system, for example, set alerts and notification preferences. 6.1.8 Ability to integrate process and policy documentation to eliminate the need for standalone manuals. 6.2 System Configuration/Setup 6.2.1 Ability to add attributes (with corresponding rules) that can be used for processing and/or managing information. 6.2.2 Ability to create and manage groups of rules based on factors such as nature of expense, funding source, and claimant s University affiliation. 6.2.3 Ability to create and manage effective-dated rules or policies for expense claims (e.g., mileage rates, maximum meal costs, etc.). Does the system maintain rule changes against historical claims? 6.2.4 Ability to create and manage expense claim types or templates. 6.2.5 Ability to create and manage tolerance alerts/notifications. 6.2.6 Ability for system administrator to configure warnings and errors. Describe the degree of flexibility related to warnings vs. errors. 6.2.7 Ability to provide role-based security, with access controls at granular-levels based on assigned roles. 6.2.8 Ability to provide authorization controls based on a security group defined in Active Directory. 6.2.9 Ability to assign access rules to users and/or user roles to ensure access to appropriate information. 6.2.10 Ability to archive and purge data. 6.2.11 Ability to configure certification messages. 6.3 University of Waterloo s Computing Environment 6.3.1 Refer to Appendix C for an overview of the University of Waterloo s Computing Environment. 6.4 PCI compliance 6.4.1 Ensure PCI compliant collection/storage of credit card and banking information. University policy classifies credit card and banking information as Highly Restricted and should be collected and/or stored, only if absolutely necessary. SECTION 7.0: FEES AND COSTS RFP #13-007 Online Expense Claims System Page 19

Pricing model and fee schedule broken down into the following categories, where they apply. Include any additional fees/costs associated with environments required to support production (e.g., training, development, testing, and quality assurance (QA)): 7.1 Licensing 7.2 Maintenance 7.3 Customizations 7.4 Implementation 7.5 Hosting 7.6 Training 7.7 Other (specify) SECTION 8.0: OTHER CRITERIA 8.1. Bidder s approach to implementing and supporting the proposed system. Include details such as: implementation schedule and timeline given the University of Waterloo s size and complexity, resources that will be required from the University, resources provided by the bidder, configuration checklists, training documentation, ongoing support model(s), and policy for certification for the latest desktop operating systems and/or browser releases. 8.2 Bidder s approach to identifying and sizing any customizations to the proposed system to meet our full set of requirements. Include details such as the overall process, covering: project management, business analysis/design, development/testing/quality assurance/production migration (or best practices), implementation and customization ownership. 8.3 Bidder s approach to future upgrades. Include details regarding: major release frequency, minor release/hot fix frequency, input on future enhancements, ability to control timing, and technology refresh. 8.4 Bidder s ability to provide a hosted offering versus a solution that can be installed in our on-campus data centre. RFP #13-007 Online Expense Claims System Page 20

For a hosted solution, provide location and jurisdiction of primary and recovery data centres and any implications for data hosted outside of Canada. For a University-hosted solution, identify the types of technology required to be installed in our data centre. For disaster recovery/business continuity, outline ability to meet different levels of recovery time objectives (RTOs) and recovery point objectives (RPOs) in the event of a major disaster/outage. 8.5 Details on the overall application architecture and roadmaps covering: the scalability model to handle our size and volume, data model/database design diagram, technologies and platforms, and support for mobile devices. 8.6 Security features incorporated into your solution to safeguard records covered by the Freedom of Information and Protection of Privacy Act (FIPPA), PCI compliance (see https://www.pcisecuritystandards.org/ ) and compliance with other information security standards (e.g. NIST SP 800-53 or ISO 27000-series). 8.7 Level of compliance with Accessibility for Ontarians with Disabilities Act (AODA), in particular Web Content Accessibility Guidelines (WCAG 2.0) in bidder s solution. 8.8 Details on records management capabilities for data and document retention and destruction. 8.9 Details on bidder s general qualifications, including such factors as organization size, length of time in business, stability of organization and reputation, and familiarity with Canadian higher education institutions. 8.10 Three Canadian references with complete contact information; with at least one reference that has acquired and deployed the bidder s solution within the last three years. 8.11 Preferred term of contract to maintain bidder s solution as viable, scalable and flexible to meet the future needs of the University going forward. A sample contract, if provided, will be reviewed as a basis for this component. RFP #13-007 Online Expense Claims System Page 21

Appendix A SCENARIO EXAMPLES The use case scenarios described in Appendix A are of medium complexity. Additional scenarios describing various levels of complexity will be provided to the bidders who are invited to participate in the proof of concept. Use Case Scenario 1: Conference Trip with Multiple Funding Sources Use Case Element Summary Actors Description The summary is a description of the business process. A claimant, a university professor, has incurred out-of-pocket expenses to attend a conference in Europe and is requesting reimbursement. The expense claim contains expense items which are funded from different sources. Some expenses are charged to a research project which is funded by an external organization and expense eligibility is governed by the funding agreement. Other expenses are charged to a non-research project and expense eligibility is governed by university policy and practices. The expense claim is reviewed and approved by the appropriate parties. The claimant submits the expense claim after the claim period. The special condition requires an additional review and approval by the appropriate party. The expense claim is interfaced to Oracle E- Business Suite Financials Accounts Payable module for payment to the employee in CAD currency and to account for the transaction. Who (business role) is involved in the process? What is the knowledge set required to carry out the business function? Claimant - the degree of knowledge and familiarity with the expense claim process and its requirements varies by claimant. Department Reviewer administrative staff responsible for reviewing expense claims. Reviewers have ongoing experience in reviewing expense claims for reasonable, eligible business expenses, documentation System RFP #13-007 Online Expense Claims System Page 22

Use Case Element Systems Description and appropriate account numbers. However, the degree of knowledge about eligible expenses for research projects varies by department reviewer. Office of Research Compliance Officer administrative staff from the Office of Research has expertise in the requirements of funding agencies for research projects. The Compliance Officer ensures that expenses are eligible under the terms and conditions of the funding agreement, that documentation is appropriate and expense account is valid and appropriate. One-over-one Approver (i.e. Department Chair) relies on Department Reviewer and/or Office of Research Compliance Officer to identify exceptions. The degree of knowledge and familiarity with the expense claim process varies by approver. Approver for certain exceptions expense claim is submitted after 4 months from the end of the trip (i.e. after the claim period) and requires special approval by the Faculty Dean. What are the systems involved in the process? Provide a brief description of how the system is involved. University single sign-on is the ideal point-ofentry to the online expense claim system. System to obtain claimant biographical information. System(s) to obtain business rules and/or approval hierarchy. Online expense claim system manages the expense claim process. Configure certification messages for claimants, reviewers and approvers. Expense categories such as the following exist in the expense claim system and are applicable to this scenario: o o Conference registration requires conference prospectus if charged to a research project. Use of personal vehicle requires # of System RFP #13-007 Online Expense Claims System Page 23

Use Case Element Description System o o o kilometers travelled, dates of use and destination. Approved rate is $.45 per kilometer. Airfare must be economy class and boarding passes must be submitted. Hotel must be a reasonable rate. Meals the university requires original, detailed receipt for meal expenses and permits the following maximum amount: $70/day for meals in Canada $125/day for meals outside North America If the claimant does not have the required original, detailed receipt, the claimant must submit a declaration. Per diems are permitted when specifically stated in the funding agreement. Such is the case in this scenario. Waterloo employees are reimbursed in CAD currency for out-of-pocket expenses. Currency rates are uploaded to and populated in the expense claim system by currency, date and rate. HST Rebate is applicable if the expense was incurred in Ontario and includes HST. The rebate is calculated according to one of the following: o o Rate when specific HST amount is not known and HST is implied as part of the cost (i.e. use of personal vehicle, per diems, etc.): amount x 12/112 Rate when actual HST amount is known: HST amount * 74% Waterloo requires that expense claims be submitted within 1 month from the end of the trip and no later than 4 months from the end date. If submitted after 4 months, the claimant must substantiate why the claim is not submitted within the appropriate time. Additional approval is required by the RFP #13-007 Online Expense Claims System Page 24

Use Case Element Description appropriate member of Executive Council (i.e., the Faculty Dean). System Main Flow: Oracle E-Business Suite Financials, including Chart of Accounts, Accounts Payable and General Ledger modules. What are the conditions that must exist before the process can be executed? Claimant, reviewer and approver are authorized users of the online expense claim system. The faculty member will allocate some of the expenses to his/her research project which is funded by a Department of National Defense within the Government of Canada. The funding agreement permits per diems based on Treasury Board Rates which are available at: Preconditions http://www.njccnm.gc.ca/directive/app_d.php?lang=eng The faculty member does not have sufficient funds available in his/her research grant to cover all the costs. Accordingly, some of the costs will be allocated to a departmental expense account for which the faculty member has responsibility. The Department Chair approves the expense claim of all faculty members reporting to him/her. The Faculty Dean approves expense claims submitted beyond the claim period (i.e., after 4 months from the end date of the trip). Claimant Signs on to the expense claim system. System authenticates user. Gathers receipts for out-of-pocket expenses and documentation related to expense claim. Demonstrate that the claimant prepares the expense claim iteratively. Scan and upload receipts, invoices, and other RFP #13-007 Online Expense Claims System Page 25

Use Case Element Claimant (continued) Description Enter the expense accounts which are to be charged with the expenses: Research project expense account(s). Department s expense account(s). Enter the expenses and attach related documentation to expense claim or expense items including: Conference fee - registration fee includes certain meals. System documentation. Upload receipts, invoices and other documentation from a website (i.e. conference prospectus). Demonstrate that some receipts, invoices and documentation are attached at the claim header; whereas, other documents are attached at the expense line level. The system verifies that the 8 segments of the account number and that the 31- digit combination are valid and appropriate. Confirm conference prospectus is attached. Prompt claimant for additional information regarding relationship of conference to research project. Determine the number of meals included in the conference fee. The conference is outside RFP #13-007 Online Expense Claims System Page 26

Use Case Element Description System Claimant (continued) Use of personal vehicle - travel from Waterloo to Buffalo and return. Airfare from Buffalo airport to Europe and return. Airfare is for business class. Taxi to conference hotel upon arrival and return to airport for departure. Canada therefore HST Rebate is not applicable. Enter the kilometers driven and calculate the amount reimbursable. HST Rebate is applicable on the kilometers driven from Waterloo to the Canada/US Border. Import the airfare costs from the university s travel agency. The cost has been charged to a corporate credit card and paid by the university (i.e. ghost card). Airfare costs include $35.00 administrative fee plus HST. Enter the amount of the taxi fare in EUR currency and convert to CAD currency. Require a declaration since claimant does not have a receipt. Hotel conference Enter cost for hotel accommodation in EUR currency and convert to CAD currency based on a rate specified by the claimant. RFP #13-007 Online Expense Claims System Page 27

Use Case Element Description System Deduct personal expenses such as in-room movies which are ineligible. Claimant (continued) Department Reviewer Meal expenses Enter meal expenses in EUR currency and convert to CAD currency. Consider the following: Submits expense claim for review, approval and payment. The expense claim is submitted 5 months after the end date of the trip and is outside the acceptable claim period. Receives notice that the expense claim is submitted for review. the conference fee includes certain meals, the funding agency permits per diem; whereas, Waterloo permits meal expenses based on actual costs incurred up to a maximum and requires detailed, original receipts. System generates a certification message for claimant. System warns claimant that expense claim is submitted beyond the claim period and will be submitted for special approval. The system generates a notice to the Department Reviewer that expense claim is available for RFP #13-007 Online Expense Claims System Page 28

Use Case Element Office of Research Compliance Officer Description Receives notice that the expense claim is submitted for review. review. System The Department Reviewer is outof-office. Redirect expense claim to alternate reviewer. The reviewer reviews the expense claim and related documentation. The reviewer requests more information from the claimant regarding the relationship of the conference agenda to the research project. Upon receipt of the additional information the Department Reviewer completes the review. The system generates a certification message for the Department Reviewer. The system generates a notice to the Compliance Officer that the expense claim is available for review. The Compliance Officer reviews the claim for eligible items, appropriate RFP #13-007 Online Expense Claims System Page 29

Use Case Element Description System account allocation and appropriate documentation. The Compliance Officer reduces the amount reimbursable for airfare since the airfare is for business class rather than for economy class. Economy class airfare is eligible. The system generates a certification message for the Compliance Officer. Claimant Follows-up on the status of the expense claim. Claimant queries the expense claim to determine status. One-over-one Approver (i.e. Department Chair) Approver for special conditions (i.e. Faculty Dean who is a member of Executive Council) Receives notice that expense claim is submitted for approval and decides whether or not to approve the claim. Review the expense claim which was submitted after the claim period. The system generates a notice to the Approver that the expense claim is available for approval. The system generates a certification message for the Approver. The system generates a notice to the Faculty Dean that the expense claim is submitted for approval of claim period exception. Search for previous claims submitted by RFP #13-007 Online Expense Claims System Page 30

Use Case Element Claimant Finance Description Receives notice that the claim is approved and submitted for payment. Issues payment to claimant and accounts for the transaction(s). System claimant to ensure the claims were submitted within the claim period. Notify the claimant that claims must be submitted within the 4 month claim period. In future any claims submitted beyond the claim period will be denied. The system generates a certification message for the Approver for special conditions. System generates notice to claimant that expense claim is approved. System (Oracle ebusiness Suite Financials Accounts Payable and General Ledger modules) validates expense claim for payment and accounts for the expense claim in the general ledger. Finance pays expense claim to claimant electronically. Finance accounts for the payment in the general ledger. System updates RFP #13-007 Online Expense Claims System Page 31

Use Case Element Postconditions Business Rules Description What are the conditions that must exist after the process is executed? The expense claim is paid. Expense claim and related documentation is retained for seven years. Expense claim is available for inquiries, analysis, reporting and auditing. Describe governing rules, legislation, policy or other external considerations affecting the business process. Freedom of Information and Protection of Privacy Act (FIPPA) Personal Information Protection and Electronic Documents Act (PIPEDA) Ontario Bill 122 Broader Public Sector Accountability Act, including the Expense Directives University of Waterloo Policy 31, Travel University of Waterloo Guidelines for Hospitality Expenses Agreements with funding agencies System the expense claim system with the payment date and payment method. Use Case Scenario 2: Field Trip for Research Project Use Case Element Summary Description The summary is a description of the business process. A claimant, a university professor, has incurred out-of-pocket expenses to take a group of 5 students on a field trip for research purposes. The claimant is in the Math Faculty and is assisting a colleague from the Science Faculty with the research trip. The faculty member in the Science Faculty is the principal investigator System RFP #13-007 Online Expense Claims System Page 32

Actors Use Case Element Description for the research project. The trip starts in Waterloo, ON with a destination of Churchill, Manitoba. The trip duration is 5 days. The expenses are charged to a research project which is funded by an external organization. Expense eligibility is governed by the funding agreement which states that the funding agency accepts the university s policies and practices in determining eligible expenses. The expense claim is reviewed and approved by the appropriate parties. The principal investigator in the Science Faculty and/or his/her alternate approver authorizes the expense along with the Department Chair. The expense claim is submitted within 60 days of the end of the trip and is within the claim period. The expense claim is interfaced to Oracle E- Business Suite Financials Accounts Payable module for payment to the employee in CAD currency and to account for the transaction. Who (business role) is involved in the process? What is the knowledge set required to carry out the business function. Claimant - the degree of knowledge and familiarity with the expense claim process and its requirements varies by claimant. Department Reviewer administrative staff responsible for reviewing expense claims. Reviewers have ongoing experience in reviewing expense claims for reasonable, eligible business expenses, documentation and appropriate account numbers. However, the degree of knowledge about eligible expenses for research project varies by department reviewer. Office of Research Compliance Officer administrative staff from the Office of Research has expertise in the requirements of funding agencies for research projects. The Compliance Officer ensures that expenses are eligible under the terms and conditions of the funding agreement, documentation is System RFP #13-007 Online Expense Claims System Page 33

Systems Use Case Element Description appropriate and expense account is valid and appropriate. One-over-one Approver (both Principal Investigator and Department Chair) rely on the Department Reviewer and/or Office of Research Compliance Officer to identify exceptions. The degree of knowledge and familiarity with the expense claim process varies by approver. What are the systems involved in the process? Provide a brief description of how the system is involved. University single sign-on is the ideal point-ofentry to the online expense claim system. System to obtain claimant biographical information. System(s) to obtain business rules and/or approval hierarchy. Online expense claim system manages the expense claim process. Configure certification messages for claimants, reviewers and approvers. Expense categories such as the following exist in the expense claim system and are applicable in this scenario: o o o o Ground transportation to/from airport. Airfare must be economy class and boarding passes must be submitted. Accommodation must be a reasonable rate. Meals the university requires original, detailed receipt for meal expenses and permits the following maximum amount: $70/day X number of travelers for meals in Canada If the claimant does not have the required original, detailed receipt, the claimant must submit a declaration. Waterloo employees are reimbursed in CAD currency for out-of-pocket expenses. HST Rebate is applicable if the expense was incurred in Ontario and includes HST. The System RFP #13-007 Online Expense Claims System Page 34

Use Case Element Description System Pre-conditions Main Flow rebate is calculated according to one of the following: o o Rate when specific HST amount is not known and HST is implied as part of the cost (i.e. use of personal vehicle, per diems, etc.): amount x 12/112 Rate when actual HST amount is known: HST amount * 74% Manitoba does not participate in the harmonized sales tax (HST) program. Manitoba charges 5% federal GST and 7% provincial sales tax. GST Rebate for expenses incurred in Manitoba is calculated according to one of the following: o o Rate when specific GST amount is not known and GST is implied as part of the cost (i.e. use of personal vehicle, per diems, etc.): amount x 4/104 Rate when actual GST amount is known: GST amount * 67% Waterloo requires that expense claims be submitted within 1 month from the end of the trip and no later than 4 months from the end date. Oracle E-Business Suite Financials, including Chart of Accounts, Accounts Payable and General Ledger modules. What are the conditions that must exist before the process can be executed? Claimant, reviewer and approver are authorized users of the online expense claim system. The principal investigator (in the Science Faculty) or his/her alternate approver authorizes the expense claim which is charged to his/her research project by the claimant in the Math Faculty. Since the claimant and the principal investigator are peers, additional approval is required from the Department Chair. Claimant Signs on to the expense claim system. System authenticates user. Gathers receipts for out-of-pocket expenses and Scan and upload receipts, RFP #13-007 Online Expense Claims System Page 35

Use Case Element Description System documentation related to expense claim. Enter the expense account(s) which is (are) to be charged with the expenses. Enter the expenses and attach related documentation to expense claim or expense items including: Ground transportation from Waterloo to Toronto airport and return at end of trip. Ground transportation is for 5 students and professor from Math Faculty. Airfare the claimant paid for the economy class airfare out-of-pocket. All boarding passes, except 1, are submitted. Ground transportation in Churchill, Manitoba from airfield to accommodation and return. invoices, and other documentation. The system verifies that the 8 segments of the account number and the 31-digit combination are valid and appropriate. System recognizes that the cost of ground transportation is reasonable given the size of the group. HST Rebate is applicable on ground transportation in Ontario. System requires confirmation that boarding passes are submitted. Claimant indicates that return board pass for 1 of the travelers is not available and claimant completes a declaration. GST Rebate is applicable to the ground transportation. Accommodation at a reasonable rate. System verifies if the accommodation costs are reasonable for the size of the group. Meal expenses are greater than allowed for the size of the group. Original, detailed receipts are submitted. Submit the expense claim for review, approval and Waterloo permits meal expenses based on actual costs incurred and requires detailed, original receipts. System warns that meal costs are greater than permitted and costs are reduced to the eligible amount. The claimant requests an exception given the high cost of food in Churchill. The system generates a certification message for the RFP #13-007 Online Expense Claims System Page 36

Use Case Element Description System Department Reviewer Office of Research Compliance Officer Approver for the research project (i.e. Faculty member, also known as the Principal Investigator, in the Science Faculty who is responsible for the research project.) payment. Receives notice that the expense claim is submitted for review. Receives notice that the expense claim is submitted for review. Receives notice that expense claim is submitted for approval and decides whether or not to approve claim. Claimant. The system generates a notice to the Department Reviewer that expense claim is available for review. The reviewer reviews the expense claim and related documentation. The system generates a certification message for the Department Reviewer. The system generates a notice to the Compliance Officer that the expense claim is available for review. The Compliance Officer reviews the claim for eligible items, economy class airfare, appropriate account allocation and appropriate documentation. The Compliance Officer recommends that the excess meal amount not be approved since the additional expenses are ineligible under the funding agreement. The system generates a certification message for the Compliance Officer. The system generates a notice to the Approver for the research project that the expense claim is available for approval. The Approver for the research grant denies the additional amount for the meals. The system generates a certification message for the Approver for the research project. One-over-one Receives notice that the expense claim is The system generates a RFP #13-007 Online Expense Claims System Page 37

Use Case Element Approver (i.e. Department Chair) Claimant Finance Post-conditions Business Rules Description submitted for approval and decides whether or not to approve the expense claim. Receives notice that the claim is approved and submitted for payment. Issues payment to claimant and accounts for the transaction(s). What are the conditions that must exist after the process is executed? The expense claim is paid. Expense claim and related documentation is retained for seven years. Expense claim is available for inquiries, analysis, reporting and auditing. Describe governing rules, legislation, policy or other external considerations affecting the business process. Freedom of Information and Protection of Privacy Act (FIPPA) Personal Information Protection and Electronic Documents Act (PIPEDA) Ontario Bill 122 Broader Public Sector Accountability Act, including the Expense Directives System notice to the Department Chair that the expense claim is submitted for approval. The system generates a certification message for the One-over-one Approver. System generates notice to claimant that expense claim is approved. System (Oracle ebusiness Suite Financials Accounts Payable and General Ledger modules) validates expense claim for payment and accounts for the expense claim in the general ledger. Finance pays expense claim to claimant electronically. Finance accounts for the payment in the general ledger. System updates the expense claim system with the payment date and payment method. RFP #13-007 Online Expense Claims System Page 38

Use Case Element Description System University of Waterloo Policy 31, Travel University of Waterloo Guidelines for Hospitality Expenses Agreement with funding agency RFP #13-007 Online Expense Claims System Page 39

Appendix B SUBMISSION FORMAT General Requirements Use the following format to comment on the general requirements detailed in Section 6.0, and indicate if a particular feature already exists, if the feature is easily added and included as part of the implementation cost, or if the feature will require a separate customization at an incremental cost. In the chart below, provide overall commentary for each section on how complete your solution is relative to the following features. Identify any significant features that would be beneficial that are not covered, in Other. Item Existing Implementation Customization Comments Feature 1. Automate and streamline processing of claims 1.1 Approval Hierarchy 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 Other 1.2 Advances 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8 1.2.9 Other 1.3 Expense Claim 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.3.8 1.3.8.1 1.3.8.2 RFP #13-007 Online Expense Claims System Page 40

Item Existing Implementation Customization Comments Feature 1.3.9 1.3.10 1.3.11 1.3.12 1.3.13 1.3.14 1.3.15 1.3.16 1.3.17 1.3.18 Other 1.4 Review/Approve 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 Other 2 Increase business-to-business transactions for University business 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Other 3 Improve information about expenses for analysis, reporting and auditing 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Other 4 Eliminate paper, where possible, and reduce storage needs 4.1 4.2 4.3 RFP #13-007 Online Expense Claims System Page 41

Item Existing Implementation Customization Comments Feature 4.4 Other 5 Integrated solution, particularly with existing processes in Oracle ebusiness Suite Financials system 5.1 5.2 5.3 5.4 5.5.1 5.5.2 5.5.3 5.5.4 5.5.5 5.5.6 5.5.7 5.5.8 5.5.9 5.5.10 5.5.11 5.5.12 Other 6 Provide an user-friendly, secure, sustainable and supportable environment 6.1 Ease of Use/Workflow/Navigation 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.2 System Configuration/Setup 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 6.2.10 6.2.11 Other RFP #13-007 Online Expense Claims System Page 42

Item Existing Implementation Customization Comments Feature 6.3 University of Waterloo s Computing Environment 6.3.1 6.4 PCI Compliance 6.4.1 As noted in Section 7.0, Fees and Costs, please provide your pricing model and fee schedule broken down into the following categories, where they apply. Include any additional fees/costs associated with environments required to support production (e.g., training, development, test, QA): 1 Licensing 2 Maintenance 3 Customizations 4 Implementation 5 Hosting 6 Training 7 Other (specify) Please provide detailed responses to the following list, referring to Section 8.0 for additional information: 8.1. Bidder s approach to implementing and supporting the proposed system. 8.2 Bidder s approach to identifying and sizing any customizations to the proposed system to meet our full set of requirements. 8.3 Bidder s approach to future upgrades. 8.4 Bidder s ability to provide a hosted offering versus a solution that can be installed in our on-campus data centre. 8.5 Details on the overall application architecture and roadmaps. 8.6 Security features incorporated into your solution to safeguard records covered by the Freedom of Information and Protection of Privacy Act (FIPPA), PCI compliance (see https://www.pcisecuritystandards.org/ ) and compliance with other information security standards (e.g. NIST SP 800-53 or ISO 27000-series). 8.7 Level of compliance with Accessibility for Ontarians with Disabilities Act (AODA), in particular Web Content Accessibility Guidelines (WCAG 2.0) in bidder s solution. 8.8 Details on records management capabilities for data and document retention and destruction. 8.9 Details on bidder s general qualifications, including such factors as organization size, length of time in business, stability of organization and reputation, and familiarity with Canadian higher education institutions. RFP #13-007 Online Expense Claims System Page 43

8.10 Three Canadian references with complete contact information; with at least one reference that has acquired and deployed the bidder s solution within the last three years. 8.11 Preferred term of contract to maintain bidder s solution as viable, scalable and flexible to meet the future needs of the University going forward. A sample contract, if provided, will be reviewed as a basis for this component. RFP #13-007 Online Expense Claims System Page 44

Appendix C UNIVERSITY OF WATERLOO S COMPUTING ENVIRONMENT With computer security in the forefront as it currently is, and the University of Waterloo (Waterloo) running as many computer systems as it does, it is imperative that any new service, system and application integrate smoothly and without exposing new risks into the computing environment. Every client and department on campus has computing needs now that are being met by a variety of systems and services and are supported by an infrastructure that has evolved, to best meet all of their needs. As a result, any upgrade or addition of systems or applications should not compromise this existing model. This section exists to help better understand the Waterloo environment, and to ensure that new software and hardware requirements are presented, to properly integrate into the systems currently running at Waterloo. The primary Academic Support Windows environment at Waterloo is based on Microsoft s Active Directory Service. Servers and workstations are running the operating systems and service pack levels listed below. Waterloo runs Symantec Antivirus and utilizes Active Directory groups to keep resources limited to just those that need them, whenever possible. Most software is kept current using remote installation and upgrade procedures. This limits the time and reduces the support staff required to complete these tasks. Waterloo encourages web-based applications whenever possible, reducing the requirement for workstation software. All user level data is to be stored on central file servers, with application level data stored on applications servers and within databases. Such data storage ensures a proper backup architecture. Waterloo discourages terminal server or console access for anything other than maintenance, upgrades or monitoring to all servers after the initial install. Waterloo staff is available to assist in all phases of installation, integration and setup. The Supplier is responsible for keeping the software current and responding to most support issues unless otherwise negotiated. 10/100/1000 wired internet access is provided to all workstations and servers on campus. In addition, most of our campus is covered with wireless access to the campus infrastructure. Any and all software installed at the University of Waterloo must: Address the business needs of the individual constituencies and the University as a whole. Be reliable, scalable and flexible enough to address changing business practices. Not negatively affect current client productivity. Be able to meet the university's requirements for recovery time objectives (RTOs) and recovery point objectives (RPOs) in the event of a major disaster/outage. RFP #13-007 Online Expense Claims System Page 45

Waterloo Workstation Operating System Levels Operating System Supplier Current MacOS (about 5% of Apple 10.8 Mountain Lion workstations) Windows Microsoft, client Windows 7 Waterloo Server Operating System Levels Operating System Supplier Current Linux RedHat Linux RHEL 6 Unix Sun Solaris 10 Windows Microsoft Windows Server 2008 R2 64-bit Waterloo Database Levels Operating System Supplier Current Unix Oracle 11gR2 Windows Microsoft SQL Server 2008 R2 64- bit Waterloo Network Protocols 10/100/1000 Ethernet for wired (10/100/1000 for workstations), and 802.11a/b/g/n with SSL through a captive portal or 802.1x authentication is required for wireless. Layer 3 protocols must be TCP/IP. Supplier Software Requirements All software installed on both servers and workstations must function properly with the most current production operating system and the most recent Waterloo-tested service pack level. It must also coexist comfortably with other corporate applications already present. On the server side, Waterloo requires that all resources offered by the server have the capability to be locked down appropriately to only those who require access. Server administrative access must be used only to set up and configure the Supplier software. Daily client-side access to server resources is not to use local or remote server console access. Actual physical access to all servers will be restricted by Waterloo. On the workstation side, the Supplier s software must be multi-user and domain-authentication aware. This means it must install in such a way that authorized clients log on to that workstation with that users (non-administrative Windows) credentials, provided by Waterloo s existing Active Directory-enabled domain, and run the Supplier s software with these. This is required to protect the integrity of the workstation and to create an audit trail to tell us who logged in, and when. Waterloo prefers that all RFP #13-007 Online Expense Claims System Page 46

clients log on and run this Supplier software as standard user but would consider power user requirements only if: Waterloo is convinced that development is underway to update the Supplier s software to run as standard user in a near future upcoming release. And: Waterloo is provided with details as to what specific changes (e.g. file and registry access privileges) are required to make the Supplier s software run as standard user so Waterloo can visit making the appropriate changes in the interim ourselves. Daily operations as Windows administrators, or server console operation requirements, either remotely or directly will not be considered. A security hierarchy below administrator may be required to separate at least receiver and client inquiry functions. Workstation software that is installed via the standard Microsoft Windows Installer (MSI) interface is preferred. This allows: Installations to be installed and updated remotely, if required. Maintenance and customizations to be more easily and consistently applied. It is preferred that the Supplier s software leverages our Windows 2008 Active Directory and uses the already existing database of campus clients, instead of having to re-create a new user database. It is preferred that the Supplier s software immediately update the appropriate online database for all aspects of data entry. This avoids any store-and-forward delays otherwise experienced. Supplier Installation Requirements Supplier must provide detailed information on the following: The minimum server and workstation requirements needed to properly run the applicable software. How the workstation side is to interface with the server side of the applicable software. All port/protocol values that are required for access to the server to perform off-campus maintenance and troubleshooting. All port/protocol values that are required for hardware and the Supplier s software to properly interoperate, in case firewall changes need to be considered. A mapping of all communication requirements and protocols (including email) expected by the applicable installed software. Waterloo will provide: The Microsoft Active Directory, domain, member server and workstation expertise required to help set up the Supplier s software. RFP #13-007 Online Expense Claims System Page 47

Workstations and servers that meet or exceed expected security standards. Networking expertise as required. Assistance to ensure that the installation proceeds smoothly. RFP #13-007 Online Expense Claims System Page 48

Appendix D STANDARD TERMS AND CONDITIONS University of Waterloo (The Purchaser) Procurement and Contract Services All Purchase Orders issued by the University of Waterloo are subject to the following Standard Terms and Conditions. 1. Suppliers outside Canada must provide Canada Customs Invoices with fully completed shipment documentation in accordance with regulations, to the University of Waterloo's customs broker, noted on the Purchase Order. 2. All packages, packing slips, invoices, correspondence, customs documentation and freight bills of lading must have the complete Purchase Order number prominently displayed and packing slips must accompany all shipments. 3. Payments will be made in Canadian funds unless otherwise noted on the Purchase Order. Cash discounts are calculated from the date of invoice. 4. Applicable taxes are specified on the Purchase Order. 5. Unless otherwise stated, the price on the Purchase Order represents the complete cost to the Purchaser to the specified point of delivery; and includes every license fee, patent, royalty, government and municipal tax levy and charge of every description as well as charges for crating, boxing and cartage. 6. Time shall be of the essence of this contract. The goods/services must be delivered strictly in accordance with the quantities and specifications shown and on delivery date(s) specified. The Purchaser shall otherwise be at liberty to cancel this contract in whole or in part. 7. This order shall not be assigned in whole or in part without the previous written approval of the Purchaser. 8. Goods are subject to inspection by the Purchaser not withstanding prior payment. All or any goods received by the Purchaser will be subject to inspection and rejection by the Purchaser and if rejected may be held at the Seller's risk and exposure or returned at the Seller's expense. The Purchaser reserves the right to retain any portion or all of any shipment not strictly in accordance with the specifications and in such case will pay a reasonable price. However, retention shall not preclude the Purchaser from rejecting the remainder of the shipment or any part thereof in accordance with specifications. 9. All electrical/electronic components or equipment subject to standards approval for use/consumption in the Province of Ontario must conform to the standards approved by Canadian Standards Association (CSA). 10. Material Safety Data Sheets (MSDS) and appropriate labels must accompany all hazardous products as defined under the federal Hazardous Products Act and the provincial WHMIS legislation. 11. All goods and services provided to the University of Waterloo shall be in strict compliance with all current, and future revisions to, applicable legislation, safety and design codes and standards in Canada, specifically, but RFP #13-007 Online Expense Claims System Page 49

not limited to, a) the Occupational Health and Safety Act; b) the Transportation of Dangerous Goods Act; c) the federal Hazardous Products Act and the provincial WHMIS legislation for hazardous products; The Supplier shall comply with all applicable Laws, and all costs associated with compliance shall be borne by the Supplier. If the attention of the Supplier is called to any compliance violation, the Supplier shall be fully responsible in meeting legislative requirements and shall immediately desist from or correct such violation. 12. Prior to delivery of any goods/services to the University of Waterloo, the Supplier shall be the legal and beneficial owner, and shall have good and valid title to all goods/services sold or to be sold by the Supplier to the University of Waterloo under this Purchase Order. Title to goods/services shall pass to, and shall become the sole property of the University of Waterloo upon receipt to the premises designated by the University of Waterloo. 13. Until such time as title to these goods passes to the University of Waterloo, these goods shall remain in all respects at the risk of the Supplier. 14. The Supplier warrants that any goods, materials, articles or equipment, to be supplied under or pursuant to this Purchase Order, that are to be made or used for a particular purpose, will be fit and suitable for that purpose. 15. Goods shall conform to all Manufacturers' specifications and shall be new, unused and free of any defects in design, materials and workmanship under the University of Waterloo's intended use of the goods for the duration of the warranty period, unless otherwise specified in the contract. 16. Warranties shall apply notwithstanding any inspection, testing, acceptance of, or payment for the goods by the University of Waterloo. 17. All goods which are either defective or do not comply with the warranty, shall be repaired or replaced with new goods at no cost to the University of Waterloo at any time during the warranty period or at any time after the expiry of the warranty period if the defect or non-compliance arose during the warranty period. 18. The Supplier shall pay all royalties and license fees for patent to invention rights, copyrights, trademarks and service marks; and defend all suits or claims for the infringement of any patent to invention rights, trademarks and service marks involved in the items furnished in commitment to this Purchase Order. 19. The reproduction of the University of Waterloo names and trademarks is strictly limited to the Purchase Order and is not intended for any advertising, promotion or any other purpose other than that stated on the purchase order. 20. The University of Waterloo reserves the right to accept, reject or amend any insurance offered by the Supplier. Standard Terms and Conditions Revised as of March, 2012 Procurement and Contract Services University of Waterloo RFP #13-007 Online Expense Claims System Page 50