ATTACHMENT 1

Project Assessment Quotation

PAQ INFORMATION

Contract No.: MME HIT Services RFP PAQ No: 1PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS Total PAQ Amount:      

State Agency: DSS – MO HealthNet

State Agency Address:Department of Social ServicesMO HealthNet Division615 Howerton CourtJefferson City, MO 65102

ITSD Project Manager: Phone: /Email:

State Agency Project Manager: Phone: /Email:

Contractor Point of Contact:       Phone: ( 000 ) 000- 0000 / Email: First.Last@     

Contractor Company Name:       Phone: (000 ) 000- 0000 / FAX: (000 ) 000- 0000Contractor Address:     

List / Description of Attachments:     

This Project Assessment Quotation (PAQ) is pursuant to the Health Information Technology (HIT) Consulting Services Contract.  The Contractor agrees and understands that the terms and conditions specified in the HIT Consulting Services Contract apply to this PAQ, except where a term or condition in this PAQ is more restrictive than that in the HIT Consulting Services Contract, in which case the PAQ term will govern.

The contractor understands and agrees that funds required to fund the contract must be appropriated by the General Assembly of the State of Missouri for each fiscal year included within the contract period. The contract shall not be binding upon the state for any period in which funds have not been appropriated, and the state shall not be liable for any costs associated with termination caused by lack of appropriations.If under this contract you committed to use a MBE and/or WBE, please state if you intend to use a MBE and/or WBE for this PAQ. [Yes, No or N/A] If your response was “Yes,” please complete the information below for each MBE and/or WBE you propose for this PAQ (add lines as necessary):

MBE/WBE Name: Type: [MBE, WBE or Both]

Percentage or Dollar Amount of work that MBE/WBE will perform for this PAQ:

MBE/WBE Address: Specific work that MBE/WBE will perform, noting the PAQ provisions related to such work:

MBE/WBE Address: Specific work that MBE/WBE will perform, noting the PAQ provisions related to such work:

APPROVALS REQUIRED TO PROCEED DATE

Contractor:            

Agency/Program Approval:            

CIO Office:            

PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

PROJECT REQUIREMENTS

PROJECT GOALS AND OBJECTIVES:

Background

Missouri Medicaid Enterprise:

The purpose of the Missouri Medicaid Enterprise (MME) is to purchase and monitor health care services for low income individuals who are elderly, disabled, blind, members of families with dependent children, children and pregnant women in poverty, refugees, and children in state custody. The MME is operated by the Missouri Department of Social Services ("Department") as the designated State Medicaid Agency (SMA). The Department provides services that help vulnerable Missourians of all ages maintain or enhance their quality of life, which may be threatened by lack of financial resources, emotional crises, disabling conditions, or an inability to protect themselves. The MO HealthNet Division (the MHD) of the Department is responsible for administering the Missouri Medicaid Program. The MME also includes the following State Agencies:

a. The Family Services and Children’s Divisions of the Department are responsible for the Medicaid eligibility and enrollment functions.

b. The Missouri Medicaid Audit and Compliance (MMAC) Division of the Department of Social Services is responsible for the Medicaid program integrity functions.

c. The Division of Finance and Administrative Services (DFAS) of the Department is responsible for providing administrative support for MHD including Medicaid payment processing and financial reporting.

d. The Division of Legal Services (DLS) of the Department is responsible for all legal services related to the Medicaid program.

e. The Information Technology Services Division (ITSD) of the Office of Administration is responsible for development and operation of systems related to the Medicaid program.

f. The Missouri Department of Mental Health (DMH) is responsible for administering Medicaid waiver programs.

g. The Missouri Department of Health and Senior Services (DHSS) is responsible for administering Medicaid waiver programs.

The MHD is divided into four primary operational units: Program Operations, Information Systems, Finance, and Medical Services. The Program Operations unit includes Pharmacy Services, Clinical Services, Program Relations, Managed Care, and Waiver Programs. The Information Systems unit includes the Medicaid Management Information System (MMIS) and the Clinical Management Services and System for Pharmacy Claims and Prior Authorizations (CMSP). The Finance unit includes Financial Services and Reporting, Institutional Reimbursement, Waiver Financing, Rate Setting, Budget, Cost Recovery, Audit Services, Pharmacy Fiscal, and CMS Financial Reporting. The Medical Services unit includes Program Quality, Psychology, and Medical Services. All four units report to a Division Director and Deputy Division Director. MHD employs over 200 staff.

Key information regarding the Missouri Medicaid Program can be found at http://dss.mo.gov/mhd/general/pages/about.htm.

Medicaid Management Information System (MMIS):

MO HealthNet Division (MHD) receives claims for medical services performed by fee-for-service providers and encounter data submitted by managed care health plans. The primary MMIS is a computerized claims processing system that assists the MHD staff with the claims and encounter processing, provider payment, and reporting business functions including recording, sorting, classifying and adjudicating claims; issuing checks or notices of denial of claims; issuing

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

monthly invoices for spenddown and premium collections; and reporting (weekly, monthly, quarterly, annually and ad-hoc). Guidance for the development and maintenance of the MMIS is provided by the Federal government's Centers for Medicare and Medicaid Services (CMS) – see https://www.cms.gov/MMIS/ and http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Data-and-Systems/MMIS.html .

The current primary MMIS solution was implemented in 1979 and has gone through many modifications over the past 34 years. The MMIS core is a mainframe system. Web portals have been created to facilitate system interactions for State staff and providers. Providers submit either electronic HIPAA-compliant Electronic Data Interchange transactions or direct data entry through a web portal or paper claims. Approximately 99% of all claims are submitted electronically. Paper claims are scanned or manually entered into the MMIS. Once claims are in the MMIS, various batch processes and jobs are used to complete the claims adjudication, payment, and other processes. On an annual basis, the current MMIS processes over 95 million claims received from over 800 claims transactions submitters representing an average of over 8,000 providers in each payment cycle.

The current Missouri MMIS Fiscal Agent is Wipro Infocrossing, Inc., who is responsible for the maintenance, operation, and development of the primary MMIS. The current Fiscal Agent contract commenced in 2007. A copy of the current Missouri MMIS contract will be made available upon request by a vendor. The primary services provided by Wipro Infocrossing, Inc under the Fiscal Agent contract are as follows:

Development, operation, and maintenance of the MMIS including the provider and MHD portals, claims processing, financial subsystem, and provider enrollment

Hosting of system hardware Development, operation, and maintenance of the Decision Support Systems including Ad Hoc Reporting,

Surveillance & Utilization Review, and Management and Administrative Reporting Prior-Authorization and Pre-Certification of Participant Services Operation of the Participant Services, Provider Relations, and Clinical Authorizations (Pharmacy, Medical,

Psychology) Call Centers and the MMIS Help Desk Managed Care Enrollment Broker Third Party Liability Cost Avoidance Issuance of Medicaid Participant Identification Cards Distribution of provider manuals Mailroom and Data Entry Imaging of all paper documentation Project Management services

The MME anticipates having the following projects in progress during State Fiscal Year 2015 (FY15) and State Fiscal Year 2016 (FY16):

1. The MMIS has been modified and enhanced numerous times to add new components and functionality. Most recently, the current MMIS contract includes 19 separate enhancements to the MMIS including migration to a relational database and implementation of a rules engine. These enhancements have lengthened the useful life of the existing system. Following is a list of the active enhancement projects:

i. MMIS Reengineering Enhancement 16: Metadata Management, Including SQL-Based Reporting and Queries – Implementation of a data warehouse and reporting system to support financial reporting. This project is currently on hold with no planned start or finish date.

ii. MMIS Reengineering Enhancement 8: Rules Engine for All Business Processes and Pricing Methodologies – Second phase of a project to move all claims adjudication and pricing into a rules engine. Iteration 1 of this project is currently in execution with a target completion date of April 2016 for Interation 3.

2. MHD plans to implement the following federal mandates requiring substantial MMIS development efforts:

i. HIPAA 2 International Classification of Diseases Version 10 (ICD-10) Code Set Implementation – Page 3 of 13

PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

45 CFR Part 162 [CMS-0013-F] CMS Mandated Implementation Date October 1, 2013. This project is currently focused on provider outreach and testing in preparation for the mandated implementation date of October 1, 2014. All MMIS modifications have been implemented into the production system, but are not yet operational. The planned project completion is March 31, 2015.

ii. CAQH Committee on Operating Rules for Information Exchange (CORE) – Implementation of CAQH CORE Operating Rules Phase IV for Claims or Equivalent Encounter Information, Enrollment/Disenrollment in a Health Plan, Health Plan Premium Payments, Referral Certification and Authorization, and Claims Attachments. The project to implement Phase IV is in the planning phase awaiting issuance of the final rules by CMS on July 1, 2014. The planned completion is June 30, 2016.

iii. Certification of compliance with HIPAA and the CORE Operating Rules as required by the proposed rule 45 CFR Parts 160 and 162 Administrative Simplification: Certification of Compliance for Health Plans. This project is in the planning phase awaiting issuance of the final rules by CMS with planned completion date of December 31, 2015.

3. The MME plans to implement the following systems related to the MMIS to improve business operations and comply with program changes mandated by the Patient Protection and Affordable Care Act (ACA):

i. The MME intends to implement a provider enrollment solution to replace the existing provider enrollment subsystem within the MMIS and a case management solution to support the program integrity business function. This project is awaiting final approval from CMS. There is no planned start or completion date at this time.

ii. The MME is implementing the Missouri Eligibility Determination and Enrollment System (MEDES) for managing participant enrollment in the Missouri Medicaid program using the Modified Adjusted Gross Include (MAGI) eligibility rules. The MEDES implementation includes implementation of a premium collection system, a Managed Care enrollment web portal for participants, and changes to MMIS eligibility interfaces. Each of these projects require MMIS modifications and/or testing. The planned completion date is December 31, 2015.

Project Goals and Objectives

The MME’s overall goal is the successful implementation of the MMIS enhancements and federally-mandated program changes. By providing an independent evaluation of project management, assessment of project progress, and identification of key project risks and issues and potential barriers, the IV&V function is considered key to supporting this success.

1. MHD committed to procuring IV&V services in the MMIS Advance Planning Document (APD) to monitor the MMIS system enhancement projects. Pursuant to guidance issued in 45 CFR Part 95.626 (see Exhibit A), IV&V services should be applied to projects involving system redesign. During the term of this PAQ, MHD plans to continue development efforts related to the following MMIS system enhancements and MMIS related projects:

a. MMIS Reengineering Enhancement 16: Metadata Management, Including SQL-Based Reporting and Queries

b. MMIS Reengineering Enhancement 8: Rules Engine for All Business Processes and Pricing Methodologies

c. Provider Enrollment and Case Management replacement modulesd. The project activities within the MEDES implementation directly related to modifications and/or testing

within the MMIS for eligibility determination, premium collections, Managed Care web portal for Page 4 of 13

PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

participants, and MMIS eligibility interface changes.

2. Pursuant to guidance issued in 45 CFR Part 95.626 (see Exhibit A), IV&V services should be applied to projects at risk of missing regulatory deadlines for automation that is intended to meet Medicaid program guidelines. During the term of this PAQ, MHD has three active projects with mandated implementation dates intended to meet program guidelines requiring substantial MMIS development efforts as follows:

a. HIPAA 2 International Classification of Diseases Version 10 (ICD-10) Code Set Implementation – 45 CFR Part 162 [CMS-0013-F]. Mandated Implementation Date October 1, 2014.

b. CAQH Committee on Operating Rules for Information Exchange (CORE) – Implementation of CAQH CORE Operating Rules Phase IV for Claims or Equivalent Encounter Information, Enrollment/Disenrollment in a Health Plan, Health Plan Premium Payments, Referral Certification and Authorization, and Claims Attachments. Mandated Implementation Date January 1, 2016.

c. Certification of compliance with HIPAA and the CORE Operating Rules as required by the proposed rule 45 CFR Parts 160 and 162 Administrative Simplification: Certification of Compliance for Health Plans.

PROJECT APPROACH AND SCOPE OF WORK:The Contractor’s PAQ Response should include a Project Overview, Resource Resumes, Approach/Methodology, Sample Weekly Project Assessment Report, Issue Tracking Plan, Assumptions and Quality Assurance Plan. The Contractor must provide a detailed description and firm, fixed price for each deliverable. The description must specify the tasks to be completed for each deliverable and the time frames in which the tasks will be completed.

General Requirements

1. The Contractor shall provide Independent Verification and Validation services for all projects described under the Project Goals and Objectives section of this PAQ. If the need arises for IV&V services for additional projects, the Contractor, MHD, and ITSD will agree on the scope, timing, and cost before the commencement of work and will complete a PAQ amendment.

2. The Contractor staff shall perform most work onsite at the office of the MMIS Fiscal Agent in Jefferson City, Missouri. The Contractor staff are expected to be onsite at this location from 8:00 am to 5:00 pm Monday through Friday excluding State holidays. The Fiscal Agent will provide the Contractor with access to the building during normal business hours. The Contractor shall provide the equipment and supplies necessary for Contractor staff. All Contractor efforts shall be coordinated through the MHD Director of Information Systems and the ITSD MMIS Director.

3. By submitting a response to this PAQ, the Contractor covenants that at the time of the submission of the response to the PAQ the Contractor has no other contractual relationships which would create any actual or perceived conflict of interest. This would include any contractual relationships as the primary contractor on the current MMIS contract and any contractual relationships as a subcontractor to the primary contractors on the MMIS contract. The Contractor further agrees that during the execution of this PAQ neither the Contractor nor any of its employees shall acquire any other contractual relationships which create such a conflict. The Contractor further agrees that the Contractor shall not participate as a primary contractor or subcontractor to the primary contractor in any responses submitted to a Request for Proposal for the procurement of MMIS solutions.

4. The specific number of project artifact reviews, assessments of project readiness for entrance into or exit from project phases, and project meetings to be provided under this PAQ are unknown at this time.  Based on past experience, three full-time, qualified staff are sufficient to complete the tasks as defined below for the projects specified in this PAQ.  However, the State of Missouri makes no guarantee regarding the accuracy of this estimation.

5. The cost evaluation for this PAQ will be worth a total of 50 points. The offeror shall provide a firm-fixed price for delivery of the weekly project assessment reports. The project assessment reports shall list the project

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

meetings attended by Contractor staff as defined below in task #1, 6 & 7, the project artifact reviews completed as defined in task #2 below, the project readiness assessments for entrance into or exit from project phases completed as defined in task #3, the overall health assessment of projects as defined in task #4, and assessment and certification reports as defined in task #5 below during the week. Acceptance of the weekly project assessment reports shall be partially dependent upon successful completion of these tasks.

6. The Contractor shall provide staff qualified to perform the verification and validation function on the MME projects. The Contractor shall provide a minimum of two (2) staff with at least four (4) years experience coordinating or managing Medicaid information technology projects such as an enhancement to an MMIS or implementation of a federally-mandated Medicaid program change (e.g. the 5010 transaction set changes). The Contractor shall also provide a minimum of one (1) staff with at least three (3) years experience providing Independent Verification and Validation services on Medicaid or Department of Health and Human Services projects. An individual staff member may be used to help fulfill both requirements if that individual has the requisite Medicaid project management and IV&V experience. The State prefers IV&V staff with a Project Management Professional certification from the Project Management Institute.

7. All correspondence and documentation shall be delivered in electronic format, unless the MHD Director of Information Systems and the ITSD MMIS Director instruct the Contractor otherwise. All Contractor deliverables shall be submitted to the MHD Director of Information Systems and the ITSD MMIS Director for final written acceptance and approval. The Contractor shall provide the weekly project assessment report directly to the designated MMIS representative at the CMS Regional Office. The Contractor shall use Microsoft Office automation tools when using electronic tools to present their information. The format for the deliverables shall be agreed upon with the MHD Director of Information Systems and the ITSD MMIS Director.

8. Payments shall be authorized upon written acceptance and approval by the MHD Director of Information Systems and the ITSD MMIS Director of the identified deliverables. The MHD Director of Information Systems and the ITSD MMIS Director will respond in writing within ten (10) business days after receipt of a deliverable, unless otherwise noted in the statement of work. If the deliverable and/or work product are not acceptable, the MHD Director of Information Systems and the ITSD MMIS Director will identify said deficiencies which the Contractor must resolve or have a written plan for resolving to the MHD Director of Information Systems and the ITSD MMIS Director within ten (10) business days after receipt of the notification

9. All materials, documentation, reports, and presentations created during fulfillment of this PAQ shall be provided to MHD and ITSD and shall be made available to CMS and other SMAs through the MHD website or through response via email to requests submitted from those entities.

10. Immediately upon receipt of the signed PAQ, the Contractor shall begin the process of familiarization with the MMIS projects and planning of the work to be accomplished. The Contractor shall conduct introductions and interviews with MHD, ITSD, and Fiscal Agent project staff , review related contract documents, review the most recent MITA self-assessment report, and review existing project artifacts.

11. The Contractor shall assign staff to the MMIS projects and provide the list of assignments to MHD, ITSD, and the Fiscal Agent.

12. The Contractor shall develop a strategy for the application of IV&V services to the MMIS projects and provide the strategy to MHD, ITSD, and the Fiscal Agent.

13. The Contractor shall perform periodic reviews and evaluations of the Software Development Life Cycle (SDLC) methodology utilized by MHD, ITSD, and the Fiscal Agent and submit recommendations for improvements to the MHD Director of Information Systems and the ITSD MMIS Director.

Task #1: Participate in Project Meetings

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

1. Contractor staff shall participate in key project meetings including weekly project status meetings, requirements gathering, design sessions, risk and issue reviews, reviews of project deliverables, project phase entrance and exit review meetings, and other project meetings deemed necessary by project staff and maintain notes from the meetings.

2. The Contractor team lead shall participate in MMIS Steering Team Meetings with MHD, ITSD, and Fiscal Agent staff and maintain notes from the meetings.

Task #2: Review Project Artifacts

1. Contractor staff assigned to an MMIS project shall review and provide comments on key project artifacts including the following. The project artifacts shall be evaluated for completeness, accuracy, timeliness, alignment with project needs, and conformance with applicable generally-accepted project management and quality standards including those standards promulgated by the Project Management Institute (PMI), the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the Institute of Electrical and Electronics Engineers Standards Association (IEEE-SA), and the National Institute of Standards and Technology (NIST). The Contractor staff shall complete the reviews within ten (10) business days of receipt of the artifacts, complete a comment log, and review the responses to any comments within seven (7) business days of receipt.

a. Project Charterb. Project Phase Entrance & Exit Criteriac. Change Requestsd. Communication Planse. Risk and Issue Matrixesf. System Development Approachg. Detailed Work Planh. Requirements Definition and Analysis Documentsi. System Functional Design Documentsj. Testing Plans including Unit, System, User Acceptance, and Partner Testingk. Testing Results including Unit, System, User Acceptance, and Partner Testingl. Data Migration and Conversion Plansm. Interface Plansn. System Documentationo. Training Plansp. Weekly Project Status Reportsq. Implementation Plansr. Post Implementation Reportss. Project Lessons Learnedt. Project Closure Documents

Task #3: Assess readiness for project phase entrances and exits.

1. The Contractor shall review the project phase entrance and exit criteria established for each project and provide a written assessment to the MHD Director of Information Systems and the ITSD MMIS Director of the project readiness for entrance into or exit from each project phase.

2. The Contractor shall participate in the readiness assessment for entrance into or exit from project phases and provide feedback to the MHD and ITSD staff regarding the Contractor’s assessment.

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

3. The format for the written readiness assessments shall be agreed upon with the MHD Director of Information Systems and the ITSD MMIS Director.

Task #4: Assess overall health of projects.

1. Consult with key project stakeholders and assess involvement and buy-in to the project scope and success and alignment of the project to the business needs.

2. Communicate with the MHD and ITSD Project Managers on business risks and issues, working to ensure these risks and issues have been reflected in the overall project schedule and priorities.

3. Work with the MHD and the ITSD to ensure that requirements are prioritized based on the needs of the business owners.

Task #5:  Assess the State Medicaid Agency for readiness for transition/project implementation and achievement of CMS-defined critical success factors or certify compliance with regulatory requirements if/as required by CMS.

1. The Contractor shall assess projects if/as defined by CMS for each project defined within the scope of this PAQ.  The assessment will consist of validating MHD’s execution of the assessment/certification processes and testing outcomes as defined by CMS.

2. The Contractor will utilize the confirmation processes and testing/critical success factors defined by CMS or an entity named by CMS to verify the project’s compliance.

3. A written assessment and certification report will be provided to the MHD Director of Information Systems, the ITSD MMIS Director, and the CMS Regional Office which specifies the project’s level of compliance for each defined criteria/success factor.

4. The format for the IV&V assessment and certification report shall meet the requirements established by CMS or the designated entity and be agreed upon with the MHD Director of Information Systems and the ITSD MMIS Director.

Task #6: Participate in meetings with MHD and ITSD Project Managers

1. The Contractor shall participate with the MHD and ITSD Project Managers in meetings upon request to review the deliverables from this PAQ, discuss the efforts of the Contractor’s staff, and identify opportunities for improvement in the IV&V services.

2. The Contractor shall meet with the ITSD MMIS Director weekly to review the status of the project and discuss any issues with contractor performance.

Task #7: Participate in meetings with the MHD Director of Information Systems, the ITSD MMIS Director, and the Fiscal Agent to discuss improvements to the SDLC methodology and the Project Management methodology.

1. Provide recommendations for improvements based on IV&V findings, best practices, and experiences with projects completed for other State Medicaid programs.

LIST OF DELIVERABLES:

Weekly project assessment reports.

DELIVERABLE ACCEPTANCE CRITERIA:

The weekly project assessment reports shall list the project meetings attended by Contractor staff, the project artifact

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

The Contractor shall provide a weekly project assessment report to the MHD Director of Information Systems and the ITSD MMIS Director including the following information for each active project included within the scope of this PAQ as defined in the Project Goals and Objectives:

1. Status assessment for the overall project and for the aspects of project management including schedule management, scope management, quality management, risk and issue management, resource management, organizational change management, and technical management.

2. Key project risks and issues arising from deficiencies in project management and recommendations for addressing these.

3. Key project risks, issues, and defects identified through verification and validation.

4. Key project metrics for measuring overall project progress towards completion and achievement of project goals and objectives.

5. Recommendations for improvements to MHD, ITSD, and Fiscal Agent project management and Systems Development Life Cycle (SDLC) methodology.

6. Listing of project artifacts reviewed by Contractor staff, project meetings attended by Contractor staff, assessment and certification reports worked on, and assessments of readiness for project phase entrances and exits completed during the week.

7. Contractor staff assigned to each project during current and following week.

The format for the weekly status reports shall be agreed upon with the MHD Director of Information Systems and the ITSD MMIS Director. Attached is a sample of the weekly status report that has been produced in the past.

The weekly project assessment report shall be provided no later than 5:00 pm Central Standard Time on the Monday following the reporting week.

reviews completed, and the project readiness assessments for entrance into or exit from project phases completed during the week. Acceptance of the weekly project assessment reports shall be partially dependent upon successful completion of these tasks. The project assessment report will conform with the agreed upon format, content, and scope.

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

AGENCY TASKS and/or ITSD RESPONSIBILITIES:

1. The State shall assign the MHD Director of Information Systems and the ITSD MMIS Director as the Contractor’s primary Points of Contact.

2. The State will assign MHD and ITSD staff to assist Contractor with identifying State resources, scheduling meetings, and coordinating use of State resources

3. The State will make every effort to have the appropriate Medicaid staff available to the Contractor personnel on a timely basis

4. The State will make every effort to make necessary program and system documentation available on a timely basis

5. The State will perform timely review and approval of deliverables

Project Estimated Start Date: Project Estimated End Date: Total duration = 2 State fiscal years

PAYMENT MILESTONESMilestones must contain all deliverables referenced in the Deliverables Section and must be concrete, measurable, and be able to be tested and verified before the State will approve payment. Milestone prices must be firm and fixed, and without reference to time spent.

The state shall be invoiced on a monthly basis for the project assessment reports accepted during that month. (The monthly billing may be split during State fiscal year end)

LIST OF DELIVERABLES/PRICING PER DELIVERABLE

CONTRACTING STAFF PRICE CALCULATIONSThe chart below shows how the contractor calculated the price of providing the deliverables.  The chart references hours but does not

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Deliverable Unit of Measure*Maximum Quantity of Deliverable

Firm, Fixed Unit Price for

each item in the Deliverable

*Total Maximum Cost (Maximum Quantity x Firm, Fixed Unit Price)

The Contractor shall provide a project assessment report to the MHD Director of Information Systems and the ITSD MMIS Director including the information outlined in the deliverables section above for each active project included within the scope of this PAQ.

Weekly for Weeks Ending on Friday During Period of

Date through Date (First year)

52

The Contractor shall provide a project assessment report to the MHD Director of Information Systems and the ITSD MMIS Director including the information outlined in the deliverables section above for each active project included within the scope of this PAQ.

Weekly for Weeks Ending on Friday for

Period of Date through Date (second year)

53

TOTAL: $      

PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

mean that the contractor will be paid by the hour; the contractor will be paid the firm, fixed price of each deliverable that the contractor actually provides and that the State approves and accepts using the method set forth in the acceptance criteria and accepted by the State.

ConsultantClassification Title

On-SiteNon-LocalPer Hour Rates to

Include Travel Expenses

On-Site Non-Local

Consultant Total Project

Hours

On-Site/Off-Site Consultant Per Hour Rates

(No Travel Expense Allowed)

On-Site/Off-Site Consultant (No Travel Expense

Allowed)Total Project Hours

Total

      $       x     Hours + $       x     Hours = $            $       x     Hours + $       x     Hours = $            $       x     Hours + $       x     Hours = $            $       x     Hours + $       x     Hours = $            $       x     Hours + $       x     Hours = $            $       x     Hours + $       x     Hours = $            $       x     Hours + $       x     Hours = $      

Total: $     

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

******* FOR STATE ITSD USE ONLY*******This portion of the document forward sets out the funding formation for this project and is internally used. This

portion forward may change as time goes on, but sets no terms and conditions or requirements for the vendor.

STATE STAFF TIME ALLOCATION

Role Agency Hours Allocated to the Project

Subject Matter Expert ITSD     HoursSubject Matter Expert ITSD     HoursSubject Matter Expert ITSD     HoursSubject Matter Expert ITSD     HoursSubject Matter Expert ITSD     HoursSubject Matter Expert ITSD     HoursSubject Matter Expert ITSD     HoursFUNDING INFORMATIONAccounting No: PAQOrg#1000 000Funding Codes to be used with PAQ:Milestone # Fund Org/Sub Activity Obj,/Sub Rept. Cat Agency Appr, Unit Function Amount/% Budget Line #                                                                 Milestone # Fund Org/Sub Activity Obj,/Sub Rept. Cat Agency Appr, Unit Function Amount/% Budget Line #                                                                 Milestone # Fund Org/Sub Activity Obj,/Sub Rept. Cat Agency Appr, Unit Function Amount/% Budget Line #                                                                 Milestone # Fund Org/Sub Activity Obj,/Sub Rept. Cat Agency Appr, Unit Function Amount/% Budget Line #                                                                 Milestone # Fund Org/Sub Activity Obj,/Sub Rept. Cat Agency Appr, Unit Function Amount/% Budget Line #                                                                 Milestone # Fund Org/Sub Activity Obj,/Sub Rept. Cat Agency Appr, Unit Function Amount/% Budget Line #                                                                 

Total Amount      Estimated Cost: $      PO # Assigned to PAQ (Provided by BU at PO entry):      

If applicable, has IASA been established?      GASB CODING INFORMATION

Milestone(s) # Phase      Project Code      Q-Preliminary work      X-Development work      Y-Post Implementation/Maintenance work      9-Projects not related to an IT application

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PAQ Title: Independent Verification and Validation (IV&V) Services for the MMIS PAQ #: 1

EXHIBIT A

Title 45: Public WelfarePART 95—GENERAL ADMINISTRATION—GRANT PROGRAMS (PUBLIC ASSISTANCE, MEDICAL ASSISTANCE AND STATE CHILDREN'S HEALTH INSURANCE PROGRAMS) Subpart F—Automatic Data Processing Equipment and Services—Conditions for Federal Financial Participation (FFP) Specific Conditions for FFP

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1) § 95.626   Independent Verification and Validation.

(a) An assessment for independent verification and validation (IV&V) analysis of a State's system development effort may be required in the case of APD projects that meet any of the following criteria:

(1) Are at risk of missing statutory or regulatory deadlines for automation that is intended to meet program requirements;

(2) Are at risk of failing to meet a critical milestone;

(3) Indicate the need for a new project or total system redesign;

(4) Are developing systems under waivers pursuant to sections 452(d)(3) or 627 of the Social Security Act;

(5) Are at risk of failure, major delay, or cost overrun in their systems development efforts;

(6) Fail to timely and completely submit APD updates or other required systems documentation.

(7) State's procurement policies put the project at risk, including a pattern of failing to pursue competition to the maximum extent feasible.

(8) State's failure to adequately involve the State program offices in the development and implementation of the project.

(b) Independent Verification and Validation efforts must be conducted by an entity that is independent from the State (unless the State receives an exception from the Department) and the entity selected must:

(1) Develop a project workplan. The plan must be provided directly to the Department at the same time it is given to the State.

(2) Review and make recommendations on both the management of the project, both State and vendor, and the technical aspects of the project. The IV&V provider must give the results of its analysis directly to the federal agencies that required the IV&V at the same time it reports to the State.

(3) Consult with all stakeholders and assess the user involvement and buy-in regarding system functionality and the system's ability to support program business needs.

(4) Conduct an analysis of past project performance sufficient to identify and make recommendations for improvement.

(5) Provide risk management assessment and capacity planning services.

(6) Develop performance metrics which allow tracking project completion against milestones set by the State.

(c) The acquisition document and contract for selecting the IV&V provider (or similar documents if IV&V services are provided by other State agencies) must include requirements regarding the experience and skills of the key personnel proposed for the IV&V analysis. The contract (or similar document if the IV&V services are provided by other State agencies) must specify by name the key personnel who actually will work on the project. The acquisition documents and contract for required IV&V services must be submitted to the Department for prior written approval.

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