Workers Compensation Administration (WCA) Information

Workers Compensation Administration (WCA) Information Technology (IT)

Modernization Project

Project Charter

Executive Sponsor – Loretta Lopez, WCA Director Business Owner - Leigh Martinez, WCA Executive Deputy Director

Original Plan Date: April 12, 2021 Revision Date: May 17, 2021 Revision: Version .06 (Draft)

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TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................................................... I

1.0 PROJECT BACKGROUND ................................................................................................................................... 1

1.1 Executive Summary -rationale for the project .................................................................................................... 1 1.2 Summary of the foundation planning and documentation for the project ........................................................ 1 1.3 Project Certification Requirements .................................................................................................................... 2

2.0 JUSTIFICATION, OBJECTIVES AND IMPACTS ...................................................................................................... 3

2.1 Agency Justification ............................................................................................................................................ 3 2.2 Business Objectives ............................................................................................................................................. 3 2.3 Technical Objectives ........................................................................................................................................... 4 2.4 Impact on Organization ...................................................................................................................................... 4 2.5 Transition to Operations ..................................................................................................................................... 5

3.0 PROJECT/PRODUCT SCOPE OF WORK .............................................................................................................. 6

3.1 Deliverables ........................................................................................................................................................ 6 3.1.1 Project Deliverables ..................................................................................................................................... 6 3.1.2 Product Deliverables ................................................................................................................................... 7

3.2 Success and Quality Metrics ............................................................................................................................... 8

4.0 SCHEDULE ESTIMATE ....................................................................................................................................... 8

4.1 Estimated Tasks, Activities, and Milestones ....................................................................................................... 9

5.0 BUDGET ESTIMATE ......................................................................................................................................... 10

5.1 Funding Source(s) ............................................................................................................................................. 10 5.2. Budget by Major Deliverable or Type of Expense ............................................................................................ 11 5.3 Budget By Project Phase or Certification Phase................................................................................................ 11

6.0 PROJECT AUTHORITY AND ORGANIZATIONAL STRUCTURE ............................................................................ 11

6.1 Stakeholders ..................................................................................................................................................... 11 6.2 Project Governance Plan ................................................................................................................................... 12 6.3 Project Manager ............................................................................................................................................... 13

6.3.1 Project Manager Contact Information ...................................................................................................... 13 6.3.2 Project Manager Background ................................................................................................................... 13

6.4 Project Team Roles and Responsibilities .......................................................................................................... 13 6.5 Project Management Methodology .................................................................................................................. 15

7.0 CONSTRAINTS ................................................................................................................................................ 15

8.0 DEPENDENCIES ............................................................................................................................................... 15

9.0 ASSUMPTIONS ............................................................................................................................................... 15

10.0 SIGNIFICANT RISKS AND MITIGATION STRATEGY ......................................................................................... 15

11.0 COMMUNICATION PLAN FOR EXECUTIVE REPORTING ................................................................................. 16

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12.0 INDEPENDENT VERIFICATION AND VALIDATION - IV&V ............................................................................... 16

13.0 PROJECT CHARTER AGENCY APPROVAL SIGNATURES................................................................................... 18

14.0 PROJECT CHARTER CERTIFICATION APPROVAL SIGNATURE ......................................................................... 18

Revision History

Revision Number Date Comment

Version .01 04/12/2021 Department of Information Technology (DoIT) Charter Template including C-2 info

Version .02 04/30/2021 WCA Revised draft

Version .03 05/03/2021 DoIT Review

Version .04 05/13/2021 WCA Revised Draft

Version .05 05/14/2021 DoIT eReview

Version .06 05/17/2021 WCA Revised Draft for May PCC

WCA Information Technology Modernization Project Charter PAGE 1

1.0 Project Background

1.1 Executive Summary

The mission of the Workers’ Compensation Administration (WCA) is to assure the quick and efficient delivery of indemnity and medical benefits to injured and disabled workers at a reasonable cost to employers. The WCA achieves its mission through educational and regulatory efforts to ensure that employers, workers, and their representatives comply with the law and through the timely resolution of disputes in accordance with the law.

Currently, the WCA relies on several applications written in-house and maintained primarily by a single applications developer, who recently retired and whose position has not yet been filled. These applications include Electronic Case Filing, Docket, Dispute Resolution Calendar, and the Electronic Data Interchange for Claims Reporting, in addition to several bureau-specific applications. While the system is currently stable, the technology is aging, and ongoing maintenance and enhancement of agency applications to meet evolving needs of the agency are substantial concerns.

Both the WCA’s Strategic Plan and its Information Technology (IT) Strategic Plan call for the modernization of existing IT systems, in order to create efficiencies, such as improving the organization and access to inter-agency and dispute resolution case files. This will facilitate the “Quick and Efficient Delivery of Indemnity and Medical Benefits…” as described in the WCA mission statement, and will support the Safety, Self-Insurance, Medical Cost Containment, Employer Compliance, and Enforcement Bureaus (among others) in performing their duties effectively.

WCA's current IT strategies, infrastructure, and resources can no longer ensure a sustainable approach to meeting Mission-critical requirements. The proposed WCA IT Modernization project will help establish long-term sustainability of WCA's ability to meet its mission and address internal and external stakeholder needs.

The WCA Information Technology Modernization Project will support the WCA Program by moving the Agency’s infrastructure and primary mission-critical applications to more modern, sustainable technology, increasing the efficiency of dispute resolution and bureau case management functions and by enabling the WCA to adopt and upgrade to the most current national claims data standard (International Association of Industrial Accident Boards and Commissions EDI version 3.1). The project will be completed in two phases, with the Case Management System modernization being addressed in phase one, and the upgrade to the EDI 3.1 system addressed in phase two. WCA is considering the possibility of a cloud-based Software as a Service (SAAS) solution(s).

1.2 Summary of the foundation planning and documentation for the project

In late FY20, the WCA hired a consulting company to perform an assessment of the WCA’s IT staffing, projects, applications, budgets, policies and procedures. The assessment found that the WCA’s current IT strategies, infrastructure, and resources can no longer ensure a sustainable


approach to meeting mission-critical requirements. It also found that several key applications are approaching obsolescence, and the WCA is falling behind in regard to IT best practices compared to other Workers’ Compensation Agencies.

The cost estimate for this project is approximately $2 million and the consultant based it on the cost of the General Services Records Management Information Systems (RMIS) project, which is comparable in size and scope to the WCA’s proposed project. Revision to the project’s cost estimate is expected during Initiation and Planning. As part of the evaluation of the total cost of potential solutions, the projected ongoing costs of each solution (e.g., maintenance, operation and/or enhancement costs) will be considered.

1.3 Project Certification Requirements

CRITERIA YES/NO EXPLANATION

Project is mission critical to the agency Yes While the current system is stable, the technology is aging, and ongoing maintenance and enhancement of agency applications to meet evolving needs of the agency are substantial concerns.

Project cost is equal to or in excess of $100,000.00

Yes Estimated cost of $2,000,000, which is currently appropriated.

Project impacts customer on-line access Yes WCA anticipates having an online customer portal as part of the new system’s functionality.

Project is one deemed appropriate by the Secretary of the Department of Information Technology (DoIT)

Yes Project reviewed by and appropriation recommended by C2 Committee.

Will an IT Architecture Review be required? Yes WCA anticipates Technical Architecture Review.


2.0 Justification, Objectives and Impacts

2.1 Agency Justification

The following tables lists the agency mission and strategic goals to be addressed through this project.

NUMBER DESCRIPTION

AGENCY MISSION The mission of the WCA is to assure the quick and efficient delivery of indemnity and medical benefits to injured and disabled workers at a reasonable cost to employers.

WCA STRATEGIC PLAN AND INFORMATION TECHNOLOGY (IT) STRATEGIC PLAN

Both the WCA’s strategic plan and its Information Technology (IT) strategic plan call for the modernization of existing IT systems to create efficiencies through case management in the WCA’s dispute resolution process. This project will help facilitate the “quick and efficient delivery of indemnity and medical benefits…” as described in the WCA mission statement, and will support the safety, self-insurance, medical cost containment, employer compliance, and enforcement bureaus (among others) in performing their duties effectively.

2.2 Business Objectives

The following table lists WCA’s business objectives.

NUMBER

DESCRIPTION

BUSINESS OBJECTIVE 1

Ensure long-term sustainability of WCA’s ability to meet its mission and address internal and external needs. System revision to current day software will facilitate easier updates and state of the art problem resolution.


Eliminate the agency’s dependence on a single individual to ensure reliable and accessible support exists to continue meeting the WCA’s internal and external needs. System update will ensure more than one staff member can troubleshoot and make repairs to selected solution.


Improve and document business processes to increase data consistency and integrity. New software will increase the resources available for repair. Training on businesses processes to new staff will be an opportunity to create processes for entire staff.


Decrease number of times that customer information is requested by staff by developing a one-stop system for all WCA customer


NUMBER

DESCRIPTION

information. Creating a new search system will enable all bureaus to do more concise searches for customer information.


Decrease time between customer claim and agency resolution. The tool to measure this is already in place at the WCA in the Quarterly Management Report.


Modernize Information Systems (IS) unit governance policy and practices, reevaluate staffing structure, and continue migration to cloud-based solutions. Incorporation of new processes will help bureaus resolve ongoing issues and then focus on growth and innovation.

2.3 Technical Objectives

The following table lists WCA’s technical objectives.

NUMBER DESCRIPTION

TECHNICAL OBJECTIVE 1

Develop specifications for the IT infrastructure to ensure it can support all potential technology needs now and in the future.


Incorporate hardware and network devices to maximize speed and reliability of overall WCA IT systems.


Gain information technology support services through the implementation of a SaaS or other solution.


Addition of application features that are lacking in current system.

2.4 Impact on Organization

The following list includes impacts on the organization that need to be addressed by the project through its planning process.

AREA DESCRIPTION

END USER Initially, the Project will result in consistent function and operation of case management tools for across bureaus for Agency Users and will allow users to navigate to see current activity for a case and its parties Agency wide. Outward facing applications, including eFiling,


AREA DESCRIPTION Annual Expenditure Reporting, Inpatient Data Reporting and EDI Web Tool, will also be updated and become more user-friendly for Agency Stakeholders. In later phase, customers submitting claims information through EDI 3.1 will be impacted through changed data fields and reporting requirements.

BUSINESS PROCESSES

The Project will examine and modernize WCA’s current Information Systems (IS) Unit governance policy and practices to support the migration to and continued operation of a cloud-based solution. Customers’ access will be easier with a greater selection of options.

IT OPERATIONS AND STAFFING

Currently, the WCA relies on several applications written in-house and maintained primarily by a single Applications Developer, who recently retired. These applications include Electronic Case Filing, Docket, Dispute Resolution Calendar, and the EDI for Claims Reporting, in addition to several bureau-specific applications.

OTHER External stakeholders will be required to change reporting system to be compatible with the EDI 3.1 upgrade. WCA anticipates convening a Migration taskforce to assist notifying Vendors. .

2.5 Transition to Operations

The following transition to operations areas include items that the project will account for in its planning and requirements specifications.

AREA DESCRIPTION

Preliminary Operations location and staffing plans

Operations will occur in-house with existing staff and the Project Manager (PM) will help identify and coordinate the specific work and services required from additional vendors to complete the project.

Data Security, Business Continuity

Security and business continuity will be addressed in the development of the solution and presented in detail to the DoIT Technical Architecture Review Committee (TARC).

Maintenance Strategy Existing staff will maintain the system with contracted services, as needed.

Interoperability The modernized Case Management System will need to interface, at a minimum, with scanning devices, EDI, For The Record (FTR) court recording application, and Microsoft Outlook Calendar and Remote Meeting Applications.

Record retention The project will advance with adherence to applicable State record retention requirements.


AREA DESCRIPTION

Consolidation strategy Phase 2 of the project will upgrade the existing electronic data interchange system from EDI 1.0 to EDI 3.1. EDI data will also interface with the modernized Case Management System.

3.0 Project/Product Scope of Work

3.1 Deliverables

3.1.1 Project Deliverables

To be developed further once PM is on board.

Project Charter The Project Charter for Certification sets the overall scope for the project, the governance structure, and when signed is considered permission to proceed with the project. The Project Charter for Certification is used to provide the Project Certification Committee with adequate knowledge of the project and its planning to certify the initiation phase of the project.

Certification Form(s) The Request for Certification and Release of Funds form is submitted when a project goes for any of the certification phases. It deals with the financial aspects of the project, as well as other topics that indicate the level of planning that has gone into the project. Many of the questions have been incorporated into the preparation of the project charter.

Project Management Plan “Project management plan” is a formal document approved by the executive sponsor and the Department and developed in the plan phase used to manage project execution, control, and project close. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and documents approved scope, cost and schedule baselines. A project plan includes at least other plans for issue escalation, change control, communications, deliverable review and acceptance, staff acquisition, and risk management. plan.”


IV&V Contract & Reports “Independent verification and validation (IV&V)” means the process of evaluating a project to determine compliance with specified requirements and the process of determining whether the products of a given development phase fulfill the requirements established during the previous stage, both of which are performed by an organization independent of the lead agency. Independent verification and validation assessment reporting. The Department requires all projects subject to oversight to engage an independent verification and validation contractor unless waived by the Department.

IT Service Contracts The DoIT and the State Purchasing Division of General Services have established a template for all IT related contracts.

Risk Assessment and Management

The DoIT Initial Project Risk Assessment template which is meant to fulfill the following requirement:

“Prepare a written risk assessment report at the inception of a project and at end of each product development lifecycle phase or more frequently for large high-risk projects. Each risk assessment shall be included as a project activity in project schedule.” Project Oversight Process memorandum

Project Schedule A tool used to indicate the planned dates, dependencies, and assigned resources for performing activities and for meeting milestones. The de facto standard is Microsoft Project.

Monthly Project Status Reports to DoIT

Project status reports. For all projects that require Department oversight, the lead agency project manager shall submit an agency approved project status report on a monthly basis to the Department.

Project Closeout Report This is the Template used to request that the project be officially closed. Note that project closure is the last phase of the certification process.

3.1.2 Product Deliverables

To be addressed and identified during planning phase:

Requirements Specification Documents

Description –


Security Requirements Security requirements for the system including physical and cybersecurity.

Design Documents Detailed design documents, use cases, user stories and business acceptance criteria.

Technical Architecture Document

Technical design for the project that includes a summary of models and versions of hardware and software.

Business Continuity Plan Operational recovery document which considers, and plans processes to reduce the risks associated with unanticipated outages to the system. It includes emergency and disaster management, business resumption, and operational recovery planning.

User Acceptance Testing Plan Outlines the strategy that will be used to verify and ensure an application meets its business requirements. It should document entry and exit criteria for UAT; test scenarios and test cases; testing approach and anticipated timelines of testing.

Operations and Support Plan Describes ongoing maintenance and support requirements for the system and identifies who is responsible.

3.2 Success and Quality Metrics

NUMBER DESCRIPTION

QUALITY METRIC 1 Improved efficiency of dispute resolution and bureau case management functions. Improvement to be measured by changes in efficiency measures currently tracked in WCA Quarterly Management Report.

QUALITY METRIC 2 Long-term sustainability of WCA’s ability to meet its mission and address internal and external needs is secured.

QUALITY METRIC 3 Reliable and accessible support exists to meet WCA’s internal and external needs.

4.0 Schedule Estimate


4.1 Estimated Tasks, Activities, and Milestones

Ref# Estimated Tasks Activities and Milestones

Estimated Completion Date Project Phase

1 Project Certification Committee (PCC) – Initiation 05/27/2021 Initiation

2 Project Management Services Contract executed 06/30/2021 Initiation

3 Project Kick-Off with Project Team 07/07/2021 Initiation 4 Final Project Charter - Approved 07/23/2021 Initiation 5 Draft Project Management Plan 08/06/2021 Initiation

6 Initial Project Risk Assessment and Report 08/06/2021 Initiation

7 IV&V Contract executed 08/12/2021 Initiation 8 Final Project Management Plan 08/12/2021 Initiation

9 Business Analyst Services Contract executed 08/12/2021 Initiation

10 PCC – Planning 08/26/2021 Planning

11

Form and Convene EDI 3.1 migration task force to coordinate activities with WCA Stakeholders

TBD Planning

12 Functional Requirements Gathering Sessions TBD Planning

13 Technical Requirements Gathering Sessions TBD Planning

14 Business Policies Document TBD Planning

15 Requirements Specification Document TBD Planning

16 Final Project Management Plan TBD Planning

17 RFP for Case Management System released TBD Planning

18 PCC – Phase 1 Implementation TBD Implementation

19 Case Management System contract awarded and executed TBD Implementation

20 System Functional Design Session: Phase 1 TBD Implementation

21 System Technical Design Session: Phase 1 TBD Implementation

22 Design Document- Systems Specifications and Architecture complete: Phase 1

TBD Implementation

23 System and Acceptance Testing: Phase 1 TBD Implementation


24 Product Deliverable - Operational Guide: Phase 1 TBD Implementation

25 Project Risk Assessment and Report: Phase 1 TBD Implementation

26 Technical Architecture Review: Phase 1 TBD Implementation

27 Lessons Learned: Phase 1 TBD Implementation

28 RFP for EDI Upgrade released (SAAS or Custom Development) TBD Implementation

29 PCC – Phase 2 Implementation TBD Implementation

30 Case Management System contract awarded and executed TBD Implementation

31 System Functional Design Session: Phase 2 TBD Implementation

32 System Technical Design Session: Phase 2 TBD Implementation

33 Design Document- Systems Specifications and Architecture complete: Phase 2

TBD Implementation

34 System and Acceptance Testing: Phase 2 TBD Implementation

35 Product Deliverable - Operational Guide: Phase 2 TBD Implementation

36 Project Risk Assessment and Report: Phase 2 TBD Implementation

37 Technical Architecture Review: Phase 2 TBD Implementation

38 Lessons Learned: Phase 2 TBD Implementation 39 PCC – Closeout TBD Closeout

5.0 Budget Estimate

5.1 Funding Source(s)

SOURCE AMOUNT ASSOCIATED RESTRICTIONS

Laws 2021, Chapter 137, Section 7 (18)

$2,000,000 MUST BE EXPENDED IN FY21-FY23


5.2 Budget by Major Deliverable or Type of Expense

Rough Estimates to be updated as project progresses.

ITEM COST ESTIMATE

Project Management Services $400,000

Business Analyst $300,000

IV&V Services $200,000

IT Modernization Solutions $1,000,000

Hardware $100,000

Total: $2,000,000

5.3 Budget by Project Phase or Certification Phase

WCA split cost equally between phases. This will be updated as the project progresses.

ITEM PROJECT PHASE

Initiation $100,000

Planning $500,000

Implementation: Phase 1 (Enterprise Case Management System) $700,000

Implementation: Phase 2 (EDI Upgrade to IAIABC EDI v 3.1) $700,000

Closeout $0

Total: $2,000,000

6.0 Project Authority and Organizational Structure

6.1 Stakeholders

NAME STAKE IN PROJECT ORGANIZATION TITLE

Loretta Lopez Executive Sponsor/ Executive Steering Committee (ESC) Member

WCA Executive Director


NAME STAKE IN PROJECT ORGANIZATION TITLE

Leigh Martinez Business Owner/ESC Member

WCA Executive Deputy Director

Brenda Henderson Subject Matter Expert/ESC Member

WCA Chief Information Officer (CIO)

WCA Employees End Users WCA Various

Injured Workers External End users General

Employers External End users Various

Insurers/Self-Insurers External End Users/EDI Reporters

Various

Attorneys External End users Various

6.2 Project Governance Plan


6.3 Project Manager

6.3.1 Project Manager Contact Information

NAME ORGANIZATION PHONE #(S) EMAIL

TBD-Contracted PM

Brenda Henderson WCA 505-841-6867 [email protected]

6.3.2 Project Manager Background

To be finalized as qualified project manager is selected. At a minimum, WCA requires an experienced Project Management Institute (PMI) certified Professional Project Manager (PMP), familiar with C2 and DoIT processes/gateways.

6.4 Project Team Roles and Responsibilities

ROLE RESPONSIBILITY

EXECUTIVE SPONSOR

The point person for the project within the highest level of the Agency.

Responsibilities include: • Champion the project. • Consider potential changes facing the organization and assess

the organizational impact. • Decide which changes will be instituted, communicate

priorities and provide resources to ensure success. • Responsible for creating an environment that enables changes

to be made on time and within budget. • Participate in planning sessions. • Member of Steering Committee. • Ultimate project responsibility.

BUSINESS OWNER The person who is responsible for all operations and management of activities occurring within the division.

Responsibilities include: • Co-chairs Steering Committee with project manager. • Monitors project progress and works with the project manager

to keep project on track. • Ensure staff availability. • Approve expenditure of funds.


ROLE RESPONSIBILITY

• Reports to executive sponsor on the status of the project. • Works with the project managers and executive sponsor to

resolve issues quickly. • Empowers the Project Manager

PROJECT MANAGER

The person(s) who is responsible for managing the development of project deliverables and the project plan.

Responsibilities include:

• Ensuring monthly project reporting and meeting IT project certification timelines and gates.

• Assembling project steering committee and ensuring project team is aware and agrees to roles and responsibilities.

• Co-chairs steering committee with business owner. • Communicating project status to all interested parties. • Keeping project on schedule relative to milestones,

timelines, deliverables, and resources.

SUBJECT MATTER EXPERT

The Staff who are responsible for providing a deep understanding of the current system and business processes.

Responsibilities include:

• Documenting new system requirements, • Answering inquiries from Vendor and WCA Project Teams, • Recommending best practices, • Reviewing technical documentation, • Liaising with end users and • Participating in User Acceptance Testing (UAT).

STEERING COMMITTEE

The committee who is chartered to provide governance over the direction and support of the project.

Responsibilities include: • Attend and participate in meetings. • Review and accept deliverables. • Review and provide comment on presented documentation. • Balance larger picture versus details of the project. • Review project funding and expenditures. • Champion the project. • Contributes to lessons learned.


6.5 Project Management Methodology

WCA intends to work within the PCC process and its standard certification gates. As the project becomes more developed, WCA will further address the project management approach in the Project Management Plan for each certification phase.

7.0 Constraints

NUMBER DESCRIPTION

1 The current funding appropriated to the project is through June 2023, unless reauthorization is required for the date to be extended.

8.0 Dependencies

Types include the following and should be associated with each dependency listed. • Mandatory dependencies are dependencies that are inherent to the work being done. • D- Discretionary dependencies are dependencies defined by the project management team. This

may also encompass particular approaches because a specific sequence of activities is preferred, but not mandatory in the project life cycle.

• E-External dependencies are dependencies that involve a relationship between project activities and non-project activities such as purchasing/procurement

NUMBER DESCRIPTION TYPE M,D,E

1 Will be completed as the project is further planned.

9.0 Assumptions

NUMBER DESCRIPTION

ASSUMPTION 1 The project will be completed on time.

ASSUMPTION 2 The project scope will not change.

ASSUMPTION 3 Project staffing resources will be available when needed.

10.0 Significant Risks and Mitigation Strategy


This table will be completed, as project is further planned.

Risk 1

Description Probability: Impact: Mitigation Strategy: Contingency Plan:

Risk 2

Description -

Probability: Impact: Mitigation Strategy: Contingency Plan:

11.0 Communication Plan for Executive Reporting

WHAT WHO/TARGET PURPOSE WHEN/ FREQUENCY

TYPE/METHODS

Project Status Project Sponsor

Executive Steering

Committee

Awareness of project status,

risks, issues, or changes.

Bi-Monthly Email, Posted to Project Repository

Vendor Project Status

WCA Project Manager

Validate schedule, scope, and cost is

on track.

Weekly Project Status Report, Risk, Issues Logs, Project Team

Meetings

Project Awareness and

Implementation

All Stakeholders Project awareness and

implementation readiness.

Prior to implementation

Send via e-mail

12.0 Independent Verification and Validation - IV&V

WCA anticipates hiring IV&V during the Planning Phase of the project.

PROJECT/PRODUCT AREA INCLUDE: YES/NO

Project Management YES

Quality Management YES

Training YES


Requirements Management YES

Operating Environment YES

Development Environment YES

Software Development YES

System and Acceptance Testing YES

Data Management YES

Operations Oversight YES

Business Process Impact YES


13.0 Project Charter Agency Approval Signatures

Signatures to be executed on completion of Final Project Charter

SIGNATURE DATE

EXECUTIVE SPONSOR

BUSINESS OWNER

PROJECT MANAGER

14.0 Project Charter Certification Approval Signature

SIGNATURE DATE

DOIT / PCC APPROVAL

5/18/2021

5/18/2021

5/18/21