Before starting with the CATS II TORFP Template for Business Services (FAs 1-4, 7-12, 15-17), agencies should engage in business need discussions among management, the agency business unit, IT staff, and procurement office. Agencies should gather pertinent documentation, e.g., SDLC documents, agency policies, business procedures, industry information, other agency input, and system documentation. These activities will help generate sufficient documentation of requirements for the TORFP.
Note that Business Services often entail external applications and handling of agency information. Accordingly, the TORFP should include thorough requirements on confidentiality, system security, data security, disaster recovery, and ownership rights. Certain Business Services also may require project management as noted the guidance below. Questions about developing a TORFP may be referred to the DoIT Procurement Office at itpo@doit.state.md.us.
Below are recommended best practices to help ensure a quality TORFP and timely release. This information is advisory only, some elements may not apply to specific TORFPs.
Requirements Gathering:
- Identify agency personnel responsible for developing, reviewing and approving requirements
- Interview key stakeholders from the business unit, IT staff, and procurement office
- Gather pertinent agency policies and procedures
- Gather existing system documentation, e.g., O&M manuals, SOPs, manufacturer information, etc.
- Contact other agencies experienced with vending out the prospective services (benchmarking).
Requirements Checklist (some may not apply to the specific TORFP):
- Security:
- – Data security
- – System security
- – Disaster recovery
- – Confidentiality
- – Security standards
- Business / functional requirements
- – Required work processes
- – Products / deliverables
- – Productivity goals
- – Work tracking
- – Use of State hardware / software / materials / facilities
- – Use of TO Contractor hardware / software / materials / facilities
- – Customer support requirements
- – Work policies / procedures
- Technical / system requirements:
- – Interfaces, e.g., Web, database, user screens
- – Levels of access, e.g., State, TO Contractor, public
- - Availability, e.g., 7 days per week, 98 percent uptime
- – Software applications, e.g., report tools
- – Databases
- – Operating systems
- – Hardware
- – Networks
- – System / application performance goals, e.g., speed, reliability
- – System / application maintenance
- – Accessibility standards, e.g., low-vision users
- – Enterprise Architecture requirements
- Non-business / non-technical requirements:
- – Project management
- – Process management
- – Meetings / conference calls
- – Training
- Service Level Agreements (SLA) (See Section 2.4.4 below)
- Consumables / supplies:
- – Purchased by State or TO Contractor
- – Procurement vehicle
- – Volumes
- – Delivery / storage / inventory
- – Waste management, e.g., recycle used paper
- Ownership of property
- - Hardware / software
- – Materials
- – Intellectual property
- Performance measurements
- Performance problem mitigation
- Transition plan ahead of TO expiration
- Tasks to be performed by the State in conjunction with the TO
Documenting Requirements:
- Use precise wording for requirements, e.g., "three second response" instead of "fast response".
- Ensure requirements descriptions are complete and unambiguous.
- Ensure requirements descriptions include ways to test, observe, or otherwise verify completion.
- Allow plenty of lead time for requirements identification and approval.
- Obtain review and approval of requirements from key stakeholders from the business unit, IT operations staff, and procurement office.
The TORFP Process:
- Review and understand the TORFP process.
- Develop a procurement schedule (see Example Procurement Schedule).
- Allow sufficient lead time to replace current services contracts.
- Allow sufficient lead time for internal and external reviews of TORFPs. For planning purposes, assume at least two iterations once the TORFP is submitted to DoIT.
- Obtain input from key stakeholders on the TORFP scope of work.
- Inform DoIT of new O&M initiatives well in advance
Guidance on writing a TORFP for Business Services is provided below in order of the TORFP sections. Agencies should review and understand all standard language and instructions in the template. Agencies should insert agency-specific information where indicated by blue highlight, and ensure that no irrelevant or left over language remains in the TORFP from the template or past TORFPs.
TORFP Title Page – Insert a TORFP title that clearly reflects the substance of the services to be acquired, e.g., “Accounts Receivable Business Process Analysis.” The CATS II TORFP number is the ADPICS Purchase Order number (see Reference BPO Process Training Guide 1.09MB). Insert the requesting agency name and the date the TORFP is released.
Key Information Summary Sheet or “KISS Sheet” – Review the standard language at the top regarding instructions for Master Contractors responding to the TORFP. In the table below, insert key information about the TORFP in the fields provided. Agencies should complete all fields and may add, but not delete, fields.
TORFP Section 1 - Administrative Information - Review and understand the standard terms and conditions in this section. Insert agency specific information, where indicated. Agencies may add, but not delete, template language in this section. Sub-headings of this section are as follows:
1.1 Responsibility For TORFP and TO Agreement – Agencies should assign a separate TO Procurement Officer and TO Manager for each TORFP. This section outlines those roles in managing the TORFP process and the ongoing TO work respectively.
1.2 TO Agreement – The TO Agreement is the actual signed contract between the State and the Master Contractor who received the award (TO Contractor). It legally commits the TO Contractor to the terms and conditions of the CATS II Master Contract, the TORFP, and the TO Contractor’s proposal, in that order of precedence.
1.3 TO Proposal Submissions – Agencies must set a reasonable, yet strict, time and date deadline for accepting TO proposals. This section alerts Master Contractors to the critical importance of the submission deadline and describes the signed documents required to accompany the TO proposal.
1.4 Oral Presentations/Interviews – Face-to-face discussions with Master Contractor personnel about their TO proposals adds valuable insight to the proposal evaluation process. Orals may expose a strongly written proposal backed by weak personnel or vice versa. Orals should be scheduled about two weeks after the proposals submission deadline. This section describes expectations for this requirement. Orals are attended by all Master Contractors whose proposals meet minimum technical qualifications in the TORFP.
1.5 Minority Business Enterprise (MBE) – This section describes the signed MBE forms strictly required by the TO proposal submission deadline. Failure to submit properly executed D1 and D2 forms is non-curable, meaning agencies, without exception, must reject the entire TO proposal if the D1 and D2 forms are not submitted prior to the submission date/time.
1.6 Conflict Of Interest – Certain circumstances may exclude a Master Contractor from TO proposal consideration. For example, a Master Contractor hired for business process analysis would be prohibited from a subsequent TO for implementing the recommended changes. This section describes the conflict of interest affidavit required with TO proposals and cites the relevant COMAR sections.
1.7 Non-Disclosure Agreement – Master Contractors may be granted access to potentially sensitive agency information, either before or after a TO award. This signed document commits a Master Contractor to information confidentiality. Agencies are responsible for maintaining this agreement on record.
1.8 Limitation Of Liability Ceiling – Limitation of liability should be determined at the TORFP level. Refer to Section 27 (C) of the CATS II Master Contract (Attachment A of the CATS II RFP).
1.9 Contract Management Oversight Activities – Agencies should retain records of all documents resulting from the TO solicitation and award process, and from ongoing TO management. As part of DoIT’s oversight role for master contracts, DoIT may review agency records periodically to ensure best practices.
TORFP Section 2 - Scope of Work (SOW) – This section is the core of the TORFP that defines the required work scope and work results expected of the TO Contractor. The template contains headings and content that agencies may edit (add / delete / change) to fit specific needs and circumstances.
2.1 Purpose – Insert the agency name. Describe the services to be provided, e.g., “The Department of [agency name] is issuing this CATS II TORFP to obtain accounts receivable business process analysis.” Describe the purpose and goal of the TORFP, e.g., “The purpose is to analyze and document current manual accounts receivable business processes. The goal is to identify process improvements and related requirements for an automated accounts receivable system.”
2.2 Requesting Agency Background – Insert the agency’s mission and vision statements. Describe the operational functions, organizational structure, and customers of the agency. This information will help Master Contractors better understand the work environment.
2.3 Roles and Responsibilities – Define roles and responsibilities under the TO, including:
- TO Procurement Officer - Manages the TO solicitation and award process.
- TO Manager – Manages the overall work performance under the TO. Administers the TO, e.g., invoicing, MBE reports, etc.
- TO Contractor – Manages work performed by TO Contractor personnel. Responsible for completing all TO requirements and deliverables. Reports to the TO Manager.
- Business Unit Manager – Manages the agency unit impacted by work under the TO. May supervise personnel who are assigned tasks under the TO. Often the same as the TO Manager.
- Stakeholders – In addition to the above, others impacted by or with influence on the TO. Agencies should identify roles for stakeholders to the extent possible, e.g., providing input on requirements.
2.4 Requirements – Describe the requirements to be completed under the TO following the guidelines below (Note some guidelines may not apply to the specific TORFP). Requirements should be actionable, measurable, and testable. Requirements should be numbered for traceability to acceptance tests.
- Divide requirements into three categories: functional / business requirements, technical requirements, and non-functional / non-technical requirements. The template provides sections for each category (See category descriptions below).
- Use unambiguous, objective language. For example, instead of the requirement “put agency contact information on the web site home page,” spell out exact names, titles, addresses, phone numbers, emails, etc.
- Ensure that requirements can be measured, tested, or observed when completed. For example, instead of “minimal clicks to access FAQ’s” use “two clicks to access FAQ’s.”
- Reference the corresponding deliverables from Section 2.5.2 of the TORFP. The template provides a column for deliverable identification numbers.
2.4.1 Functional / Business Requirements – Functional requirements relate to work processes and products that constitute what the TO Contractor is supposed to accomplish. This is non-technical information. For example, “the TO Contractor will scan license applications for electronic storage and retrieval.”
Examples of Sources for Functional / Business Requirements:
- Business process analyses
- Agency SOPs (Standard Operating Procedures)
- Agency policies
- Audit findings
- COMAR
- SDLC Documents
- Key stakeholders, e.g., business unit personnel and subject matter experts
2.4.2 Technical Requirements – Technical requirements relate to system technology and performance, e.g., “the scanner will be compatible with Adobe Reader 9™” and “image retrieval time will be three seconds or less.”
Sources for Technical Requirements
- Existing system documentation
- COTS software and hardware documentation
- IT industry standards
- Similar system demonstrations / benchmarking
- SDLC Documents
- Key stakeholders, e.g., data processing personnel
2.4.3 Non-Functional, Non-Technical Requirements – All other requirements not related to work processes and products, or technology and performance. Examples include project management, meetings, or security precautions.
Sources for Non Functional, Non Technical Requirements:
- TORFP administrative sections
- Procurement plan
- Agency policies and procedures
- Audit findings
- COMAR
- SDLC Documents
- Key stakeholders, e.g., the executive sponsor and other agency managers
2.4.4 Service Level Agreement - A Service Level Agreement (SLA) may be needed if the TO Contractor will be managing systems or application services for the agency, for example web hosting or GIS services. The SLA defines problem response requirements for TO Contractor. The SLA includes categories for problem severity and expected response times. For example, problem categories of urgent, high, and normal might require responses within 1 hour, 4 hours, and 1 work day respectively. SLAs should include an incentive formula for meeting response times, e.g., deduct 5 times the hourly labor rate for every 15 minutes past the required response time. Agencies may allow Master Contractors to propose an SLA model. A simplified example SLA table is below:
| Service Levels | Phone Response | On-Site Response | Response Availability | Comments |
|---|
| Urgent | 15 minutes | 1 hour | 7 days/week, 24 hrs a day | |
| High | 1 hour | 4 hours | 7 days/week, 24 hrs a day | |
| Normal | 1 hour | 1 work day | 5 days/week, Mon-Fri, 8AM-5PM | On-site response to calls after 1PM may be by 9AM the next morning |
2.4.5 Backup / Disaster Recovery – If applicable, describe required backup procedures for data, applications, systems, and servers. Provide a list, subject to change, of the databases, applications, hardware, and systems to receive backups. Example language is below:
The TO Contractor shall perform backups of the web, application, and database servers on a regular basis. This shall include daily incremental backups and full weekly backups of all volumes of servers. Daily backups shall be retained for one month, and weekly backups shall be retained for two years, by the TO Contractor. Daily backups will be stored off-site by the TO Contractor. System backups for each of the listed servers will be on a quarterly basis, with two additional during the year, for a total of 6 system backups per server.
2.4.6 Hardware, Software, and Materials - If applicable, describe the agency’s strategy under the TO for acquiring necessary hardware, software, or materials. Hardware and software costs procured as part of the TORFP cannot exceed 49 percent of the total TO value. Material costs must be passed through with no mark-up by the TO Contractor.
2.5 Deliverables – Use the table in Section 2.5.2 of the template to describe deliverables resulting from the completion of requirements. Follow the guidelines below. See Example Deliverables Document.
- Describe deliverables in unambiguous terms, such that no two readers could interpret the deliverable requirement differently.
- Create clear acceptance criteria. Document the verifiable aspects of usability, performance, compatibility, security, etc. for judging deliverable acceptance. See
Example Acceptance Criteria
. - Ensure deliverables can be measured, tested, or observed when completed.
- Ensure deliverables are traceable to requirements.
- Tie deliverables to payments in the TORFP price proposal (TORFP Attachment 1A).
- Subject deliverables to a remediation process if deficient.
Deliverable time frames should be:
- Estimated by the agency and subject to refinement in Master Contractor proposals
- Estimated by Master Contractors in their proposals, subject to finalization after TO awards
Typical deliverables may include:
- Reports
- Work processing
- Work products
- Project management
- Hardware
- Meetings and presentations
- Training
- 2.5.1 Deliverable Submission Process – Agencies should review the standard language in this section of the template and make changes specific to the TORFP. The goal is to set clear requirements for the level of quality and formatting of written deliverables, plus submittal and acceptance procedures for all TO deliverables.
- 2.5.2 Deliverable Descriptions / Acceptance Criteria - The table in this section should be used to document deliverable descriptions and acceptance criteria. Deliverables should be clear and unambiguously worded. Acceptance criteria should be based on measurement, testing, or observation.
2.6 Required Project Policies, Guidelines and Methodologies - Describe any policies / standards / industry specifications to which the master contractor must adhere, possibly to include:
- Systems Development Life Cycle (SDLC)
- PMI / PMBOK
- Capability Maturity Model Integration (CMMI)
- State and agency IT security policies
- State and agency enterprise architecture (EA) standards
2.7 Contractor Personnel Minimum Qualifications - Describe the types of services desired of the To Contractor personnel. Do not request specific labor categories, let Master Contractors propose labor categories and associated pricing.
2.8 Contractor Expertise Required – Described any general industry experience expected of the TO Contractor. Avoid being too specific, e.g., experience with particular products, to avoid eliminating potential competition.
2.9 Retainage – Agencies may elect to structure the TO to withhold a portion (typically ten percent) of the total TO value until acceptance of all deliverables under the TO. Retainage is an incentive device to ensure the TO Contractor completes all work and/or completes all work within the TO deliverable schedule.
2.10 Invoicing – This section contains standard language describing the format and submission procedures for invoicing under the TO. Agencies should review this section and make changes specific to agency internal accounting procedures. Also see Section 2.5.1 above.
2.10.1 Invoice Submission Procedure – Describe invoice submission requirements, for example:
Time period covered by invoices
Supporting documentation, e.g., timesheets
Monthly due date
2.11 MBE Participation Reports - This section contains standard language describing required MBE reporting under the TO. Agencies should review this section and insert agency specific information where indicated.
TORFP Section 3 – TO Proposal Format and Submission Requirements
3.1 Required Response – Master Contractors are required to respond to each TORFP they receive with either a TO proposal or a “Master Contractor Feedback Form”. The forms are accessible through the CATS II login page for Master Contractors. The feedback gives the State insight for future contracts on why Master Contractors did not respond to a TORFP. This section describes this requirement and its purpose.
3.2 Format – Agencies can streamline the proposal evaluation process through clear instructions on the content and layout of TO proposals. The goal is to prompt multiple proposals with the same type of content in the same sequence for apples to apples comparison. Agencies should carefully review the standard language in this section of the template to that end.
- 3.2.1 Technical Proposal – The TORFP Template contains eight sections, A through H, with standard language describing the required contents for a typical technical proposal. Agencies should review each section and make changes according to the specific TORFP. Any changes should be toward prompting sufficient information about proposed solutions for comparison among Master Contractors.
- 3.2.2 Financial Proposal – Like the technical proposal, agencies should strive to give clear instructions on the content and format of a financial proposal to allow apples to apples comparison. Pricing should be tied to deliverables under the TO. Master Contractors should be advised in this section that assumptions they provide should not constitute exceptions to the CATS II RFP or TO terms and conditions. A form is provided in the template attachments for the financial proposal. Agencies should review and may change the form according to the specific TORFP.
TORFP Section 4 – Task Order Award Process
4.1 Overview – This section advises Master Contractors that all proposals meeting the response requirements of the TORPF will be evaluated and considered for award. In general, agencies will thoroughly evaluate all technical proposals before considering associated financial proposals.
4.2 Technical Proposal Evaluation Criteria – In this section agencies list the criteria by which technical solutions will be evaluated in order of importance. Evaluation criteria should be weighted toward Section 3.2.1.A and 3.2.1.B of the TORFP template regarding proposed services and personnel. Agencies should ensure the criteria is not biased toward a particular Master Contractor. Criteria should involve metrics where possible, e.g., performance measures, to allow apples to apples comparison.
4.3 Selection Procedures – Agencies will first determine which proposals are susceptible for award, i.e., meets minimum SOW and TORFP requirements, both initially and throughout the proposal evaluation process. A proposal that does not meet minimum technical requirements will not be considered further, and the Master Contractor advised accordingly. Agencies will review and rank all technical proposals that do meet minimum requirements. Lastly, agencies will open, review and rank financial proposals. The proposal deemed most advantageous to the State will receive the award.
4.4 Commencement of Work Under a TO Agreement – This section lists the required signed documents before work may begin by the awarded TO Contractor.