Modernization at the Indiana Division of Family Resources

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Modernization at the Indiana Division of Family
Resources

• Rich Adams
• Deputy Director
• Indiana Division of Family Resources
• Family and Social Services Administration

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DFR is the Retail arm of Indiana Public
Assistance

• 500 million Budget
• 107 Offices in 92 Counties
• Customers only intake point for TANF, Medicaid,
  and Food Stamps.

State of Indiana
Outsourced
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The DFR Retail Model Has Significant Problems
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What do we want the system to look like?
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So the system has got to changeWhy the private
sector?

• Speed Time is money. Inaccurate determinations
  are costing tens of millions of dollars a year.
  Every month delayed means millions of dollars.
  
• FFY 2005 Positive Error Rate was 6.58. That
  amounts to almost 34 million in misspent
  dollars. We ranked 37thand were not penalized.
  Butthats not the point!
• Speed Indianas merit employment system makes
  fluid organizational changes nearly impossible.
• Speed Indianas FSSA has had 14 Leaders in the
  past 15 years. Any project with a shelf life of
  more than 2 years is doomed.

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ProcurementIn three easy steps

• Describe the problem.
• Explain in broad strokes the qualities youd like
  to see in the solution.
• Leave the rest blank. (The hardest step!)

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Guiding Principles

• 1. Dont try to do too much.
• Major Policy Changes
• Change Business Process
• Core System Replacement
• Choose one.

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Guiding Principles

• 2. Protect your Institutional knowledge by
  protecting your employees.
• Indiana guaranteed each of its employees a job
  at equal or better salary with equivalent
  benefits. Attrition dropped statewide from 18
  to under 10...

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Guiding Principles

• Surround yourself with people whove been there
  before.
• People like me!
• Knowledgeable contract staff

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Guiding Principles

• Spend as much time as you possibly can with
  potential partners. Imagine them as part of your
  TEAM.
• You are going to spend
• a lot of time with them

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Guiding Principles

• Keep your eye on your priorities.
• Client Access
• Program Integrity
• Fairness to Staff

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Modernization is New?

• Potential Contract Represents 2 of the Total
  FSSA Budget
• 92 of the FSSA Budget is already spent on
  outsourced contracts.

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All this attention for one little box???
State of Indiana
Outsourced