Modernization at the Indiana Division of Family Resources

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Modernization at the Indiana Division of Family
Resources

• Zach Main
• Assistant 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
• 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.
• 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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Procurement Process

• RFI Explain the Solution.
• RFI Orals
• RFP Sharpen and price the Solution.
• RFP Orals
• Formal Discussions
• Operational Review
• BAFO Sharpen your pencils boys.

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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 to under
  10...

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Guiding Principles

• Stay under the radar screen.
• A byproduct of our non-prescriptive procurement
  process was a legally enforced silence about the
  specifics of the solution. This made it
  difficult for our critics to defend the status
  quo or attack our basic objectives.

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Guiding Principles

• Surround yourself with people whove been there
  before.
• Rich Adams 25 year State Employee
• Gave us instant credibility with the staff.
• Operationally keeps the wheels on the bus.
• Jim Maxwell Outsourcing Veteran
• Industry Sales and Operations experienced
• Created Indiana Privatization Financial Model

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Guiding Principles

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

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