# Presentation: 854352

## Starting Over Planning For A New Child Support Enforcement System

- A Description and Discussion

- a presentation of the Office of Child Support Enforcement

## Today’s Panelists

- Eileen Coughlin,     *New Jersey’s Office of Child **     Support and Paternity*
- Nancy Starling Ross,      *PSI Technologies, Inc*
- Joe Bodmer,      *Federal OCSE*

## The Planning Phase The Planning APD

## Purpose of a Planning APD

- First:   a planning APD provides the federal government with the initial start-up data necessary to fund a state’s planning activities for a new automation project
- Second:   an APD provides the state and federal agencies with the kind of high level data generally used to monitor a project’s progress

## Types of APD’s

- Two Major Types of APD Submissions
- Planning APD Used to seek reimbursement for planning costs
- Implementation APDUsed to seek reimbursement for costs of designing, developing, and implementing a system

**Notes:**
Note:  Mention there is no overlap between these two types of APD’s - upon ACF approval of a state’s initial Implementation APD, the Planning APD is considered closed.

## Planning APD

- Generally used in support of major system development projects, as opposed to less complex computer acquisitions like hardware and software buys
- This is a brief document of usually not more than 15-30 pages

**Notes:**
Note: Mention the reg says 6 - 10 pages, but our experience suggest most states fall in the 15 - 30 category

## Elements of a Planning APD

- Problem Statement
- Project Management Plan (PMP)
- Planning Budget
- Total Project Cost Estimate

## Elements of a Planning APD

-  **The Problem Statement**
- 1-3 pages of general discussion of the problem(s) faced by the agency and of the need to seek a remedy
- Cites examples of issues and problems being faced

## Elements of a Planning APD

-  **The Project Management Plan (PMP) **
- Provides a list of key personnel
- Provides an organization chart for the planning effort
- Provides a task-oriented list of planning activities to be conducted including project schedule information

## A Project Schedule Example

**A Project Schedule Example**

## Elements of a Planning APD

-  **The Project Management Plan (PMP) **
- The task-oriented list of activities to be conducted must include *commitments **to conduct* a:
- Needs Assessment
- Feasibility Study
- Alternatives Analysis
- Cost Benefit Analysis

## Elements of a Planning APD

-  **The Project Management Plan (PMP) **
- Other task-oriented activities that a PMP might include are:
- Developing RFP’s / ITB’s
- Conducting procurements for:
- Quality Assurance and IV&V
- Software development
- Project management support
- Hardware and Software purchasing
- Implementation APD development, etc.

## Elements of a Planning APD

-  **Planning Budget **
- Provide a budget spreadsheet showing costs broken-down by Federal Fiscal Quarter (FFQ) and summed to the Federal Fiscal Year (FFY).
- Best presentation is to have one page per FFY.
- Have last column of each budget spreadsheet show state and Federal shares for each FFY

## Elements of a Planning APD

-  **Budget Categories Include: **
- State staff,
- contractors (listed by contract), hardware and software,
- training,
- miscellaneous/supplies,
- travel,
- data center (listing both operations and development separately).

## The Implementation APD

**Executive Summary**
**Statement of Needs and Objectives**
**Feasibility Study ***(Includes a summary of**the study and the Analysis of Alternatives)*
**Project Management Plan**
**Interface Requirements**
**Security**
**Budget *****(Including cost allocation, if needed)***
**Cost Benefit Analysis**

## FEASIBILITY, ALTERNATIVES AND COST BENEFIT ANALYSIS

- A Description and Discussion

## FEASIBILITY STUDIES

- IN COMPLEX, LARGE SCALE APPLICATION DEVELOPMENT PROJECTS

## Feasibility Studies:  Purpose 

- The Preliminary Study That Determines Whether a Proposed Systems Project is Technically, Financially, and Operationally Viable
- The Foundation for Approval of the Project’s IAPD

## Feasibility Studies

-     Include an Alternatives Analysis,      Identifying Viable Options for System      Design and Development.  Together,      They Provide:
- Analysis of the System Objectives, Functional Requirements, and System Design Concepts
- Feasibility of Applying Automation To Economically Improve Program Operations
- Evaluation of Each of the Alternatives and Selection of an Optimal Solution

## Feasibility Study Process 

- Describe the Status Quo
- Define the Problem
- Define System Objectives
- Identify System Constraints and Assumptions
- Develop Initial Requirements
- Assess Project Feasibility

## Describe the Status Quo

- Understanding of How the Current System Works
- Work Flow Analysis
- Technical Architecture of Hardware
- Software Components
- Manual Components
- Interfaces

## Define the Problem

- What Functionality is Missing or in Need of Automation From the Current System
- What Functionality is in Need of Improvement or Modification in the Current System
- Obsolescence of Technological Platforms and Architectures

## Define System Objectives

- Functionality for the New System
- Added
- Automated
- Improved
- Define Technical and Organizational Objectives
- Define Ranking Criteria to Evaluate Alternatives

## Identify System Constraints

- Law and Regulations
- Technological
- Socio-political
- Financial
- Operational
- Functional

## Identify Assumptions

- Cost and Budget
- Resources
- Functional and Programmatic
- Technical
- Organizational
- System Life

## Identify Assumptions

- Include All Assumptions That Will Affect the Analysis
- Document the Logic Underlying the Assumptions

## Initial Requirements

- Reorganize All of the Previous Work Into a List of Requirements the System Must Fulfill
- Ensure Requirements Definitions for the Current System Were Considered
- Identify the Universe of Existing and Theoretical Options

## Assess Project Feasibility

- Assess Project Feasibility Against the Universe of Options:
- Technical
- Political
- Impact on Users
- Cost
- Resources
- Risk
- Organizational

## Results

- Ability to Reduce the Universe of Potential Options to 2-4 Realistic Possibilities
- These Now Undergo Detailed Evaluation as Part of the “Analysis of Alternatives”

## ALTERNATIVES ANALYSIS

- IN COMPLEX, LARGE SCALE APPLICATION DEVELOPMENT PROJECTS

## Alternatives Analysis

- An Analysis Which Considers the Alternatives Available for Automation.

## Development Alternatives

-   Status Quo
-   Enhance Existing System
-   New Development
-   Transfer
-   Hybrid

## Technical Alternatives

-   Client Server vs. Main Frame
-   Thin Client vs. Thick Client
-   Web Technology vs Closed System
-   Distributed vs. Centralized
-   Custom vs. COTS

## Alternatives Analysis

-   Map Requirements to Hardware,  Software, Processes and   Personnel.
-   Determine Risks and Effects
-   Rank Alternatives
-   Delete Non-viable Alternatives

## Determine Risks and Effects

- Program Impact
- Equipment Impact
- Software Impact
- Information Impact
- Organizational Impact
- Operational Impact
- Developmental Impact

## COST BENEFIT ANALYSIS

- IN COMPLEX, LARGE SCALE APPLICATION DEVELOPMENT PROJECTS

## Cost Benefit Analysis

- Detailed Evaluation of the Costs and Benefits of Each Alternative Identified During the Alternatives Analysis Is Critical ...
-     ... Pass or Fail Critical !           From a Federal Standpoint !

## Costs

- Cost the Status Quo
- Cost Alternatives to Status Quo
- Identify and Characterize All Costs
- Determine Whether to Use Constant or Current Dollars
- Build Each Cost Profile Year by Year

## Cost the Status Quo

- Cost of Maintaining Current System With No Enhancements.
- Used As Control Group to Evaluate Other Alternatives.

## Cost Alternatives to Status Quo

- Recurring Costs
- Non-Recurring Costs

## Identify and Characterize Costs

- Hardware
- Software
- Training
- Personnel
- Database Conversion
- Other (examples in Guide)

## Determine Constant or Current $

- Project Constant Dollar Cost and Benefits
- Convert Constant Dollars to Current Dollars
- Convert Future Dollars to Today's Dollars

## Build Each Cost Profile Year by Year

- Estimate Effort Based on Metrics
- COCOMO
- Price-S
- Function Points
- Compare to Similar Systems
- Run Experiments
- Measure Actuals

## Benefits

- Identify and Characterize All Benefits
- Tangible Benefits
- Intangible Benefits

## Identify and Characterize All Benefits

- Increased Collections
- Reduced Error Rates
- Reduced Costs
- Reduced Staffing
- Improved Security
- Improved Access
- Improved Interface

## Tangible Benefits

- Derive Cost Saving From Benefit
- Document Assumptions Used in Derivation

## Intangible Benefits

- List and Rate
- Examples
- Worker Satisfaction
- System Downtime
- User Friendliness
- Useful Life of System

## Cost Benefit Analysis

- Convert Costs and Benefits to Current Dollars
- Compare Quantitative Factors
- Net Benefit (Cost)
- Benefit/Cost Ratio Based on the Full System Life Cycle
- Breakeven or Payback

## Cost Benefit Analysis:  Issues

- Apply Assumptions, Costs, and Benefits Evenly Across All Alternatives
- Costs Are Not Always Known but May Be Estimated in a Range or With a Given Probability.
- Decide Evaluation Criteria Up-front
- Intangible Benefits May Matter

## COST BENEFIT ANALYSIS

- Evaluation Criteria

## Evaluation Criteria

- Are Results Credible
- Are Assumptions and Estimates Reasonable
- Are Results Reproducible
- Are Assumptions Applied Evenly Across All Alternatives

## Analysis Guide Evaluation Criteria

- That a Status Quo is Thoroughly Described
- That All Reasonable Alternatives Were Considered
- That a Full Cost Benefit Analysis to at Least Two (2) Alternatives is Accomplished
- That Alternatives Were Evaluated on System Life Cycle Basis
- That Present Value Analysis Was Used

## Analysis Evaluation Criteria (cont’d)

- That Cost and Benefit Projections Appear Reasonable
- That Net Benefits or Ratios Were Calculated for All Alternatives
- That the Study Resulted in a Clear Cost and Benefit Plan
- Results Are Summarized for Selection Justification in the IAPD

## OVERVIEW

- OCSE’S TYPICAL REVIEW PROCESS BASED UPON PAST EXPERIENCE

## OCSE Typical FS Review

-  OCSE Review Process Is Approximately  Eight (8) Weeks
-  Uses OCSE Staff and Contractors to Conduct  the Review
-  Review Initiated Upon State Submittal of a Feasibility Study and Cost/Benefit Analysis
-  Some Prior Review and TA of Preliminary Data (E.G. Evaluation Criteria)

## OCSE FS Review: WEEK 1

- Assemble Team - OCSE Lead, OCSE Contractor Staff
- Start-Up Meeting to Discuss Overall Scope Collect Documentation - FS, CBA, Status Quo Document, Historical Data

## OCSE FS Review: WEEK 2

- Initial Contractor Staff Review of Documentation
- Develop Initial Set of Comments
- Develop List of Questions for State Staff
- Develop Agenda for On-Site Review with the State

## OCSE FS Review: WEEK 3

- On-Site Review With State Staff
- Provide Initial Comments to the State
- Ask Questions Developed During Initial Review
- Interview State and Their Contractors On the Processes Used to Develop the FS
- Collect Additional Documentation

## OCSE FS Review: WEEKS 4-6

- Detailed Review of FS, CBA, and Other Documentation
- Follow-Up Conference Calls With State Staff, As Required
- Draft Report Developed by OCSE Contractor and Submitted to OCSE Lead

## OCSE FS Review: WEEKS 7-8

- OCSE Lead Review of the Draft Report
- Additional Follow-Up Calls With the State As Required
- Incorporate OCSE Lead Comments Into Report
- Release Final Report

## OCSE FS Review:  Documentation

- Final FS, CBA, and Status Quo Document
- Interim Versions of Documents
- White Papers
- Review Correspondence (Review Comments and Responses)
- Requirements Analysis Documentation
- Gap Analysis

## References

- Title 45 Public Welfare and Human Services Code of Federal Regulations (CFR), Part 307--Computerized Support Enforcement Systems
- Title 45 Public Welfare and Human Services Code of Federal Regulations (CFR), Part 95--General Administration-Grant Programs (Public Assistance and Medical Assistance)
- Title 45 Public Welfare and Human Services Code of Federal Regulations (CFR), Part 74 - Uniform Administrative Requirements for Awards and Subawards to Institutions of Higher Education, Hospitals, Other Nonprofit Organizations, and Commercial Organizations; and Certain Grants and Agreements with States, Local Governments and Indian Tribal Governments

## References

- U.S. Department of Health and Human Services, Administration for Children and Families and Health Care Finance Administration – State Systems APD Guide, September 1996
- U.S. Department of Health and Human Services, Administration for Children and Families, Office of Child Support Enforcement – Addendum to State Systems APD Guide for Child Support Enforcement Systems, March 1999
- Action Transmittal OCSE-AT-90-11, Policy Clarification Relating to Automated Child Support Enforcement Systems, October 9, 1990

## References

- U.S. Department of Health and Human Services, Administration for Children and Families, Office of Child Support Enforcement – Automated Systems for Child Support Enforcement: A Guide for States, Revised April 1999, Updated December 1999
- U.S. Department of Health and Human Services, Administration for Children and Families – Feasibility, Alternatives, and Cost/Benefit Analysis Guide, July 1993
- U.S. Department of Health and Human Services, Administration for Children and Families, Office of Child Support Enforcement – Cost/Benefit Companion Guide, August 1994
- U.S. Department of Health and Human Services, Administration for Children and Families - Companion Guide 3:  Cost/Benefit Analysis Illustrated for Child Support Enforcement Systems, September 2000

## Closing

- Questions
- &
- Answers
- http://www.acf.hhs.gov/programs/cse/stsys/!cse.htm

## Thanks To Our Guests

- Eileen Coughlin,     *New Jersey’s Office of Child **     Support and Paternity*
- Nancy Starling Ross,      *PSI Technologies, Inc*
- Joe Bodmer,      *Federal OCSE*