Legacy System Replacement Options Analysis

The WCB is inviting your firm to submit a Proposal for the following: The WCB requires a Contractor to create and present a business case for WCB's digital modernization initiative, comparing core legacy application replacement alternatives that best enables strategic business outcomes and performance measures.ObjectiveThe WCB requires a Contractor to prepare a comprehensive and defensible business case and modernization options analysis for its core Compensation and Assessments systems. The engagement must provide the information and recommendations necessary to support Executive and Board decisions-making regarding the preferred modernization approach, acceptable risk profile, funding requirements, implementation sequencing, and governance and accountability framework for execution.The business case must assess and compare the following modernization options: Build, Buy, Refactor, Blend and Status Quo using a common evaluation framework. The analysis must identify the preferred option and a practical implementation approach, supported by a five-year roadmap and a 10-year total cost of ownership model.Business Outcomes and Decisions to Be EnabledThe engagement must align all findings, analysis, and recommendations with WCB's strategic business outcomes, including the following.•Claims management, with improved timeliness, consistency, transparency and quality of claims decisions.•Case management and return-to-work, with improved coordination, case progression, outcome tracking, and stakeholder experience.•Employer assessments and billing, with improved accuracy, efficiency, auditability, financial integrity, and service transparency.•Operational resilience, with improved security, privacy, data protection, continuity, maintainability, and compliance with applicable regulatory and policy requirements.The Contractor must answer the following decision questions:•What business problems, constraints, or fundamental issues must be solved before modernization options are selected?•Which capabilities are differentiated, policy-specific or jurisdiction-specific, and which are commodity?•Which outcomes and measures will confirm modernization success?•What organizational, governance, business process, technology, and operational conditions that must be in place before WCB proceeds with any modernization option?•Which modernization option best balances desired business outcomes, risk, cost, implementation complexity, reversibility and long-term sustainability?•What decisions, governance structures, accountabilities, and approvals, and funding commitments are required to proceed?WCB-Provided Inputs and Contractor Use of InputsWCB will make the following information and materials available to the Contractor, where available and applicable:•Architecture artifacts at the conceptual, logical and physical levels for the Compensation and Assessments software stacks.•Business capability mapping for relevant Compensation and Assessments domains.•Technical debt information and known application, integration, data and infrastructure constraints.•Operating model inputs for Compensation, including target outcomes, measures, leading indicators and lagging indicators.•Relevant policies, compliance constraints, privacy and security requirements, data residency requirements, known vendor relationships, cost information and operational performance information.The Contractor must use the information provided by WCB to:•Validate whether the supplied inputs are sufficient for board-level decision-making.•Identify material information gaps, assumptions and evidence limitations.•Use WCB inputs to accelerate current-state validation rather than produce a lengthy discovery report.•Ensure that all findings, conclusions, and recommendations are traceable to the evidence, assumptions and constraints, and evaluation criteria on which they are based.•Identify any additional information required to support a defensible business case and option analysis.Decision Governance, Evaluation and Risk FrameworkThe Contractor must establish and execute a staged decision-making framework at the start of the engagement to support transparent, evidence-based evaluation of modernization options and informed Executive and Board decision-making.The framework must include the following.•Defined phases, decision gates, and the decisions required at each gate.•Decision criteria, weightings and scoring methodology.•Decision rights, roles, accountabilities and required approvals.•Required artifacts and evidence thresholds for each phase.•A decision log documenting options considered, advanced, retained, deferred, or eliminated including the rationale for each decision.•Mechanisms to support Executive and Board decision-making and prevent premature convergence on a preferred solution before alternatives have been sufficiently evaluated.The Contractor must establish and maintain a comparable risk register for all modernization options assessed. At a minimum, the register must address:•Delivery and implementation risk•Operational and business continuity risk•Strategic alignment risk•Financial and cost overrun risk•Vendor dependency and lock-in risk•Security, privacy and data protection risk•Organizational risk•Integration and interoperability complexity•Data migration and data quality risk•Disruption to claims and operations•Regulatory, compliance, and audit exposure•Data residency and sovereign hosting•Vendor concentration risk•Foreign jurisdiction and legal exposure.For each modernization option, the risk register must identify and assess:•Risk description and source•Likelihood and impact•Mitigation strategies•Residual risk following mitigation•NPV (Net Present Value) - One time and ongoing•High level project estimate range•Unavoidable or accepted risk•Dependencies and assumptions•The implications of the risks decision-making including any trade-offs requiring Executive or Board consideration.Phased Engagement ModelThe Contractor shall structure the Services in the phases set out below. Each phase must produce evidence-based deliverables that answer the required questions and meet the stated acceptance criteria.Phase 1. Current State Validation and Strategic GuardrailsThe purpose of this phase it to validate the current state using WCB-provided inputs and establish the business, technical, risk and decision guardrails required before option selection.Questions answered by this phase•Which business outcomes and measures must modernization enable?•Which Compensation and Assessments capabilities are differentiated, policy-specific, jurisdiction-specific or commodity?•Which technical debt, integration, data, operational, privacy and security, and data residency constraints must be considered in evaluating modernization options?•Which preconditions must be met before WCB can evaluate and compare modernization options?RequirementsThe Contractor shall:•Review WCB-provided architecture artifacts, capability maps, technical debt information and operating model inputs.•Map systems, capabilities, critical dependencies and material constraints at a level of detail sufficient to support the analysis and comparison of modernization options.•Confirm evaluation criteria, weighting methodology, decision rights, risk tolerances, and non-negotiable constraints to be applied during option evaluation.Deliverables and acceptance criteria•Current State Validation and Strategic Guardrails Report accepted when WCB confirms the report accurately summarizes core Compensation and Assessments systems, dependencies, constraints, risks and evidence gaps without unnecessarily duplicating prior discovery or assessment work.•Business Capability Classification accepted when each relevant capability is classified as differentiated, policy-specific, jurisdiction-specific or commodity, including supporting rationale and implications for Build, Buy, Refactor, Blend and Status Quo.•Decision Framework, Evaluation Criteria and Weightings accepted when decision criteria, weightings, decision gates, evidence thresholds and accountable decision owners are documented and approved for use in Phase 2.•Assumptions and Constraints Log accepted when information gaps, evidence limitations, non-negotiable constraints and assumptions are documented with decision implications.•Initial Risk Register accepted when the risk categories, scoring method and initial risks are documented consistently across options.Phase 2. Option AnalysisThe purpose of this phase is to evaluate and compare Build, Buy, Refactor, Blend, and Status Quo options using a common, evidence-based framework, and narrow the options for business case development.Questions answered by this phaseThis phase shall determine:•What does each option enable, constrain, or require WCB to give up?•How each option aligns with WCB policy complexity, jurisdictional requirements and business capabilities relating to claims management, case management, return-to-work, assessments and billing?•What dependencies, sequencing needs, integration complexities, data migration challenges, operational continuity impacts, and organizational impacts apply to each option?•What vendor dependency, data residency, privacy, security, legal, and jurisdictional considerations apply to each option?•What comparative risks, residual risks, reversibility considerations, exit implications, cost ranges, and decision impacts are associated with each option?•Which options should be advanced, combined or eliminated from further considerations?RequirementsThe Contractor shall:•Evaluate Build, Buy, Refactor, Blend and Status Quo, and any additional evidence-supported options, against the approved criteria and weightings.•For each option, document:o Capabilities enabled;o Capabilities constrained or relinquished;o Alignment to business outcomes and strategic objectives;o Dependencies and sequencing requirements;o Implementation considerations;o Reversibility considerations; ando Exit and transition considerations.•Assess integration complexity, data migration requirements, operational continuity impacts, decommissioning implications, vendor dependency risks, data residency considerations, privacy and security requirements, and legal and jurisdictional implications for each option.•Conduct a vendor-neutral assessment of the solution and market landscape analysis where relevant to Buy and Blend options.•Develop Rough Order of Magnitude (“ROM”) cost estimates and benefits associated with each option, including implementation, transition, coexistence, licensing or subscription costs, operations, change managements, decommissioning costs, and contingency assumptions.•Apply the approved risk framework consistently across all options and identify residual risks that WCB would be required to accept if the option is selected.•Document the evidence, assumptions, and uncertainties supporting each assessment and conclusion.Deliverables and acceptance criteria•Option Evaluation Framework is accepted when the approved criteria, scoring method, weightings and evidence requirements are usable for consistent option comparison.•A Comparative Decision Matrix is accepted when each option is scored using the same criteria, and every score is traceable to supporting evidence, assumptions, constraints and documented rationale.•Shortlisted Options Report accepted when options advanced, combined or eliminated are justified with trade-offs, risk and implementation implications, business impacts, cost considerations, and alignment with WCB strategic objectives and business outcomes.•Updated Risk Register accepted when likelihood, impact, mitigation strategies, residual risk, unavoidable risk, ownership, and decision implications are clearly documented using a consistent methodology that enables direct comparison across options.•ROM 10-Year Total Cost of Ownership ("TCO") Model accepted when cost categories, ranges, net present value calculations, assumptions, benefit drivers, sensitivity drivers and material uncertainties are explicit and comparable across options, with all calculations and assumptions traceable to supporting evidence.Phase 3. Business Case and RecommendationThe purpose of this phase is to convert the option analysis into a recommended modernization strategy and a Board-ready business case that supports informed executive and Board decision-making.Questions answered by this phaseThis phase shall determine:•Which option, or combination of options, WCB should pursue and the rationale for that recommendation?•What risks, costs, trade-offs and constraints, and obligations WCB would accept under the recommended option?•What business outcomes, success measures, and benefits are expected, and over what timeframe they are anticipated to be realized?•What executive decisions, accountabilities, funding approvals, governance structures, and risk acceptances are required to proceed?RequirementsThe Contractor shall:•Refine the preferred option, including 10-year TCO, net present value, benefits, risks, implementation implications, dependencies, and organizational change impacts.•Define the recommended sourcing and delivery approach at a level of detail suitable to support Executive and Board decision-making.•Document all options considered, including the reasons each alternative was recommended, combined, deferred, or not recommended.•Identify the decisions, accountabilities, funding approvals, risk acceptances, and conditions required before execution can commence.Deliverables and acceptance criteria•Board-Ready Business Case accepted when it includes the following:o a clear and defensible recommendation;o identify alternatives considered and the rationale for their acceptance, combination, deferral, or rejection;o quantifies or estimates expected costs, benefits, risks, and implementation impacts;o includes a 10-year TCO analysis and net present value assessment;o identify measurable outcomes, benefit realization measures, and success criteria;o documents material assumptions, dependencies, implementation implications, constraints, and uncertainties;o risks requiring acceptance by WCB; ando states the funding, governance, and decision approvals required to proceed.•Final Recommendation and Decision Log which shall:o Identify all required decisions and approvals;o Assign accountable decisions owners;o Document risks proposed for acceptance;o Identifies conditions that must be satisfied before execution proceeds;o Identifies required funding and governance approvals; ando Provide traceability between recommendations, supporting evidence, and required decisions.Phase 4. Five-Year Modernization Roadmap and Executive Decision PackageThe purpose of this phase is to translate the recommended modernization option into an executable, sequenced roadmap and decision package.Questions answered by this phaseThis phase shall determine:•Which foundational capabilities must be delivered first?•What activities, outcomes, and decisions should occur within each year of the five-year roadmap?•What transition, coexistence, data migration and decommissioning approach WCB should adopt?•What governance structures, accountabilities, performance measures, controls and decision gates are required to manage the overall implementation successfully?RequirementsThe Contractor shall:•Avoid a big-bang replacement approach.•Sequence work over a five-year period, identifying dependencies, milestones, decision gates, required approvals, measurable outcomes, and “go-no-go” criteria.•Identify foundational data, integration, architecture, security, privacy, governance and change management capabilities.•Include technical debt mitigation, transition approach, data migration, application coexistence, decommissioning and capability maturity progression.•Identify accountabilities, high-level resourcing considerations, procurement dependencies and implementation dependencies.Deliverables and acceptance criteria•Five-Year Modernization Roadmap accepted when it contains sequenced phases, milestones, dependencies, decision gates, accountable owners, measurable outcomes and “go-no-go” criteria.•Transition, Coexistence and Decommission Strategy accepted when it identifies the recommended transition pattern, data migration approach, operational continuity controls and systems or capabilities to be retired.•Executive and Board Presentation Deck accepted when it is concise, decision-oriented and includes the recommended option and rationale, trade-offs, costs, risks, roadmap, decisions requested and measurable outcomes.Required DeliverablesThe Contractor shall produce, at minimum, the following deliverables. This list has been aligned to the phase outcomes and acceptance criteria in Section 7.Phase 1•Current State Validation and Strategic Guardrails Report•Business Capability Classification•Decision Framework, Evaluation Criteria and Weightings•Assumptions and Constraints Log•Initial Risk RegisterPhase 2•Option Analysis and Evaluation Framework•Comparative Decision Matrix•Shortlisted Options Report•Updated Risk Register•ROM 10-Year TCO ModelPhase 3•Board-Ready Business Case•Final Recommendation and Decision LogPhase 4•Five-Year Modernization Roadmap•Transition, Coexistence and Decommission Strategy•Executive and Board Presentation DeckEach deliverable shall be evaluated against the applicable criteria in Section 7 and shall not be considered complete until accepted in writing by WCB.WCB may reject a deliverable where it:o Primarily consists of workshop summaries;o Relies principally on generic market observations or industry best-practice statements;o Lacks supporting evidence, analysis, or traceability;o Fails to provide actionable recommendations or decision support;o Does not identify measurable outcomes, accountabilities, dependencies, risks, or implementation implications; oro Does not satisfy the applicable acceptance criteria.Vendor Neutrality and DisclosureVendors must disclose any actual, potential or perceived conflicts of interest that could reasonably influence, or be perceived to influence, the Services, analysis, evaluations, recommendations, or outcomes of this engagement. Such disclosure must include, at a minimum:oSoftware vendor relationship;oCloud service provider relationships; andoImplementation partnerships and financial incentives.The Vendor must conduct all analysis, assessment, market reviews, and recommendations in a vendor-neutral, independent, and evidence-based manner and not tied to any current or potential future implementation revenue.The Vendor must promptly disclose any new conflict of interest arsing during the engagement.Experience RequirementsThe Vendor must demonstrate experience and capability in the following areas:o Public-sector or regulated industry modernization experience;o Workers' compensation, insurance, disability management, benefits administration expertise;o Enterprise architecture capability and technology modernization strategy;o Development of business cases, cost models, benefit realization and recommendations for large-scale business and technology transformations;o Evaluation of Build, Buy, Refactor, Blend, and related modernization approaches;o Organizational change management, business transformation and technology modernization planning and execution, ando Preparation and presentation of strategic recommendations to Executive and Board-level audiences.The Services shall normally be performed during Business Hours. However, the WCB may request some of the Services to be performed outside Business Hours from time to time, as deemed necessary, in the unfettered discretion of theWCB. The Contractor shall not be entitled to charge overtime rates unless specified in the Fee Schedule.The Vendor must have experience and knowledge with the following:a.Developing digital modernization strategies, technology roadmaps, and supporting business cases for complex organizations.b.Resources with a deep understanding of IT application, business capability and maturity assessments.c.Public sector modernization experience. Experience with workers compensation/regulatory modernization would be an asset but not mandatoryd.Organization change management (OCM) experience, including stakeholder engagement, change readiness, adoption planning, communications, and benefits realization.e.Provide WCB with a realistic roadmap for modernizationf.Strong business case methodology in public sector modernization and organization transformationg.IT implementation and multi-year road map development for application rationalization; andh.Presenting to Executive and Board committees to gain buy-in and acceptance of recommended digital modernization optionsThe Vendor must identify the proposed engagement lead and key personnel and provide evidence of relevant qualifications, experience, and successful delivery of comparable projects or engagements.The WCB requires the Successful Vendor to deploy quality and seasoned resources to provide the Services. The WCB shall reserve the right to terminate the Agreement if the respective Vendor proposes or field inadequately qualified resources in providing the Services, or such other reasons in the opinion of the WCB, acting reasonably.The Contractor will not be required to have and maintain workers compensation coverage for its workers who will be providing the Services, unless required pursuant to The Workers Compensation Act.The Services shall be provided onsite at the WCB's facilities and from the Contractor's facilities located in Canada, as applicable, unless otherwise agreed in writing.It is expected the Services will be required for a period of three (3) months with a preferred start date of September 28, 2026. The WCB shall have an irrevocable option to further extend the Services on the same terms and conditions and fees for one (1) additional period of up to three (3) months.The Services will be structured with an Agreement that will require the parties to enter into subsequent Statements of Work (collectively the "SOWs").The full scope of work for the Services cannot be determined by the parties at the time the Agreement is executed because it is anticipated the WCB's needs and priorities will evolve as different components of the Services are completed and further information is collected. The parties shall mutually agree upon the distinct scopes of work for the Services, including the total fees, deliverables, and completion dates for same, in writing, via the SOWs, prior to commencing work on such new components.