HomeMy WebLinkAbout20120150 RESOLUTION
RE: APPROVE NON-FINANCIAL AGREEMENT FOR A FRAUD PREVENTION PILOT
PROJECT AND AUTHORIZE CHAIR TO SIGN -SOLUTION DESIGN TEAM
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Non-Financial Agreement for a Fraud
Prevention Pilot Project between the County of Weld, State of Colorado, by and through the Board
of County Commissioners of Weld County, on behalf of the Department of Human Services, and
Solution Design Team, commencing upon full execution,with further terms and conditions being as
stated in said agreement, and
WHEREAS,after review, the Board deems it advisable to approve said agreement,a copy of
which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Non-Financial Agreement for a Fraud Prevention Pilot Project between
the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld
County, on behalf of the Department of Human Services, and Solution Design Team, be, and hereby
is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to
sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 16th day of January, A.D., 2012.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Sean P. n ay, Chair (Th
Weld County Clerk to the Board
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lE IL //,
illiam F. GaYcia, Prq-T
BY:
Deputy Cl rk to the Board 9 is6tr a Kirkmeyer
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AS TO - � • ® g c. . .rn y ct .a QrYvtCc CIS
Douglasademache�
Date of signature: ol " 7- / 3--
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1 1� l a 0-4.) 2012-0150
HR0083
MEMORANDUM
1861
I�r DATE: January 12, 2012
�N TO: Sean P. Conway, Chair, Board of County Commissioners
U1 c a uj.•1 T Y
FROM: Judy A. Griego, Director, Human ervices oepgt ent
RE: Non-Financial Agreement bet we the W ld Co '
Department of Human Services d Solut on Desi n
Team
Enclosed for Board approval is a Non-Financial Agreement between the Department and
Solution Design Team. This Agreement was reviewed under the Board's Pass-Around
Memorandum dated January 9, 2012, and approved for placement on the Board's Agenda.
An agreement with SAS was reviewed under a Pass-Around Memorandum dated November 1, 2011,
and approved for placement on the Board's Agenda. At the time SAS was unable to fulfill their plan
to do a no cost fraud referral scoring pilot because they were planning to implement a State-wide pilot,
which was to include Weld County. We are now contracting for this service with Solution Design
Team which is part of SAS.
The Department and Solution Design Team are proposing to enter into a non-financial agreement to
implement a custom demonstration project to determine whether specific predictive analysis and data
mining tools can increase investigators efficiency and effectiveness. Specific Pilot target objectives are
as follows:
1. Increase investigator efficiency and effectiveness.
2. Identify and score referral cases which have the highest likelihood of being a significant
fraud case.
If you have any questions, please give me a call at extension 6510.
2012-0150
Weld County Department of Human Services
Solution Design Team Pilot
December 19, 2011
Problem Statement
The number of referrals for potential fraud waste and abuse(FWA)of various public assistance
programs administered by Weld County Department of Human Services(WCDHS)has been steadily
increasing over the past several years. in the coming months,WCDHS will implement strategies to
enhance the ability to assign fraud referrals. To determine if automated scoring of the fraud referral
cases by using various predictive analytic tools win increase the WCDHS's efficiency and effectiveness,
it is critical for the WCDHS to run a pilot and understand the corresponding results.
Solution Design Team(SOT)with support from the SAS Institute who has worked in other states to
score cases for investigation and collections as a means to automate the process.
Goals and Objectives
To support the overarching goal which is to enhance referral Investigations, the WCDHS and SOT are
proposing to enter into a "no-cost" pilot project (the Pilot) to determine whether specific predictive
analysis and data mining tools can increase investigators efficiency and effectiveness. Specific Pilot
target objectives are as follows:
1. Increase investigator efficiency and effectiveness.
2. Identify and score referral cases which have the highest likelihood of being FWA.
Pilot Project
This document describes the high level tasks,activities,and requirements for completing the Pilot. The
Pilot will use tools such as data integration/data quality, data mining, advanced analytics, and SDT
predictive models' used to score cases by collecting and consolidating data from various WCDHS data
sources. Such data sources may include the Colorado Benefits Management System and WCDHS
current Excel-based system for tracking and managing referrals.
Following are descriptions of tools and methods SDT will demonstrate in support of the Pilot goals and
objectives. These will result in actual products SDT will provide to the WCDHS for its use by
investigators that may result in increased efficiency and effectiveness.
Data Collection and Data Quality
As requested by SOT and given WCDHS data relating to the cases referred for potential FWA, SDT will:
1. Identify data inconsistencies and Inaccuracies that would,if not for the SDT tools used in the
Pilot,be difficult and/or time consuming to identify in preparation for data mining and analysis;
and
2. List unique individuals that can be identified across multiple WCDHS data sources regardless of
current identification standards and content where duplicate customer records may exist.
Data Exploration
SOT will automate identification of the cases through data analyses resulting in profiles or models of
most likely candidates for investigation.
See Glossary for definitions.
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Weld County Department of Human Services SDT Pilot
SDT will also develop associated business rules to identify these candidates as appropriate.
Predictive and Exploratory Modeling
If the appropriate data is available,SOT wilt create predictive models to:
1. Create a profile of known FWA patterns by using historical and behavioral information to
identify common behaviors and patterns. This may include aggregating individuals into dusters
based on demographics profiles and social context.
2. Produce scoring models which relatively rank potential candidates for investigation based on
the likelihood of them acting in a FWA manner.
3. Measure the effectiveness of the scaring models.
This list may be narrowed or modified after the initial data assessment and exploration and upon the
agreement of SDT and the WCDHS.
If data is not available to perform modeling listed above,those tasks will not be performed.
Deliverable Products
Pilot tasks and activities described herein will result in the delivery to the WCDHS by SDT of the
following:
• Working prototypes that exhibit the core functionality of data mining capabilities applied to
WCOHS data, This includes a computer-based demonstration of the working prototype
exhibiting the core functionality of the data mining completed in the Pilot.
• Reports associated with the results of the Predictive and Exploratory Modeling and profiles
noted above to include without limitation:
o A scored list of potential candidates for investigation,ranked and otherwise;
o Value,scoring,and predictive models and methods
Project Plan& 77nsellne
SDT will provide an outline of the Project Plan as part of this pilot agreement(see Attachment). This
outline will be developed into a final plan upon the acceptance of the Pilot agreement by both parties
and developed collaboratively. The plan shall incorporate this document but will consist of:
• Complete statement and scope of work;
• Descriptions of project and product deliverables;
• Roles and responsibilities including a communications plan;
• Change and risk management considerations;and
• Task and execution schedule in Gantt format.
Upon acceptance of this Pilot Agreement by both parties,the Pilot will be completed within 30-45
days. A project plan will be completed before the Pilot project is executed. The completed plan will
replace the plan outline through an amendment to this Pilot agreement.
WCDHS Responsibilities
As custodians of the licensing and customer data,and in order to provide SDT with information and
materials that are required to produce Pilot deliverables,the WCOHS will perform general and specific
2askczs fnllnu.c•
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Weld County Department of Human Services SDT Pilot
• Exhibit a working knowledge and understanding of the Pilot project,including its goals and
objectives,project plan,deliverables,and expected results;
• Provide timely access to appropriate WCDHS staff;
• Be responsive to SDT requests in support of Pilot project activities and their provision of
deliverables;
• Provide data samples,data dictionaries and domain knowledge about data contents and data
access;
• Provide known business rules for determining most likely candidates for investigation. These
will encapsulate WCDHS institutional knowledge,impressions,and experience regarding past
FWA behaviors and patterns.
• Decide what activities are to be used to leverage the information derived from the Pilot. The
effectiveness of the activities is based on factors,many of which are outside the control of SDT,
e.g.development,creation,and execution of the actual investigation activities.
Passible Results
Pilot effectiveness must be observable and/or measureable. in addition to meeting goals and
objectives and receipt of the Pilot deliverables,the WCDHS will expect the following tangible results
from this pilot effort. WCDHS will work with SDT to gain any knowledge required to interpret these
results or findings as part of the Pilot.
1. WCDHS may gain new insight into the use of predicative and exploratory modeling to add value
to the development,creation,and execution of investigation activities related to the Pilot.
2. Investigator efficiency and effectiveness may increase over and above what WCDHS would have
experienced without using the results of the Pilot for development,creation,and execution of
the related investigative selection activities.
3. Access to case information may be timelier for use by various programs within WCDHS.
4. Areas where data quality in CBMS and/or other data sources may be improved will be
documented.
Primary Contacts
t.ead contacts for the Pilot activities for SDT and the WCDHS are as follows. These individuals are
responsible for communications with their respective staffs working on the Pilot and will be consulted
for changes to the Pilot plan.
• SDT—Tom Stockburger;(303)221-4253; tom.stockburger@solutiondesignteam.com
• WCDHS— Mark Magnuson-(970)352-1551 Ext 6312;magnusma@co.weld.co.us
Organizational Conflict of Interest
SDT and the Weld County Department of Human Services both understand and agree that:
• Any business entity or person is prohibited from being awarded a contract if they have an
"Organizational conflict of interest"with regard to the solicitation and the resulting contract.
• An'organizational Conflict of Interest"exists when a person or business entity who was
engaged by the State of Colorado in preparing a solicitation,including having access prior to the
January 3,2012 Page 3 of 7
Weld County Department of Human Services SOT Pilot
solicitation,of procurement-sensitive information related to this procurement process to
include,but not limited to Requirements,Statements of Work,or Evaluation Criteria.
• In terms of the procurement process,the Pilot as outlined in this agreement is part of the
research phase of a possible future procurement. At this time, no specific future procurement
related to this Pilot is planned or anticipated.
• With respect to this Pilot,SOT will not be engaged in preparing a solicitation,including having
access to or procuring any sensitive information for,any solicitation.
Confidential Information—State and County Records
Confidential information indudes,but is not necessarily limited to,any state records,personnel
records,and information concerning individuals.Such information shall not include information
required to be disclosed pursuant to the Colorado Open Records Act,CRS§24-72-101,et seq.
Confidentiality
Contractor shall keep all State and County records and information confidential at all times and
complies with all laws and regulations concerning confidentiality of information.Any request or
demand by a third party for State records and information in the possession of Contractor shall be
immediately forwarded to WCDHS.
Notification
Contractor shall notify its agent,employees,subcontractors and assigns who may come into
contact with State and County records and confidential information that each Is subject to the
confidentiality requirements set forth herein,and shall provide each with a written explanation
of such requirements before permitting them to access such records and information.
Use,Security,and Retention
Confidential information of any kind shall not be distributed or sold to any third party or used
by Contractor or its agents in any way,except as authorized by this Contract or approved in
writing by the County or State. Contractor shall provide and maintain a secure environment
that ensures confidentiality of all State and County records and other confidential information
wherever located. Confidential information shall not be retained in any files or otherwise by
Contractor or its agents,except as permitted in this Contract or approved in writing by WCDHS.
Disclosure—•Liabili'ty
Disclosure of State and County records or other confidential information by Contractor for any
reason may be cause for legal action by third parties against Contractor,the County or their
respective agents. Contractor shall indemnify,save,and hold harmless the County and the
State,its employees and agents,against any and all claims,damages,liability and court awards
including costs,expenses,and attorney fees and related costs,incurred as a result of any act or
omission by Contractor,or its employees,agents,Subcontractors,or assignees pursuant to this
Agreement
January 3,2011 Page 4 017
Weld County Department of Human Services SOT allot
Signatures
Weld County Department Human Services
\._ ((jjthj\ O\ j(K/13 il3rjepCD
Solution Design Team
p3-TA-1J- oR
Date
tL-c, aft(L>i<4cer
David Mitchell,Founder and Chief Executive
Weld County Department of Human Services Procurement
Date
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST:,,,
Sean P. Conway, Chair
Weld County Clerk to the :oar. sLa�� ♦ JAN 1 6
BY: i ►�I/, ���� +i0's *,
Deputy Cle ' ' to' the Bo rd f 0.0.1
t
l86 ,ii1���
January 3,2012 Page S of 7
L7/v? - (JJ55
Weld County Department of Human Services SOT Pilot
Glossary
Term Definition
Data integration/data quality Taking data from WCDHS source systems(e.g.COINS,Excel)and
standardizing and merging that data together,removing duplicates
and inconsistencies
Data mining Data processing using sophisticated data search capabilities and
statistical algorithms to discover patterns and correlations in large
preexisting databases;a way to discover new meaning in data
Advanced analytics Analogous to data mining,the study of business data using
statistical analysis in order to discover and understand historical
patterns with an eye to predicting and improving business
performance in the future
Predictive models SOT will have access to scoring models.These models will be
utilized during the pilot.
Profiles These are data models that represent the characteristics of
candidates for FWA investigation that the WCDHS wants to target.
These profiles are created during the data mining and data
exploration phases of the pilot.
January 3.2012 Pap 6 of 7
Weld county Department of Human Services SDT Pilot
Attachment
Project Plan Outline
Following is an outline showing the areas of focus for the project plan to be developed by SOT and
agreed upon by the WCDHS upon execution of the Pilot Agreement.
1. Project Description
1.1. Project Purpose
1.2. Goals and Objectives
1.3. Pilot Scope
1.3.1. Data Collection and Data Quality
1.3.2. Data Exploration
1.3.3. Predictive and Exploratory Modeling
1.4. Pilot Deliverables
2. Project Work Plan and Timeline
2.1. Gantt Chart
3. Staffing Management Plan
3.1. Purpose
3.1.1. SDT Staffing Plan
3.1.2. WCDHS Responsibilities
4. Communication Plan
4.1. Communications Methods
4.2. Primary Contacts
4.3. Closeout Activities
5. Risk Management Process
5.1. Risk Process Flow
6. Change Management Plan
January 3,2012 Page 7ail
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