EDD Releases Massive Claims Management Replacement RFP

The Employment Development Department (EDD) has released a massive request for proposals for a vendor capable of building out its new integrated claims management system (ICMS).

The 688-page solicitation, released Monday, seeks to replace the department’s aging claims management system in the course of the next five years.

EDDNext Deputy Director Ron Hughes toldIndustry Insider — California earlier this month that the system is several decades old and has become increasingly difficult to scale, maintain and justify from a cost perspective.

“We’ve got a 45-year-old mainframe-based claims management system, and the challenge with that is that it’s really difficult to make any changes,” he said.

Hughes noted during that conversation that the RFP was designed to be “vendor agnostic” to allow vendors to share their input and expertise on the necessary capabilities of the new system.

The ICMS project is just the latest step in an ongoing and holistic effort to modernize the large department, known as EDDNext. Officials said earlier this year that the pandemic stress tested many of EDD’s critical systems and processes, highlighting vulnerabilities and areas for needed improvement.

“The one benefit of all of that challenge is that we’re really battle-tested, we came out knowing the limitations of our technology, and the limitations of our staff and processes. And so we could design something new that could withstand much more challenge. We are basically rebuilding EDD from the top to the bottom,” EDD spokesperson Gareth Lacy said at the time.

EDD is one of the largest departments in addition to being the largest tax collection agency with nearly 10,000 employees across the state, according to the department website.

The initial contract term will be five years: four years of design, development and implementation, and one year of maintenance and operations. The state may authorize two one-year extensions for ongoing maintenance and support services.

Proposals are due by 2 p.m. Nov. 5. Katie DeAngelis is the point of contact for this solicitation.