Child Care Administrator’s Improper Payments Information Technology Guide

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C. Identifying and Evaluating Alternatives (continued)

To move forward with a prudent decision on which technical path to pursue, States may consider conducting both a strategic analysis and an alternatives analysis. A strategic analysis can help States identify potential and reasonable alternatives, and an alternatives analysis can help States assess those alternatives based on a selection of key criteria. Appendix 2 offers a graphic representation of these processes.

1. Strategic Analysis

For the purposes of this guide, the strategic analysis begins by clearly defining user requirements and then performing several key analyses that can help States identify potential technology solutions. The following list describes these activities:

a. Developing User Requirements

Going through a structured, disciplined process to identify needs and develop clear user requirements can assist States in evaluating alternatives. For example, if one requirement is using mobile devices to determine eligibility for child care at off-site locations, there may be a greater likelihood that the State needs to draw on the expertise of an outside vendor with that core competency. If the user requirement is having an eligibility system available via the Internet, which did not specify a need for mobile computing functionality, then a decision to use in-house development staff may be more likely. Chapter III, Section B provides guidance on developing user requirements.

b. Performing Strategic Plan Analysis

The Agency and State’s programmatic and technical strategic plans can provide important insight into current and future plans for service delivery and technical support and bring to light opportunities for enterprise investment and constraints. For example, if a State is moving forward with one of the card technologies to support employee payroll; Temporary Assistance for Needy Families (TANF) cash assistance; and/or the Women, Infants, and Children (WIC) program, there may be an opportunity to leverage staff and resources to implement a card-based attendance tracking, reporting, and payment system for subsidized child care. In addition to surfacing opportunities to leverage existing Agency or State’s investments for the subsidized child care program, strategic plans may introduce important constraints, such as the movement away from a particular, outdated software or hardware.

c. Taking Inventory of the Technical Environment

Taking an inventory of the technical environment (hardware and software) and technical staff skill sets can help decision makers in assessing technical approaches. For example, if a State Agency does not possess the hardware, software, and staff with technical skills to develop and support a web-based application, then a web-based solution may require significant internal investment or a decision to contract with a vendor.

d. Identifying Budget Constraints

Understanding the scope of financial resources available for the initial development (system creation and testing) and maintenance can significantly impact the decision on how to proceed. Regardless of the chosen direction, all projects have ongoing costs. Typically, over 70% of costs for a software project occur after fully developing a system.

e. Performing a Baseline Study

Identifying the practices of other State Agencies responsible for the subsidized child care program and looking at comparable industries can help States generate a list of possible alternatives. While Chapter III, Section B discusses how to select these practices, States also could query their Department of Health and Human Services (HHS) regional office staff or national associations for this information or conduct a simple survey themselves. Additionally, States could conduct a Request for Information (RFI) or hold a pre-bid conference of prospective bidders to help identify potential solutions and technical approaches. Chapter III, Section C discusses these last two items in greater detail.