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ERCOT PUBLICREQUEST FOR PROPOSALRequest for Proposal forServiceNow ITSM 9-19 JKRDate of Release: September 3, 2019ERCOT

Request for Proposal for ServiceNow ITSM 9-19 JKRERCOT PublicTable of Contents1. General Information . 31.1. Request for Proposal (RFP) Objective . 31.2. ERCOT Background . 31.3. Strategic Elements . 31.4. Basic Philosophy: Contracting for Results . 41.5. Legal and Regulatory Constraints . 41.6. ERCOT Point of Contact . 41.7. Procurement Timeline . 51.8. Communications Regarding This Procurement . 51.9. RFP Cancellation/Non-Award . 51.10.Right to Reject Proposals . 51.11.No Reimbursement for Costs of Proposals . 52. Scope and Requirements . 62.1. Project Scope Overview . 62.2. Business Organizational Structure . 62.3. Information Technology Organizational Structure. 62.4. ERCOT IT Service Management Journey . 72.5. IT Service Management Vision for ERCOT . 72.6. Goals and Objectives to be Achieved with ServiceNow Incident and ProblemManagement Software . 72.7. Product Scope . 82.8. Deliverables . 82.9. Vendor Delivery Requirements . 93. General Instructions and Requirements. 103.1. Notice of Intent to Propose . 103.2. Vendor Questions and Comments. 103.3. Modification or Withdrawal of Proposal . 103.4. News Releases. 103.5. Incomplete Proposals . 103.6. ERCOT Use of Vendor Ideas . 113.7. Additional Information . 113.8. Instructions for Submitting Proposals . 11 2018 ERCOTAll rights reserved.i

Request for Proposal for ServiceNow ITSM 9-19 JKRERCOT Public3.9. Format and Content. 113.10.Joint Proposals . 164. Evaluation . 184.1. Evaluation of Proposals . 184.2. Evaluation Criteria . 184.3. Oral Presentations and Site Visits . 184.4. Discussions with Respondents . 185. ADDENDUM A . 195.1. Incident Management Requirements . 195.2. Problem Management Requirements . 205.3. Service Catalog Requirements . 225.4. Knowledge Management Requirements. 235.5. Performance Analytics Requirements . 235.6. ERCOT IT Service Management Integration & Third Party Tools Requirements24 2018 ERCOTAll rights reserved.ii

1.General Information1.1.Request for Proposal (RFP) ObjectiveERCOT is seeking an Information Technology Infrastructure Library (ITIL) compliant enterprisewide Information Technology Service Management (ITSM) solution to support over 800employees.ERCOT currently utilizes a variety of commercial and self-developed applications to manageInformation Technology services and processes. ERCOT seeks an implementation partner todeploy ServiceNow to meet our needs for ITSM. ERCOT also seeks to purchase theServiceNow software.The implementation vendor shall be able to deploy ServiceNow and provide integrationservices which meet ERCOT’s defined business requirements. The implementation vendorshall assist in helping ERCOT progress towards greater organizational maturity in ITSM forERCOT through a thoughtful implementation of ITIL best practices.1.2.ERCOT Background1.2.1. Overview of Electric Reliability Council of Texas, Inc.The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to24 million Texas customers, representing about 90 percent of the state’s electric load.As the independent system operator for the region, ERCOT schedules power on anelectric grid that connects more than 46,500 miles of transmission lines and 570 generation units. ERCOT also performs financial settlement for the competitivewholesale bulk-power market and administers retail switching for 7 million premises incompetitive choice areas. ERCOT is a membership-based 501(c)(4) nonprofitcorporation, governed by a board of directors and subject to oversight by the PublicUtility Commission of Texas and the Texas Legislature. Additional information aboutERCOT can be found at http://www.ercot.com/.1.3.Strategic Elements1.3.1. Contract TermERCOT intends to award a contract resulting from this solicitation for an initial term fromdate of award as necessary to fulfill the goals of this Request for Proposal (RFP).Any contract issued as a result of this solicitation is subject to cancellation, withoutpenalty, either in whole or in part, for breach of contract. Such a contract may also becanceled by ERCOT for convenience upon a thirty- (30) day written notice. 2018 ERCOTAll rights reserved.3

1.3.2. Contract ElementsThe term “contract” means the contract was awarded as a result of this RFP and allexhibits attached hereto. At a minimum, the following documents will be incorporatedinto the contract: this RFP and all attachments and exhibits; any modifications,addendum, or amendments issued in conjunction with this RFP; and the successfulRespondent’s proposal. The Respondent, if selected, must execute ERCOT’s MasterAgreement. The actual work to be performed and the compensation for such work willbe documented in a Statement of Work. If the Respondent currently has an activeMaster Agreement with ERCOT, only a new Statement of Work will be required.1.4.Basic Philosophy: Contracting for ResultsERCOT’S fundamental commitment is to contract for value and successful results. Asuccessful result is denoted as the generation of defined, measurable, and beneficial outcomesthat support ERCOT’s missions, objectives, and goals, and satisfies all defined contractrequirements.1.5.Legal and Regulatory Constraints1.5.1. Conflicts of InterestERCOT seeks to ensure a level playing field in the award of the contract. ERCOT hasimplemented an aggressive policy concerning actual or potential conflicts of interest toensure fair and open competition, and has included language concerning actual andpotential conflicts of interest in Section 8 of the Master Agreement. Respondents mustcarefully review and understand this language when developing proposals.1.5.2. Former Employees of ERCOTThe Respondent must disclose any past employment of its employees and agents, or itsSubcontractors’ employees and agents, by ERCOT, including the individual’s name andthe date such individual’s employment at ERCOT ended.1.5.3. Interpretive ConventionsWhenever the terms “shall,” “must,” “or “is required” are used in this RFP in conjunctionwith a specification or performance requirement, the specification or requirement ismandatory for the potential vendor. ERCOT may, at its sole discretion, reject anyproposal that fails to address or meet any mandatory requirement set forth herein.Whenever the terms “can,” “may,” or “should” are used in this RFP in conjunction with aspecification or performance requirement, the specification or performance requirementis a desirable, but not mandatory, requirement.1.6.ERCOT Point of ContactThe sole point of contact for inquiries concerning this RFP is:Jana Richardson 2018 ERCOTAll rights reserved.4

2705 West Lake DriveTaylor, Texas [email protected] communications relating to this RFP must be directed to the specified ERCOT contactperson. All other communications between a Respondent and ERCOT staff concerning thisRFP are prohibited. Failure to comply with this section may result in ERCOT’s disqualificationof the proposal.1.7.Procurement TimelineProcurement TimelineRFP Release DateOptional Notice of Intent to Propose DueVendor Questions DueResponse to Vendor Questions SentVendor Proposals DueVendor Presentations (if needed)Anticipated Contract AwardAnticipated Contract Start Date1.8.Tuesday, 9-3-19Friday, 9-6-19Tuesday, 9-10-19Monday, 9-16-17Friday, 9-30-19Week of 10-28-19December 2019February 2020Communications Regarding This ProcurementERCOT reserves the right to amend this RFP at any time prior to the proposal submissiondeadline. Any changes, amendments, or clarifications will be made in the form of responses tovendor questions, amendments, or addendum issued by ERCOT and sent to the point ofcontact listed on the Notice of Intent to Propose. Vendors not submitting the Notice of Intent toPropose will not receive changes, amendments, or answers to questions regarding this RFP.1.9.RFP Cancellation/Non-AwardERCOT reserves the right to cancel this RFP or to make no award of a contract pursuant tothis RFP.1.10.Right to Reject ProposalsERCOT may, in its discretion, reject any and all proposals submitted in response to this RFP.1.11.No Reimbursement for Costs of ProposalsERCOT will not reimburse any Respondent for costs of developing a proposal in response tothis RFP. 2018 ERCOTAll rights reserved.5

2.Scope and Requirements2.1.Project Scope OverviewERCOT has selected Service Now ITSM as its provider for Service Management capabilities.Our plan is to procure and deploy Incident and Problem Management components of the ITSMmodule for the project2.2.Business Organizational StructureERCOT’s business is divided into 9 different areas however, our core business systems thatmanage ERCOT’s mission are Commercial Operations, Grid Planning and Compliance.Below is a high level depiction of ERCOT’s organizational model.2.3.Information Technology Organizational StructureThe ERCOT Information Technology department is currently divided into five major functionalareas which include Application Services, Infrastructure Services, IT Architecture, IT Strategyand Governance and IT Operations. 2018 ERCOTAll rights reserved.6

2.4.ERCOT IT Service Management JourneyAs part of the journey to improve processes, ERCOT has adopted ITIL and trained informationtechnology resources to utilize this framework to optimize IT processes. This is an ongoingjourney and the desire is to leverage an IT Service Management suite to further optimize thiseffort.2.5.IT Service Management Vision for ERCOTToday, ERCOT has a number of tools deployed which service the capabilities of IT ServiceManagement; including a number of custom integrations and disparate systems which do notcommunicate with each other.ERCOT’s most immediate vulnerability is optimizing the Service Desk, Incident Managementand Problem Management system which resides on an unsupported application. ERCOTwould like to focus on mitigating this risk quickly.2.6. Goals and Objectives to be Achieved with ServiceNow Incident and Problem ManagementSoftwareImplement a Service Desk solution that will act as a “front door” for all service requestsImplement an ITSM solution that will allow for a single Incident Management workflow forall ERCOT events and incidentsImplement a problem management solution that correlates incidents and eventsCorrelations shall happen with incidents or events, not just problemsEnable a service catalog where current work underway can be instantiated in the ITSMPlatformCreate a common repository for all institutional IT knowledge that is easily accessible andreadily availableTrack and manage the full lifecycle of all IT assets and configurationsProvide seamless integration among ITSM processes and key existing data sourcesImplement a tool that assists the entire organization in IT process maturation as it relatesto the ITIL frameworkImplementation shall include reporting for compliance needsImplementation shall provide a Major Incident ProcessServiceNow shall be the System of Record (SOR) for ERCOT incidents as well as forERCOT software and technology assets in our data centers.Architecture tooling (such as Orbus iServer, Mega, Troux, etc.) shall have access to theSOR, so interfaces to assets managed in ServiceNow should be made available.ERCOT shall own all of the incident data collected in the solution. If the contract isterminated early for any reason, the vendor shall provide an agreed-upon means by whichERCOT can extract data. 2018 ERCOTAll rights reserved.7

2.7.Product ScopeIn order to be considered by the ERCOT evaluation team, the vendor shall at a minimumimplement the following ServiceNow Incident and Problem Management components for200 users: 2.8.Incident ManagementProblem ManagementKnowledge ManagementService CatalogService LevelsDeliverables2.8.1. Project Management (Core Requirement)ooooooo2.8.2.Vendor is to provide a Project Manager to serve as single point ofcontact and coordinate all tasks with the ERCOT Project ManagerVendor Project Manager is to develop project schedule and plansVendor Project Manager is to provide quality assurance and oversight forall vendor servicesVendor Project Manager is to identify and schedule Vendor resources tomeet project deliverables and timelinesVendor Project Manager is to provide a detailed implementation plan,with the expectation to use Agile/Dev Ops model with 2-3 week sprints.Vendor Project Manager is to provide status reports including, but not belimited to, work completed, work underway, upcoming planned work,scheduled changes and delaysProject manager and any Tech team must be U.S. resourcesITSM Implementation Design and Planning (Core Requirement)oooooooooDetailed design documents and diagrams for all components of ServiceNowRecommendation on best approach for process implementationRecommendation on ERCOT personnel required to support the systemRecommended conversion and migration approach (e.g., from variouscurrently implemented solutions to ServiceNowRecommended test plans and proceduresStandard Operating and Desktop ProceduresRecommended best business practices for use of the ITSM solutionProduct documentationGoal is to design for out of the box with limited/no customization2.8.3. ITSM System Implementation Services (Core Requirement)o Setup and configuration of all integrations fully supported in the currentrelease of the product including, but not limited to Active Directory, singlesign-on and multi factor authentication utilizing DUO. 2018 ERCOTAll rights reserved.8

o Provide support staff during configuration acceptance testso The creation and execution of Automated Test Cases as defined by therecommended test plans2.8.4. Consulting/Professional Services (Optional)o Technical consulting and development of system integrationso Technical consulting services on integrations with external systems (e.g.,web services, external workflow, etc.)o Process design and improvement2.8.5. Training (Core Requirement)o The selected Vendor shall provide all technical, operational, andadministrative knowledge transfer required for ERCOT personnel tosuccessfully conduct activities related to the deployed solutiono Technical training materials and classes including both onsite anddistance/online deliveryo End user training materials and classes including both onsite anddistance/online delivery2.8.6. Support (Core Requirement)o Ongoing application maintenance and supporto Warranty support for all system softwareo A detailed Service Level Agreement (SLA) as agreed upon by both ERCOTand the selected vendor. Respondents are encouraged to provide standardSLA options for ERCOT’s review.2.8.7. Product Vendor RequirementsThe Vendor must indicate how the proposed solution will comply with the following functionalspecifications. Provide answers to the following questions as they relate to the CURRENTrelease of the product. If this functionality is planned for a future release, enter the expecteddate for each question under the functional specification is the comments section in the Exceldocument.Addendum A – IT Service Management Requirements Response Template2.9.Vendor Delivery RequirementsBased on the phased scope provided, vendor should provide a recommended implementationschedule and milestone approach which should include training and change managementapproaches. This approach should correlate with your pricing approach in section 3.9.2. 2018 ERCOTAll rights reserved.9

3.General Instructions and Requirements3.1.Notice of Intent to ProposeA prospective vendor may submit a Notice of Intent to Propose to the ERCOT Point of Contactidentified in Section 1.6 no later than 5:00PM Central Time on the date listed in the Section1.7 Procurement Timeline. The Notice of Intent should consist of an email stating that theprospective vendor intends to submit a proposal for this procurement. Only vendors whosubmit a Notice of Intent to Propose will receive the answers to questions from allvendors, and/or any clarifications, amendments, and addenda to the RFP. Vendors whoprovide a Notice of Intent are not obligated to submit proposals after submitting the Notice ofIntent, but must submit a response to be considered for an award.3.2.Vendor Questions and CommentsAll questions and comments regarding this RFP must be submitted electronically to the emailaddress contained in Section 1.6. All questions must reference the appropriate RFP page andsection number. In order to receive a response, vendor questions and comments must bereceived no later than the deadline set forth in Section 1.7. Inquiries received after the duedate may be reviewed by ERCOT but will not receive a response. Answers to vendor questionswill be emailed to the point of contact listed on the Notice of Intent to Propose. A Respondentmust inquire in writing as to any ambiguity, conflict, discrepancy, exclusionary specification,omission, or other error in this RFP prior to submitting a proposal. If a Respondent fails to notifyERCOT of any error