TN Next Gen ERP Requirements Review - UPDATED

RFI # 31701- 03815 1 STATE OF TENNESSEE DEPARTMENT OF FINANCE & ADMINSTRATION - STRATEGIC TECHNOLOGY SOLUTIONS REQUEST FOR INFORMATION FOR TN NEXT GEN ERP REQUIREMENTS REVIEW RFI # 31701 -03815 12/15/2025 1. STATEMENT OF PURPOSE: The State of Tennessee, Department of Finance & Administration – Strategic Technology Solutions (STS) issues this Request for Information (“RFI”) to obtain vendor feedback on draft requirements and deliverables for the State’s future Enterprise Resource Planning (“ERP”) solution. We appreciate your input and participation in this process. 2. BACKGROUND: Strategic Technology Solutions (“STS”) provides centrally managed information technology (“IT”) infrastructure services for the statewide Enterprise Resource Planning (“ERP”) system for the State of Tennessee. STS is responsible for the system’s ongoing upgrades, maintenance, and operations. The current ERP system has been in production since 2008 and supports key business functions including human capital management, financial and supply chain management, enterprise learning management, customer relationship management, and interactive hubs/portals. This system is expected to reach its end of life in 2035. STS has developed preliminary requirements and deliverables for the future ERP solution. The purpose of this Request for Information (“RFI”) is to introduce these draft requirements to the ERP vendor community and solicit feedback, comments, and recommendations. Input received through this RFI may help refine the State’s requirements and ensure that the forthcoming Request for Proposals (“RFP”), planned for release in 2026, aligns with industry best practices and current technology capabilities. This collab orative process is RFI # 31701- 03815 2 intended to support a more effective and efficient RFP phase for both the State and potential solution providers. 3. COMMUNICATIONS : 3.1. Please submit your response to this RFI to: Chris Romaine, MBA | Senior Manager STS Contracts and Solicitations 901 Rep. John Lewis Way North, Nashville, TN 37243 Phone: 615 -253 -4629 Christopher.Romaine@tn.gov 3.2. Please feel free to contact the Finance & Administration - STS with any questions regarding this RFI. The main point of contact will be: Chris Romaine, MBA | Senior Manager STS Contracts and Solicitations 901 Rep. John Lewis Way North, Nashville, TN 37243 Phone: 615 -253 -4629 Christopher.Romaine@tn.gov 3.3. Please reference RFI # 31701- 03815 with all communications to this RFI. 4. RFI SCHEDULE OF EVENTS: EVENT TIME (Central Time Zone) DATE (all dates are State business days) 1. RFI Issued 12/15 /2025 2. Initial Vendor Background Questionnaire Due 2:00 PM 12/22/2025 3. NDA due 2:00 PM 1/7/2026 4. State to release Attachment 3 to vendors that pass Initial Vendor Background Questionnaire check and complete the NDA. 1/8/2026 5. Vendor Written Questions & Comments Deadline 2:00 PM 1/20/2026 6. State Response to Written Questions & Comments 1/29/2026 RFI # 31701- 03815 3 7. RFI Response Deadline 2:00 PM 2/17/2026 5. GENERAL INFORMATION: 5.1. Please note that responding to this RFI is not a prerequisite for responding to any future solicitations related to this project and a response to this RFI will not create any contract rights. Responses to this RFI will become property of the State. 5.2. The information gathered during this RFI is part of an ongoing procurement. In order to prevent an unfair advantage among potential respondents, the RFI responses will not be available until after the completion of evaluation of any responses, proposals, or bids resulting from a Request for Qualifications, Request for Proposals, Invitation to Bid or other procurement method. In the event that the state chooses not to go further in the procurement process and responses are never evaluated, the responses to the procurement including the responses to the RFI, will be considered confidential by the State. This RFI, its attachments, and the responses to this RFI may retain confidentiality under Tenn. Code Ann. § 10 -7-504. 5.3. The State will not pay for any costs associated with responding to this RFI. 5.4. The State may request presentations/interviews/ (follow up conversations) from select RFI respondents. 5.5. The State is not currently providing cost information or requesting cost information from RFI respondents at this time. 5.6. Responses should be prepared, with emphasis on completeness and clarity, and should NOT exceed fifteen (15) pages in length (excluding the requirements spreadsheet ). Responses, as well as any reference material presented, must be written in English, and must be written on standard 8 ½” x 11” pages and all text must be at least a 12 -point font. All pages must be numbered. 5.7. Access to ERP requirements document is restricted. Respondents must submit the Initial Vendor Background Questionnaire (Attachment 1). Upon the State’s review and approval of the Questionnaire, Respondents must also complete a Non- Disclosure Agreement (NDA) (Attachment 2). Specific ERP requirements documents will be shared by the RFI coordinator upon receipt of the signed NDA. RFI # 31701- 03815 4 6. INFORMATIONAL FORM S: The State is requesting the following informat ion from all interested parties. Please fill out the following forms : RFI # 31701 -03815 TECHNICAL INFORMATIONAL FORM 1. RESPONDENT LEGAL ENTITY NAME: 2. RESPONDENT CONTACT PERSON: Name, Title: Address: Phone Number: Email: 3. Provide a brief description of experience providing similar scope of services/products 4. Review the attached “modernization requirements” Attachment 3 excel document and provide feedback . There are instructions on the first tab titles “Overview & Instructions.”

• Which requirements are concerning?
• Which requirements need to be reconsidered?

Please consider these types of things when adding comments in the attachment 3 spreadsheet. 5. Provide your organization’s vision for the future of ERP in the era of generative AI. Explain how generative AI is transforming ERP platforms today, and describe the major advancements, capabilities, and architectural changes you expect to emerge over the next five (5) years. Discuss how these trends will influence system usability, automation, analytics, agentic workflows, extensibility, and customer value. 6. The State requires that the proposed ERP solution includes a native, extensible, secure, and auditable AI architecture capable of supporting at least ten (10) years of successful operations and continued innovation after go -live. Respondents must provide clear, technically detailed answers to questions 7-34 below. 7. AI Architecture & Design (Questions 7-10)

• Describe the AI architecture of your ERP platform.

o Is the platform built on AI -native architecture, or does it rely on bolt -on AI capabilities? o Identify architectural components for AI inference, orchestration, data pipelines, semantic layers, and model lifecycle management. 8. Explain how AI interacts with core ERP data structures. o Describe ingestion, transformation, vectorization, and isolation mechanisms. o Explain security and governance applied to data used for AI. 9. Does your platform support containerization to segment or isolate AI workloads and restrict AI RFI # 31701- 03815 5 access to specific modules or tasks? o Describe supported containerization strategies. 10. Describe how AI capabilities are embedded in the platform (native modules, microservices, APIs, model hosting, etc.) and how new AI components can be introduced without re- platforming. 11. Models Used (LLMs, SLMs, Proprietary Models) (Questions 11-13)

• Identify the Large Language Models (LLMs), Small Language Models (SLMs), and other AI/ML models

used in your platform. o Provide model names and versions, or indicate if proprietary. o Describe which business functions each model supports (e.g., HCM, Finance, Supply Chain). 12. Explain your model selection and routing strategy. o Do you support dynamic model routing? o Can the customer bring their own model (BYOM/BYOLLM)? 13. Describe your approach to tuning and customization. o Do you support fine- tuning, retrieval -augmented generation (RAG), prompt orchestration, or supervised feedback loops? o How is State -specific data isolated from global model training? 14. Reasoning, Explainability & Chain -of-Thought (Questions 1 4-15)

• How is chain of thought (CoT) tracked within your platform?

o What level of visibility does the State have into AI reasoning steps? o Is CoT auditable? o Can the State disable, restrict, or mask chain- of-thought content for compliance purposes? 15. Describe any explainability features provided. o How does the platform generate rationales for recommendations or actions? o Are confidence scores, risk indicators, or model certainty values exposed? 16. Agentic Capabilities (Questions 1 6-18)

• Do you provide agentic AI capabilities?

o Identify the underlying agent framework. o Describe what tasks agents can autonomously execute within the ERP platform. 17. Describe how agent behavior is governed, monitored, and audited. o Human -in-the-loop controls o Guardrails and access restrictions o Approvals or limits on autonomous actions o Audit trail of digital agents vs. human end users – same or variances? RFI # 31701- 03815 6 18. Explain how the platform validates the correctness and safety of agentic actions before they are executed. 19. AI Governance, Guardrails & Ethical Alignment (Questions 1 9-22)

• Describe all AI governance capabilities included in your platform.

o Policy enforcement o Role - and risk -based restrictions o Prevention of hallucinations or unsafe actions 20. Would the State have the ability to customize AI guardrails to reflect Tennessee’s ethics, values, policies, and legal requirements? o Identify which guardrails are configurable by the customer and how they are implemented. o Describe how updates to guardrails are logged, audited, and controlled. 21. Explain your safeguards for preventing inappropriate, biased, or non- compliant AI outputs. o Include fairness controls, bias detection tools, and discrimination prevention techniques. 22. Describe how your platform prevents vendor models from training on the State’s data unless explicitly authorized. 23. AI Testing, Validation & Accuracy Assurance (Questions 2 3-29)

• Describe your methodology for testing and validating AI accuracy and reliability across all platform

modules. o Validation techniques o Benchmarking approaches o Minimum accuracy thresholds 24. What performance metrics do you use to measure the quality of AI outputs? 25. How does your platform test AI across diverse scenarios, including edge cases, atypical data, or incomplete data conditions? 26. Describe your approach to ongoing monitoring of model accuracy and detection of model drift. o Frequency of revalidation o Alerts to customers o Retraining or recalibration processes 27. Explain how AI accuracy is validated after customer -specific configuration during implementation. o Are testing tools available to customers? o Can customers independently validate AI performance? 28. How does the platform handle AI errors, low -confidence outputs, or exceptions? o Is confidence scoring surfaced to users? o Can certain AI actions be suppressed or blocked based on confidence levels? 29. Provide examples of audit logs or reporting available to State administrators to evaluate AI outputs, reasoning, guardrail enforcement, and performance over time. RFI # 31701- 03815 7 30. Security, Privacy & Compliance (Questions 30 -31)

• Describe security controls applied to AI services.

o Encryption in transit and at rest o Isolation of AI workloads o Zero- trust principles applied to AI modules 31. Explain how your platform complies with government security and privacy requirements, including auditability and public records obligations. 32. Extensibility & Long -Term Roadmap (Questions 32-34)

• Describe how your AI architecture is designed to evolve over a 10 -year lifespan.

o Modularity o Model upgrades o Backward compatibility 33. Provide your AI roadmap for the next 3 –5 years, including major planned enhancements, new model integrations, improvements in agentic capabilities, and architectural investments. 34. Explain how your architecture avoids vendor lock -in and maintains flexibility to integrate emerging AI standards, models, or platforms. 35. Do you utilize third party System Integrators/Implementors (SI’s)? If yes, i s your ERP solution limited to certain System Integrators (SI’s)? 36. Please provide feedback on our procurement workflow. We are currently planning to do an RFP for the ERP solution first and then a subsequent solicitation for SI.

• Should we consider doing one solicitation package for both ERP solution and SI?
• Another alternative? How do you recommend TN structure this.

COST INFORMATIONAL FORM 1. Please provide feedback about your preferred cost structure s to help us build our future RFP. DO NOT provide actual cost figures at this time. That is reserved for our future RFP. What does the cost structure for your ERP solution look like? Transaction/use pricing ? Per Seat pricing ? 2. What other cost line items might we consider including in our future RFP so that we can best compare vendor’s cost proposals. 3. Please describe channel distribution / how do you sell your product to customers // direct or through resellers RFI # 31701- 03815 8 ADDITIONAL CONSIDERATIONS 1. Please provide input on alternative approaches or additional things to consider that might benefit the State: Attachment 1 – Initial Vendor Background Questionnaire RFI # 31701- 03815 9 RFI # 31701 -03815 Initial Vendor Background Questionnaire Company Overview:

• What is the full legal name of your company?
• When was your company founded?
• What is your company's primary business activity?
• Where is your company headquarters located?
• Can you provide an overview of your company’s ownership structure?
• What is your tax ID number?
• What state is your organization incorporated in?
• How many employees does your company currently have?
• How many employees do you have residing in the US vs. international locations?

Financial Information:

• What is your company's annual revenue for the past three years?
• If requested, can you provide your company's audited financial statements for the last

three years?

• What is your company’s credit rating and source of rating?

Experience and Expertise:

• How many years has your company been providing ERP solutions?
• Do you have any experience working with federal, state, or local government?
• What are the key industries you serve with your ERP solutions?
• If requested, can you provide case studies or references from previous ERP implementation projects?

Service Offerings:

• What specific ERP solutions services do you offer?
• Can you describe your methodology and approach to ERP solutions?
• What differentiates your ERP solutions from those of your competitors?

Compliance and Security

• What industry standards and regulations do your ERP solutions comply with?
• How do you ensure the security and confidentiality of client data?

Contact Information: RFI # 31701- 03815 10 • Who should be the primary point of contact for this RFI?

• What are their contact details (email, phone number, mailing address)?
• Is there a secondary contact person? If so, please provide their details.

Attachment 2 - NDA RFI # 31701- 03815 11 The State of Tennessee Department of Finance and Administration, Strategic Technology Solutions RFI # 31701- 03815 The State of Tennessee and Company NONDISCLOSURE AGREEMENT THIS AGREEMENT (hereinafter referred to as the "Agreement") made effective as of the date of last signature below, by and between the State of Tennessee, Department of Finance and Administration, Strategic Technology Solutions ("STS”) and Company together with its affiliates, assigns, officers, directors, and employees having its principal place of business at address (“Company”). The party disclosing Confidential Information, as defined below, is referred to as “Discloser”; the party receiving Confidential Information, is referred to as “Recipient,” individually and collectively referred to as “Party” and “Parties.” WHEREAS, The State of Tennessee, Department of Finance and Administration, Strategic Technology Solutions ("STS”) has issued a Request for Information for the purpose of NEXT GEN ERP REQUIREMENTS REVIEW RFI # 31701-03815 (“RFI”), and STS may provide additional confidential information in conjunction with this RFI (“Purpose”). NOW THEREFORE, the Parties agree as follows: 1. “Confidential Information” shall include, but not be limited to, information, in any form, and all copies, summaries and extracts, which is identified in writing as confidential at the time of disclosure, and any information disclosed in non- tangible form that is identified as confidential at the time of disclosure and summarized in a writing labeled as “confidential” delivered to Recipient within 15 days after disclosure. Any information that must be protected from disclosure pursuant to federal law or the laws of the State of Tennessee, including information that is confidential pursuant to Tenn. Code Ann. § 10-7- 504, shall be deemed “Confidential Information” and handled as such, without the requirement of marking or other form of identification. Information regarding the State of Tennessee’s IT resources or the security of any government building shall also be deemed “Confidential Information” and handled as such, without the requirement of marking or other form of identification. 2. For purposes of this Agreement, Confidential Information does not include information that (A) is or becomes generally publicly available at the time of disclosure or subsequently through no fault of Recipient, (B) was known to Recipient, free of any confidentiality obligations, before its disclosure by Discloser, (C) becomes known to Recipient, free of any confidentiality obligations, from a source other than Discloser, or (D) is independently developed by Recipient without use of Confidential Information. Notwithstanding the foregoing sentence, Information that is confidential under Federal law or the laws of the State of Tennessee, including information that is confidential pursuant to Tenn. Code Ann. § 10-7- 504, or information regarding the State of Tennessee’s IT resources or the security of any government building shall be considered Confidential Information and subject to the obligations of this Confidentiality Statement. RFI # 31701- 03815 12 3. Strict standards of confidentiality shall be maintained in accordance with applicable state and federal law. The Recipient shall safeguard and hold in strict confidence such Confidential Information, and shall not disclose to third parties without the written consent of Discloser. In the event Discloser gives its approval to disclose Confidential Information to a third party, the Recipient shall ensure that all such disclosures are marked with appropriate legends and the receiving third party enters into a non- disclosure agreement with terms at least as protective as those contained in this Confidentiality Statement. 4. STS shall not be liable for any disclosure of Confidential Information required under applicable law, including but not limited to the Tennessee Public Records Act, Tenn. Code Ann. § 10- 7- 503 et seq. Neither Company nor STS shall be liable for disclosure of Confidential Information if made in response to a valid order of a court or authorized agency of government; provided the Company shall notify STS, to the fullest extent allowable under applicable law or regulation, so that a protective order or other relief, if appropriate, may be sought by STS. 5. Confidential Information may be shared for the purpose of the RFI, and no other use of the Confidential Information is permitted without the written consent of Discloser. The Recipient shall further restrict disclosure of such Confidential Information to only those employees who have a need to know. 6. This Agreement is made effective as of the date of signature below, and may thereafter be terminated by either Recipient or Discloser upon the giving of thirty (30) days written notice. Upon termination, Recipient shall promptly return to Discloser or destroy all materials and copies to the extent they contain Confidential Information, and certifying in writing to Discloser in the event of destruction where return is not possible. All obligations regarding protection of Confidential Information under this Confidentiality Statement shall survive termination. 7. This Agreement shall not be construed as a teaming, joint venture, or other such arrangement; rather, the Recipient hereto expressly agrees that it is for the purpose of protecting Confidential Information only. 8. If any terms and conditions of this Agreement are held to be invalid or unenforceable as a matter of law, the other terms and conditions shall not be affected and shall remain in full force and effect. The terms and conditions of this Agreement are severable. 9. This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee without regard to its conflict or choice of law rules. The Tennessee Claims Commission or the state or federal courts in Tennessee shall be the venue for all claims, disputes, or disagreements arising hereunder. The Recipient acknowledges and agrees that any rights, claims, or remedies against the State of Tennessee or its employees arising hereunder shall be subject to and limited to those rights and remedies available under Tenn. Code Ann. §§ 9- 8-101 - 408. 10. Nothing herein shall be construed to convey to Recipient any right, title, or interest or copyright in the Confidential Information, or any license to use, sell, exploit, copy, or further develop the Confidential Information. 11. All Confidential Information provided pursuant hereunder is provided “AS IS” and all warranties, express, implied, or otherwise are disclaimed. RFI # 31701- 03815 13 IN WITNESS WHEREOF , this Agreement has been duly executed by the Parties hereto as of the date of last signature below. The State of Tennessee Department of Finance & Administration Strategic Technology Solutions Company By: By: Name: Name: Title: Title: Date: Date: Attachment 3 – ERP Requirements / Specification s (Confidential – Detach and Send Separately from RFI) RFI # 31701- 03815 14