Lighthouse Financial Services Company and Cordelane Systems, the incumbent annuity administration platform provider. Total scoped value $2,850,000, of which $1,680,000 is authorized at the 16 October 2026 status date and $1,170,000 is not. Extension of the existing platform rather than replacement is Decision D-07.
59% of the scoped value is under authorized release notice. The remainder is scoped, priced and unfunded.
1. The Contracting Problem This SOW Solves
A vendor statement of work normally commits both parties to a defined scope for a defined price. This program cannot do that, and the reason is structural rather than commercial.
So the SOW is itself gated. Three work packages, each priced and scoped in full at signature so the vendor can plan and resource, but each authorized separately by a release notice that issues only on a gate outcome. Cordelane knows the whole shape of the engagement and is paid only for what has been released.
2. Work Package Structure
| WP | Scope | Stage | Value | Authorizing gate | Status |
|---|---|---|---|---|---|
| WP-1 | configuration & build | Stage 2 | $1,680,000 | Gate 1 — 11 Jun 2026 | Authorized |
| WP-2 | test support & defect remediation | Stage 3 | $760,000 | Gate 2 — 01 Apr 2027 | Not authorized |
| WP-3 | cutover, hypercare & handover | Stage 4 | $410,000 | Gate 3 — 28 Oct 2027 | Not authorized |
| Total scoped value | $2,850,000 | ||||
The total ties exactly to the annuity platform configuration and licensing line in the Program Budget §4. It is one number in two documents by construction, not by transcription.
3. Work Package Detail
WP-1 — Stage 2 Authorized
Configuration of the annuity administration platform for the three launch crediting strategies, contract-form data model, issue and servicing transaction sets.
WP-2 — Stage 3 Not authorized
Test support, defect remediation and regression across the validation cycle, including support for illustration-to-admin reconciliation.
WP-3 — Stage 4 Not authorized
Production cutover, hypercare through the launch window, and handover to the carrier's annuity operations function.
4. Release Notice Mechanism
A work package becomes contractually live only on issue of a release notice. The mechanism is deliberately thin, because a mechanism the program cannot execute quickly at a gate is a mechanism that will be bypassed.
| Step | Who | When |
|---|---|---|
| Gate decision recorded (GO or GO WITH CONDITIONS) | Gate Review Board | At the gate |
| Release notice issued against the corresponding work package | Chair, on the Board's recorded decision | Within five business days |
| Vendor mobilizes against the released package | Cordelane | Per the mobilization window in the master agreement |
| No release notice issued | — | The package does not commence and no fee accrues |
5. Termination for Convenience & Wind-Down
The carrier may terminate this SOW for convenience at any stage boundary on thirty days' written notice. That right exists because the program itself can be cancelled at any gate, and a vendor contract that could not follow the program's own governance would become the reason not to cancel — which would let a procurement decision override a Board decision.
| On termination for convenience | Entitlement |
|---|---|
| Work completed and accepted | Paid in full |
| Work in progress within a released package | Paid on a percentage-of-completion basis against the accepted deliverable schedule |
| Packages not yet released | No entitlement. This is the point of the structure. |
| Demobilization and knowledge transfer | A defined wind-down window, chargeable at agreed rates, capped |
| Configuration artifacts and documentation produced to date | Delivered to the carrier in usable form as a condition of final payment |
6. Scope Changes Already Applied
The scope in §2 is not the scope originally contemplated. Two changes were applied before WP-1 was released.
| Change | Origin | Effect on this SOW |
|---|---|---|
| Reduction from five crediting strategies to three | Gate Condition GC-01, Decision D-03 | Configuration scope in WP-1 reduced accordingly. The participation-rate strategy the platform could not support without custom development (risk R-04) is out of scope, not deferred. |
| New York excluded from launch | Decision D-02 under GC-02 | State configuration set reduced; no New York contract-form data model in scope. |
7. Dependencies and Constraints
| ID | Constraint | Consequence |
|---|---|---|
| DEP-03 | Cordelane operates quarterly configuration windows across its client base | Work cannot be scheduled continuously. A missed window costs a quarter, not a sprint — which is why the compression of Stage 2 from 46 weeks to 40 matters more here than elsewhere. |
| I-04 | The configuration environment is shared with an in-flight servicing release | Test-window contention; being scheduled around in Stage 3 planning. |
| A-04 | The existing platform is extended, not replaced | If this assumption failed, the SOW would not be varied — it would be replaced, and the program would return to a gate. |
8. Acceptance and Payment
| Principle | Application |
|---|---|
| Acceptance is against the deliverable schedule, not against elapsed effort | Configuration is accepted on demonstrated transaction behavior, not on hours consumed |
| Payment follows acceptance within a released package | No payment accrues against an unreleased package under any circumstance |
| Defect remediation inside a package is not a variation | Remediation of defects in delivered configuration is inside the fixed price |
| Scope variation requires a program decision, not a contract amendment alone | Material variation is a gate matter — this suite carries no change-control log because change is a gate re-submission |
9. What This SOW Does Not Cover
- The illustration and quoting engine. That is a separate vendor (Brightpath Analytics) and a separate budget line. Issue I-02 — the inability to produce compliant hypothetical performance for two strategies — belongs to that engagement, not this one.
- Hedging infrastructure and ISDA onboarding. Executed in-house by Investments (Decision D-08) with its own budget line.
- Post-launch platform run costs. The program's authorized cost ends at launch; ongoing platform licensing transfers to the operating line and is not a program cost.
- Any commitment beyond WP-3. The SOW ends at handover. Gate 5 reviews outcomes and has no vendor scope attached to it.
10. Document Control
| Version | Date | Change |
|---|---|---|
| 1.0 | 11 Jun 2026 | Executed at the Gate 1 second convening. WP-1 released; WP-2 and WP-3 scoped, priced and unreleased. |
| 1.1 | 16 Oct 2026 | Scope changes under GC-01 and GC-02 recorded at §6. No change to work package values or the release mechanism. |
Administered by C. Tyrrell, NPD Program Manager and Chair of the Gate Review Board, with V. Sandoval, Platform Delivery Lead. Related: Program Budget §4 · Gate Conditions Register (GC-01, GC-02) · RAIDD Log (R-04, I-04, DEP-03, D-07) · Prior Concept Cancellation Record.