CTR066383_Arizona_Integrated_Tax_System_Modernization_STARS_-_Amendment_4_-_Dated_10-7-2025.pdf

Contract Amendment

Arizona Department of Administration

State Procurement Office

1802 West Jackson Street - Number 100

Phoenix, AZ 85007

Contract Number: CTR066383

Amendment 4

Arizona Integrated Tax System Modernization – STARS Program

This contract amendment to the Arizona Integrated Tax System Modernization – STARS Program contract is issued to further define the States’ requirements to gain greater flexibility when addressing improvement changes to the order of revenue/tax type delivery/phasing and implementation as the program matures past contract negotiations and the initial planning stages. Additionally, this amendment will illuminate and establish changes to the current vendor payment structure detailing the milestones and trigger points acceptable to both parties, specific to the completion and onboarding of the Liquor Luxury Tax (LLT) tax type so that corresponding progress payments, for work completed, may be timely released to GCOM.

Pursuant to the above referenced Contract, and the State’s Uniform Terms and Conditions, Paragraph 5.1 Contract Amendments, the contract shall be amended as follows:

1. Section 4.0, Scope of Services to be Provided, sub-section 4.2.12 Implementation Timeline, Phasing and Methodology, sub-subsection (e) is hereby deleted in its entirety and replaced with the following:

1.1 The Department reserves the right to make changes to the proposed phasing and implementation schedule during contract negotiations and as part of the project phase planning at any time after the project work has begun. Additionally, the tax type implementation phasing as well as the sequence of the resulting delivery of program scope may be adjusted to facilitate recognized program improvements, changes for perceived program efficiencies and for further

Department convenience at any time during the ongoing progression of the

STARS program and shall require mutual Offeror and ADOR written approval prior to any phasing and implementation changes.

1.2 In the event either party proposes tax type phasing and/or implementation changes to the project which may potentially create an adverse financial impact on one or both parties and, prior to the adoption of any such change, the impacted party(s) shall present to the other party a detailed explanation of the financial impact along with any proposed offsetting compensation. Prior to acceptance and adoption of any such phasing and/or implementation change, the parties shall enter into good faith negotiations to ascertain the merits and legitimacy of the claim(s) and proposed compensation. Should the good faith negotiations conclude in additional agreements outside the current contract scope, the parties will follow the change procedures as found under the contract’s Uniform Terms and Conditions, Section 5 Contract Changes.

2. Amendment to Payment Terms. The Parties agree to modify the payment conditions set forth in “CTR066383 Pricing Worksheet UPDATED 3-13-2024” (Pricing Worksheet) attached under contract amendment # 2. The parties further agree to incorporate changes to the Pricing Worksheet defining and enumerating the LLT payment milestones and their corresponding payment allowance. This payment term modification affects LLT only. All references, conditions milestones and payment schedules affecting LLT in the Pricing Worksheet are hereby deleted in their entirety.

All remaining tax type payment details, timing and dollar amounts shall remain unaffected.

2.1 LLT payments and payment amounts shall be tied to the successful achievement of two (2) distinct milestones for each of the first three (3) LLT tax type Releases.

The payment milestones which establish a payment schedule based on performance and acceptance are: 1) As payment milestones are achieved, the Project Manager for GCOM shall execute a signed Milestone Achievement Document (MAD) within three (3) business days of the date of achievement. The signed MAD will be presented to ADOR for review and, barring reservations, counter-signed and returned to GCOM. The fully endorsed MAD shall be submitted by GCOM along with each LLT invoice for payment. The milestone’s criteria are:

2.1.1 Milestone 1: The LLT tax type “Go/No-Go” decision to implement for production that is described in Section 4.2.10 System Implementation, subsection (c) Go/No-Go Decision, has been successfully completed and certified in writing by ADOR.

2.1.2 Milestone 2: Production Turnover, in compliance with Section 4.2.10 System Implementation, subsection (d). ADOR, with the assistance of GCOM, shall complete the production turnover procedure processes within ten (10) business days after notice the system is ready for production is received.

Additionally, the LLT tax type has been successfully deployed into the production environment, without critical system errors or unplanned downtime during ADOR business hours for ten (10) consecutive calendar days.

2.2 Upon the LLT milestones’ attainment for all three (3) releases, ADOR agrees to pay GCOM the sum total of Three Million Three Hundred Ninety-Nine Thousand- Eight Hundred Eighty-Two Dollars ($3,399,882.00), prorated as follows for each release:

2.2.1 Release 1.1 - Thirty-Seven and One-Half percent (37.5%) of the Total Amount or One Million Two Hundred Seventy-Four Thousand Nine Hundred Fifty-Five and Seventy-Five Hundredths Dollars ($1,274,955.75) shall be paid to GCOM upon successful delivery and ADOR acceptance of Milestone 1 and Milestone 2, above, in accordance with the contract terms and conditions.

2.2.2 Release 1.2 - Thirty-Seven and One-Half percent (37.5%) of the Total Amount or One Million Two Hundred Seventy-Four Thousand Nine Hundred Fifty-Five and Seventy-Five Hundredths Dollars ($1,274,955.75) shall be paid to GCOM upon successful delivery and ADOR acceptance of Milestone 1 and Milestone 2, above, in accordance with the contract terms and conditions.

2.2.3 Release 2.1 – Twenty-Five percent (25.0%) or Eight Hundred Forty-Nine Thousand Nine Hundred Seventy and Fifty Hundredths Dollars ($849,970.50) shall be paid to GCOM upon successful delivery and ADOR acceptance of Milestone 1 and Milestone 2, above, in accordance with the contract terms and conditions.

3. All terms, conditions, obligations and payment milestones incorporated herein are contingent upon the combined approval and authorization of the Information Technology Authorization Committee (ITAC) (in session 9/28/25), the Joint Legislative Budget Committee (JLBC), and the Arizona Department of Administration (ADOA).

This amendment when signed in the Arizona Procurement Portal replaces and supersedes any and all oral agreements between the parties, as well as any prior writings, and modifications and amendments to the agreement, including any exhibit or appendix.

ALL OTHER REQUIREMENTS, SPECIFICATIONS, TERMS AND CONDITIONS REMAIN UNCHANGED

ACKNOWLEDGEMENT AND AUTHORIZATION

This amendment shall be fully executed upon the electronic approval in the State e-Procurement system by an authorized representative of the Contractor and applied to the contract in the State e-Procurement system by the Procurement

Officer or delegate.

Available online at app.az.gov https://app.az.gov/