Draft PWS.docx

04/11/2024

RFQ 8385

TAX COMPUTATION SOFTWARE AND REPORT WRITING SOLUTION FOR PASS-THROUGH ENTITIES

PERFORMANCE WORK STATEMENT (PWS)

1. BACKGROUND

The Internal Revenue Service (IRS) established the new Pass-Through Entities (PTE) Practice Area (PA) in Large Business and International (LB&I) to oversee the Global High Wealth (GHW) and Pass-Through Exam Strategy. PTE PA contains S Corporation and Partnership Specialty teams to provide services to all of LB&I. The Partnership Specialty team aids examination teams with partnership taxation, the Tax Equity and Fairness Act of 1982 (TEFRA), and Electing Large Partnership (ELP) procedures. The S-Corporation Specialty team addresses issues on S-corporation returns (Form 1120-S) and their owners as well as Cooperative returns (Form 1120-C). The GHW program is a part of PTE PA as well. PTE PA also includes nationwide responsibility for the Promoter Specialty teams. This PA was established to increase examination coverage and compliance of high-income individuals, partnerships, large corporations, and promoters. Pass-through entities such as partnerships and S-corporations are generally not subject to income tax as the income is "passed through" onto the income tax returns of the individual, corporate, or trust owners and taxed at their income tax rates. Pass-through entities are frequently used by higher-income groups and can be complex tax arrangements.

The IRS is seeking a cloud and Server-based Solution (SBS) that will assist in automating tax calculations and generating IRS examination reports for income tax examinations of pass-through entities. The SBS should integrate with both legacy case management systems and Enterprise Case Management (ECM) and should have the capability to transition from legacy case management systems to ECM.

The IRS does not have a predefined idea of how the solution should work as there are numerous specialized tax computation software products, each designed for specific audit types (individual returns, business returns, estate, and gift tax returns, etc.). The IRS is open to a single solution/provider but recognizes this may not be possible due to the number and types of calculations and existing case management systems. IRS is looking for a solution/provider that addresses three overarching needs: 1) reduce the need to do manual calculations; 2) generate audit reports with tax calculation and supporting worksheets; and 3) maximize the ease of interface with IRS systems.

One of LB&I’s initiatives is to better identify, select, and deliver work constituting the highest compliance risk. Utilization of tax software makes the IRS more responsive to taxpayers’ needs while simultaneously improves customer service and compliance. As the number of pass-through tax returns examined grows in number, our examination performance is enhanced through:

· working cases more efficiently and effectively,

· increasing engagement of our taxpayers,

· improved leverage of technology and data to resolve casework quickly.

· improving taxpayer communications and collaboration

The current tax software used for pass-through entities will not be supported in the future and must be replaced.

2. OBJECTIVES

The objective is to obtain a Federal Risk and Authorization Management Program (FedRAMP) compliant cloud-based tax software solution that automates tax calculations and generates IRS examination reports for income tax examinations of pass-through entities (including partnerships, S corporations and trusts). The solution must have the ability to securely integrate the tax calculation software with the Pega Systems ECM System.

3. SCOPE

The Contractor shall provide a cloud and Server-based Solution (SBS) that will transition and integrate (plug and play) from the legacy case management systems to the ECM. The Contractor solution shall include server-based licenses; infrastructure/server environment set up, and a common service layer that can connect to the tax software Application Programming Interfaces (API’s)/Middleware as well as other calculators in the suite of tax calculators (ex, API, bridge/plug-in/connector).

4. REQUIREMENTS

4.1 Development

Issue Management System (IMS) Tax Engine Middleware and technical support. This includes all Contractor services except for the middleware user support assistance stated in the preceding items (i.e., consulting, on site visits, instruction, skill development work and materials).

The required products and services shall include continuation of IRS proprietary software or middleware custom development and maintenance that integrates the latest PTE software versions distributed to the IRS each fiscal year with both:

a) The IMS. IMS is a large case main audit reporting program used throughout the LB&I division. This task is referred to as the IMS M software. This also includes the PTE customized IMS Adaptor that imports Extensible Markup Language (XML) tax return data into the tax software.

b) The IRS Tax Engine. This is referred to as the Tax Engine Middleware Plug-in. It is necessary to integrate E-file Support with the latest version of PTE software that is distributed to the IRS during each fiscal year.

Continue integration of the PTE tax software product to add or enable:

· IRS Agent reports and log files, thereby it becomes more useful to the IRS.

· Direct importation of files in XML format including those maintained within IRS tax returns. Some specific examples are electronic E-file returns and corporate returns. The LB&I Imaging Network (LIN) is the system in which LB&I maintains these e-file returns. PTE tax software will be customized to import return information directly from the IRS LIN system. Direct importation of tax returns prevents manual return entry errors as PTE returns are quite large and a simple number transposition can cause serious problems with tax computations and reporting.

5. ORIENTATION

The Contractor shall conduct an orientation briefing at the Government's facility. The method will be determined by mutual agreement of the parties and may include either a video conference or a conference call.

The Briefing shall introduce key task participants, explain their roles, discuss background investigation requirements, review communication ground rules, and assure a common understanding of task requirements.

The Contractor shall deliver meeting minutes that includes the slides and/or handouts presented; names, roles, telephone number, physical and e-mail addresses of meeting participants; and a list of key Contractor and IRS Program Office personnel.

6. TASKS

Task 1 Program Management Support

The Contractor shall provide management, program, and technical support services and ensure that Operations and Maintenance (O&M) and Demand Management releases for the various PTE Software projects approved through governance during the Period of Performance (PoP) have expert support available for requirements management, project governance and documentation, creation and monitoring of resource allocations for each release, required testing support, and support to gather and implement lessons learned from each release.

1.1 Provide all required One Solution Delivery Lifecycle (OneSDLC) documentation for an IT Project from Allocation State to Execution State including:

a. Allocation State – Complete tasks in accordance with IRS specifications

b. Readiness State – Complete the project artifacts in accordance with IRS specifications including the following:

1. Other Artifacts Package

2. Privacy Package

3. Security Package

c. Execution Prior to Production State - Complete the project artifacts in accordance with IRS specifications including the following:

1. 508 Accessibility and Mitigation Package

2. Computer Operator’s Handbook Package

3. Privacy Package

4. Security Package

d. Execution/Product Review State - Complete the project artifacts in accordance with IRS specifications including the following:

1. 508 Accessibility and Mitigation Package

2. Computer Operator’s Handbook Package

3. Engineering Services Package

4. Other Artifacts

5. Privacy Package

6. Security Package

1.2 Review the status of PTE Software and update existing documents to align with current and future LB&I strategies. The Contractor shall provide management, program, and technical support for design, development, deployment, operations and maintenance of IRS IT Systems for the project, all aspects of systems security risk analyses, development of recommendations and implementations, plans for new procedures and changes to existing systems, project management skills and tools for managing, tracking, reporting, transitioning large-scale systems, and for developing and maintaining configuration management controls.

1.2.1 Support the development of an executive summary briefing for stakeholder engagement.

1.2.2 Support Stakeholder communications

1.2.3 Develop release management plan and update strategic road map through prioritization and sequencing of initiatives (near-term, mid-term and long-term).

1.2.4 Collaborate with LB&I management to develop a Work Breakdown Structure (WBS), Risk and Issue Management Plan, and project schedule.

· The WBS is needed to assess resource needs and constraints against project requirements.

· The Risk and Issue Management Plan documents the process for identifying, logging, monitoring, and resolving risks and issues.

· The project schedule shall serve as the framework for the activities and support that the Contractor team shall provide.

1.2.5 Maintain a means of tracking the progress of tasks and share with stakeholders.

1.2.6 Develop process flows to visualize business requirements to inform IT development team on design decisions.

1.2.7 Develop and maintain project management governance documentation.

1.2.8 Deliver the outcome of the PTE Software work in a PTE Software Project Management Compendium.

1.2.9 Deliver release and transition documentation in a PTE Software Release and Transition Management Plan.

1.2.10 Support regularly scheduled project meetings and ad-hoc discussions by preparing pre- and post- discussion documents and capturing action items for follow up.

1.2.11 Knowledge transfer documentation and sessions

1.2.12 Support and document configuration management

1.2.13 Support creation of presentation and training materials

1.2.14 Support updates to User Guides and handbooks

1.2.15 Support development and implementation of a change control process to manage change request and requirements.

1.2.16 Update Change Control and Change Request Management Process document.

1.2.17 Provide a documented design solution for the enhancements to the PTE Software application to include other areas of LB&I.

1.2.18 User Acceptance Testing (UAT)

· Initiating the UAT project

a. Identify the key stakeholders.

b. Select a team leader.

c. Communicate the business intent, objectives, and acceptance criteria of the system.

d. Agree on UAT team resources.

e. Agree on documentation to support UAT.

f. Agree on decision making structures.

g. Agree on UAT team.

h. Initiate UAT training.

i. Form an initial project plan for UAT.

· Planning the UAT

a. Identify the method of system acquisition to determine the best approach to UAT.

b. Determine whether the business intent and the user expectations have been captured and are measurable.

c. Verify that business requirements have been captured.

d. Verify that all requirement types have been included.

e. Write the acceptance criteria and check that it is appropriate.

f. Ensure that the scope is clear and relevant.

g. Capture and verify the business processes.

h. Evaluate the current documentation and its sustainability to serve as a test basis.

· UAT Design

a. Establish the entry criteria for UAT.

b. Review test scripts where available.

c. Define the User Acceptance Testing strategy.

d. Review existing test conditions where available and write new ones.

e. Review existing test cases where available and write new ones based on test conditions.

f. Write test scripts based on test cases.

g. Ensure that the tests cover all the requirements.

· UAT Execution

a. Check availability of the test environment.

b. Define high level test schedule against UAT strategy to achieve priorities.

c. Define detailed test schedule to achieve best use of resources.

d. Ensure the test log is kept up to date.

e. Ensure incidents are being reported accurately and in good time.

f. Check regularly on defect resolution with the development team and ensure there are no bottlenecks.

g. Generate regular test summary reports.

· Release Decisions

a. Identify status against acceptance criteria.

b. Identify effort and time required to meet acceptance criteria in detail.

c. Examine alternatives based on outstanding risks.

d. Emergency release criteria to enable controlled release.

e. Report status to key stakeholders with alternative proposals for release.

f. Prepare UAT completion report with recommendations.

· Post UAT Actions

a. User training design and plan.

b. Post release support.

c. Continuous testing

d. Post UAT report with frequently asked questions etc.

1.3 Develop OneSDLC Documentation and Security Compliance

1.3.1 Support the development, documentation, and management of OneSDLC artifacts to ensure compliance with IRS OneSDLC standards.

1.3.2 Complete any required training to support OneSDLC development, documentation, and management.

1.3.3 Complete any required training to support OneSDLC development, documentation, and management.

1.3.4 Support the development, documentation, and management of additional OneSDLC artifacts as determined per OneSDLC or project manager.

Task 2 – Operation & Maintenance

The Contractor shall provide management, program, and technical support services.

The Contractor shall provide a single toll-free telephone number to the IRS, for help desk support. All help desk calls must be resolved within 24 clock hours. All help desk support personnel will be subject to background investigations. All help desk support personnel will be required to sign a disclosure statement. New personnel shall not be able to possess or use IRS equipment, hardware, or software until Interim Staff-like Access is issued by the National Background Investigation Center (NBIC), granting temporary interim access. Individual licensed users shall be able to contact the help desk directly. (Direct Support for Licensed End Users) Continued usage of PTE' dedicated Technical Support 1-800 number. The Contractor shall provide technical support services (Support) for the software acquired under this order.

PTE IMS Tax Engine Middleware Maintenance (including e-file). This includes custom IRS upgrades and modifications to the Tax Engine Middleware Plug-in as necessary to integrate E-file Support and the latest version of PTE Software that is distributed to the IRS within the fiscal year (inclusive of e-File functionality) as described in the following paragraphs.

The Contractor shall have the knowledge, skills, and ability to plan and execute work in the following areas:

· Strategic Planning

· Large-Scale Program Implementation

· Business Process Re-engineering

· Training and Development

· Developer, Web, and Structured query language SQL database

· IT Programming Languages

· SharePoint

· Project Management Methodologies

· Production, Development, and Test Environments

· IT System Development, Modernization, Enhancement, and Operation & Maintenance

· Technology Integration & Implementation

· Operational Program Integration with IT and Business Operating Divisions

· Strategy Planning and Implementation

· Performance Management Design and Implementation

· Income Tax Planner (ITP), Issues Management System, Corporate Tax Analyzer (CTA), ECM

· Compliance and Strategic Programs

· Tax Administration

· US and Foreign Tax Codes

2.1 Support Deployment of applications IRS test and Production Environments

2.1.1 Support development and deployment activities in an IRS approved Development Environment and IRS approved test environment

2.1.2 Perform stabilization tests in the IRS approved Development Environment and IRS approved test environment.

2.1.3 Interface and coordinate with IT for all server maintenance activities in the IRS approved Development Environment and IRS approved test environment, including any modifications needed to the applications.

2.1.4 Develop IT Transmittals which cover maintenance of IRS approved Production Environment and IRS approved test environment.

2.1.5 IRS approved Production Environment and IRS approved test environment shall be utilized prior to any major enhancements which are determined at customer discretion.

2.1.6 Address deployment related defects & support the re-deployment process from IRS approved Development Environment and IRS approved test environment to IRS Production Environment.

2.2 Operations and Maintenance

2.2.1 Perform troubleshooting and resolution of routine application maintenance and updates and technical and escalated issues related to PTE Software

2.2.2 Support changes/updates to data sources and data elements previously implemented in PTE Software

2.2.3 Support the installation of updates to installed software on servers.

2.2.4 Coordinate with IT and LB&I for all PTE Software server maintenance activities including change requests, UWRs, transmittals, necessary waivers, etc.

2.2.5 Support any migration activities.

2.2.6 Perform maintenance activities.

2.2.7 On-going support and resolution of PTE Software defects

2.2.8 Technical analysis and provide estimates of defects to LB&I management team.

2.2.9 Support changes/updates to the auditing process, transfer of results from PTE Software, etc. to ensure continued compliance with applicable Internal Revenue Manuals (IRMs) and Enterprise Security Audit Trails (ESAT) policies.

2.2.10 Support updates/changes to ESAT documentation such as audit plan and Interface Control Document (ICD)

2.2.11 Support unit, integration, and regression testing by following development, test, and production progressive deployment lifecycle.

2.2.12 Support establishing procedures for planned and unplanned outages/shutdown.

2.2.13 Consult on change requests.

2.3 Perform Maintenance Activities

2.3.1 Support creation of a PTE Software O&M Release schedule that allows for timely responses to emerging stakeholder needs.

2.3.2 Providing support by means of consulting, troubleshooting, and code changes within the IRS Development, Test, and production environments to ensure resolution and functionality within the production environment.

2.3.3 Analyze performance of the PTE Software systems and potential uses for Campaigns, filter projects and other areas LB&I may identify during this contract period.

2.3.4 Gather and manage change request requirements.

2.3.5 Conduct troubleshooting sessions with PTE Software end users and IT staff to include interconnectivity with all other systems.

2.3.6 Establish and maintain a change control process to determine eligibility of a request and allocate repaired defects and approved enhancements to a release.

2.3.7 Perform technical analysis and provide estimates of defects to the IRS project team.

2.3.8 Conduct testing activities necessary to support software development for PTE Software defect resolutions.

2.3.9 Perform regular, routine maintenance and diagnostics on the PTE Software system.

2.3.10 Conduct software design and development activities.

2.3.11 Perform unit, integration, and regression testing by following a development, test, and production progressive deployment lifecycle.

2.3.12 Support monthly Application/Systems/Servers (APP) scans, testing queries, reporting issues, and supporting resolution.

2.3.13 Implement newest version of Transport Layer Security (TLS)

2.3.14 Perform system audits to include monitoring and testing controls.

2.4 Support future PTE Software functionalities.

2.4.1 Participate in decomposition of requirements. This includes breaking down each requirement to define all the work needed to deliver that specific requirement.

2.4.2 UAT. This includes all tasks needed to conduct and complete UAT.

2.4.3 Employee User Portal (EUP) and Registered User Portal (RUP) user guide updates

2.4.4 Update RUP User guide for translation purpose

2.4.5 Tax Engine Middleware Plug-in shall be updated and modified to integrate E-file Support each time the latest version of PTE CTA Software that is distributed to the IRS within the Period of Performance and at a minimum shall be updated at least once during the Period of Performance.

2.4.6 Support the development of revised/improved Business Processes based on improved/changed functionality for future PTE Software project releases.

2.4.7 Update templates and guides and facilitate working sessions to support the handoff of prioritized requirements to project manager.

Task 3 – Development of tax software for PTE

The Contractor shall provide management, program, and technical support services. All the below services shall include ramp-up activities where the Contractor acquires an understanding, from the Government of the documentation and processes for any work in progress.

The following software products and services are required:

3.1 The system shall have an ability to securely integrate the tax calculation software with the Pega Systems ECM System.

3.2 The system shall have an ability to provide tax calculation services to unlimited concurrent users.

3.3 The system shall have an ability to perform tax calculations identified in the automated ECM business process workflows (1065, 1120S, 1041).

3.4 The system shall have an ability to accept and process ad-hoc tax calculation requests.

3.5 The system shall have an ability to conduct tax calculations without a constant connection to the IRS network in limited connectivity or disconnected environments.

3.6 The system shall have an ability to securely import and export tax data using industry standard API architectures, to and from IRS systems and databases.

3.7 The system shall have an ability to perform computations on the IRS Forms 1120-S, 1065 (other than those subject to the centralized partnership audit regime or Bipartisan Budget Act of 2015 (BBA)), 1041, and all related IRS Forms and schedules, 10 years at a minimum and carryback 20 years for 1041.

3.8 The system shall have an ability to perform pass-through tax calculations for IRS form families 1120S, 1065, and 1041 going back 10 years.

3.9 The system shall have an ability to generate Revenue Agent Reports (RARs) including Forms 4605/4605-A/886-S/886-Z/886-X/886-W. Form 1065 uses Form 4605 for all cases except unagreed Tax Equity and Fiscal Responsibility Act (TEFRA)/Bipartisan Budget Act of 2015 (BBA), which uses Form 4605-A. Form 1120S uses Form 4605 for all cases – both agreed and unagreed. Form 1041 and 1120S uses Form 4549 for agreed cases and 4549-A for unagreed cases.

3.10 The system shall have an ability to generate customized reports that are legible, professional in appearance, and usable for an agency's official business purposes.

3.11 The system shall have an ability to generate separate year RARs when partners/shareholders/beneficiaries differ.

a The system shall have an ability to generate RAR for non-concurrent years (example 2016 & 2018).

b The system shall have an ability to enter Memo Adjustments.

c The system shall have an ability to include information in “Remarks” section.

3.12 The system shall have an ability to generate Forms 870-LT and 870-PT when TEFRA provisions apply.

a The system shall have an ability to carryover information from Forms 4605/4605-A Remarks to these forms.

3.13 The system shall have an ability to generate Forms 4549/4549-A/4549-B/870 when Built-in Gains or other tax applies on F1120S.

3.14 The system shall have an ability to compute imputed underpayment amount for Form 1065 falling under the BBA regime.

a The system shall have an ability to sort/edit/add/delete Partnership Related Items (PRI).

b The system shall have an ability to enter adjustments, including zero and duplicative adjustments.

c The system shall have an ability to automatically generate required verbiage regarding these adjustments in the “Remarks” section.

d The system shall have an ability to generate Forms 14791/14792/15027.

e The system shall have an ability to make revisions to the underpayment and prepare associated forms (Forms 14791/14792/15027).

f The system shall have an ability to take into consideration “push out” adjustments when required forms are filed by taxpayers/partners.

g The system shall have an ability to apply dual procedures and prepare Forms 4605/4605-A/886-S.

h The system shall have an ability to input penalties and interest. Penalties should flow to all forms.

i The system shall have an ability to limit negative adjustments and automatically generate required verbiage regarding these adjustments in the “Remarks” section.

3.15 The system shall have an ability to enter information from each Schedule K-1.

3.16 The system shall have the Partners/Shareholder set-up (e.g., name, address, SSN, TIN, etc.).

3.17 The system shall have an ability to input separate allocation percentages per year for multi-year exams.

3.18 The system shall have an ability to allocate by ownership percentage for each partner/shareholder.

3.19 The system shall have an ability to identify special allocations for each partner/shareholder.

3.20 The system shall have an ability to identify special allocations by line item.

3.21 The system shall have an ability to allow the same Taxpayer Identification Number (TIN) for multiple partners/shareholders.

3.22 The system shall have an ability to enter information for more than 100 partners/shareholders.

3.23 The system shall have an ability to carryover of partner/shareholder information when prior or subsequent years are added – ability to edit/add/remove partners/shareholders in each year.

3.24 The system shall have an ability to add up to 50 “Other Items” from Schedule K-1 box 20 including TCJA items as well as Section 199A information. (Refer to Schedule K-1 instructions)

3.25 For Forms 1065 that opt out of BBA – The system shall have an ability to prepare Forms 886-S and F4605.

3.26 The system shall have a standalone ability to enter adjustments, document, perform computations, and generate RAR outside of IMS/ECM.

3.27 The system shall provide a Graphical User Interface (GUI) that closely resembles the applicable IRS Tax Form for each year.

3.28 The system shall provide an intuitive, user-friendly GUI that references IRS Tax Form line numbers where applicable for each year.

3.29 The system shall provide a “Help” Menu within the software that includes the following:

· Help for Each Selected Line Item

· Help for Menu Items

· How to Use Help

· What’s New (Features and Updates)

· “Tutorial” links with lessons and exercises to reinforce learning on how to use the software and specific tax law topics related to Pass-Through Entities.

· Contact Us

· License Extensions

· About

3.30 The system shall provide access to the Help Menu by:

· Choosing the Help tab or ? icon at the top of the page

· By right-clicking on the line item in the form

· Pressing the F1 key on the keyboard

3.31 The system shall provide access to an Indexing Query within the Help tab.

3.32 The system shall allow the Indexing Query to have three navigation tabs:

· Contents – List of the Help library

· Index – List of all the tax law topics with hyperlinks to each topic specification detail page

· Search – Allow search of topics by keyword.

3.33 The system shall provide detailed information for each Help topic:

· detailed description, examples, and information about topics including current Tax Law codes and regulations

· line number of Form being impacted

· previous tax law history should remain on the help topic

3.34 The system shall provide a Worksheet List Navigation menu (directory tree) either on the right or left side (users preference) of input worksheets with the ability to select any navigation menu item and make available for input without closing existing worksheets.

3.35 The system shall allow data to be imported into the form and gives a warning if there is a variance (i.e., Sch K and K-1 reconciliation).

3.36 The system shall have an ability to create multiple "what-if" scenarios to compare, up to 30 different scenarios for the same taxpayer. IRS must have an ability to save different "what if" scenarios as separate files.

· For example: Three columns under the same tax year showing three different scenarios such as per return, agreed adjustments, and all adjustments.

3.37 The system shall have an ability to calculate Estimated Tax Penalties with IRS Forms 2210 and 2220. The system shall have an ability to calculate Failure to Deposit Payroll, Calculation of Failure to File, Failure to Pay and Civil Fraud and Accuracy related penalties.

3.38 The system shall have an ability to prepare Difference Views showing the differences between two scenarios on any selected worksheets.

3.39 The system shall have an ability to enter multiple years in a single case.

3.40 The system shall have an ability to import .xml files.

3.41 The system shall have an ability to perform a variance analysis between the imported .xml file and the system calculated results. The system shall have an intuitive variance view that clearly flags mismatched data fields between the taxpayer reported data and the system calculated results.

3.42 The system shall have an ability to have more than one instance of the program open by same user on the same computer.

3.43 The system shall have an ability to compute interest.

3.44 The system shall have an ability to generate Input Worksheets and Output worksheets to be shared with examination team and/or taxpayer.

3.45 The system shall have an ability to accommodate unlimited users at same time (multiple users can be working on software for different TPs and the same user can be working on multiple TPs at the same time).

3.46 The system shall have the capability to generate a stand-alone RAR, before adding the ability to communicate with IRS systems such as IMS/ECM.

3.47 The system shall have an ability to map adjustments from IRS systems such as IMS/ECM to appropriate form and line number.

3.48 The system shall have an ability to post adjustments from IRS systems such as IMS/ECM Forms 5701 to tax computation software.

3.49 The system shall have an ability to compute the following:

a Net Investment Income Tax b General Business Credit (GBC) c Foreign Tax Credit (FTC) d Income Distribution Deduction (IDD) e Alternative Minimum Tax (AMT) f Qualified Business Income Deduction (QBID Sec 199A) g Net Operating Losses (NOLs) h Carryforward/back NOLs/GBCs/Capital loss/etc. automatically for multi-year exams i Limit investment interest deduction based on Form 4952 j Electing Small Business Trusts (ESBT) Taxes – Including regular tax, AMT, GBC, FTC, etc.

k Allocate distributions to beneficiaries.

l Enter adjustments to allocations to beneficiaries and generate a Form 886-W m Generate input and output worksheets.

· Include an output worksheet for the tax computation based on the Schedule D, Schedule D Tax worksheet, and/or Qualified Dividend Worksheet

3.50 The vendor shall provide, at a minimum, quarterly updates for all forms and schedules to support calculations for future tax years through-out the contract term.

3.51 The ability to limit the amount of resources and errors associated with manual tax calculations.

3.52 The ability to pre-populate existing carryover information from prior years, up to 20 years. If prior years are not previously set up, it shall allow for manual input of carryover information for up to 20 years.

3.53 The ability to automatically generate schedules for carryforward and carryback credits.

3.54 The software shall protect formulas and calculated fields and prevent user from overriding the systems. Fields should be provided for manual adjustments as needed.

Task 4 – Software Solution

4.1 Develop One Solution Delivery Lifecycle (OneSDLC) Documentation and Security Compliance

4.1.1 Support the development, documentation, and management of artifacts to ensure compliance with IRS standards.

4.1.2 Complete any required training to support development, documentation, and management.

4.1.3 Support the development, documentation, and management of additional artifacts as determined per OneSDLC or project manager.

4.1.4 Provide a tax software solution for PTEs to improve operational efficiency and security.

4.1.5 Provide tax calculations and generate IRS examination reports for income tax examinations of PTEs (including partnerships, S corporations and trusts).

4.1.6 Employ IT best practices for all software functionality, all final product/recommendations are upgradeable and produce the most proficient option.

4.1.7 Provide Business Analysis Support according to Requirements Engineering Program Office (REPO) methodology in gathering and documenting requirements and reviewing requirement documents.

4.1.8 Provide Project Management Support including documenting and resolving risks/issues; participates in weekly conference calls; creates and maintains weekly project plan; creates weekly status reports.

4.1.9 Communicate and document key project information including risks/issues and incidents in real-time; participates in weekly conference calls; creates and maintains weekly project plan; creates weekly status reports.

4.1.10 Email weekly project plan and status reports with cross references to the project plan to the IRS Project Manager.

4.1.11 Provide recommendations and/or improvements for efficiency and processes for reporting in the system.

4.1.12 Provide application support for the security of the system and recommend security improvements.

TASK 5 – Tax Computation software combined user and technical support (HELPDESK)

5.1 Ensure helpdesk will be staffed to provide support for 2,000 IRS users.

5.2 Ensure all help desk calls/tickets be resolved within 12 Business hours.

5.3 Ensure Level 2 and Level 3 technical support is available as needed.

5.4 Ensure there are Escalation Procedures in place in case they are unable to restore the system to proper operating condition within the required response time. A copy of these procedures must be provided to the IRS. In conjunction with the Contractor, the IRS reserves the right to add, delete or modify these procedures as necessary.

Task 6 - IMS Tax Engine Middleware technical/developmental support assistance for IRS proprietary customized IMS Tax Engine Middleware (IMS M)

6.3 Provide support for a common service layer that can connect to the tax software Application Programming Interfaces (API’s)/Middleware as well as other calculators in the suite of tax calculators (ex, API, bridge/plug-in/connector).

6.4 Provide the IMS Tax Engine, referred to as the Tax Engine Middleware Plug-in. It is necessary to integrate E-file Support with the latest version of PTE Software that is distributed to the IRS during each fiscal year.

6.5 Provide contractor services except for the middleware user support assistance stated in the preceding items: i.e., consulting, on site visits, instruction, skill development work and materials necessary to complete the Pass-Through Entities software support work statement requirements.

Task 7 - Maintenance

7.1 Provided that Issue Management System (IMS) is a large case main audit reporting program used throughout LB&I, the vendor shall provide Middleware that will enable the tax software to interact with IMS.

7.2 The vendor shall maintain an adaptor that imports the Extensible Markup Language (XML) tax return data into the Pass-Through Entities tax software.

7.3 Provide upgrades and modifications as necessary to integrate E-file Support.

7.4 Ensure all products and services are delivered timely.

Task 8 - Cloud Support

8.1 Provide a cloud solution that will integrate with both legacy case management systems (i.e., IMS and ECM.

8.2 Provide a solution that works independently without cloud support.

8.3 Provide cloud server enhancements for all delivered software.

8.4 Provide software that utilize a cloud server for accessing and storing all information.

8.5 Provide a FEDRAMP authorized cloud-based solution or authorized to operate within a FEDRAMP authorized cloud-based solution.

8.6 Provide 508 Test Plan & Voluntary Product Accessibility Template (VPAT) Report.

8.7 Provide IPv6 Test Plan and Testing report signed by company executive.

8.8 Provide Metrics Reports.

8.9 Provide release notes with technical documentation.

7. DELIVERABLES

7.1 ACCEPTANCE CRITERIA FOR DELIVERABLE

The Contractor shall report to the Contracting Officer’s Representative (COR) and Program Manager when deliverables are completed. COR and Program/Task Manager (delegated official) shall issue acceptance for each deliverable and upon the successful completion of each task. The acceptance date shall be the day the final deliverable is accepted by the Government or the date the task was successfully completed.

If the Contractor has not been notified of any discrepancies within ten (10) business days after submission of the delivery or successful completion of the task, then the deliverable or task shall be considered accepted. During this review period, the Government will have the right to reject or require correction of any deficiencies found in the deliverable that are contrary to the information contained in the Contractor’s accepted proposal.

7.2 DELIVERABLES AND DELIVERY SCHEDULE

7.2.1 Executive Briefing

Contractor shall provide a briefing to the executives quarterly. Followed by a conference call at a scheduled time agreeable to all parties. The following items should be included:

· Agenda

· Objectives

· Project status updates

· Risk/Issues/Concerns

· supporting facts and data

· Impact

· Financial information

· Problems/solutions/workarounds

· Recommendations moving forward.

7.2.2 Contractor Staff Security (CSS) Report Data Analysis

7.2.3 Contract Status Report

Contractor shall provide to the IRS COR and the IRS Program Manager the Monthly CONTRACT Status Report no later than the day before the Contract Program Management Meeting. It shall contain only contractor work items accomplished for the reporting month. The IRS and contractor shall agree to a format within 30 business days of award of this CONTRACT. All electronic submissions of the Monthly CONTRACT Status Reports shall be provided using Microsoft Office products in accordance with the 508 compliant requirements.

Contractor shall coordinate a Monthly Program Management Call. This will include the contractor, IRS COR, and IRS Task Manager(s). The call will be used to discuss any open work requests, issues or concerns and overall performance.

The Contractor shall provide a monthly Contract Status Report detailing:

· Performance against the requirements

· Project status report including the following:

· Key milestone progress

· Accomplishments

· Concerns/Risks/Issues/Decisions

· Next Steps

· Site visit logs (in-time and out-time, ticket number, results of Contractor action, name of technician)

· Type and number of service incidents provided (i.e., installation, move, add, change

· Status of all active work requests

· Defect tracking and resolution status

· Change logs.

7.2.4 Quarterly Contract Program Management Meeting

Contractor shall coordinate this meeting two weeks in advance. This can be fulfilled by a conference call at a scheduled time agreeable to all parties.

7.2.5 Work Plan and Schedule

Contractor shall provide a Work Plan and Schedule that contains a detailed time-bound statement and schedule of works and activities including Exploration Operations to be carried out for the Project team from the date of delivery of Inception Report till the Project Deliverables Completion Date. The Work Plan and Schedule should include the following:

· Goals

· Objectives

· Milestones

· Project Tasks

· Key deliverables

· Resources

· Task assignments

· Timeline

· Due dates

· Risk/Issues/Concerns

· Tracking

· Budget

7.2.6 Technical Summary Status Report

Contractor shall provide a technical status report that contains a detailed technical progress to date and report on all problems, technical issues, major developments, and the status of external collaborations during the reporting period.

The technical status report shall detail technical progress to date and report on all problems, technical issues, major developments, and the status of external collaborations during the reporting period. Quarterly reports are due no later than 30 days after the end of the project quarter and annual reports are due no later than 30 days after the end of the project year. - Technical reports will provide a concise and factual discussion of the significant accomplishments and progress made during the reporting period. Each of the topics described below shall be addressed for the effort performed: - A comparison of actual accomplishments with the goals and objectives established for the period; - Reasons why established goals and objectives were not met, if appropriate; - Other pertinent information including, and when appropriate, analysis and explanation of cost variances.

7.2.7 Quality Control Plan

Contractor shall provide a Quality Control Plan (QCP) that contains a written set of procedures and activities aimed at delivering products that meet quality objectives for a project as stated in contract documents and other procedures, manuals, and guidance.

The objective of the QCP is to:

· Enhance Product Quality & Reduce Risks

· Gain Production Efficiencies

· Increase Customer satisfaction.

The QCP shall include the following:

· Overview or introduction (with a plan background or scope)

· Organizational structure (team, departments, and areas)

· Survey and Feedback mechanisms (internal and external)

· Performance standards and documentation

· Definition of deliverables and outcomes

· Corrective and preventive actions

· Task and process responsibilities

· Required notifications and alerts.

· List of resources and suppliers

· Quality control procedures

· Training and courses

· Testing parameters

· Acceptance criteria

· Audits

7.2.8 Develop a work plan and schedule.

Contractor shall develop a work plan and schedule that includes but not limited to the following:

· Set Goals & Objectives

· Define the Scope of the Work

· Estimate Resources Need

· Identify Roles & Responsibilities

· Estimate Costs & Create a Budget

· Create a Project Schedule

· List Any Risks, Constraints and Assumptions

7.2.9 Program Management Call

Contractor shall provide a monthly Program Management Call to provide a summary overview of the project's status that can be shared with stakeholders, clients, and team members. The Program Management Call shall include but not limited to:

· Integration cost, schedule, and technical performance data.

· Identifying potential problem areas that may cause significant cost variance and schedule variance.

· Providing valid, timely, and accurate contract status information

7.2.10 Process documentation, test plans and recommendations

The Contractor shall provide process documentation, test plans and recommendations that include but not limited to:

Process Documentation

· Define goals.

· Identify documentation team.

· Research on tools and requirements

· Define template.

· Write documentation.

· Identify and name the process.

· Outline the process scope.

· Detail the process boundaries.

· Capture the process outputs.

· Capture the process inputs.

· Collect the process steps.

· Peer review

· Publish the document.

· Audit the performance.

· Process: e.g.

· Source code management

· Deployment

· Change Management

· Risk management

· Operations & Maintenance

· Security

Test plans and recommendations

Contractor shall provide Test Plans and recommendations that include but not limited to:

· Test Plan Identifier - a unique identifying reference

· Name of the document

· Version Number

· Build Number

· Year

· Introduction - a quick description of the project plan.

· Test Items - functionality to be tested.

· systems and subsystem

· installation

· registration

· checkout

· It serves as a concise summary of the Test Plan's information. Each of the items will be covered in more detail later. Depending on the objective or type of testing, the list may need to be cut or increased.

· Features to be Tested - a more detailed list of features to inspect throughout a given period.

· Approach – an outline of the methods and types of testing employed.

· Test Deliverables – a list of testing results typically presented in metrics.

· number of tests run.

· defects discovered.

· etc.

· Staffing and Training Needs

· Schedule

· Planning Risks and Contingencies

7.2.11 508 Test Plan Contractor shall conduct validation of Section 508 requirements within 30 days after award of task order to ensure incorporation into agency life cycle activities, including enterprise architecture, design, development, testing, deployment, and ongoing maintenance activities.

Contractor shall provide accurate and repeatable Section 508 compliance test results for software and Web applications. Contractor shall follow the Section 508 compliance Application Test Process, uses approved test tools, and evaluates software and web applications for compliance with Section 508 standards.

Contractor shall provide a clear process for addressing and tracking Section 508 complaints to provide effective communication with complainants, to validate Section 508 non-compliance claims, to support an appropriate agency response aimed at minimizing legal exposure, costs, and loss of administrative time, and to serve as input into decisions related to resource and work planning.

Contractor shall provide training for stakeholders on roles and responsibilities related to Section 508 compliance. All relevant personnel need to be identified and trained. Mandatory training needs to be established and tracked. This includes, but is not limited to, training for executives, program and functional managers, information resources managers, security and audit personnel, automated data processing management, operations, and programming staff, and testers.

7.2.12 508 Testing Documentation Contractor shall provide to the IRS a detailed VPAT within 30 days after award of task order that explains how all of the information and communication technology (ICT) products such as software, hardware, electronic content, and support documentation meet the Revised 508 Standards for IT accessibility.

7.2.13 IPV6 Testing Conformance

Contractor shall conduct validation of IPV6 Conformance within 60 days after award of task order to ensure the PTE products are IPv6 compliant.

7.2.14 IPV6 Compliancy Documentation

Contractor shall provide a Supplier's Declaration of Conformity (SDoC) signed by company executive within 60 days after award of task order to show that the PTE products conforms to the IPV6 standard or technical regulation, in which the contractor will provide written assurance of conformity to the specified IPV6 requirements. Contractor shall use the SDoC as a means to document the capabilities implemented in their host, router, or network protection device.

7.2.15 Sources of Incident/Request Analysis

Contractor shall provide a standardized response process for cybersecurity incidents 30 Days after Receipt of Order (DARO)/monthly thereafter and describes the process and completion through the incident response phases including preparation, detection and analysis, containment, eradication and recovery, and post-incident activities.

Contractor shall immediately and thoroughly investigate all indicators that a security incident may have occurred and submit information to the IRS within eight hours of discovery and update the submission every 72 hours thereafter until the Contractor, the agency, and/or any investigating agencies have completed all eradication or remediation activities.

The Government will have “full access” to applicable contractor information, information systems, and personnel, in response to a security incident reported by the contractor or a security incident identified by the Government. The term “full access” means: (1) physical and electronic access to networks, systems, accounts, and other infrastructure; and (2) contractor “provision of all requested Government data or Government-related data,” including images, log files, event information, and contractor employee statements.

7.2.16 Background Investigation Forms

Contractor shall provide a completed background investigation form five (5) business days of IRS acceptance of proposed Contractor employee. Contractor personnel will be subject to background investigations. All support personnel will be required to sign a disclosure statement. New personnel shall not be able to possess or use IRS equipment, hardware, or software until Interim Staff-like Access is issued by the (NBIC, granting temporary interim access.

7.2.17 Contractor Staff Security

Contractor shall provide and ensure a list of employee staff-like access is correct and complete at end of each quarter of Government business calendar.

Reinvestigation requests are submitted 120 business days prior to expiration of staff-like access.

Contractor shall be in compliance with IRM 10.23.2. This includes the requirement from Treasury Directive 71-10 that all contractors working on a Treasury (or IRS) contract must be U.S. citizens or permanent residents.

7.2.18 Mandatory IT Training

Contractor shall provide to the IRS a detailed plan to ensure all contracting personnel assigned are delivered annual Federal information systems security awareness and training. Contractor must also provide initial, continuing, and refresher training at the awareness level, policy level, implementation level and performance level for executives, program and functional managers, information resources managers, security and audit personnel, automated data processing management, operations, and programming staff, and testers. The training information and results will be provided to the Government annually, usually by April 30.

7.2.19 IRS Management Plan

The contractor shall provide to IRS a management plan with which to manage all the contract deliverables and tasks. This plan must provide appropriate program and project management information and reporting systems to define program and project costs, schedules, and deliverables.