Revised 02/11/11 SPD-SPR004

Supplier Q & A -2

RFP Number: 47400-DOR0000056 RFP Title: Fraud Management Solution Requesting State Entity: GA Department of Revenue

Date: 03/13/2015

Issuing Officer: Arnaz Fanning RFP Initially Posted to Internet: 02/27/15 eMail Address: Arnaz.fanning@dor.ga.gov Telephone: 404-417-2188

The purpose of this document is to provide answers to supplier questions.

Please see Questions and Answers included herein.

Note: This document is intended for informational purposes only. Any changes to the RFP must occur through a published addendum (or through publication of a new version of the RFP in Team Georgia Marketplace™). If multiple Q & A documents are posted, the most recent Q & A shall govern in the event of a conflict.

QUESTIONS AND ANSWERS

# Questions Referenced RFX Section

Answers

1.

Question 33 in the Mandatory Scored Response spreadsheet indicates that identity confirmation is needed for 10 million tax-filer records. Our proposed services will be based, in part, on the number of individual income tax returns that the state receives annually. We can therefore provide a more competitive price if identity confirmation and fraud functions are based on an accurate number of individual income tax returns and tax filers.

Will the state confirm the approximate number of individual income tax returns it receives on an annual basis, as well as the need for identity confirmation services for 10 million tax-filer records (regardless of whether these tax-filer records involved submission of an individual income tax return)?

Mandatory Scored Response spreadsheet, Question 33

DOR receives approximately 4.3 million tax returns annually and less than 5% are sent for identity confirmation.

RFX Section

Answers

2. 2

Since Fast Enterprise Integrated Tax Solution (ITS) is .NET, is this the prefer deployment platform for the Fraud solution? If no, are there any restrictions or other development platform preferences.

Yes, .NET is DOR’s preferred deployment platform for the Fraud solution.

3.

How many users will need to be able to write and update rules?

Initially, six users should have the ability to write and update rules, with the flexibility to add and/or remove user rights as needed. (This total includes potential IT support as well)

4. 4

How many users will need to create, view, and update business intelligence reports regarding the performance of the Fraud Management Solution?

Approximately fifteen initial users for create and view. The update capability will be approximately 5 users. (Total includes all levels of management in OSI, Deputy Commissioner(s) and potential IT support)

5. We understand that the Fraud Management Solution must ingest at minimum 15 data sources. Can you please provide a list of the specific data sources that you anticipate will be leveraged by the Fraud Management Solution or that are used by tax fraud investigators today? Can you please also indicate whether the data sources are internal to the State (state controlled) or external

The data sources and data sets used to confirm tax filer identity must be Nationwide, Authoritative, Publically and Commercially available. The unique data sources can include; federal, state, local, commercial entities, vital records information, arrest and incarceration records, driver's license, ID cards, Motor Vehicle registrations, Death records, telephone and utility records.

Further information regarding data sources cannot be divulged in a public document without compromising the current DOR fraud management process.

6. How many returns were processed by the Georgia Department of Revenue annually from 2010-2013, what is the projected growth rate of returns over the term of the contract?

DOR processed approximately 4.3 million returns annually from 2010 – 2014. The growth in recent years has been minimal.

7. Would you be able to provide an overview of the current fraud investigation team structure? For example, how many full time

The current team structure is flexible based on the volumes at any given point in time.

DOR investigates approximately 15% of

RFX Section

Answers investigators does the state currently employ and what percentage of overall returns is typically investigated? Do you anticipate this organizational structure will change?

overall returns today.

We always look for areas of opportunity.

8. What is the current methodology leveraged today to facilitate information sharing between states?

DOR currently leverage the Gentax Data Exchange and the FTA SFE (Suspicious Filers Exchange) to facilitate information sharing between states.

9. In addition to identifying tax fraud and evasion on the taxpayer level, as well as identity theft, are there additional tax fraud modus operandi you would want the solution to address? For example, return preparer fraud?

The solution will provide DOR users with an intuitive way to search all data records that have been received for the filing season and provide the ability to identify patterns, trends, or do other analysis on the data.

10. Will the Fraud Management Solution primarily access DOR data via the Oracle Exadata appliance? Will the system need to analyze information in real time (instantly) or will information be processed in batches (daily, weekly, monthly, etc.)

The Fraud Management Solution will primarily access DOR data via the Oracle Exadata appliance. A combination of real time and daily batch processing is preferred based on business rules.

11. What type of data modeling tools does the DOR current use (i.e. SAS, R, etc.)? How many DOR individuals currently create, test, and maintain your current models?

DOR currently use KXEN as the data modeling tool today. There are approximately five users currently creating, testing and maintaining models.

12. Is there a platform (Windows/Unix/Linux) that is a required OS/platform for the solution?

This depends on the solution and its ability to integrate. Windows is DOR’s preferred platform.

13. Are cloud based solutions allowed or do they have to be on premise?

DOR expects the data input to Fraud Management to contain Federal Tax Information. Therefore, any proposed solution would have to be hosted in an IRS 1075 compliant facility. At this point DOR is not aware of any public cloud provider with IRS 1075 compliance.

14. Does the State allow/support RHEL (Red Hat Enterprise Linux) for development?

The State does not allow/support RHEL for development.