TIRNO-11-R-00005.doc

OMB Control No. 1505-0081

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

1.

REQUISITION NUMBER

W-1-W0-11-RP-I00 000

2.

CONTRACT NO.

3.

AWARD/EFFECTIVE DATE

4.

ORDER NUMBER

5.

SOLICITATION NUMBER

TIRNO-11-R-00005

6.

SOLICITATION ISSUE DATE

12/06/2010

7.

FOR SOLICITATION INFORMATION CALL:

LEE, PAMELA T

b.

TELEPHONE NUMBER (No collect calls)

202-283-1291 8.

OFFER DUE DATE/ LOCAL TIME

01/03/2011 12:00 PM EST

9.

ISSUED BY

THIS ACQUISITION IS

Internal Revenue Service

6009 Oxon Hill Road, Suite 500

Oxon Hill, MD 20745

SMALL BUSINESS

EMERGING SMALL BUSINESS

VETERAN-OWNED

SMALL BUSINESS

8(A)

11. DEVLIVERY FOR FOB DESTINATION

UNLESS BLOCK IS MARKED

RATED ORDER UNDER DPAS

(15 CFR700)

13b. RATING

SEE SCHEDULE

14.

METHOD OF SOLICITATION

RFQ IFB RFP

ADMINISTERED BY

Internal Revenue Service

1111 Constitution Avenue, NW

Washington , DC 20224

Internal Revenue Service

6009 Oxon Hill Road, Suite 500

Oxon Hill, MD 20745

17a.

CONTRACTOR/

18a.

PAYMENT WILL BE MADE BY

OFFEROR

CODE

TO ALL OFFERORS

IRS Beckley Finance Center

P.O. Box 9002

Tel: (304) 254-3300

Beckley, WV 25802

TELEPHONE NO.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

OFFER

18b.

SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK

BELOW IS CHECKED.

SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25.

ACCOUNTING AND APPROPRIATION DATA

26.

TOTAL AWARD AMOUNT (For Govt. Use Only)

27a.

SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE

ARE NOT ATTACHED.

27b.

CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4, FAR 52.212-5 IS ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED.

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.

29. AWARD OF CONTRACT: REF. OFFER

DATED . YOUR OFFER ON SOLICITATION (BLOCK 5).

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

HEREIN, IS ACCEPTED AS TO ITEMS:

30a.

SIGNATURE OF OFFEROR/CONTRACTOR

31a.

UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT)

30c. DATE SIGNED

31b NAME OF CONTRACTING OFFICER (TYPE OR PRINT)

31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

STANDARD FORM 1449 (REV. 3/2005) PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212 19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE (US$)

24.

AMOUNT (US$)

32a.

QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED

INSPECTED

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

REPRESENTATIVE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

33. SHIP NUMBER

CORRECT FOR

36. PAYMENT

COMPLETE

PARTIAL

FINAL

37. CHECK NUMBER

PARTIAL

FINAL

42b. RECEIVED AT (Location)

42.c DATE REC’D (YY/MM/DD)

42d. TOTAL CONTAINERS

STANDARD FORM 1449 (REV. 3/2005) BACK

1.0 Background

In June 2009, the IRS Commissioner launched a comprehensive review of return preparers in an effort to help the IRS better leverage the tax community with the twin goals of increasing taxpayer compliance and ensuring uniform and high ethical standards of conduct for preparers. The IRS Strategic Plan for 2009 – 2013 addresses the importance of return preparers in two objectives:

1) Strengthen partnerships with tax practitioners, tax return preparers, and other third parties in order to ensure effective tax administration, and

2) Ensure that all practitioners, tax return preparers, and other third parties in the tax system adhere to professional standards and follow the law.

In December 2009, the IRS announced the results of the review and made multiple recommendations to increase oversight of return preparers. Please refer to the IRS Return Preparer Report (dated December 2009) for a greater understanding of the context and detail of the IRS Return Preparer recommendations http://www.irs.gov/pub/irs-pdf/p4832.pdf.

Included in the recommendations were the implementation of competency testing and suitability checks for tax return preparers who are not attorneys, certified public accountants or enrolled agents. At the discretion of the IRS, one or more tests will be offered. If more than one test is offered, the word “test”, shall be replaced with the word “test(s)’, throughout this document.

1.1 Scope/Objective

The purpose of this request is to procure vendor (hereafter, “Testing/Fingerprinting Vendor”) support in the development and administration of a new testing program to enable tax return preparers to fulfill the requirement to test on federal tax laws, ethics and ability to correctly prepare returns for U.S. taxpayers, as well as demonstrate suitability.

The Testing/Fingerprinting Vendor will be responsible for test development and test administration activities, including hosting and maintaining a system to administer testing both by electronic and paper means and capture test results and data (Section 1.3 details extenuating circumstances for paper testing). Both the on-line and paper process should provide applicants an easy, quick, and secure means to schedule their competency test (Section 1.7 details extenuating circumstances for paper registration). Ongoing collaboration with the IRS and ongoing customer service activities should be available to support all development and administration activities. Attachment # 3 details the Testing Vendor process flow.

The Testing/Fingerprinting Vendor will also be responsible for providing on-site facilities for applicants to take their test within a controlled, professional and accessible testing environment.

At the option of IRS, the Testing/Fingerprinting Vendor will also be responsible to develop and administer a process for obtaining fingerprints of certain return preparers at the time of testing, transmitting the prints to the FBI using an approved FBI channeler, and ensuring that FBI fingerprint results be sent in an electronic format compatible with IRS system(s) as designated by the IRS. Also at the option of IRS, the vendor may be responsible for fingerprinting Certified Acceptance Agents, Electronic Filing Identification Number (EFIN) applicants and others, regardless of whether or not they test. For those preparers who may not be required to test, or who wish to use a vendor other than the testing vendor for fingerprinting, a separate vendor (hereafter, “Fingerprinting Vendor”) may be also be utilized. Attachment #4 details the Fingerprinting Vendor process flow.

Separately, another vendor (hereafter, “Registration Vendor”) has already been selected and has assisted the IRS in establishing a system for on-line and paper Preparer Tax Identification Number (PTIN) registration and renewal, user fee collection and issuance of a unique identifying number for all paid tax return preparers (hereafter, "preparers"). The Registration Vendor will be required to add functionality to the PTIN system to enable it to receive and electronically record test results from the Testing Vendor. The Registration Vendor and the Testing Vendor will have data interfaces (to be described throughout this document) related to matching identifying numbers to test-takers, sharing test reports and other information. All Vendors must ensure that there is a secure database/platform protecting return preparer personally identifiable information.

As part of the Federal Government, the IRS is required to provide security and privacy protections commensurate with the risk and magnitude of the harm resulting from the unauthorized access, use, or disclosure of information or information systems used or operated by the IRS or by a contractor for the IRS. All of the work performed under this contract must, therefore adhere to NIST Federal, Treasury, and IRS security and privacy standards.

1.2 Testing Requirement

Generally, preparers who are not attorneys, CPAs or enrolled agents will be required to take a competency test prior to obtaining a PTIN from the Registration Vendor. This includes enrolled actuaries, enrolled retirement plan agents, and limited enrollment enrolled agents preparing returns beyond the scope of their expertise, and others as defined by IRS Circular 230 who choose to prepare U.S. federal tax returns for compensation. At the option of IRS, those testing will not be allowed to prepare returns until they pass the test. Individuals will be allowed to test up to four (4) times per year.

Exception: To minimize interruption for current in-business preparers, individuals who have a PTIN before the test is available will have until December 31, 2013, to pass the test, and will be able to take it more than four times per year (as determined by the IRS) during this period, provided the applicable fee is paid for each attempt. During this time period these preparers will be allowed to prepare tax returns.

NOTE: At the option of the IRS, return preparers who do not prepare forms in the 1040 series, may not be required to test.

1.3 Test Development and Scoring

The Testing/Fingerprinting Vendor will be responsible for the following activities:

1. Develop one or more (at IRS’s option) on-line tests that demonstrate competence in tax matters, in accordance with current Standards for Educational and Psychological Testing, or other legally defensible test development standard.

2. Develop one or more (at IRS’s option) paper tests. The paper version of the test is to be available to individuals affected by the Americans with Disabilities Act, individuals with religious beliefs that prevent them from taking tests electronically, or at the discretion of IRS. The paper version for testing will be available at the same time as on-line testing is available.

3. Conduct a job analysis to ascertain the capabilities and necessary knowledge for preparers, which will serve as a key component of the test’s development. Subject matter experts from both the IRS and preparer community should be utilized to ensure an accurate rendering of tasks and performance objectives. IRS reserves the right for final approval of subject matter experts from the preparer community during test development. The IRS reserves the right to require the vendor to conduct a subsequent job analysis at a later time, if the IRS deems this is necessary.

4. Provide the test specifications and test plan for approval to the IRS.

5. Provide a high-level approach to test development, including solicitation of IRS approval for all test questions. Share all proposed questions, solicit input, and incorporate IRS feedback. Provide electronic access for this process. Applicable Internal Revenue Code (IRC) sections and/or IRS publication(s) (page numbers notated) that address each question should be provided to the IRS. IRS will exercise final approval over all test questions.

6. Provide sufficient number of test questions and test versions to ensure test integrity is maintained.

7. Develop a method to monitor the number of times the test is taken. Each applicant who registers after the test is available will be limited to four (4) opportunities per year. Applicants who registered for their PTIN prior to the date the test is first offered will be allowed to take the examination more than 4 times each year (as determined by IRS), until December 31, 2013.

8. Update the test as needed to reflect changes in tax law, return preparation error trends, test saturation, and scoring. This will generally occur on an annual basis. At the request of the IRS, the Testing/Fingerprinting Vendor shall revise applicable test questions when the IRS determines that a question is based on an invalid or disputable interpretation of the law.

9. Develop the test in English only. Developing and administering the test in other languages may be considered at a later date.

10. Develop a method for scoring electronically (and a paper scoring method when needed), that will also notify the test candidates who fail about their general areas of deficiencies.

11. Develop a plan to conduct pilot testing.

1.4 Additional Tests

1. At the option of IRS the vendor may be required to develop additional tax competency tests for tax professionals.

2. Provide all test development activities, including a job analysis.

3. Develop and administer all associated activities such as registration, test delivery, processing of test user fees, test grading and notifications.

4. Provide for all customer service activities related to an additional examination such as staffing a call-in center with individuals who are adequately trained.

1.5 Test Administration

The Testing/Fingerprinting Vendor will be responsible for the following test administration activities:

1. Commence test registration and administration within 6 months of award of contract.

2. The test will be offered generally year round.

3. Deliver the test nationally and internationally (e.g., Canada, Mexico, Europe, Asia) ensuring that the number and locations of testing venues sufficiently enable access and maintain adequate coverage to testing within in each state, district, territory, and foreign country, as approved by IRS. It may be necessary to add temporary locations to ensure access is available (within in a reasonable traveling distance), and in larger states and foreign countries.

4. The precise number of tax return preparers is not known. However the IRS estimates that there are between 900,000 and 1.2 million return preparers. Please note that not all of these return preparers will require testing. For additional information, please refer to the IRS Return Preparer Report (dated December 2009) at http://www.irs.gov/pub/irs-pdf/p4832.pdf.

5. Use secure testing sites with strict security guidelines, including applicant authentication, test proctoring and other established measures to protect test integrity. Site visits may occur to ensure compliance. The vendor must implement all IRS recommendations for testing security within a reasonable amount of time after the site visit.

6. Provide a professional test setting. Factors such as room capacity, environmental factors, equipment, parking, and site accessibility will be evaluated. The vendor will ensure that the IRS is accommodated in conducting periodic audits of test administration activities.

7. At the option of the IRS, develop a process for fingerprinting applicants at the time of test administration, but prior to taking the exam. Institute controls to ensure that the applicant fingerprinted is the same applicant authenticated to take the test.

8. Ensure facilities provide reasonable accommodations for testing applicants with disabilities in compliance with applicable law, including the Rehabilitation Act of 1973 and the Americans with Disabilities Act, as well as other individuals whose religious beliefs prevent them from taking the test on specific days.

9. Transmit test results, update test-taker status, and provide information about who has passed background investigations (after notification by IRS), to the Registration Vendor for association with the preparer’s account. Interface requirements between Testing/Fingerprinting and Registration Vendors will be developed and coordinated by the Registration Vendor, in conjunction with the IRS. The Testing/Fingerprinting Vendor must ensure that the transmission and storage of test-taker data be maintained within a secure interface/data base.

10. Provide an appropriate methodology for scoring the test and determining the minimum level of knowledge and skills required. IRS will evaluate and approve the process.

11. Provide proctored test administration. Qualified test administrators will be utilized. The IRS will evaluate and approve criteria to qualify test administrators.

12. Comply with authentication requirements as outlined in OMB Memorandum M-04-04, the most current National Institute of Standards and Technology (NIST) Special Publication (SP) 800-63, and the most current NIST SP 800-53 (requires that FISMA-governed systems follow SP 800-63 guidance for authentication). The IRS must approve vendor’s authentication solution prior to development. Test administration shall be conducted in a practical and accessible manner.

13. Develop testing/administration requirements to ensure applicants are tested under equally favorable conditions. With IRS participation and approval, the vendor will supply each test-taker with uniform materials and reference sources (e.g., calculators, computers). Note that materials must be controlled to prevent web-enabled or inter-communications searches for test assistance during the test.

14. Process test user fee payments. IRS user fee payments (necessary to cover IRS fees), will be collected by the Testing/Fingerprinting Vendor and remitted to IRS through Pay.gov for each test taken. The vendor assumes the responsibility for the return preparer competency testing program on a no-cost basis to the government. The vendor will be responsible for any insufficient fund issues. For further information see “No Cost Basis” and “Remittance of Government User Fee”, later in this document.

15. Develop a process to effectively address complaints from test takers, including those dealing with the validity/correctness of a test question and that of scoring. The vendor will address the majority of the complaints, however, the vendor should also establish a process for elevating appropriate complaints to the IRS. The IRS contact will determine a course of action for each complaint or protested question reviewed by the IRS, and will provide a resolution and final answer to the vendor, or at IRS option return to the vendor for resolution.

NOTE: The contractor, subcontractor, and employees of either contractor who are involved in test development shall not offer test preparation courses or participate in the sale of test preparation or study materials for the Registered Return Preparer Examination for a duration of one year after the termination of their contract.

1.6 Online Registration for Testing

1. Develop an online system that will allow preparers to register to take the test.

2. Establish a cancellation and rescheduling process that preparers may access on-line and by phone.

3. On-line testing registration and scheduling should be available (7) days a week, (24) hours a day.

1.7 Paper Registration for Testing

1. Develop a paper version of the online registration form will allow preparers to register to take the test. The paper version of the online registration form is to be available to individuals affected by the Americans with Disabilities Act, individuals with religious beliefs that prevent them from registering on-line, individuals where on-line registration is not readily accessible, or at the discretion of IRS. The paper version for registration will be available at the same time as on-line registration is available.

2. Include a process to handle paper registration forms and checks for payment.

1.8 Test Administration for Preparers Without Social Security Numbers (SSNs)

The PTIN issuance process for applicants without SSNs requires these applicants to prove identity and receive an IRS case number authorizing them to test and ultimately receive a PTIN. These case numbers will be used in lieu of SSNs as unique identifiers. The Testing/Fingerprinting Vendor will have responsibility for authenticating applicants using IRS-issued case numbers at the time of test administration. Note: If the preparer has received a PTIN prior to testing, the PTIN will be used in lieu of the case number.

1.9 System Interface

The Testing/Fingerprinting Vendor’s system must interface with the IRS Registration Vendor and IRS data systems for electronically recording and transmitting test results, updating test-taker status, providing information about who has passed background investigations, and providing personal data as needed. Vendors will be expected to execute the federally mandated Non-Disclosure, Interconnection Security Agreement, and Memorandum of Understanding with the IRS as a condition of establishing the interface. Additionally, the Testing/Fingerprinting Vendor should be prepared to provide substantial documentation support to both Enterprise Life Cycle processes, as well as, security requirements in order to ensure consensus and understanding around the interface requested. The Testing/Fingerprinting Vendor’s interface must meet Capability Maturity Model Integration (CMMI) Level 2 or above.

1.10 IRS Employee/TIGTA Access

IRS and Treasury Inspector General for Tax Administration (TIGTA) employees, will be issued 50 tokens (with the ability to increase this number over time), for unlimited remote access to the complete testing system as needed. At a later date IRS may require more tokens. The IRS has not defined authorization levels at this time.

1.11 Customer Service

1. Develop a service delivery program that ensures questions related to test registration, test scheduling, logistics, and other testing related issues are addressed. A link to the Testing/Fingerprinting Vendor’s webpage will be included on the IRS internet webpage.

2. Make customer services (service delivery program) available to preparers at least 14 days prior to availability of testing.

3. Include in the service delivery program, at a minimum, the staffing of a toll-free call center to include access for deaf and hearing-impaired individuals, and the development of a web site that includes on-line instructions/guidance regarding testing requirements, test scheduling, preparing for test, etc., for all.

4. Ensure service delivery is responsive to candidate needs, minimize wait/hold times, ensure reasonable coverage in all time zones, and consistently provide candidates with accurate and complete information.

5. Develop and make available to IRS employees, internal processes and procedures for use by vendor Customer Service Representatives to ensure quality and consistency of service delivery.

6. Develop a comprehensive Quality Assurance Plan that includes monitoring of calls, quality standards, review of paper processing activities and oversight/reviews of all test taking processes. Enable remote access to call monitoring and all review functions by IRS employees.

7. Provide call center operators who respond accurately to applicant inquiries and are trained on the specifics of the program. Subject to IRS approval the vendor shall provide a process to confirm the identity of the caller and the specific information that will be provided (e.g., test results and information on background checks).

8. The vendor will develop materials (i.e., reference material, sample test questions, etc.) to inform the public of general test areas and the test administration process. IRS will have final approval of the materials and reserves the right to display the information in total, or in part, on www.irs.gov.

9.

Ensure service delivery is responsive to candidate needs, in the areas of security or privacy such as stolen passwords, identity theft, or other security and privacy anomalies that require swift and immediate action.

1.12 508 Compliance

Vendor will ensure all communication is 508 compliant. IRS certification will be required within 6 months of award of contract. Please refer to Section 508 later in this document for additional information.

1.13 Account Management

The Testing/Fingerprinting Vendor will provide the following account management/preparer outreach capabilities:

1. Include a log-in interface with lost test user ID and password functionality (specifically a password reset capability).

2. Include a log-in interface with an expired password change / revalidation capability.

3. Include capability for automated notice issuance to preparers using pre-established business rules. The vendor, rather than the IRS, will have the responsibility for all communications with test takers. These notices will serve as reminders of upcoming requirements (e.g., preparers will receive a confirmation notification with test date, time, and location). All electronic notifications should be transmitted securely.

4. Notify all test takers of their test results within 60 days via U.S. mail during the initial rollout state of the examination while gathering statistics on test items.

5. Immediately notify test takers that tested electronically of their test results after the initial rollout stage of the examination.

6. Notify test takers that tested on paper, within 21 days via U.S. mail after the initial rollout stage of the examination of their test results.

7. Identify general subject areas where test taker needs to expand his or her knowledge and transmit to test taker after test completion (along with test results). After the initial rollout stage of the examination, this should occur immediately for electronic testing, and within 21 days for paper testing.

8. Develop the capability to issue ad hoc notices, as needed.

9. Develop the capability to utilize a secure mailbox for the preparer. This may be used to securely respond to preparer inquiries.

10. Undeliverable mail will be handled by the vendor using guidelines approved by IRS.

11. Responsible for all costs related to this process at no cost to the Government. The vendor will not be reimbursed by the Federal Government for fees, costs or any other charges or expenses.

1.14 Quality Control

The Testing/Registration Vendor will provide the following quality control capabilities:

1. EstablishEstablish a a comprehensive test validation process.

2. In conjunction with the IRS, establish a process for annual test reviews to ensure test accuracy and currency relating to tax code changes.

3. Establish prEstablish processes to solicit feedback from test takers to assess and continuously improve the test. The process should be in the form of a customized survey for test takers. The vendor will summarize the survey information as specified by the IRS and provide the information to the IRS in report format as needed.

4. Establish a comprehensive and secure applicant authentication process to ensure proper identification is solicited, maintained, and associated with appropriate test taking and fingerprinting (if applicant is also fingerprinting). The authentication process must be established for everyone who tests and fingerprints. IRS will evaluate and approve the process.

5. For return preparers without SSNs, additional identity proofing and verification of information such as foreign addresses, religious certification for SSN conscientious objectors, etc. may be required.

6. Develop a comprehensive Quality Assurance Plan for all processes related to testing (i.e. development, customer service, administration, scoring, recordation, communication, transmission, complaint, and fee processing procedures).

1.15 Regular and Ad Hoc Reports

The vendor will be required to provide IRS with preparer data via standardized and ad-hoc reports (to be determined by IRS), downloads, and/or extracts on pre-determined, periodic and on a “as needed” basis. Report related interfaces must be available 14 days before test implementation.

1.16 Ownership

IRS will own all test questions, test versions, test materials, test results and any additional data that is collected from the test takers. At the IRS’s discretion the vendor will be required to transfer any or all information to IRS. In addition, should the vendor discontinue in this capacity, it will be required to transfer all data to the IRS or a new vendor designated by the IRS.

2.0 Fingerprinting Requirement

The Testing/Fingerprinting Vendor will be responsible for electronically capturing fingerprint data from first-time test takers and transmitting the data to the Federal Bureau of Investigation (FBI) using an FBI approved channeler. At the option of IRS the vendor will also be responsible for fingerprinting Certified Acceptance Agents, EFIN applicants and others. For those preparers who may not be required to test, or who wish to use a vendor other than the Testing/Fingerprinting vendor for fingerprinting, a separate Fingerprinting Vendor may be also be utilized. Preparers will have the option to fulfill the fingerprinting requirement at either vendor.

Both vendors will ensure that FBI fingerprint results are sent electronically in a format and into the IRS system(s) as designated by the IRS through the FBI approved channeler. All electronic information regarding fingerprint results received by the IRS from a vendor will be provided in XML format. The XML schema will be defined in cooperation with the IRS. If the fingerprint submission(s) by the vendor is unclassifiable by the FBI, the IRS will receive an FBI name check result. The name check result will be delivered in the same format and into the same IRS system(s) as the classifiable fingerprint results.

IRS will sort the FBI results and notify the Registration Vendor and the applicant of the adjudication results. Attachment # 4 details the Fingerprinting Vendor process flow.

Vendor(s) will be responsible for the following fingerprinting-related requirements:

2.1 Account Management

1. Electronically capture fingerprint data, and transmit to the FBI using an FBI approved channeler.

2. Ensure that FBI fingerprint results are sent electronically in a format and into the IRS system(s) designated by the IRS adjudication service provider through the channeler. All electronic information regarding fingerprint results received by the IRS from a vendor will be provided in XML format. The XML scheme will be defined in cooperation with the IRS.

3. Ensure a sufficient chain of custody for all fingerprint submissions.

4. Be responsible for all costs related to this process, including but not limited to FBI charges, at no cost to the Government. The vendor will not be reimbursed by the Federal Government for fees, costs, or any other charges or expenses.

5. Develop and maintain the infrastructure necessary to capture, forward and maintain fingerprint data in accordance with all applicable privacy and data management standards.

6. Maintain fingerprints and applicable data indefinitely, or until transferred to the IRS or a new vendor as designated by the IRS.

2.2 Ownership

1. Acknowledge that IRS will own the fingerprint records, fingerprint results and any additional data that is collected from the preparers or received from the FBI or the FBI channeler.

2. Acknowledge that, at the discretion of IRS, the vendor will be required to transfer any or all information to IRS. Should the vendor discontinue in this capacity, it will be required to transfer all data to the IRS or a new vendor designated by the IRS.

2.3 System Interface

1. Electronically secure and transmit fingerprints, secure and provide personal data as needed to the IRS, using a secure system that interfaces with IRS data systems. Personal data needed by the IRS to properly authenticate applicants may include full name, date of birth, Social Security Number, etc.

2. Provide for IRS access to the applicable fingerprinting vendor’s system to review and evaluate fingerprint and other data in real time.

3. Execute the Federally mandated Non-Disclosure, Interconnection Security Agreement, and Memorandum of Understanding with the IRS as a condition of establishing the interface.

4. The Testing/Fingerprinting Vendor’s interface must meet Capability Maturity Model Integration (CMMI) Level 2 or above.

2.4 Administration

Vendor(s) who fingerprint will be responsible for the following administration activities:

5. Commence fingerprinting on or before six months of contract award.

6. Offer fingerprinting year round. The precise number of tax return preparers is not known. However the IRS estimates that there are between 9,000,000 and 1.2 million return preparers. Please note that not all of these return preparers will require fingerprinting. For additional information, please refer to the IRS Return Preparer Report (dated December 2009) at http://www.irs.gov/pub/irs-pdf/p4832.pdf.

7. Fingerprint nationally and internationally (e.g., Canada, Mexico, Europe, Asia) ensuring that the number and locations of fingerprinting venues enable sufficient access, as approved by IRS. Locations off fingerprinting venues must sufficiently enable access and maintain adequate coverage within each state, district, territory, and foreign country, as approved by IRS. It may be necessary to add temporary locations to ensure access is available (within in a reasonable traveling distance), and in larger states and foreign countries.

8. Use secure methods with strict security guidelines, including applicant authentication and other established measures to protect individual integrity. Personal data needed by the IRS to properly authenticate applicants may include full name, date of birth, Social Security Number, etc,.

9. Host IRS site visits to ensure compliance. The vendor must implement all IRS recommendations for security within a reasonable amount of time after the site visit.

10. Provide a professional setting. Factors such as room capacity, environmental factors, equipment, parking, and site accessibility will be evaluated. The applicable fingerprinting vendor(s) should ensure that the IRS is accommodated when conducting periodic audits of the fingerprinting process.

11. Ensure facilities provide reasonable accommodations for fingerprinting applicants with disabilities in compliance with applicable law, including the Rehabilitation Act of 1973 and the Americans with Disabilities Act.

12. Comply with authentication requirements as outlined in OMB Memorandum M-04-04, National Institute of Standards and Technology (NIST) Special Publication (SP) 800-63, and the most current NIST SP 800-53 (requires that FISMA-governed systems follow SP 800-63 guidance for authentication).

13. Process user fee payments. IRS user fee payments (necessary to cover IRS fees) will be collected by the applicable fingerprinting vendor(s) and remitted to IRS for each fingerprint taken. The vendor(s) will be responsible for any insufficient fund issues.

2.5 IRS Employee/TIGTA Access

IRS and Treasury Inspector General for Tax Administration (TIGTA) will have 50 tokens for remote access to the complete fingerprinting system, with the ability to increase as needed. The IRS has not defined authorization levels at this time.

2.6 Customer Service

1. Develop a service delivery program that ensures candidates can address questions related to logistics and other fingerprinting related issues. A link to the applicable fingerprinting vendor(s) webpage will be included on the IRS internet webpage.

2. Make customer services (service delivery program) available to preparers at least 14 days prior to fingerprinting system availability.

3. Include in the service delivery program, at a minimum, the staffing of a toll-free call center to include access for deaf and hearing-impaired individuals, and the development of a web site that includes on-line instructions/guidance regarding fingerprinting requirements, documentation needed, etc, for all.

4. Ensure service delivery is responsive to candidate needs, minimize wait/hold times, ensure reasonable coverage in all time zones, and consistently provide candidates with accurate and complete information.

5. Provide call center operators who respond accurately to fingerprinting inquiries and are trained on the specifics of the process.

6. Develop and make available to IRS employees, internal processes and procedures for use by vendor Customer Service Representatives to ensure quality and consistency of service delivery.

7. Develop a comprehensive Quality Assurance Plan that includes monitoring of calls, quality standards and review of all processes included in fingerprinting.

8. Enable remote access to call monitoring and all review functions by IRS employees.

2.7 508 Compliance

Vendor will ensure all communication is 508 compliant. IRS certification will be required within 6 months of award of contract. Please refer to Section 508 later in this document for additional information.

2.8 Quality Control

The Fingerprinting Vendor(s) will provide the following quality control capabilities:

1. Establish a comprehensive and secure applicant authentication process to ensure proper identification is solicited, maintained, and associated with appropriate fingerprint recordation. The authentication process must be established for everyone who is fingerprinted. IRS will evaluate and approve the process.

2. For return preparers without SSNs, additional identity proofing and verification of information such as foreign addresses, religious certification for SSN conscientious objectors, etc. may be required.

3. Possess the knowledge and capability (including equipment and procedures) to ensure a high quality of fingerprint images.

4. At the discretion of the IRS, obtain a second set of fingerprints in the event that the initial submission was unclassifiable by the FBI.

5. Develop a comprehensive Quality Assurance Plan for all processes related to fingerprinting (i.e., acquisition, administration, recordation, transmission, communication, and customer service).

2.9 Regular and Ad Hoc Reports

Provide IRS with preparer data via standardized and ad-hoc reports, downloads, and/or extracts at IRS request.

Note: All costs related to processing the fingerprint information mentioned above should be calculated separately from all other costs. It will be at the IRS’s option as to whether all candidates will be fingerprinted.

3.0 Qualification of Contractor Personnel

Vendor will validate the following personnel requirements:

1. Possession of experience in technical and project management expertise needed to successfully carry out the scope of work proposed;

2.

Experience, expertise and educational background of staff members who will work on the project are sufficient to successfully accomplish the work they will perform;

3. Qualifications of staff members working on the project is sufficient to successfully carry out the work which they will perform;

4. Potential subcontractor staff members possess all of the above

Qualifications;

5. All products/services of other parties (if a partnership is needed) meet the above qualifications; and

6. The approximate time each staff member will spend on the project.

4.0 Managerial and Administrative Considerations

Vendor will provide/substantiate the following:

1. A timeline detailing the specific dates for completion and delivery of items specified in the proposal. Timeline must be realistic for carrying out the project;

2. An effective, efficient, and achievable quality assurance plan;

3. A high-value product, given the services/products described and the cost estimates provided by the vendor;

4. The product offered is of a high quality product adhering to market value prices;

5. An outline for an effective, efficient, and achievable plan to transmit required data in electronic format; and

6. An outline for a sustainable database plan that includes all required data and reports.

5.0 Business Requirements

The following Information applies to each Vendor for each and contract awarded. To ensure conformity with security standards required to safeguard sensitive information about or held by the government, the vendor must address compliance with all of the requirements as follows:

5.1 Confidentiality of Information

The Testing/Fingerprinting Vendor must ensure the confidentiality of all information received, obtained or generated by the vendor in the course of operating this program. Requirements for safeguarding tax information are set forth in the IRS Acquisition Procedures (IRSAP 1052.224) and in the Federal Acquisition Regulation Clauses (FAR) 52.224-1 and 52.224-2. Requirements for safeguarding non-tax information must match the requirements applicable to federal agencies as stated in the Privacy Act of 1974 (5 U.S.C. § 552a).

5.4 Review of Forms

Any forms, notices, screen shots, etc. designed by the vendor for use by the applicants must be approved by the IRS before use in order to ensure compliance with applicable laws.

5.5 Safeguards

The vendor is required to carry out a program of inspection to safeguard against threats and hazards to the security, integrity, and confidentiality of Government data. The vendor shall afford the Government access to their facilities, installations, technical capabilities, operations, documentation, records, and databases. If new or unanticipated threats or hazards are discovered by either the Government or the vendor, or if existing safeguards have ceased to function, the discoverer shall immediately bring the situation to the attention of the other party. Each officer or employee of the vendor or sub vendor at any tier to whom "Official Use Only" information may be made available or disclosed shall be notified in writing by the vendor that "Official Use Only" information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such "Official Use Only" information, by any means, for a purpose or to an extent unauthorized herein, may subject the offender to criminal sanctions imposed by 18 U.S.C. Sections 641 and 3571. Section 641 of 18 U.S.C. provides, in pertinent part, that whoever knowingly converts to his use or the use of another, or without authority sells, conveys, or disposes of any record of the United States or whoever receives the same with the intent to convert it to his or her use or gain, knowing it to have been converted, shall be guilty of a crime punishable by a fine or imprisoned up to ten years or both.

5.6 Disaster Recovery Plan

The Testing/Fingerprinting Vendor and Fingerprinting Vendor should have detailed disaster recovery plans.

5.7 Ownership of Data

Any data collected by the vendor(s) will become property of the IRS. FAR 52.227-14, Rights in Data, further govern ownership.

5.8 Protection Against Misconduct

In performing the services described herein, the Vendor agrees to comply with, and assume responsibility for, compliance by his/her employees with the following requirements:

1. All work shall be performed under the supervision of the Vendor or the Vendor's responsible employees.

2. Any confidential tax information made available in any format shall be used only for the purpose of carrying out the provisions of this contract. Confidential tax information includes all identifying taxpayer information and return or return information as defined by section 6103(b) of the Internal Revenue Code. This confidential tax information shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Inspection by or disclosure to anyone other than an officer or employee of the Vendor shall require prior written approval of the Internal Revenue Service. Requests to make such inspections or disclosures should be addressed to the IRS Contracting Officer.

3. All confidential tax information shall be accounted for upon receipt and properly stored before, during, and after processing. In addition, all related output shall be given the same level of protection as required for the source material.

4. The Vendor certifies that the data processed during the performance of this contract shall be completely purged from all data storage components of his/her computer facility, and no output will be retained by the Vendor at the time the IRS work is completed. If immediate purging of all data storage components is not possible, the Vendor certifies that any IRS data remaining in any storage component will be safeguarded to prevent unauthorized inspections or disclosures.

5. Any spoilage or any intermediate hard copy printout, which may result during the processing of IRS data, shall be given to the IRS Contracting Officer or his/her designee. When this is not possible, the Vendor will be responsible for the destruction of the spoilage or any intermediate hard copy printouts, and shall provide the IRS Contracting Officer or his/her designee with a statement containing the date of destruction, description of material destroyed, and the method used.

5.9 Subcontractors

No work involving information furnished under this contract will be subcontracted without the specific written approval of the IRS Contracting Officer. Subcontractors are held to the same level of confidentiality and privacy requirements inclusive of special contract requirements as is the Testing/Fingerprinting Vendor. This includes subcontractors solicited to assist with development of potential test questions as well as channelers used to support the fingerprinting process.

5.10 Controlled Access Protections

All computer systems processing, storing and transmitting tax data must meet or exceed controlled access protections (CAP) wherein the operating security features of the system has the following minimum requirements: an approved security policy, accountability, assurance and documentation. All security features must be available (object reuse, audit trails, identification/authentication and discretionary access control) and activated to protect against unauthorized access, use, disclosure, disruption, modification, or destruction of federal tax information. All computer systems are required to be compliant with the Federal Information Security Management Act of 2002 (FISMA) pursuant to Section 3544(a) (1) (A) (ii). In this regard, the most current NIST standards and guidance must be implemented and adhered to by the Vendor.

5.11 Unauthorized Inspection/Disclosure

Should a Vendor or one of his/her officer(s) or employees make any unauthorized inspection(s) or disclosure(s) of confidential tax information, the terms of the termination for cause clause (FAR 52.212-4(m)), incorporated herein by reference, may be invoked, and the Vendor will be considered to be in breach of this contract.

6.0 Disclosure of Information

6.1 Information Security / Federal Information Security Management Act (FISMA)

Pursuant to the Federal Information Security Management Act (FISMA), Title III of the E-Government Act of 2002, P.L. 107-347, the vendor shall provide minimum security controls required to protect Federal information and information systems. The term ‘information security’ means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction in order to provide confidentially, integrity and availability.

As determined by the IRS the vendor shall provide information security protections commensurate with the risk and magnitude of the harm resulting from the unauthorized access, use, disclosure, disruption, modification, or destruction of information collected or maintained by or on behalf of the agency; or information systems used or operated by an agency or by a vendor or sub vendor of an agency. This applies to individuals and organizations having contractual arrangements with the IRS, including employees, vendors, vendors, and outsourcing providers, which use or operate information technology systems containing IRS data. IRS information system operated by the Agency or by a Contractor at the direction of the IRS are defined as a General Support System (GSS), Major or Minor Application with security categorization impact level of low, moderate or high according to the results of a FIPS Standard 199 analysis.

6.2 Treasury / IRS Policies for Information Technology (IT) Security

The vendor shall comply with Department of Treasury Security Manual TDP 15-71 and Internal Revenue Manual 10.8.1 Information Technology Security Policy and Guidance. The vendor shall comply with IRS Internal Revenue Manuals (IRM), Law Enforcement Manuals (LEM) and successor documents when developing or administering IRS information and information systems.

The vendor shall comply with the Taxpayer Browsing Protection Act of 1997 - Unauthorized Access (UNAX), the Act amends the Internal Revenue Code 6103 of 1986 to prevent the unauthorized inspection of taxpayer returns or tax return information.

6.3 Certification and Accreditation Process

Vendors systems that collect, maintain, contain or use agency information or an information system on behalf of the agency (a General Support System (GSS), Major or Minor Application with a FIPS 199 security categorization) must ensure annual reviews and continued security certification and accreditation. Some of the key elements of this process are risk assessments, security plans, security control testing, a Privacy Impact Assessment (PIA), contingency planning, and technical system certification and business owner system accreditation. All systems that complete this process will, at a minimum, meet NIST guidance, as required by the IRS. The required NIST Certification and Accreditation process is documented in NIST SP800 37 Certification and Accreditation Process overview.

6.4 Federal Desktop Core Configuration

The provider of information technology shall certify applications are fully functional and operate correctly as intended on systems using the Federal

Desktop Core Configuration (FDCC). This includes Internet Explorer 7 configured to operate on Windows http://csrc.nist.gov/itsec/guidance_WinXP.html

Windows XP and Vista (in Protected Mode on…