DRS RFP 26-03 IRS E-File Tax Reporting Support

The Washington State Department of Retirement Systems is requesting proposals for IRS E-File Tax Reporting Support services under RFP 26-03, with proposals due July 31, 2026 at 3:00 p.m. Pacific Daylight Time. DRS requires a vendor to bridge a technical gap during 2027 while the state prepares for migration to the IRS's Information Returns Intake System (IRIS) in 2028 — DRS's current system output cannot accommodate IRIS's required Application to Application (A2A) and Extensible Markup Language (XML) formats for bulk filing large volumes of information returns.

Minimum qualifications include current IRS authorization as an e-file provider, at least five years of experience as an authorized provider, bulk filing capability, and Washington State business licensing. The scope requires the contractor to receive, validate, and electronically submit DRS and Record Keeper information return files (approximately 300,000 1099-R records from DRS and 30,000 from Record Keeper in January filings, plus 75 and 45 1042-S records respectively, with corrections for the prior three years in June filings). The contractor must achieve 100% file submission by IRS deadlines, 100% IRS acknowledgment delivery within one business day, 99.5% system uptime during filing season, and zero unauthorized data changes.

The contract period runs from execution through August 30, 2027, with DRS retaining the right to extend for up to one additional year at its discretion. DRS will announce the Apparent Successful Bidder by August 20, 2026, and targets contract execution for September 3, 2026.

Evaluation is on a 100-point scale: Technical Proposal (40 points), Qualifications/Training/Experience (35 points), Fee Proposal at lowest cost (15 points), Executive Order 18-03 compliance (3 points), and Certified Veteran or Small Business status (7 points). The contractor must carry commercial general liability ($2 million per occurrence), professional liability and technology errors and omissions ($5 million per claim), cyber liability ($5 million per claim), crime insurance ($1 million per claim), and workers' compensation insurance. Cost proposals must use an all-inclusive fee structure covering implementation, annual operating costs, and per-file or per-submission fees; all revisions and corrections are included in the proposed fee with no additional charges permitted.