Final RFP with Debit Cards - Department of Taxation and Finance

[pic] January 13, 2010 Table of Contents Preface
Key Events Timetable
Section I - Introduction
Section II - Performance Standards, Liquidated Damages and Reimbursements
Section III - Administrative Conditions and Proposal Responses Requirement
Section IV - Qualifying Requirements
Section V - Evaluation Process
Section VI - Functional Requirements
Section VII - Program Development and Support Requirements
Section VIII - Implementation Requirements
Section IX - Cash Management Requirements
Section X - Financial Requirements
Section XI - Contract Conditions EXHIBITS
. Exhibit A - Volumes
. Exhibit B - File Formats
. Exhibit C - Image Indexing APPENDICES
. Appendix A Standard Contract Clauses for all New York State Contracts
. Appendix B General Specifications (Module 2 Only)
. Appendix C Minority and Women Owned Business
. Appendix D Bid Administration Documents
. D-1 Notification of Intent to Bid . D-2 Bidder's Attestation Form . D-3 Non Collusive Bidding Certification . D-4 MacBride Fair Employment Principles Form . D-5 Contractor Certification (ST-220) . D-6 Procurement Lobbying Compliance Form . D-7 Public Officers Law . Appendix E Bid Protest Policy . Appendix F Funds Transfer Agreement . Appendix G Change Procedure . Appendix H Agreement to Adhere to the Secrecy Provisions of the Tax
Law and the Internal Revenue Code (DTF-202) . Appendix I Acknowledgement of Confidentiality of Internal Revenue
Service Tax Return Information . Appendix J Undertaking for Bank Deposits and Assignment of Securities . Appendix K Authorized User Set Up Form (Module 2 Only) PREFACE Bid Administration Please refer to Section III, Administrative Conditions and Proposal
Response Requirements, of this RFP for information concerning the
procurement process. Additional questions or concerns regarding this RFP
should be addressed to (e-mail preferred): | Catherine Golden, Assistant |
|Director |
| Procurement Services Unit |
|NYS Department of Taxation and |
|Finance |
|Building 9, Room 234 |
| Albany, NY 12227 |
|(518) 457-0954 |
|(518) 435-8413 (fax) |
|bfs_contracts@tax.state.ny.us |
Designated Contacts All inquiries concerning this solicitation should be addressed to the
following designated contacts: Catherine Golden (518) 457-0954 bfs_contracts@tax.state.ny.us Karen Brino (518) 457-0954 bfs_contracts@tax.state.ny.us Dorothy Lechmanski (518) 485-7875
bfs_contracts@tax.state.ny.us All Vendor Questions for Module 1 and Module 2 due by the date specified in
the Key Events Timetable, must clearly identify the section number, page
number and Module of the RFP and are to be submitted to: bfs_contracts@tax.state.ny.us Contacting individuals other than the designated contacts listed above may
result in the disqualification of the bidder's proposal - please refer to
the Procurement Lobbying Act (Chapter 1 of the Laws of 2005, as amended by
Chapter 596 of the Laws of 2005) and the Department guidelines posted on
the Department's procurement website at:
http://www.nystax.gov/procurement. Additional information can be found on
the Office of General Services web site at:
http://www.ogs.state.ny.us/aboutOgs/regulations/defaultAdvisoryCouncil.html
Private Delivery Services: Mail deliveries requiring a signature of receipt should be addressed to the
Department's campus address, but the delivery service should be instructed
to deliver the bid documents to the following address: 90 Cohoes Avenue
Green Island, New York 12183. Key Events Timetable Issuance of RFP 1/13/2010 Deadline for filing the "Offerer Affirmation and Understanding of,
and Compliance with, Procurement Lobbying Guidelines"
(Appendix D-6, see also Section III C6)
1/21/2010 Deadline for Submission of Questions 1/21/2010 (by
4:00 PM EST) Department Response to Bidder Questions
2/02/2010 Deadline for Submission of Follow-up Questions
2/9/2010 Department Response to Bidder Follow-up Questions 2/16/2010 Deadline for Filing the "Notification of
Intent to Bid" (Appendix D-1)
2/22/2010 (by 4:00 PM EST) Proposals Due 3/22/2010 (by
4:00 PM EST) Notification of Intent to Award
5/17/2010 Deadline for Contract Signature 6/16/2010 Department User Acceptance Testing Begins 9/3/2010 Certification Date 12/3/2010 Implementation Date 1/3/2011
SECTION I - INTRODUCTION A. Purpose This Request for Proposal (RFP) is being issued for two (2) separate
modules that will result in the award of two (2) separate contracts. The
New York State Department of Taxation and Finance (the Department or DTF)
is seeking an agency specific contract for the issuance and payment of
Personal Income Tax (PIT) refunds, under Module 1. The New York State
Office of General Services (OGS) is seeking a statewide agreement for use
by all agencies and other authorized users for debit card services under
Module 2. Bidders are invited to submit bids for Module 1, Module 2 or
both Modules. The New York State Department of Taxation and Finance will
serve as the anchor agency for this RFP and as such will receive all bidder
submissions. Bidder questions regarding this proposal should be directed
to the designated contacts identified in the Preface. Module 1: The New York State Department of Taxation and Finance (the
Department) is requesting proposals from state or federally chartered
commercial banks with at least one branch in New York State or document
processors subcontracting with such a commercial bank to provide banking
services associated with the issuance and payment of Personal Income Tax
(PIT) refunds (the Program) through paper drafts and direct deposits. Module 2: The New York State Office of General Services (OGS) is
requesting proposals from state or federally chartered commercial banks
with at least one branch in New York State or document processors
subcontracting with such a commercial bank to provide banking services
associated with debit card services. These services may include single use
cards, reloadable debit cards for disbursement of funds from an Authorized
User to an individual(s) or entity, or stored value cards for instant on-
site payments to individuals or entities and any equipment that may be
necessary to activate these cards. Other examples where debit cards may be
necessary are for payment to government employees (e.g. payroll, travel
reimbursement, retirement benefits, etc.); this listing is not all-
inclusive. B. Program Overview Module 1: The Department issues PIT refunds each year to taxpayers that
are overpaid on their PIT liabilities. Currently, the refunds may be
issued as paper drafts or as an ACH direct deposit. (See tables in Exhibit
A - volumes.) However, the Department is seeking to begin issuing Debit
Cards, as of the 2011 processing year (January 2011). Two reasons cause
the Department to move in this direction - the cost of issuing and
processing paper checks and the need to provide alternative refund access
to persons without bank accounts. The Department intends to offer the
Debit Card option in lieu of check processing to minimize the number of
paper checks issued annually. In 2008, the Department issued approximately 7.2 million PIT refunds,
valued at $7.5 billion. This included approximately 4 million paper drafts
and approximately 3.2 million ACH direct deposits. The issuance pattern
of refunds is based upon an April 15th filing date and the Department's
need to issue refunds within 45 days of the due date to minimize refunds
paid with interest. The Department's direct deposit program has shown a steady increase over
the last three years: | |Direct |Percentage of |
| |Deposits|all Refunds |
| |Initiate|Issued |
| |d | |
|2006|2,455,13|37% |
| |0 | |
|2007|2,833,43|40% |
| |6 | |
|2008|3,201,99|44% |
| |3 | |
The Department anticipates the volume of checks to decline significantly
due to the intent of the Department to maximize use of the direct deposit
and debit card services. Miscellaneous Module 1 Services The following are 2008 processing year annual volumes for
miscellaneous services related to paper drafts: Item Volume Online Cancel Payment Requests 23,721 Forgery Claims 2,502 Exchange Account
363 Module 2: OGS is seeking debit card services for the following areas: . Single load Debit Card . Reloadable Debit Card . Stored Value Debit Card Similar to DTF, various agencies make payments to fund recipients utilizing
direct deposit or paper checks as one-time or recurring payments. While it
is envisioned that many agencies will implement Module 2 debi