Department of the Treasury, Internal Revenue Service, 6009 Oxon Hill Road, Suite 700, ATTN: M:P, Oxon Hill, MD 20745

70 -- FOREIGN TAX CREDIT SOFTWARE SOL cbd021299 POC Derrick Heard, 202-283-1171, Margaret M. Hunt, 202-283-1296 This is a sources sought notice for international tax compliance and planning software. After a review of capability statements provided in response to this notice, the Internal Revenue Service (IRS) may issue a synopsis/solicitation for commercial items prepared in accordance with the format in the Federal Acquisition Regulation (FAR) Subpart 12.6, as supplemented with additional information. The Internal Revenue Service (IRS) requires approximately 80 Windows NT International Tax Package software licenses with training, support and maintenance. The required software products, support and maintenance are to be commercially available software packages that provide the following: 1. Trial Balance account function for import and file interface supports for text and spreadsheet file transfers of financial information; 2. Controlled Foreign Corporation (CFC) compliance system to generate Form 5471 and compile the following data: a. Foreign Earnings and Profits; b. Subpart F Income detail; c. Look-Thru computational detail to determine the appropriate source basket for income received from related party rents, royalties, interest, Subpart F and dividend payments; d. Historical Earnings and Profits by pool year, layer year, Section 959, and basket; and e. Section 902, Section 960 credit computations. 3. Foreign Tax Credit (FTC) comprehensive automation system to generate Form 1118 and compile the following data: a. Income Sourcing and Expense allocations and apportionment based on consolidated and separate taxable income by basket; b. Research and development expense apportionment; c. Interest expense apportionment and netting; d. Section 904 baskets, sub-baskets, and loss tracking detail; e. Section 863(b) and Section 863 income tracking detail; f. Section 927(e)(1) limitation detail; g. AMT FTC processing detail; h. NOL tracking detail; i. Foreign tax credit tracking detail; and j. High-tax kickout determination detail. 4. Foreign Sales Corporation (FSC) compliance system to prepare Form 1120-FSC and 1120-FSC Schedule P. The IRS requires a perpetual Servicewide license agreement for the following software products and training: 1. Description: 1997 Calendar year tax compliance and planning software for international tax compliance and administration; 2. Description: Optional 1998 Calendar year tax compliance and planning software for international tax compliance and administration; 3. Description: Optional 1999 Calendar year tax compliance and planning software for international tax compliance and administration; 4. Description: Optional 2000 Calendar year tax compliance and planning software for international tax compliance and administration; and 5. Description: Four four-day training classes for groups of 20 participants. The contractor shall provide perpetual software licenses for each tax period, daily eight-hour toll-free telephone support and maintenance for all products. All products shall be consistent/compatible with a Windows NT 4.0 operating system and designed to operate in the following minimum configuration: Pentium 90MHz processor, 1 GB hard disk, 32MB RAM, CD-ROM drive, window print drivers. The software, installation instructions and training materials shall be delivered to the Office of the Assistant Commissioner, International, for national distribution. Support/maintenance shall consist of the correction of errors and provision of all releases, versions, changes, modifications, improvements and updates to the modified software, unmodified commercial software or applicable documentation introduced during the life of the contract and exercised option periods. All software proposed or developed must be Year 2000 compliant. Vendor must be minimally certified at a Capability Maturity Model (CMM) Level II to support any software modifications requested by the Service. The contract term shall consist of a base period with options, starting with delivery of a 1997 calendar tax year program. The base period support shall continue for a 12-month period. Optional calendar tax year programs shall continue thebase period support for an additional 12-month period. The government will accept each calendar tax year program following a successful ten-day pre-award field test. Interested parties must submit a capability statement in response to this notice. The capability statement must include a description of how the vendor's product can satisfy the Government's requirements specified in this notice. The capability statement must also include the following information: 1. list and prices of the software products to be provided; and 2. acknowledgement of each requirement listed above, or summary of exceptions taken to specific requirements with alternative proposals for each exception for IRS approval. Vendors must submit the capability statement (an original and one copy) not later than March 4, 1999 to the following address: Internal Revenue Service, A/C Procurement, 6009 Oxon Hill Road, Room 700, Oxon Hill, Maryland 20745 Attn: Margaret Hunt, M: P: I: E. Any questions regarding this notice should be directed to Derrick Heard on (202)283-1171 or Margaret Hunt on (202) 283-1296. Posted 02/12/99 (W-SN298014). (0043)

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