Department of the Treasury, Departmental Offices/Procurement Services Division (DO/PSD), Procurement Services Division (PSD), 1310 G Street, N.W., Suite 400 East, Washington, DC, 20220

70 -- DEVELOPMENT, IMPLEMENTATION, AND MAINTENANCE FOR A RETIREMENT SAVINGS ACCOUNT PROGRAM. SOL Reference-Number-A-00420 DUE 052200 POC Harry Shank, Contracting Officer, Phone 202-622-9392, Fax 202-622-2343, Email harry.shank@do.treas.gov -- Norman Wakefield, Contract Specialist, Phone 202-622-9391, Fax 202-622-2343, Email WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=R&ProjID=Reference-Number-A-00420&LocID=1768. E-MAIL: Harry Shank, harry.shank@do.treas.gov. Request for Information. The Department of the Treasury is soliciting information and comments for the Development, Implementation, and Maintenance Efforts for a Retirement Savings Account Program. Introduction: The Administration's 2001 Budget includes a proposed Retirement Savings Account (RSA) program that would provide nonrefundable tax credits to qualifying employers and financial institutions making matching contributions to individual RSAs held by the employer 401(k)-type plans or financial institutions. A description of the RSA proposal appears in the General Explanations of the Administration's Fiscal Year 2001 Revenue Proposals (pp. 49-51) available at http://www.treas.gov/taxpolicy/library/grnbk00.pdf The Department of the Treasury is soliciting from potential vendors information and comments concerning the implementation and operation of the RSA program. Areas of interest include the time, costs and design features of a verification system, and the costs and staffing requirements of a service organization. The service organization would manage the verification system, and provide information to employers and financial institutions, and individuals. Individual eligibility for RSA matching contributions would be determined based on Adjusted Gross Income (AGI) reported on prior year individual income tax returns. Match rates could range from 20% to 100% of an individual's contribution, depending on the individual's AGI. To receive a matching contribution, the eligible individual would make a contribution to an employer 401(k)-type retirement plan or an RSA at a qualifying financial institution. The employer or financial institution would make the appropriate RSA matching contribution and become entitled to an income tax credit for the full amount of the match provided. A nominal additional tax credit may be provided to financial institutions to partially compensate for account start-up costs. Outline of Verification System: An eligibility verification system would contain information on approximately 120 million taxpayers, including 36 million eligible taxpayers in the initial year and approximately 76 million eligible taxpayers when fully phased in. The system would support regular usage by up to 6 million employers and private financial institutions. Each organization may have multiple users. The system would serve as the source of information on the program. The verification system would maintain taxpayer data, as well as employer and financial institution usage data. As tax returns are processed, the system would be updated with information on taxpayers for each year and for any adjusted or amended income tax return. The system would determine individual eligibility based on AGI. The system would generate a mailing list to support sending letters to all eligible individuals. Eligible individuals wishing to participate would make a salary reduction contribution to an employer plan or contribute to an account, and ask the employer or financial institution to verify eligibility and match rate. The system would verify eligibility status and the RSA match rate for each queried individual by approval or denial of match rates that have been self-reported by individuals to the employer or financial institution. The verification process used by employers and financial institutions would be readily accessible and simple to use. Each employer and financial institution would report the establishment of RSAs, i.e., contributions received from taxpayers and RSA matching amounts deposited. As contributions to RSAs are made, the system would maintain real time data on remaining available RSA match and tax credit amounts for each individual by tax year, based on reports from employers and financial institutions. The system would also update eligibility for an RSA match as an individual's AGI is revised. The system would archive all information that has been revised and record change dates. Employers and financial institutions would also report account transfers. Records of eligibility and contributions need to be maintained by the verification system for a number of years. RSA contributions related to each tax year could be made for a period that might extend over more than one calendar year. Thus, individuals may be able to contribute for two different tax years at the same time. We also anticipate that amended and adjusted income tax returns could result in allowable contributions after expiration of the annual deadline. Amended or adjusted individual tax returns could cause a reduction in or revocation of a match. In such cases, employers or financial institutions would reduce the account balance by an amount appropriate to reflect the reduced or revoked matching contributions and interest thereon. The reduced or revoked match amount could be transferred to Treasury from the participant's account, or the employer or financial institution could remove the amount from the participant's account, retain that amount and adjust future allowable RSA credits by that amount. The system would provide qualified employers and financial institutions with a web interface to determine individual eligibility. General information on the RSA program would be available on a website for employers, financial institutions and individuals. The system would provide reporting to facilitate compliance with Federal tax laws. The system would include the best available security measures to ensure protection of confidential taxpayer information. System access would be limited to approved employers and financial institutions. A personal identification number (PIN) or other security device would be provided to each individual, who would provide this information to an employer or financial institution solely to verify his or her eligibility for the program and applicable matching rate. Although individuals would not have access to the verification system, the service organization would respond to employer, financial institution, and individual inquiries. The system would not provide individual eligibility and match rate data directly, but rather would only approve or deny match rates that have been self-reported by individual taxpayers to the employer or financial institution. Thus, the verification process would consist of an employer or financial institution's entering into the system an individual's name, SSN, self-reported match rate and self-reported PIN or other security device, and receiving an approval or denial. Key Areas of Interest to Treasury: Treasury expects potential vendors to provide information and comments based on this RFI and the description of the RSA proposal referenced above. Treasury is primarily interested in discussing your strategy and vision as to how the RSA program would be implemented, including the technology, government interfaces, verification procedures, and security measures necessary for system operation. Treasury is also interested in defining the requirements for a service organization that would be responsible for system administration and maintenance, as well as providing customer service to employers and financial institutions (and, on a limited basis, to individuals). It would be especially useful for respondents to provide information related to their experiences with projects of this size and scope, including similar large data management and customer service operations. Preliminary estimates of the costs to develop the verification system and establish a service organization (i.e., the start-up costs), with a discussion of key assumptions, would be useful for planning purposes. In addition, preliminary estimates of annual maintenance and operations costs for the system and the service organization would be helpful to Treasury. Firms wishing to respond to this RFI should submit a written response including information on experience with projects of the size and scope described to Department of the Treasury, Procurement Services Division, ATTN: Mr. Harry Shank, III, 1500 Pennsylvania Avenue, NW, 1310 G, Suite 400E, Washington, DC 20220. Phone (202) 622-9392. Responses are due not later than 5:00 PM Eastern Standard Time on May 22, 2000. Collect calls will not be accepted. Treasury may schedule oral presentations with respondents whose written submissions demonstrate experience relevant to the RSA program. This Request for Information is for information and planning purposes only, does not constitute a solicitation, and shall not be construed as a commitment by the Government. Posted 04/20/00 (D-SN447298). (0111)

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