REQUEST FOR PROPOSAL RFP-RCU2012Q2/1
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1 GOVERNMENT OF THE TURKS AND CAICOS ISLANDS Government House Grand Turk Telephone: (649) Fax: (649) REQUEST FOR PROPOSAL RFP-RCU2012Q2/1 FOR THE PROVISION OF INFORMATION TECHNOLOGY SERVICES TO CUSTOMIZE SIGTAS FOR VALUE ADDED TAX (VAT) IMPLEMENTATION PREPARED BY: COMPUTER INFORMATION TECHNOLOGY UNIT (CITU) June 25, 2012
2 Table of Contents 1 Introduction Background and Project Description Objective and Scope of Engagement Bidder Responsibilities Terms and Conditions General Eligibility Format of Offers Amendment to RFP Evaluation Process Clarification of Proposal Preliminary Examination of Proposals Overall Evaluation Process Deadlines General Specification Submission Date Submission Deadline Overview of the Current System Current System Environment and Architecture Current Utilisation Overview of the Proposed System Proposed System Architecture Proposed Utilisation Functional Requirements Specifications Other Deliverables Implementation Plan Source Code Ownership Warranty period Licensing, Maintenance and Support Cost Development Team Pricing Acceptance Criteria Appendices
3 1 Introduction 1.1 Background and Project Description The Standard Integrated Government Tax Administration System (SIGTAS) is an integrated information system that enables governments to automate the administration of taxes and licences. This software was designed to meet the needs of developing countries. In particular SIGTAS was customised to meet the specific Turks and Caicos Island Government (TCIG) need for increasing control over state revenue. As stated in the Value Added Tax (VAT) Green Paper: The current TCIG indirect tax regime incorporates unnecessary inefficiencies and inequities that contribute to high cost of conducting business and deter investment, economic growth and development. As such, TCIG has embarked on a mission to implement VAT. The proposed tax measures are expected to raise 2.3% of the GDP Revenue. The proposed VAT should be seen as an opportunity to completely reform the existing tax regime. It is envisioned that it will simplify and improve the efficiency in the tax system thereby encouraging voluntary compliance amongst taxpayers. Information Technology services are now required to customise TCI-SIGTAS for the successful implementation of VAT. SIGTAS version was previously customised to meet the specific needs of the TCIG, hence the use of the term TCI- SIGTAS throughout this document. This engagement may or may not include upgrading the current version of TCI- SIGTAS operating with Oracle Forms 6i, and Oracle 10g Release 4 database. At the end of this exercise, a bidder will be selected to provide these services. 1.2 Objective and Scope of Engagement The objective of this RFP is to provide the TCIG with a proposal to customise and implement SIGTAS for VAT. The scope of the engagement is: 1. To confirm functional requirement specifications 2. To provide programming and unit testing 3. Quality Assurance Testing 4. To provide training support 5. To install the newly customised software 6. To provide post implementation support The following are not in the scope of the engagement: 1. Requirements Gathering, Analysis and Design 2. Training and training material 3. User Acceptance Testing 4. Business Process Reengineering (BPR), including the new Operational Procedure Diagrams for the VAT and instruction sheets 1.3 Bidder Responsibilities The Bidder is responsible for: Meeting the specific terms and conditions as well as requirements specifications of the RFP Being actively involved in the installation and support of the solution provided Providing after-sales service as required Being required to assume full responsibility for all products, services, and warranties offered in its RFP proposal whether or not the services are provided by the Bidder or its subcontractors or suppliers. Further, the TCIG will 2
4 consider the Bidder to be the sole point of contact with regard to contractual matters. The TCIG will require the selected Bidder to coordinate all aspects of the planning, installation and service coordination to the TCIG as part of the process. 2 Terms and Conditions 2.1 General This section provides information about the process and timetable for the submission of proposals and specifies the required format of proposals: 1. All submitted responses will be held in confidence and considered proprietary. The information contained in this document is proprietary to TCIG and no use of this document or the information contained within is to be made to anyone with the exception being where so required by law. 2. Sections set out the requirements to be met by the prospective bidder. 3. Please note that although the following reflects intent to purchase and install the specified services, it in no way commits the Purchaser, to any purchase. 2.2 Eligibility To establish eligibility all Bidders invited to bid must comply with the following criteria: 1. Bid response must include a response to all the requirements outlined in Sections 5.0, 6.0 and 7.0 of this RFP. 2. Inclusion (in the Bid) of a statement, signed by the Bidder or person(s) duly authorized to bind the bidder to the contract, indicating that the terms and conditions of purchase have been accepted. 3. Bidder must comply with local business regulatory requirements. 2.3 Format of Offers 1. All prices must be quoted in US Dollars including any applicable taxes or license fees etc. applicable. 2. All quotations must be valid for at least one hundred and twenty (120) days from the date of submission of the RFP. 3. Bidders must return a copy of the Terms and Conditions section (Section 2.0) of this RFP as part of their Response, with all pages signed by a duly authorized person, showing acceptance of all Terms and Conditions. Failure to comply will result in the Bid being deemed non-responsive. 4. Offers must be submitted in triplicate (one original and two copies), clearly marking each Original Bid and Copy of Bid as appropriate. In the event of any discrepancy between them, the original shall govern. 5. All proposals must contain a table of contents and conform to the following format: a. Tab 1. Letter of Transmittal The RFP proposals must be signed (original signature) by an official authorized to bind the Bidder to its provisions. The letter of transmittal shall include the name, address, and telephone number of the person to be contacted along with others who are authorized to represent the company in dealing with the RFP. The letter should also include an expression of the responder's understanding of the services desired and its ability, including CVs of resources and past working experience with SIGTAS, to meet the requirements of this RFP. b. Tab 2. Executive Summary An overview of the Bidder s solution. Include a description of all proposed services and additional service categories as required. 3
5 c. Tab 3. General Requirements Bidders acknowledgement of the terms and conditions of this RFP, sections d. Tab 4. Statement of Work - Bidder s response to Sections and Appendix A of this RFP. e. Tab 5. Additional Response Requirements Bidder s response for any alternate proposal or other information. f. Tab 6. Attachments Any attachments or other documentation being supplied by bidder. 2.4 Amendment to RFP 1. At any time prior to the deadline for submission of the proposal, the Purchaser may, for any reason, whether at its own initiative or in any response to a question raised by a prospective Bidder, modify the RFP by amendment. 2. Any amendments to the RFP will be notified in writing by fax or to all prospective bidders on the same day and will be binding on them. 3. In order to allow prospective bidders reasonable time in which to take an amendment into account in preparing their proposal, the Purchaser may, at its discretion, extend the deadline for the submission of proposals. 3 Evaluation Process This section describes the approach that the TCIG will adopt during the evaluation of the proposals and the level of input that the bidder will be expected to provide during this period. This section also identifies the evaluation timetable and describes the process for awarding a contract. 3.1 Clarification of Proposal To assist in the examination, evaluation and comparison of proposals, the Purchaser may, at its discretion, ask bidders to clarify their proposals. Request for Clarification and the response shall be sent by fax or . No change in the price or substance of the proposal will be sought, offered or permitted. All contact between the Purchaser and the Bidder during this period must be through their respective authorized representative(s) and the Bidder should ensure that appropriate staff is available to respond to any request for clarification or questions. All input provided by the Bidder during the evaluation will be at the Bidder s own cost. 3.2 Preliminary Examination of Proposals All offers that comply with instructions given in this document will be ranked according to whether each bid is substantially responsive to the Bidding Document (including any amendments thereto) Responsiveness to the RFP 1. A proposal is considered to be substantially responsive if it conforms to all the terms and conditions of the Bidding Document without any material deviations. The Purchaser s determination of the Bidding Document s responsiveness shall be based on the contents of the Bidding Document itself, including all eligibility requirements and all requirements of any mandatory specifications, without recourse to extrinsic evidence. 2. Prior to detailed evaluation, the Purchaser will determine the substantial responsiveness of each proposal to the conditions set out in this RFP. 3. Any proposal determined as substantially non-responsive will be rejected by the Purchaser and may not subsequently be made responsive by the Bidder by correction of the non-conformity. 4
6 3.3 Overall Evaluation Process The Bidders proposals shall be evaluated in two phases. A preliminary evaluation that shall entail an examination of the bid document to determine adherence to the eligibility requirements outlined in Section 2.2 of this document. Only bids which satisfy the eligibility requirements will be short-listed for detailed evaluation in the second phase. The bids that do not satisfy the eligibility requirements will be deemed as non-responsive and will be disqualified Detailed Evaluation In this phase of the selection process, the Purchaser shall compare and evaluate all substantially responsive, short-listed bids on the following basis: 1. The determination shall be based on the Bidder s fulfilment of all the mandatory requirements of the RFP. These are: a. Functional Requirements Specifications b. Methodology c. Pricing 2. Short-listed bids that do not match all of the mandatory requirements of the RFP shall be deemed nonresponsive and will be rejected by the Purchaser. Such bids may not subsequently be made responsive by the Bidder by correction of the non-conformity. 3. Short-listed bids will be examined to determine whether they are complete, free from any computational errors and whether the quotations are generally in order. 4. If the successful Bidder with the most cost-effective solution (that is, the bid that is substantially responsive and has the lowest overall price) refuses to accept the correction of errors, that bid shall be disqualified. In the event of disqualification of the bid, the Purchaser shall proceed to the next most cost-effective solution and follow the same procedure as above. 5. The Bidder should note this schedule and make preparatory arrangements to ensure that the Bidder is available to assist the Purchaser during the evaluation process. All contact between the Bidder and the Purchaser during the evaluation period should be initiated by the Purchaser. Any unsolicited contact initiated by the Bidder during this period may be construed as an attempt to influence the Purchaser s evaluation and may result in the Bidder s proposal being rejected Award of Contract 1. Subject to the assessment of the proposals, the Purchaser will award the contract to the Bidder whose proposal has been determined to be substantially responsive and has the lowest overall price. The successful Bidder shall be contacted for further negotiations. 2. The Purchaser does not bind itself to accept the lowest priced proposal nor to assign any reason for the rejection of any proposal nor to purchase the whole of the solution specified or part thereof. 3. The Purchaser reserves the right to annul the bidding process and reject all proposals at any time prior to award of the contract, without thereby incurring any liability to the affected Bidder(s) on the grounds for the Purchaser s actions. 4. Prior to the expiration of the period of proposal s validity, the Purchaser will notify the successful Bidder in writing that their proposal has been accepted and that the Purchaser wishes to negotiate details of the contract in accordance with the objectives of this RFP, specified in Section Until a formal contract is prepared and executed, the notification of award shall constitute a binding contract. 6. Upon establishing and executing the formal contract, the Purchaser shall notify all other Bidders of the results of the bidding process. 5
7 7. The TCIG reserves the right to terminate its contract by written notice if the selected bidder fails to meet the terms and conditions of the contract. Bidders should clearly state early termination terms and conditions. 8. On the conclusion of contract negotiations, a project plan shall be submitted by the bidder prior to any work commencing on the project outlining the timelines for project execution and completion. 3.4 Deadlines Please note that the commitment for meeting delivery deadlines remains the sole responsibility of the Bidder. 3.5 General Specification 1. All clarifications regarding this request for proposal should be submitted in writing via by Monday, September 17, 2012 and directed to: Mr. Lorenzo Grant legrant@gov.tc 3.6 Submission Date The offer must be received by the deadline stated below. 1. The proposal should be submitted on Monday, September 24, 2012 at 2:00 PM local time. 2. Offers must be submitted to: Chairman of the Tender Board N. J. S. Francis Building Pond Street Grand Turk Turks and Caicos Islands 3. Offer should be marked as follows: RFP-RCU2012Q2/1 Provision of Information Technology Services to Customize SIGTAS for Value Added Tax (Vat) Implementation Project Chairman of the Tender Board N. J. S. Francis Building Pond Street Grand Turk Turks and Caicos Islands 3.7 Submission Deadline The TCIG may, at its discretion, extend the deadline for the submission of the proposal by notifying the Bidder by fax or . In this event, all the rights and obligations of TCIG and the Bidder previously subject to the deadline will thereafter be subject to the deadline as extended. 6
8 4 Overview of the Current System The section of the document presents an overview of the current system environment, architecture and utilisation of SIGTAS. 4.1 Current System Environment and Architecture Figure Current system environment and architecture SIGTAS Client Application SIGTAS Database Server Leased Line Oracle Forms 6i Oracle 10g Release 4 Client Tier Database Tier The current 2-Tiered client-server system architecture features a thick client with direct database access. TCIG is currently operating SIGTAS version The version of Oracle Forms is 6i and the Oracle 10g Release 4 is the database version. Real time, table level replication takes place between server located in Providenciales and the server located in Grand Turk. 4.2 Current Utilisation As shown in the figure below, SIGTAS is currently being used by various Ministries Departments and Agencies located in several of the islands. Examples of these Ministries Departments and Agencies include Revenue Control Unit, Customs, Treasury, and Road Safety Unit. SIGTAS interfaces with SmartStream to send and receive transaction data. Data is extracted from SIGTAS daily for uploading into SmartStream to update relevant accounts. Tax head transaction data from SmartStream is manually uploaded to SIGTAS. Definition: SmartStream is a recognised leader in financial transaction management solutions that enables firms to overcome their post trade processing issues through increased automation. 7
9 Figure Current utilisation of SIGTAS 5 Overview of the Proposed System The section of the document presents an overview of the proposed utilisation, system environment and architecture of the proposed system. 5.1 Proposed System Architecture Figure Proposed system architecture 8
10 As shown in figure above the proposed solution should feature a move from the current thick-client model to a thin-client model. This move is in keeping with the TCIG Central Information Technology Unit Strategic Plan to allow all end user systems to be centrally managed and software deployed on a central server location as opposed to installed on each individual system. 5.2 Proposed Utilisation Figure Proposed utilisation of SIGTAS As shown in the figure above, SIGTAS will continue to be used by various Ministries Departments and Agencies in TCIG. SIGTAS will also continue to interface with SmartStream to send and receive transaction data. VAT will replace a range of existing taxes including Hotel/Restaurant Accommodation Tax, Communications Tax, Vehicle Hire Stamp Duty, Insurance Premiums, Bank Charges and Carbon Tax. 9
11 6 Functional Requirements Specifications The list of functions required includes, but is not limited to, those presented in the following table. Table 1: Summary of functional requirements Sub Module Function Short Description 1. Taxpayer Tax Type Registration 1.1. Register Taxpayer for Tax Type Allows user to register taxpayer for tax type. This should include a defined interface to externally created TINs Suspend Taxpayer Tax Type Registration Allows user to suspend taxpayer tax type registration Re-Activate Taxpayer Tax Type Registration Allows user to re-activate taxpayer tax type registration De-Register Taxpayer Tax Type Registration Allows user to de-register taxpayer tax type registration Re-Register Taxpayer Tax Type Registration Allows user to re-register taxpayer tax type registration Query/Print Taxpayer Tax Type Report Allows user to query/print taxpayer tax type reports. These reports include: Tax Type Registration Certificate, Taxpayer Tax Type Registration List, Notices For 2. Tax Returns Processing 3. Tax Refunds Processing 4. Taxpayer Accounting Taxpayer Tax Type Suspension, Re-Activation, De-Registration, Re-Registration Create/Submit Tax Return Allows user to create/submit tax return. This is to include fact of filing View Tax Return Allows user to view tax return Process Tax Return Allows user to process tax return Calculate Penalties and Interest Allows user to calculate penalties and interest due against tax return Query/Print Tax Return Report Allows user to query/print tax return report. These reports include: Taxpayer Tax Return Form, Tax Filing History Create/Submit Tax Refund Claim Allows user to create/submit tax refund claim View Tax Refund Claim Allows user to view tax refund claim Manage Tax Refund Allows user to manage tax refund. Management will include process to authorise, or reject refund claim Process Tax Refund Allows user to process tax refund Calculate Penalties and Interest Allows user to calculate penalties and interest due against tax refund claim Query/Print Tax Refund Report Allows user to query/print tax refund report. These reports include: Tax Refund Claim Notice, Tax Refunds List Maintain Accounting Period Allows user to maintain accounting period Manage Taxpayer Account Allows user to manage taxpayer account Perform Taxpayer Account Adjustment Allows user to perform taxpayer account adjustment Perform Taxpayer Credit Allocation Allows user to perform taxpayer credit allocation Manage Dishonoured Cheque Payment Allows user to manage dishonoured cheque payment Post to Accounts Allows user to post to accounts Post to SmartStream Allows user to post to SmartStream Query/Print Tax Payer Accounting Report Allows user to query/print tax payer accounting report. These reports include:
12 Sub Module Function Short Description Dishonoured Cheque Payment List, Taxpayer Account Adjustment List. 5. Taxpayer Audit 5.1. Maintain Taxpayer Selection Criteria Allows user to maintain taxpayer selection criteria. and Risk 5.2. Run Taxpayer Compliance Allows user to run taxpayer compliance. Management 5.3. Run Taxpayer Selection Process Allows user to run taxpayer selection process. 6. Objections and Appeals 5.4. Create/Submit Tax Assessment Allows user to submit tax assessment Query/Print Taxpayer Audit and Risk Management Report Allows user to query/print taxpayer audit and risk management report. These reports include: Taxpayers To Be Audited List, Tax Assessment Notice, Failure to File Notice, Demand Notice Create/Submit Objection/Appeal Allows user to create/submit objection/appeal Edit Objection/Appeal Allows user to edit objection/appeal Manage Objection/Appeal Allows user to manage objection/appeal. Management will include process to Accept, or Reject objection/appeal Query/Print Objection/Appeal Report Allows user to query/print objection/appeal report. These reports include: Objection Acceptance Notice, Objection Rejection Notice, and Objection/Appeal List. 7. Tax Reminder 7.1. Send Tax Reminder Allows user to send tax reminder. 11
13 7 Other Deliverables 7.1 Implementation Plan Bidders shall submit an implementation plan as part of their proposal. The implementation plan submitted should consider a phased approach to implementation that is consistent with the TCI - VAT Implementation Plan. This implementation plan details finish dates for key modules as followed: Module Finish Date VAT Registration October 23, 2012 VAT Return and Payment Processing March 5, 2013 VAT Refund processing April 01, 2013 Audit and Risk Management June 12, Source Code It should be demonstrated that the executables that comprise the delivered system can be built from the source code provided. 7.3 Ownership In addition to the licence provided for the base software, TCIG would be the owner of any bespoke modules developed to satisfy requirements. Any specifically customised functions appended to SIGTAS modules will be fully owned and considered the intellectual property of the TCIG. 7.4 Warranty period The successful bidder shall provide a warranty period of one (1) year following the delivery of the final software application. During this period, defects reported will be corrected and retested, as well as any updates and bug fixes supplied at no additional cost. Warranty will be considered a single deliverable and further support and maintenance will be billed at the end of the warranty period at an agreed price schedule. 7.5 Licensing, Maintenance and Support Cost The option of being licenced per user or per core should be included in the proposal. On-going maintenance and support costs should be included as a percentage of the overall cost. 7.6 Development Team The proposal must anticipate involvement of a local developer and business analyst as part of their development team. These resources would be determined based on mutual agreement between TCIG and the successful bidder. 8 Pricing 1. Bidders shall provide pricing for all proposed products and services. 2. Bidders are strongly encouraged to include a payment option that spans multiple financial years. The inclusion of an extended payment option will not form part of the tender selection criteria unless there is more than one preferred bidder.
14 9 Acceptance Criteria The bidder shall customise SIGTAS software to the satisfaction of the TCIG. The following shall be presented by the bidder before final acceptance by the TCIG. 1. Sign-off from quality assurance testing done independently of the bidder s software development team. Sign-off should indicate that all acceptance criteria for all user stories defined for quality assurance testing were passed. 2. Sign-off from user assurance testing. Sign-off should indicate that all acceptance criteria for all user stories defined for user acceptance testing were passed. 3. Escalation procedures and response time commitments. 10 Appendices 10.1 Appendix A Functional Requirements The following use case diagrams present a graphical overview of the functionality to be provided by the system in terms of actors, their goals (represented as use cases), and any dependencies between those use cases. Figure Use Case Diagram: Taxpayer Tax Type Registration uc Taxpayer Tax Type Registration Taxpayer Tax Type Registration Register Taxpayer Tax Type Suspend Taxpayer Tax Type Registration Re-Activ ate Taxpayer Tax Type Registration De-Register Taxpayer Tax Type Registration Find Taxpayer Tax Type Registration Revenue Officer (from Actors) Re-Register Taxpayer Tax Type Registration Query/Print Taxpayer Tax Type Report Taxpayer Tax Type Suspension Notice Taxpayer Tax Type Re-Activ ation Notice Tax Type Registration Certificate Taxpayer Tax Type De-Registration Notice Taxpayer Tax Type Re-Registration Notice 13
15 Figure Use Case Diagram: Tax Returns Processing uc Tax Returns Processing Tax Returns Processing Create/Submit Tax Return (FOF) View Tax Return Find Tax Return Rev enue Officer (from Actors) Query/Print Tax Return Report Process Tax Return Calculate Penalties and Interest System (from Actors) Taxpayer Tax Return Form Tax Filing History 14
16 Figure Use Case Diagram: Tax Refunds Processing uc Tax Refunds Processing Tax Refunds Processing Create/Submit Tax Refund Claim View Tax Refund Claim Manage Tax Refund Find Tax Refund Claim Rev enue Officer (from Actors) Process Tax Refund Query/Print Tax Refund Report Calculate Penalties and Interest System (from Actors) Tax Refund Claim Notice Tax Refunds List 15
17 Figure Use Case Diagram: Taxpayer Accounting uc Taxpayer Accounting Taxpayer Accounting Maintain Accounting Period Manage Taxpayer Account Perform Taxpayer Account Adjustment Find Taxpayer Accounts Officer (from Actors) Perform Taxpayer Credit Allocation Manage Dishonoured Cheque Payment Post to Accounts System (from Actors) Query/Print Taxpayer Accounting Report Post to SmartStream 16
18 Figure Use Case Diagram: Taxpayer Audit and Risk Management uc Taxpayer Audit and Risk Management Taxpayer Audit and Risk Management Maintain Taxpayer Selection Criteria Run Taxpayer Selection Process Run Taxpayer Compliance Audit Officer (from Actors) Create/Submit Tax Assessment Query/Print Taxpayer Audit and Risk Management Report Taxpayers to be Audited List Tax Assessment Notice Failure to File Notice Demand Notice 17
19 Figure Use Case Diagram: Objections and Appeals uc Objections and Appe... Objections and Appeals Create/Submit Objection/Appeal Edit Objection/Appeal Find Objection/Appeal Rev enue Officer (from Actors) Manage Objection/Appeal Query/Print Objection/Appeal Report Objection Acceptance Notice Objection Rejection Notice Objection/Appeal List 18
20 Figure Use Case Diagram: Tax Reminder uc Tax Reminder Tax Reminder Send Tax Reminder System (from Actors) 19
21 10.2 Appendix B Milestones Description Date 1. Issue RFP Monday, September 3, Clarification of RFP end date Monday, September 17, Receive proposal from bidder Monday, September 24, Preferred Bidder Selected Monday, October 3, Begin project Monday, October 22,
22 10.3 Appendix C Proposal Form I,, hereby decree that, on (Name of Representative) behalf of, I have read and (Name of Organization) understood the terms and conditions set out in the Request for Proposal (RFP), for the provision of Information Technology services to Customize and Configure SIGTAS for Value Added Tax implementation for the Government of the Turks and Caicos Islands, and its Appendices. I declare that, being duly authorized to represent this organization, we intend to accept and abide by these terms and conditions. I declare also that, the response proposal that we have submitted will be valid for one hundred and twenty (120) days from the closing date for this RFP. The person that has been selected to be the main contact for this project is. (Signature of Representative) Date (Title of Representative) 21
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