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 TIRNO98R00044 DUE 052998 POC Contract Specialist, Margaret M. Hunt, 202-283-1296 The Internal Revenue Service (IRS) intends to negotiate with Electronic Tax Systems, Inc. (ETS), subsidiary of Computer Language Research, Inc. (CLR), on a sole source basis under the authority of FAR Subpart 6.302-01, to acquire windows based International Tax Package software including licenses and support/maintenance. The required software products, licenses and support/maintenance are commercially available software packages that provide the following: 1) Trial Balance function for electronic transfer of financial information; 2) Foreign Tax Credit (FTC) comprehensive automation system to generate Form 1118; 3) Controlled Foreign Corporation (CFC) compliance system to generate Form 5471; 4) Foreign Sales Corporation (FSC) compliance system to prepare Form 1120-FSC; and 5) Possessions Corporation Credit (PCC) system to analyze the Section 936 tax credit. The commercially available software package shall be modified to include the following enhancements: 1) Capability to import data from other CLR supported FTC/CFC/FSC commercial software products; and 2) Capability to rollover prior year System for Tax Audit and Review (STAR) software data. STAR (System for Tax Audit and Review) software is a 1987-1995 DOS based International Tax Package software licensed to the IRS by ETS. ETS is the only available source to provide a product compatible with all STAR data fields. This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Federal Acquisition Regulation (FAR) Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; a written solicitation will not be issued. This solicitation is issued as a Request for Proposal (RFP) and the solicitation number is TIRNO-98-R-00044. This acquisition's standard industrial classification code is 7372 and the related small business size standard is $18.0 million. The IRS intends to contract with ETS for a perpetual Servicewide license agreement for the following software products (seventy-five copies of software/manuals and training manuals each): 1. Description: 1996 tax year -- The System for Tax Audit and Review for Windows [International Electronic Tax Package (IETP), Foreign Tax Credit (FTC), Controlled Foreign Corporation (CFC), Foreign Sales Corporation (FSC), Possessions Corporation Credit (PCC)]; 2. Description: 1997 tax year -- The System for Tax Audit and Review for Windows [International Electronic Tax Package (IETP), Foreign Tax Credit (FTC), Controlled Foreign Corporation (CFC), Foreign Sales Corporation (FSC), Possessions Corporation Credit (PCC)]; 3. Description: Optional 1998 tax year -- The System for Tax Audit and Review for Windows [International Electronic Tax Package (IETP), Foreign Tax Credit (FTC), Controlled Foreign Corporation (CFC), Foreign Sales Corporation (FSC), Possessions Corporation Credit (PCC)]; 4. Description: Optional 1999 tax year -- The System for Tax Audit and Review for Windows [International Electronic Tax Package (IETP), Foreign Tax Credit (FTC), Controlled Foreign Corporation (CFC), Foreign Sales Corporation (FSC), Possessions Corporation Credit (PCC). Rollover and import modifications of the commercially available software packages for the base period and optional periods must be compatible with STAR DOS versions, and all CLR supported FTC/CFC/FSC DOS/Windows software packages. 5. Four day training classes for groups of twenty participants (to be scheduled). A pre-award ten-day field test will be scheduled for each tax-year's software package. The Contractor shall provide perpetual software licenses for each tax period, daily eight-hour toll-free telephone support and maintenance for all STAR and STAR Windows products for a minimum twelve-month period. Each contract renewal or exercised option extends the telephone support and maintenance for an additional twelve months. 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, 1GB 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. The contract term shall consist of a base period starting with delivery of a 1996 calendar tax year program within 30 days after contract award, followed by a September, 1998 delivery of a 1997 calendar tax year program. The base period support shall continue for twelve months after delivery of the 1997 calendar tax year program. Optional calendar tax year programs shall be delivered in September of the subsequent calendar year. The government will accept each calendar tax year program following a successful ten-day field test. ETS shall submit a technical and price proposal in response to this notice. ETS shall prepare its proposal in accordance with FAR provision no. 52.212-1, Instructions to Offerors-Commercial Items, and shall include the following information: 1) list and prices of the software products to be provided; 2) acknowledgement of each requirement listed above, or summary of exceptions taken to specific requirements with alternative proposals for each exception for IRS approval; 3) three "past performance" references; and 4) completed copy of FAR provision no. 52.212-3, Offeror Representations and Certifications-Commercial Items. ETS will be evaluated in accordance with FAR clause no. 52.212-2, Evaluation-Commercial Items in light of the following evaluation factors: 1) ability to provide the required software products and related requirements; 2) past performance evaluation; and 3) fairness and reasonableness of proposed price. ETS will be required to comply with FAR clause no. 52.212-4, Contract Terms and Conditions-Commercial Items, in entirety. Under FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Items, the Contractor shall comply under paragraph (b) with the following FAR clauses: 52.203-6, 52.203-10, 52.219-8, 52.222-26, 52.222-35, 52.222-36, 52.222-37 and 52.225-09. In addition, the contract will include IRS' rights in data as set forth in FAR clause no. 52.227-14, Rights in Data-General, with alternates II, III and IV and FAR clause no. 52.227-19, Commercial Computer Software-Restricted Rights. ETS shall submit its original proposal and one copy not later than May 29, 1998 to the following address: Internal Revenue Service, A/C Procurement, 6009 Oxon Hill Road, Room 700, Oxon Hill, MD 20745, Attn: Margaret M. Hunt, M:P:I:E. Any questions regarding this notice should be directed to Margaret Hunt at (202)283-1296. Refer to Note 22. (0124)

Loren Data Corp. http://www.ld.com (SYN# 0375 19980506\70-0006.SOL)