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State of Ohio - Controlling Board Request
STATE OF OHIO
CONTROLLING BOARD
30 East Broad Street, 34th Floor
Columbus, Ohio 43215-3457
(614) 466-5721 FAX:(614) 466-3813
OPERATING REQUEST Controlling Board No.
TAX0100069
Status:  Approved
Meeting Date:  6/15/2020

GENERAL INFORMATION
Agency
Taxation


Division/Institution
Taxation
Waiver of Competitive Selection  (Revised Code Section 127.16B)
      No Competitive Opportunity
      Agency Released Competitive Opportunity
Agency Released Competitive Opportunity (Revised Code Section 127.162)
Other Statutory Authority/Bill Section:
Operating Transfer Request  (Revised Code Section 127.14)
      Appropriation
      Cash
      Other Statutory Authority/Bill Section:
Fiscal Year(s)
2021
Bill No.
HB 166
Eligible for OBM
Director Approval?
No

VENDOR INFORMATION
For FYAmountNameAddressCityStateCountyZip Code
TAX01 2021 $104,296.00 Fairfax Imaging, Inc. 2005 PAN AM CIRCLE STE 110 Tampa FL 33607

FUNDING INFORMATION
Fund GroupFund CodeAppropriation Line ItemAppropriation Line Item NameFYAmountFYAmount
GRF 110321 Operating 2021 $83,436.00 $.00
4380 110609 School District Income Tax 2021 $20,860.00 $.00

SIGNATURES
     
Jeff McClain 06/15/2020
   
Agency Director or Authorized Agent On The Date Of
   
05/20/2020 W. Fletch Zimpher
   
Date Controlling Board President/OBM Director
   
AGENCY CONTACT
Name:  Michael J O'Leary Title:  Chief Fiscal Officer
Phone:  (614) 466 - 8491 Fax:  (614) 995 - 0988 E-Mail:  michael.o'leary@tax.state.oh.us
REQUIRED EXPLANATION OF REQUEST
  The Department of Taxation respectfully requests Controlling Board approval for a waiver of competitive selection in the amount of $83,436 from Fund GRF, ALI 110321 (Operating), and $20,860 from Fund 4380, ALI 110609 (School District Income Tax), in FY21 to renew the contract with Fairfax Imaging, Inc., Tampa, FL, to provide maintenance and support for data capture hardware and software.  
  Taxation has contracted with Fairfax Imaging to provide support for the data capture software, Quick Modules, and for support of the hardware for the agency's four scanners. The latter are used to capture images of the tax returns to be processed and uploaded to agency databases and to save on manual processing and keying. This software is used for the data capture of all paper returns processed by the agency as well as some payment vouchers.

The Ohio Department of Taxation needs to continue to maintain this product for the benefit of Ohioans that cannot file and/or pay electronically. Although many taxes have statutory provisions that make electronic filing mandatory, there are opt-out provisions as well. Furthermore, some taxes do not have electronic filing options available. Until electronic filing become mandatory and enabled for all taxes, this paper system must continue to be maintained.

Additionally, the software is more critical than ever since Fairfax 5.0 has recently replaced the functionality of the antiquated check scanning and processing that existed previously. Fairfax 5.0 is the only viable way to scan checks that are received by ODT.

The contract includes maintenance support to ensure that ODT does not experience extended delays (>1 day), and therefore permits ODT to process incoming returns and/or payments as quick as possible and avoid disruptions in downstream processes (i.e., deposits, delinquency programs, etc.).

With COVID-19 pandemic, the filing due date for the Personal Income Tax has been extended to July 15, 2020 meaning that ODT has not completed the peak of the 2019 filing season. During the peak, the Fairfax software and maintenance support will ensure that ODT can accurately process refunds from paper returns, and issue those refunds to Ohioans accurately and timely. As a result, Taxation will need to have the software and support in place at the start of FY2021.
 
  TAX0100066  
Attachments Controlling Board Request No.: TAX0100069
Attachment TypeAttachment Description
Contract Fairfax Quote
Sole source justification letter Sole source letter from Fairfax
Release and Permit Confirmation of Release and Permit from OIT
 
Release and Permit Information
NameFYAmountR & P #R & P DateIssued ByComments
Fairfax Imaging, Inc. 2021 $104,296.00 TAX01210001 05/20/2020 Acquisitions Management

Operating Request Required Information
Contract Renewal - Fairfax Imaging, Inc.
Controlling Board Request No.: TAX0100069
1.  Identify the contractor and provide the contractor's address of their principal place of business.
Fairfax Imaging, Inc.
2005 PAN AM CIRCLE STE 110
Tampa, FL 33607

 

2. Provide a brief history of the project or program being affected by the work of the contractor.
  Taxation has contracted with Fairfax Imaging to provide support for the data capture software, Quick Modules, and support of the hardware for the agency's four scanners. The latter are used to capture images of the tax returns to be processed and uploaded to agency databases and save on manual processing and keying. This software is used for the data capture of all paper returns processed by the agency as well as some payment vouchers.
3. Specify the deliverables of this contract or describe the scope of the services to be performed by renewing this contract.
The vendor is required to provide assistance within thirty minutes of being contacted during normal business hours. Response time is critical during our high processing times. This maintenance also provides the agency with any upgrades at no additional charge. The scanners are used primarily for personal income tax, school district income tax and pass through entity tax. The vendor has been on state term schedule agreement, but they are the only one that can provide maintenance and support.
 
4.
Cite the account category of expense being used for this purchase of service(s).
Account CategorySubobjectAmountNon-Exempt Amount
526070 $104,296.00 $104,296.00
Total Amounts $104,296.00 $104,296.00
   

5.

Provide the dates of previous Controlling Board approvals for this contract. Indicate whether the approvals were for the initial contract, amendments to this contract, or previous renewals for this contract. In addition to the date(s) of Controlling Board approval, provide the following information depending upon the type of contract previously approved by the Controlling Board.
   
  Initial Contract - Total amount of the initial contract or number of hours and the rate per hour.
  Amendment - Total amount of the amended contract (initial + amendment) or total number of hours (initial + amendment) and the total rate per hour (initial contract + contract amendment + contract renewals within the biennium).
  Renewal - Total amount of the renewed contract or the total number of hours and the total rate per hour.
NOTE: All amounts must be shown in amounts per fiscal year.
CB Approval DateType of ContractAmount per FY# of HoursRate per Hour per FY
06/11/2018 Renewal $266,903.00 0.00 $0.00
06/10/2019 Renewal $101,258.00 0.00 $0.00
6. Provide the total amount of the contract renewal or total number of hours and total rate per hour.
Total Contract Amount Total # of Hours Total Rate per Hour FY 
$104,296.00 0  $0.00  20  
 
7. Is this contract rate an increase in the total amount of the contract or the rate per hour over the previous contract rate? Yes
 

Explain why. This contract reflects a 3% increase from FY20 which was a standard cost increase from the vendor.

8. Duration (beginning and ending dates) of this contract renewal within the biennium.
Beginning Date Ending Date
07/01/2020 06/30/2021
 
9. Provide all subsequent renewal schedules (beginning and ending dates) and amounts associated with this contract.
   
Beginning DateEnding DateTotal Amount
  Explain contract provisions.  N/A
10.
Provide the following employee information: Nationwide Ohio
Total Number of Employees 73    0   
Percentage of Women 25% 0%
Percentage of Minorities 18% 0%