Only 1 firm, Fast Enterprises of Boise, vying for a contract to replace Montana’s flawed tax and accounting computer system

A Boise, Idaho, software firm called Fast Enterprises is the only company in the running for a contract to replace Montana’s flawed tax and accounting computer system, and the state revenue director is impressed.

The company has an experienced team and a tested program for keeping track of government taxes that gets rave reviews from other states where it’s being used, said Linda Francis, who heads the department needing the new system.

She said the Fast proposal was clear, easy to understand and meets the needs of the state. "It was one of the best proposals I’ve ever seen."

But that doesn’t mean the company, which offered to sell and install its GenTax program for $8 million, is a shoo-in for the contract, she said.

The evaluation process will continue as if there were multiple bidders competing for the project, Francis said. "The rigor is the same as if we were reviewing five."

Fast Enterprises, which will demonstrate its program here next week, was one of the only two bids the state received for the new system.

The other company, Tata Infotech based in India, was disqualified last week because its proposal did not meet requirements in the state’s request for bids.

Tata’s bid of $4 million failed to include the entire project, including installation of the software and staff training, officials concluded.

The new computer system will replace one being scrapped by the state after about six years of futile efforts to make it operate properly. Officials have estimated the project cost the state $55 million in either direct expenses or lost revenue due to staff diverted from tax collection chores.

Process Oriented Integrated Tax System, or POINTS, was an elaborate tax and revenue tracking system that had software problems from its start in May 1998. It was the embraced by the previous administration of Gov. Marc Racicot, but condemned by state leaders since then as a huge and expensive mistake.

While some parts worked, the data was badly fouled and portions of the system had serious defects causing delays in issuing tax refunds, double payment of refunds and trouble issuing statements of taxpayers’ accounts.

Gov. Judy Martz and legislators this year decided to abandon POINTS and the Revenue Department was authorized to borrow up to $17 million from the state Board of Investments to get a replacement.

The $8 million bid by Fast Enterprises was the maximum set by the state in requesting bids.

Francis said the state will need to spend additional money for such things as adapting its business operations to the new system, pay staff to work on the project, purchase new computer hardware, oversee the project and train employees to operate the new system.

Fast Enterprises said its GenTax program already has been purchased by Idaho, Louisiana and New Mexico. Those states use it for a wide variety of taxes, including those on sales, tobacco, income, estate, cigarettes, wine, beer, motel, gambling, coal and gasoline.

Montana initially will use its new system for processing income tax withholding by employers, rental car tax, and oil and gas tax. It also will keep track of all taxpayers and their accounts, process tax returns, and produce tax forms and revenue reports.

But Francis and Brian Wolf, chief information officer for the state, said the time may come when Montana would use a single system for all its other taxes as well.

Copyright © 2003 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Copyright © The Billings Gazette, a division of Lee Enterprises.

http://www.billingsgazette.com/index.php?id=1&display=rednews/2003/07/23/build/local/52-firm.inc