Tennessee Department of Revenue approves $30.6M FAST Enterprises tax software contract

In a pivotal meeting held on July 1, 2025, the Tennessee Joint Committee on Fiscal Review convened to discuss significant contracts impacting the state's tax collection and technology systems. The spotlight was on a new three-year contract with FAST Enterprises, valued at $30.6 million, which aims to enhance the Department of Revenue's tax collection software.

The contract, which includes an option for two additional years, has raised eyebrows due to a staggering 40% increase compared to previous agreements. Representative Bricken expressed concerns about the justification for such a hike, questioning the necessity of maintaining 15 full-time equivalent employees dedicated to the project. He suggested that the state might benefit from a milestone-based contracting approach, which would allow for more flexibility and cost-effectiveness.

Greer Allison, a representative from the Department of Revenue, defended the contract, emphasizing the continuous workload and legislative changes that necessitate the presence of these employees. She highlighted that the team had been instrumental in responding to emergencies, such as the COVID-19 pandemic, and managing various legislative updates. Despite the high costs associated with the contract, she assured the committee that the employees were essential for maintaining the efficiency of the tax system.

The discussion also touched on the nature of the contract being a sole source agreement, which limits the state's ability to negotiate better terms. This raised further concerns among committee members about the long-term implications of relying on a single vendor for such critical services. The committee ultimately approved the contract, but not without acknowledging the need for tighter budget management and more competitive procurement processes in the future.

In addition to the tax software contract, the meeting addressed several other contracts across various departments, including a renewal with Policy and Research LLC for workforce development and a new contract with Time Looper Inc. for augmented reality content in state parks. Each contract was met with scrutiny, reflecting a broader commitment to ensuring fiscal responsibility and transparency in state spending.

As the meeting concluded, it was clear that while the state is moving forward with essential contracts, the discussions highlighted a growing awareness of the need for strategic planning and competitive bidding to safeguard taxpayer interests in Tennessee.