Lawmakers approve $30.6 million tax‑software contract with Fast Enterprises after questions on sole‑source procurement and consultant staffing

The committee voted to approve a three‑year contract with Fast Enterprises, with a maximum liability of $30,600,000 and two possible option years, to provide and maintain the Department of Revenue’s tax collection software and related services. Logan Hess, legislative director for the department, described the agreement and introduced department staff who answered committee questions.

Representative Bricken pressed the department on why the contract represents about a 40% increase over the existing agreement and on the contract’s structure, which includes support from up to 15 full‑time equivalent vendor staff. “It starts off with a 40% increase over the existing years, and that large increase by itself should cause a pause,” Bricken said. Bricken also questioned whether the work could be procured on a milestone or deliverable basis rather than with vendor FTEs that could be idle between projects and whether the vendor’s effective hourly costs were excessive.

Greer Allison, director of the tax system for the Department of Revenue, told the committee the vendor team is supervised by the department and that the vendor FTEs have been continuously busy responding to legislative changes and emergencies, including work built for COVID relief and franchise tax refunds. “They do not sit around ever. Their work is continuous,” Allison said, and added that the in‑state work is directed by department business priorities and statutory requirements.

Members also raised procurement concerns: the vendor software (Gentax) is proprietary and was awarded as a sole‑source at initial procurement because, the department said, Fast Enterprises was the only provider in production with sales‑tax functionality for the required duration. Committee staff explained that a waiver was granted so the department could proceed when the prior contract expired and that the contract was brought to the committee for retroactive review and final action.

Committee members asked for additional procurement scrutiny going forward. Representative Bricken urged the department to explore milestone‑based contracting or stricter procurement terms to avoid lock‑in; other members suggested more competitive planning on the front end for future procurements.

After discussion, the committee chair called for the motion to approve the contract and the members voted by voice; the motion carried and the committee recorded that the items were approved.

The committee’s approval follows the department’s explanation that vendor FTEs and annual maintenance are needed to keep state tax systems compliant with frequent legislative and programmatic changes. Committee recordkeepers noted the committee had previously authorized a waiver permitting the department to execute the contract when timing required it, and members reserved the right to require changes under the committee’s review authority.

Next steps: the department will proceed under the approved contract and the committee asked staff and the department to follow up on procurement options and any additional documentation requested by members.