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Committee approves Fast Enterprises amendments for unemployment systems, including $2.02M increase

Fiscal Review Committee · August 13, 2025
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Summary

The Fiscal Review Committee approved two amendments to Fast Enterprises contracts for Tennessee’s unemployment systems, including a $2,025,760 increase that raises the unemployment benefits contract maximum liability to $41,744,855; the unemployment tax system amendment carried no liability increase.

Matthew Grove, legislative liaison with the Tennessee Department of Labor and Workforce Development, told the Fiscal Review Committee the department "brings 2 amendments to our existing contracts with Fast Enterprises LLC to include managed hosting services" for the unemployment benefit and unemployment tax systems. He said the "1st Amendment ... increases the maximum liability by $2,025,760 to $41,744,855."

Grove said the managed services include hosting support, infrastructure administration, monitoring, testing, audit support, data protection, security and disaster recovery, and that the change is intended to move the vendor into the state's new cloud model hosted in AWS. Committee members asked no formal questions during the presentation and both amendments were approved by voice vote.

The committee's approval will allow the vendor to continue managed hosting under the statewide cloud-cost model, which the department described as "more cost and labor efficient." The Labor Department representatives offered to answer follow-up questions and the committee recorded the approvals on the consent/regular calendar.

The action was procedural and approved without recorded roll-call tallies in the transcript; the committee did not identify any statutory authority concerns during the discussion.