In a request for proposal (RFP) released Thursday, the California State University (CSU) Office of the Chancellor calls for responses from IT companies capable of providing the university system and its “auxiliaries” with “nonresident alien tax reporting software” – an “existing cloud-based software product” that will help the university system comply with the Internal Revenue Service’s “nonresident alien ... tax rules, regulations and reporting requirements.” Auxiliaries are considered a part of this RFP; pricing must be available to campuses or auxiliaries that may participate within the systemwide contract. Among the takeaways:
- Governed by a 25-member board of trustees, most of whom are appointed by the governor, the CSU system comprises 23 campuses around the state – and the Office of the Chancellor, its “systemwide executive office,” according to the RFP. The office plans to use the new software for itself and “broker” its licensing to participating campuses. There is “much interest in this software,” per the RFP – but not all 23 CSU campuses are expected to license it. According to CSU’s Fact Book 2021, the university then had 486,000 students; of those, 26,312, or nearly 5.5 percent, were nonresident aliens. The CSU’s existing solution is “client-server software” in a “remote desktop environment,” enabling a centralized implementation accessed online by campuses and participating auxiliary organizations.
- The contractor selected must deliver product features including a “fully functional” product that is mature in development and maintained with a “planned operational and content upgrade path.” That software must be fully functional in enabling compliance with the IRS’ “nonresident alien tax rules, regulations and reporting requirements,” and in use at other higher education institutions. The system must do “all tax reporting responsibilities for an institution paying foreign nationals,” including determining whether they’re resident or nonresident aliens for tax reporting purposes; providing withholding forms for them to complete; and electronically posting the Form 1042-S for individual access by “foreign national payees.” Contractor must also provide a discussion of the onboarding process for previous years of data, make the product accessible or available to multiple users on a single campus, and include the cost of training for software use and management.
- Mandatory requirements include descriptions of “the auditing system for protecting private information” and safeguards against malicious software; what compliance standards are used; and what third-party processor services, if any, are used for transaction or information processing. Proposers may be required to provide, “at their expense, a comprehensive third-party product accessibility evaluation,” including an executive summary detailing accessibility barriers and groups affected. Mandatory software functionality requirements include demonstrating the software and its system can be used “in multiple operational units on campuses,” at least three references from institutions currently using the software, and demonstrating the software – available as a web-based application – employs a “method or tool that enables the nonresident alien to input their own information into the database.” The software must also have a “communication device” to resolve issues with nonresident aliens.
- The contract’s precise value isn’t stated. Base contract term is expected to be June 1-Dec. 31, 2027, with the option of three one-year renewals. The use of this software will include “the filing of tax returns as required by the IRS during the following calendar beyond the end of the contract.” The CSU reserves the right to make an award to “one or more proposers.” The contractor selected must invoice the chancellor’s office for fees, with a breakdown by campus and auxiliary. The contract awarded doesn’t mandate that all CSU campuses must only buy “foreign national tax reporting software” from the bidder selected – or that they must switch software. Questions are due by 2 p.m. Thursday. Proposals are due by 12 p.m. April 4. Interviews are expected during April, with a notice of intent to award coming in April-May. Commencement of services is likely June 1, with implementation/training in the June-July time frame and a go-live in January 2023.
