ࡱ> #` bjbj5G5G 8fW-W-DHF, !!! EEEEEEE$tGhIEi%!!i%i%E E( & & &i%"  E &i%E & &y?@  ݳfl%a@C$ F<HF{@>jJ%RjJ4@@jJ@ ""| &5#d# " " "EE% " " "HFi%i%i%i%   State of Wisconsin Department of Administration Division of Enterprise Operations DOA-3821a (R 02/2007) s. 16.705(2), Wis StatsState Bureau of Procurement 101 East Wilson Street, 6th Fl Post Office Box 7867 Madison, WI 53707-7867 Fax (608) 267-0600Cost Benefit Analysis Project Summary To perform Cost Benefit Analysis, please complete DOA-3821a CBA Project Summary (Word) and DOA-3821b CBA Financial Information (Excel). Route both documents for approval within your agency as defined by your agency policy. * Submit approved documents to the Deputy Director of the State Bureau of Procurement and appropriate Union Representatives. ** *DOA and its attached entities must also complete DOA-3820 CBA Review Approval.doc and route as specified in that document. ** Provide union notification letter to the union as required in Pro-I-9 The form below is designed to expand as information is entered. Department:Date:Agency Tracking Number FORMTEXT UW-Madison FORMTEXT 3/7/07 FORMTEXT 07-5243Contact:Phone Number FORMTEXT Carl Hubbard FORMTEXT 2-6557Project/Program Title: FORMTEXT 1098 Reporting for UW System campusesWritten Description of FactorsService Overview - Rationale for Contracting Out Provide a written justification for the request in clear, non-technical language that can be understood by persons who may not be directly involved in or familiar with the proposed services, with all acronyms fully defined. FORMTEXT Production of 1098 forms is required by IRS regulations. The form is used to report tuition payments and student loan interest.Market Strength Please describe the availability in the market of vendors that can perform this service. How does the labor market impact the recruiting and retention of employees? FORMTEXT Multiple companies in the United States provide the services for other higher education institutions. This is a specialty market using primarily Information Technology personnel. It will not affect any UW or State employee positions.Quality and Nature of Services Required Provide a description of the proposed service to be performed, a list of items to be delivered, any specific conditions to be required of the contractor, and how the agency will ensure that the contractor will provide services and quality as promised without financial loss to the State. Is the work a core service of state government? FORMTEXT The University of Wisconsin System currently produces in house about 222,400 1098-T's and 2000 1098-Es each year. (At this this time, only UW-Madison and UW-Eau Claire produce their 1098-E centrally.) Data is gathered from 15 campuses' student information systems in a standard format, consolidated, then printed and mailed. The campuses have access to a website at which they can change their campuses' submitted information for each student and reprint a form if necessary. A contractor will build and host a website for receiving the data; print the 1098 forms, and mail them to the students. The contractor would also transmit the data to the IRS. The IRS requires all higher education institutions provide these forms to their students.Risk Factors Please describe the controls and risk management that will be in place in the event a private firm may fail to provide the service it has guaranteed or reduce services if financial losses occur? How will we ensure that confidential information will be kept secure? FORMTEXT The UW-Madison has provided this service for all the UW Systems campuses in the past. UW-Madison can revive this service internally should an outside provider fail to produce. Data is transmitted using secure Internet connections and file transfer protocols.Timelines Provide schedules and timetables for the proposed service. Provide a statement indicating whether the proposed service is a short-term project or a long term need for the agency. What controls will be in place to ensure the timeliness of project milestones. FORMTEXT This project would be a continuing contract as long as the Federal government requires 1098 reporting. The IRS has mandated reporting deadlines for providing the information to end users and receiving the data from institutions. Contractors providing this service must stay on top of the reporting guidelines to stay in business. Contractors typically provide this service to multiple institutions, therefore, they are under pressure to produce from many sources. Additionally, we need access to this same information and will monitor the data as necessary.Technical Expertise Describe whether agency employees have the capacity to perform the proposed service. Describe whether the agency employees have the expertise to perform the proposed service. FORMTEXT Agency employees do have the expertise and experience to do this work. Relieving this work from Agency employees will free them for other work projects.Legal Barriers Please describe any federal mandates, state statutes, and administrative rules that dictate the service level which government must perform. Would contracting out affect access of services or treatment? FORMTEXT 1098 reporting is required by the Taxpayer Relief Act of 1997. The IRS sets the guidelines on the forms themselves and the reporting requirements.Alternatives to Contracting Out What alternatives have been considered? What research has been conducted to determine if this service can be performed by another agency or the University? FORMTEXT The University has performed this service in the past for the entire UW System. No other State agencies have need of this service or would have any reason to perform it since it is unique to educational institutions. 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