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EXERCISE OF RENEW AL OPTION GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS C::dJ}r3 DEPARTMENT OF PROPERTY & PROCUREMENT CONTRACT NO.: P051BIRT22 DATED: December 30, 2021 EXERCISE OF RENEWAL OPTION Contractor Clifford R. Parker Contractor 6750 Summit Drive Milton, Florida 32570 Description of Scope of Work/Services Upgrades to the VITAX tax system to meet Internal Revenue Service (IRS) rules and guidelines. Pursuant to the renewal option provision of Contract No. P051BIRT22, and subject to the appropriation and allotment of necessary funds, notice is hereby given that the Government of the U.S. Virgin Islands, Bureau of Internal Revenue (BIR) exercises its option to renew and does hereby renew the aforementioned contract for the period of one (1) additional year beginning on December 1, 2022, at the stipulated cost therein. All the terms, covenants, and conditions of the contract affected shall continue in full force and effect. Please acknowledge receipt and acceptance hereby signing and returning the original to: The Department of Property and Procurement #3274 Estate Richmond Christiansted, St. Croix, USVI 00820 ACKNOWLEDGMENT & ACCEPTANCE: tf_ CliaR.Parker Contractor DATE: 10/07 /22 Anthony D. Thomas, Commissioner Department of Property & Procurement NT OF THE VIRGIN ISLANDS A. Lee, CPA, Director irgin Islands Bureau of Internal Revenue DATE: 10/07/22 ----- DATE 11/14/2022 a qRE WS Fo, ~~ Contract No. CONTRACT FOR PROFESSIONAL SERVICES THIS AGREEMENT is made this 30th day of December, 2021 , inthe Territory of the Virgin Islands, by and between the Government of the Virgin Islands, Department of Property and Procurement, on behalf of the Virgin Islands Bureau of Internal Revenue (hereinafter referred to as "Government") and Clifford R. Parker of 6750 Summit Drive, Milton , Florida 32570 (hereinafter referred to as "Contractor"). WITNESSETH: WHEREAS, the Government is in need of the services of a Contractor to provide programming services to update the computer programs on the AS400 in order to process tax year 2021 tax returns, to pay additional Economic Impact Payments, the Advance Child Tax Credit, and other COVID-19 related relief payments, and to support other mandatory upgrades to the system, which duties and responsibilities are more particularly described in Addendum I (Scope of Services) attached hereto; and WHEREAS, the Contractor was selected in accordance with 31 V.I.C. § 239(a) (8), as the sole and exclusive programmer with the knowledge and experience needed to ) upgrade the Bureau’s tax system; and WHEREAS, the Contractor represents that it is willing and capable of providing such services; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, and intending to be legally bound by this written instrument, the parties hereto do covenant and agree as follows: 1. SERVICES The Contractor will provide the services described in Addendum I (Scope of Services) attached hereto and made a part of this contract. 2. TERM AND EFFECTIVE DATE Upon the date of execution of this Contract by the Commissioner of the Department of Property and Procurement, this contract shall commence on October 1, 2021 and shall terminate Four Hundred and Twenty-five (425) days thereafter. The Government in its sole discretion, shall have the option to renew this Contract for a period of one (1) additional year subject to the same terms noted herein, by providing the Contractor with sixty (60) days written notice of the Government’s election to renew. 3. COMPENSATION PO51BIRT22 Contractor’s Initials: OS The Government, in consideration of the satisfactory performance of the services described in Addendum I (Scope of Services), agrees to pay Contractor a sum not to exceed Seventy-five Thousand Dollars and Zero Cents ($75,000.00) in accordance with the provisions set forth in Addendum II (Compensation) attached hereto and made a part of this contract. 4. TRAVEL EXPENSES Inclusive of the compensation for services as specified in Paragraph 3 (Compensation) above, the Government agrees to pay documented transportation, subsistence, lodging and other travel expenses, while in travel status, for trips which have been authorized in writing, in advance, by the Government. These costs shall be advanced or reimbursed on, the same basis as is applicable to non-contract employees of the Government, or as agreed to by an addendum to this Contract, however, said costs and expenses shall not exceed N/A ($ N/A). 5. RECORDS The Contractor when applicable, will present documented precise records of time and/or money expended under this Contract. 6. PROFESSIONAL STANDARDS The Contractor agrees to maintain the professional standards applicable to its profession and to consultants doing business in the United States Virgin Islands. 7. DOCUMENTS, PRINTOUTS, ETC. All documents, books, records, instructional materials, programs, printouts and memoranda of every description derived therefrom and pertaining to this Contract shall become the property of the Government and shall be turned over to it at the termination of this Contract. The above described materials shall not be used by Contractor or by any other person or entity except upon the written permission of the Government. 8. LIABILITY OF OTHERS Nothing in this Contract shall be construed to impose any liability upon the Government to persons, firms, associations, or corporations engaged by Contractor as servants, agents, or independent contractors, or in any other capacity whatsoever, or make Government liable to any such persons, firms, associations, or corporations for the acts, omissions, liabilities, obligations and taxes of Contractor of whatsoever nature, including but not limited to unemployment insurance, gross receipt, excise, and social security taxes for Contractor, its servants, agents or independent contractors. . Contractor’s Initials: Cee Contract No. PO51BIRT22 ——— 9. ASSIGNMENT The Contractor shall not subcontract or assign any part of the services under this Contract without the prior written consent of the Government. 10. INDEMNIFICATION Contractor agrees to indemnify, defend and hold harmless Government from and against any and all loss, damage, liability, claims, demands, detriments, costs, charges and expenses (including attorney’s fees) and causes of action of whatsoever character which Government may incur, sustain or be subjected to, arising out of or in any way connected to the services to be performed by Contractor under this Contract and arising from any cause, except the sole negligence of Government. 11. INDEPENDENT CONTRACTOR The Contractor shall perform this Contract as an independent contractor and nothing herein contained shall be construed to be inconsistent with this relationship or status. 12. GOVERNING LAW This Contract shall be governed by the laws of the United States Virgin Islands and jurisdiction shall remain in the United States Virgin Islands. 13. WAIVERS AND AMENDMENTS No waiver, modification or amendment of any term, condition, or provision of this Contract shall be valid or of any force or effect unless made in writing, signed by the parties hereto or their duly authorized representatives, and specifying with particularity the nature and extent of such waiver, modification or amendment. Any such waiver, modification or amendment in any instance or instances shall in no event be construed to be a general waiver, modification or amendment of any of the terms, conditions or provisions of this Contract, but the same shall be strictly limited and restricted to the extent and occasion specified in such signed writing or writings. 14. ENTIRE AGREEMENT This agreement constitutes the entire agreement of the parties relating to the subject matter addressed in this Agreement. This agreement supersedes all prior communications, contracts, or agreements between the parties with respect to the subject matter addressed in this agreement, whether written or oral. ; Contractor’s Initials: CV? Contract No._PO51BIRT22 13. RIGHT TO WITHHOLD If work under this Contract is not performed in accordance with the terms hereof, Government will have the right to withhold out of any payment due to Contractor, such sums as Government may deem ample to protect it against loss or to assure payment of claims arising therefrom, and, at its option, Government may apply such sums in such manner as Government may deem proper to secure itself or to satisfy such claims. Government will immediately notify the Contractor in writing in the event that it elects to exercise its right to withhold. No such withholding or application shall be made by Government if and while Contractor gives satisfactory assurance to Government that such claims will be paid by Contractor or its insurance carrier, if applicable in the event that such contest is not successful. 16. CONDITION PRECEDENT This Contract shall be subject to the availability and appropriation of funds and to the approval of the Commissioner of the Department of Property and Procurement. 17. TERMINATION Either party will have the right to terminate this Contract with or without cause on thirty (30) days written notice to the other party specifying the date of termination. 18. PARTIAL TERMINATION The performance of work under this Contract may be terminated by the Government, in part, whenever the Government shall deem such termination advisable by providing thirty (30) days written notice to the Contractor. This partial termination shall be effected by delivering to the Contractor a Notice of Partial Termination specifying the extent to which the term and/or duties under this Contract are terminated and the date upon which such termination becomes effective. The Contractor shall be entitled to receive payment for services provided to the date of termination, including payment for the period of the thirty (30) day notice. 19. NON-DISCRIMINATION No person shall be excluded from participating in, be denied the proceeds of or be subject to discrimination in the performance of this Contract on account of race, creed, color, sex, religion, disability or national origin. Contractor’s Initials: Contract No. PO51BIRT22 ontractor’s Initials LP 20. CONFLICT OF INTEREST (a) Contractor covenants that it has no interest and will not acquire any interest direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Contract. (b) Contractor further covenants that it is: (1) not a territorial officer or employee (i.e., the Governor, Lieutenant Governor, member of the Legislature, or any other elected territorial official; or an officer or employee of the legislative, executive or judicial branch of the Government or any agency, board, commission or independent instrumentality of the Government, whether compensated on a salary, fee or contractual basis); or (2) a territorial officer or employee and, as such, has: (i) familiarized itself with the provisions of Title 3, Chapter 37 of the Virgin Islands Code, pertaining to conflicts of interest, including the penalties provision set forth in section 1108 thereof; (ii) not made, negotiated or influenced this Contract, in its official capacity; and (iii) no financial interest in the Contract as that term is defined in section 1101(1) of said Code chapter. 21. NOTICE Any notice required to be given by the Terms of this Contract shall be deemed to have been given when the same is sent by certified mail, postage prepaid or personally delivered, addressed to the parties as follows: “Contract No, P051BIRT22 GOVERNMENT Anthony D. Thomas Commissioner Department of Property and Procurement 8201 Sub Base, Suite 4 St. Thomas Virgin Islands 00802 Joel A. Lee, CPA, Director Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay — Suite 225 St. Thomas, Virgin Islands 00802 CONTRACTOR Clifford R. Parker, Contractor 6750 Summit Drive Milton, Florida 32570 Contractor’s Initials: Ce 22. LICENSURE The Contractor covenants that it has: (a) obtained all of the applicable licenses or permits, permanent, temporary or otherwise as required by Title 27 of the Virgin Islands Code; and (b) familiarized itself with the applicable provisions of Title 27 of the Virgin Islands Code pertaining to professions and occupations. 23. OTHER PROVISIONS Addenda I, II and III attached hereto are a part of this Contract and are incorporated herein by reference. 24. DEBARMENT CERTIFICATION By execution of this contract, the contractor certifies that it is eligible to receive contract awards using federally appropriated funds and that it has not been suspended or debarred from entering into contracts with any federal agency. The Contractor shall include this provision in each of its subcontracts hereunder and shall furnish its subcontractors with the current “LIST OF PARTIES EXCLUDED FROM FEDERAL PROCUREMENT OR NON PROCUREMENT”. In the event the Contractor or any subcontractor misrepresents its eligibility to receive contract awards using federal funds, the Contractor or subcontractor agrees that it shall not be entitled to payment for any work performed under this contract or any subcontract and that the Contractor or subcontractor shall promptly reimburse the Government of the Virgin Islands for any progress payments heretofore made. 25. FALSE CLAIMS Contractor warrants that it shall not, with respect to this Contract, make or present any claim upon or against the Government of the Virgin Islands, or any officer department, board, commission, or other agency thereof, knowing such claims to be false, fictitious or fraudulent. Contractor acknowledges that making such a false, fictitious or fraudulent claim is an offence under Virgin Islands law. 26. INSURANCE Contractor shall maintain the following insurance coverages during the term of this Contract (a) COMMERCIAL GENERAL LIABILITY: Commercial general liability insurance, in a form acceptable to the Government, on a “per occurrence” basis with a minimum limit of not less than one million dollars ($1,000,000.00) for any one person per occurrence for 6 . Contractor’s Initials: ChE Contract No, PO51BIRT22 iia Assistant Attorney General 12/30/2021 12/30/2021 P051BIRT22 Addendum I SERVICES The Contractor will provide the following services: 1. Report Program Generator (RPG) programming to upgrade the tax programs for use for the 2021 income tax year returns. 2. Define 2021 forms and schedules in data base files for data entry of returns and schedules. Provide training as needed to IRB staff in the use of the new tax programs. 4. Upgrade the tax system to allow for the payment of the additional COVID-19 Economic Impact Payments (EIP), as well as provide for the EIP reporting requirements, and duplicate payments reporting. 5. Upgrade the tax system to allow for the payment of the Advance Child Tax Credit and the reporting requirements. 6. Provide support to audit and IT staff as needed. 7. Other programming and consulting services as requested by the Director of the Bureau. DELIVERABLES TASK COMPLETION DATE Programming of 2021 Tax Returns | March 1, 2022 Training for 2021 Returns No more than 15 days after completion of programming Update system to allow for the | No later than December 31, 2021 additional Economic Impact Payments Provide quarterly reports for | 30 days after the close of each quarter based on a calendar Economic Impact Payments year period Update system to allow for the | December 31, 2021 Advance Child Tax Credit payments Provide quarterly reports for the | 30 days after the close of each quarter based on a calendar - Contract No, PO51BIRT22 Advance Child Tax Credit year period Audit and IT Support As requested. 10 day turn around time 8 Contractor’s Initials: CAF Addendum II COMPENSATION The Government, in consideration of the Contractor’s satisfactory performance of the services outlined in Addendum I, agrees to pay the Contractor a sum not to exceed the amount of SEVENTY-FIVE THOUSAND DOLLARS AND ZERO CENTS ($75,000.00). Payment to the Contractor will be based on a $100 per hour fee, based on invoices submitted by the Contractor. The Contractor shall submit invoices to the Bureau on the first day of each month basis. The invoices will detail the nature of the services, the hours utilized to provide the services, and the period of service covered in the invoice submitted to the Bureau. The Government shall use its best efforts to, within thirty (30) days of receipt of an invoice, pay the invoice in full or give a written explanation for the non-payment of any contested portions of the invoice. Failure of the Government despite its best efforts, to respond to an invoice within thirty (30) days of receipt of the invoice shall not be interpreted as an indication that Government no longer desires the Contractor’s services. Contractor’s Initials: CRE Contract No. PO51BIRT22 Contract No. PO51BIRT22 Addendum III The Contractor will adhere to the following Disclosure Procedures pursuant to the provisions of the Internal Revenue Code, which are applicable to the Virgin Islands Bureau of Internal Revenue under the mirror code. For all instances, the agency referenced herein is the Bureau of Internal Revenue. IRC SEC. 7431 CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE OF RETURNS AND RETURN INFORMATION. (a) IN GENERAL.- (1) INSPECTION OR DISCLOSURE BY EMPLOYEE OF UNITED STATES -If any officer or employee of the United States knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of any provision of section 6103, such taxpayer may bring a civil action for damages against the United States in a district court of the United States. (2) INSPECTION OR DISCLOSURE BY A PERSON WHO IS NOT AN EMPLOYEE OF UNITED STATES.-If any person who is not an officer or employee of the United States knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of any provision of section 6103, such taxpayer may bring a civil action for damages against such person in a district court of the United States. (b) EXCEPTIONS.-No liability shall arise under this section with respect to any inspection or disclosure - (1) which results from good faith, but erroneous, interpretation of section 6103, or 10 Contractor’s Initials: COVef (2) which is requested by the taxpayer. (c) DAMAGES.-In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of- (1) the greater of- (A) $1,000 for each act of unauthorized inspection or disclosure of a return or return information with respect to which such defendant is found liable, or (B) the sum of- (i) the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure, plus (ii) in the case of a willful inspection or disclosure or an inspection or disclosure which is the result of gross negligence, punitive damages, plus (2) the cost of the action. d) PERIOD FOR BRINGING ACTION.-Notwithstanding any other provision of law, an action to enforce any liability created under this section may be brought, without regard to the amount in controversy, at any time within 2 years after the date of discovery by the plaintiff of the unauthorized inspection or disclosure. 11 PO51BIRT22 Contractor’s Initials: Lh Contract No. (e) NOTIFICATION OF UNLAWFUL INSPECTION AND DISCLOSURE.-If any person is criminally charged by indictment or information with inspection or disclosure of a taxpayer's return or return information in violation of- (1) paragraph (1) or (2) of section 7213(a), (2) section 7213A(a), or (3) subparagraph (B) of section 1030(a)(2) of title 18, United States Code, the Secretary shall notify such taxpayer as soon as practicable of such inspection or disclosure. (f) DEFINITIONS..-For purposes of this section, the terms "inspect", "inspection”, “return” and "return information" have the respective meanings given such terms by section 6103(b). (g) EXTENSION TO INFORMATION OBTAINED UNDER SECTION 3406.-For purposes of this section- (1) any information obtained under section 3406 (including information with respect to any payee certification failure under subsection (d) thereof) shall be treated as return information, and (2) any inspection or use of such information other than for purposes of meeting any requirement under section 3406 or (subject to the safeguards set forth in 6103) for purposes permitted under section 6103 shall be treated as a violation of section 6103. For purposes of subsection (b), the reference to section 6103 shall be treated as including a reference to section 3406. 12 Contractor’s Initials: Chef Contract No. P051BIRT22 Contract No. PO51BIRT22 CONTRACT LANGUAGE FOR GENERAL SERVICES I. PERFORMANCE In performance of this contract, the contractor agrees to comply with and assume responsibility for compliance by his or her employees with the following requirements: (1) All work will be done under the supervision of the contractor or the contractor's employees. (2) Any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this contract. Information contained in such material will be treated as confidential and will not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Disclosure to anyone other than an officer or employee of the contractor will be prohibited. (3) All returns and return information will be accounted for upon receipt and properly stored before, during, and after processing. In addition, all related output will be given the same level of protection as required for the source material. (4) The contractor certifies that the data processed during the performance of this contract will be completely purged from all data storage components of his or her computer facility, and no output will be retained by the contractor at the time the work is completed. If immediate purging of all data storage components is not possible, the contractor certifies that any IRS data remaining in any storage component will be safeguarded to prevent unauthorized disclosures. 13 Contractor’s Initials: Cry (5) Any spoilage or any intermediate hard copy printout that may result during the processing of IRS data will be given to the agency or his or her designee. When this is not possible, the contractor will be responsible for the destruction of the spoilage or any intermediate hard copy printouts, and will provide the agency or his or her designee with a statement containing the date of destruction, description of material destroyed, and the method used. (6) All computer systems processing, storing, or transmitting Federal tax information must meet the requirements defined in NIST SP 800-53. To meet functional and assurance requirements, the security features of the environment must provide for the managerial, operational, and technical controls. All security features must be available and activated to protect against unauthorized use of and access to Federal tax information. (7) No work involving Federal tax information furnished under this contract will be subcontracted without prior written approval of the IRS. (8) The contractor will maintain a list of employees authorized access. Such list will be provided to the agency and, upon request, to the IRS reviewing office. (9) The agency will have the right to void the contract if the contractor fails to provide the safeguards described above. Contract No, PO51BIRT22 II. CRIMINAL/CIVIL SANCTIONS: (1) Each officer or employee of any person to whom returns or return information is or may be disclosed will be notified in writing by such person that returns or return 14 Contractor’s Initials: Cf? Contract No. OPCMR information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such returns or return information for a purpose or to an extent unauthorized herein constitutes a felony punishable upon conviction by a fine of as much as $5,000 or imprisonment for as long as 5 years, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized further disclosure of returns or return information may also result in an award of civil damages against the officer or employee in an amount not less than $1,000 with respect to each instance of unauthorized disclosure. These penalties are prescribed by IRC sections 7213 and 7431 and set forth at 26 CFR 301.6103(n)-1. (2) Each officer or employee of any person to whom returns or return information is or may be disclosed shall be notified in writing by such person that any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this contract. Information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract. Inspection by or disclosure to anyone without an official need to know constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000 or imprisonment for as long as | year, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized inspection or disclosure of returns or return information may also result in an award of civil damages against the officer or employee [United States for Federal employees] in 15 PO51BIRT22 Contractor’s Initials: CRP _ an amount equal to the sum of the greater of $1,000 for each act of unauthorized inspection or disclosure with respect to which such defendant is found liable or the sum of the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure plus in the case of a willful inspection or disclosure which is the result of gross negligence, punitive damages, plus the costs of the action. These penalties are prescribed by IRC section 7213A and 7431. (3) Additionally, it is incumbent upon the contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a. Specifically, 5 U.S.C. 552a(i)(1), which is made applicable to contractors by 5 U.S.C. 552a(m)(1), provides that any officer or employee of a contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000. Ill. INSPECTION The IRS and the Agency shall have the right to send its officers and employees into the offices and plants of the contractor for inspection of the facilities and operations provided for the performance of any work under this contract. On the basis of such inspection, specific measures may be required in cases where the contractor is found to be noncompliant with contract safeguards. Contract No. 16 PO51BIRT22 Contractor’s Initials: ChKp