Public.Resource.org v. United States Internal Revenue Service

Filing 46

MOTION for Summary Judgment filed by United States Internal Revenue Service. Motion Hearing set for 1/7/2015 02:00 PM in Courtroom 2, 17th Floor, San Francisco before Hon. William H. Orrick. Responses due by 9/29/2014. Replies due by 10/29/2014. (Attachments: # 1 Proposed Order, # 2 Declaration of A. Leach, # 3 Declaration of D. Higley, # 4 Declaration of D. Ross, # 5 Declaration of J. Archibald, # 6 Declaration of L. Rosenmerkel, # 7 Declaration of M. Hooke, # 8 Declaration of U. Gillis, # 9 Exhibit 101, # 10 Exhibit 102, # 11 Exhibit 103, # 12 Exhibit 104, # 13 Exhibit 105, # 14 Exhibit 106, # 15 Exhibit 107)(Gelblum, Yonatan) (Filed on 8/13/2014)

Estimate of Retrieval, Redaction, & Delivery of
9 Electronically Filed Forms 990

Business Unit
Staff
Supplies
Software
Total

Cost

Direct Labor

Benefits

Overhead

Total

$3,633.24

$1,017.31

$1,548.48

$6,199.03
$2.27

$3,633.24

$1,017.31

$1,548.48

$6,201.30

$2.27

In response to a request from Counsel, staff of the Research, Analysis and Statistics (RAS) office produced an estimate of the
resources necessary - on an exigent basis - to retrieve from IRS processing database, redact non-disclosable information, and deliver
to a requester nine electronically-filed (XML format) Forms 990. RAS staff took on the estimation task because the TE/GE (Tax
Exempt Government Entities) Exempt Organization division at that time did not staff available with knowledge of the content of the
forms, programming in XML, and electronic production of data suitable for provision to an outside requester. Certain RAS staff were
familiar with those processes because they currently provide programming expertise to TE/GE's Exempt Organization office as one
expert group supporting TE/GE's SEIN (SOI Exempt Image Network) system, a cross-IRS-divisional production process. That
programming expertise is a critical component of the TE/GE operation, but nonetheless, makes up only a small portion of the
personal and IT resources employed by TE/GE for that purpose. The process estimated is one designed to provide the data with
minimum delay. Therefore, the process envisioned here is, by definition, one of short duration - measured in months - because the
analytical experts and subject matter experts in RAS pulled in to provide those copies on the rush basis are not well-suited to
performing those tasks repeatedly and do not make up the type of staff, nor nearly the scale of staff, necessary to perform those
tasks for an indeterminate time and at an substantially larger scale. Further, the IT and programming resources required to perform
the tasks for a longer time and at a larger scale far exceed such resources that could be provided by RAS, a research and analytical
office that does not deploy large-scale filing IT infrastructure. Such a boost in those resources could be provided only by TE/GE
through an allocation of additional IRS resources, possibly traded off against other major IRS demands.
The estimated cost for RAS to retrieve all data for the nine electronically-filed Forms 990, redact non-disclosable and private
information, and reformat the data into XML for delivery on CD is $6,200, or about $690 per return. The estimate includes
redaction and review to prevent the release of non-disclosable taxpayer data or personal information. While this reduces the risk of
releasing such information, it does not remove it entirely.
The costing detailed here only reflects the immediate cost of completing the redaction for nine electronically-filed Forms 990. The
cost does not include the creation of any system or process which would allow for repeated use. Repeated requests would be best
served by a formally developed automated process. Such an endeavor would be owned by TE/GE and would require the
development of program specifications, creation and testing of specialty redaction software, quality review of the resulting output,
and implementation of a public release mechanism. This would not including oversight costs and additional software, hardware, or
measurable computing time that might be required for an automated process. Additionally, to mitigate risk, the automated process
should meet FISMA (Federal Information Security Management Act) requirements and it should be supported by a dedicated,
specialized staff with formal training and infrastructure to ensure the protection of personally identifiable information.

RAS - February 6, 2014

Government
Exhibit
107
_____________

Itemized Task List
Cost

Hours

Series

Software:
XML Spy License Cost
No cost--Enterprise (IRS-wide License for this softw
XML Spy Installation Cost--1st IT Specialist
0.5
GS-0399-04-01
XML Spy Installation Cost--2nd IT Specialist
0.5
GS-2210-13-10
Training:
Redaction Training (Self Study)--1st SME
Redaction Training (Self Study)--2nd SME

3
3

GS-0110-14-05
GS-1530-14-10

Redaction Requirements1, 2:
Redaction Requirements Development
Redaction Requirements Quality Review

24
8

GS-0110-14-05
GS-1530-14-10

Image Review:
Manual Review of Images--1st SME
Manual Review of Images--2nd SME

1.5
1.5

GS-0110-14-05
GS-1530-14-10

Data Pull:
Magnetic Tape Pull--1st IT Specialist
Magnetic Tape Pull--2nd IT Specialist

3
1

GS-2210-12-02
GS-2210-14-10

4.5
2.25

GS-0110-14-05
GS-0110-14-05

2
3
1
1
3

GS-1530-14-10
GS-1530-14-10
GS-1530-14-10
GS-2210-14-10
GS-1531-09-05

0.25
0.1

GS-0110-14-05
GS-1530-14-10

Redaction:
Manual Redaction of XML
Creation of Redacted XML Files
Review:
Quality Review
Privacy Review
Managerial Review--SME Manager
Managerial Review--IT Manager
Clerical Review of Imaged Version
CD Creation:
CD Creation:
CD Verification:
Supplies:
CD Creation
CD and Sleeve Cost
Shipping folder
Postage

$ 0.98
$ 0.47
$ 0.82

Notes:
SME= Subject Matter Expert
1

XML/Data SMEs not previously trained in redaction and would need to review desk guides and IR
In addition to the existing redaction requirements for paper returns, manual XML redaction will
require redaction requirements in addition to those outlined in IRM 3.20.12.2.3. For example, the
XML data include taxpayer filing PINs and other information that should not be released.
RAS - February 6, 2014
2

Instructions: For each project, fill in the required information (light
green cells) on each of the bright red colored tabs. What is entered
here gets fed through to different parts of the workbook. Be sure to
update grade/step/hourly rates annually, as necessary.

Name
1
2
3
4

1

Business Unit:
Agreement type:
Customer:
Agreement / project number
Fiscal year:
Project lead:
RAS Contact:
Date of estimate (current date):

RAS

5

SOI Statistician (DC)
1
SOI Economist (DC)
DMD Supervisory IT Specialist (DC) 1
1
SOI Supervisory Statistician (DC)
1
DMD IT Trainee (DC)

N/A

6

DMD IT Specialist (DC)

Benefits percentage:
Standard overhead rate:

Office
RAS
RAS
RAS
RAS
RAS

Personnel
Position
Economist
Statistician
Management
Management
Trainee

Grade
14
14
14
14
4

Step
10
5
10
10
1

Hourly¹ ²
66.19
57.7
66.19
66.19
16.70

Hours
17.6
35.5
1
1
0.5

28.00%
41.28%

Overhead Expenses (enter N if the cost
does apply, Y if it does not)
ADP Operations:
N
N
Communications:
Y
Equipment Non-ADP:
Y
Leasehold Improvements:
Y
Miscellaneous Expenses:
Y
Moving Expenses:
Y
Printing:
N
Rent:
Y
Service and Supplies:
Y
Space and Housing:
Y
Training:
Travel Operating:
Y

DOJ
N/A
2014
N/A
Ludlum/Rosenmerkel
6-Feb-13

7
8
9

1

RAS

IT Specialist

13

10

56.01

0.5

2

RAS
RAS
W&I

IT Specialist
IT Specialist
Statistical Assistant

14
12
9

10
2
5

60.83
37.44
26.02

1
3
3

DMD IT Specialist (UT)
1
DMD IT Specialist (DC)
2
W&I Statistical Assistant (UT)

¹ http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/14Tables/html/DCB_h.aspx
2
http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/14Tables/html/RUS_h.aspx

RAS - February 6, 2014

Business Unit

RAS

Agreement Type
Requesting Agency or Customer
Agreement Number
Fiscal Year Period of Performance
Date of Estimate:

N/A
DOJ
N/A
2014
2/6/13

1

Direct Labor
Direct Non-Labor 2
3
Indirect Cost
Total Agreement Costs

$4,650.55
$2.27
$1,548.48
$6,201.30

Overhead Rate
33.30%

1

Labor directly attributed to completing the work.

2

Material directly attributed to completing the work

3

Total Labor and Non-Labor Overhead costs calculated on Overhead Worksheet

Detailed Direct Cost Breakdown
Direct Labor

BU Offices
RAS
RAS
RAS
RAS
RAS
RAS
RAS
RAS
W&I

1
2
3
4
5
6
7
8
9

Employee Name
Economist
Statistician
Management
Management
Trainee
IT Specialist
IT Specialist
IT Specialist
Statistical Assistant

Benefits

GS
14
14
14
14
4
13
14
12
9

Step
10
5
10
10
1
10
10
2
5

Basis of Estimate
Hourly
Hourly
Hourly
Hourly
Hourly
Hourly
Hourly
Hourly
Hourly

Labor
Hours/Days Rate or Direct Labor
Cost
/Months
Time
17.6
$66.19
1,164.94
35.5
$57.70
2,048.35
1
$66.19
66.19
1
$66.19
66.19
0.5
$16.70
8.35
0.5
$56.01
28.01
1
$60.83
60.83
3
$37.44
112.32
3
$26.02
78.06

28% of Salary

1,017.31
4,650.55

Total
Direct Non-Labor
BU Offices
1
2
3
4
5
6
7
8

RAS
RAS
RAS

Description
CD and Sleeve Cost
Shipping folder
Postage

Basis of Estimate

Quantity
1
1
1

Rate
$ 0.98
$ 0.47
$ 0.82

Total

Total Direct
Materials
$
0.98
$
0.47
$
0.82

$

2.27

RAS - February 6, 2014

FY 2014 Reimbursable Overhead Worksheet
Business Unit:
Reimbursable Name:
Direct Labor Cost:

RAS
Estimate of Retrieval, Redaction, & Delivery of 9 Forms 990
$ 4,650.55

Category considered for exemption

Exemption
Yes or No

Labor- Sustaining Organizations
Agency-Wide Shared Services
Communications & Liaison
Chief Financial Officer
Executive Leadership & Direction
Human Capital Officer
Information Technology
Privacy, Governmental Liaison, & Disclosure
Unemployment Compensation
Non-Labor
ADP Operations
Communications
Equipment Non-ADP
Leasehold Improvements
Miscellaneous Expenses
Moving Expenses
Printing
Rent
Service and Supplies
Space and Housing
Training
Travel Operating

Standard
Overhead Rate

Customized
Overhead Rate

Overhead
Cost

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

16.28%
2.89%
0.19%
0.42%
0.92%
1.60%
8.76%
0.43%
1.06%

16.28%
2.89%
0.19%
0.42%
0.92%
1.60%
8.76%
0.43%
1.06%

757.07
134.19
8.77
19.64
42.99
74.45
407.48
20.16
49.40

No
No
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes

8.10%
2.22%
0.08%
0.24%
1.83%
0.00%
0.22%
6.69%
3.32%
1.80%
0.30%
0.20%
41.28%

8.10%
2.22%
6.69%
33.30%

Reason for Exemption

376.67
103.40
0.00
0.00
0.00
0.00
0.00
311.35
0.00
0.00
0.00
0.00
1,548.48

Total Percentage of Overhead
Full Exemption (to request a full exemption, please provide justification below.

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Signature

Jason Bumiller
Director, Budget Execution
Corporate Budget

RAS - February 6, 2014