Cartts, Inc. has proposed developing a prototype to meet requirements of the Affordable Care Act (ACA) mandated by the IRS. The prototype would demonstrate an end-to-end process to extract, analyze, and present data from disparate sources to analyze ACA requirements. The proposal outlines constructing sample databases, populating them with test data, extracting data into a data warehouse for analysis, and presenting results. The proposed prototype budget is $7,597,680 and would consist of building the prototype system over 49320 hours of labor in areas such as project management, software development, and testing.

1. Cartts, Inc. Confidential and Proprietary Information Page 1 of 7
December 23, 2013
CARTTS, INC.
Proposal For
Affordable Care Act
Functional Concept Prototype
Statement of Confidentiality
The contentsof this document and associated attachments are hereby deemed to be confidential and
proprietary. The use of any information contained in this document, (i.e., the process, charts, graphs,
tables, text, and diagrams) for any reason other than for the evaluation and analysis of the proposed
solutionhereinbyCartts,withoutthe written permission of Cartts, or its designated representative, is
strictlyprohibitedanda violation of federal law. This analysis includes data that shall not be disclosed
withoutthe consentof the company’sprincipals. The data shall not be duplicated, used, or disclosed -
in whole or in part - for any purpose other than to evaluate the validity of the technical offering or
providing financial support.

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Introduction
Cartts is proposing the development of an end-to-end Prototype Project that would meet the
requirementsmandatedtothe IRSbyvirtue of the implementation of the ACA. This “Straw-Man”
prototype version of the solution would be the most prudent initial approach and provide the
necessarydemonstrable capabilities, as well as identify potential functionality and engineering
alternatives that would help to justify moving forward with a full Pilot.
The Problem
Implementation of the Affordable Care Act (ACA) of 2010 presents a major challenge to the IRS.
ACA represents the largest set of tax law changes in more than 20 years, with more than 40
provisionsthat amend the tax laws. Although the new law goes into effect gradually over many
years,manyprovisionsrequired immediate action, including the Small Business Health Care Tax
Credit, the Qualifying Therapeutic Discovery Credit, and the expanded Adoption Credit.
The collection of this data is the problem for the IRS and most conventional data collection
agencies. The data in most repositories reside in flat files that are generally relational in nature
thereby limiting data examination and analysis. The Cartts solution offers the IRS three-
dimensional data analysis capability to view data in real time allowing trending and predicting
relationstofuture periodswitha great degree of accuracy. This flexible, scalable, real time data
analysissolutioncanbe usedforthe ACA projectas well asapplicationsacrossmultiple industries.
The Solution
The contextdrawingbelow illustratesthe functional conceptprototypeof the end-to-end process
that we will build to demonstrate feasibility to the IRS and other relevant clients. Figure 1,
Functional Concept Diagram, graphically depicts the functionality of the proposed prototype
project as it relates to the overall functional requirements of a full pilot system.
Figure 1, Functional Concept Diagram

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Figure 2, Process Flow Diagram, depicts the end-to-end processes to be constructed and
demonstrated by the initial Prototype Project. The internal processes as identified by the
prototype will alsobecomethe core of a full PilotProjectthatwill be scaledtomeetthe increased
external requirements of government agencies, as well as health industry and other relevant
commercial entities.
Figure 2, Process Flow Diagram
Scope
The Prototype Work Breakdown Structure (Table 1, below) illustrates the tasks to be performed
within the scope of this effort. In Summary, the following tasks are envisioned:
 Construct 3 databases of the following types: SQL, Oracle, and Flat Files. These are the
“source” databases that will simulate the myriad of disparate databases that must be
accessed in order to obtain the necessary data for ACA requirements analysis.
 Populate the databaseswithsampledatathatcan be usedto demonstrate the functionality
of extracting, transforming and loading the disparate source information into a SQL data
warehouse that can be utilized for business requirements analysis.
 Basedon businessrules,extract the necessary data from the data warehouse into an OLAP
cube and process it accordingly.
 Utilizingthe BusinessIntelligence tools,extractandanalyze the pertinentdata from the SQL
database
 Present analysis results to appropriate sources for further processing.

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Task Name
Define ProjectScope
Brief StakeholderandTeamonFunctional Scope
Gain CommitmentonFunctionalScope
Start Project
Task Orientation
DevelopBusinessOperational Scenarios
ReviewRequirementDocumentation
ReviewACA functional RequirementsDocument
DevelopFunctional BusinessOperational Scenarios
ConductTeam andStakeholderReviews
DocumentDiscrepanciesandIssues
Resolve IssuesandRevise BusinessScenarios
PublishBusinessOperationalScenarios
DevelopRequirementSpecification
Analyze Requirements
AssignRolesandResponsibilities'forTeam
DevelopFunctionalityMatrix
Schedule PeerReviews
Staff KeyPositions
Schedule ProgressReviews
Initiate DevelopmentProcess
DevelopSystemTest Plans
ReviewBusinessOperationalScenarios
ReviewProjectRequirementSpecificationDocument
Write SystemIntegrationTestplan
Write SystemsPerformance TestPlan
Write SystemsLoadTest Plan
ConductTeam andStakeholderReviews
PublishSystemTestPlan
DevelopSystemData
Secure Data Dictionaryforeach database associatedwithPrototype
BuildDatabase EntityDiagram
DevelopDatabase documentation
Validate Data
Construct Operational Platform
Validate EngineeringBuildof Materials
OrderEBOM
Receive EBOM

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InventoryEBOMvalidate correctness
DocumentDiscrepancies
ConstructOperational Platform
Load Applicationsandfirmware
ConductinteroperabilityEvaluationof Operational Platform
ConductUnit Testing
ConductPeer-toPeerReviews
DocumentandRecord DiscrepanciesandIssues
DevelopAlternativesandResolutions
ReviewStatuswithTeamandStakeholder
ConductModule Testing
ConductPeer-toPeerReviews
DocumentandRecord DiscrepanciesandIssues
DevelopAlternativesandResolutions
ReviewStatuswithTeamandStakeholder
Prototype Testing
ConductSystemsIntegrationTesting
ConductSystemsPerformance Testing
ConductSystemLoadTesting
DocumentTestingResults
ReportResults
Conduct Demonstrationof Prototype Capabilityto Team and Stakeholders
End Project
Table 1, Prototype Work Breakdown Structure Summary
Budget
Figure 3, Prototype Cost Summary, provides a breakdown of costs for the initial prototype based
on the scope as defined above.
Labor Category Hours Rate Cost
ProjectManager 720 $ 180 $ 129,600
Technical Lead 1440 $ 150 $ 216,000
SubjectMatter Expert 720 $ 200 $ 144,000
SubjectMatter Expert 720 $ 200 $ 144,000
SeniorAnalyst(3) 4320 $ 150 $ 648,000
Lead Software Developer 1440 $ 120 $ 172,800
Software Developer(2) 2880 $ 90 $ 259,200
Software Developer(2) 2880 $ 90 $ 259,200
Software Developer(2) 2880 $ 90 $ 259,200
Database Engineer(3) 4320 $ 120 $ 518,400
Software Integrator(3) 4320 $ 120 $ 518,400
Technical Analyst(2) 2880 $ 90 $ 259,200
SecurityEngineer(2) 2880 $ 120 $ 345,600

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NetworkEngineer(2) 2880 $ 90 $ 259,200
Data-WarehousingSpecialist(2) 2880 $ 120 $ 345,600
QualityAssurance Engineer(2) 2880 $ 70 $ 201,600
TestEngineer(3) 4320 $ 90 $ 388,800
Technical Writer(2) 2880 $ 55 $ 158,400
Contract Admin 720 $ 45 $ 32,400
Consultant 360 $ 150 $ 54,000
Other 0 $ - $ -
Labor Totals 49320 $ 5,313,600
Burden / Other Labor Costs
Fringe 10% $ 531,360
General & Administrative 10% $ 531,360
Overhead 10% $ 531,360
Total Other Labor Costs 30% $ 1,594,080
ESTIMATED Other Costs
Software
Software Line Item1 $ 60,000
Software Line Item2 $ 30,000
Software Line Item3 $ 20,000
Software Subtotal $ 110,000
Hardware
Hardware Line Item1 $ 200,000
Hardware Line Item2 $ 150,000
Hardware Line Item3 $ 100,000
Hardware Subtotal $ 450,000
Subscriptions/Fees
Subscriptions/FeesLine Item1 $ 60,000
Subscriptions/FeesLine Item2 $ 40,000
Subscriptions/FeesLine Item3 $ 30,000
Subscriptions/FeesSubtotal $ 130,000
Other Costs Total $ 690,000
Total Prototype Project Budget $ 7,597,680
Figure 3, Prototype Budget Summary

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Appendix E
Proposal Signature Page
CERTIFICATION OF AUTHORIZED PARTIES
The Proposer submits that the information contained herein is true, accurate and complete; and
upon acceptance of the proposal by Pitney Bowes, the proposer will enter into an Agreement
with Pitney Bowes to effectuate the execution of the terms of the Proposal
The undersigned hereby certify that they are duly and legally authorized on behalf of their
respective organizations to execute the terms of this proposal.
Proposed By: Cartts, Incorporated
Signature: ________________________________
Name of Signatory: Homer D Betts
Title of Signatory: President
Date: December 8, 2011
Accepted By: Pitney Bowes
Signature: ________________________________
Name of Signatory: ________________________________
Title of Signatory: ________________________________
Date: December 23, 2013