Case Studies of Successful Public Private Partnership Programs in e-Government
Presented to The World Bank Conference on e-Gov PPPJune 25, 2008
Dean Merrill, Vice President Consulting
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Among largest independent IT
and BPS providers
Among largest independent IT
and BPS providers
100+ proprietary business solutions
100+ proprietary business solutions
Founded in 1976Founded in 1976
100+ offices serving clients in
16 countries
100+ offices serving clients in
16 countries
Revenue run rate of CDN $3.7B (1)Revenue run rate of CDN $3.7B (1)
Global delivery model – onshore,
nearshore, offshore
Global delivery model – onshore,
nearshore, offshore
Client satisfaction score of 8.8 (2)
Client satisfaction score of 8.8 (2)
End-to-end services
End-to-end services
Approximately 26,500
professionals
Approximately 26,500
professionals
Focused industry expertise
Focused industry expertise
(1) Q12008 results, ending December 31, 2007(2) 2007 ranking out of 10; part of CGI’s ISO 9001:2000-certified Client Partnership Management Framework
CGI Today
A world-class IT and BPS leader
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Public Private Partnership (PPP) and Benefits Funding Approach
Public Private Partnership GICT World Bank Presentation: “A public private partnership can
be defined as an agreement between government and private entities for the purpose of delivering a project or service, by sharing of risks and rewards of the venture.”
Benefits-funding is a type of PPP CGI has performed successfully Refers to vendors being paid as technology and process
investments lead to revenue benefits beyond an established baseline.
Traditional Projects and deliverables paid through increased revenue (Funds qualitative and quantitative improvements)
Fixed price, not revenue sharing Partnership arrangements between public and private sectors as
with other PPPs (e.g, shared savings, outsourcing and other performance based approaches).
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CGI in Tax & Revenue ManagementBenefits Funded Projects in the U.S.
CGI Footprint in Revenue Agencies
Internal Revenue Service
Kansas$182 Million
Kansas$182 Million
Virginia$231 Million
Virginia$231 Million
Grand Total$1.55 BillionGrand Total$1.55 Billion
Missouri$55 MillionMissouri
$55 Million
California$570 Million$176 Million$41 Million$37 Million
California$570 Million$176 Million$41 Million$37 Million
Hawaii$252 Million
Hawaii$252 Million
Canada Revenue Agency
Benefits Funded projects
Australian Tax Office Other Tax and Revenue projects
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Benefits Estimation and Measurement
Benefits Estimation Based on detailed analysis Derived from programmatic changes that will be proposed for
the project Calculated by extrapolating from similar implementations in other
States Intended to be conservative and achievable
Benefits Measurement Requires a more detailed analysis Needs to be defensible to external scrutiny Will provide monthly measures of the specific increases in
revenue over a defined baseline due to the project
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Guiding Principles for Estimating Benefits in Tax and Revenue
Financial benefits typically come from overall improved tax compliance
Improvements in audit and collections typically drive benefits-funded programs
Changes in voluntary compliance are significant, but are difficult to measure in a way that is auditable and can withstand public scrutiny
The significant efficiencies in operations will be utilized within the department to improve customer service
Desirable to fund the project during the project life-cycle Partners must be committed to success
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Guiding Principles for Benefits Measurement
State tax agencies, by their very nature, are very much in the public eye
When a State tax agency undertakes a benefits funded project it must be able to withstand the highest level of public scrutiny
The benefits measurement methodology must therefore be a clear, conservative, defensible depiction of identifiable benefits
Important to plan and achieve quick wins
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Case Study:CGI and the Franchise Tax Board
Faced with significant budget gaps in the early 1990’s
Estimated tax gap of $2.7 Billion Identified significant opportunities, but
could not get approval to proceed
Solution:Look for strategic partners to share the risks and rewards
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Success Highlights
CAPS (Business Collections) - $37 M in first year, paid for itself in 45 days
BETS (Business Tax) - $11 M in new revenue Added important data sources for FTB’s Compliance
Programs PASS (Audit Data Warehouse) - $176 M in increased
revenue for California Supports more than 800 staff
ARCS (Personal Collections) - $570 M in increased revenue for California Utilizes risk models to maximize staff effectiveness
INC (Non Filer) - Generates annual revenue increases in excess of $36 M per year
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Another California Example
California Child Support Project: teaming the State, IBM, Accenture, and CGI in implementing a Statewide Child Support System
California just received their certification of the system which resulted in a penalty rebate of $193M. A portion of the project is paid based on programmatic performance improvements such as increased collections.
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Case Study: Single Window of Government
“If 20 agencies are improving their service to a citizen by moving it online, but not working together, it still means the citizen has to walk through 20 doors. It
just digitizes the confusion”
Mark Forman, Associate Director for IT and e-GovernmentUS Office of Management and Budget
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Environment & L.G.
Case Study: New BrunswickService Delivery Model
DNRE
Health
Finance
Education
Public Safety
OTC
Call CentreWEB
Customers
Service New Brunswick
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Service New Brunswick and CGI
Millions of transactions with citizens and business
Collecting hundreds of millions dollars on behalf of 16 departments and over 40 Municipalities
Hundreds of different Web based services
42% of transactions through electronic channels
« Single Window » access to government services
Front office and back office processes
It was estimated the net economic benefit to the province in 2002 was C$141 Million equivalent to .72% of the provincial GDP
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Case Study: Commonwealth of VirginiaBusiness Challenges
Concern over Virginia’s revenue administration Critical state auditor report in 1993 Lack of efficiency, poor public image
Aging technology infrastructure Inflexible tax administration software tools Data entry, remittance, microfilm and mail opening equipment
obsolete and beyond repair
Existing processes and systems could not support customer-centric vision for revenue and collections management
Severe budget constraints
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Case Study: Commonwealth of VirginiaEnd State Vision and Approach
Six-year program undertaken to re-engineer all business processes, applying technology where appropriate
New customer-centric practices reinforced with next generation technology
Integrated end-to-end program strategy: eGov self service Financial and revenue management systems Organizational design, change management, & training
Benefits funded partly through improved collections: Risk/behavior modeling and development of decision analytics
via Strata CACS for collections case management CRM and contact management
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Case Study: State of Virginia-Results
More than $230 million in additional revenue collected ─ with no additional cost to taxpayers
More than 336,000 individuals and 59,000 businesses filed $970 million in tax returns via iFILE through VATAX’s Web site
Fifty percent of new businesses have registered online through iREG, with more than:
480,000 documents accessed through the Policy Library
452,000 filings through Telefile
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Thank You: Contact for More Information
Dean C. Merrill
Vice President Consulting
U.S. Central South
Virginia Strategic Account
703-267-8053 [email protected]
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