March 20, 1992
IRS Confirms Award of
Computer Contract to AT&T
WASHINGTON - The Internal Revenue Service today confirmed the
award of the Treasury Multiuser Acquisition Contract (TMAC) to AT&T.
IRS awarded the $1.4 billion contract for computer equipment and
services that will support tax systems modernization to AT&T in
July, 1991. The award was protested and returned to IRS for
additional analysis and reconsideration.
IRS said that its decision to confirm the award was based on an
in-depth analysis of the three different TMAC proposals offered by
AT&T, IBM and Lockhead Missiles and Space Co., Inc. While the cost
of the AT&T proposal was the highest of the three, it represented
the best value to the government when all factors, including
technical capabilities, management and support services, the risk of
future additional costs, and the impact on productivity of the IRS
user workforce were considering for each of the three different
According to the terms of TMAC, AT&T will provide IRS with
systems mae up of multiple workstations networked to mini-computers,
including necessary computer terminals, peripherals, local area
networks, software and support services such as systems integration,
user training and maintenance. The software includes text search
and retrieval, financial accounting and office automation.
IRS said it can potentially acquire more than 3,000 mini
computer-based systems hosting potentially more that 50,000
workstations. These systems will be use as part of the IRS Tax
Systems Modernization Program that will enable IRS to perform
virtually all aspects of tax information processing in a fully
integrated electronic environment, eliminating current reliance
procurement under TMAC in as little as sixty days.
IRS and other bureaus of the Treasury Department will be able
to acquire equipment under TMAC for five years, and support services
for seven years.
The TMAC analysis was conducted by a panel of IRS and
independent experts in response to the General Services Board of
Contract Appeals (GSBCA) ruling that upheld protests by IBM and
Lockhead of IRS' award to AT&T last July. The GSBCA ruling said that
IRS did not adequately justify awarding TMAC to the highest priced
The GSBCA ruling said IRS could perform a suitable analysis and
then either confirm its award to AT&T or award to another of the
three bidders, or reopen the procurement solicitation process.
IRS said it will schedule an executive level debriefing with
each vendor and an in-depth group presentation to all vendors. The
debriefings will be provided by IRS to ensure understanding of the
process used in considering proposals and to give vendors feedback
that they may use in preparing for future Treasury and other federal
Previous | Next
1992 IRS News Releases | News Releases Main | Home