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 proposals.

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 bidder.

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

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