IRS News Release  
October 02, 1997

IRS Releases Modernization
Request for Proposal

WASHINGTON - The Internal Revenue Service released on schedule yesterday a draft Request for Proposal (RFP) for a prime systems integration services contractor for IRSūs computer systems. This prime contractor would provide systems development and integration capabilities needed to implement IRS' Modernization Blueprint, which was submitted to Congress in May.

"Everyone agrees that having the appropriate technology is essential to providing the good customer service that the American taxpayer deserves," said acting Commissioner Michael P. Dolan.

The blueprint has five phases. The initial phase focuses on the systems the IRS needs to give taxpayers easier access to the IRS either by telephone or over the Internet, and to give IRS customer service representatives access to all account information they need to resolve taxpayer account issues accurately, completely and timely. It also provides for improved systems and data security to permit access to only those employees with a "need to know" to assist taxpayers.

Building these systems will cost approximately $333 million over five years. These systems will provide the infrastructure for future modernization. The remainder of the approximate $640 million cost for this part of the blueprint would cover maintenance and support costs over the following ten years. However, since bidders are expected to evaluate the specifications and costs as part of the contract, the dollar amount could change.

"The timely issuance of the RFP is another important milestone in systematically moving the Modernization program forward," said Dolan.

The IRS expects to issue the final RFP on Jan. 15., 1998, after receiving comments from the technology industry and other stakeholders. The draft RFP is available on the Treasury Department's website at

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