IRS to Issue Awards for $2.6B App Development Contract in Early FY 2023

The Internal Revenue Service is gearing up for the awarding of its application development and modernization contract in the first quarter of fiscal year 2023. A formal request for quotation is set for release in June 2022.

The planned Enterprise Development, Operations Services contract will unify the 400-plus systems comprising the IRS’ applications development portfolio, FedScoop reported.

According to an agency presentation at a recent Professional Services Council event, the deal is anticipated to have a $2.6 billion ceiling and a seven-year period of performance.

The presentation further states that EDOS aims to address forthcoming legislation requiring the modernization of decades-old assembly language code-based systems used by the IRS.

The agency has been meaning to update its aging computer systems, with one of its most important tax-processing applications dating back to the 1960s. The app in question, called The Individual Master File, hosts data from 1 billion taxpayer accounts from 60 years ago and is mainly used for receiving individual taxpayer data and dispensing refunds. Problems with the IMF could disrupt tax processing nationwide, Nextgov said in a 2018 report.

Contractors selected for EDOS will perform development, modernization and enhancement work; project and program management; agile portfolio management; sustainment operations and maintenance; upgrades and configuration management; and transition services.

IRS will leverage rapid procurement approaches for EDOS, which is expected to include small businesses.