Business Systems Modernization: IRS Needs to Complete Recent Efforts to Develop Policies and Procedures to Guide Requirements Development and Management

In January 2008, IRS provided us a briefing and documentation on policies, procedures, and tools for developing and managing project requirements developed by its Business Rules and Requirements Management office in response to our recommendation. Specifically, IRS developed (1) a standardized process for the elicitation of requirements; (2) a standardized process for the documentation of requirements; (3) a process for ensuring that formal peer reviews are planned and completed for key requirements; (4) guidance on tracking cost and schedule impacts of changes to requirements; and (5) guidance on establishing and maintaining full bidirectional requirements traceability. We have reviewed these documents and found that they address our recommendations. The Business Rules and Requirements Management office has also been implementing the new policies and procedures by providing support to multiple projects throughout the IRS, including the Customer Account Date Engine (CADE), Accounts Management System (AMS), and Modernized eFile systems. For example, IRS stated that the new requirements development and management policies, procedures, and tools were used for CADE Release 5 and that the requirements office is providing support and/or consultation services to three AMS releases. By developing and implementing these policies and procedures and supporting tools, IRS will now be able to more effectively develop and manage project requirements for the acquisition of critical systems.

The Senate Appropriations Subcommittee on Transportation, Treasury, the Judiciary, HUD and Related Agencies requested that we assess (1) whether the Requirements Management Office (RMO) has established adequate requirements development and management policies and procedures and (2) whether BSM has used effective requirements development and management practices for key systems development efforts. GAO completed this work and recommended that IRS develop and implement new policies and procedures addressing all areas of requirements development and management, and that draft policies and procedures be implemented while the detailed policies are being developed. IRS concurred with this recommendation and agreed to implement the draft policies and procedures as interim guidance while completing development of more detailed policies and procedures for requirements development and management. These interim policies and procedures are made available for BSM projects through its Business Rules and Requirements Management online repository.