IRS ADP Contracts

Pursuant to a congressional request, GAO reviewed several allegations from a constituent concerning the Internal Revenue Service's (IRS) negotiation and administration of certain automatic data processing service contracts to determine whether IRS implemented proper safeguards against contract abuse and waste. GAO noted that: (1) IRS internal audit staff did identify weaknesses in the negotiation of task orders; (2) IRS managers revised procedures to strengthen the negotiation of task order prices, as well as to increase the number of staff assigned to administer the contract; and (3) contract administration remains a concern, and IRS is actively trying to hire additional staff with the technical and engineering qualifications necessary to more effectively review task order proposals.