Tax Systems Modernization: Blueprint Is a Good Start But Not Yet Sufficiently Complete to Build or Acquire Systems

To define and implement its System Life Cycle, IRS adopted and tailored a commercially available life-cycle management methodology for use in IRS's environment. IRS refers to the tailored methodology as its Enterprise Life Cycle (ELC). The ELC is to provide IRS with a disciplined and institutional approach for managing its information technology investments throughout their life cycle--from conception, development, and deployment through maintenance and operation. IRS completed the definition of the ELC in April 2001, and subsequently completed ELC implementation in June 2002.

In March 2000, IRS initiated efforts to complete its enterprise architecture (EA). These efforts included (1) updating business requirements via vision and strategy working groups established to restructure and reengineer IRS business areas, and (2) integrating vision and strategy results with efforts to specify the technology framework within which to modernize the systems to support IRS business areas. IRS planned to develop and issue the EA in 3 releases (1.0, 1,1, and 2.0). Each release was intended to provide incrementally more architectural definition and utility. IRS issued EA 1.0 and 1.1 in January 2001 and June 2001, respectively.

In conjunction with its efforts to develop versions 1.0 and 1.1 of its Enterprise Architecture (EA), IRS developed a revised modernization sequencing plan--referred to as a release plan by IRS--for deploying modernized systems and retiring existing capabilities. The revised release plan currently defines the timing, costs, and benefits of future near-term modernization projects planned to be deployed by fiscal year 2003. As part of its efforts to develop EA 2.0, IRS plans to update the release plan by the end of calendar year 2001, to include a plan to address the enterprise transition strategy for fiscal years 2004 through 2006, as well as a long-term plan for fiscal year 2007 and beyond. The release plan is to be incrementally updated in future expenditure plans with more specific cost and benefit information as projects are initiated and business case justifications are developed.

In response to this recommendation, IRS (1) developed processes for validating Enterprise Architecture (EA) releases, and (2) incorporated this process guidance in its ELC methodology. The processes include circulating the EA to affected IRS business owners for review and comment. The guidance also specifies engaging IRS' Federally Funded Research and Development Center contractor (MITRE) to assess the completeness and adequacy using specified process and quality standards. IRS reports that it followed these validation processes during the development of EA releases 1.0 and 1.1 and plans to do the same during the development of EA 2.0.

According to IRS, the CIO is responsible for developing, implementing, and enforcing life-cycle management processes and products across IRS. IRS plans to have the ELC methodology implemented on all modernization projects by mid-2002. Once the ELC is fully implemented, the CIO will be able to enforce ELC policies and processes on all IRS systems development and maintenance efforts.

Effective October 1, 1998, the Commissioner designated IRS' CIO as the official responsible for managing and controlling all Information Systems (IS) budgetary resources, including those allocated to the Regional and Service Center IS organizations. According to IRS officials, the agency provided the CIO complete organizational authority over all IS components via a Delegation of Authority order dated November 17, 1999.

In June 2002, IRS completed the implementation of mature systems life-cycle processes via its Enterprise Life Cycle. From 1998 to 2002, GAO reviewed IRS's annual information technology budget requests and found that IRS had limited them to cost-effective efforts that support ongoing operations and maintenance.

In June 2002, IRS completed the implementation of mature systems life-cycle processes via its Enterprise Life Cycle. From 1998 to 2002, GAO reviewed IRS's annual information technology budget requests and found that IRS had limited them to cost-effective efforts that support ongoing IRS efforts to instill requisite system life cycle management discipline, including completing and enforcing the architecture, institutionalizing disciplined software development and acquisition processes, and improving technology investment management.

In June 2002, IRS completed the implementation of mature systems life-cycle processes via its Enterprise Life Cycle. From 1998 to 2002, GAO reviewed IRS's annual information technology budget requests and found that IRS had limited them to cost-effective efforts that are small, represent low technical risk, and can be delivered in a relatively short time frame.

In June 2002, IRS completed the implementation of mature systems life-cycle processes via its Enterprise Life Cycle. From 1998 to 2002, GAO reviewed IRS's annual information technology budget requests and found that IRS had limited them to cost-effective efforts that involve deploying already developed systems.