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IRS to overhaul its system

A team of information services firms are competing with Lockheed Martin for a $3 billion systems modernization contract.

Information technology consulting firm Computer Sciences Corporation (CSC) has put together a team of information services firms in pursuit of the Internal Revenue Service's Modernization PRIME Integration Services contract.

The estimated $3 billion, 15-year project aims to revamp the entire infrastructure of the IRS information systems organization. This goal includes better online access to tax returns, better customer service via telephone and the Internet, and better access to electronic filing. The team awarded the contract will also work to address the Year 2000 bug.

The CSC team, which includes information technology professionals from IBM, Northrop Grumman, SAIC, and Unisys, will be competing with a team headed by Lockheed Martin, said Bruce Plowman, spokesman for CSC.

The IRS requires that teams submitting proposals meet certain criteria, including available working capital of at least $200 million, as well as demonstrated program management and systems integration experience.

Plowman expects the IRS will put out a request for proposals within the next three months.

CSC had $5.8 billion in revenues last year. The company has nearly 44,000 employees.