TOPICS
TOPICS
Firm could lose IRS computer contract over delays
Computer Sciences Corp. stands to lose a government contract because of its creeping pace in modernizing a computer system of the Internal Revenue Service. The New York Times reports that the project, an effort to update the IRS file-keeping computer system, was begun because the agency's dependence on its 1960s-era computer languages makes it difficult to investigate and resolve modern taxpayers' problems.
But the IRS Oversight Board said the project, which is expected to cost $8 billion when completed, has spent less than $1 billion so far yet is already 40 percent over budget.
"What we have here is a five-year track record of absolute consistency of cost overruns and delayed deliveries," said Larry Levitan, chairman of the Oversight Board.
Officials said Computer Sciences Corp. must show improvement before the end of the year or face losing the contract. Paul Cofoni, president of the unit running the project, said a lack of history for past changes and updates to the existing system has delayed the work.
COMMENTS
- Another prime example of the benefits of outsourcing to private companies that which is inherently governmental. AMS screwed up the TSP contract and the government paid them $36 million in settlement. Now CSC is screwing up the IRS contract. However, both of these failures are subcontractors to the big IBM contract in DoD for business modernization. I smell a rat here but nothing is being done about it! GovExec.com reader Posted December 12, 2003 6:38 AM
- With a good application of Earned Value Management to this effort, the overrun would be less since we'd see it coming a lot sooner. Ray Stratton Posted December 12, 2003 12:52 AM
