/ Constantine Johnny

IRS starts the bidding for $1.9B IT services recompete

The tax collection agency is undertaking this recompete amid its broader push to overhaul the entire tech environment, which includes systems first stood up in the 1960s.

The Internal Revenue Service has opened the window for industry to start working on and submitting bids for a potential seven-year, $1.9 billion blanket purchase agreement covering enterprise IT and related professional support services.

Quotes for the multiple-award Enterprise Program Project Integration System BPA are due to the IRS by 12 p.m. Eastern time on Dec. 11, the tax agency said in a Tuesday notice.

Work will take place amid the broader agency's push to overhaul its entire technology environment with the $80 billion it received from the Inflation Reduction Act in 2022.

Many of the IRS' core tax systems and databases were stood up in the 1960s, while the agency also wants to lean in heavier on data and analytics to inform its auditing and compliance efforts.

The so-called EPPIS BPA is the successor to the current iteration known as “IT-EMPSS,” which the IRS awarded in 2019 to nine companies at a $1.1 billion ceiling. The last date to order is May 14, 2024.

The IRS has obligated approximately 26% of that ceiling to-date or $271 million in total, according to GovTribe data. Deloitte has been by far the largest recipient of that spend at $176 million with ETelligent Group next at $53 million.