TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
STRONGER MANAGEMENT OVERSIGHT IS REQUIRED TO ENSURE VALUABLE SYSTEMS MODERNIZATION EXPERTISE IS RECEIVED FROM THE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER CONTRACTOR
Issued on October 20, 2006
Highlights of Report Number: 2007-20-002, to the Internal Revenue Service Chief Information Officer.
IMPACT ON TAXPAYERS
A sample of work products delivered by the contractor contributed significantly to the IRS modernization effort, and IRS officials were satisfied with the contractor’s performance in several areas. However, required annual assessments are not being completed timely, performance criteria are undefined, and requirements to document the contractor’s performance are lacking. Without strengthened management oversight, the contractor could deliver products and services that do not meet cost, schedule, and quality goals leading to wasteful spending of taxpayer funds.
WHY TIGTA DID THE AUDIT
Revenue Service (IRS) is currently conducting a multiyear, multibillion dollar
effort to update its core business systems, known as Business Systems
Modernization. To facilitate the
modernization effort, the IRS hired a Federally Funded Research and
WHAT TIGTA FOUND
TIGTA determined a sample of 25 work products delivered by the contractor contributed significantly to the IRS modernization effort. In addition to delivering valuable products, the contractor provides advice and counsel, which IRS officials use to make critical decisions related to the modernization program. TIGTA asked key IRS officials responsible for monitoring the contractor’s performance to rate the quality and timeliness of advice and counsel provided by the contractor and the overall expertise of contract officials. IRS officials indicated they were satisfied with the contractor’s performance in these areas.
To ensure the contractor continues to meet the IRS’ needs, the IRS should monitor more effectively the contractor’s performance in terms of timeliness, quality, and cost. For example, the IRS does not prepare a Task Order Monitoring Plan, a practice commonly employed for modernization task orders, for this contractor’s task orders. A Task Order Monitoring Plan describes the various Government roles and responsibilities for monitoring and documenting the contractor’s performance against timeliness, quality, and cost goals. While a Task Order Monitoring Plan is not required, TIGTA believes this is a very good practice for ensuring the continual monitoring of a contractor’s performance. Also, required annual assessments are not being completed timely, performance criteria are undefined, and requirements to document the contractor’s performance are lacking.
WHAT TIGTA RECOMMENDED
To ensure the value received from contractor activities
remains high and funds are spent wisely, TIGTA recommended the Chief
Information Officer develop a Task Order Monitoring Plan for the Federally
Funded Research and
The Chief Information Officer
agreed with our recommendation and will develop monitoring plans for Federally
Funded Research and
READ THE FULL REPORT
To view the report, including the scope, methodology, and full IRS response go to:
Email Address: Bonnie.Heald@tigta.treas.gov
Phone Number: 202-927-7037
Web Site: http://www.tigta.gov