IRS Contracting:

New Procedure Adds Price or Cost as a Selection Factor for Task Order Awards

GAO-03-218: Published: Dec 10, 2002. Publicly Released: Jan 9, 2003.

Additional Materials:

Contact:

Michael Brostek
(202) 512-9039
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

The Internal Revenue Service (IRS) is in the midst of a massive effort to reorganize its structure and modernize its technology. To help with this effort, IRS obtains services through task orders under its Treasury Information Processing Support Services (TIPSS-2) contracting program. In this study, GAO reviewed the 6 largest competitive task orders that IRS awarded between July 1, 2001 and December 31, 2001 to determine if IRS used price or cost as a selection factor in the award of these task orders.

TIPSS-2 is IRS's largest service contracting program, obligating $543 million to 18 contracts from its beginning in June 2000 to June 20, 2002. Through the award of TIPSS-2 task orders, IRS obtains needed services in the areas of information systems, telecommunications, organizational/management, and operational support. IRS can continue ordering services under TIPSS-2 contracts into 2005. GAO found that IRS's procedures used in the award of competitive task orders under the TIPSS-2 program did not require contracting officers to consider price or cost as a selection factor in the award of task orders. Although contracting officers could have considered price or cost at their discretion, they did not for 5 of 6 competitive task orders GAO reviewed. IRS's procedures conformed to the version of the Federal Acquisition Regulation (FAR) that was in effect at the time the TIPSS-2 solicitation was issued. However, since then the FAR was changed. TIPSS-2 procedures conformed to the regulation in effect in 1999, but were not required to conform to the revised regulation. During our review, IRS developed and implemented a new procedure that provides for the consideration of price or cost as a selection factor for competitive task order awards. Additionally, the TIPSS-2 contract was changed to state that price or cost is a selection factor in the award of competitive task orders.

Aug 11, 2014

Jul 29, 2014

Jul 22, 2014

Jul 18, 2014

Jul 7, 2014

Jul 2, 2014

Jun 13, 2014

May 30, 2014

May 20, 2014

Apr 21, 2014

Looking for more? Browse all our products here