IRS Procurement

Software Documentation Requirement Did Not Restrict Competition Gao ID: IMTEC-92-30 March 2, 1992

The Internal Revenue Service's (IRS) software documentation requirements for the Check Handling Enhancements and Expert System--an automated system for processing tax remittances--were justified and did not improperly restrict competition. IRS has a sound basis for requiring that all software it expects to maintain, including both pre-existing and off-the-shelf software, be documented in accordance with its initial standard. GAO agrees with the agency that it is much easier for IRS programmers to maintain software that is documented according to a single agencywide standard. However, GAO found that IRS has not been explicit in stating this requirement in other requests for proposals. Problems with future procurements could arise if this requirement remains unclear.

GAO found that: (1) 1 month before the CHEXS bids were due, IRS amended the solicitation, in response to a vendor's question, to require that all application software for which IRS might assume maintenance responsibility be documented in accordance with Internal Revenue Manual (IRM) 2500; (2) IRS stated that all software and documentation developed specifically for IRS must be in conformance with IRM 2500; (3) IRM 2500 was in accordance with generally accepted system development methodologies; (4) the requirement to document all software developed specifically for CHEXS in accordance with IRM 2500 was justified and did not improperly restrict competition; (5) in the past, IRS has had problems in maintaining contractor-supplied software that was not documented in accordance with IRM 2500 and it is easier for IRS programmers to maintain software when the documentation meets prescribed, agencywide standards; (6) system documentation is necessary to help maintain and enhance CHEXS as IRS users' needs change; (7) none of the IRS solicitations, including those issued after the CHEXS solicitation, explicitly state the requirement that software be documented in conformance with IRM 2500; and (8) the lack of clarity regarding compliance with IRM 2500 could be a source of problems or protests in future procurements.

Recommendations

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