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IRS Faulted on Non-Competitive Procurements

The Internal Revenue Service illegally limited competition for some task orders on its TIPPS-2 multiple award contract, the Government Accountability Office found.

IRS invited all 18 TIPPS-2 contractors to compete for four task areas of organizational modernization services. One contractor was selected for each task area, and IRS said it would award all orders to the winner without further competitive bidding.

In its opinion, GAO said such a down-selection violates the 1994 Federal Acquisition Streamlining Act. IRS “disregarded” the law’s competition requirement in awarding 37 task orders, GAO said. The auditors urged IRS to terminate those orders if feasible and re-issue them on a competitive basis.

The opinion was requested by Senate Finance Committee Chairman Charles Grassley (R-IA) and the committee’s ranking minority member, Max Baucus (D-MT).


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