IBM on Winning Team for IRS Prime Contract to Modernize U.S. Tax System Computers

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Bethesda MD - 09 Dec 1998: -- IBM Corporation, a major subcontractor on the team that won the contract to modernize the IRS computer systems, willprovide information technology infrastructure-related services, the company announced today.

The IRS awarded its Prime Systems Integration and Services Contract, commonly known as IRS Prime, to Computer Sciences Corporation. The CSC Prime Alliance, which includes IBM, was formed to pursue the 15-year performance-based, task-order contract.

IBM's role in the alliance is centered on modernizing the IRS' infrastructure associated with the new applications that will be deployed by the CSC PRIME Alliance. IBM will provide infrastructure-related services. IBM also will participate in business case development and business process re-engineering to assist the IRS in implementing the Information Technology Management Reform Act - ITMRA.

"Information technology is helping federal, state and local governments transform the way they do business and serve their constituents," said Jack Winters, IBM Global Services Vice President for government. "IBM looks forward to working with the IRS and our alliance teammates to implement a modernized IRS tax system that will improve service for the taxpayer."

IBM Global Services will lead the contract performance efforts on the IRS Prime contract. IBM Global Services is the largest commercial services company in the world bringing many of its commercial best practices to the IRS as it strives to become more customer service oriented.

"This combination of companies will work in an integrated manner to bring the best, highly skilled people together as one business team, singularly focused on exceeding the expectations of the IRS," Winters said.

IBM IRS Prime--2

IBM provides policy level consulting, business process and information technology strategy and planning consulting, application solution development and infrastructure support to a wide variety of government clients. IBM is currently involved in a project to consolidate the IBM Mainframe computer systems located in the ten IRS Service Centers into two IRS Corporate Computer Centers in Martinsburg, West Virginia and Memphis, Tennessee.

IBM is currently engaged in revenue and finance projects with the governments of Japan, Canada, Germany, Australia, Switzerland, Argentina, and the Czech Republic. IBM also is working with tax agencies in Maryland, Georgia, Wisconsin, Louisiana, Mississippi, Vermont, and Maine.

IBM, the largest technology and computer services company in the world is one of the PRIME Alliance members along with CSC, Northrop Grumman Corp., Unisys, Lucent Technologies, SAIC, and KPMG Peat Marwick This contract award culminates nearly an 18-month effort which started when the IRS issued its modernization blueprint in May of 1997.

With 1997 revenues of approximately $26 billion, IBM Global Services is the world's largest information technology services provider. IBM's fastest growing business segment has an unsurpassed breadth of capabilities, and more than 118,000 professionals helping companies of all sizes solve real business problems and create new business opportunities. For more information on IBM Global Services, visit">

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