Department of the Treasury, Internal Revenue Service, 6009 Oxon Hill Road, Suite 700, ATTN: M:P, Oxon Hill, MD 20745

D -- SERVICE CENTER RECOGNITION/IMAGE PROCESSING SYSTEM (SCRIPS) II SOL TIRNO-98-R-00046 POC Contracting Officer, Louise B. Kearns, (202) 283-1201 The IRS intends to award a follow-on contract on a sole source basis to Northrop Grumman Data Systems (NGDS) for one year with an eleven month option. Under the current contract, which closes January 31, 2001, NGDS developed SCRIPS in accordance with IRS specifications. SCRIPS is a mission critical stand alone system that automates paper tax processing through the use of high-speed scanning and digital imaging technology. Originally the IRS was planning for a follow-on contract using full and open competition for an estimated eight-year contract term. A sources sought CBD announcement was published on March 3, 1998, requesting submission of capability statements and key references from interested parties. However, the IRS has decided it is premature to proceed with a new SCRIPS acquisition at this time, given the uncertain future of the SCRIPS applications. In the interim, our contractual relationship with the current contractor will be extended for one year with an eleven month option, which will enable the IRS to determine the future of SCRIPS applications. For example, the PRIME Systems Integration Services contract, in supporting the IRS modernization effort, may include plans for the future of paper processing of tax documents, which could impact imaging. Should the IRS determine the need for SCRIPS beyond December 2002, information will be published in the Commerce Business Daily. In the event that a new, long term, SCRIPS acquisition is conducted, the IRS plans to provide SCRIPS system documentation to assist interested vendors. Refer to the sources sought CBD announcement on March 3, 1998 for a detailed description of the SCRIPS production systems. See Note 22. Posted 02/03/99 (W-SN294337). (0034)

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