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The IRS yesterday shut out its prime systems modernization contractor from new projects worth approximately $40 million. The contractor, Computer Science Corporation, recently disclosed that it will miss an April deadline for a critical part of the $15 billion project.
The project has been plagued with overruns and delays from the start.
The General Accounting Office says the program has generated $290 million in cost overruns and more than 83 months of delays on 11 key modernization programs.
The contractor accepted responsibility in testimony before the Ways and Means Committee yesterday. The IRS also has some responsibility; at one point, according to the contractor, the IRS had 1100 change orders in on ongoing projects. The sheer difficulty of upgrading a 1960's tape-based system to a 21st century database has also delayed the project.

You heard me! If those vacuum tubes aren't here in five minutes, we'll get shut out of $40 million in new work!
The AP covers the story here.
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