A New Focus for the Pilot IRS Program

Launched in 2019, the Pilot IRS program allows IRS to develop emerging technology projects, such as AI, RPA, and ML, through incremental funding. If the projects do not yield results, IRS can stop the funding. The IRS developed the program to help speed modernization and innovate how it procures technologies. Pilot IRS offers a cost-effective, streamlined approach to testing and deploying solutions that will have an immediate impact on the IRS mission.

The first acquisition to use the incremental Pilot IRS program was an effort to improve data quality and lessen the need for manual data entry for the Federal Procurement Data System-Next Generation (FPDS-NG). The IRS sought to use RPA tools to automate the data entry process. In the fall of 2019, the IRS made five awards for the first phase of the project. Two firms are continuing to receive funding due to their solutions which have reduced the time required to make corrections and improve FPDS-NG data by 30-80%.

The IRS is also using the Pilot program to procure services for synthetic data production, modernization of its grants management system, cryptocurrency tracing, and code-free test automation analysis.

Last week, the IRS released an informational posting on Beta.sam.gov announcing a shift in the focus of the Pilot IRS program and its FY 2021 procurement needs through the initiative. According to the post, the IRS Enterprise Digitalization and Case Management Office plans to issue solicitations in 2021 for three technology verticals that support digitalization.  The technology verticals are as follows:

• Extracting machine-readable data from low-resolution and poor-quality images
• Digital intake and high-speed scanning, including as-a-service approaches
• Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) solutions

The IRS expects each solicitation to include one or more use cases. The informational posting presents two possible use cases for each of the three vertical areas, however cautions that the use cases are only examples and may not be the specific use cases when solicitations are finalized.  The posting is designed to provide information to industry and it is not a request for information or responses.   

The IRS is anticipating an expedient timeline for proposals, evaluations, and awards. For the last five Pilot IRS efforts, the approximate duration of solicitation release to contract awards was roughly 45 calendar days, according to the post. Additionally, companies responding to the future solicitations should focus their proposals on “capabilities and outcomes, and not specific tools or approaches.”

The upcoming Pilot IRS procurements will help support IRS fundamental goals of:

• Reducing reliance on paper
• Increasing access to machine- readable data
• Managing digital data to shift from low-value to high-value work and improve the taxpayer experience

Contractors with capabilities and solutions for the three technology verticals should continue to watch Beta.sam.gov and the GovWin IQ database for announcements regarding future solicitation announcements as these planned procurements progress.