Layoffs ahead for TSM workers

The Internal Revenue Service last week confirmed that it would lay off 2,000 or more employees who are working on Tax Systems Modernization to comply with budget legislation pending in Congress.

The decision, which was not publicly announced, has been expected because both House and Senate versions of the Treasury, Postal Service and General Government appropriations bill cut funding for all but 150 employees who work on TSM. The House passed the measure in June, and the Senate plans to vote on it next month.

Lawmakers want the IRS to turn the systems development work for the multibillion-dollar program over to its contractors, and the agency has agreed to pursue this strategy. Wushow "Bill" Chou, Treasury's deputy assistant secretary for information systems, said the number of employees laid off from the IRS information systems department would depend on the agency's final technology budget.

Michigan's Kost joins Federal Sources

John Kost, former chief information officer for the state of Michigan, has joined Federal Sources Inc. as senior vice president for the State & Local Services Group. Kost will focus on advising state governments on procurement issues, including procurement and business process reform.

CDSI snares Ex-Im Bank pact

Computer Data Systems Inc., Rockville, Md., last week said it won a contract to provide a new financial management system and related services to the Export-Import Bank of the United States. The value of the contract was not available late last week. CACI International Inc. and Gelco Government Network are among the contractors on the Ex-Im Bank project.


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