IRS awards $23M software contract to General Dynamics unit

General Dynamics IT will provide systems support for the IRS’ Software Development Life Cycle, which includes the agency’s tax administration applications.

The Internal Revenue Service has awarded a contract to General Dynamics Information Technology for systems support of IRS’ Software Development Life Cycle (SDLC), which includes the agency’s tax administration applications.

The potential value of the five-year contract is $23 million if all options are exercised, according to a statement the company released today.

General Dynamics will develop the software that 26,000 revenue agents will use to process returns. The program is considered the “brain” of the campus batch processing mechanism. It will allow the IRS to process millions of returns and billions of dollars in tax revenue without a large amount of human intervention.

Marcus Collier, senior vice president of civilian solutions at General Dynamics IT, said the company will assist the IRS in all phases of the SDLC software development, from individual programming activities to overall project management.

General Dynamics IT will work with software developer Sentel in supporting the SDLC in Dallas. Sentel also provides software support and maintenance for the IRS’ Report Generation Software system.