Computer Sciences Corporation (NYSE: CSC) announced today that it has received an 18-month task order modification from the Internal Revenue Service (IRS) to perform work on the next phase of the Customer Account Data Engine (CADE) project. The modification, awarded under the IRS's Business Systems Modernization contract signed with CSC in 1998, is valued at approximately $36 million.
Under this phase, CSC will deliver two CADE software releases in preparation for the 2007 tax filing season with capabilities to include new categories of taxpayers. CSC's work also will include systems modifications resulting from changes to the tax law enacted during 2006.
"CADE's operational success to date mirrors the IRS's long term vision for a modernized tax administration system," said Jim Sheaffer, president of CSC's Federal Sector business unit. "The award of this task modification illustrates the IRS's confidence in our experience and it reaffirms our commitment to deliver the results promised to America's taxpayers."
CADE, considered the cornerstone of the Business Systems Modernization program, will eventually replace the agency's 40-year-old Individual Master File system and become the single database for all account and tax return data.
The project is being developed in phases and will be implemented over several years, with releases scheduled for delivery in six-month periods. Each successive release will enable CADE to process more complex taxpayer account information.
In 2005, the system's first full year of production, more than 1.4 million Form 1040EZ taxpayer returns were posted to the modernized database and CADE issued tax refunds 40 percent faster than the legacy system. Currently, CSC is completing work on the CADE release that will support the 2006 filing season.
About CSC
Founded in 1959, Computer Sciences Corporation is a leading global information technology (IT) services company. CSC's mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.
With approximately 78,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.5 billion for the 12 months ended Sept. 30, 2005. For more information, visit the company's Web site at http://www.csc.com.