March 10 - Informational Posting 2022.pdf

March 10, 2022

The purpose of this special notice is to provide an update on the digitalization activities of the Enterprise Digitalization and Case Management Office (ED&CMO), which spearheads IRS efforts to empower taxpayers and IRS employees to rapidly resolve issues in a simplified digital environment. Specifically, it will: 1) provide a brief update on the three existing Technology Verticals, primarily to provide historical context for ED&CMO’s actions in this space; 2) outline initial tentative topic areas for Fiscal Year 2022 (FY22) Technology Verticals; and, 3) provide context around considerations for any other new FY22 procurement needs.

In FY21, ED&CMO issued three Technology Verticals using the Pilot IRS framework (on average, those procurement actions took less than 30 calendar days from solicitation to contract award). The three FY21 Technology Verticals focused on: 1) extracting machine readable data from low resolution and poor quality images and hard copy documents (summarized as Optical Character Recognition (OCR)); 2) digitalizing paper documents and transmitting the digital files back to the IRS via a digital channel (summarized as Scanning as a Service (SCaaS); and, 3) generate information which improves the taxpayer experience when a mobile device is directed at IRS images, forms, etc., based on publicly available information (summarized as Augmented Reality (AR)). As intended, all three Technology Verticals resulted in multiple awards with an initial period of 30 days to 6 months, followed by a targeted selection of a smaller number of industry partners for contract option exercise and continued funding. Each of the Technology Verticals has contributed significantly to the understanding and awareness of ED&CMO, and although industry partners in all three areas continue to be funded, additional investment in these areas will continue to be dependent on Return on Investment, the ability of the solutions to serve the needs of the IRS, and overarching prioritization decisions.

In FY22, ED&CMO intends on issuing two to three additional Technology Verticals, again relying on the Pilot IRS framework. Currently, those Technology Verticals will focus on three topic areas: 1) the application of Artificial Intelligence, Machine Learning, or Robotic Process Automation (AI/ML/RPA) in human resources processes (i.e., using automation to accelerate manual processes); 2) process and technology solutions to improve high-manual touch processes that have limited visibility before they are completed; and, 3) cryptocurrency and digital assets. ED&CMO anticipates finalizing the topic areas by April 30th.

ED&CMO may have other procurement needs in FY22, but it does have existing vehicles (which were completed in FY20) that it will leverage for the majority, if not all, of these needs. As the topic areas for the Technology Verticals are finalized, ED&CMO will issue additional special notices, Requests for Information, and will provide ample opportunity to engage with our industry partners.