Internal Revenue Service 6009 Oxon Hill Road - M:P:I:CS Oxon Hill, MD 20745

70 -- 70 - ELECTRONIC FRUAD DETECTION SYSTEM POC Janet Windsor, Contracting Officer Kim Doherty, Contract Specialist (202)283-1461. The Internal Revenue Service (IRS) intends to contract with Loral Federal Systems of Gaithersburg, Maryland for: Continued development of a fraud-detection technique developed by Loral Federal Systems and testing of this technique on 1994 tax return data. Loral discovered this technique while conducting research under the federal Internal Research and Development (IRAD) Program, funded through Loral set-aside funds designated by law. Loral used 1992 tax return data (provided by the IRS under the IRAD agreement) in discovering this technique. Loral used proprietary tools, techniques and algorithms to discover this technique. Testing and development will require approximately one year of effort, projected to begin in September, 1995. This requirement calls for knowledge, skills and abilities to: (1) Thoroughly understand the problem of tax refund fraud and the search techniques used to uncover fraudulent refund claims during near-real-time processing; (2) Reproduce - for tax year 1994 data - the conceptual clusters and cluster-specific classifiers which Loral discovered for 1992 data; (3) Apply the 1994 version of Loral's technique to 1994 tax returns and demonstrate that it is effective on previously-unseen data; (4) Extend the technique to additional classes of tax returns; (5) Refine the technique where possible to reduce the false-positive and false-negative error rates, as measured on 1994 return data. In addition to the above, this requirement also calls for knowledge of the IRS tax processing system and the ability to create and test software within the framework of IRS' existing tax processing system. All responsible sources who can satisfy this requirement must submit written responses which must include: prices; a description of the scientific and research skills offered in sufficient detail to permit a technical evaluation; a POC (name and telephone number); GSA Contract Number if applicable; your business size; and payment terms. Responses must be received within 15 calendar days after the date of publication of this notice. All responses received will be fully considered by the IRS. No contract award will be made on the basis of any responses to the notice since the synopsis of intent to place and order is not considered a solicitation document. (0208)

Loren Data Corp. http://www.ld.com (SYN# 0438 19950728\70-0002.SOL)