Department of the Treasury, Internal Revenue Service, 6009 Oxon Hill Road, Suite 700, ATTN: M:P, Oxon Hill, MD 20745

R -- PHASE FOUR DEVELOPMENT OF IRS STRATEGIC COMPLIANCE PLANNING MODEL SOL TIRNO-99-R-00041 POC Paul Attorri, Contracting Officer, 202/283-1103 The IRS is beginning the fourth phase of development in the Strategic Compliance Planning Model (SCPM). In phases 1 and 2, the IRS developed and enhanced a workload driven resource allocation engine (meaning workload prioritization drives the resource allocation process). In phase 3, we developed a workforce engine, where IRS workforce decisions to hire, promote, or to transition resources from one position to another drive the selection of workload. The workload engine and the workforce engine run independently, but work in conjunction with each other through an engine manager. A prototype engine manager with limited functionality (ability to call each engine) was also developed as part of phase 3. In the fourth phase, the goal of the IRS is to "optimize" the allocation of resources. In this phase, we seek to implement and automate the linkages between the two engines through the engine manager. We seek to introduce our "optimality" criteria so that SCPM knows when to stop searching for a better allocation of resources. In particular, we will improve the productivity calculations estimated in the workload engine, which are used as the parameters for the simplex algorithm in the workforce engine. The productivity calculations shall reflect the multiyear nature of revenue and costs. In addition, the requirement of using a greedy algorithm in the workload engine shall be relaxed. Once these two features have been introduced, we seek contractor support in automating the iterative calling of each engine until our "optimization" criteria have been met. We also require the ability to save and compare solutions after different runs. SCPM has been developed as an object orientated C++ model. In addition, it requires the ILOG optimization suite. The IRS intends to solicit and negotiate woth only one source, IntelEngine, Inc., under authority of FAR 6.302-1. IntelEngine is the only known source who can satisfy agency requirements in this case. Additionally, even if another vendor had the capability to satisfy the agency's requirements, IntelEngine is the original source for this planned follow-on contract for the development of the highly specialized IRS Strategic Compliance Planning Model. Award to any other source would likely include substantial duplication of cost to the Government that is not expected to be recovered through competition, as another vendor would require substantial startup costs as the new vendor became familiar with the current model, while requiring the Govt. to pay the new vendor to learn what has already been accomplished for this complex model. Numbered Note 22 applies. Posted 05/17/99 (W-SN332173). (0137)

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